November 26, 2020

Consolidated Financial Review
for the Third Quarter Ended October 31, 2020
［Japanese standards］（Consolidated)
Company name:
Headquarters address:
URL:
Stock exchange listing:Code number:Company representative:
Inquiries:

RYOYO ELECTRO CORPORATION
12-22 Tsukiji 1-chome, Chuo-ku, Tokyo 104-8408 Japan
https://www.ryoyo.co.jp
Tokyo Stock Exchange 1st Section
8068
Moritaka Nakamura, President
Masayuki Takahashi, Executive General Manager,Administration Headquaters
Tel: +81-3-3543-7711
E-mail: irmanager@ryoyo.co.jp
Due date of submitting of quarterly financial statement: December 10, 2020
Due date of starting delivery of dividends: Supplementary materials for the quarterly financial results: NoneInvestor conference for the quarterly financial results: NoneNote: Figures are rounded down to the nearest million yen.
１．Financial highlights for the third quarter ended October 31, 2020（2/1/2020-10/31/2020）（１）Consolidated operating results
Note: Percentages indicated changes from the same period of previous year.
Net sales
Millions of yen％

Operating profit

Ordinary profit

Millions of yen

Millions of yen％

Nine months ended 10/31/2069,659 (14.3)
841 (48.9)
Nine months ended 10/31/19
81,300 17.6
1,647 43.2
Note: Comprehensive income
Nine months ended 10/31/20:(16) million yen (－%)
Nine months ended 10/31/19:
1,699
million yen (－%)

Profit attributable toowners of parent

Net income per share

Millions of yen ％Yen

431 (60.2)
1,083 25.9

Nine months ended 10/31/20
Nine months ended 10/31/19％

481 (71.0)
1,663 33.1

Fully diluted
net income per share
Yen

17.51
44.12

17.46
43.86

（２）Consolidated financial position

As of 10/31/20
As of 1/31/20

Total assets

Net assets

Millions of yen

Millions of yen％

Yen

77,07878,11759,70862,13577.4
79.4

2,417.43
2,524.47(Reference) Equity
As of 10/31/20:
As of1/31/20:

Equity ratio

59,664 million yen
62,033 million yen

1

Net assets per share２．Dividends
Threemonthsended(Base date)Year ended 1/31/20
Year ending 1/31/21

Sixmonthsended

Yen

Yen－－－

Year ending 1/31/21 (Estimate)Ninemonths
ended

Year
ended

Yen

40.00
60.00
－－－－

TotalYen

Yen

40.00
－
120.0080.00－180.00

Note: Revision to dividend forecast for this period: None
３．Financial forecast for the year ending January 31,2021（2/1/2020-1/31/2021）
Note: Percentages indicated changes from the same period of previous year.

Operatingprofit

Net sales
Millions of yen

Year ending
1/31/2195,000％(12.5)

Millions of yen

1,300％(39.7)

Ordinary profit

Profitattributable toowners of parent

Millions of yen

Millions of yen

950

Note: Revisions to financial forecast for this period: Yes2％(56.6)

810

Net income pershare％Yen(37.8)

35.36

４．Others（1）Important changes in subsidiaries(Change on specific subsidiaries with changes in scope of consolidation): Yes
Newly added: StyleZ Corp.
Excluded: －（2）Use of simplified accounting method and special accounting policy for the quarterly consolidated
financial reporting: None
（3）Changes in principles, procedures and method of presentation for the quarterly consolidated
financial statements① Changes in accounting policies: None
② Other changes: None
③ Changes in accounting estimate: None
④ Restatement of revisions: None
（4）Number of shares outstanding (common shares)① Number of shares of common shares issued as of:(Including treasury shares)
October 31,2020: 26,800,000 shares
January 31,2020: 26,800,000 shares② Number of shares of treasury shares:
October 31,2020: 2,118,968 shares
January 31,2020: 2,227,199 shares③ Average number of shares outstanding as of:October 31,2020: 24,643,518 shares
October 31,2019: 24,553,735 shares
Indication regarding the implementation status of the quarterly review procedure
This Financial Review is not subject to audit procedure under the Financial Instruments andExchange Act.
Caution on forecast for the year ending January 31,2021
Forecasts regarding future performance in these materials are based on information available tomanagement at the time this report was prepared. Actual results may differ significantly from thesestatements for a number of reasons.
※This financial review is only the translation of Japanese version.

3

Consolidated Balance Sheets(Millions of yen)
As ofJanuary 31, 2020

As ofOctober 31, 2020

AmountAmount（Assets）
Current Assets
Cash and deposits

12,417

24,382

Notes and accounts receivable - trade28,152

21,578－1,498

Securities

Due date of submitting of quarterly financial statement
and finishedgoods
DueMerchandise
date of starting
deliveryof dividends: December 8, 2017
12,598: -12,351－

183

1,288

1,578

(2)

(5)

54,45361,566229

215

Goodwill－615

Other

311

251

Total Intangible assets

311

867

Investment securities

20,334

11,628Retirement benefit asset

1,627

1,673

Other

1,481

1,447

Allowance for doubtful accounts

(320)

(321)

23,122

14,427

23,664

15,511

78,117

77,078Work in process

Supplementary materials for the quarterly financial results: NoneOther: NoneAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets

Investments and other assets

Total investments and other assets
Total non-current assets
Total assets

4Consolidated Balance Sheets(Millions of yen)
As ofJanuary 31, 2020

As ofOctober 31, 2020

AmountAmount（Liabilities）
Current liabilities

12,006

10,411

Short-term borrowings－3,134

Income taxes payable

730

65

Accrued consumption taxes

226

158

Provision for bonuses

467

444

Other1,123

1,891

Total current liabilities

14,554

16,105Long-term borrowings－88

Deferred tax liabilities

827

615

Retirement benefit liability

182

220

Other418

338

1,427

1,263

15,982

17,369

Capital stock

13,672

13,672

Capital surplus

13,336

13,336

Retained earnings

35,33733,289Treasury shares(2,630)(2,502)

Total shareholders' equity

59,71557,795

2,141

1,890

Deferred gains or losses on hedges

(0)

(0)

Foreign currency translation adjustment

79(94)

Remeasurements of defined benefit plans

97

73

2,317

1,869

102

43

Total net assets

62,13559,708

Total liabilities and net assets

78,117

77,078Notes and accounts payable - tradeNon-current liabilities

Total non-current liabilities
Total liabilities（Net assets）
Shareholders' equity

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

Total accumulated other comprehensive income
Share acquisition rights

5Consolidated Statements of Income(Millions of yen)

Net sales
Cost of sales
Gross profit

Nine months ended
October 31, 2019

Nine months ended
October 31, 2020

AmountAmount

81,30073,6997,600

69,65962,874
6,784

(0)
2,228
393
43272
172
2,844
5,953
1,647

(0)
2,234
380
64
301
169
2,792
5,942
841

51
108
5
9
10
185

23
93
1
58
71
248

－
4
147
13
1－
2
169
1,663

29
35
42
110
478
10
608
481

190
－
9199

201
47－
248

－
－
231
231
1,632
561
(12)
548
1,083
1,083

172
119
－
291
439
58(50)
7431
431

Selling, general and administrative expenses
Provision of allowance for doubtful accounts
Salaries and bonuses
Provision for bonuses
Retirement benefit expenses
Rent expenses
Depreciation
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Purchase discounts
Gain on investments in investment partnerships
Other
Total non-operating income
Non-operating expenses
Interest expenses
Sales discounts
Foreign exchange losses
Commission expenses
Loss on abandonment of non-current assets
Commission for purchase of treasury shares
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Gain on contribution of securities to retirement benefit trust
Gain on liquidation of subsidiaries and associates
Total extraordinary income
Extraordinary losses
Loss on sales of investment securities
Settlement package
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

6

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

Nine months ended
October 31, 2019

Nine months ended
October 31, 2020

AmountAmount

1,083

431

939

(250)

0(0)

Foreign currency translation adjustment

(280)

(173)

Remeasurements of defined benefit plans, net of tax

(42)

(24)

Total other comprehensive income

616(448)

1,699

(16)

1,699

(16)

－－Profit attributable to owners of parent
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

Comprehensive income(Details)
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

7

Consolidated Sales by Product(Millions of yen)

Nine months ended
October 31, 2019

Nine months ended
October 31, 2020

AmountComposition(%)

AmountComposition(%)

Semiconductors/Devices

41,37450.9

35,032

50.3(6,342)

ICT/Solutions

39,92549.1

34,626

49.7(5,299)Total

81,300100.0

69,659100.0(11,641)

8

Increase(Decrease)