August 30, 2016

Consolidated Financial Review
for the Second Quarter Ended July 31, 2016
［Japanese standards］（Consolidated)
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, Director and Senior Executive General Manager
Tel: +81-3-3543-7710
E-mail: irmanager@ryoyo.co.jp
Due date of submitting of quarterly financial statement: September 9, 2016Due date of starting delivery of dividends: October 3, 2016
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, 2016（2/1/2016-7/31/2016）（１）Consolidated operating results
Note: Percentages indicated changes from the same period of previous year.
Net sales
Millions of yen％Six months ended 7/31/1649,291（16.0）

Six months ended 7/31/15

58,651

8.6

Operating income

Ordinary income

Millions of yen ％Millions of yen ％787 （29.6）
1,118

30.1

801（44.2）

1,437

32.7

Note: Comprehensive income
Six months ended 7/31/16:-147 million yen (－%)

Six months ended 7/31/15:

1,023 million yen (19.5%)

Profit attributable toowners of parent
Millions of yen

Net income per share％

Fully diluted
net income per share

YenYenSix months ended 7/31/16

564（48.6）

23.00

22.88

Six months ended 7/31/15

1,097

46.9

44.07

43.85

（２）Consolidated financial position
Net assets pershare

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen％

Yen

As of 7/31/16

75,304

63,20583.9

2,576.55

As of 1/31/16

76,86563,921

83.1

2,591.70(Reference) Equity
Year ended

7/31/16:

63,145 million yen

Year ended

1/31/16:

63,849 million yen

1２．Dividends
Threemonths
ended

Six
monthsended

Ninemonths
ended

Yen

Yen

Yen

(Base date)Year ended

Total

Yen

Yen

Year ended 1/31/1 6－

15.00

－

15.00

30.00

Year ending 1/31/1 7－

20.00

－－－

Year ending 1/31/17 (Estimate)－－－20.0040.00

Note: Revision to dividend forecast for this period: None
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

Year ending
1/31/17％

110,000 （2.1）

OperatingincomeOrdinary income

Profitattributable toowners of parent

Millions of yen ％Millions of yen ％Millions of yen

2,100

139.5

2,100

Note: Revisions to financial forecast for this period: None

291.6

1,390

87.0％

Net income pershareYen

56.63

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: Yes② 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

31,2016: 27,600,000 shares

January 31,2016: 28,200,000 shares② Number of shares of treasury stock as of:July

31,2016: 3,092,147 shares

January 31,2016: 3,563,991 shares③ Average number of shares outstanding as of:July

31,2016: 24,544,837 sharesJuly31,2015: 24,909,729 shares
Indication regarding the implementation status of the quarterly review procedure
The review procedure of the quarterly financial statement based on the Financial Instruments andExchange Act is not completed at the time of disclosure of this financial result.
Caution on forecast for the year ending January 31,2017
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 ofAs ofJanuary 31, 2016

July 31, 2016

AmountAmount（ Assets）
Current Assets
Cash and deposits

13,535

17,525

Notes and accounts
receivable-trade33,52329,841

Securities

1,538

1,000

Merchandise and finished goods

11,184

9,982

354

352

2,110

2,190

(5)

(5)

62,24160,887

Property, plant and equipment

180

165

Intangible assets

669

725

Investment securities

11,67011,872

Net defined benefit asset

1,075

1,124

Other

1,064

563

(36)

(34)

13,774

13,526

Total noncurrent assets

14,624

14,417

Total assets

76,86575,304

Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets

Investments and other assets

Allowance for doubtful accounts
Total investments and other assets

4Consolidated Balance Sheets（Millions of yen）
As ofAs ofJanuary 31, 2016

July 31, 2016

AmountAmount（ Liabilities）
Current liabilities

9,565

9,254

142

267

66130

123

Other

1,150

925

Total current liabilities

10,994

10,578Net defined benefit liability

802

804

Deferred tax liabilities

542

619

Other603

96

1,948

1,520

12,94312,099

Capital stock

13,672

13,672

Capital surplus

13,336

13,336

Retained earnings

38,99738,476

Treasury stock(4,178)(3,649)Total shareholders’ equity

61,827

61,835

1,085

1,341

9(0)

Foreign currency translation adjustment743(217)

Remeasurements of defined benefit plans

183

186

2,021

1,310

Subscription rights to shares

72

59

Total net assets

63,921

63,205

Total liabilities and net assets

76,86575,304

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
Deferred gains or losses on hedges

Total accumulated other comprehensive
income5

Consolidated Statements of Income（Millions of yen）

Net sales

Six months ended
July 31, 2015

Six months ended
July 31, 2016

AmountAmount

Cost of sales

58,65154,02849,29145,180Gross profit

4,623

4,110

Salaries and bonuses

(14)
1,378

(0)
1,320

Provision for bonuses

145

125

Retirement benefit expenses

53

68

Rent expenses

173

165

Depreciation

79

122

Other

1,688

1,521

Total selling, general and administrative expenses

3,504

3,322

1,118787

Interest income

5727

Dividends income

6882

Purchase discounts65

Gain on valuation of investment securities

44－

Gain on investments in partnership
Other

166
9－
18

Total non-operating income

352

134

Loss on redemption of securities

2－50

Loss on valuation of investment securities－18

Foreign exchange losses

2040

Commission fee

76

Loss on abandonment of noncurrent assets

00

Other

23

Total non-operating expenses

33

120

1,437

801

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

Operating income
Non-operating income

Non-operating expenses
Sales discounts

Ordinary income2Extraordinary income
Gain on sales of investment securities

370

105

Other－20

Total extraordinary income

370

126

Loss on sales of investment securities

101

100

Total extraordinary losses

101100Extraordinary losses

Income before income taxes and minority interests

1,705

826

Income taxes-current

566

240

Income taxes-deferred

41

21

Total income taxes

607

262

Profit1,097

564

Profit attributable to owners of parent

1,097

564

6

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

Profit attributable to owners of parent（Millions of yen）
Six months ended
July 31, 2015

Six months ended
July 31, 2016

AmountAmount1,097

564

Valuation difference on available-for-sale securities(21)

Deferred gains or losses on hedges

0(52)
(0)
(74)

256
(9)
(961)
3(711)

1,023

(147)

1,023

(147)

－－

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 ownersof the parent
Comprehensive income attributable tonon-controlling interests

7

Consolidated Statements of Cash Flows（Millions of yen）
Six months ended

Six months ended

July 31, 2015

July 31, 2016

AmountAmountI. 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 redemption of securities
Loss (gain) on valuation of investment securities
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

1,705
108
0(166)
56
10(80)
(125)
－(44)
(268)
1,366
(978)
(1,123)3
178
643
136(617)
163

826
122
0
2(47)
(5)
(2)
(110)
50
18(4)
2,878
938
367
1(343)
4,693
123
(166)
4,650

(240)
384
1,000
(330)
－
(2,569)2,771
900(154)
－
302
9
2,073

(596)
－
1,493
(165)
0(2,521)
1,555
－
－
(7)
47
3(190)(377)(907)(1,285)
(10)

(368)
(200)
(569)

941

3,454

10,868
11,81013,535
16,990

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
Proceeds from redemption of investment securities
Purchase of shares of subsidiaries and associates
Payments of loans receivable from subsidiaries and associates
Proceeds from distribution of investment in partnerships
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 period8)(436)

Consolidated Sales by Product(Millions of yen)Six months ended

Six months ended

July 31, 2015

July 31, 2016

AmountComposition(%)

AmountIncrease(Decrease)

Composition(%)

Semiconductors/Devices

37,92264.7

29,47059.8(8,451)

ICT/Solutions

20,72935.3

19,820

40.2

(909)

Total

58,651

100.0

49,291100.0(9,360)9