March 9, 2016

Financial Review for the Year
Ended January 31, 2016
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:
Kiyoshi Waki, Senior Executive General Manager, Administration Headquaters
Tel: +81-3-3543-7710
E-mail: irmanager@ryoyo.co.jp
Due date of annual shareholders meeting: April 27, 2016
Due date of starting delivery of dividends: April 28, 2016
Due date of submitting of financial statement: April 27, 2016
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, 2016（2/1/2015-1/31/2016）（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 1/31/16

112,3322.0

876(57.3)

1,096(56.1)

Year ended 1/31/15

110,107

12.5

2,053

24.3

2,498

20.3

Note: Comprehensive income
Year ended 1/31/16:(194) million yen

Year ended 1/31/15: 3,017

Millions of yen

million yen
Net income
per share

Net income(－%)(-5.8%)
Fully
diluted
net income
per share

Return on
equityOrdinary
income tototal
assetsOperatingincome tonet sales

％

Yen

Yen

％

％

％

Year ended 1/31/16

743(55.9)

30.01

29.86

1.1

1.4

0.8

Year ended 1/31/15

1,683

25.4

66.74

66.39

2.6

3.1

1.9

(Reference) Investment profit/loss on equity method:Year ended 1/31/16:－ million yen

Year ended 1/31/15:－ million yen

1（２）Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen％

Yen

As of 1/31/16

76,86563,921

83.1

2,591.70

As of 1/31/15

82,93765,58379.0

2,595.83

Equity ratio

Net assets per share(Reference) Equity
Year ended 1/31/16:

63,849 million yen

Year ended 1/31/15:

65,511 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 1/31/16

1,169

3,223

(1,654)

13,535

Year ended 1/31/15(4,827)

5,293

(755)

10,868

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 1/31/1 5

15.00

15.00

30.00

765

44.9

1.2

Year ending 1/31/1 6

15.00

15.00

30.00

739

100.0

1.2

Year ending 1/31/17 (Estimate)

20.00

20.00

40.00

―

70.9

―

３．Financial forecast for the year ending January 31,2017（2/1/2016-1/31/2017）
Note: Percentages indicated changes from the same period of previous year.
Net sales
Millions of yen％

OperatingincomeOrdinary income

Profitattributable toowners of parent

Millions of yen ％Millions of yen ％Millions of yen％

Net income per
share
Yen

Six months ending
7/31/16

53,000 (9.6)

800(28.5)

800(44.4)

530(51.7)

21.51

Year ending
1/31/17

110,000 (2.1)

2,100

139.5

2,100

91.6

1,390

87.0

56.42

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: None
④ 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 31,2016: 28,200,000 shares
January 31,2015: 28,200,000 shares② Number of shares of treasury stock:
January 31,2016: 3,563,991 shares
January 31,2015: 2,962,905 shares③ Average number of shares outstanding as of:January 31,2016: 24,771,876 shares
January 31,2015: 25,228,440 shares

3

(Reference) Non-consolidated financial review
1.Financial highlights for the year ended January 31,2016 (2/1/2015-1/31/2016)（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 1/31/16

99,4320.2

676(63.6)

891(60.8)

Year ended 1/31/15

99,240

14.2

1,861

42.7

2,276

36.2

Net income
Millions of yen

Fully diluted
net income per share

Net income per share
％

Yen

Yen

Year ended 1/31/16

585(60.6)

23.64

23.52

Year ended 1/31/15

1,487

49.8

58.98

58.66

（２）Financial position
Total assets

Net assets

Millions of yen

Millions of yen

Equity ratio

Net assets per
share

％

Yen

As of 1/31/16

71,24059,27783.1

2,403.18

As of 1/31/15

77,08360,90678.9

2,410.49(Reference) Equity
Year ended 1/31/16:

59,204 million yen

Year ended 1/31/15:

60,833 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 31,2017
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, 2015

January 31, 2016

AmountAmount（ Assets）
Current Assets
Cash and deposits

11,616

13,535

Notes and accounts
receivable-trade34,44633,523

Securities

2,000

1,538

Merchandise and finished goods

14,482

11,184

214

354

2,438

2,110

(20)

(5)

65,177

62,241Tools, furniture and fixtures, net

81

102

Land

5

5

Other, net

109

71

Total property, plant and equipment

196

180

Intangible assets

645

669

14,97911,670

798

1,075

1,141

1,064

(1)

(36)

16,917

13,774

Total noncurrent assets

17,75914,624

Total assets

82,93776,865

Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment

Investments and other assets
Investment securities
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets

5Consolidated Balance Sheets（Millions of yen）
As of

As of

January 31, 2015

January 31, 2016

AmountAmount（ Liabilities）
Current liabilities

12,753

9,565

573

142

3

6

119

130

Other

1,356

1,150

Total current liabilities

14,806

10,994

Net defined benefit liability

895

802

Deferred tax liabilities

948

542

Other

703

603

2,547

1,948

17,353

12,943

Capital stock

13,672

13,672

Capital surplus

13,336

13,336

Retained earnings

38,81338,997

Treasury stock(3,270)(4,178)

Total shareholders’ equity

62,551

61,827

1,843

1,085

Deferred gains or losses on hedges(0)9Foreign currency translation adjustment

904

743

Remeasurements of defined benefit plans

211

183

2,959

2,021

Subscription rights to shares

72

72

Total net assets

65,58363,921

Total liabilities and net assets

82,93776,865

Notes and accounts payable-trade
Income taxes payable
Accrued consumption taxes
Provision for bonuses

Noncurrent 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
income6

Consolidated Statements of Income and Consolidated Comprehensive Statements of Income(Consolidated Statement of Income)（Millions of yen）
Year ended
January 31, 2015

Year ended
January 31, 2016

AmountAmountNet sales

110,107112,332

Cost of sales

101,306

104,479

Gross profit

8,801

7,852

Selling, general and administrative expenses
Provision of allowance for doubtful accounts

3

20

Salaries and bonuses

2,842

2,869

Provision for bonuses

119

130

Retirement benefit expenses

137

107

Rent expenses

349

339

Depreciation

153

197

Other

3,142

3,311

Total selling, general and administrative expenses

6,747

6,976

2,053

876

Interest income

145

96

Dividend income

137

113

Purchase discounts

1211

Gain on investments in partnership

205

179

Operating income
Non-operating income

Other

22

19

Total non-operating income

523

420

Sales discounts

3

4

Loss on valuation of investment securities

49

73

Foreign exchange losses

15

103

Commission fee

714

Loss on abandonment of noncurrent assets

1

2

Other

0

2

Non-operating expenses

Total non-operating expenses
Ordinary income

78

201

2,498

1,096

Extraordinary income
212

370

Gain on bad debts recovered

1－

Surrender value of insurance

78－

Total extraordinary income

292

370

Loss on sales of investment securities

11

101

Impairment loss－

141

Special extra retirement payments

70－

Settlement package

20－

Total extraordinary losses

101

243

2,689

1,222

Gain on sales of investment securities

Extraordinary losses

Income before income taxes and minority interests
Income taxes-current

980

611

Income taxes-deferred

25

(132)

Total income taxes

1,005

479

Income before minority interests

1,683

743

Net income

1,683

743

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
January 31, 2015

Year ended
January 31, 2016

AmountAmount

1,683

743

595
0
738
－
1,333
3,017

(758)
9
(161)
(28)
(937)
(194)

3,017

(194)

－

－

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
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, 2014 to January 31, 2015 )（Millions of yen）

Shareholders’ equity

Capital stock

Balance at the beginningof current period
Changes of items during
the period

13,672

CapitalRetained

Treasury

surplusearnings

stock

13,33638,555

Total
shareholders’equity（3,945）61,618Dividends from surplus

（756）

（756）

Net income

1,683

1,683

Purchase of treasury
stock
Retirement oftreasury stock
Exercise subscription
rights to shares
Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period

(1)

（1）

(662)

662

－

(6)

13

6
－

－

－

258

13,672

13,33638,813674（3,270）932
62,551

Accumulated other comprehensive income
Valuationdifference on
available-for-sale
securities
Balance at the beginningof current period
Changes of items during
the period

1,248

Subscription

Deferred
gains orlosses on
hedge

Foreigncurrencytranslation
adjustment

Remesurementsof defined
benefit plans

(0)

166

－

rights to

Total net

sharesassets79

63,112

Dividends from surplus（756）

Net income

1,683

Purchase of treasury
stock
Retirement oftreasury stock
Exercise subscription
rights to shares
Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period

（1）
－
6
595

0

738

211

(6)

1,538

595

0

738

211

(6)

2,471

1,843

(0)

904

211

72

65,5839

Consolidated Statements of Changes in Net Assets
Current period ( From

February 1, 2015 to January 31, 2016 )（Millions of yen）
Shareholders’ equity

Capital stock
Balance at the beginning ofcurrent period

13,672

Capital surplus

13,336

Cumulative effects ofchanges in accounting
policies

Retainedearnings

Total
Treasury stock

equity38,813（3,270）188
13,672

Restarted balance

13,336

shareholders’62,551

188

39,002（3,270）62,740Changes of items during theperiodDividends from surplus
Net income
Purchase
stock

of

（748）

（748）

743

743

treasury(908)

Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at thecurrent period

end

of

（908）
－

－

－

13,672

13,336（4）(908)

38,997（4,178）（913）
61,827

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-forhedge
sale securities
Balance at the beginning ofcurrent period

1,843

(0)

Foreigncurrencytranslation
adjustment

Remesurementsof defined
benefit plansrights to shares

904

211

72

Subscription

Cumulative effects ofchanges in accounting
policies

Total net
assets

65,583

188
1,843

Restarted balance

(0)

904

211

72

65,772

Changes of items during theperiod（748）

Dividends from surplus

743

Net income
Purchasestockoftreasury（908）

Net changes of items otherthan shareholders’ equity

(758)

9

(161)

(28)

－

（937）

Total changes of items during
the period

(758)

9

(161)

(28)

－

（1,850）

Balance at thecurrent period

1,085

9

743

183

72

63,921

end

of

10

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

Year ended

January 31, 2015

January 31, 2016

AmountAmountI. Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Loss (gain) on sales and retirement of noncurrent assets
Impairment loss
Loss (gain) on investments in partnership
Foreign exchange losses (gains)
Increase (decrease) in provision
Increase (decrease) in net defined benefit liability
Interest and dividends income
Loss (gain) on sales of investment securities
Loss (gain) on valuation 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 refund（paid）
Net cash provided by (used in) operating activities

2,689
217
(0)
－
(205)
146
(923)
927
(283)
(201)
49
(78)
(3,645)
(908)
(998)
(33)
(838)
(4,086)310(1,052)(4,827)

1,222
239
2
141
(179)
35
30
(12)
(209)
(268)
73
－
802
3,286
(3,188)
3
(43)
1,936
235
(1,002)
1,169

(757)
315
(1,000)
9,500
(287)
4
(5,766)
2,066
－
－
514
578
125
5,293

－
750
－
2,000
(411)
－
(3,290)
2,774
1,200
(204)
393
－
11
3,223

(754)
(1)
(755)

(746)
(908)
(1,654)

135
(154)

(71)
2,666

11,023
10,868

10,86813,535

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
assetsPurchaseof investment securities
Proceeds from sales of investment securities
Proceeds from redemption of investment securities
Purchase of shares of subsidiaries and associates
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
Purchase of treasury stock
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, 2015

January 31, 2016

Increase(Decrease)

AmountComposition(%)

AmountComposition(%)

Semiconductors/Devices

68,14461.9

72,312

64.4

4,167

ICT/Solutions

41,962

38.1

40,02035.6(1,942)

Total

110,107

100.0

112,332

100.0

2,224

12