January 29, 2014

Third Quarter Consolidated Earnings Report for Fiscal 2013, Ending March 31, 2014
[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, Representative Director and President
Hidekazu Sano
Director and General Manager
Financing and Accounting Headquarters
TEL: +81-3-3862-2591
Scheduled filing date of quarterly earnings reportFebruary 14, 2014
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 three quarters of fiscal 2013(April 1, 2013 to December 31, 2013)(1) Consolidated operating results (Cumulative)(% figures represent year-on-year increase or decrease)
Net sales

Operating income

Millions of yen

FirstThree Quarters, Fiscal 2013
First Three Quarters, Fiscal 2012

Ordinary income

Net income%

Millions of yen%

Millions of yen%

Millions of yen%

174,034

11.6

3,790

36.7

3,595

10.1

2,303

15.8

155,926

(2.6)

2,772

14.9

3,264

2.7

1,989

39.1
(Note) Comprehensive income
First Three Quarters, Fiscal 2013:4,738million yen (81.0%) First Three Quarters, Fiscal 2012:2,618million yen (540.4%)
Net income
Net income perper shareshare after dilution

First Three Quarters, Fiscal 2013
First Three Quarters, Fiscal 2012

Yen

Yen

72.70
59.44

－
－

(2) Consolidated financial position
Total assets

Net assets tototal assets

Net assets

Millions of yen

Millions of yen

Net assets
per share%

December 31, 2013
172,019
118,281
March 31, 2013
160,220
116,722(Reference) Shareholders equity: December 31, 2013: 118,281 million yen, March 31, 2013:

Yen

68.8
72.9
116,722 million yen

3,759.28
3,595.42

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

End of 1Q

End of2Q－－

Fiscal 2012
Fiscal 2013
Fiscal 2013 (Forecast)(Note) Revision of dividend forecasts: No

End of 3Q

End of4Q
－
－

30.00
30.00

Annual

30.00

60.00

30.00

60.00

3. Forecast of results for the fiscal year ending March 31, 2014(April 1, 2013 to March 31, 2014)
Net sales
Millions of yen

Operating income%

Millions of yen

Full Fiscal Year
225,000
8.9
5,000(Note) Revision of financial results forecasts: No(% figures represent year-on-year increase or decrease)
Net income per
Ordinary income
Net income
share

%

Millions of yen%

Millions of yen

%

36.1

5,000

21.6

3,100

10.1

Yen

98.00

※ Notes(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: No(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: No
2. Changes in items of accounting principles other than 1. above: 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:
December 31, 2013: 31,500,000 shares

March 31, 2013: 34,500,000 shares

2. Total number of treasury stock as of the period-end:
December 31, 2013: 36,141shares

March 31, 2013: 2,035,794 shares

3. Average number of shares outstanding during the period(Cumulative total for the quarterly consolidated period)First three quarters,fiscal 2013: 31,689,605sharesFirst three quarters, fiscal 2012: 33,464,471 shares

Indication regarding the implementation status of the quarterly review procedure
This quarterly consolidated earnings report is not subject to the quarterly review procedures pursuant to the Financial Instruments andExchange Act. As of the disclosure of this earnings report, the procedures for reviewing quarterly financial statements pursuant to the
Financial Instruments and Exchange Act are in progress.
Caution with respect to forward-looking statements:
The estimates referred in this report were made based on the information available as of the date of this release. The Company does notpromise the realization of the estimates in this report. The Actual results could significantly differfrom the estimates due to a variety offactors. For details on the conditions that form the assumptions used for earnings forecastsand notes on using earnings forecasts, pleaserefer to appendix page 2, “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 ConcerningConsolidated Operating Results .................................................................................... 2(2)Qualitative Information ConcerningConsolidated Financial Position .................................................................................... 2(3)Qualitative Information Concerning Consolidated Forecast and Other Future Predictions ................................................... 2
2.Items Regarding Summary Information (Notes) ............................................................................................................................... 3(1) Transfer of Major Subsidiaries during the Scope of Consolidation of this Quarter ............................................................... 3(2) Applying Accounting Procedures Specific to Preparing Quarterly Financial Statements...................................................... 3(3) Changes in Accounting Principles, Changes in Accounting Estimates and Restatements ..................................................... 3
3. Consolidated Quarterly Financial Statements .................................................................................................................................. 4(1) Consolidated Quarterly Balance Sheets ................................................................................................................................ 4(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Comprehensive Statements of Income ............ 6
Consolidated Quarterly Statements of Income
Scope of Consolidation of this First Three Quarters ...................................................................................................... 6
Consolidated Quarterly Comprehensive Statements of Income
Scope of Consolidation of this First Three Quarters ...................................................................................................... 7(3)Notes Regarding Consolidated Quarterly Financial Statements ............................................................................................. 8(Notes Regarding Going Concern) ........................................................................................................................................ 8(Notes Regarding Substantial Changes in Shareholders’ Equity) ......................................................................................... 8(Segment Information) .......................................................................................................................................................... 8
4. Supplementary Information ............................................................................................................................................................. 9-1-

1. Qualitative Information Regarding this Quarterly Statement(1) Qualitative Information Concerning Consolidated Operating Results1) Overview
During the first three quarters under review (April 1, 2013 to December 31, 2013), the economic environment wasin general favorable, as although there was a certain slowdown in the growth rate of the economies of theemerging countries such as China, European economy managed to come out of the period of negative growth
and the U.S. economy showed a steady performance. As for the economy of Japan, it showed sure signs ofrecovery thanks to several positive economic factors such as the stimulative measures by Japanese government.
In these conditions, electronics industry continued to show a steady performance in the area of car-electronics andmobile terminals such as smartphones.
Under such circumstances, Ryosan Group has worked on “cultivating businesses to serve as 2nd and 3rd pillars,”“enhancing actions as a technology training company,” “enhancing actions in each business segment” and “further
reform of corporate structure” while setting “the pursuit of sustainable growth and sound management” as our basic
stance of management for fiscal year 2013.
As a result of the above, the Ryosan Group reported the net sales of 174,034 million yen (up 11.6% from the same
period previous year), operating income of 3,790 million yen (up 36.7%), ordinary income of 3,595 million yen (up10.1%), and net income of 2,303 million yen (up 15.8%) for results of the first three quarters under review.
2) Business Segment Informationa. Semiconductors
We sell memories, system LSIs and discrete semiconductors, and develop system LSIs. In this consolidated first
three quarters, sales of system LSIs for in-vehicle electrical components and memories for smartphones, etc.
increased, with net sales of117,185 million yen (up19.5% from the same period previous year)and operating
income of2,461 million yen (up74.7%).
b. Electronic Components
We sell display devices, power supplies and electromechanical components.In this consolidated first threequarters, sales of electromechanical components for in-vehicle electrical components and smartphones, etc.
increased, with net sales of 40,548 million yen (up2.2% from the same period previous year) andoperating
income of1,066million yen (up 10.2%).
c. Electronic Equipment
We sell systems equipment and facilities equipment. In this consolidated first three quarters, sales of systemequipment for in-vehicle electrical components,etc. decreased, with net sales of 12,511 million yen (down 13.6%
from the same period previous year) and operating income of467million yen (down14.4%).
d. Ryosan Products
We produce and sell heat sinks (devices that dissipate the heat generated by semiconductors). In this consolidated
first three quarters, sales of heat sinks for white goods, etc. increased, with net sales of 3,788 million (up 2.8%
from the same period previous year), but an operating loss of 5 million yen was posted.
(2) Qualitative Information Concerning Consolidated Financial Position
At the end of this first three quarters, total assets had increased by 11,799 million yen, as compared with the level atthe end of the previous fiscal year, and came to 172,019 million yen.
Also, net assets increased by 1,559million yen, as compared with the level at the end of the previous fiscal year, andcame to 118,281 million yen, with the ratio of net assets to total assets being 68.8%.
(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions
Consolidated forecasts for the fiscal year ending March 31, 2014 remains the same as the forecasts announced on
October 29, 2013.

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2.Items Regarding Summary Information (Notes)(1) Transfer of major subsidiaries during the scope of consolidation of this quarter
None(2) Applying accounting procedures specific to preparing quarterly financial statements
None(3) Changes in accounting principles, changes in accounting estimates and restatements
None

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3. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Millions of yen)
Fiscal Year Ended
March 31, 2013
(As of March 31, 2013)

Third Quarter of the Fiscal
YearEnding March 31, 2014
(As ofDecember 31, 2013)ASSETS
Current assets
Cash and deposits

50,46443,305Trade notes and accounts receivable

68,10175,280-5,999

Inventories

19,08824,478

Accrued income

1,390

1,516

Deferred tax assets

514

184

Other current assets

243

577

Allowance for doubtful accounts

(106)

(248)

139,696

151,092

Buildings and structures (net)

4,290

4,172

Land

8,121

8,123

Lease assets (net)

333

345

Other fixed assets (net)

526

552

13,272

13,193

1,029

1,053

Investment securities

3,286

4,230

Deferred tax assets

947

662

Other

3,132

2,852

Allowance for doubtful accounts(1,045)(1,066)

Allowance for loss on investments

(98)

-

Total investments and other assets

6,222

6,679

20,52420,927160,220

172,019

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-4-

(Millions of yen)
Fiscal Year Ended
March 31, 2013
(As of March 31, 2013)

Third Quarter of theFiscal
Year Ending March 31, 2014
(As of December 31, 2013)

LIABILITIESCurrent liabilities
Trade accounts payable

25,261

32,279

Short-term bank loans

12,85016,726

Lease obligations

138

124

Other payable

841

751

1,069

588

Accrued income taxes

689

283

Reserve for bonuses-

338

Other current liabilities

178

248

Total current liabilities

41,02851,341

242

268

2,149

2,053

Other long-term liabilities

76

74

Total long-term liabilities

2,469

2,397

43,49853,738

Common stock

17,69017,690Additional paid-in capital

19,114

19,114Retained earnings

84,59079,999Treasury stock(3,789)(73)

Total shareholders’ equity

117,606

116,730

484

1,316

0

13

(1,368)

221

(883)

1,550

Total net assets

116,722

118,281

Total liabilities and net assets

160,220

172,019

Accrued expenses

Long-term liabilities
Lease obligations
Employees’ retirement benefits

Total liabilities
NET ASSETS
Shareholder’s equity

Other accumulated comprehensive incomes
Net unrealized gain on other marketable securities
Gain (loss) on deferred hedges
Foreign currency translation adjustments
Total other accumulated comprehensive incomes-5-(2) Consolidated Quarterly Statements of Income andConsolidated Quarterly Comprehensive Statements ofIncome(Consolidated Quarterly Statements of Income)(Scope of Consolidation of this First Three Quarters)(Millions of yen)First Three Quarters of the Fiscal
YearEnded March 31, 2013

First Three Quarters of the Fiscal
YearEnding March 31, 2014

(Apr. 1, 2012 to Dec. 31,2012)(Apr. 1, 2013 to Dec. 31, 2013)

Net sales
Cost of Sales
Gross Profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Commission fee
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expense
Foreign currency transaction loss
Miscellaneous expenses
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of noncurrent assets
Gain on sales of investment securities
Reversal of allowance for investment loss
Total extraordinary gains
Extraordinary losses
Impairment loss
Loss on valuation of investment securities
Loss on valuation of golf club membership
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before Minority interest in income
Net income-6-

155,926
143,419
12,507
9,734
2,772

174,034
159,971
14,062
10,272
3,790

57
106
406
166
736

29
51
135
131
348

136
88
20
244
3,264

120
408
13
542
3,595

33
6
24
64

2
2

3
35
1
39
3,298
1,300
1,989
1,989

3,598
1,294
2,303
2,303

(Consolidated Quarterly Comprehensive Statements of Income)(Scope of Consolidation of this FirstThree Quarters)(Millions of yen)First Three Quarters of the Fiscal
Year Ended March 31, 2013

First Three Quarters of the Fiscal
Year Ending March 31, 2014

(Apr. 1, 2012 to Dec. 31, 2012)(Apr. 1, 2013 to Dec. 31, 2013)

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 ofparental company

-7-

1,989

2,303

(31)
2
658

831
13
1,589

629
2,618

2,434
4,738

2,618

4,738

(3) Notes Regarding Consolidated Quarterly Financial Statements(Notes Regarding Going Concern)
Not applicable.
(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable.
(Segment Information)
I. For the consolidated first three quartersof the fiscal year ended March 31, 2013
(April 1, 2012 to December 31, 2012)
1. Overview of our Reporting Segments
Information Concerning Sales and Income or Loss Amount by Reporting Segment(Millions of yen)

Reportable Segment

Sales and operating income
Sales:
Sales to external
Customers
Internal sales between
segments, or exchange
Total
Segment income

Adjusted
amount(Note) 1

Consolidated
quarterly
incomestatement
amount (Note) 2

Semiconductors

Electronic
components

Electronicequipment

Ryosanproducts

Total

98,09839,65914,484

3,684

155,926―

155,926

―

―

―

―

―

―

―

98,098
1,409

39,659967

14,484
546

3,684
34

155,926
2,957

―
(184)

155,926
2,772(Notes)1. The adjustment of -184million yen to segment income 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.
II. For the consolidated first three quartersof the fiscal year ending March 31, 2014
(April 1, 2013 to December 31, 2013)
Information Concerning Sales and Income or Loss Amount by Reporting Segment(Millions of yen)

Reportable Segment

Sales and operating income
Sales:
Sales to external
Customers
Internal sales between
segments, or exchange
Total
Segment income (loss)

Adjusted
amount(Note) 1

Consolidated
quarterly
incomestatement
amount (Note) 2

Semiconductors

Electronic
components

Electronicequipment

Ryosanproducts

Total

117,185

40,54812,511

3,788

174,034―

174,034

―

―

―

―

―

―

―

117,185
2,461

40,548
1,066

12,511
467

3,788
(5)

174,034
3,989

―
(199)

174,034
3,790(Notes)1. The adjustment of -199 million yen to segment income 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.
III. Beginning from the current first quarter consolidated accounting period, we revised the allocation method forcompany-wide expenses, etc.A portion of company-wide expenses, etc. for which allocation was previously not possible
are now allocated to each reporting segment according to applicable allocation standards.
Segment information for the previous consolidated cumulative first three quarters shows numbers which were calculated
based on the allocation method for company-wide expenses, etc. after the change described above.

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4. Supplementary Information(1) Geographical Segment Information
Fiscal 2012, first three quarters of the fiscal year endedMarch 31, 2013
(April 1, 2012 to December 31, 2012)(Millions of yen)Japan
I Sales and operating income
Sales:(1) Sales to external
Customers(2)Internal sales between
segments, or exchange
Total
Segment income

Asia

Total

Eliminations
or corporate

Consolidated

106,525

49,400155,926―

155,926

3,751

372

4,124

(4,124)―110,277
1,288

49,772
1,309

160,050
2,597(4,124)
174

155,926
2,772

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia:Hong Kong, China, Thailand,Korea and others

Fiscal 2013, first three quarters of the fiscal year ending March 31, 2014
(April 1, 2013 to December 31, 2013)(Millions of yen)

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

Eliminations
or corporate

Consolidated

174,033―

174,034

0

7,014(7,014)

―

5,000
177

181,048
3,326(7,014)463

174,034
3,790

Japan

Asia

Other

Total

104,549

64,484

4,999

6,674

339

111,224
1,168

64,823
1,980

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia: Hong Kong, China, Thailand, Korea and others
Other: United States and others-9-(2) Overseas Sales
Fiscal 2012, first three quarters of the fiscal year ended March 31, 2013
(April 1, 2012 to December 31, 2012)(Millions of yen)Total
55,808
155,92635.8

Asia
55,808―35.8

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, Thailand, Korea 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).

Fiscal 2013, first three quarters of the fiscal year ending March 31, 2014
(April 1, 2013 to December 31, 2013)
Overseas sales
Consolidated net sales
Ratio of overseas sales to consolidated net sales (%)

Asia
75,347
―
43.3

Other
5,875
―
3.4

(Millions of yen)Total
81,223174,034
46.7

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia:China, Korea, Hong Kong, Thailand and others
Other: United States 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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