March 10, 2014

Financial Review for the Year
Ended January 31, 2014
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
Yutaka Horikiri, Senior Managing Director, Administration Headquaters

Inquiries:

Tel: +81-3-3543-7710

E-mail: irmanager@ryoyo.co.jp

Due date of annual shareholders meeting: April 24, 2014

Due date of starting delivery of dividends: April 25, 2014

Due date of submitting of financial statement: April 24, 2014
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, 2014（2/1/2013-1/31/2014）（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 1/31/14

97,887

12.3

1,651

128.7

2,077

128.3

Year ended 1/31/13

87,1832.4

722(47.4)

909(42.7)

Note: Comprehensive income
Year ended 1/31/13: 3,204 million yen(267.2%)

Year ended 1/31/13:( 76.7%)872 million yen
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 1/31/14

1,342

216.8

52.17

51.96

2.2

2.7

1.7

Year ended 1/31/13

423(51.8)

16.41

16.37

0.7

1.3

0.8

(Reference) Investment profit/loss on equity method:Year ended 1/31/14:－ million yen

Year ended 1/31/13:－ million yen

1（２）Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen

As of 1/31/14

79,893

63,11278.9

2,498.70

As of 1/31/13

72,49061,30384.5

2,371.67

Equity ratio

Net assets per share％

Yen(Reference) Equity
Year ended 1/31/13:

63,032 million yen

Year ended 1/31/13:

61,252 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 1/31/14(3,084)

1,715(1,425)

11,023

Year ended 1/31/13

826

(498)

(777)

13,226

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 1/31/13

15.00

15.00

30.00

774

182.8

1.3

Year ending 1/31/14

15.00

15.00

30.00

765

57.5

1.2

Year ending 1/31/15 (Estimate)

15.00

15.00

30.00

―

50.5

―

３．Financial forecast for the year ending January 31,2015（2/1/2014-1/31/2015）
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％％

Net income pershare

Net income
Millions of yen％

Yen

Six months ending
7/31/1451,500

17.0

1,000

24.8

1,150

19.0

700

7.3

27.75

Year ending
1/31/15

105,000

7.3

2,200

33.2

2,500

20.3

1,500

11.7

59.46

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: Yes④ 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 31,2014: 28,800,000 shares
January 31,2013: 28,800,000 shares② Number of shares of treasury stock:
January 31,2014: 3,573,940 shares
January 31,2013: 2,973,074 shares③ Average number of shares outstanding as of:January 31,2014: 25,736,118 shares
January 31,2013: 25,827,335 shares

3

(Reference) Non-consolidated financial review
1.Financial highlights for the year ended January 31,2014 (2/1/2013-1/31/2014)（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 1/31/14

86,897

13.4

1,304

70.9

1,670

75.4

Year ended 1/31/13

76,6590.4

763(35.2)

952(30.9)Net income
Millions of yen

Fully diluted
net income per share

Net income per share
％

Yen

Yen

Year ended 1/31/14

993

110.5

38.60

38.44

Year ended 1/31/13

471(33.3)

18.27

18.23

（２）Financial position
Total assets

Net assets

Millions of yen

Millions of yen

Equity ratio

Net assets per
share

％

Yen

As of 1/31/14

75,12459,58079.2

2,358.72

As of 1/31/13

69,32959,25085.4

2,292.18(Reference) Equity
Year ended 1/31/14:

59,501 million yen

Year ended 1/31/13:

59,200 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 31,2015
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, 2013

January 31, 2014

AmountAmount（ Assets）
Current Assets
Cash and deposits

13,226

11,215

Notes and accounts
receivable-trade23,29530,185

Short-term investment securities

10,9998,500

Merchandise and finished goods

11,34813,313

Deferred tax assets

119

218

Other

583

934

Allowance for doubtful accounts

(20)

(17)

59,55164,350

119

95

5

5

Other, net

139

139

Total property, plant and equipment

265

240

602

536

Investment securities

10,884

12,558

Other

1,188

2,209

(2)

(1)

12,07014,766

Total noncurrent assets

12,93815,543

Total assets

72,49079,893

Total current assets
Noncurrent assets
Property, plant and equipment
Tools, furniture and fixtures, net
Land

Intangible assets
Investments and other assets

Allowance for doubtful accounts
Total investments and other assets

5Consolidated Balance Sheets（Millions of yen）
As of

As of

January 31, 2013

January 31, 2014

AmountAmount（ Liabilities）
Current liabilities

8,937

13,022

Income taxes payable

180

620

Accrued consumption taxes

21

36

Provision for bonuses

110

128

Other

904

727

10,153

14,534

Provision for retirement benefits

889

917

Deferred tax liabilities

46

477

Other

95

851

1,032

2,246

11,186

16,781

Capital stock

13,672

13,672

Capital surplus

13,336

13,336

Retained earnings

37,98738,555

Treasury stock(3,295)(3,945)

Total shareholders’ equity

61,70061,618

514

1,248

0

(0)

(962)

166

(447)

1,413

Subscription rights to shares

50

79

Total net assets

61,303

63,112

Total liabilities and net assets

72,49079,893

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
Deferred gains or losses on hedges
Foreign currency translation adjustment
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, 2013

January 31, 2014

AmountAmount87,18379,8107,373

97,88789,607
8,279

0
2,745
110
184
409
172
3,028
6,651
722

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

151
77
9
3
31
273

191
59
11
137
32
432

2
72
－
10
1
86
909

3
－
0
0
1
6
2,077

－
－

20
20

Income before income taxes and minority interests

909

2,097

Income taxes-current

475
10

830
(75)

486
423
423

755
1,342
1,342

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
Foreign exchange losses
Commission fee
Loss on abandonment of noncurrent assets
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income

Income taxes-deferred
Total income taxes
Income before minority interests
Net income

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, 2013

January 31, 2014

AmountAmount

423

1,342

206
1
240
448
872

733
(0)
1,128
1,861
3,204

872

3,204

－

－

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 ( From

February 1, 2012 to January 31, 2013 )（Millions of yen）

Shareholders’ equity

Capital stock

Balance at the end of
previous period
Changes of items during theperiodCapitalRetained

surplusearnings

13,672

13,336

Dividends from surplus
Net income
Purchaseof treasury
stock
Retirement of treasurystock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at the end of current
period39,446

Total
Treasury stock shareholders’equity(4,402)

62,052

（774）

（774）

423

423

（1,108）

(0)

(0)

1,108

－
－

－

－

(1,459)

1,107

(351)

13,672

13,33637,987（3,295）61,700

Accumulated other comprehensive income
Valuation
Foreigndifference on Deferred gains
currency
available-for or losses ontranslation
hedge
-sale
adjustment
securities
Balance at the end of
previous period
Changes of items during theperiod307(0)(1,203)

Subscription
rights to

Total net

sharesassets－（774）

Dividends from surplus

423

Net income
Purchase of treasury
stock
Retirement of treasurystock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at the end of current
period61,155

(0)
－
206

1

240

50

499

206

1

240

50

147

514

0

(962)

50

61,3039

Consolidated Statements of Changes in Net Assets
Current period ( From

February 1, 2013 to January 31, 2014 )（Millions of yen）

Shareholders’ equity

Capital stock

Balance at the end of
previous period
Changes of items during theperiod13,672

CapitalRetained

surplusearnings

13,33637,987

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

Dividends from surplus

（774）

（774）

Net income

1,342

1,342

Purchaseof treasury
stock
Disposalof treasurystock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at the end of current
period

(649)

(649)

0

0

(0)

－
－

－

567

(649)

(82)

13,672

13,33638,555（3,945）61,618

Accumulated other comprehensive income
Valuation
Foreigndifference on Deferred gains
currency
available-for or losses ontranslation
hedge
-sale
adjustment
securities
Balance at the end of
previous period
Changes of items during theperiod

514

0

(962)

Subscription
rights to

Total 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 of current
period

（649）
0
733

(0)

1,128

28

1,890

733

(0)

1,128

28

1,808

1,248

(0)

166

79

63,112

10

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

Year ended

January 31, 2013

January 31, 2014

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 provisionInterest and dividends income
Loss (gain) on valuation 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 dividends income received
Income taxes refund（paid）
Net cash provided by (used in) operating activities

909
176
7
(3)
(44)
20
(229)
－
(1,201)
99
1,062
(87)
609
1,318
220
(712)
826

2,097
192
0
(137)
(29)
41
(251)
(20)
(6,013)(1,592)
3,370
13
(603)
(2,931)243(397)(3,084)(7,000)7,000(2,000)
9,000
(469)

(2,692)
4,500(3,500)10,500(96)

3

0(7,104)
－
－
60
12
(498)

(7,189)
185
(10)
111
(92)
1,715

(774)
(0)
(2)
(777)
338
(110)
13,336
13,226

(772)
(649)
(2)
(1,425)591(2,202)
13,226
11,023

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
assetsPurchase of investment securities
Proceeds from sales of investment securities
Purchase of stocks of subsidiaries and affiliates
Proceeds from distribution of investment in partnerships
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
Ⅶ. Cash and cash equivalents at end of period

11Consolidated Sales by Product(Millions of yen)
Year ended

Year ended

January 31, 2013

January 31, 2014

AmountComposition(%)

AmountIncrease(Decrease)

Composition(%)(Semiconductors)
Integrated Circuits

30,32534.8

31,970

32.7

1,645

Discrete Electronic
Components

14,09716.2

16,700

17.0

2,602

Sub total

44,42251.0

48,671

49.7

4,248

Computer Systems andPeripherals

34,03439.0

38,623

39.5

4,589

Electronic Devices

8,726

10.0

10,592

10.8

1,865

Total

87,183100.0

97,887100.0

10,70312