November 27, 2018

Consolidated Financial Review
for the Third Quarter Ended October 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: December 7, 2018
Due date of starting delivery of dividends: Supplementary materials for the quarterly financial results: NoneInvestor conference for the quarterly financial results: NoneNote: Figures are rounded down to the nearest million yen.
１．Financial highlights for the third quarter ended October 31, 2018（2/1/2018-10/31/2018）（１）Consolidated 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

％

1,250
1,149

8.8
1.1％

Nine months ended 10/31/18
69,1060.8
1,150 14.5
Nine months ended 10/31/17
68,590 (6.0)
1,004 (8.9)
Note: Comprehensive income
Nine months ended 10/31/18:(468) million yen (－%)
Nine months ended 10/31/17:
1,092
million yen (524.0%)

Profit attributable toowners of parent
Millions of yen ％860804

Nine months ended 10/31/18
Nine months ended 10/31/17

6.9
17.8

Net income per share
Yen

Fully diluted
net income per share
Yen

35.08
32.85

34.95
32.71

（２）Consolidated financial position

As of 10/31/18
As of 1/31/18(Reference) Equity
Year ended
Year ended

Total assets

Net assets

Millions of yen

Millions of yen％

Yen

76,465
78,111

62,46364,40481.6
82.4

2,545.24
2,625.66

10/31/18:
1/31/18:

62,413 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
ended

Yen

Yen

－－－

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

Year
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: None

2％

223.8

960

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)
October 31,2018: 26,800,000 shares
January 31,2018: 26,800,000 shares② Number of shares of treasury stock as of:October 31,2018: 2,278,405 shares
January 31,2018: 2,293,760 shares③ Average number of shares outstanding as of:October 31,2018: 24,516,865 shares
October 31,2017: 24,506,919 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 ofOctober 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

14,04012,68525,912

26,568: December 8, 2017649
: -666

10,857

11,794

497

466

1,378

1,292

(2)

(2)

53,33253,470Property, plant and equipment

163

194

Intangible assets

454

390

Investment securities

21,93019,942

Net defined benefit asset

1,458

1,552

Other

1,152

1,178

Allowance for doubtful accounts

(381)

(263)

24,16022,40924,77822,994

78,111

76,465Merchandise and finished goods
Supplementary materials for the quarterly financial results: NoneDeferred tax assets: NoneOther
Allowance for doubtful accounts
Total current assetsNoncurrent 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 ofOctober 31, 2018

AmountAmount（Liabilities）
Current liabilities

9,653

10,009

Income taxes payable

419

127

Accrued consumption taxes

87

192

Provision for bonuses

205

385

Other716

1,048

11,082

11,762

790

794

1,429

935

405

508

2,624

2,238

13,706

14,001

Capital stock

13,672

13,672

Capital surplus

13,336

13,336

Retained earnings

36,28735,667

Treasury shares(2,707)(2,690)Total shareholders' equity

60,58859,985

3,013

1,813

Deferred gains or losses on hedges

(0)

(0)

Foreign currency translation adjustment

430

320

Remeasurements of defined benefit plans

313

294

3,756

2,427

59

50

Total net assets

64,40462,463

Total liabilities and net assets

78,111

76,465

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

Nine months ended
October 31, 2017

Nine months ended
October 31, 2018

AmountAmount

68,59062,357
6,233

69,10662,378
6,727

(1)
1,944
363
89
256
173
2,402
5,228
1,004

(3)
2,036
381
53
272
160
2,677
5,577
1,150

47
72
661
14202

77
84
514
19201

54340
357
1,149

975
13
10
101
1,250

161
161－
－

33
105
138
1,172
469
(101)
367
804
804－－
－
1,250
314
75
390
860
860

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
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales of investment securities
Loss on liquidation of subsidiaries and associates
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to owners of parent6

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

Nine months ended
October 31, 2017

Nine months ended
October 31, 2018

AmountAmount804

860

Valuation difference on available-for-sale securities

518(1,200)

Deferred gains or losses on hedges(0)0(230)

(109)

0(19)

287

(1,329)1,092(468)

1,092(468)－－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)
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

7Consolidated Sales by Product(Millions of yen)
Nine months ended
October 31, 2017

Nine months ended
October 31, 2018

AmountComposition(%)

AmountComposition(%)

Semiconductors/Devices

37,87055.2

37,23153.9(639)

ICT/Solutions

30,72044.8

31,874

46.1

1,154

Total

68,590100.069,106

100.0

515

8

Increase(Decrease)