August 29, 2019

Consolidated Financial Review
for the Second Quarter Ended July 31, 2019
［Japanese standards］（Consolidated)
Company name:
Headquarters address:
URL:
Stock exchange listing:Code number:Company representative:
Inquiries:

RYOYO ELECTRO CORPORATION
12-22 Tsukiji 1-chome, Chuo-ku, Tokyo 104-8408 Japan
https://www.ryoyo.co.jp
Tokyo Stock Exchange 1st Section
8068
Moritaka Nakamura, President
Masayuki Takahashi, General Manager of Administration Headquaters
Tel: +81-3-3543-7711
E-mail: irmanager@ryoyo.co.jp
Due date of submitting of quarterly financial statement: September 10, 2019
Due date of starting delivery of dividends: October 1, 2019
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, 2019（2/1/2019-7/31/2019）（１）Consolidated operating results
Note: Percentages indicated changes from the same period of previous year.
Net sales

Operating profit

Ordinary profit％

Millions of yen％

Millions of yen

20.2(2.0)

1,061
791

34.1
14.71,140892

Millions of yen

Six months ended 7/31/19
Six months ended 7/31/18
Note: Comprehensive income
Six months ended 7/31/19:
Six months ended 7/31/18:

54,22945,133924(565)

million yen
million yen

Profit attributable toowners of parent
Millions of yen ％

796
619

Six months ended 7/31/19
Six months ended 7/31/18((－%)－%)Net income per share
Yen

28.5
7.8％

27.8
8.2

Fully diluted
net income per share
Yen

32.44
25.28

32.25
25.18

（２）Consolidated financial position

As of 7/31/19
As of 1/31/19(Reference) Equity
As of
As ofTotal assets

Net assets

Millions of yen

Millions of yen％

Yen

74,90775,53862,36362,20883.1
82.2

2,533.72
2,531.90

7/31/19:
1/31/19:

62,261 million yen
62,085 million yen

1Equity ratio

Net assets per share２．Dividends
Threemonths
ended(Base date)Year ended 1/31/19
Year ending 1/31/20

Sixmonths
ended

Yen

Yen

－－－

Year ending 1/31/20 (Estimate)NinemonthsendedYear
ended

Yen

30.00
40.00
－－－－

TotalYen

Yen

30.00
－
40.00

60.00
－80.00Note: Revision to dividend forecast for this period: None
３．Financial forecast for the year ending January 31,2020（2/1/2019-1/31/2020）
Note: Percentages indicated changes from the same period of previous year.

Operatingprofit

Net sales
Millions of yen

Year ending
1/31/20

98,000％

4.5

Millions of yen

1,500％

19.3

Ordinary profit

Profitattributable toowners of parent

Millions of yen

Millions of yen

1,600

Note: Revisions to financial forecast for this period: None

2％

8.5

1,140Net income pershare％

Yen

11.7

46.45

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 shares)① Number of shares of common shares issued as of:(Including treasury shares)
July
31,2019: 26,800,000 shares
January 31,2019: 26,800,000 shares② Number of shares of treasury shares:
July
31,2019: 2,226,944 shares
January 31,2019: 2,278,591 shares③ Average number of shares outstanding as of:July
31,2019: 24,543,948 sharesJuly31,2018: 24,514,315 shares
Indication regarding the implementation status of the quarterly review procedure
This Financial Review is not subject to audit procedure under the Financial Instruments andExchange Act.
Caution on forecast for the year ending January 31,2020
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 ofJanuary 31, 2019

As ofJuly 31, 2019

AmountAmount（Assets）
Current Assets

13,416

9,817: December 8,25,585
2017
: 544

28,56012,124

12,074

1,444

1,317

(2)

(2)

53,11352,268Property, plant and equipment

188204

Intangible assets

404369Investment securities

19,43919,428Retirement benefit asset

1,431

1,491

Other

1,305

1,487

Allowance for doubtful accounts

(344)

(343)

21,832

22,06322,425

22,63875,53874,907

Cash and deposits
receivable- trade financial statement
DueNotes
dateandofaccounts
submittingof quarterly
DueSecurities
date of starting delivery of dividends

Merchandise andmaterials
finished goods
Supplementary
for the quarterly financial results: None: None
Other
Allowance for doubtful accounts
Total current assets

502

Non-current assets

Investments and other assets

Total investments and other assets
Total non-current assets
Total assets

4Consolidated Balance Sheets(Millions of yen)

As ofJanuary 31, 2019

As ofJuly 31, 2019

AmountAmount（Liabilities）
Current liabilities

10,092

9,227

Income taxes payable

126

389

Accrued consumption taxes

248

89

Provision for bonuses

241

215

Other

815

719

11,523

10,640Retirement benefit liability

802

784

Deferred tax liabilities

466

645

Other

537

473

1,806

1,903

13,32912,544

Capital stock

13,672

13,672

Capital surplus

13,336

13,336

Retained earnings

35,82735,813

Treasury shares(2,690)(2,629)Total shareholders' equity

60,14560,192

1,569

1,932

Deferred gains or losses on hedges

(0)

(0)

Foreign currency translation adjustment

189

(16)

Remeasurements of defined benefit plans

182

153

1,940

2,068

123

102

Total net assets

62,20862,363

Total liabilities and net assets

75,53874,907

Notes and accounts payable - trade

Total current liabilities
Non-current liabilities

Total non-current liabilities
Total liabilities（Net assets）
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total accumulated other comprehensive income
Subscription rights to shares

5Consolidated Statements of Income(Millions of yen)

Net sales
Cost of sales
Gross profit

Six months ended
July 31, 2018

Six months ended
July 31, 2019

AmountAmount45,13340,652
4,480

54,22949,201
5,027

(3)
1,408
192
54
181
104
1,752
3,689
791

(0)
1,546
187
23
181
112
1,915
3,966
1,061

54
81
3
12
18
170

37
103
325
8
178

651
190
68892

382
0
9298
1,140－－892
197
74
272
619619661,133305
31337
796
796

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 profit
Non-operating income
Interest income
Dividend income
Purchase discounts
Gain on investments in investment partnerships
Other
Total non-operating income
Non-operating expenses
Sales discounts
Foreign exchange losses
Loss on abandonment of non-current assets
Commission expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on valuation of investment securities
Total extraordinary losses
Income before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

6

Consolidated Statements of Income and Consolidated Comprehensive Statements of Income(Consolidated Comprehensive Statement of Income)(Millions of yen)Six months ended
July 31, 2018

Six months ended
July 31, 2019

AmountAmount

619

796

(946)

362

00

Foreign currency translation adjustment(226)(205)Remeasurements of defined benefit plans, net of tax

(12)

(28)

(1,185)128(565)

924

(565)

924

－－Profit attributable to owners of parent
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

Total other comprehensive income
Comprehensive income(Details)
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

7

Consolidated Statements of Cash Flows(Millions of yen)

I. Cash flows from operating activities
Income before income taxes and minority interestsDepreciation
Loss (gain) on sales and retirement of property, plant and equipment
Share-based remuneration expenses
Loss (gain) on investments in investment partnerships
Foreign exchange losses (gains)
Increase (decrease) in provision
Increase (decrease) in retirement benefit liability
Interest and dividend income
Loss (gain) on sales of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends 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
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 redemption of investment securities
Purchase of shares of subsidiaries and associates
Loan advances to subsidiaries and associates
Collection of loans receivable from subsidiaries and affiliates
Proceeds from distributions from investment partnerships
Purchase of insurance funds
Other, netNet cash provided by (used in) investing activities
Ⅲ. Cash flows from financing activities
Cash dividends paid
Purchase of treasury shares
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. Increase in cash and cash equivalents resulting from merger with unconsolidated subsidiaries
Ⅷ. Cash and cash equivalents at end of period8

Six months ended
July 31, 2018

Six months ended
July 31, 2019

AmountAmount

892
104
0－
(12)
6(128)
2(135)－
1,336(855)(1,096)57
208
380
121(289)
212

1,133
113
2
9
25
0(25)
(21)
(140)
6(3,101)
(0)
(820)
(152)
(65)
(3,088)135(60)(3,013)

(274)
210
(69)
5(6)
－－(98)
98
128(20)6135(12)
13(89)
0(7)
500
(59)
(220)
－
2(30)
31
128(733)
(0)
(733)
(130)
(615)
13,893－
13,277(734)
(0)
(735)
(73)
(3,693)
13,416
949,817

Consolidated Sales by Product(Millions of yen)Six months ended
July 31, 2018

Six months ended
July 31, 2019

Increase(Decrease)

AmountComposition(%)

AmountComposition(%)

Semiconductors/Devices

24,281

53.8

27,557

50.8

3,275

ICT/Solutions

20,851

46.2

26,671

49.2

5,819

Total

45,133100.0

54,229100.0

9,0959