July 31, 2018

First Quarter Earnings Report for Fiscal Year 2018, Ending March 31, 2019
[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
Hiroyuki Kurihara, Representative Director, President
Masahide Nishiura, Director, Senior Executive Officer,
Inquiries:
TEL: +81-3-3862-2591
General Manager, Finance and Accounting Headquarters
Scheduled filing date of quarterly earnings report:
August 13, 2018
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 year 2018 (April 1, 2018 to June 30, 2018)(1) Consolidated operating results (Cumulative)(% change compared with the same period of previous fiscal year (YoY))
Profit attributable toOperating income
Ordinary income
owners of parent

Net sales
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

63,5607.9

1,240(17.7)

616(61.4)

413(62.0)

1,507

137.1

1,596

70.4

1,088

54.7

First Quarter, Fiscal Year 2018

First Quarter, Fiscal Year 2017
58,91522.0(Note) Comprehensive income
First Quarter, Fiscal Year 2018: 739 million yen (-43.0%)
First Quarter, Fiscal Year 2017: 1,296 million yen (－%)
Basic earnings per
share

Diluted earnings per
share

Yen

First Quarter, Fiscal Year 2018
First Quarter, Fiscal Year 2017

Yen

16.89
39.03

―
―

(2) Consolidated financial position
Total assets

Net assets

Net assets to total assets

Millions of yen

Millions of yen%

165,806
162,257

93,12894,331

56.2
58.1

June 30, 2018
March 31, 2018
(Reference) Shareholders’ equity
June 30, 2018: 93,128 million yen
March 31, 2018: 94,331 million yen

Net assets per shareYen

3,803.50
3,852.59

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

Fiscal Year 2017―
Fiscal Year 2018―
Fiscal Year 2018 (Forecast)(Note) Revision of dividend forecasts: None

End of 2Q

End of 3Q

Yen

Yen

Annual

Total
Yen

Yen

75.00

―

75.00

150.00

75.00

―

75.00

150.00Fiscal Year 2017

Interim dividend breakdown: 50 yen (ordinary), 25 yen (special)

Fiscal Year 2017

Year-end dividend breakdown: 50 yen (ordinary), 25 yen (special)

Fiscal Year 2018

Interim dividend breakdown (forecast): 50 yen (ordinary), 25 yen (special) or more

Fiscal Year 2018

Year-end dividend breakdown (forecast): 50 yen (ordinary), 25 yen (special) or more

3. Forecast of results for the fiscal year 2018 (April 1, 2018 to March 31, 2019)
Net sales
Millions of yen(% figures represent year-on-year increase or decrease)
Basic
Profit attributable toearnings per
Ordinary income
owners of parent
share

Operating income%

Millions of yen

Interim period
127,500
3.1
Full Fiscal Year
258,000
1.5(Note) Revision of financial results forecasts: None

2,700
6,000

%

Millions of yen%

Millions of yen%(16.3)
5.9

2,500
5,600

(21.7)(12.4)

1,800
4,000

(19.2)(10.7)

Yen

73.51
163.36* Notes(1) Transfer of major subsidiaries during the scope of consolidation of these three months ended June 30, 2018 (transfer of specified
subsidiaries in line with changes in the consolidated range): NoneNew:

－ (Company name:)

Excluded:－ (Company name:)(2) Application of accounting procedures specific to preparing quarterly financial statements: None
(3) Changes in accounting principles, changes in accounting estimates, and restatements
1) Changes in accordance with revisions to accounting standards and related practices of accounting principles: None
2) Changes in items of accounting principles other than 1) above: None
3) Changes in accounting estimates: None
4) Restatements: None
(4) Number of shares issued and outstanding (common shares)
1. Total number of shares issued andoutstanding (including treasury shares) at theJune 30, 2018

25,000,000 shares

March 31, 2018

28,500,000 shares

June 30, 2018514,948 shares

March 31, 2018

4,014,862 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)First Quarter,
Fiscal Year 2018

24,485,078 sharesFirst Quarter,
Fiscal Year 201727,892,728 sharesThis quarterly consolidated earnings report is not subject to the quarterly review by certified public accountants or auditing
corporations.
Caution with respect to forward-looking statements(Notes on forward-looking statements)
The estimates referred in this report are based on the information available as of the date of this release. Ryosan Company Limited(Ryosan) does not promise the realization of the estimates in this report. The actual results may significantly differ from the estimates due
to a variety of factors. For details on the conditions that form the assumptions used for earnings forecasts and notes on using earnings
forecasts, please refer to appendix page 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. Consolidated Quarterly Financial Statements and Main Notes ........................................................................................................ 3(1) Consolidated Quarterly Balance Sheet .................................................................................................................................. 3(2) Consolidated Quarterly Statement of Income and Consolidated Quarterly Statement of Comprehensive Income ............... 5
Consolidated Quarterly Statement of Income
Scope of Consolidation of this First Quarter .............................................................................................................. 5
Consolidated Quarterly Statement of Comprehensive Income
Scope of Consolidation of this First Quarter .............................................................................................................. 6(3) Notes Regarding Consolidated Quarterly Financial Statements............................................................................................ 7(Notes Regarding Going Concern)........................................................................................................................................ 7(Notes Regarding Substantial Changes in Shareholders’ Equity).......................................................................................... 7(Additional Information) ....................................................................................................................................................... 7(Segment Information) .......................................................................................................................................................... 7-1-

1. Qualitative Information Regarding this Quarterly Statement(1) Qualitative Information Concerning Consolidated Operating Results1) Overview
During this consolidated first quarter (April 1, 2018 to June 30, 2018), although the effects of trade friction caused
anxiety, the global economy continued growing at a sluggish pace supported by steady investment and consumption
levels. The U.S. maintained autonomous growth primarily driven by its own domestic demand, Europe experienced
continuing strong economic expansion, and emerging countries including China also remained steady. Also in Japan,
there were a number of favorable signs including the recovery trends in consumer spending due to improvements inthe employment and income environment and the increase of corporate earnings, etc., all showing that the economy
continued on a moderate growth track.
In the electronics industry, demand for FA equipment increased, in-vehicle electrical equipment stabilized, and theoverall performance was strong.
In the midst of these circumstances, Ryosan issued the 10th Medium-Term Business Plan which will last for a
3-year period starting in this fiscal year. With "growth" and "speed" defining the fundamental attitude, the plan calls
for achieving sustainable growth through quick responses to changes in the management environment and electronics
systems coordination. Ryosan will pursue three different strategies to achieve this objective: the "growth strategy"
will strengthen its revenue stream and reconstruct its business portfolio, the "capital strategy" will strive for ROE
improvements, and the "infrastructure strategy" will institute qualitative enhancement of corporate governance andstrengthen the management infrastructure, both of which are indispensable in securing continuous growth.
Due to factors such as the consolidation of Hong Kong's Edal Electronics Co., Ltd. ("Edal") as a subsidiary in thisfiscal year following its acquisition in March 2017, net sales in the first quarter were 63,560 million yen (up 7.9%
from the same period last fiscal year) and operating income was 1,240 million yen (down 17.7%). As a result of therevaluation of loans denominated in foreign currencies, ordinary income was 616 million yen (down 61.4%) andprofit attributable to owners of parent was 413 million yen (down 62.0%).
2) Business Segment Informationa. Semiconductors
Ryosan sells system LSIs, discrete semiconductors and memory, and develops system LSIs on a contract basis.
In this three-month consolidated period, due to the strong performance in the FA equipment and in-vehicle electricalequipment business, consolidation of Edal, and inventory evaluations, net sales were 38,688 million yen (up 10.6%
from the same period last fiscal year) and operating income was 578 million yen (down 36.6%).
b. Electronic Components
Ryosan sells electromechanical components, display devices and power supplies. Since the performance of
Ryosan’s businesses for consumer and FA equipment was strong in this three-month consolidated period, net sales
were 19,667 million yen (up 6.7% from the same period last fiscal year), and operating income was 691 million
yen (up 11.5%).
c. Electronic Equipment
Ryosan sells systems equipment and facilities equipment. In this three-month consolidation period, due to factors
such as the end of large-scale business projects, net sales were 5,204 million yen (down 5.5% from the same period
last fiscal year), and operating income was 56 million yen (down 51.9%).
(2) Qualitative Information Concerning Consolidated Financial Position
As of the end of this first quarter, total assets increased by 3,548 million yen compared with the end of the previous
fiscal year, to 165,806 million yen.
Also, net assets decreased by 1,202 million yen compared with the end of the previous fiscal year, to 93,128 million
yen, with the ratio of net assets to total assets being 56.2%.
(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, 2019 (announced on May 11,2018).
-2-

2. Consolidated Quarterly Financial Statements and Main Notes(1) Consolidated Quarterly Balance Sheet(Millions of yen)
Fiscal Year Ended
March 31, 2018
(As of March 31, 2018)

First Quarter of the Fiscal
Year Ending March 31, 2019
(As of June 30, 2018)ASSETS
Current assets
Cash and deposits

13,54715,151

Notes and accounts receivable –trade75,53874,701Inventories

44,01550,188

Accounts receivable – other

10,249

6,913

Other

242

385

Allowance for doubtful accounts

(42)

(43)

143,550

147,297

Buildings and structures, net

3,168

3,138

Land

6,189

6,145

Leased assets, net

576

584

Other, net

155

159

10,09010,027903

1,424

Investment securities

5,310

4,666

Deferred tax assets

296

299

Other

2,238

2,224

Allowance for doubtful accounts

(132)

(133)

Total investments and other assets

7,713

7,056

18,70718,508162,257

165,806

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-3-

(Millions of yen)
Fiscal Year Ended
March 31, 2018
(As of March 31, 2018)

First Quarter of the Fiscal
Year Ending March 31, 2019
(As of June 30, 2018)

LIABILITIESCurrent liabilities
Accounts payable - trade

36,35538,917

Short-term loans payable

23,95927,609164

170

Accounts payable - other

1,714

1,383

Accrued expenses

1,362

561

Income taxes payable

1,598

438

Provision for bonuses

-

395

183

579

65,33770,056

Lease obligations

475

478

Deferred tax liabilities

247

289

Net defined benefit liability

1,782

1,769

Asset retirement obligations

31

30

Other

52

52

2,589

2,620

67,926

72,677

Capital stock

17,69017,690Capital surplus

19,114

19,114Retained earnings

72,74056,271

Treasury shares(17,215)(2,274)

Total shareholders’ equity

92,32990,802

1,923

1,998

Deferred gains or losses on hedges(0)0Foreign currency translation adjustment

52

303

Remeasurements of defined benefit plans

25

23

2,001

2,326

Total net assets

94,331

93,128

Total liabilities and net assets

162,257

165,806

Lease obligations

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-4-(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, 2018

First Quarter of the Fiscal YearEnding March 31, 2019

(April 1, 2017 to June 30, 2017)(April 1, 2018 to June 30, 2018)

58,91553,727
5,188
3,681
1,507

63,56058,319
5,241
4,000
1,240

12
35
92
7
16
164

5
48
7
59
120

62
9
3
75
1,596

153
10
574
7
744
616

3
3
1,599
511
1,088
1,088

0
0
0
617
203
413
413

Net sales
Cost of Sales
Gross Profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Rent income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Commission for purchase of treasury shares
Foreign exchange losses
Miscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Profit before income taxes
Income taxes
ProfitProfit attributable to owners of parent-5-

(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, 2018

First Quarter of the Fiscal YearEnding March 31, 2019

(April 1, 2017 to June 30, 2017)(April 1, 2018 to June 30, 2018)

1,088

413

134
0
79
(6)
208
1,296

75
0
251
(2)
325
739

1,296

739

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-6-

(3) Notes Regarding Consolidated Quarterly Financial Statements(Notes Regarding Going Concern)
None(Notes Regarding Substantial Changes in Shareholders’ Equity)
Based on a corporate resolution made at the Board Meeting on May 29, 2018, Ryosan retired 3,500,000
treasury shares effective as of June 11, 2018. As a result, retained earnings and treasury shares in thisconsolidated first quarter both decreased by 14,941 million yen respectively.
(Additional Information)
Application of "Partial Revisions to 'Accounting Standards for Tax-Effect Accounting'"
Due to changes such as "Partial Revisions to 'Accounting Standards for Tax-Effect Accounting'" (Corporate
Accounting Standard No. 28, February 16, 2018) which have been applied as of the beginning of theconsolidated first quarter of this fiscal year, deferred tax assets are classified as "investments and other assets"
and deferred tax liabilities are classified as "non-current liabilities."(Segment Information)
I. Information Concerning Sales and Income or Loss Amount by Reporting Segment
For the consolidated first quarter of the fiscal year ended March 31, 2018
(April 1, 2017 to June 30, 2017)(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)

34,97018,436

5,509

58,915―58,915

―

―

―

―

―

―

34,970912

18,436
620

5,509
118

58,915
1,651

―
(143)

58,915
1,507(Notes)1. The adjusted amount of minus 143 million yen represents corporate expenses (mainly general and administrative expenses)
which are not allocated to the reporting segment.
2. Segment income has been adjusted with operating income in consolidated quarterly statement of income.

For the consolidated first quarter of the fiscal year ending March 31, 2019
(April 1, 2018 to June 30, 2018)(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)

38,68819,667

5,204

63,560―63,560

―

―

―

―

―

―

38,688578

19,667
691

5,204
56

63,560
1,326

―
(86)

63,5601,240(Notes)1. The adjusted amount of minus 86 million yen represents corporate expenses (mainly general and administrative expenses)
which are not allocated to the reporting segment.
2. Segment income has been adjusted with operating income in consolidated quarterly statement of income.

-7-II. Information Concerning Sales and Income or Loss Amount by Sales Destination
Fiscal Year 2017, first quarter of the fiscal year ended March 31, 2018
(April 1, 2017 to June 30, 2017)(Millions of yen)

Japan

Asia

Other

36,16820,745

2,001

4,025

31

2

40,194607

20,776
758

2,004
45

Eliminations
or corporate

Consolidated

58,915―58,915

4,059(4,059)―62,974
1,411(4,059)96

58,915
1,507

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 Year 2018, first quarter of the fiscal year ending March 31, 2019
(April 1, 2018 to June 30, 2018)(Millions of yen)

Eliminations
or corporate

Consolidated

63,560―63,5600

4,641(4,641)

―

2,354
67

68,202
1,111(4,641)
129

63,560
1,240

Japan

Asia

Other

Total

36,22524,981

2,354

4,617

24

40,842
228

25,005815

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.

III. Information Concerning Sales by Region
Fiscal Year 2017, first quarter of the fiscal year ended March 31, 2018
(April 1, 2017 to June 30, 2017)(Millions of yen)Japan
Net sales
Ratio to consolidated net sales (%)

China

34,812
59.1

11,83820.1

Asia
10,239
17.4

Other
2,025
3.4

Consolidated
58,915100.0(Note) Net sales are on the basis of customer location and classified by country or region.

Fiscal Year 2018, first quarter of the fiscal year ending March 31, 2019
(April 1, 2018 to June 30, 2018)(Millions of yen)Japan
Net sales
Ratio to consolidated net sales (%)

China

34,08053.6

15,831
24.9

Asia
11,27517.8(Note) Net sales are on the basis of customer location and classified by country or region.

-8-

Other
2,373
3.7

Consolidated
63,560100.0