July 29, 2011

First Quarter Earnings Report for Fiscal 2011, Ending March 31, 2012
[Japanese Standards] (Consolidated)
Company name:Securities code:
Representative:
Inquiries:

Ryosan Company, Limited
Stock listing: First Section, Tokyo Stock Exchange
8140(URL http://www.ryosan.co.jp)
Naoto Mimatsu, President
Harumitsu Seki
Senior Managing Director and General Manager
Financing and Accounting Headquarters
TEL: +81-3-3862-2591
Scheduled filing date of quarterly earnings reportAugust 12, 2011
Scheduled payment date of dividend:―
Supplementary materials for the quarterly financial results:
No
Investor conference for the quarterly financial results
No(Millions of yen rounded down)

1. Consolidated results for the first quarter of fiscal 2011 (April 1, 2011 to June 30, 2011)(1) Consolidated operating results (Cumulative)(% figures represent year-on-year increase or decrease)
Net sales

Operating income

Millions of yen% Millions of yen

Ordinary income% Millions of yen

Net income% Millions of yen%

First Quarter, Fiscal 2011
48,306(4.5)
540(65.9)
852(55.1)
535(57.7)First Quarter, Fiscal 2010
50,580
31.8
1,584
373.0
1,901
270.0
1,264
538.7
(Note) Comprehensive income
First Quarter, Fiscal 2011: 125 million yen ((76.3)%)
First Quarter, Fiscal 2010: 529 million yen ( - %)Net income
Net income perper shareshare after dilution
First Quarter, Fiscal 2011
First Quarter, Fiscal 2010

Yen

Yen

15.54
36.70

－
－

(2) Consolidated financial position
Total assets
June 30, 2011
March 31, 2011
(Reference) Shareholders equity:
June 30, 2011:

Net assets tototal assets

Net assets

Net assets
per share

Millions of yen

Millions of yen%

Yen

157,237
163,479

116,520
117,78074.0
72.0

3,377.59
3,413.87

116,409 million yen,March 31, 2011: 117,660 million yen

2. Dividends
Dividends per share (Yen)(Record date)

End of 1Q

Fiscal 2010
Fiscal 2011
Fiscal 2011 (Forecast)(Note) Revision of dividend forecasts: No

End of 2Q－－

End of 3Q

End of 4Q

Annual

40.00

－

40.00

80.00

20.00

－

40.00

60.00

3. Forecast of results for the fiscal year ending March 31, 2012 (April 1, 2011 to March 31, 2012)(% figures for the full fiscal year represent year-on-year increase or decrease,% figures for the interim period are the increase / (decrease) for the corresponding period of the previous fiscal year)
Net income per
Net sales
Operating income
Ordinary income
Net income
shareMillions of yen%

Millions of yen

Interim period
105,000(1.4) 1,100
Full Fiscal Year
230,000
6.4
3,500(Note) Revision of financial results forecasts: No%

Millions of yen%

Millions of yen%(69.2)(42.4)

1,500
4,200

(62.2)(39.0)

800
2,500(68.5)(39.5)

Yen

23.21
72.54

4. Other(1) Transfer of major subsidiaries during the scope of consolidation of this quarter (transfer of specified subsidiaries in line withchanges in the consolidated range): No(2) Applying accounting procedures specific to preparing quarterly financial statements: Yes(3) Restatement of changes in accounting principles/changes and revisions in accounting estimate
1. Changes in accordance with revisions to accounting standards and related practices of accounting principles: No
2. Changes in items of accounting principles other than 1. above1: No
3. Changes in accounting estimate: No
4. Restatement of revisions: No(4) Number of shares issued and outstanding (Common stock)
1. Total number of shares issued and outstanding (including treasury stock) as of the period-end:
June 30, 2011: 34,500,000 shares

March 31, 2011: 34,500,000 shares

2. Total number of treasury stock as of the period-end:
June 30, 2011: 34,752 shares

March 31, 2011: 34,704 shares

3. Average number of shares outstanding during the period (Cumulative total for the quarterly consolidated period)
June 30, 2011: 34,465,253 shares

June 30, 2010: 34,465,971 shares

Indication regarding the implementation status of the quarterly review procedure
Earnings report for this first quarter is not the subject of a quarterly review procedure based on the Financial Instruments and ExchangeAct, and at the point in time when these earnings report was disclosed, review procedures for quarterly financial statements based on the
Financial Instruments and Exchange Act had not been completed.
Caution with respect to forward-looking statements:
Please refer to “(3) Qualitative information and Other Matters Concerning Consolidated Forecasts for the Fiscal Year Ending March 31,
2012” on page 3 of this document for outlook for the next fiscal period.

○Table of contents of the appendix
1. Qualitative Information Regarding this Quarterly Statement........................................................................................................... 2(1) Qualitative Information and Other Matters Concerning Consolidated Operating Results for the First Quarter of
Fiscal 2011............................................................................................................................................................................. 2(2) Qualitative Information and Other Matters Concerning Consolidated Financial Position for the End of the First
Quarter of Fiscal 2011............................................................................................................................................................ 2(3) Qualitative Information and Other Matters Concerning Consolidated Forecasts for the Fiscal Year Ending
March 31, 2012...................................................................................................................................................................... 3
2. Items Regarding Summary Information (Others)............................................................................................................................. 4(1) Transfer of Major Subsidiaries during the Scope of Consolidation of this Quarter ............................................................. 4(2) Applying Accounting Procedures Specific to Preparing Quarterly Financial Statements...................................................... 4(3) Restatement of Changes in Accounting Principles/Changes and Revisions in Accounting Estimate .................................... 4
3. Consolidated Quarterly Financial Statements .................................................................................................................................. 5(1) Consolidated Quarterly Balance Sheets ................................................................................................................................ 5(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Comprehensive Statements of Income
Consolidated Quarterly Statements of Income
Scope of Consolidation of this First Quarter ................................................................................................................. 7
Consolidated Quarterly Comprehensive Statements of Income
Scope of Consolidation of this First Quarter ................................................................................................................. 8(3) Notes Regarding Going Concern .......................................................................................................................................... 9(4) Segment Information ............................................................................................................................................................ 9(5) Notes Regarding Substantial Changes in Shareholders’ Equity............................................................................................ 10
4. Supplementary Information............................................................................................................................................................. 11(1) Geographical Segment Information ...................................................................................................................................... 11(2) Overseas Sales ...................................................................................................................................................................... 11-1-

1. Qualitative Information Regarding this Quarterly Statement(1) Qualitative Information and Other Matters Concerning Consolidated Operating Results for the First
Quarter of Fiscal 2011
1) Overview
The global economy in the first quarter (April 1-June 30, 2011) experienced a temporary slowdown of production
activity in various countries due to the Great East Japan Earthquake in March. However, assisted by the strong
economic growth of emerging countries such as China, a trend towards gradual recovery was generally maintained.
Moreover, the electronics industry, in which we are engaged, maintained growth due to the rapid expansion of new
product groups such as smartphones and tablet PCs and the steady movement of the FA market in addition tomarket expansion in emerging countries .
To increase sales under such circumstances, the Ryosan Group has powerfully promoted “strengthening ourapproach to developing countries with rapid growth (China and India)”, “strengthening our business with
globalizing Japanese customers” and “strengthening our presence in growth fields (car electronics, social
infrastructure, etc.)”, and has also strived towards “improving profitability.”
However, the Ryosan Group reported decreases in both revenues and earnings, with net sales of 48,306 million yen(down 4.5% from the same period previous year), operating income of 540 million yen (down 65.9%), ordinary
income of 852 million yen (down 55.1%) and net income of 535 million yen (down 57.7%) for results of the firstquarter under review because, in addition to the Great East Japan Earthquake, sales of DRAMs for PCs andelectromechanical components for game consoles, etc. decreased.
2) Business Segment Informationa. Semiconductors
At Ryosan Group, we sell memories, system LSIs and discrete semiconductors, and develop system LSIs. In thisconsolidated first quarter, sales of DRAMs for PCs and system LSIs for flat screen TVs, etc. decreased, with net
sales of 29,081 million yen (down 2.2% from the same period previous year), and operating income came to 453
million yen (down 63.8%).
b. Electronic Components
At Ryosan Group, we sell display devices, power supplies and electromechanical components. In thisconsolidated first quarter, sales of electromechanical components for game console, etc. decreased, with net salesof 12,971 million yen (down 10.0% from the same period previous year) and operating income of 453 million
yen (down 26.4%).
c. Electronic Equipment
At Ryosan Group, we sell systems equipment and facilities equipment. In this consolidated first quarter, sales ofsystem equipment for in-vehicle electrical components, etc. decreased, with net sales of 4,730 million yen (down
2.6% from the same period previous year) and operating income of 91 million yen (down 24.8%).
d. Ryosan Products
At Ryosan Group, we produce and sell heat sinks (devices that dissipate the heat generated by semiconductors). In
this consolidated first quarter, sales of heat sinks for flat screen TVs etc. decreased, with net sales of 1,522 million
yen (down 3.7% from the same period previous year) and operating income of 131 million yen (down 27.0%).

(2) Qualitative Information and Other Matters Concerning Consolidated Financial Position for the End of theFirst Quarter of Fiscal 2011
At the end of this first quarter, total assets had decreased by 6,241 million yen, as compared with the level at the endof the previous fiscal year, and came to 157,237 million yen.
Also, net assets decreased by 1,259 million yen, as compared with the level at the end of the previous fiscal year,
and came to 116,520 million yen, with the ratio of net assets to total assets being 74.0%.
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(3) Qualitative Information and Other Matters Concerning Consolidated Forecasts for the Fiscal Year Ending
March 31, 2012
1) Overall Business Performance Forecast
Looking ahead, the global economy will likely continue to experience a gradual recovery trend supported by the
expansion of domestic demand in emerging countries. In addition, the Japanese economy is expected to recoverfrom the devastating effects of the Great East Japan Earthquake in the latter half of the year.
Against the backdrop of this forecast operating environment, Ryosan Group will promote and pursue two key
initiatives: "Construction of a management structure strong enough to survive in the global age" and "Exploitationof emerging markets to support future growth."
In terms of performance, an increase in sales is expected from the "commercial right transfer of Renesas
Electronics' business", etc. despite "the influence of the temporary slowdown in production due to the Great East
Japan Earthquake.” However, a revenue increase and an earnings decrease are expected on the profit front becauseof business cost increases from "strengthening sales and marketing to smoothly launch the business to betransferred”, etc.

Full-year business performance forecasts are as follows.
Net sales 230,000 million yen (up 6.4% from the previous period)
Operating income 3,500 million yen (down 42.4% from the previous period)
Ordinary income 4,200 million yen (down 39.0% from the previous period)
Net income 2,500 million yen (down 39.5% from the previous period)-3-2) Business Segment Performance Forecast
a. Semiconductors
In the semiconductor business, sales of system LSIs for in-vehicle electrical components and drivers ICs forliquid crystal displays, etc. are expected to increase, net sales are forecast to be 142,000 million yen (up 14.7%
from the previous period), and operating income is expected to be 2,800 million yen (down 39.0% from theprevious period) due to increases, etc. in sales and administrative expenses.
b. Electronic Components
In the electronic components business, sales of electromechanical components for in-vehicle electricalcomponents and mobile phones, etc. are expected to decrease, net sales are forecast to be 58,000 million yen(down 3.4% from the previous period), and operating income is expected to be 1,800 million yen (down 19.9%
from the previous period).
c. Electronic Equipment
In the electronic equipment business, sales of system equipment for in-vehicle electrical components, etc. are
expected to decrease, net sales are forecast to be 24,000 million yen (down 7.2% from the previous period), andoperating income is expected to be 500 million yen (down 44.9% from the previous period).
d. Ryosan Products
In Ryosan products, sales of heat sinks for flat screen TVs, etc. are expected to decrease, net sales are forecast to
be 6,000 million yen (down 7.3% from the previous period), and operating income is expected to be 400 million
yen (down 17.8% from the previous period).

2. Items Regarding Summary Information (Others)(1) Transfer of major subsidiaries during the scope of consolidation of this quarter
None(2) Applying accounting procedures specific to preparing quarterly financial statements
Simplified procedure partially applied for items with little effect.
(3) Restatement of changes in accounting principles/changes and revisions in accounting estimate
None

-4-

4. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Millions of yen)
Fiscal Year Ended
March 31, 2011
(As of March 31, 2011)

Fiscal Year Ending
March 31, 2012
(As of June 30, 2011)ASSETS
Current assets
Cash and deposits

43,24028,377

Trade notes and accounts receivable

68,70965,062－

9,999

Inventories

22,963

26,666

Accrued income

4,472

3,223

Income tax refund receivable

10－

Deferred tax assets

400

231

Other current assets

288

457

Allowance for doubtful accounts

(63)

(111)

140,021

133,907

Buildings and structures (net)

4,645

4,592

Land

8,126

8,125

Lease assets (net)

255

229

Other fixed assets (net)

654

602

13,682

13,549701

758

Investment securities

3,156

3,078

Long-term deposits

3,000

3,000

Deferred tax assets

1,571

1,600

Other

2,447

2,420

Allowance for doubtful accounts

(975)

(949)

Allowance for loss on investments

(127)

(127)

Total Investments and other assets

9,072

9,022

23,457

23,330163,479

157,237

Marketable securities

Total current assets
Fixed assets
Property, plant and equipment

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

Total fixed assets
Total assets-5-

(Millions of yen)
Fiscal Year Ended
March 31, 2011
(As of March 31, 2011)

Fiscal Year Ending
March 31, 2012
(As of June 30, 2011)

LIABILITIESCurrent liabilities
Trade notes and accounts payable

31,21926,474

Short-term bank loans

7,621

8,902

Lease obligations

116

110

Accrued expenses

995

459

Reserve for bonuses－

338

Accrued income taxes

1,402

129

Other current liabilities

1,745

1,715

Total current liabilities

43,10038,130

194

169

2,327

2,357

Other long-term liabilities

76

59

Total long-term liabilities

2,597

2,585

45,69840,716

Common stock

17,69017,690Additional paid-in capital

19,114

19,114Retained earnings

83,60682,763

Treasury stock

(85)

(85)

120,325

119,482

Net unrealized gain on other marketable securities

295

249

Gain (loss) on deferred hedges(6)3Foreign currency translation adjustments(2,954)(3,326)

Total other accumulated comprehensive incomes(2,665)(3,073)120

111

Total net assets

117,780

116,520

Total liabilities and net assets

163,479

157,237

Long-term liabilities
Lease obligations
Employees’ retirement benefits

Total liabilities
NET ASSETS
Shareholder’s equity

Total shareholders’ equity
Other accumulated comprehensive incomes

Minority interests-6-(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Comprehensive Statements ofIncome(Consolidated Quarterly Statements of Income)(Scope of Consolidation of this First Quarter)(Millions of yen)First Quarter of the Fiscal YearNet sales
Cost of Sales
Gross Profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Gain on foreign exchangeManagement consultation fee
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expense
Miscellaneous expenses
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on reversal of allowance for doubtful accounts
Total extraordinary gains
Extraordinary losses
Loss on sales and disposal of property, plant and equipment
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before Minority interest in income
Minority interests in income
Net income-7-First Quarter of the Fiscal Year

Ended Mar. 31, 2011

Ending Mar. 31, 2012

(Apr. 1, 2010 to Jun. 30, 2010)(Apr. 1, 2011 to Jun. 30, 2011)

50,58045,917
4,663
3,079
1,584

48,30644,378
3,927
3,387
540

26
125
78
13
89
333

22
133
91
－
105
352

11
4
16
1,901

38
1
39
852

79
79

－
－

1
1
1,979
713
1,265
0
1,264

1
1
851
315
536
1
535

(Consolidated Quarterly Comprehensive Statements of Income)(Scope of Consolidation of this First Quarter)(Millions of yen)First Quarter of the Fiscal Year

Income before Minority interest in income
Other comprehensive income
Net unrealized gain on other marketable securities
Gain (loss) on deferred hedges
Foreign currency translation adjustments
Total other comprehensive income
Comprehensive Incomes(Details)
Comprehensive incomes relating to shareholders of parental company
Comprehensive incomes relating to minority shareholders-8-First Quarter of the Fiscal Year

Ended Mar. 31, 2011

Ending Mar. 31, 2012

(Apr. 1, 2010 to Jun. 30, 2010)(Apr. 1, 2011 to Jun. 30, 2011)

1,265

536

(211)
(21)
(503)

(46)
10
(375)

(735)
529

(411)
125

534
(5)

127
(2)

(3) Notes Regarding Going Concern
Not applicable.
(4) Segment Information
I. For the consolidated first quarter of the fiscal year ended March 31, 2011
(April 1, 2010 to June 30, 2010)
1. Overview of our Reporting Segments
Ryosan Group’s reporting segments are created from financial information sorted by business segment, and the Chief
Executive Officer periodically conducts performance evaluations.
Ryosan Group has set up business headquarters at our head office for each merchandises and products, and we expand
our business activities by having each business headquarter formulates comprehensive strategies for the products thatthey handle, for both within Japan and overseas.
Therefore, with our business headquarters serving as our foundation, Ryosan Group has four reporting segments:“Semiconductors”, “Electronic components”, “Electronic equipment” and “Ryosan products”.
Main products of each business segment are as follows:
Semiconductors:
Memories, system LSIs, discrete semiconductors
Electronic components:
Display devices, power supplies, electromechanical parts
Electronic equipment:
Systems equipment, facilities equipment
Ryosan products:
Heat sinks (devices that dissipate the heat generated by semiconductors)
2. Information Concerning Sales and Income or Loss Amount by Reporting Segment(Millions of yen, figures less than ¥1 million have been omitted)

Reportable Segment
Adjusted
amountConsolidated
quarterly
incomestatement
amount50,580―50,580

―

―

―

―

1,580
179

50,580
2,168

―
(584)

50,580
1,584

Semiconductors

Electronic
components

Electronicequipment

Ryosanproducts

Total

29,723

14,417

4,859

1,580

―

―

―

29,723
1,251

14,417
615

4,859
121

Sales and operating income
Sales:
Sales to external
Customers
Internal sales between
segments, or exchange
Total
Segment income (loss)(Notes)1. The adjustment of -584 million yen to segment earnings represents corporate expenses that are not allocated to eachreportable segment.
2. Segment income has been adjusted with operating income in consolidated quarterly statements of income.

-9-II. For the consolidated first quarter of the fiscal year ending March 31, 2012
(April 1, 2011 to June 30, 2011)
1. Overview of our Reporting Segments
Ryosan Group’s reporting segments are created from financial information sorted by business segment, and the Chief
Executive Officer periodically conducts performance evaluations.
Ryosan Group has set up business headquarters at our head office for each merchandises and products, and we expand
our business activities by having each business headquarter formulates comprehensive strategies for the products thatthey handle, for both within Japan and overseas.
Therefore, with our business headquarters serving as our foundation, Ryosan Group has four reporting segments:“Semiconductors”, “Electronic components”, “Electronic equipment” and “Ryosan products”.
Main products of each business segment are as follows:
Semiconductors:
Memories, system LSIs, discrete semiconductors
Electronic components:
Display devices, power supplies, electromechanical parts
Electronic equipment:
Systems equipment, facilities equipment
Ryosan products:
Heat sinks (devices that dissipate the heat generated by semiconductors)
2. Information Concerning Sales and Income or Loss Amount by Reporting Segment(Millions of yen, figures less than ¥1 million have been omitted)

Reportable Segment
Adjusted
amountConsolidated
quarterly
incomestatement
amount48,306―48,306

―

―

―

―

1,522
131

48,306
1,128

―
(588)

48,306
540

Semiconductors

Electronic
components

Electronicequipment

Ryosanproducts

Total

29,081

12,971

4,730

1,522

―

―

―

29,081453

12,971
453

4,730
91

Sales and operating income
Sales:
Sales to external
Customers
Internal sales between
segments, or exchange
Total
Segment income (loss)(Notes)1. The adjustment of -588 million yen to segment earnings represents corporate expenses that are not allocated to eachreportable segment.
2. Segment income has been adjusted with operating income in consolidated quarterly statements of income.

(5) Notes Regarding Substantial Changes in Shareholders’ Equity
Not applicable.

- 10 -

4. Supplementary Information(1) Geographical Segment Information
Fiscal 2011, first quarter of the fiscal year ending March 31, 2012
(April 1, 2011 to June 30, 2011)(Millions of yen, figures less than ¥1 million have been omitted)

Japan
I Sales and operating income
Sales:(1) Sales to external
Customers(2)Internal sales between
segments, or exchange
Total
Operating income

Asia

Total

Eliminations
or corporate

Consolidated

32,522

15,78348,306―48,306

2,239

152

2,392

(2,392)―

34,762326

15,935
162

50,698488(2,392)52

48,306540

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia :
Hong Kong, China, Taiwan, Thailand , Singapore and others(2) Overseas Sales
Fiscal 2011, first quarter of the fiscal year ending March 31, 2012
(April 1, 2011 to June 30, 2011)(Millions of yen, figures less than ¥1 million have been omitted)
Asia
Total
16,691
16,691―
48,306
34.6
34.6

Overseas sales
Consolidated net sales
Ratio of overseas sales to consolidated net sales (%)

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:Asia:
China, Hong Kong, Korea, and Thailand and others
3. Overseas sales represent the total of export sales of the parent company and sales of its consolidated subsidiaries outside Japan(excluding intra-group sales).

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