February 3, 2012

Third Quarter Consolidated 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, Representative Director and President
Harumitsu Seki
Senior Managing Director and General Manager
Financing and Accounting Headquarters
TEL: +81-3-3862-2591
Scheduled filing date of quarterly earnings reportFebruary 13, 2012
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 2011 (April 1, 2011 to December 31, 2011)(1) Consolidated operating results (Cumulative)(% figures represent year-on-year increase or decrease)
Net sales

Operating income

Millions of yen

First Three Quarters, Fiscal 2011
First Three Quarters, Fiscal 2010

% Millions of yen

160,119
157,684

1.5
11.9

Ordinary income% Millions of yen

2,411
4,815

(49.9)
49.3

Net income% Millions of yen

3,177
5,376

(40.9)
47.4

1,429
3,301

%

(56.7)
72.7(Note) Comprehensive income
First Three Quarters, Fiscal 2011: 408 million yen (-79.9%) First Three Quarters, Fiscal 2010: 2,030 million yen (- %)Net income
Net income perper shareshare after dilution
First Three Quarters, Fiscal 2011
First Three Quarters, Fiscal 2010

Yen

Yen

41.87
95.79

－
－

(2) Consolidated financial position
Total assets

Net assets tototal assets

Net assets

Millions of yen

Millions of yen

Net assets
per share%

Yen

December 31, 2011
160,975
114,405
71.0
March 31, 2011
163,479
117,780
72.0(Reference) Shareholders equity: December 31, 2011: 114,301 million yen,March 31, 2011: 117,660 million yen

3,415.59
3,413.87

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

40.00
20.00

－
－

End of 4Q－－

Annual

40.00

80.00

40.00

60.00

3. Forecast of results for the fiscal year ending March 31, 2012 (April 1, 2011 to March 31, 2012)
Net sales
Millions of yen

Operating income%

Millions of yen

Full Fiscal Year
230,000
6.4
3,500(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%(42.4)

4,200(39.0)

2,500(39.5)

Yen

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: No(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. 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, 2011: 34,500,000 shares

March 31, 2011: 34,500,000 shares

2. Total number of treasury stock as of the period-end:
December 31, 2011: 1,035,279 shares

March 31, 2011: 34,704 shares

3. Average number of shares outstanding during the period (Cumulative total for the quarterly consolidated period)First three quarters fiscal 2011: 34,153,234 sharesFirst three quarters fiscal 2010: 34,465,799 shares

Indication regarding the implementation status of the quarterly review procedure
Earnings report for this first three quarters is not the subject of a quarterly review procedure based on the Financial Instruments andExchange Act, 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:
The estimates referred in this report were made based on the information available as of the date of this release. Actual results could
significantly differ from the estimates due to a variety of factors. For details on the conditions that form the assumptions used forearnings forecasts and notes on using earnings forecasts, please refer to appendix page 3, “(3) Qualitative information and Other Matters
Concerning Consolidated Forecasts for the Fiscal Year Ending March 31, 2012”.

○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 Three Quarters of
Fiscal 2011............................................................................................................................................................................. 2(2) Qualitative Information and Other Matters Concerning Consolidated Financial Position for the End of the First
Three Quarters 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)............................................................................................................................. 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) Restatement of Changes in Accounting Principles/Changes and Revisions in Accounting Estimate .................................... 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
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 Going Concern .......................................................................................................................................... 8(4) Segment Information ............................................................................................................................................................ 8(5) Notes Regarding Substantial Changes in Shareholders’ Equity............................................................................................ 8
4. Supplementary Information............................................................................................................................................................. 9(1) Geographical Segment Information ...................................................................................................................................... 9(2) Overseas Sales ...................................................................................................................................................................... 10-1-

1. Qualitative Information Regarding this Quarterly Statement(1) Qualitative Information and Other Matters Concerning Consolidated Operating Results for the First
Three Quarters of Fiscal 2011
1) Overview
The global economy in the third quarter (April 1 – December 31, 2011) remained in the balance due to slowing ofstrong economic growth in emerging countries such as China in addition to the financial crisis in Europe. Moreover,the electronics industry, in which we are engaged, experienced difficult conditions due to a worldwide decline indemand for semiconductors and electronic components and a slowdown in production activities triggered by theflooding in Thailand.
To increase sales under these circumstances, the Ryosan Group has powerfully promoted growth strategies with
our Eighth Medium-Term Management Plan; “strengthening our approach 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.)”, which helps move us forward towards“improving profitability.”
As a result of the above, as with the contribution made by the expansion of commercial rights of the Renesas
Electronics business being quite substantial, the Ryosan Group reported an increase in revenues and a decrease inearnings for results of the third quarter under review, with net sales of 160,119 million yen (up 1.5% from the same
period in the previous year). At the same time operating income came to 2,411 million yen (down 49.9%), ordinary
income was 3,177 million yen (down 40.9%) due to the increase in business costs that were required in order tostrengthen the above Renesas Electronics business. Net income was 1,429 million yen (down 56.7%) due to anincrease in tax expense resulting from disposal of differed tax asset, accompanied by the corporate tax reforms.
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, etc. increased, with net sales of 96,970
million yen (up 7.9% from the same period previous year), but operating income came to 1,669 million yen(down 51.8%).
b. Electronic Components
We sell display devices, power supplies and electromechanical components. In this consolidated first threequarters, sales of electromechanical components for game console, etc. decreased, with net sales of 41,687
million yen (down 7.3% from the same period previous year) and operating income of 1,502 million yen (down
19.7%).
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 17,260 million yen (down 3.8%
from the same period previous year) and operating income of 507 million yen (down 13.5%).
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 flat screen TVs etc. decreased, with net sales of 4,201 million yen(down 14.2% from the same period previous year) and operating income of 210 million yen (down 51.8%).
(2) Qualitative Information and Other Matters Concerning Consolidated Financial Position for the End of theFirst Three Quarters of Fiscal 2011
At the end of this first three quarters, total assets had decreased by 2,503 million yen, as compared with the level atthe end of the previous fiscal year, and came to 160,975 million yen.
Also, net assets decreased by 3,375 million yen, as compared with the level at the end of the previous fiscal year,-2-and came to 114,405 million yen, with the ratio of net assets to total assets being 71.0%.
(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 uncertainty surrounding the global economy will most probably further increase due to thefinancial crisis in Europe and the prolonged appreciation of the yen. Against the backdrop of this forecasted
operating environment, the Ryosan Group will continue to promote and pursue two key initiatives of our Eighth
Medium-Term Management Plan: "Construction of a management structure strong enough to survive in the globalage" and "Exploitation of emerging markets to support future growth."
Although at the present point, no modifications have been made to our consolidated earnings forecast for the term
ending March, 2012 that was announced on June 14, 2011, Ryosan Group is currently analyzing the effects on ourconsolidated earnings which may have been caused by the recent economic trends and the flooding in the Thailand,
and we will announce them promptly as need.

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
None(3) Restatement of changes in accounting principles/changes and revisions in accounting estimate
None

-3-

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

Third Quarter of the Fiscal
Year Ending March 31, 2012
(As of December 31, 2011)ASSETS
Current assets
Cash and deposits

43,24029,252

Trade notes and accounts receivable

68,70976,944Inventories

22,96327,829Accrued income

4,483

3,618

Deferred tax assets

400

158

Other current assets

288

419

Allowance for doubtful accounts

(63)

(97)

140,021138,124

Buildings and structures (net)

4,645

4,487

Land

8,126

8,118

Lease assets (net)

255

197

Other fixed assets (net)

654

540

13,682

13,343701

836

Investment securities

3,156

2,770

Long-term deposits

3,000

3,000

Deferred tax assets

1,571

1,358

Other

2,447

2,601

Allowance for doubtful accounts

(975)

(911)

Allowance for loss on investments

(127)

(148)

Total Investments and other assets

9,072

8,671

23,45722,850163,479

160,975

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, 2011
(As of March 31, 2011)

Third Quarter of the Fiscal
Year Ending March 31, 2012
(As of December 31, 2011)

LIABILITIESCurrent liabilities
Trade notes and accounts payable

31,21930,206

Short-term bank loans

7,621

10,768

Lease obligations

116

105

Accrued expenses

995

537

Accrued income taxes

1,402

137

Reserve for bonuses－

346

Other current liabilities

1,745

1,970

Total current liabilities

43,10044,072

194

134

2,327

2,289

Other long-term liabilities

76

74

Total long-term liabilities

2,597

2,498

45,69846,570Common stock

17,69017,690Additional paid-in capital

19,114

19,114Retained earnings

83,60682,979Treasury stock(85)(1,805)

120,325

117,978

Net unrealized gain on other marketable securities

295

124

Gain (loss) on deferred hedges

(6)

(3)

Foreign currency translation adjustments(2,954)(3,797)

Total other accumulated comprehensive incomes(2,665)(3,676)120

103

Total net assets

117,780

114,405

Total liabilities and net assets

163,479

160,975

Long-term liabilities
Lease obligations
Employees’ retirement benefits

Total liabilities
NET ASSETS
Shareholder’s equity

Total shareholders’ equity
Other accumulated comprehensive incomes

Minority interests-5-(2) Consolidated Quarterly Statements of Income and Consolidated 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
Year Ended March 31, 2011

First Three Quarters of the Fiscal
Year Ending March 31, 2012

(Apr. 1, 2010 to Dec. 31, 2010)(Apr. 1, 2011 to Dec. 31, 2011)

Net sales
Cost of Sales
Gross Profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Gain on foreign exchange
Commission fee
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expense
Miscellaneous expenses
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of noncurrent assets
Gain on reversal of allowance for doubtful accounts
Total extraordinary gains
Extraordinary losses
Loss on sales and disposal of property, plant and equipment
Loss on valuation of investment securities
Provision of allowance for investment loss
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before Minority interest in income
Minority interests in income
Net income-6-

157,684
143,389
14,295
9,479
4,815

160,119
147,758
12,361
9,949
2,411

80
149
202
－
195
628

68
147
103
412
173
904

57
9
67
5,376

125
14
139
3,177

1
175
176

0
－
0

6
－
23
29
5,523
2,217
3,305
4
3,301

4
138
20
164
3,013
1,581
1,432
2
1,429

(Consolidated Quarterly Comprehensive Statements of Income)(Scope of Consolidation of this First Three Quarters)(Millions of yen)First Three Quarters of the Fiscal
Year Ended March 31, 2011

First Three Quarters of the Fiscal
Year Ending March 31, 2012

(Apr. 1, 2010 to Dec. 31, 2010)(Apr. 1, 2011 to Dec. 31, 2011)

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
Comprehensive incomes relating to minority shareholders

-7-

3,305

1,432

(141)
(18)
(1,115)

(170)
2
(855)

(1,275)2,030(1,023)
408

2,035

418

(4)

(9)

(3) Notes Regarding Going Concern
Not applicable.
(4) Segment Information
I. For the consolidated first three quarters of the fiscal year ended March 31, 2011
(April 1, 2010 to December 31, 2010)
1. Overview of our Reporting Segments
Information Concerning Sales and Income or Loss Amount by Reporting Segment(Millions of yen)

Reportable Segment
Adjusted
amount(Note) 1

Consolidated
quarterly
incomestatement
amount (Note) 2

Semiconductors

Electronic
components

Electronicequipment

Ryosanproducts

Total

89,85944,991

17,937

4,895

157,684―

157,684

―

―

―

―

―

―

―

89,8593,462

44,991
1,871

17,937
586

4,895
435

157,684
6,355―(1,540)157,684
4,815

Sales and operating income
Sales:
Sales to external
Customers
Internal sales between
segments, or exchange
Total
Segment income (loss)(Notes)1. The adjustment of -1,540 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.

II. For the consolidated first three quarters of the fiscal year ending March 31, 2012
(April 1, 2011 to December 31, 2011)
Information Concerning Sales and Income or Loss Amount by Reporting Segment(Millions of yen)

Reportable Segment
Adjusted
amount(Note) 1

Consolidated
quarterly
incomestatement
amount (Note) 2

Semiconductors

Electronic
components

Electronicequipment

Ryosanproducts

Total

96,97041,687

17,2604,201

160,119―

160,119

―

―

―

―

―

―

―

96,9701,669

41,687
1,502

17,260
507

4,201
210

160,119
3,890―(1,478)160,119
2,411

Sales and operating income
Sales:
Sales to external
Customers
Internal sales between
segments, or exchange
Total
Segment income (loss)(Notes)1. The adjustment of -1,478 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.

-8-4. Supplementary Information(1) Geographical Segment Information
Fiscal 2010, first three quarters of the fiscal year ended March 31, 2011
(April 1, 2010 to December 31, 2010)(Millions of yen)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

110,560

47,124

157,684―

157,684

8,931

311

9,242

(9,242)―

119,491
3,358

47,435
1,341

166,927
4,700(9,242)
115

157,684
4,815

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

Fiscal 2011, First three quarters of the fiscal year ending March 31, 2012
(April 1, 2011 to December 31, 2011)(Millions of yen)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

112,261

47,858160,119―

160,119

5,947

1,119

7,067

(7,067)―

118,209
1,463

48,978718

167,187
2,182(7,067)229

160,119
2,411

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-9-(2) Overseas Sales
Fiscal 2010, first three quarters of the fiscal year ended March 31, 2011
(April 1, 2010 to December 31, 2010)
Asia
54,247―
34.4

Overseas sales
Consolidated net sales
Ratio of overseas sales to consolidated net sales (%)(Millions of yen)Total
54,247
157,684
34.4

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).

Fiscal 2011, first three quarters of the fiscal year ending March 31, 2012
(April 1, 2011 to December 31, 2011)
Asia
51,330―32.1

Overseas sales
Consolidated net sales
Ratio of overseas sales to consolidated net sales (%)(Millions of yen)Total
51,330160,11932.1

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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