November 29, 2016

Consolidated Financial Review
for the Third Quarter Ended October 31, 2016
［Japanese standards］（Consolidated)
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 General Manager
Tel: +81-3-3543-7710
E-mail: irmanager@ryoyo.co.jp
Due date of submitting of quarterly financial statement: December 9, 2016
Due date of starting delivery of dividends: Supplementary materials for the quarterly financial results: None
Investor conference for the quarterly financial results: None
Note: Figures are rounded down to the nearest million yen.
１．Financial highlights for the third quarter ended October 31, 2016（2/1/2016-10/31/2016）（１）Consolidated 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 ％Nine months ended 10/31/16

72,965（13.8）

1,102

180.2

1,136

63.8

Nine months ended 10/31/15

84,672

4.6

393(71.7)

693(58.6)

Note: Comprehensive income
Nine months ended 10/31/16:

175 million yen (274.6%)

Nine months ended 10/31/15:

46 million yen (-97.3%)

Profit attributable toowners of parent

Net income per share

Fully diluted
net income per share

Millions of yen％

YenYenNine months ended 10/31/16

683

31.3

27.87

27.74

Nine months ended 10/31/15

520(53.8)

20.98

20.87

（２）Consolidated financial position
Net assets pershare

Total assets

Net assetsEquity ratio

Millions of yen

Millions of yen％

Yen

As of 10/31/16

75,72063,03783.2

2,569.70

As of76,86563,921

83.1

2,591.70

1/31/16(Reference) Equity
Year ended

10/31/16:

62,977 million yen

Year ended

1/31/16:

63,849 million yen

1２．Dividends
Threemonths
ended

Six
monthsended

Ninemonths
ended

Yen

Yen

Yen

(Base date)Year ended

Total

Yen

Yen

Year ended 1/31/1 6－

15.00

－

15.00

30.00

Year ending 1/31/1 7－

20.00

－－－

Year ending 1/31/17 (Estimate)

－－－

20.00

40.00

Note: Revision to dividend forecast for this period: None
３．Financial forecast for the year ending January 31,2017（2/1/2016-1/31/2017）
Note: Percentages indicated changes from the same period of previous year.
Net sales
Millions of yen

Year ending
1/31/17％

97,000（13.6）

OperatingincomeOrdinary income

Profitattributable toowners of parent

Millions of yen ％Millions of yen ％Millions of yen

1,350

53.9

1,350

Note: Revisions to financial forecast for this period: Yes

223.2

850％

14.3

Net income pershareYen

34.65

４．Others（1）Important changes in subsidiaries(Change on specific subsidiaries with changes in scope of consolidation): None
Newly added: －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: Yes② Other changes: None
③ Changes in accounting estimate: None
④ Restatement of revisions: None
（4）Number of shares outstanding (common stock)① Number of shares of common stock issued as of:(Including treasury stock)
October 31,2016: 27,600,000 shares
January 31,2016: 28,200,000 shares② Number of shares of treasury stock as of:October 31,2016: 3,092,360 shares
January 31,2016: 3,563,991 shares③ Average number of shares outstanding as of:October 31,2016: 24,532,396 shares
October 31,2015: 24,817,618 shares
Indication regarding the implementation status of the quarterly review procedure
The review procedure of the quarterly financial statement based on the Financial Instruments andExchange Act is not completed at the time of disclosure of this financial result.
Caution on forecast for the year ending January 31,2017
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 ofAs ofJanuary 31, 2016

October 31, 2016

AmountAmount（ Assets）
Current Assets
Cash and deposits

13,53518,090Notes and accounts
receivable-trade33,52328,441

Securities

1,5381,000

Merchandise and finished goods

11,184

11,360

354

377

2,110

1,434

(5)

(5)

62,241

60,698Property, plant and equipment

180

157

Intangible assets

669

680

Investment securities

11,67012,351

Net defined benefit asset

1,075

1,148

Other

1,064

718

(36)

(34)

13,774

14,184

Total noncurrent assets

14,62415,022

Total assets

76,86575,720

Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets

Investments and other assets

Allowance for doubtful accounts
Total investments and other assets

4Consolidated Balance Sheets（Millions of yen）
As ofAs ofJanuary 31, 2016

October 31, 2016

AmountAmount（ Liabilities）
Current liabilities

9,565

9,594

142

140

612

130

241

Other

1,150

846

Total current liabilities

10,994

10,836

Net defined benefit liability

802

814

Deferred tax liabilities

542

793

Other603

238

1,948

1,846

12,943

12,683

Capital stock

13,672

13,672

Capital surplus

13,336

13,336

Retained earnings

38,997

38,105

Treasury stock(4,178)(3,649)Total shareholders’ equity

61,827

61,464

1,085

1,712

9(0)

Foreign currency translation adjustment743(385)

Remeasurements of defined benefit plans

183

186

2,021

1,513

Subscription rights to shares

72

59

Total net assets

63,921

63,037

Total liabilities and net assets

76,86575,720Notes and accounts payable-trade
Income taxes payable
Accrued consumption taxes
Provision for bonuses

Noncurrent liabilities

Total noncurrent liabilities
Total liabilities（Net assets）
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on
available-for-sale securities
Deferred gains or losses on hedgesTotal accumulated other comprehensive
income5

Consolidated Statements of Income（Millions of yen）

Net sales

Nine months ended
October 31, 2015

Nine months ended
October 31, 2016

AmountAmountCost of sales

84,672
79,04072,96566,891Gross profit

5,631

6,074

Salaries and bonuses

(3)
2,011

(0)
1,913

Provision for bonuses

246

244

Retirement benefit expenses

78102

Rent expenses

259

249

Depreciation

138

185

Other

2,507

2,276

Total selling, general and administrative expenses

5,238

4,971

393

1,102

Interest income

7644

Dividends income8584

Purchase discounts

97

Gain on valuation of investment securities

1418

Gain on investments in partnership
Other164
22－22

Total non-operating income

373

178

Loss on redemption of securities

3－50

Foreign exchange losses

5374

Commission fee

119

Loss on abandonment of noncurrent assets

20

Other

26

Total non-operating expenses

73

143

693

1,136

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

Operating income
Non-operating income

Non-operating expenses
Sales discounts

Ordinary income

2Extraordinary income
Gain on sales of investment securities

370

105

Other－

20

Total extraordinary income

370

126

Loss on sales of investment securities

101

100

Loss on valuation of investment securities－104

Impairment loss

141－

Total extraordinary losses

243

205

Income before income taxes and minority interests

820

1,057

Income taxes-current

516

365

Income taxes-deferred(216)8

Total income taxes

300

374

Profit520

683

Profit attributable to owners of parent

520

683

Extraordinary losses

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

Profit attributable to owners of parent（Millions of yen）
Nine months ended
October 31, 2015

Nine months ended
October 31, 2016

AmountAmount

520

683

(282)
(0)
(184)
(6)
(473)

627
(9)
(1,128)2(508)

46

175

46

175

－－

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 parentComprehensive income attributable tonon-controlling interests

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Consolidated Sales by Product(Millions of yen)
Nine months ended

Nine months ended

October 31, 2015

October 31, 2016

AmountComposition(%)

AmountIncrease(Decrease)

Composition(%)

Semiconductors/Devices

54,91364.9

44,10760.4(10,806)

ICT/Solutions

29,75835.1

28,858

39.6

(899)

Total

84,672100.0

72,965100.0(11,706)

8