May 11, 2018

Consolidated Earnings Report for Fiscal Year 2017, Ended March 31, 2018
[Japanese Standards]
Company name:Securities code:
Representative:

Ryosan Company, Limited
Stock listing: First Section, Tokyo Stock Exchange
8140
URL http://www.ryosan.co.jp
Hiroyuki Kurihara, Representative Director, President
Masahide Nishiura, Director , Senior Executive Officer,
Inquiries:
TEL: 03-3862-2591
General Manager, Finance and Accounting Headquarters
Scheduled date of the Annual General Meeting of Shareholders:June 22, 2018
Scheduled payment date of dividend:
June 6, 2018
Scheduled filing date of the Annual Securities Report:
June 25, 2018
Supplementary materials for the annual financial results:
Yes
Investor conference for the annual financial results:
Yes (for security analysts and institutional investors)(Millions of yen rounded down)

1. Consolidated results for the fiscal year ended March 31, 2018 (April 1, 2017 to March 31, 2018)(1) Consolidated operating results(% change compared with the same period of previous fiscal year (YoY))
Profit attributable toOperating income
Ordinary income
owners of parent

Net sales
Millions of yen%

Millions of yen%

Fiscal Year 2017
254,077
16.5
5,665
Fiscal Year 2016
218,003(4.4)
4,659(Note) Comprehensive income
Fiscal Year 2017: 4,488 million yen (33.9%),
Basic earnings
Diluted earnings perper share
share
Yen

21.6
(15.9)

Millions of yen

6,396
4,833

%

Millions of yen

32.3(13.6)

%

4,481
3,367

33.1
(8.3)

Fiscal Year 2016: 3,353 million yen (232.7%)
Ordinary income
Operating income
Return on equity
to net assets
to net sales%%

Fiscal Year 2017173.98－
4.4
3.9
Fiscal Year 2016116.54－3.0
3.0(Reference) Equity in earnings (losses) of non-consolidated subsidiaries and affiliates:
Fiscal Year 2017: － million yen,
Fiscal Year 2016: － million yen

Yen

%

2.2
2.1

(2) Consolidated financial position
Total assets

Net assets tototal assets

Net assets

Millions of yen

Net assets
per share

Millions of yen%

Yen

94,331
109,51957.9
67.8

3,852.59
3,897.82

March 31, 2018
162,866
March 31, 2017
161,620(Reference) Shareholders equity:
March 31, 2018: 94,331 million yen,March 31, 2017: 109,519 million yen(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal Year 2017
Fiscal Year 2016

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at the end of the period

Millions of yen

Millions of yen

Millions of yen

Millions of yen(19,268)(1,843)634(816)(6,580)(9,223)

13,471
38,692

2. Dividends(Record date)Fiscal Year
2016
Fiscal Year2017
Fiscal Year2018
(Forecast)End of
1Q

Dividends per share (Yen)End of
End of
End of
2Q
3Q
4Q

Annual(Millions of yen rounded down unless otherwise stated)
Dividends to net
Dividends
Payout ratio
assets ratio(Full fiscal year)(consolidated) %(consolidated) %

－

70.00

－

70.00

140.00

3,985

120.1

3.6

－

75.00

－

75.00

150.00

3,694

86.2

3.9

－

75.00

－

75.00

150.0091.8

Fiscal Year 2016

Interim dividend breakdown: 45 yen (ordinary), 25 yen (special)

Fiscal Year 2016

Year-end dividend breakdown: 45 yen (ordinary), 25 yen (special)

Fiscal Year 2017

Interim dividend breakdown: 50 yen (ordinary), 25 yen (special)

Fiscal Year 2017

Year-end dividend breakdown: 50 yen (ordinary), 25 yen (special)

Fiscal Year 2018

Interim dividend breakdown (forecast): 50 yen (ordinary), 25 yen (special) or more

Fiscal Year 2018

Year-end dividend breakdown (forecast): 50 yen (ordinary), 25 yen (special) or more

3. Forecast of results for the fiscal year ending March 31, 2019 (April 1, 2018 to March 31, 2019)(% figures for the full fiscal year represent year-on-year (YoY) increase or decrease,
while % figures for the interim period are the % change compared with the same period of the previous fiscal year (YoY).)
Profit attributable to
Basic earnings
Net sales
Operating income
Ordinary income
owners of parent
per share
Millions of yen

Interim period
Full fiscal year

% Millions of yen

127,500
258,000

3.1
1.5

2,700
6,000

%

Millions of yen(16.3)
5.9

2,500
5,600

%

Millions of yen(21.7)(12.4)

1,800
4,000

%

Yen

(19.2)(10.7)

73.51
163.36* Notes(1) Transfer of major subsidiaries during term (transfer of specified subsidiaries in line with changes in the consolidated range): NoneNew:

― (Company name:)

Excluded:― (Company name:)(2) Changes in accounting principles, changes in accounting estimates, and restatements
1) Changes in accordance with revisions to accounting standards and related practices of accounting principles: None
2) Changes in items of accounting principles other than 1) above: None
3) Changes in accounting estimate: None
4) Restatement: None
(3) Number of shares issued and outstanding (common shares)
1. Total number of shares issued andoutstanding (including treasury

March 31, 2018

28,500,000 shares

March 31, 2017

31,500,000 shares

March 31, 2018

4,014,862 shares

March 31, 2017

3,402,428 shares

March 31, 201825,757,913 shares

March 31, 2017

28,900,516 sharesshares) at the period-end
2. Total number of treasury shares atthe period-end

3. Average number of shares
outstanding during the period(Reference) Overview of non-consolidated operating results
1. Non-consolidated results for the fiscal year ended March 31, 2018 (April 1, 2017 to March 31, 2018)(1) Non-consolidated operating results(% change compared with the same period of previous fiscal year (YoY))
Net sales
Millions of yen

Fiscal Year 2017
Fiscal Year 2016%

173,834
142,588

21.9
(1.8)

Basic earnings
per share
Fiscal Year 2017
Fiscal Year 2016

Operating income
Millions of yen

1,574
1,435

Diluted earnings per
share

Yen

Yen

111.8775.70－－

Ordinary income%

9.7(36.5)

Millions of yen

3,816
2,968

Profit%28.6(22.7)

Millions of yen

2,881
2,187

%

31.7
(11.1)

(2) Non-consolidated financial position
Total assets

Net assets tototal assets

Net assets

Net assets
per share

Millions of yen

Millions of yen%

Yen

March 31, 2018
128,185
March 31, 2017
129,577(Reference) Shareholders equity:
March 31, 2018: 73,629 million yen,

73,62990,06857.4
69.5

3,007.12
3,205.56

March 31, 2017: 90,068 million yen

This earnings report is not subject to audits of certified public accountants or auditing corporations.
Caution with respect to forward-looking statements(Note on forward-looking statements)
The estimates referred in this report are based on the information available as of the date of this release. Ryosan Company
Limited (Ryosan) does not promise the realization of the estimates in this report. The actual results may significantly differ
from the estimates due to a variety of factors. For details on the conditions that form the assumptions used for earnings
forecasts and notes on using earnings forecasts, please refer to appendix page 5, “1. Summary of Operating Results, etc.
(6) Future Prospects.”

○Table of contents of the appendix
1. Summary of Operating Results, etc.................................................................................................................................................. 2(1) Summary of Operating Results for Fiscal Year 2017 ............................................................................................................ 2(2) Summary of Financial Position for Fiscal Year 2017............................................................................................................ 2(3) Summary of Cash Flows for Fiscal Year 2017 ...................................................................................................................... 3(4) Business Risks ...................................................................................................................................................................... 4(5) Basic Policy Regarding the Allocation of Profits / Dividends for Fiscal Year 2017 and Fiscal Year 2018 ........................... 5(6) Future Prospects .................................................................................................................................................................... 5
2. Basic Approach to Selection of Accounting Standards .................................................................................................................... 6
3. Consolidated Financial Statements and Main Notes ...................................................................................................................... 7(1) Consolidated Balance Sheet .................................................................................................................................................. 7(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ............................................... 9(Consolidated Statement of Income) .................................................................................................................................. 9(Consolidated Statement of Comprehensive Income) ......................................................................................................... 10(3) Consolidated Statements of Changes in Net Assets .............................................................................................................. 11(4) Consolidated Statements of Cash Flows ............................................................................................................................... 13(5) Notes on Consolidated Financial Statements ........................................................................................................................ 14(Notes Regarding Going Concern) ..................................................................................................................................... 14(Notes Regarding Substantial Changes in Shareholders’ Equity) ....................................................................................... 14(Segment Information)........................................................................................................................................................ 14(Per Share Information) ...................................................................................................................................................... 16(Important Subsequent Events) ........................................................................................................................................... 16
4. Other ................................................................................................................................................................................................ 17(1) New Orders ......................................................................................................................................................................... 17(2) Geographical Segment Information .................................................................................................................................... 17-1-

1. Summary of Operating Results, etc.
(1) Summary of Operating Results for Fiscal Year 2017
1) Overview
During the fiscal year under review, the global economy on the whole continued growing at a sluggish pacesupported by strong investment and consumption despite fluctuation in financial markets. The U.S. maintained
autonomous growth primarily driven by its own domestic demand, Europe experienced continuing strong
economic expansion, and emerging countries including China also remained steady. Also in Japan, there were anumber of favorable signs including the recovery trends in consumer spending due to improvements in theemployment and income environment and the increase of corporate earnings, etc., all showing that the economy
continued on a moderate growth track.
In the electronics industry, in-vehicle electrical equipment, FA equipment and information and communicationequipment remained mainly solid.
Fiscal Year 2017 is the final fiscal year for the 9th Medium-Term Business Plan (Fiscal Year 2014-Fiscal Year2017) through which Ryosan is pursuing business model shifts, by coping with changes in its businessenvironment, and striving for growth in a sustainable manner. To realize this plan, Ryosan is focusing onreestablishing a growth path and improving capital efficiency.
As a result, Ryosan reported net sales of 254,077 million yen (up 16.5% from the previous year), operating
income of 5,665 million yen (up 21.6%), ordinary income of 6,396 million yen (up 32.3%), and profit attributableto owners of parent of 4,481 million yen (up 33.1%) for the consolidated fiscal year under review.
2) Business Segment Informationa. Semiconductors
Ryosan sells system LSIs, discrete semiconductors and memory, and develops system LSIs on a contract basis.
In this consolidated fiscal year, Ryosan’s businesses for in-vehicle electrical equipment, FA equipment andinformation and communication equipment remained brisk, and net sales were 145,708 million yen (up 16.3%
from the previous year), and operating income was 2,625 million yen (up 5.5%) despite the recording of loss onabandonment of inventories and valuation loss on inventories.
b. Electronic Components
Ryosan sells electromechanical components, display devices and power supplies. In this consolidated fiscal
year, due to an expansion of sales in Ryosan’s business for consumers in addition to steady performance of
Ryosan’s businesses for in-vehicle electrical equipment and FA equipment, net sales were 81,984 million yen (up18.5% from the previous year), and operating income was 2,812 million yen (up 44.5%).
c. Electronic Equipment
Ryosan sells systems equipment and facilities equipment. In this consolidated fiscal year, thanks to theacquisition of large orders by the in-vehicle electrical equipment business, net sales were 26,384 million yen (up12.2% from the previous year), and operating income was 606 million yen (down 12.6%) due to changes in the
product mix.
The aforementioned amounts do not include consumption and other taxes.
(2) Summary of Financial Position for Fiscal Year 2017
1) Assets
Total assets increased by 1,246 million yen to 162,866 million yen compared with March 31, 2017. This ismainly because cash and deposits declined by 25,297 million yen, while merchandise and finished goods increased
by 16,248 million yen, notes and accounts receivable - trade by 7,038 million yen, and accounts receivable - otherby 3,274 million yen.
2) Liabilities
Total liabilities increased by 16,434 million yen to 68,535 million yen compared with March 31, 2017. This ismainly because short-term loans payable increased by 12,539 million yen.
-2-3) Net Assets
Net assets decreased by 15,188 million yen to 94,331 million yen compared with March 31, 2017. This ismainly because profit attributable to owners of parent was 4,481 million yen, while payment of dividends andpurchase of treasury shares amounted to 3,824 million yen and 15,852 million yen respectively. The ratio of net
assets to total assets fell from 67.8% at the end of the previous fiscal year to 57.9% as of March 31, 2018.
(3) Summary of Cash Flows for Fiscal Year 2017
As of March 31, 2018, cash and cash equivalents decreased by 25,221 million yen compared with the end of theprevious fiscal year, to 13,471 million yen.
1) Net cash provided by (used in) operating activities
Regarding cash flow from operating activities in this consolidated fiscal year, funds in total decreased by 19,268
million yen. This is because inventories increased by 16,264 million yen, accounts receivable - trade by 7,243
million yen, and accounts receivable - other by 3,251 million yen, even though profit before income taxes was
6,465 million yen. In the net cash provided by (used in) operating activities in the previous consolidated fiscal year,
there was a decrease of funds by 1,843 million yen.
2) Net cash provided by (used in) investing activities
Regarding cash flow from investing activities in this consolidated fiscal year, funds in total increased by 634
million yen due to factors such as 1,036 million yen in proceeds from sales of investment securities. In the net cash
provided by (used) in investing activities in the previous consolidated fiscal year, there was a decrease of funds by
816 million yen.
3) Net cash provided by (used in) financing activities
Regarding cash flow from financing activities in this consolidated fiscal year, funds in total decreased by 6,580
million yen due to 15,852 million yen in purchase of treasury shares and 3,820 million yen in cash dividends paid,
despite an increase in short-term loans payable of 13,275 million yen. In the net cash provided by (used in)financing activities in the previous consolidated fiscal year, there was a decrease of funds by 9,223 million yen.
(Reference) Trends in cash flow-related indicators
Fiscal Year2013
Net assets to total assets (%)
Net assets to total assets (%)(Market capitalization basis)
Cash flow to Interest-bearing
Liabilities (Years)
Interest coverage ratio (Times)

Fiscal Year2014

Fiscal Year
2015

Fiscal Year
2016

Fiscal Year
2017

70.2

72.2

73.5

67.8

57.9

40.5

54.2

52.8

58.2

57.7

10.4

1.2

2.3

_

_

9.5

67.2

34.5

_

_

Net assets to total assets: Net assets / Total assets
Net assets to total assets (Market capitalization basis): Market capitalization / Total assets
Cash flow to Interest-bearing liabilities: Interest-bearing liabilities / Cash flow
Interest coverage ratio: Cash flow / Interest expense*All indicators have been calculated from consolidated financial figures.
*Market capitalization was calculated based on the number of shares issued and outstanding less treasury shares.
*Cash flow refers to cash flows from operating activities as shown on the consolidated statements of cash flows.
*Interest-bearing liabilities comprise all debt on which interest was paid in the liabilities section of the consolidatedbalance sheet. Interest expense represents interest paid as shown on the consolidated statements of cash flows.

-3-(4) Business Risks
Ryosan, its business performance, share price, and financial position, are subject to a variety of potential risks,some of which are detailed briefly as follows.
Forward-looking statements contained in this section represent judgments of Ryosan’s management based on
information available as of the end of Fiscal Year 2017 (March 31, 2018).
1) Sudden Changes in the Economic Environment
Ryosan’s consolidated revenues are influenced by demand from the set makers who are its customers. This demand isnecessarily impacted by changes in economic conditions in those countries and regions in which Ryosan’s principal
clients operate. As a result, Ryosan’s performance and its financial position can be deteriorated in the event of economic
downturn and a resulting slowdown in demand in its principal markets, such as Japan, Asia and other regions.
2) Contracts with Suppliers
Ryosan has concluded agency agreements with several suppliers inside and outside Japan. Ryosan has maintained
good business relations with these suppliers, but if it becomes difficult to continue these agreements due to therestructuring of suppliers’ businesses, including M&A etc., and the revision of sales channel strategies, this may cause
adverse effects on the business performance and financial status of Ryosan.
3) Exchange Rate Fluctuation
Ryosan sells products across a number of regions including Japan, Asia and other countries. In preparing consolidated
financial statements, sales, expenses, assets and liabilities, denominated in foreign currencies are translated into yen as of
the Ryosan’s balance sheet date. For these items, the value after conversion into yen may be affected by currency
exchange rates at conversion even if the value in local currencies does not change. In principle, appreciation of the yen
against major currencies impacts negatively on Ryosan’s performance, while a weak yen impacts favorably. As a result,
Ryosan’s consolidated operating results and financial position are subject to fluctuations in foreign exchange rates.
4) Overseas Business Risk
Ryosan does not operate in Japan alone. It also operates overseas, mainly in Asia. As a result, it is exposed to thefollowing risks. The materialization of any of the following risks could adversely affect Ryosan’s operating results and its
financial position.
a. Unforeseen changes in statutory and regulatory requirements and adverse changes in tax requirementsb. Inadequate and insufficient local infrastructure in the countries in which Ryosan operatesc. Development of adverse political factors
d. Social unrest as the result of war, acts of terrorism etc.
5) Capital Market Volatility
As a part of its business activities, Ryosan holds shares of certain financial institutions, customers and suppliers, and istherefore susceptible to stock price fluctuations. Ryosan does not, however, adopt specific methods as a hedge against
movements in stock prices. Accordingly, Ryosan’s performance and financial position are subject to substantial changes
in stock markets.
6) Liability for Retirement Benefits
Ryosan calculates retirement benefit expenses and the liability for retirement benefits using certain assumptions andan expected rate of return applicable to Ryosan’s pension plan assets for actuarial projections. In the event that theactual obligation differs from the projected obligation or there is a change in the assumptions leading to the calculationof the projected obligation, the difference in retirement benefit expenses and the liability for retirement benefits are
accrued and amortized over a generally accepted period. As a result, any significant decline in the discount rate andexpected rate of return applicable to Ryosan’s pension plan assets can impact its performance and financial position.
7) Natural Disaster
The suspension of sales due to facility damage or power or water supply shortages that were caused by natural
disasters such as earthquakes or typhoons or by accidental disasters such as fire may adversely affect the businessperformance and financial position of Ryosan. Also, if partners suffer damages and Ryosan cannot purchase or sellmerchandise, business performance may be adversely affected.
-4-(5) Basic Policy Regarding the Allocation of Profits / Dividends for Fiscal Year 2017 and Fiscal Year 2018
1) Basic Policy Regarding the Allocation of Profits
Ryosan recognizes that the return of profits to shareholders is an important business priority, and so is working
to increase basic earnings per share. Ryosan's fundamental policy aims for consolidated dividend payout ratio of
50% or more, so as to continue high dividend payout in profits returned to shareholders. In addition, Ryosan willcontinue to purchase treasury shares.
2) Dividends for Fiscal Year 2017 and Fiscal Year 2018
At the meeting of the Board of Directors held on May 11, 2018, a resolution was made to distribute the year-end
dividend for the consolidated fiscal year under review of 75 yen per share, consisting of an ordinary dividend of 50
yen per share and a special dividend of 25 yen per share. As a result, the annual dividend per share including theinterim dividend will be 150 yen.
Ryosan is forecasting ordinary dividend payment of 100 yen per share in its full fiscal year for the fiscal year
ending March 31, 2019 (consisting of an interim ordinary dividend of 50 yen per share and a fiscal year-end
ordinary dividend of 50 yen per share) plus a special dividend of 50 yen or more per share, resulting in the annual
dividend per share of 150 yen or more.
(6) Future Prospects
1) Projected Operating Results
Looking ahead, although there is uncertainty coming from trade policies of the relevant countries, continuous
moderate growth is expected for the overall global economy.
In the electronics industry, in addition to solid in-vehicle equipment and FA equipment markets, evolution of
new technologies such as IoT (Internet of Things) and AI (Artificial Intelligence) is bringing significant change tothe market.
In this backdrop, Ryosan formulated the 10th Medium-Term Business Plan for the next three years from the
Fiscal Year 2018. According to the 10th Medium-Term Business Plan, Ryosan will realize growth in a sustainable
manner by quickly responding to changes in the business environment and promoting system coordination inelectronics.
On this basis, operating forecasts for the fiscal year ending March 31, 2019 are as follows:

Net sales
Operating income
Ordinary income
Profit attributable to owners ofparentMillions of yen
258,000
6,000
5,600

YoY change [%]Increase 1.5
Increase 5.9
Decrease 12.4

4,000

Decrease 10.7

2) Estimates by Business Segment
a. Semiconductors
In this business, in addition to expectations for continuous robust business for in-vehicle electrical equipment,
mainly due to the turning of Edal Electronics in Hong Kong that Ryosan acquired in March 2017 into a
consolidated subsidiary, net sales are forecast to be 154,500 million yen (up 6.0% from the previous year), andoperating income is expected to rise to 3,450 million yen (up 31.4%).
b. Electronic Components
In this business, it is expected that the businesses for in-vehicle electrical equipment and FA equipment willcontinue to be solid. However, since a rebound from transient profit in the previous year, etc. is expected, net
sales are forecast to be 79,500 million yen (down 3.0% from the previous year), and operating income isexpected to decline to 2,700 million yen (down 4.0%).

-5-

c. Electronic Equipment
In this business, due to the ending of information and communication equipment business to a large customer,
net sales are forecast to decrease to 24,000 million yen (down 9.0% from the previous year), and operating
income is expected to decline to 350 million yen (down 42.3%).

2. Basic Approach to Selection of Accounting Standards
For the time being, Ryosan will prepare its consolidated financial statements in accordance with Japanese GAAP,
out of consideration for issues such as comparability from period to period and comparability with other companies.
Ryosan will appropriately address matters regarding IFRS adoption, taking into account prevailing circumstances
in Japan and overseas.

-6-

3. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheet(Millions of yen)
Fiscal Year Ended
March 31, 2017
(As of March 31, 2017)

Fiscal Year Ended
March 31, 2018
(As of March 31, 2018)ASSETS
Current assets
Cash and deposits

38,845

13,547

Notes and accounts receivable - trade

68,49975,538Merchandise and finished goods

27,75344,009Work in process

13

6

Securities

300

－

6,974

10,249Deferred tax assets

348

707

Other

205

242

Allowance for doubtful accounts

(64)

(42)

142,876

144,257

Buildings and structures

8,324

8,024

Accumulated depreciation(4,926)(4,855)

Buildings and structures, net

3,398

3,168

Land

6,428

6,189

Lease assets

947

931

Accumulated depreciation

(408)

(354)

Leased assets, net

539

576

Other

2,396

2,404

Accumulated depreciation(2,237)(2,248)158

155

10,525

10,0901,110

903

Investment securities

4,983

5,310

Deferred tax assets

163

197

Other

2,095

2,238

Allowance for doubtful accounts

(136)

(132)

Total investments and other assets

7,107

7,614

18,74318,608

161,620

162,866

Accounts receivable - otherTotal current assets
Non-current assets
Property, plant and equipment

Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets

Total non-current assets
Total assets-7-

(Millions of yen)
Fiscal Year Ended
March 31, 2017
(As of March 31, 2017)

Fiscal Year Ended
March 31, 2018
(As of March 31, 2018)

LIABILITIESCurrent liabilities
Accounts payable - trade34,45836,355

Short-term loans payable

11,41923,959148

164

Accounts payable - other

1,499

1,714

Accrued expenses

1,047

1,362

Income taxes payable

390

1,598

Other

131

183

49,09565,337

Lease obligations

450

475

Deferred tax liabilities

505

856

Net defined benefit liability

1,890

1,782

Asset retirement obligations

34

31

Other

125

52

3,005

3,197

52,101

68,535

Capital stock

17,69017,690Capital surplus

19,114

19,114Retained earnings

81,21972,740Treasury shares(10,498)(17,215)

Total shareholders’ equity

107,525

92,329

1,540

1,923

Deferred gains or losses on hedges

(0)

(0)

Foreign currency translation adjustment

416

52

Remeasurements of defined benefit plans

36

25

1,993

2,001

Total net assets

109,519

94,331

Total liabilities and net assets

161,620

162,866

Lease obligations

Total current liabilities
Non-current liabilities

Total non-current liabilities
Total liabilities
NET ASSETS
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total accumulated other comprehensive income-8-(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)(Millions of yen)

Net sales
Cost of Sales
Gross Profit
Selling, general and administrative expenses
Packing and transportation expenses
Provision of allowance for doubtful accounts
Directors' compensations
Salaries and allowances
Bonuses
Retirement benefit expenses
Welfare expenses
Depreciation
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Rent income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Commission for purchase of treasury shares
Miscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on sales of investment securities
Loss on valuation of golf membership
Loss on quality compensation
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent-9-

Fiscal Year Ended Mar. 31, 2017

Fiscal Year Ended Mar. 31, 2018

(Apr. 1, 2016 to Mar. 31, 2017)(Apr. 1, 2017 to Mar. 31, 2018)

218,003
199,680
18,322254,077
233,732
20,344

832
29
395
3,966
993
428
912
575
5,529
13,663
4,659

983
(21)
424
4,084
1,254
402
997
596
5,954
14,678
5,665

59
82
18
31
170
363

36
74
919
31
127
1,189

150
13
25
189
4,833

390
31
37
459
6,396

－
－
－

66
31
97

24
0
3
57
86
4,746
1,020
358
1,378
3,367
3,367

27
－
0
－
27
6,465
2,170
(185)
1,984
4,481
4,481

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

ProfitOther 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(Comprehensive income attributable to)Comprehensive income attributable to owners of parent- 10 -

Fiscal Year Ended Mar. 31, 2017

Fiscal Year Ended Mar. 31, 2018

(Apr. 1, 2016 to Mar. 31, 2017)(Apr. 1, 2017 to Mar. 31, 2018)

3,367

4,481

165
3
(230)

382
(0)
(364)

46

(10)

(14)
3,353

7
4,488

3,353

4,488

(3) Consolidated Statements of Changes in Net Assets
Fiscal Year Ended Mar. 31, 2017 (Apr. 1, 2016 to Mar. 31, 2017)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
periodTotal
shareholders’equityCapital surplus

Retained earnings

Treasury shares

19,114

82,669(6,119)17,690113,354(4,817)(4,817)

3,367

3,367
(4,378)(4,378)－－(1,450)(4,378)(5,828)

17,69019,114

81,219(10,498)

107,525

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period1,375

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income

646

(9)

2,008

(3)

Total net
assets

115,362(4,817)
3,367(4,378)
165

3

(230)

46

(14)

(14)

165

3

(230)

46

(14)

(5,843)

1,540

(0)

416

36

1,993

109,519- 11 -

Fiscal Year Ended Mar. 31, 2018 (Apr. 1, 2017 to Mar. 31, 2018)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesRetirement of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
periodCapital surplus

Retained earnings

Treasury shares

19,114

81,219(10,498)

17,690Total
shareholders’equity107,525(3,824)(3,824)

4,481

4,481
(15,852)(15,852)(9,134)

9,134

－

－

－

(8,478)(6,717)(15,195)

17,69019,11472,740(17,215)

92,329

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesRetirement of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period1,540

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income

416

36

1,993

(0)

Total net
assets109,519(3,824)
4,481(15,852)
－
382

(0)

(364)

(10)

7

7

382

(0)

(364)

(10)

7

(15,188)

1,923

(0)

52

25

2,001

94,331- 12 -

(4) Consolidated Statements of Cash Flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Interest and dividend incomesInterest expenses
Loss (gain) on sales of property, plant and equipment
Other loss (gain)
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Loss (gain) on sales of investment securities
Decrease (increase) in accounts receivable - other
Increase (decrease) in other assets and liabilities
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into restricted deposits
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of intangible assets
Purchase of shares of subsidiaries and associates
Proceeds from liquidation of subsidiaries
Purchases of investment securities
Proceeds from sales of investment securities
Payments for investments in capital
Collection of loans receivable
Purchase of insurance funds
Proceeds from cancellation of insurance funds
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of lease obligations
Purchase of treasury shares
Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period- 13 -

Fiscal Year Ended Mar. 31, 2017

Fiscal Year Ended Mar. 31, 2018

(Apr. 1, 2016 to Mar. 31, 2017)(Apr. 1, 2017 to Mar. 31, 2018)

4,746
597
24
27
(133)
(142)
150
－
556
(3,941)(5,641)
9,559－(6,271)
232
(233)
137
(148)
(1,598)(1,843)

6,465
617
27
(21)
(108)
(110)
390
(66)
(809)
(7,243)(16,264)
1,972(31)(3,251)387(18,046)
121
(387)
(955)
(19,268)

(152)
(99)
62
(278)
－
(610)
－
－
42
－
0
(91)
312
(816)

－
(130)
440
(64)
－
－
－
(245)
1,036
(299)
0
(104)
－
634

189
(233)
(4,378)(4,801)(9,223)(192)(12,075)
50,76813,275(183)(15,852)(3,820)(6,580)(6)(25,221)
38,692

38,692

13,471

(5) Notes on Consolidated Financial Statements(Notes Regarding Going Concern)
Not applicable.
(Notes Regarding Substantial Changes in Shareholders’ Equity)
I. Purchase of treasury shares
Based on a corporate resolution made at the Board Meeting on May 12, 2017, Ryosan purchased
3,612,000 treasury shares. As a result, treasury shares increased by 15,850 million yen in the consolidated
fiscal year under review.
II. Retirement of treasury shares
Based on a corporate resolution made at the Board Meeting on May 12, 2017, Ryosan retired 3,000,000
treasury shares effective as of May 31, 2017. As a result, retained earnings and treasury shares in the
consolidated fiscal year under review both decreased by 9,134 million yen respectively.
(Segment Information)(a) Segment Information
1. Overview of Reporting Segments
Ryosan’s reporting segments are made up of those created from financial information sorted by business segment andthose evaluated by the President periodically.
Ryosan has set up its business headquarters at Ryosan's head office for each article of merchandise and product, andRyosan is expanding business activities by having each business headquarters formulate comprehensive strategies forthe products that they handle, for both within Japan and overseas.
Therefore, regarding the reporting segments for its business headquarters, Ryosan lists “Semiconductors,” “Electronic
components,” and “Electronic equipment.”
The main products of each business segment are as follows:
Semiconductors:
Memory, system LSIs, discrete semiconductors
Electronic components:
Display devices, power supplies, electromechanical components
Electronic equipment:
Systems equipment, facilities equipment
2. Information Concerning Sales and Income or Loss Amount by Reporting Segment
For the consolidated fiscal year ended March 31, 2017
(April 1, 2016 to March 31, 2017)(Millions of yen, figures less than ¥1 million have been omitted)

Reporting Segment
Electronicequipment

Adjusted
amount(Note 1)

Amounts shownon consolidated
statement ofincome(Note 2)

Semiconductors

Electronic
components

125,310

69,172

23,520218,003―

218,003

―

―

―

―

―

―

125,310
2,488

69,172
1,945

23,520694

218,003
5,128

―
(469)

218,003
4,659

Total

Net sales
Sales to external customers
Internal sales or exchange
between segments
Total
Segment income (loss)

Notes:
1. The adjusted amount of minus 469 million yen represents corporate expenses (mainly general and administrative
expenses) which are not allocated to the reporting segment.
2. Segment income has been adjusted with operating income in consolidated statement of income.
3. Segment asset is not shown in this reporting segment as it is not subject to President’s performance evaluation.

- 14 -

For the consolidated fiscal year ended March 31, 2018
(April 1, 2017 to March 31, 2018)(Millions of yen, figures less than ¥1 million have been omitted)

Reporting Segment
Electronicequipment

Adjusted
amount(Note 1)

Amounts shownon consolidated
statement ofincome(Note 2)

Semiconductors

Electronic
components

145,708

81,984

26,384254,077―

254,077

―

―

―

―

―

―

145,708
2,625

81,984
2,812

26,384606

254,077
6,045

―
(379)

254,077
5,665

Total

Net sales
Sales to external customers
Internal sales or exchange
between segments
Total
Segment income (loss)

Notes:
1. The adjusted amount of minus 379 million yen represents corporate expenses (mainly general and administrative
expenses) which are not allocated to the reporting segment.
2. Segment income has been adjusted with operating income in consolidated statement of income.
3. Segment asset is not shown in this reporting segment as it is not subject to President’s performance evaluation.
(b) Related Information
1. Information on products and services
As in the Reporting Segment
2. Information by region(1) Sales
For the consolidated fiscal year ended March 31, 2017
(April 1, 2016 to March 31, 2017)(Millions of yen)Japan
129,679

China
42,025

Asia
38,645

Other
7,652

Total
218,003Note:
Net sales are on the basis of customer location and classified by country or region.
For the consolidated fiscal year ended March 31, 2018
(April 1, 2017 to March 31, 2018)(Millions of yen)Japan
144,423

China
57,372

Asia
43,254

Other
9,026

Total
254,077

Note:
Net sales are on the basis of customer location and classified by country or region.
(2) Property, plant and equipment
This information is not presented as the amount of property, plant and equipment in Japan constitutes more than 90%of the total amount of property, plant and equipment on the consolidated balance sheet.

- 15 -

(Per Share Information)(Yen unless otherwise stated)
Fiscal Year 2016
(April 1, 2016 to March 31, 2017)

Item

Fiscal Year 2017
(April 1, 2017 to March 31, 2018)

Net assets per share
3,897.82
Basic earnings per share
116.54(Notes) 1. Information on diluted earnings per share is not presented because there are no latent shares.
2. Basis for calculation

3,852.59
173.98(1) Net assets per share(Millions of yen unless otherwise stated)
Item

Fiscal Year 2016
(As of March 31, 2017)

Total of net assets
Amount to be deducted from the total of net assets(Of which non-controlling interests)
Closing net assets relating to common shares
Number of common shares as of end of term used in
the calculation of net assets per share (thousand shares)

Fiscal Year 2017
(As of March 31, 2018)

109,519－(－)
109,519

94,331－(－)
94,331

28,09724,485(2) Basic earnings per share(Millions of yen unless otherwise stated)
Fiscal Year 2016
Fiscal Year 2017
(April 1, 2016 to(April 1, 2017 toMarch 31, 2017)
March 31, 2018)

Item
Basic earnings per share
Profit attributable to owners of parent
Amount not attributable to common shareholders
Profit attributable to owners of parent relating tocommon shares
Average number of common shares outstanding
during the term (thousand shares)(Important Subsequent Events)
Not applicable.

- 16 -

3,367
－

4,481
－

3,367

4,481

28,90025,757

4. Other(1) New Orders(Millions of yen, figures less than 1 million yen have been omitted)
Fiscal Year 2016

Fiscal Year 2017

(April 1, 2016 to March 31, 2017)(April 1, 2017 to March 31, 2018)

Semiconductors

134,477

152,512

Electronic components

70,95787,341

Electronic equipment

24,77029,017

Total

230,205

268,871(2) Geographical Segment Information
Fiscal Year 2016, the fiscal year ended March 31, 2017
(April 1, 2016 to March 31, 2017)(Millions of yen, figures less than ¥1 million have been omitted)
Eliminations
Japan
Asia
Other
Total
Consolidated
or corporate
Sales:
131,258
79,198
7,546(1) Sales to external customers(2) Internal sales or exchange
11,330489
6
between segments
Total
142,588
79,687
7,553
Segment income
1,709
2,316
243
Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia:
Hong Kong, Thailand, China, Korea and others
Other:
United States and others

218,003―

218,00311,825(11,825)―

229,829
4,269(11,825)389

218,003
4,659

Fiscal Year 2017, the fiscal year ended March 31, 2018
(April 1, 2017 to March 31, 2018)(Millions of yen, figures less than ¥1 million have been omitted)
Eliminations
Consolidated
Japan
Asia
Other
Total
or corporate
Sales:
155,142
90,025
8,909(1) Sales to external customers(2) Internal sales or exchange
18,691158
5
between segments
Total
173,834
90,183
8,915
Segment income
1,897
3,096
265
Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia:
Hong Kong, Thailand, China, Korea and others
Other:
United States and others- 17 -

254,077―

254,077

18,856(18,856)―

272,933
5,259(18,856)406

254,0775,665