August 28, 2014

Consolidated Financial Review
for the Second Quarter Ended July 31, 2014
［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:
Yutaka Horikiri, Senior Managing Director, Administration Headquaters
Tel: +81-3-3543-7710
E-mail: irmanager@ryoyo.co.jp
Due date of submitting of quarterly financial statement: September 11, 2014
Due date of starting delivery of dividends: October 1, 2014
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, 2014（2/1/2014-7/31/2014）（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 ％Six months ended 7/31/1453,987

22.7

859

7.3

1,083

12.1

Six months ended 7/31/13

44,000( 1.5)

801

74.6

966

96.4

Note: Comprehensive income
Six months ended 7/31/14:

856 million yen (-48.7%)

Six months ended 7/31/13:

1,669 million yen (582.9%)

Net income

Net income per share

Fully diluted
net income per share

Millions of yen％

YenYenSix months ended 7/31/14

747

14.6

29.63

29.47

Six months ended 7/31/13

652

172.7

25.26

25.18

（２）Consolidated financial position
Net assets pershare

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen％

Yen

As of 7/31/14

78,912

63,58980.5

2,517.67

As of 1/31/14

79,893

63,11278.9

2,498.70(Reference) Equity
Year ended

7/31/14:63,509 million yen

Year ended

1/31/14:63,032 million yen

1２．Dividends
Threemonths
ended

Six
monthsended

Ninemonths
ended

Yen

Yen

Yen

(Base date)Year ended

TotalYen

Yen

Year ended 1/31/14

－

15.00

－

15.00

30.00

Year ending 1/31/15

－

15.00

－－－

Year ending 1/31/15 (Estimate)

－－－

15.00

30.00

Note: Revision to dividend forecast for this period: None
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

Year ending
1/31/15

105,000％

7.3

OperatingincomeOrdinary income

Net income

Millions of yen ％Millions of yen ％Millions of yen

2,200

33.2

2,500

Note: Revisions to financial forecast for this period: None

220.3

1,500

Net income pershare％

11.7

Yen

59.46

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)
July31,2014: 28,200,000 sharesJanuary 31,2014: 28,800,000 shares② Number of shares of treasury stock as of:July

31,2014: 2,974,382 shares

January 31,2014: 3,573,940 shares③ Average number of shares outstanding as of:July

31,2014: 25,225,904 sharesJuly31,2013: 25,826,804 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 31,2015
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, 2014

July 31, 2014

AmountAmount（ Assets）
Current Assets
Cash and deposits

11,215

16,120Notes and accounts
receivable-trade30,18529,396

Short-term investment securities

8,500

3,000

Merchandise and finished goods

13,313

13,454

Deferred tax assets

218

183

Other

934

895

Allowance for doubtful accounts

(17)

(17)

64,35063,034

Property, plant and equipment

240

226

Intangible assets

536

504

Investment securities

12,55813,498

Other

2,209

1,650

(1)

(1)

14,76615,147

Total noncurrent assets

15,543

15,877

Total assets

79,89378,912

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 of

As ofJanuary 31, 2014

July 31, 2014

AmountAmount（ Liabilities）Current liabilities

13,022

11,687

Income taxes payable

620

411

Accrued consumption taxes

36

3Provision for bonuses

128

105

Other

727

673

14,534

12,881

Provision for retirement benefits

917

937

Deferred tax liabilities

477

750

Other

851

753

2,246

2,441

16,781

15,322

Capital stock

13,672

13,672

Capital surplus

13,336

13,336

Retained earnings

38,55538,262

Treasury stock(3,945)(3,283)

Total shareholders’ equity

61,61861,987

1,248

1,720

(0)
166

(0)
(197)

1,413

1,522

Subscription rights to shares

79

79

Total net assets

63,112

63,589Total liabilities and net assets

79,89378,912

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
income5Consolidated Statements of Income（Millions of yen）

Net sales
Cost of sales
Gross profit

Six months ended
July 31, 2013

Six months ended
July 31, 2014

AmountAmount44,00039,977
4,022

53,98749,8094,178(7)
1,319
134
68
179
93
1,433
3,221
801

(0)
1,343
105
68
175
76
1,548
3,319
859

87
34
3
5
32
10
174

81
76
－
576
13
253

1－
6
0
0
9966

1
24－
1
1
29
1,083

15－
－
15982

32
178
112
1,196

390(60)
329
652
652

404
43
448
747
747

Selling, general and administrative expenses
Provision of allowance for doubtful accounts
Salaries and bonuses
Provision for bonuses
Retirement benefit expenses
Rent expensesDepreciation
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gains
Purchase discounts
Gain on investments in partnership
Other
Total non-operating income
Non-operating expenses
Sales discounts
Foreign exchange losses
Loss on valuation of securities
Loss on abandonment of noncurrent assets
Other
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
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Net income6

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

Income before minority interests（Millions of yen）
Six months ended
July 31, 2013

Six months ended
July 31, 2014

AmountAmount

652

747

299
(0)
718
1,017
1,669

472
0(363)
108
856

1,669

856－－

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

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

Six months ended

July 31, 2013

July 31, 2014

AmountAmountI. Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Loss (gain) on sales and retirement of property, plant and equipment
Gain on investments in partnership
Foreign exchange losses (gains)
Increase (decrease) in provisionInterest and dividends income
Loss (gain) on sales of investment securities
Surrender value of insurance
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 (paid) refund
Net cash provided by (used in) operating activities

982
99
0(32)
(14)
25(122)(15)－(255)(259)
811
23(421)
821
119(168)
773

1,196
98
(0)
(76)
2
2(2)
(158)
(32)
(78)
564
(227)
(1,240)
(32)
3
17
180
(610)
(411)

(2,500)2,000(3,000)
9,000
(53)

－－
(1,000)
7,500
(58)

0－

(5,292)
149
61－
43
408

(1,441)
75
209
578
44
5,908

(386)
(1)
(0)
(387)
413
1,206
13,226
14,432

(377)
(84)
(0)
(462)
(139)
4,895
11,023
15,918

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 and equipment and intangible
assetsPurchase of investment securities
Proceeds from sales of investment securities
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
Repayments of lease obligations
Other, net
Net cash provided by (used in) financing activities
Ⅳ. Effect of exchange rate change 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 the period8Consolidated Sales by Product(Millions of yen)Six months ended

Six months ended

July 31, 2013

July 31, 2014

Increase(Decrease)

AmountComposition(%)

AmountComposition(%)

Semiconductors/Devices

27,04061.5

32,053

59.4

5,013

ICT/Solutions

16,95938.5

21,934

40.6

4,974

Total

44,000100.0

53,987100.0

9,987

9