March 10, 2020

Financial Review for the Year
Ended January 31, 2020
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, Executive General Manager,Administration Headquaters
Tel: +81-3-3543-7711
E-mail: irmanager@ryoyo.co.jp
Due date of annual shareholders meeting: April 28, 2020
Due date of starting delivery of dividends: April 30, 2020
Due date of submitting of financial statement: April 28, 2020
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, 2020（2/1/2019-1/31/2020）（１）Consolidated operating results
Note: Percentages indicated changes from the same period of previous year.
Net sales
Millions of yen

Operating profit％

Millions of yen

Year ended 1/31/20
108,538
15.7
Year ended 1/31/19
93,7991.7
Note: Comprehensive income
Year ended 1/31/20:
1,680
million yen
Year ended 1/31/19:(796) million yen
Profitattributable toowners of parent
Millions of yen

Year ended 1/31/20
Year ended 1/31/19

1,303
1,020

Net income
per share

2,154
1,257
(
(

Ordinary profit％

Millions of yen

％

71.3
400.1

2,187
1,474

48.3
241.0

－%)
－%)

Fully
diluted
net income
per share

Return on
equityOrdinary
income tototal
assetsOperatingincome tonet sales

％

Yen

Yen

％

％

％

27.7
379.5

53.06
41.62

52.76
41.46

2.1
1.6

2.8
1.9

2.0
1.3

(Reference) Investment profit/loss on equity method:Year ended 1/31/20:－ million yen
Year ended 1/31/19:－ million yen

1（２）Consolidated financial position

Total assets

Net assets

Millions of yen

Millions of yen％

Yen

78,11775,53862,13562,20879.4
82.2

2,524.47
2,531.90

As of 1/31/20
As of 1/31/19(Reference) Equity
Year ended 1/31/20:
Year ended 1/31/19:

Equity ratio

Net assets per share

62,033 million yen
62,085 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

1,463
588

Year ended 1/31/20
Year ended 1/31/19

(766)
543

(1,743)(1,468)12,417
13,416

２．Dividends

Cash dividends per share
Six
Year
months
Total
ended
ended
(Base date)Year ended 1/31/19
Year ended 1/31/20

Yen

Yen

30.00
40.00
60.00

Year ending 1/31/21 (Estimate)

30.00
40.00
120.00Total
dividends
Paid(Full Year)

Payoutratio

Millions of yen

Yen

60.00
80.00
180.00

Dividends onequity
％

1,471
1,965
－

144.2
150.8
289.1

％

2.3
3.2
－

３．Financial forecast for the year ending January 31,2021（2/1/2020-1/31/2021）
Note: Percentages indicated changes from the same period of previous year.

OperatingprofitNet sales
Millions of yen

Year ending
1/31/21

105,000

Ordinary profit

Profitattributable toowners of parent％

Millions of yen％

Millions of yen％

Millions of yen

(3.3)

2,200

2.1

2,200

0.6

1,530

2

Net income per
share

％

Yen

17.4

62.26

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: None
② Other changes: None
③ Change in accounting estimate: None
④ Restatement of revisions: None
（3）Number of shares outstanding (common shares)① Number of shares of common shares issued as of:(Including treasury shares)
January 31,2020: 26,800,000 shares
January 31,2019: 26,800,000 shares② Number of shares of treasury shares:
January 31,2020: 2,227,199 shares
January 31,2019: 2,278,591 shares③ Average number of shares outstanding as of:January 31,2020: 24,558,567 shares
January 31,2019: 24,518,026 shares

3

(Reference) Non-consolidated financial review
1.Financial highlights for the year ended January 31,2020 (2/1/2019-1/31/2020)（１）Operating results
Note: Percentages indicated changes from the same period of previous year.
Net salesYear ended 1/31/20
Year ended 1/31/19

Operating profit

Ordinary profit
Millions of yen

Millions of yen％

Millions of yen

92,80785,016

9.2
1.5

1,859
1,077

Net income
Millions of yen

1,891
1,241

％

％

52.4
401.8

Fully diluted
net income per share

Net income per share
Yen

1,058
28.0
827 1,171.3

Year ended 1/31/20
Year ended 1/31/19

％

72.6
909.6

Yen

43.12
33.74

42.87
33.61

（２）Financial position
Total assets

Net assets

Millions of yen

Millions of yen

Equity ratio

As of 1/31/20
71,81457,548
As of 1/31/19
70,111
57,601(Reference) Equity
Year ended 1/31/20: 57,446 million yen
Year ended 1/31/19: 57,478 million yen

Net assets per
share

％

Yen

80.0
82.0

2,337.79
2,344.00

Indication regarding the implementation status of auditing procedure
This Financial Review is not subject to audit procedure under the Financial Instruments and Exchange
Act.
Caution on estimates for the year ending January 31,2021
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 ofJanuary 31, 2019

As ofJanuary 31, 2020

AmountAmount（Assets）
Current Assets
Cash and deposits

13,416

12,417

Notes and accounts receivable - trade25,58528,152

544－

Securities

Due date of submitting of quarterly financial statement
and finishedgoods
DueMerchandise
date of starting
deliveryof dividends: December 8, 201712,124: -12,598

1,444

1,288

(2)

(2)

53,11354,453Tools, furniture and fixtures, net

91

96

Land

5

5

Other, net

91

126

Total property, plant and equipment

188

229

Intangible assets

404

311

Investment securities

19,43920,334Retirement benefit asset

1,431

1,627

Other

1,305

1,481

Allowance for doubtful accounts

(344)

(320)

21,832

23,122

22,42523,66475,53878,117

Other

Supplementary materials for the quarterly financial results: None
Allowance for doubtful accounts: NoneTotal current assets
Non-current assets
Property, plant and equipment

Investments and other assets

Total investments and other assets
Total noncurrent assets
Total assets

5Consolidated Balance Sheets(Millions of yen)

As ofJanuary 31, 2019

As ofJanuary 31, 2020

AmountAmount（Liabilities）
Current liabilities

10,092

12,006

Income taxes payable

126

730

Accrued consumption taxes

248

226

Provision for bonuses

241

467

Other

815

1,123

11,523

14,554Retirement benefit liability

802

182

Deferred tax liabilities

466

827

Other

537

418

1,806

1,427

13,32915,982

Capital stock

13,672

13,672

Capital surplus

13,336

13,336

Retained earnings

35,82735,337

Treasury shares(2,690)(2,630)Total shareholders' equity

60,14559,715

1,569

2,141

Deferred gains or losses on hedges

(0)

(0)

Foreign currency translation adjustment

189

79

Remeasurements of defined benefit plans

182

97

1,940

2,317

123

102

Total net assets

62,20862,135

Total liabilities and net assets

75,53878,117

Notes and accounts payable - trade

Total current liabilities
Non-current liabilities

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

6

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

Net sales
Cost of sales
Gross profit

Year ended
January 31, 2019Year ended
January 31, 2020

AmountAmount

93,79984,874
8,925

108,538
98,177
10,361

77
3,027
240
93
362
217
3,650
7,667
1,257

(0)
3,191
434
57
362
264
3,896
8,206
2,154

110
123
6
60
24
325

62
167
7
18
16
272

12
75
18
1
1
108
1,474

5
181
20
4
26
239
2,187

－
145
16
162

700
430
9
1,140

104
104
1,532
282
229
512
1,020
1,020

1,107
1,107
2,219
771
145
916
1,303
1,303

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 partnership
Other
Total non-operating income
Non-operating expenses
Sales discounts
Foreign exchange losses
Commission expenses
Loss on abandonment of non-current assets
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on contribution of securities to retirement benefit trust
Gain on sales of investment securities
Gain on liquidation of subsidiaries and associates
Total extraordinary income
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

7

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

Year ended
January 31, 2019Year ended
January 31, 2020

AmountAmount

1,020

1,303

(1,444)571

00Foreign currency translation adjustment

(240)

(110)

Remeasurements of defined benefit plans, net of tax

(131)

(84)

(1,816)

377

(796)

1,680

(796)

1,680

－

－

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

8Consolidated Statements of Changes in Net Assets
Previous period ( From

February 1, 2018 to January 31, 2019 )(Millions of yen)
Shareholders’equity

Balance at the beginningof current period

Capitalstock

CapitalsurplusRetainedearnings

13,672

13,33636,287

Treasuryshares(2,707)

Total
shareholders'equity60,588Changes of items during
the period
Dividends from surplus(1,470)(1,470)

Profit attributableto owners of parent

1,020

1,020

Purchase of treasury shares

(1)

(1)

Disposal of treasury shares

0

0

0

Exercise of shareacquisition rights

(9)

18

9

Net changes of items otherthan shareholders’equity－

Total changes of items
during the period

－

－

(460)

17

(442)

Balance at the end ofcurrent period

13,672

13,33635,827(2,690)60,145

Accumulated other comprehensive income
Valuationdifference on
available-for-sale
securities

Balance at the beginningof current period

3,013

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

(0)

430

Remesurementsof defined
benefit plans

313

Subscription
rights toshares59

Total
net assets

64,404

Changes of items during
the period
Dividends from surplus(1,470)

Profit attributableto owners of parent

1,020

Purchase of treasury shares(1)

Disposal of treasury shares

0

Exercise of shareacquisition rights

9

Net changes of items otherthan shareholders’equity(1,444)

0

(240)

(131)

63

(1,753)

Total changes of items
during the period(1,444)

0

(240)

(131)

63

(2,195)

Balance at the end ofcurrent period

1,569

(0)

189

182

123

62,2089

Consolidated Statements of Changes in Net Assets
Current period ( From

February 1, 2019 to January 31, 2020 )(Millions of yen)
Shareholders’equity
Capitalstock

Balance at the beginningof current period

13,672

CapitalsurplusRetainedearnings

13,336

Treasuryshares35,827(2,690)Total
shareholders'equity60,145

Changes of items during
the period
Dividends from surplus(1,718)(1,718)

Profit attributableto owners of parent

1,303

1,303

Purchase of treasury shares

(1)

(1)

Exercise of shareacquisition rights

(15)

36

20

Restricted stock payment

10

24

35

Increasing and decreasing byconsolidated subsidiaries
merging with unconsolidated
subsidiaries
Transfer from retained
earnings to capital surplus

4

(69)

(69)

(4)

－

Net changes of items otherthan shareholders’equity－

Total changes of items
during the period

－

－

(490)

60

(429)

Balance at the end ofcurrent period

13,672

13,33635,337(2,630)59,715

Accumulated other comprehensive income
Valuationdifference on
available-for-sale
securities

Balance at the beginningof current period

1,569

Deferred
gains orlosses on
hedge

Foreigncurrencytranslation
adjustment

(0)

189

Remesurementsof defined
benefit plans

182

Subscription
rights toshares123

Total
net assets

62,208Changes of items during
the period
Dividends from surplus(1,718)

Profit attributableto owners of parent

1,303

Purchase of treasury shares(1)

Exercise of shareacquisition rights

20

Restricted stock payment

35

Increasing and decreasing byconsolidated subsidiaries
merging with unconsolidated
subsidiaries(69)

Transfer from retained
earnings to capital surplus－

Net changes of items otherthan shareholders’equity

571

0

(110)

(84)

(20)

356

Total changes of items
during the period

571

0

(110)

(84)

(20)

(73)

Balance at the end ofcurrent period

2,141

(0)

79

97

102

62,13510

Consolidated Statements of Cash Flows(Millions of yen)

I. Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Loss (gain) on sales and retirement of non-current assets
Share-based compensation expenses
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
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 dividend income received
Interest paid
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 sales of 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 assets
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from redemption of investment securities
Purchase of shares of subsidiaries and associates
Proceeds from liquidation of affiliates
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
Cash dividends paid
Purchase of treasury shares
Proceeds from sales of treasury shares
Repayments of lease obligations
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 period

11

Year ended
January 31, 2019Year ended
January 31, 2020

AmountAmount

1,532
217
0
72
(60)
(3)
1
3
(234)
(145)
104
196
(1,310)
518
160
(168)
886
212
－
(509)
588

2,219
275
6
27
(18)
0
203
(742)
(229)
(429)
1,107
(2,630)
(506)
1,949
(20)
231
1,444
230
(1)
(208)
1,463

(1,049)
1,192
－
100
(165)
5
(8)
220
－
(3)
－
(99)
99
183
(50)
118
543

(100)
100
500
－
(164)
1
(7,168)
5,740
500
(59)
66
(220)
－
23
(60)
73
(766)

(1,467)(1)
0－(1,468)(140)(476)
13,893－
13,416(1,716)(1)－(26)(1,743)(47)(1,093)
13,41694
12,417

Consolidated Sales by Product(Millions of yen)
Year ended
January 31, 2019Year ended
January 31, 2020

Increase(Decrease)

AmountComposition(%)

AmountComposition(%)

Semiconductors/Devices

49,90653.2

54,338

50.1

4,432

ICT/Solutions

43,89346.8

54,19949.910,306

Total

93,799100.0

108,538100.0

14,73812