January 29, 2019

Third 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:
February 14, 2019
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 three quarters of fiscal year 2018 (April 1, 2018 to December 31, 2018)(1) Consolidated operating results (Cumulative)
Net sales(% change compared with the same period of the previous fiscal year (YoY))
Profit attributable toOperating income
Ordinary income
owners of parent

Millions of yen%

Millions of yen

First Three Quarters, Fiscal Year
192,248
1.2
4,330
2018
First Three Quarters, Fiscal Year
189,911
19.2
4,916
2017
(Note) Comprehensive income
First Three Quarters, Fiscal Year 2018: 1,778 million yen (-62.3%)
First Three Quarters, Fiscal Year 2017: 4,717 million yen (68.8%)
Basic earnings per share%

Millions of yen%

Millions of yen%(11.9)

3,155(35.3)

2,198(35.5)

36.4

4,875

40.8

3,408

43.8

Diluted earnings per share

YenFirst Three Quarters, Fiscal Year 2018
First Three Quarters, Fiscal Year 2017

Yen

91.69
130.22――(2) Consolidated financial position
Total assets

Net assets

Net assets to total assets

Millions of yen

Millions of yen%

December 31, 2018
158,469
March 31, 2018
162,257(Reference) Shareholders’ equity
December 31, 2018: 88,145 million yen
March 31, 2018: 94,331 million yen

88,14594,331

55.6
58.1

Net assets per shareYen

3,762.15
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

75.00
75.00

Annual

Yen

―
―

Total
Yen

Yen

75.00

150.0075.00

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: 50 yen (ordinary), 25 yen (special)

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%

Millions of yen%

Millions of yen%

Full Fiscal Year
254,000(0.0)
5,600(Note) Revision of financial results forecasts: None

(1.2)

4,000

(37.5)

2,800(37.5)%

Yen

117.21* Notes(1) Transfer of major subsidiaries during the scope of consolidation of these nine months ended December 31, 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 theDecember 31, 2018

25,000,000 shares

March 31, 2018

28,500,000 shares

December 31, 2018

1,570,311 shares

March 31, 2018

4,014,862 sharesperiod-end:
2. Total number of treasury shares at theperiod-end:
3. Average number of shares outstanding

First Threeduring the period (Cumulative total for the

Quarters, Fiscal

quarterly consolidated period)

Year 2018

First Three
23,981,920 shares

Quarters, Fiscal

26,174,456 sharesYear 2017

This 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 3, "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 .................................................. 3
2. Consolidated Quarterly Financial Statements and Main Notes ........................................................................................................ 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 these First Three Quarters ................................................................................................ 6
Consolidated Quarterly Statement of Comprehensive Income
Scope of Consolidation of these 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(Additional Information) ..................................................................................................................................................... 8(Segment Information) .......................................................................................................................................................... 8-1-1. Qualitative Information Regarding this Quarterly Statement(1) Qualitative Information Concerning Consolidated Operating Results1) Overview
During this consolidated nine-month period (April 1, 2018 to December 31, 2018), the global economy
maintained modest growth overall, despite increased uncertainties including the trade frictions between the UnitedStates and China, slowing of the Chinese economy, and higher volatility in the stock and foreign exchange markets.
The Japanese economy was affected by these factors, but expanded moderately, supported by increased
consumer spending coming from improved employment rates and wages, as well as steady domestic demand from
capital expenditure and public investment.
The electronics industry had been solid until the fall of 2018. However, uncertainties over the future course of
the industry have emerged, such as a recent decrease in demand mainly for industrial equipment and in-vehicle
electrical equipment. Ryosan recently issued its 10th Medium-Term Business Plan (FY2018 to FY2020) with“growth” and “speed” defined as its fundamental stance, to quickly respond to changes in the management
environment and to promote electronics system coordination. We are aiming to achieve sustainable growth in linewith the Plan.
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, andthe "infrastructure strategy" will institute qualitative enhancement of corporate governance and strengthen the
management infrastructure, both of which are indispensable in securing continuous growth.
In the midst of these circumstances, due to factors such as the consolidation of Hong Kong's Edal Electronics
Co., Ltd. ("Edal") as a subsidiary in this fiscal year following its acquisition in 2017, net sales in this nine-monthconsolidation period were 192,248 million yen (up 1.2% from the same period of the previous fiscal year) andoperating income was 4,330 million yen (down 11.9%). As a result of the revaluation of liabilities denominated inforeign currencies, ordinary income was 3,155 million yen (down 35.3%) and profit attributable to owners ofparent was 2,198 million yen (down 35.5%).
2) Business Segment Informationa. Semiconductors
Ryosan sells system LSIs, discrete semiconductors and memory, and develops system LSIs on a contract basis.
In this nine-month consolidation period, due to the consolidation of Edal and inventory revaluations, net sales
were 115,116 million yen (up 4.7% from the same period of the previous fiscal year), and operating income was2,155 million yen (down 16.4%).
b. Electronic Components
Ryosan sells electromechanical components, display devices and power supplies. In the nine-monthconsolidation period, a slowdown in businesses for consumers was partially offset by increased transactions inhigh-value-added parts. Net sales were 59,836 million yen (down 2.7% from the same period of the previous
fiscal year), while operating income was 2,233 million yen (up 2.8%).
c. Electronic Equipment
Ryosan sells systems equipment and facilities equipment. In this nine-month consolidation period, due tofactors such as the end of large-scale business projects, net sales were 17,295 million yen (down 6.5% from thesame period of the previous fiscal year), and operating income was 273 million yen (down 29.2%).
(2) Qualitative Information Concerning Consolidated Financial Position
As of December 31, 2018, total assets decreased by 3,787 million yen compared with the end of the previous
fiscal year, to 158,469 million yen.
Also, net assets decreased by 6,185 million yen compared with the end of the previous fiscal year, to 88,145
million yen, with the ratio of net assets to total assets being 55.6%.
(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions
There is no change in forecasts for the full fiscal year ending March 31, 2019 (announced on October 24, 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)

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

13,547

16,112

Notes and accounts receivable - trade75,53866,573Inventories

44,01550,099Accounts receivable - other

10,249

7,916

Other

242

503

Allowance for doubtful accounts

(42)

(71)

143,550

141,134

Buildings and structures, net

3,168

3,097

Land

6,189

6,145

Leased assets, net

576

572

Other, net

155

143

10,090

9,959

903

1,349

Investment securities

5,310

3,609

Deferred tax assets

296

302

Other

2,238

2,229

Allowance for doubtful accounts

(132)

(115)

Total investments and other assets

7,713

6,025

18,707

17,334

162,257

158,469

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)

Third Quarter of the Fiscal
Year Ending March 31, 2019
(As of December 31, 2018)

LIABILITIESCurrent liabilities
Accounts payable - trade

36,35536,295

Short-term loans payable

23,95928,265164172

Accounts payable - other

1,714

1,365

Accrued expenses

1,362

594

Income taxes payable

1,598

298

Provision for bonuses

-

433

183

387

65,337

67,810

Lease obligations

475

464

Deferred tax liabilities

247

239

Net defined benefit liability

1,782

1,725

Asset retirement obligations

31

31

Other

52

52

2,589

2,512

67,92670,323

Capital stock

17,69017,690Capital surplus

19,114

19,114Retained earnings

72,74056,291

Treasury shares(17,215)(6,531)

Total shareholders’ equity

92,32986,564

1,923

1,243

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

52

334

Remeasurements of defined benefit plans

25

3

2,001

1,581

Total net assets

94,331

88,145

Total liabilities and net assets

162,257

158,469

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 these First Three Quarters)

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
Extraordinary losses
Loss on valuation of golf membership
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to owners of parent

First Three Quarters of the Fiscal
Year Ended March 31, 2018
(Apr. 1, 2017 to Dec. 31, 2017)
189,911
174,173
15,737
10,821
4,916(Millions of yen)First Three Quarters of the Fiscal
Year Ending March 31, 2019
(Apr. 1, 2018 to Dec. 31, 2018)
192,248
176,286
15,962
11,631
4,330

28
70
80
23
82
285

17
81
35
132
266

263
31
30
325
4,875

521
196
8
703
11
1,440
3,155

65
5
70

0
44
45

0
0
4,946
1,537
3,408
3,408

3,201
1,002
2,198
2,198

-5-

(Consolidated Quarterly Statement of Comprehensive Income)(Scope of Consolidation of these First Three Quarters)(Millions of yen)

ProfitOther comprehensive income

First Three Quarters of the Fiscal
Year Ended March 31, 2018
(Apr. 1, 2017 to Dec. 31, 2017)
3,408

First Three Quarters of the Fiscal
Year Ending March 31, 2019
(Apr. 1, 2018 to Dec. 31, 2018)
2,198

680
0
641
(13)
1,309
4,717

(680)
0
281
(22)
(420)
1,778

4,717

1,778

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 thisnine-month consolidation period 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
the consolidated first quarter of this fiscal year, deferred tax assets are classified as "investments and otherassets" and deferred tax liabilities are classified as "non-current liabilities."(Segment Information)
I. Information Concerning Sales and Income or Loss Amount by Reporting Segment
The consolidated first three quarters of the fiscal year ended March 31, 2018
(April 1, 2017 to December 31, 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)

109,928

61,487

18,495

189,911―

189,911

―

―

―

―

―

―

109,9282,578

61,4872,171

18,495387

189,911
5,137

―
(221)

189,9114,916(Notes)1. The adjusted amount of minus 221 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 the consolidated quarterly statement of income.

The consolidated first three quarters of the fiscal year ending March 31, 2019
(April 1, 2018 to December 31, 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)

115,116

59,836

17,295

192,248―

192,248

―

―

―

―

―

―

115,1162,155

59,836
2,233

17,295273

192,248
4,662

―
(332)

192,248
4,330(Notes)1. The adjusted amount of minus 332 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 the consolidated quarterly statement of income.

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

Eliminations
or corporate

Consolidated

189,911―

189,911

3

14,136(14,136)

―

6,519
188

204,048
4,536(14,136)379

189,911
4,916

Japan

Asia

Other

Total

115,906

67,4896,515

14,019113

129,926
1,979

67,602
2,367

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

Fiscal Year 2018, first three quarters of the fiscal year ending March 31, 2019
(April 1, 2018 to December 31, 2018)(Millions of yen)

Eliminations
or corporate

Consolidated

192,248―

192,248

0

15,592(15,592)

―

7,060
206

207,840
3,889(15,592)440

192,248
4,330

Japan

Asia

Other

Total

108,239

76,9487,060

15,395

195

123,635
1,408

77,144
2,274

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

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

108,074
56.9

China
42,86222.6

Asia
32,364
17.0

Other
6,609
3.5

Consolidated
189,911100.0(Note) Net sales are on the basis of customer location and classified by country or region.

Fiscal Year 2018, first three quarters of the fiscal year ending March 31, 2019
(April 1, 2018 to December 31, 2018)(Millions of yen)
Net sales
Ratio to consolidated net sales (%)

Japan
102,241
53.2

China
48,12325.0

Asia
34,76818.1(Note) Net sales are on the basis of customer location and classified by country or region.

-8-

Other
7,114
3.7

Consolidated
192,248100.0