March 10, 2022

Financial Review for the Year
Ended January 31, 2022
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 & Chief Executive Officer
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 26, 2022
Due date of starting delivery of dividends: April 27, 2022
Due date of submitting of financial statement: April 26, 2022
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, 2022（2/1/2021-1/31/2022）（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 1/31/22
112,09917.0
Year ended 1/31/21
95,792 (11.7)
Note: Comprehensive income
Year ended 1/31/22:
2,015
million yen
Year ended 1/31/21:
484
million yen
Profitattributable toowners of parent
Millions of yen

Year ended 1/31/22
Year ended 1/31/21

1,873
806

％

132.4
(38.1)Net income
per share

2,258
1,266

Ordinary profit％

Millions of yen

78.2(41.2)

2,400
905

％

165.2
(58.6)(316.5%)(-71.2%)

Fully
diluted
net income
per share

Return on
equityOrdinary
income tototal
assetsOperatingincome tonet sales

Yen

Yen

％

％

％

103.9435.19

103.20
35.09

4.7
1.6

3.6
1.3

2.0
1.3

(Reference) Investment profit/loss on equity method:Year ended 1/31/22:－ million yen
Year ended 1/31/21:－ million yen

1（２）Consolidated financial position

Total assets

Net assets

Millions of yen

Millions of yen％

Yen

72,652
59,33642,30937,99258.2
64.0

2,130.47
2,188.90

As of 1/31/22
As of 1/31/21(Reference) Equity
Year ended 1/31/22:
Year ended 1/31/21:

Equity ratio

Net assets per share

42,278 million yen
37,948 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(8,090)3,003

Year ended 1/31/22
Year ended 1/31/21

2,554
10,431

6,872(18,327)

9,204
7,644

２．Dividends

Cash dividends per share
Six
Year
months
Total
ended
ended
(Base date)Year ended 1/31/21
Year ended 1/31/22

Yen

Yen

60.00
60.00
50.00

Year ending 1/31/23 (Estimate)

120.00
60.00
50.00

Total
dividends
Paid(Full Year)

Payoutratio

Millions of yen

Yen

180.00120.00100.00

Dividends onequity
％

3,561
2,253
－

511.5
115.4
129.7

％

7.6
5.6
－

３．Financial forecast for the year ending January 31,2023（2/1/2022-1/31/2023）
Note: Percentages indicated changes from the same period of previous year.

OperatingprofitNet sales
Millions of yen

Year ending
1/31/23

100,000％(10.8)

Ordinary profit

Profitattributable toowners of parent

Millions of yen％

Millions of yen％

Millions of yen

2,300

1.9

2,200

(8.4)

1,530

2

Net income per
share

％

Yen

(18.3)

77.10

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 31,2022: 26,800,000 shares
January 31,2021: 26,800,000 shares② Number of shares of treasury shares:
January 31,2022: 6,955,177 shares
January 31,2021: 9,463,367 shares③ Average number of shares outstanding as of:January 31,2022: 18,025,204 shares
January 31,2021: 22,907,171 shares

3

(Reference) Non-consolidated financial review
1.Financial highlights for the year ended January 31,2022 (2/1/2021-1/31/2022)（１）Operating results
Note: Percentages indicated changes from the same period of previous year.
Net sales
Millions of yen

81,65073,066

Year ended 1/31/22
Year ended 1/31/21％

Millions of yen

1,823
2,208

Ordinary profit

Millions of yen

Millions of yen

11.7(21.3)Net income

Year ended 1/31/22
Year ended 1/31/21

Operating profit

1,704
1,046

％

62.9
(43.7)

2,148
2,419

Fully diluted
net income per share

Net income per share％

Yen(17.4)
108.5％(11.2)
27.9

Yen

101.1696.40

100.44
96.12（２）Financial position
Total assets

Net assets

Millions of yen

Millions of yen

Equity ratio

As of 1/31/22
61,27039,166
As of 1/31/21
53,04835,366(Reference) Equity
Year ended 1/31/22: 39,135 million yen
Year ended 1/31/21: 35,322 million yen

Net assets per
share

％

Yen

63.9
66.6

1,972.09
2,037.46

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 31,2023
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, 2021

As ofJanuary 31, 2022

AmountAmount（ Assets）
Current Assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Securities
Merchandise and finished goods

Due date of submitting of quarterly financial statement
Work in process
Due date of starting delivery of dividends

9,204
28,663

2,257

3,494

999

500

11,614

19,466

1,535

1,505

: December 8, 2017
150
: -

Other
Allowance for doubtful accounts

7,644
23,227

Supplementary materials for the quarterly financial results: None
Total current assets: None

122

(6)

(5)

47,42362,952

Non-current assets
Property, plant and equipment

84

74

Land

5

5

Construction in progress

Tools, furniture and fixtures, net

4

6

Other, net

120

132

Total property, plant and equipment

214

219

Goodwill

599

535

Other

245

297

Total Intangible assets

844

832

8,143

5,721

Intangible assets

Investments and other assets
Investment securities

39

53

Retirement benefit asset

1,520

1,621

Other

1,804

1,737

Deferred tax assets

Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

5

(653)

(485)

10,854

8,648

11,9139,700

59,33672,652

Consolidated Balance Sheets(Millions of yen)
As ofJanuary 31, 2021

As ofJanuary 31, 2022

AmountAmount（Liabilities）
Current liabilities
Notes and accounts payable - trade

11,263

14,726

Short-term borrowings

6,637

11,763

Income taxes payable

92

427

Accrued consumption taxes

231

35

Provision for bonuses

264

560

Other

1,335

1,370

Total current liabilities

19,82528,884Long-term borrowings

79－

Deferred tax liabilities

919

865

Retirement benefit liability

212

321

Other

308

271

1,518

1,458

21,34430,342

Share capital

13,672

13,672

Capital surplus

13,336

13,336

Retained earnings

33,46031,164

Treasury shares(24,461)(17,978)

Total shareholders' equity

36,00640,194

2,119

1,794

(0)

(0)

Foreign currency translation adjustment

(126)

412

Remeasurements of defined benefit plans

(50)

(122)

1,941

2,083

43

30

Total net assets

37,99242,309Total liabilities and net assets

59,33672,652

Non-current 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

Total accumulated other comprehensive income
Share acquisition rights

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, 2021

Year ended
January 31, 2022

AmountAmount

95,79286,5989,194

112,099
101,366
10,732

(0)
3,286
244
87
410
219
3,679
7,927
1,266

(0)
3,447
504
200
399
149
3,773
8,474
2,258

34
160
1
58
81
335

18
105
0
134
28
286

53
37
61
32
0
490
20
697
905

90
4
9
10
3
－
26
144
2,400

597
47
644

291
－
291

175
41
136
47
119
520
1,028
62
160
222
806
806

23
－
70
52
18
164
2,526
545
107
653
1,873
1,873

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
Interest expenses
Sales discounts
Foreign exchange losses
Commission expenses
Loss on abandonment of non-current assets
Commission for purchase of treasury shares
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Gain on contribution of securities to retirement benefit trust
Total extraordinary income
Extraordinary losses
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries and associates
Provision of allowance for doubtful accounts
Settlement package
Total extraordinary losses
Profit before income taxes
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, 2021

Year ended
January 31, 2022

AmountAmount806

1,873

Valuation difference on available-for-sale securities

(21)

(324)

Deferred gains or losses on hedges

(0)

(0)

Foreign currency translation adjustment

(151)

538

Remeasurements of defined benefit plans, net of tax

(148)

(71)

Total other comprehensive income

(322)

142

484

2,015

Comprehensive income attributable to owners of parent

484

2,015

Comprehensive income attributable to non-controlling interests－－

Profit attributable to owners of parent
Other comprehensive income

Comprehensive income(Details)

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

February 1, 2020 to January 31, 2021 )(Millions of yen)
Shareholders’equity
Share
capitalBalance at the beginningof current period

13,672

CapitalsurplusRetainedearnings

13,336

Treasuryshares35,337(2,630)Total
shareholders'equity59,715

Changes during period
Dividends of surplus(2,463)(2,463)

Profit attributableto owners of parent

806

806

Purchase of treasury shares(21,960)(21,960)

Disposal of treasury shares

0

0

0

Exercise of share acquisitionrights

(43)

101

58

Restricted stock payment

29

27

56

Change in scope of
consolidation
Transfer from retained earnings
to capital surplus

13

(205)

(205)

(13)

－

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period－－－(1,877)(21,831)(23,709)

13,672

13,33633,460(24,461)

36,006

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

Balance at the beginningof current period

2,141

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

(0)

79

Remesurementsof defined
benefit plans

97

Share
acquisitionrights102

Total
net assets

62,135

Changes during period
Dividends of surplus(2,463)

Profit attributableto owners of parent

806

Purchase of treasury shares(21,960)

Disposal of treasury shares

0

Exercise of share acquisitionrights58

Restricted stock payment

56

Change in scope of
consolidation

(53)

(259)

Transfer from retained earnings
to capital surplus
Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

－

(21)

(0)

(151)

(148)

(58)

(380)

(21)

(0)

(205)

(148)

(58)

(24,143)

(0)

(126)

(50)

43

37,9922,119

9

Consolidated Statements of Changes in Net Assets
Current period ( From

February 1, 2021 to January 31, 2022 )(Millions of yen)
Shareholders’equity

Balance at the beginningof current period

SharecapitalCapitalsurplusRetainedearnings

13,672

13,33633,460Treasuryshares(24,461)

Total
shareholders'equity36,006

Changes during period
Dividends of surplus(3,142)(3,142)

Profit attributableto owners of parent

1,873

1,873

Purchase of treasury shares
Disposal of treasury shares
Exercise of share acquisitionrightsRestricted stock payment
Transfer from retained earnings
to capital surplus

(1)

(1)

(0)

0

0

(1,028)

6,430

5,401

2

54

57

1,025

(1,025)－

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period－－－(2,295)

6,483

4,188

13,672

13,336

31,164(17,978)

40,194

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

Balance at the beginningof current period

2,119Deferred
gains orlosses on
hedge

Foreigncurrencytranslation
adjustment

Remesurementsof defined
benefit plans

(0)

(126)

(50)

Share
acquisitionrights43

Total
net assets

37,992

Changes during period
Dividends from surplus(3,142)

Profit attributableto owners of parent

1,873

Purchase of treasury shares(1)

Disposal of treasury shares

0

Exercise of share acquisitionrights5,401

Restricted stock payment

57

Transfer from retained earnings
to capital surplus－

Net changes of items otherthan shareholders’equity

(324)

(0)

538

(71)

(13)

129

Total changes during period

(324)

(0)

538

(71)

(13)

4,317

Balance at end of period

1,794

(0)

412

(122)

30

42,30910

Consolidated Statements of Cash Flows(Millions of yen)

I. Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Loss (gain) on sales and retirement of non-current assets
Share-based remuneration expenses
Expenses for treasury shares
Loss (gain) on investments in investment partnerships
Foreign exchange losses (gains)
Increase (decrease) in provisions
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss on valuation of shares of subsidiaries and associates
Settlement package
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
Interest paid
Settlement package 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 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
Purchase of shares of subsidiaries and associates
Proceeds from distributions from investment partnerships
Purchase of insurance funds
Proceeds from cancellation of insurance funds
Purchase of shares of subsidiaries resulting in change in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Ⅲ. Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Dividends paid
Purchase of treasury shares
Proceeds from sales of treasury shares
Proceeds from issuance of share acquisition rights
Proceeds from disposal of treasury shares from exercise of subscription rights to shares
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. Increase in cash and cash equivalents resulting from inclusion of subsidiaries in consolidation
Ⅷ. Cash and cash equivalents at end of period

11

Year ended
January 31, 2021

Year ended
January 31, 2022

AmountAmount

1,028
241
42
0
51
490
(58)
(26)
(216)
(58)
(194)
53
(422)
41
136
119
2,860
990
(991)
(27)
(153)
3,908
201
(53)
(38)
(1,015)
3,003

2,526
178
64
3
57
－
(134)
57
120
15
(123)
90
(267)
－
70
18
(5,832)(7,527)
3,054
(197)
(359)
(8,184)
127
(88)
(9)
64
(8,090)

(21)
21
－
(107)
1
(2,484)
13,407
(98)
86
(75)
－
(383)
84
10,431

－
－
500
(152)
1
(112)
2,267
－
127
(165)
187
(99)
2
2,554

33,986(27,353)(2,458)(22,451)
0
－
－
(36)
(14)
(18,327)(64)(4,958)12,417186
7,644

96,452(91,799)(3,133)
(1)
0
19
5,369
(34)
－
6,872
223
1,559
7,644
－
9,204

Consolidated Sales by Product(Millions of yen)
Year ended
January 31, 2021
AmountYear ended
January 31, 2022

Composition(%)

AmountIncrease(Decrease)

Composition(%)

Semiconductors/Devices

49,85452.0

63,79356.9

13,939ICT/Solutions

45,93848.0

48,305

43.1

2,367

Total

95,792100.0

112,099

100.0

16,30612