August 31, 2017

Consolidated Financial Review
for the Second Quarter Ended July 31, 2017
［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 Officer
Tel: +81-3-3543-7710
E-mail: irmanager@ryoyo.co.jp
Due date of submitting of quarterly financial statement: September 8, 2017
Due date of starting delivery of dividends: October 2, 2017
Supplementary materials for the quarterly financial results: Yes
Investor conference for the quarterly financial results: Yes
Note: Figures are rounded down to the nearest million yen.
１．Financial highlights for the second quarter ended July 31, 2017（2/1/2017-7/31/2017）（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 ％Six months ended 7/31/17

46,049（6.6）

689 （12.5）

824

2.9

Six months ended 7/31/16

49,291（16.0）

787 （29.6）

801（44.2）

Note: Comprehensive income
Six months ended 7/31/17:

433

Six months ended 7/31/16:(147) million yen (－%)

million yen (－%)

Profit attributable toowners of parent

Net income per share

Fully diluted
net income per share

Millions of yen％

YenYenSix months ended 7/31/17

575

1.9

23.47

23.37

Six months ended 7/31/16

564（48.6）

23.00

22.88（２）Consolidated financial position
Net assets pershare

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen％

Yen

As of 7/31/17

77,31664,80283.7

2,641.81

As of 1/31/17

77,97364,85983.1

2,644.10(Reference) Equity
As of7/31/17:

64,742 million yen

As of

1/31/17:64,799 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 7－

20.00

－

20.00

40.00

Year ending 1/31/1 8－

30.00

－－－

Year ending 1/31/18 (Estimate)

－－－

30.00

60.00

Note: Revision to dividend forecast for this period: None
３．Financial forecast for the year ending January 31,2018（2/1/2017-1/31/2018）
Note: Percentages indicated changes from the same period of previous year.
Net sales
Millions of yen

Year ending
1/31/18

100,000％

1.6

OperatingincomeOrdinary income

Profitattributable toowners of parent

Millions of yen ％Millions of yen ％Millions of yen

1,550

12.9

1,650

Note: Revisions to financial forecast for this period: None

26.8

1,100

33.7％

Net income pershareYen

44.89

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: None
② 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)July

31,2017: 26,800,000 shares

January 31,2017: 27,600,000 shares② Number of shares of treasury stock as of:July

31,2017: 2,293,244 shares

January 31,2017: 3,092,672 shares③ Average number of shares outstanding as of:July

31,2017: 24,507,055 sharesJuly31,2016: 24,544,837 shares

Indication regarding the implementation status of the quarterly review procedure
This Financial Review is not subject to audit procedure under the Financial Instruments and Exchange
Act.
Caution on forecast for the year ending January 31,2018
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 of

As ofJanuary 31, 2017

July 31, 2017

AmountAmount（ Assets）
Current Assets
Cash and deposits

19,51722,726

Notes and accounts
receivable-trade29,291

24,471

Securities

1,000

1,000

Merchandise and finished goods

10,582

11,245

291

296

1,247

1,271

(5)

(2)61,925

61,009Property, plant and equipment

161

161

Intangible assets

630

537

Investment securities

13,36813,729Net defined benefit asset

1,216

1,272

Other

716

650

Allowance for doubtful accounts

(44)

(44)

15,256

15,608

Total noncurrent assets

16,04816,306

Total assets

77,97377,316

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

Investments and other assets

Total investments and other assets

4Consolidated Balance Sheets（Millions of yen）
As of

As ofJanuary 31, 2017

July 31, 2017

AmountAmount（ Liabilities）
Current liabilities

9,633

9,026

Income taxes payable

205

314

Accrued consumption taxes

25

39

Provision for bonuses

186

199

Other910

708

10,961

10,287

778

789

1,162

1,230

211

207

2,153

2,227

13,114

12,514

Capital stock

13,672

13,672

Capital surplus

13,336

13,336

Retained earnings

38,24437,384

Treasury stock(3,649)(2,706)

Total shareholders’ equity

61,602

61,686

2,446

2,546

Deferred gains or losses on hedges

(0)

(0)

Foreign currency translation adjustment

528

286

Remeasurements of defined benefit plans

222

222

3,197

3,055

Subscription rights to shares

5959

Total net assets

64,85964,802

Total liabilities and net assets

77,97377,316

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 comprehensiveincome5

Consolidated Statements of Income（Millions of yen）

Net salesSix months ended
July 31, 2016

Six months ended
July 31, 2017

AmountAmountCost of sales

49,29145,18046,04941,865Gross profit

4,110

4,184

Salaries and bonuses

(0)
1,320

(2)
1,328

Provision for bonuses

125

199

Retirement benefit expenses

6859

Rent expenses

165

171

Depreciation

122

118

Other

1,521

1,619

Total selling, general and administrative expenses

3,322

3,494

787

689

Interest income

27

29

Dividends income

82

61

Purchase discounts

53

Gain on investments in partnership
Other－1863
12

Total non-operating income

134

171

Sales discounts

2

Loss on redemption of securities

502－

Loss on valuation of investment securities

18－

Foreign exchange losses

4027

Commission fee

62

Loss on abandonment of noncurrent assets

00

Other

33120

36

801

824

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

Operating income
Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities

105

42

Other20－

Total extraordinary income

12642

Loss on sales of investment securities

10030Total extraordinary losses

10030

Income before income taxes and minority interests

826

836

Income taxes-current

240

243

Extraordinary losses

Income taxes-deferred

2118

Total income taxes

262

261

Profit564

575

Profit attributable to owners of parent

564

575

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）
Six months ended
July 31, 2016

Six months ended
July 31, 2017

AmountAmount564

575

256(9)(961)
3(711)

100(0)(241)
0(141)

(147)

433

(147)

433

－－

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

7

Consolidated Statements of Cash Flows（Millions of yen）
Six months ended

Six months ended

July 31, 2016

July 31, 2017

AmountAmount

I. Cash flows from operating activities

826
122
0
2(47)
(5)
(2)
(110)
50
18(4)
2,878
938
367
1(343)
4,693
123
(166)
4,650

836
119
0(63)
(9)
18
5(91)
－－
(11)
4,661
(707)
(490)
14(271)
4,011
95
(140)
3,965

(596)
－
1,493
(165)
0(2,521)
1,555
(7)
－
47－
3(190)(666)
242
1,000(25)－(2,190)
918
(26)
99
126
(18)
(0)
(542)

Cash dividends paid

(368)

(489)

Purchase of treasury stock

(200)

(0)

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

(569)
(436)
3,454(490)
(136)
2,795

Ⅵ. Cash and cash equivalents at beginning of period

13,535

19,343

Ⅶ. Cash and cash equivalents at end of period

16,99022,138

Income before income taxes and minority interests
Depreciation
Loss (gain) on sales and retirement of property, plant and equipment
Loss (gain) on investments in partnership
Foreign exchange losses (gains)
Increase (decrease) in provision
Increase (decrease) in net defined benefit liability
Interest and dividend income
Loss (gain) on redemption of securities
Loss (gain) on valuation of investment securities
Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividend income received
Income taxes （paid）refund
Net cash provided by (used in) operating activities
Ⅱ. Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from redemption of securities
Purchase of property, plant and equipment and intangible assets
Proceeds from sales of property, plant and equipment and intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments of loans receivable from subsidiaries and associates
Collection of loans receivable from subsidiaries and affiliates
Proceeds from distribution of investment in partnerships
Purchase of insurance funds
Other, net
Net cash provided by (used in) investing activities
Ⅲ. Cash flows from financing activities

Net cash provided by (used in) financing activities
Ⅳ. Effect of exchange rate changes on cash and cash equivalents

8Consolidated Sales by Product(Millions of yen)Six months ended

Six months ended

July 31, 2016

July 31, 2017

AmountComposition(%)

AmountIncrease(Decrease)

Composition(%)

Semiconductors/Devices

29,47059.8

24,44853.1(5,022)

ICT/Solutions

19,82040.2

21,601

46.9

1,781

Total

49,291

100.0

46,049100.0(3,241)9