July 29, 2016

First Quarter Earnings Report for Fiscal 2016, Ending March 31, 2017
[Japanese Standards] (Consolidated)
Company name:Securities code:
Representative:

Ryosan Company, Limited
Stock listing: First Section, Tokyo Stock Exchange
8140
URL http://www.ryosan.co.jp
Naoto Mimatsu, President and Representative Director
Masahide Nishiura, Director and General Manager of the Finance and Accounting TEL:
Inquiries:
Headquarters+81-3-3862-2591
Scheduled filing date of quarterly earnings report:
August 12, 2016
Scheduled payment date of dividend:―
Supplementary materials for the quarterly financial results:
None
Investor conference for the quarterly financial results:
None(Millions of yen rounded down)

1. Consolidated results for the first quarter of fiscal 2016 (April 1, 2016 to June 30, 2016)(1) Consolidated operating results (Cumulative)(% figures represent year-on-year increase or decrease)
Profit attributable toOperating income
Ordinary income
owners of parent

Net salesFirst Quarter, Fiscal 2016

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

48,301(15.3)

635(57.3)

936(36.1)

703(34.3)

1,490

23.8

1,466

11.0

1,071

31.8

First Quarter, Fiscal 2015

57,010(6.1)(Note) Comprehensive income
First Quarter, Fiscal 2016: -1,608 million yen (－%)
First Quarter, Fiscal 2015: 1,474 million yen (65.0%)
Profit per share

Profit per share after
dilution

YenFirst Quarter, Fiscal 2016
First Quarter, Fiscal 2015

Yen

23.88
34.54

―
―

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

June 30, 2016
March 31, 2016
(Reference) Shareholders’ equity
June 30, 2016: 110,954 million yen
March 31, 2016: 115,362 million yen

Net assets to total assets

Millions of yen%

110,954
115,36274.1
73.5

149,827
157,011

Net assets per share
Yen

3,765.45
3,915.04

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

Fiscal 2015―
Fiscal 2016―
Fiscal 2016 (Forecast)(Note) Revision of dividend forecasts: None

End of 2Q

End of 3Q

Yen

Yen

Annual

Total
Yen

Yen

45.00

―

95.00

140.00

70.00

―

70.00

140.00As stated in the "Notice Concerning Revision of Dividend Forecast" released on July 11, 2016, Ryosan Company
Limited (Ryosan)'s basic dividend policy is to pay ordinary and special dividends of 90 yen and 50 yen or more pershare, respectively, resulting in a total dividend of 140 yen or more per share for the fiscal year ending March 31,
2017.

Fiscal 2015

Year-end dividend breakdown:

45 yen (ordinary), 50 yen (special)

Fiscal 2016

Interim dividend breakdown (forecast):

45 yen (ordinary), 25 yen (special) or more

Fiscal 2016

Year-end dividend breakdown (forecast):

45 yen (ordinary), 25 yen (special) or more

3. Forecast of results for the fiscal 2016 (April 1, 2016 to March 31, 2017)
Net sales
Millions of yen(% figures represent year-on-year increase or decrease)
Profit attributable toProfit per
Ordinary income
owners of parent
share

Operating income%

Millions of yen

Interim period
110,000(5.8)
Full Fiscal Year
230,000
0.8(Note) Revision of financial results forecasts: None

2,300
5,600

%

Millions of yen%

Millions of yen%(19.2)
1.1

2,300
5,600

(13.5)
0.1

1,500
3,700

(18.4)
0.8

Yen

50.91
125.57* Notes(1) Transfer of major subsidiaries during the scope of consolidation of these three months ended June 30, 2016 (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: Yes
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 theJune 30, 2016

31,500,000 shares

March 31, 2016

31,500,000 sharesperiod-end:
2. Total number of treasury shares at theperiod-end:
3. Average number of shares outstanding
during the period (Cumulative total for thequarterly consolidated period)

June 30, 2016
First Quarter,
Fiscal 2016

2,033,524
shares29,466,495 shares

March 31, 2016
First Quarter,
Fiscal 2015

2,033,462
shares31,017,351 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:(Notes on forward-looking statements)
The estimates referred in this report are 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 differ from the estimates due to a variety offactors. For details on the conditions that form the assumptions used for earnings forecasts and 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 Concerning Consolidated Operating Results .................................................................................. 2(2) Qualitative Information Concerning Consolidated 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 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 Quarter .............................................................................................................. 6
Consolidated Quarterly Statement of Comprehensive Income
Scope of Consolidation of this First Quarter .............................................................................................................. 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) Geographical Segment Information ...................................................................................................................................... 9(2) Overseas Sales....................................................................................................................................................................... 10-1-

1. Qualitative Information Regarding this Quarterly Statement(1) Qualitative Information Concerning Consolidated Operating Results1) Overview
During this consolidated first quarter (April 1, 2016 to June 30, 2016), the global economy continued to show aslow recovery in America and Europe, while a slowdown continued in China and other emerging countries.
Meanwhile, in Japan, the economy recovered at a gradual pace, due to ongoing improvement in corporate earnings
and employment conditions. However, future prospects remained uncertain due to weak consumer spending andthe impact of Kumamoto Earthquake.
The electronics industry appeared rather sluggish as a whole, with a stagnating demand in the information andcommunications field that play a leading role in the market.
FY2016 is the third fiscal year for the 9th Medium-Term Business Plan (FY2014-FY2017) through which
Ryosan is pursuing business model shifts, by coping with changes in its business environment and pursuing growth
in a sustainable manner. To realize this plan, Ryosan is focusing on rebuilding its growth path and enhancing
capital efficiency. However, during the period under review, Ryosan was strongly affected by the sluggish market
conditions.
As the result, Ryosan reported net sales of 48,301 million yen (down 15.3% from the same period last fiscal
year), operating income of 635 million yen (down 57.3%), ordinary income of 936 million yen (down 36.1%), andprofit attributable to owners of parent of 703 million yen (down 34.3%) for this three-month consolidation period.
2) Business Segment Informationa. Semiconductors
Ryosan sells memories, system LSIs and discrete semiconductors, and develops system LSIs. In thisthree-month consolidation period, sales including system LSIs for car-navigation and car-audio systems
decreased, with net sales of 28,978 million yen (down 14.0% from the same period last fiscal year), and operating
income of 450 million yen (down 46.6%).
b. Electronic Components
Ryosan sells display devices, power supplies and electromechanical components. In this three-monthconsolidation period, sales including liquid crystal for digital cameras decreased, with net sales of 15,415 million
yen (down 5.4% from the same period last fiscal year), and operating income of 308 million yen (down 26.9%).
c. Electronic Equipment
Ryosan sells systems equipment and facilities equipment. In this three-month consolidation period, sales
including system equipment for Multi Function Peripherals decreased, with net sales of 3,907 million yen (down
44.3% from the same period last fiscal year), and operating income of 62 million yen (down 79.1%).

(2) Qualitative Information Concerning Consolidated Financial Position
At the end of this first quarter, total assets decreased by 7,183 million yen, as compared with the level at the endof the previous fiscal year, and came to 149,827 million yen.
Also, net assets decreased by 4,408 million yen, as compared with the level at the end of the previous fiscal year,
and came to 110,954 million yen, with the ratio of net assets to total assets being 74.1%.
(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions
There is no change in forecasts for the first half and full fiscal year ending March 31, 2017 (announced on May
13, 2016).

-2-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
Changes in Items of Accounting Principles
Implementation of Practical Solutions on Accounting for Changes in the Depreciation Method Associated With
Revisions to the FY2016 Tax Law
In accordance with revisions to the Corporate Tax Law, Ryosan has adopted the “Practical Solutions on
Accounting for Changes in the Depreciation Method Associated With Revisions to the FY2016 Tax Law”
(Practical Issues Task Force No. 32 issued on June 17, 2016), effective from the consolidated first quarter ofcurrent term, and accordingly changed the depreciation method for facilities attached to buildings and forstructures acquired on or after April 1, 2016, from the declining balance method to the straight-line method.
There was only minor impact on operating income, ordinary income and quarterly profit before income taxes
during this first quarter.

-3-

3. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheet(Millions of yen)
Fiscal Year Ended
March 31, 2016
(As of March 31, 2016)

First Quarter of the Fiscal
Year Ending March 31, 2017
(As of June 30, 2016)

ASSETS
Current assets
Cash and deposits

50,76846,712

Notes and accounts receivable –trade64,654

58,838

Securities

-

3,194

Inventories

22,227

21,887

Accounts receivable – other

736

1,082

Deferred tax assets

578

494

Other

261

203

Allowance for doubtful accounts

(41)

(39)

139,185

132,373

Buildings and structures, net

3,506

3,466

Land

6,489

6,425

Leased assets, net

272

626

Other, net

167

152

10,436

10,670

1,086

1,069

Investment securities

4,335

3,756

Deferred tax assets

141

142

Other

1,950

1,938

Allowance for doubtful accounts

(124)

(122)

Total investments and other assets

6,302

5,714

17,826

17,454

157,011

149,827

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, 2016
(As of March 31, 2016)

First Quarter of the Fiscal
Year Ending March 31, 2017
(As of June 30, 2016)

LIABILITIESCurrent liabilities
Accounts payable - trade

24,886

24,414

Short-term loans payable

10,785

8,922

Lease obligations

124

170

Accounts payable - other

770

1,081

1,130

452

Income taxes payable

951

177

Provision for bonuses

-

304

419

587

39,07036,110

Lease obligations

188

525

Deferred tax liabilities

282

152

Net defined benefit liability

2,020

1,995

Asset retirement obligations

33

33

Other

53

53

2,578

2,761

41,64838,872

Capital stock

17,69017,690Capital surplus

19,114

19,114Retained earnings

82,66980,573

Treasury shares(6,119)(6,119)Total shareholders’ equity

113,354

111,258

1,375

963

Deferred gains or losses on hedges

(3)

(8)

Foreign currency translation adjustment

646(1,245)Remeasurements of defined benefit plans

(9)

(13)

2,008

(303)

Total net assets

115,362

110,954

Total liabilities and net assets

157,011

149,827

Accrued expenses

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

Total accumulated other comprehensive income-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 Quarter)(Millions of yen)First Quarter of the Fiscal Year
Ended March 31, 2016

First Quarter of the Fiscal YearEnding March 31, 2017

(April 1, 2015 to June 30, 2015)(April 1, 2016 to June 30, 2016)

57,01052,034
4,975
3,485
1,490

48,301
44,215
4,085
3,450
635

15
36
31
82

14
38
250
32
335

32
71
2
106
1,466

31
2
34
936

70
70

-

56
56
1,480
408
1,071
1,071

936
233
703
703

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
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Miscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
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 Quarter)(Millions of yen)First Quarter of the Fiscal Year
Ended March 31, 2016

First Quarter of the Fiscal YearEnding March 31, 2017

(April 1, 2015 to June 30, 2015)(April 1, 2016 to June 30, 2016)

1,071

703

204
1
210
(12)
403
1,474

(411)
(4)
(1,892)(3)(2,312)(1,608)1,474(1,608)

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) Notes Regarding Consolidated Quarterly Financial Statements(Notes Regarding Going Concern)
None(Notes Regarding Substantial Changes in Shareholders’ Equity)
None(Segment Information)
I. For the consolidated first quarter of the fiscal year ended March 31, 2016
(April 1, 2015 to June 30, 2015)
Information Concerning Sales and Income or Loss Amount by Reporting Segment(Millions of yen)
Semiconductors
Net sales
Sales to external customers
Internal sales or exchange
between segments
Total
Segment income (loss)

Reporting Segment
Electronic
Electronic
Components
Equipment

Total

Adjusted
amount(Note 1)

Amounts shown on
consolidated statement ofincome (Note 2)

33,701

16,2987,010

57,010―57,010

―

―

―

―

―

―

33,701
843

16,298
421

7,010
299

57,010
1,565

―
(74)

57,0101,490(Notes)1. The adjustment of -74 million yen to segment income represents corporate expenses that are not allocated to eachreporting segment. Corporate expenses mainly refer to general and administrative expenses not belonging to any reporting
segments.
2. Segment income has been adjusted with operating income in consolidated quarterly statements of income.

II. For the consolidated first quarter of the fiscal year ending March 31, 2017
(April 1, 2016 to June 30, 2016)
Information Concerning Sales and Income or Loss Amount by Reporting Segment(Millions of yen)
Semiconductors
Net sales
Sales to external customers
Internal sales or exchange
between segments
Total
Segment income (loss)

Reporting Segment
Electronic
Electronic
Components
Equipment

Total

Adjusted
amount(Note 1)

Amounts shown on
consolidated statement ofincome (Note 2)

28,97815,415

3,907

48,301―

48,301

―

―

―

―

―

―

28,978450

15,415
308

3,907
62

48,301
821

―
(185)

48,301635(Notes)1. The adjustment of -185 million yen to segment income represents corporate expenses that are not allocated to eachreporting segment. Corporate expenses mainly refer to general and administrative expenses not belonging to any reporting
segments.
2. Segment income has been adjusted with operating income in consolidated quarterly statements of income.

-8-

4. Supplementary Information(1) Geographical Segment Information
Fiscal 2015, first quarter of the fiscal year ended March 31, 2016
(April 1, 2015 to June 30, 2015)(Millions of yen)

Japan

Asia

Other

33,003

21,859

2,147

3,007

85

-

36,011
684

21,945
588

2,147
69

Eliminations
or corporate

Consolidated

57,010―57,010

3,093(3,093)―60,103
1,341(3,093)
148

57,010
1,490

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:
Asia: Hong Kong, Thailand, China, South Korea, etc.
Other: United States, etc.

Fiscal 2016, first quarter of the fiscal year ending March 31, 2017
(April 1, 2016 to June 30, 2016)(Millions of yen)

Eliminations
or corporate

Consolidated

48,301―

48,3012

2,800(2,800)

―

1,908
75

51,102623(2,800)12

48,301
635

Japan

Asia

Other

Total

28,02818,366

1,906

2,692

105

30,721
91

18,472455

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:
Asia: Hong Kong, Thailand, China, South Korea, etc.
Other: United States, etc.

-9-(2) Overseas sales
Fiscal 2015, first quarter of the fiscal year ended March 31, 2016
(April 1, 2015 to June 30, 2015)
Overseas sales
Consolidated net sales
Ratio of overseas sales to consolidated net sales (%)

Asia
22,041
―
38.7

Other
2,191
―
3.8

(Millions of yen)Total
24,23357,01042.5(Notes)1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia: China, Thailand, Hong Kong, South Korea, etc.
Other: United States, etc.
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 2016, first quarter of the fiscal year ending March 31, 2017
(April 1, 2016 to June 30, 2016)
Overseas sales
Consolidated net sales
Ratio of overseas sales to consolidated net sales (%)

Asia
18,139
―
37.6

Other
1,918
―
4.0

(Millions of yen)
Total
20,05748,301
41.5(Notes)1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia: China, Thailand, South Korea, Hong Kong, etc.
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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