October 31, 2022

First Half Earnings Report for Fiscal Year 2022, Ending March 31, 2023
[Japanese Standards] (Consolidated)
Company name:Securities code:
Representative:

Ryosan Company, Limited
Stock listing: Prime Market, Tokyo Stock Exchange
8140
URL https://www.ryosan.co.jp/
Kazuhiko Inaba, Representative Director, President
Hideo Yuasa, Executive Officer,
Inquiries:
TEL: +81-3-3862-2591
General Manager, Finance and Accounting Headquarters
Scheduled filing date of quarterly earnings report:
November 14, 2022
Scheduled payment date of dividend:
November 29, 2022
Supplementary materials for the quarterly financial results:
Yes
Investor conference for the quarterly financial results:
Yes (for security analysts and institutional investors)(Millions of yen rounded down)

1. Consolidated results for the first half of fiscal year 2022 (April 1, 2022 to September 30, 2022)(1) Consolidated operating results (Cumulative)(% change compared with the same period of the previous fiscal year (YoY))
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
First Half, Fiscal Year 2022

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

167,731

35.0

9,007

119.8

6,587

62.3

4,475

53.8

4,097

227.2

4,059

142.3

2,909

95.9

First Half, Fiscal Year 2021
124,247
27.8(Note) Comprehensive income
First Half, Fiscal Year 2022: 8,179 million yen (194.9%)
First Half, Fiscal Year 2021: 2,773 million yen (108.6%)
Basic earnings per
share

Diluted earnings per
share

Yen

First Half, Fiscal Year 2022
First Half, Fiscal Year 2021

Yen

191.02124.17――(2) Consolidated financial position
Total assets

Net assets

Net assets to total assets

Millions of yen

Millions of yen%

September 30, 2022
205,332
March 31, 2022
190,548(Reference) Shareholders’ equity
September 30, 2022: 101,271 million yen
March 31, 2022: 94,724 million yen

101,271
94,724

49.3
49.7

Net assets per shareYen

4,322.03
4,043.20

2. Dividends
Dividends per share (Yen)End of 1Q

End of 2Q

Yen

End of 3Q

Yen

Fiscal Year 2021―
Fiscal Year 2022―
Fiscal Year 2022 (Forecast)(Note) Revision of dividend forecasts: None

End of 4Q

Yen

50.00
75.00

Annual
Yen

Yen

―

70.00

120.00―75.00

150.003. Forecast of results for the fiscal year 2022 (April 1, 2022 to March 31, 2023)
Net sales
Millions of yen

Operating income(% figures represent year-on-year increase or decrease)
Basic earnings
Ordinary income
Profitper share% Millions of yen%

Millions of yen%

Millions of yen%

Yen

Full fiscal year
300,000
10.0
13,000(Note) Revision of financial results forecasts: None

46.8

10,000

23.7

7,000

30.6

298.79

* Notes(1) Transfer of major subsidiaries during the scope of consolidation of these six months ended September 30, 2022 (transfer of specified
subsidiaries in line with changes in the consolidated range): NoneNew:

－ (Company name:)

Excluded:－ (Company name:)(2) Application of accounting procedures specific to preparing quarterly financial statements: None
(3) 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 estimates: None
4) Restatements: None
(4) Number of shares issued and outstanding (common shares)
1. Total number of shares issued andoutstanding (including treasury shares) at theperiod-end:

September 30,
2022

2. Total number of treasury shares at the

September 30,

period-end:

2022

3. Average number of shares outstanding
during the period (Cumulative total for thequarterly consolidated period)First Half, Fiscal
Year 2022

25,000,000 shares

March 31, 2022

25,000,000 shares

1,568,443 shares

March 31, 2022

1,571,817 shares

23,428,101 sharesFirst Half, Fiscal
Year 2021

23,428,443 sharesThis quarterly consolidated earnings report is not subject to the quarterly review by certified public accountants or auditing
corporations.
Caution with respect to 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 3, "1. Qualitative Information Regarding this Quarterly Statement (3) Qualitative Information
Concerning Consolidated Forecast and Other Future Predictions."

○Table of contents of the appendix
1. Qualitative Information Regarding this Quarterly Statement ........................................................................................................... 2(1) Qualitative Information Concerning Consolidated Operating Results .................................................................................. 2(2) Qualitative Information Concerning Consolidated Financial Position .................................................................................. 3(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions .................................................. 3
2. Consolidated Quarterly Financial Statements and Main Notes ........................................................................................................ 4(1) Consolidated Quarterly Balance Sheet .................................................................................................................................. 4(2) Consolidated Quarterly Statement of Income and Consolidated Quarterly Statement of Comprehensive Income ............... 6
Consolidated Quarterly Statement of Income
Scope of Consolidation of this First Half Period ........................................................................................................ 6
Consolidated Quarterly Statement of Comprehensive Income
Scope of Consolidation of this First Half Period ........................................................................................................ 7(3) Consolidated Quarterly Statements of Cash Flows ............................................................................................................... 8(4) Notes Regarding Consolidated Quarterly Financial Statements ............................................................................................ 9(Notes Regarding Going Concern) ........................................................................................................................................ 9(Notes Regarding Substantial Changes in Shareholders’ Equity).......................................................................................... 9(Segment Information) .......................................................................................................................................................... 9-1-

1. Qualitative Information Regarding this Quarterly Statement(1) Qualitative Information Concerning Consolidated Operating Results1) Overview
During the consolidated first half of fiscal year 2022 (April 1 to September 30, 2022), sentiment about the global
economy braced for a downturn. Although the impact of the COVID-19 pandemic eased, the protraction of the crisisin Ukraine and intermittent lockdowns in China spurred rising commodity prices and aggravated confusion in supply
chains. Meanwhile, the United States Federal Reserve raised policy rates.
Similar trends impacted the Japanese economy. Although moves toward recovery continued, concerns about issues
such as loss of economic momentum overseas, supply restrictions and a steep drop in the value of the Japanese yen
continued to demand vigilance.
In the electronics industry, Ryosan’s main field, uncertainty mounted. A squeeze in supplies of semiconductors
and electronic components continued to impact production activities, while demand was strong in some areas but
weak in others.
Against the macroeconomic background described above, Ryosan expanded sales across a diverse range of fields.
Although production adjustments by the automotive sector had an impact, Ryosan served market needs to secureadvance supplies of products. The weakening yen also had a favorable impact on sales. In the consolidated first half
under review, net sales leapt to 167,731 million yen (up 35.0% from the same period of the previous fiscal year).
Operating income more than doubled to 9,007 million yen (up 119.8%), lifted by increased revenue and measures torein in selling, general and administrative expenses.
Ordinary income soared to 6,587 million yen (up 62.3%), despite appropriation of foreign exchange losses due torevaluation of foreign-currency-denominated liabilities. Profit attributable to owners of parent jumped to 4,475
million yen (up 53.8%).
2) Business Segment Information
a. Devices
During the consolidated first half under review, sales increased year-on-year, paced by products for the industrial
machinery sector.Net sales rose to 146,271 million yen (up 33.4% from the same period of the previous fiscal year).
Operating income more than doubled to 8,278 million yen (up 139.0%).
b. Solutions
Large projects in products for the communications sector contributed. Net income lifted to 21,460 million yen(up 46.7% from the same period of the previous fiscal year), while operating income surged to 1,167 million yen(up 76.2%).

-2-

(2) Qualitative Information Concerning Consolidated Financial Position
As of September 30, 2022, total assets increased by 14,783 million yen compared with the end of the previous
fiscal year, to 205,332 million yen.
Also, net assets increased by 6,547 million yen compared with the end of the previous fiscal year, to 101,271
million yen, with the ratio of net assets to total assets being 49.3%.
Overview of Cash Flows
As of September 30, 2022, cash and cash equivalents increased by 1,843 million yen compared with the end of theprevious fiscal year, to 13,860 million yen.
Net cash provided by (used in) operating activities
Regarding cash flow from operating activities in this consolidated first half period, funds in total increased by
2,011 million yen. Profit before income taxes was 6,588 million yen and inventories and accounts receivable–otherincreased by 4,357 million yen and 3,207 million yen, respectively, while notes and accounts receivable–trade
increased by 12,787 million yen. For a comparison, in net cash from operating activities in the same period of theprevious fiscal year, funds had decreased by 5,134 million yen.
Net cash provided by (used in) investing activities
Regarding cash flow from investing activities in this consolidated first half period, funds in total decreased by
154 million yen due to such factors as purchase of intangible assets. For a comparison, in net cash from investing
activities in the same period of the previous fiscal year, funds had decreased by 172 million yen.
Net cash provided by (used in) financing activities
Regarding cash flow from financing activities in this consolidated first half period, funds in total decreased by
259 million yen. Commercial papers decreased by 1,999 million yen and cash dividends paid amounted to 1,634
million yen, while short-term loans payable increased by 3,462 million yen. For a comparison, in net cash fromfinancing activities in the same period of the previous fiscal year, funds had increased by 1,121 million yen.
(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions
The forecast of consolidated business results is unchanged from the forecast published on October 25, 2022.

-3-

2. Consolidated Quarterly Financial Statements and Main Notes(1) Consolidated Quarterly Balance Sheet(Millions of yen)
Fiscal Year Ended
March 31, 2022
(As of March 31, 2022)

Second Quarter of the Fiscal
Year Ending March 31, 2023
(As of September 30, 2022)

ASSETS
Current assets
Cash and deposits

12,066

13,918Notes and accounts receivable –trade

92,574

109,041

Inventories

52,647

51,105

Accounts receivable – other

18,721

16,974

Other

1,094

1,057

Allowance for doubtful accounts

(276)

(626)

176,827

191,470

Buildings and structures, net

2,563

2,526

Land

5,178

5,180

Leased assets, net

394

349

Other, net

201

207

8,338

8,264

985

1,079

Investment securities

3,001

3,021

Deferred tax assets

295

365

Other

1,206

1,248

Allowance for doubtful accounts

(106)

(118)

Total investments and other assets

4,397

4,517

13,72013,861

190,548205,332

Total current assets
Non-current assets
Property, plant and equipment

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

Total non-current assets
Total assets-4-

(Millions of yen)
Fiscal Year Ended
March 31, 2022
(As of March 31, 2022)

Second Quarter of the Fiscal
Year Ending March 31, 2023
(As of September 30, 2022)

LIABILITIESCurrent liabilities
Accounts payable – trade42,97644,301

Short-term loans payable

38,07946,958Commercial papers

4,999

2,999

Lease obligations

224

184

Accounts payable – other

3,469

3,488

Accrued expenses

1,930

873

Income taxes payable

1,798

2,115

Provision for bonuses

-

712

391

386

93,869102,020

Lease obligations

202

190

Deferred tax liabilities

597

835

Net defined benefit liability

1,068

924

Asset retirement obligations

23

23

Other

62

64

1,953

2,039

95,823104,060

Capital stock

17,69017,690Capital surplus

19,11419,060Retained earnings

59,58662,422

Treasury shares(6,534)(6,473)

Total shareholders’ equity

89,857

92,700

1,257

1,239

1

(1)

Foreign currency translation adjustment

3,634

7,362

Remeasurements of defined benefit plans

(25)

(29)

Total accumulated other comprehensive income

4,867

8,571

Total net assets

94,724

101,271

Total liabilities and net assets

190,548205,332

Other
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
Deferred gains or losses on hedges-5-(2) Consolidated Quarterly Statement of Income and Consolidated Quarterly Statement of Comprehensive Income(Consolidated Quarterly Statement of Income)(Scope of Consolidation of this First Half Period)(Millions of yen)First Half of the Fiscal Year
Ended March 31, 2022

First Half of the Fiscal YearEnding March 31, 2023

(April 1, 2021 to Sept. 30, 2021)(April 1, 2022 to Sept. 30, 2022)

124,247
112,621
11,625
7,528
4,097

167,731
150,158
17,573
8,565
9,007

18
37
13
27
45
142

14
40
26
145
24
116
367

76
4
86
13

388
2,387
11

180
4,059

2,787
6,587

1
1

0
0

19
19
4,041
1,132
2,909
2,909

6,588
2,113
4,475
4,475

Net sales
Cost of Sales
Gross Profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Commission fee
Rent income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity method
Miscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of golf memberships
Total extraordinary income
Extraordinary losses
Impairment loss
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to owners of parent-6-

(Consolidated Quarterly Statement of Comprehensive Income)(Scope of Consolidation of this First Half Period)(Millions of yen)First Half of the Fiscal Year
Ended March 31, 2022

First Half of the Fiscal YearEnding March 31, 2023

(April 1, 2021 to Sept. 30, 2021)(April 1, 2022 to Sept. 30, 2022)

2,909

4,475

(85)
1
(44)
(6)
(135)
2,773

(17)
(2)
3,727
(3)
3,704
8,179

2,773

8,179

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-7-

(3) Consolidated Quarterly 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 income
Interest expenses
Share of (profit) loss of entities accounted for using equity
methodLoss (gain) on sales of property, plant and equipment
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Decrease (increase) in accounts receivable - other
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchases of investment securities
Decrease (increase) in time deposits
Payments into time deposits
Proceeds from sales of membership
Proceeds from distribution of investment in partnerships
Purchase of insurance funds
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase (decrease) in commercial papers
Net increase (decrease) in short-term loans payable
Repayments of lease obligations
Purchase of treasury shares
Cash dividends paid
Proceeds from sale of treasury shares
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-8-First Half of the Fiscal Year
Ended March 31, 2022

First Half of the Fiscal YearEnding March 31, 2023

(April 1, 2021 to Sept. 30, 2021)(April 1, 2022 to Sept. 30, 2022)

4,041
319
19
(73)
(144)
(56)
76

6,588
305
307
(156)
(54)
388

86

(26)

(239)
(11,292)
3,081
(72)
2
(4,250)
55
(77)
(861)
(5,134)(0)(12,787)
4,357(1,318)
3,207
3,170
3,980
54
(363)
(1,660)
2,011

(79)
(31)
(15)
48
3
4
(102)
(172)

(26)
0
(113)
(15)
(8)
8
(154)

2,851
(92)
(0)
(1,637)
1,121(53)(4,239)20,636
16,396(1,999)
3,462
(82)
(68)
(1,634)
63
(259)
246
1,843
12,016
13,860(4) Notes Regarding Consolidated Quarterly Financial Statements(Notes Regarding Going Concern)
None(Notes Regarding Substantial Changes in Shareholders’ Equity)
None(Segment Information)
I. Information Concerning Sales and Income or Loss Amount by Reporting Segment
Consolidated First Half of the Fiscal Year Ended March 31, 2022
(April 1, 2021 to September 30, 2021)(Millions of yen)
Reporting Segment

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

Total

Adjusted amount(Note 1)

Amounts shown on
consolidated quarterly
statement of income (Note 2)

Devices

Solutions

109,617

14,629124,247―

124,247

―

―

―

―

―

109,617
3,463

14,629662

124,247
4,126

―
(28)

124,247
4,097(Notes)1. The adjusted amount of minus 28 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 quarterly statement of income.

Consolidated First Half of the Fiscal Year Ending March 31, 2023
(April 1, 2022 to September 30, 2022)(Millions of yen)
Reporting Segment

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

Total

Adjusted amount(Note 1)

Amounts shown on
consolidated quarterly
statement of income (Note 2)

Devices

Solutions

146,271

21,460167,731―

167,731

―

―

―

―

―

146,271
8,278

21,4601,167

167,731
9,446

―
(438)

167,731
9,007(Notes)1. The adjusted amount of minus 438 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 quarterly statement of income.

-9-II. Information Concerning Sales and Income or Loss Amount by Sales Destination
Fiscal year 2021, first half of the fiscal year ended March 31, 2022
(April 1, 2021 to September 30, 2021)(Millions of yen)

Japan

Asia

67,27351,685

5,288

10,957200

1478,2301,759

51,886
2,088

5,303
118

Eliminations
or corporate

Consolidated

124,247―

124,247

11,172(11,172)―

135,420
3,966(11,172)131

124,247
4,097

Other

Total

Net sales
Sales to external customers
Internal sales or exchange between
segments
Total
Segment income(Notes)1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions covered:
Asia: Hong Kong, China, Thailand, South Korea, etc.
Other: United States, etc.

Fiscal year 2022, first half of the fiscal year ending March 31, 2023
(April 1, 2022 to September 30, 2022)(Millions of yen)

Eliminations
or corporate

Consolidated

167,731―

167,73131

10,222(10,222)

―

5,383
281

177,953
8,699(10,222)308

167,731
9,007

Japan

Asia

Other

87,31575,063

5,352

9,833

357

97,1484,882

75,421
3,534

Total

Net sales
Sales to external customers
Internal sales or exchange between
segments
Total
Segment income(Notes)1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions covered:
Asia: Hong Kong, China, Thailand, Singapore, etc.
Other: United States, etc.

III. Information Concerning Sales by Region
Fiscal year 2021, first half of the fiscal year ended March 31, 2022
(April 1, 2021 to September 30, 2021)(Millions of yen)Japan
Net sales
Ratio to consolidated net sales (%)

China

63,40751.0

33,438
26.9

Asia
21,716
17.5

Other
5,685
4.6

Consolidated
124,247
100.0(Note) Net sales are on the basis of customer location and classified by country or region.

Fiscal year 2022, first half of the fiscal year ending March 31, 2023
(April 1, 2022 to September 30, 2022)(Millions of yen)Japan
Net sales
Ratio to consolidated net sales (%)

China

85,60251.0

45,57727.2

Asia
31,01818.5(Note) Net sales are on the basis of customer location and classified by country or region.

- 10 -

Other
5,533
3.3

Consolidated
167,731100.0