August 30, 2018

Consolidated Financial Review
for the Second Quarter Ended July 31, 2018
［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
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 7, 2018
Due date of starting delivery of dividends: October 1, 2018
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, 2018（2/1/2018-7/31/2018）（１）Consolidated operating results
Note: Percentages indicated changes from the same period of previous year.
Net sales
Millions of yen％Six months ended 7/31/18
45,133 (2.0)
Six months ended 7/31/17
46,049 (6.6)
Note: Comprehensive income
Six months ended 7/31/18:(565) million yen
Six months ended 7/31/17:(433) million yen

Profit attributable toowners of parent
Millions of yen ％

619
575

Six months ended 7/31/18
Six months ended 7/31/17

7.8
1.9

Operating income

Ordinary income

Millions of yen

Millions of yen％

892
824

8.2
2.9％

791 14.7
689 (12.5)((－%)－%)Net income per share
Yen

Fully diluted
net income per share
Yen

25.28
23.47

25.18
23.37

（２）Consolidated financial position

As of 7/31/18
As of 1/31/18

Total assets

Net assets

Millions of yen

Millions of yen％

Yen

75,333
78,111

63,10364,404

83.7
82.4

2,571.27
2,625.66(Reference) Equity
As of 7/31/18:
As of 1/31/18:

63,052 million yen
64,344 million yen

1Equity ratio

Net assets per share２．Dividends
Threemonths
ended(Base date)Year ended 1/31/18
Year ending 1/31/19

Sixmonths
endedYen

Yen－－－

Year ending 1/31/19 (Estimate)NinemonthsendedYear
ended

Yen

30.00
30.00
－－－－

TotalYen

Yen

30.00
－30.0060.00－60.00Note: Revision to dividend forecast for this period: None
３．Financial forecast for the year ending January 31,2019（2/1/2018-1/31/2019）
Note: Percentages indicated changes from the same period of previous year.

Operatingincome

Net sales
Millions of yen

Year ending
1/31/19

93,000％0.8

Millions of yen

1,200

％

Ordinary income

Profitattributable toowners of parent

Millions of yen

Millions of yen

377.2

1,400

Note: Revisions to financial forecast for this period: None2％

223.8960

Net income pershare％

Yen

351.1

39.16

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
31,2018: 26,800,000 shares
January 31,2018: 26,800,000 shares② Number of shares of treasury stock as of:July
31,2018: 2,277,941 shares
January 31,2018: 2,293,760 shares③ Average number of shares outstanding as of:July
31,2018: 24,514,315 sharesJuly31,2017: 24,507,055 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 31,2019
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, 2018

As ofJuly 31, 2018

AmountAmount（Assets）
Current Assets
Cash and deposits
Notes and accounts receivable-trade
Due date of submitting of quarterly financial statement
DueSecurities
date of starting delivery of dividends

14,04013,48025,912

24,475: December 8, 2017649
: -657

10,857

11,674

497

452

1,378

1,170

(2)

(2)

53,332

51,907

Property, plant and equipment

163

194

Intangible assets

454

400

Investment securities

21,93020,386

Net defined benefit asset

1,458

1,521

Other

1,152

1,186

Allowance for doubtful accounts

(381)

(263)

24,16022,83024,77823,425

78,11175,333Merchandise and finished goods
Supplementary materials for the quarterly financial results: None
Deferred tax assets: NoneOther
Allowance for doubtful accounts
Total current assets
Noncurrent assets

Investments and other assets

Total investments and other assets
Total noncurrent assets
Total assets

4Consolidated Balance Sheets(Millions of yen)

As ofJanuary 31, 2018

As ofJuly 31, 2018

AmountAmount（Liabilities）
Current liabilities

9,653

8,509

Income taxes payable

419

279

Accrued consumption taxes

87

144

Provision for bonuses

205

193

Other716

745

11,082

9,873

790

796

1,429

1,035

405

524

2,624

2,356

13,706

12,230Capital stock

13,672

13,672

Capital surplus

13,336

13,336

Retained earnings

36,28736,162

Treasury shares(2,707)(2,689)Total shareholders' equity

60,58860,481

3,013

2,067

Deferred gains or losses on hedges

(0)

(0)

Foreign currency translation adjustment

430203Remeasurements of defined benefit plans

313

300

3,756

2,571

59

50

Total net assets

64,404

63,103

Total liabilities and net assets

78,11175,333

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 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, 2017

Six months ended
July 31, 2018

AmountAmount46,04941,865
4,184

45,13340,652
4,480

(2)
1,328
199
59
171
118
1,619
3,494
689

(3)
1,408
192
36
181
104
1,770
3,689
791

29
61
3
63
12
171

54
81
31218
170

227
20
336824651
9106889242
42－－3030836
243
18261
575
575－－892
197
74272
619
619

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
Dividend 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 non-current assets
OtherTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales 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, 2017

Six months ended
July 31, 2018

AmountAmount575619

Valuation difference on available-for-sale securities

100(946)

Deferred gains or losses on hedges(0)0(241)

(226)

0(12)

(141)

(1,185)

433

(565)

Comprehensive income attributable to owners of parent

433

(565)

Comprehensive income attributable to non-controlling interests－－Profit attributable to owners of parent
Other comprehensive income

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income(Details)

7

Consolidated Statements of Cash Flows(Millions of yen)

I. Cash flows from operating activities
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 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, 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. Cash and cash equivalents at end of period

8Six months ended
July 31, 2017

Six months ended
July 31, 2018

AmountAmount

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

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

(666)
242
1,000
(25)
－
(2,190)
918
(26)
99
126
(18)
(0)
(542)

(274)
210
－
(69)
5(6)
－
(98)
98
128
(20)
61
35(489)
(0)
(490)
(136)
2,795
19,343
22,138(733)
(0)
(733)
(130)
(615)
13,893
13,277

Consolidated Sales by Product(Millions of yen)Six months ended
July 31, 2017

Six months ended
July 31, 2018

Increase(Decrease)

AmountComposition(%)

AmountComposition(%)

Semiconductors/Devices

24,44853.1

24,281

53.8

(167)

ICT/Solutions

21,601

46.9

20,851

46.2

(749)

Total

46,049100.0

45,133100.0(916)9