March 11, 2015

Financial Review for the Year
Ended January 31, 2015
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, Senior Executive General Manager, Administration Headquaters
Tel: +81-3-3543-7710
E-mail: irmanager@ryoyo.co.jp
Due date of annual shareholders meeting: April 28, 2015
Due date of starting delivery of dividends: April 30, 2015
Due date of submitting of financial statement: April 28, 2015
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, 2015（2/1/2014-1/31/2015）（１）Consolidated operating results
Note: Percentages indicated changes from the same period of previous year.
Net sales

Operating income

Ordinary income

Millions of yen％

Millions of yen％Millions of yen％

Year ended 1/31/15

110,107

12.5

2,053

24.3

2,498

20.3

Year ended 1/31/14

97,887

12.3

1,651

128.7

2,077

128.3

Note: Comprehensive income
Year ended 1/31/15: 3,017 million yen(-5.8%)

Year ended 1/31/14: 3,204 million yen(267.2%)

Net income
per share

Net income
Millions of yen

Fully
diluted
net income
per share

％

Yen

Yen

Return on
equityOrdinary
income tototal
assetsOperatingincome tonet sales％％％Year ended 1/31/15

1,683

25.4

66.74

66.39

2.6

3.1

1.9

Year ended 1/31/14

1,342216.8

52.17

51.96

2.2

2.7

1.7

(Reference) Investment profit/loss on equity method:Year ended 1/31/15:－ million yen

Year ended 1/31/14:－ million yen

1（２）Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen％

Yen

As of 1/31/15

82,93765,58379.0

2,595.83

As of 1/31/14

79,893

63,11278.9

2,498.70

Equity ratio

Net assets per share(Reference) Equity
Year ended 1/31/15:

65,511 million yen

Year ended 1/31/14:

63,032 million yen（３）Consolidated cash flows
Cash flows fromoperating
activities

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 1/31/15(4,826)

5,293(757)

10,868Year ended 1/31/14(3,084)

1,715(1,425)

11,023

２．Dividends
Cash dividends per share
Sixmonths
ended

Year
ended

Yen

(Base date)

TotalYen

Yen

Total
dividends
Paid(Full Year)

Payoutratio

Millions of yen

Dividends onequity％％Year ended 1/31/1 4

15.00

15.00

30.00765

57.5

1.2

Year ending 1/31/1 5

15.00

15.00

30.00

756

44.9

1.2

Year ending 1/31/16 (Estimate)

15.00

15.00

30.00

―

39.8

―

３．Financial forecast for the year ending January 31,2016（2/1/2015-1/31/2016）
Note: Percentages indicated changes from the same period of previous year.
Net sales
Millions of yen％

Operatingincome

Ordinary income

Net income

Millions of yen ％Millions of yen ％Millions of yen

Net income pershare％

Yen

Six months ending
7/31/1558,500

8.4

1,100

28.0

1,300

20.0

850

13.7

33.68

Year ending
1/31/16

122,000

10.82,500

21.7

2,900

16.1

1,90012.8

75.29

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: Yes② 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 31,2015: 28,200,000 shares
January 31,2014: 28,800,000 shares② Number of shares of treasury stock:
January 31,2015: 2,962,905 shares
January 31,2014: 3,573,940 shares③ Average number of shares outstanding as of:January 31,2015: 25,228,440 shares
January 31,2014: 25,736,118 shares

3

(Reference) Non-consolidated financial review
1.Financial highlights for the year ended January 31,2015 (2/1/2014-1/31/2015)（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 1/31/15

99,240

14.2

1,861

42.7

2,276

36.2

Year ended 1/31/14

86,897

13.4

1,304

70.9

1,670

75.4

Net income
Millions of yen

Fully diluted
net income per share

Net income per share％

Yen

Yen

Year ended 1/31/15

1,487

49.8

58.98

58.66

Year ended 1/31/14

993

110.5

38.60

38.44

（２）Financial position
Total assets

Net assets

Millions of yen

Millions of yen

Equity ratio

Net assets pershare％

Yen

As of 1/31/15

77,08360,90678.9

2,410.49

As of 1/31/14

75,12459,58079.2

2,358.72(Reference) Equity
Year ended 1/31/15:

60,833 million yen

Year ended 1/31/14:

59,501 million yen

Indication regarding the implementation status of auditing procedure
The audit procedure of financial statements based on the Financial Instruments and Exchange Act
is not completed at the time of disclosure of this financial result.
Caution on estimates for the year ending January 31,2016
The above forecast was made based on the information available as of the date of this release. Actualresults 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 ofAs ofJanuary 31, 2014

January 31, 2015

AmountAmount（ Assets）
Current Assets
Cash and deposits

11,215

11,616

Notes and accounts
receivable-trade30,18534,446

Short-term investment securities

8,500

2,000

Merchandise and finished goods

13,313

14,482

Deferred tax assets

218

214

Other

934

2,438

Allowance for doubtful accounts

(17)

(20)

64,35065,177

Tools, furniture and fixtures, net

95

81

Land55

Other, net

139

109

Total property, plant and equipment

240

196

536

645

12,558

14,979

－798

2,209

1,141

(1)

(1)

14,766

16,917

Total noncurrent assets

15,54317,759Total assets

79,89382,937

Total current assets
Noncurrent assets
Property, plant and equipment

Intangible assets
Investments and other assets
Investment securities
Net defined benefit asset
OtherAllowance for doubtful accounts
Total investments and other assets

5Consolidated Balance Sheets（Millions of yen）
As ofAs ofJanuary 31, 2014

January 31, 2015

AmountAmount（ Liabilities）
Current liabilities

13,022

12,753

Income taxes payable

620

573

Accrued consumption taxes

36

3Provision for bonuses

128

119

Other

727

1,356

14,534

14,806

Provision for retirement benefits917－

Net defined benefit liability－

895

Deferred tax liabilities

477

948

Other

851

703

2,246

2,547

16,781

17,353

Capital stock

13,672

13,672

Capital surplus

13,336

13,336

Retained earnings

38,55538,813

Treasury stock(3,945)(3,270)Total shareholders’ equity

61,61862,551

1,248

1,843

Deferred gains or losses on hedges

(0)

(0)

Foreign currency translation adjustment166904

Remeasurements of defined benefit plans－211

1,413

2,959

Subscription rights to shares

7972

Total net assets

63,11265,583

Total liabilities and net assets

79,89382,937

Notes and accounts payable-trade

Total current liabilities
Noncurrent liabilities

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

Year ended

January 31, 2014

January 31, 2015

AmountAmount97,88789,607
8,279

110,107
101,306
8,801

(3)
2,791
128
137
356
180
3,036
6,627
1,651

3
2,842
119
137
349
153
3,142
6,747
2,053

191
59
11
137
32
432

145
137
12
205
22
523

3－
－
0
0
1
6
2,077

3
49
15
7
10
78
2,498

20－
－
20

212
178
292

－
－－
－

11
70
20
101

2,097
830
(75)

2,689
980
25

Income before minority interests

755
1,342

1,005
1,683

Net income

1,342

1,683

Net sales
Cost of sales
Gross profit
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 income
Non-operating income
Interest income
Dividends income
Purchase discounts
Gain on investments in partnership
Other
Total non-operating income
Non-operating expenses
Sales discounts
Loss on valuation investment securities
Foreign exchange losses
Commission fee
Loss on abandonment of noncurrent assetsOther
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on bad debts recovered
Surrender value of insurance
Total extraordinary income
Extraordinary losses
Loss on sales of investment securities
Special extra retirement payments
Settlement package
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes

7

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

Income before minority interests（Millions of yen）
Year ended

Year ended

January 31, 2014

January 31, 2015

AmountAmount1,342

1,683733(0)
1,128
1,861
3,204

595
0738
1,333
3,017

3,204

3,017

－－

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income(Details)
Comprehensive income attributable to ownersof the parent
Comprehensive income attributable tominority interests

8Consolidated Statements of Changes in Net Assets
Previous period ( FromFebruary 1, 2013 to January 31, 2014 )（Millions of yen）

Shareholders’ equity

Capital stock

Balance at the beginning ofcurrent period
Changes of items during theperiod

CapitalRetained

Treasury

surplusearnings

stock

13,672

13,33637,987

Total
shareholders’equity(3,295)61,700

Dividends from surplus

（774）

（774）

Net income

1,342

1,342

Purchase of treasury
stock
Disposal of treasurystock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at the end ofcurrent period

(649)

(649)

00（0）

－－－567

(649)

(82)

13,672

13,33638,555（3,945）61,618

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at the beginning ofcurrent period
Changes of items during theperiod

Deferred
gains orlosses on
hedge

514

0

Foreigncurrencytranslation
adjustment(962)

Subscription
rights toTotal net

sharesassets50

61,303

Dividends from surplus(774)

Net income

1,342

Purchase of treasury
stock
Disposal of treasurystock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at the end ofcurrent period

(649)
0733

(0)

1,128

28

1,890

733

(0)

1,128

28

1,808

1,248(0)166

79

63,1129

Consolidated Statements of Changes in Net Assets
Current period ( From

February 1, 2014 to January 31, 2015 )（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

13,33638,555

Total
shareholders’equity（3,945）

61,618Dividends from surplus

（756）

（756）

Net income

1,683

1,683

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

(1)

（1）

(662)

662

－

(6)

13

6－－－

258

13,672

13,33638,813674（3,270）932
62,551

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

1,248

Subscription

Deferred
gains orlosses on
hedge

Foreigncurrencytranslation
adjustment

Remesurementsof defined
benefit plans

(0)

166

－

rights to

Total net

sharesassets7963,112

Dividends from surplus（756）

Net income

1,683

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

（1）
－
6
595

0

738

211

(6)

1,538

595

0738

211

(6)

2,471

1,843

(0)

904

211

72

65,583

10

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

Year ended

January 31, 2014

January 31, 2015

AmountAmountI. Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Loss (gain) on sales and retirement of noncurrent assets
Loss (gain) on investments in partnership
Foreign exchange losses (gains)
Increase (decrease) in provision
Increase (decrease) in net defined benefit liability
Interest and dividends income
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Surrender value of insurance
Decrease (Increase) in notes and accounts receivable-tradeDecrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends income received
Income taxes refund（paid）
Net cash provided by (used in) operating activities

2,097
192
0(137)
(29)
41－
(251)
(20)
－－
(6,013)(1,592)3,370
13(603)(2,931)243(397)(3,084)

2,689
217
(0)
(205)
146
(923)
927
(283)
(201)
49(78)(3,645)
(908)
(998)
(33)
(837)
(4,084)310(1,052)(4,826)(2,692)
4,500(3,500)10,500(96)
0(7,189)
185
(10)
111－
(92)
1,715

(757)
315
(1,000)9,500(287)
4(5,766)
2,066
－
514
578
125
5,293(772)
(649)
(2)
(1,425)

(754)
(1)
(1)
(757)

591
(2,202)

135(154)

Ⅱ. Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of short-term investment securities
Proceeds from redemption of securities
Purchase of property, plant and equipment and intangible assets
Proceeds from sales of property, plant equipment and intangible
assetsPurchaseof investment securities
Proceeds from sales of investment securities
Purchase of stocks of subsidiaries and affiliates
Proceeds from distribution of investment in partnerships
Proceeds from cancellation of insurance funds
Other, net
Net cash provided by (used in) investing activities
Ⅲ. Cash flows from financing activities
Cash dividends paid
Purchase of treasury stock
Other, net
Net cash provided by (used in) financing activities
Ⅳ. Effect of exchange rate changes on cash and cash equivalents
Ⅴ. Net increase (decrease) in cash and cash equivalents
Ⅵ. Cash and cash equivalents at beginning of period)

13,226
11,023

Ⅶ. Cash and cash equivalents at end of period11)

11,023
10,868

Consolidated Sales by Product(Millions of yen)
Year ended

Year ended

January 31, 2014

January 31, 2015

Increase(Decrease)

AmountComposition(%)

AmountComposition(%)

Semiconductors/Devices

58,951

60.2

68,144

61.9

9,193

ICT/Solutions

38,93639.8

41,962

38.1

3,026

Total

97,887100.0

110,107100.0

12,22012