January 28, 2022

Third Quarter Earnings Report for Fiscal Year 2021, Ending March 31, 2022
[Japanese Standards] (Consolidated)
Company name:Securities code:
Representative:

Ryosan Company, Limited
Stock listing: First Section, Tokyo Stock Exchange
8140
URL https://www.ryosan.co.jp/
Kazuhiko Inaba, Representative Director, President
Hideo Yuasa, Executive Officer,
Inquiries:
TEL: +81-3-3862-2591
General Manager, Finance and Accounting Headquarters
Scheduled filing date of quarterly earnings report:
February 14, 2022
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 2021 (April 1, 2021 to December 31, 2021)(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
193,481
22.1
6,623
2021
First Three Quarters, Fiscal Year
158,467
(9.2)
2,915
2020
(Note) Comprehensive income
First Three Quarters, Fiscal Year 2021: 5,286 million yen (62.7%)
First Three Quarters, Fiscal Year 2020: 3,249 million yen (73.9%)%

Millions of yen%

Millions of yen

%

127.2

6,446

68.7

4,674

48.6

(1.9)

3,821

30.7

3,146

89.7

Basic earnings per
share

Diluted earnings per
share

Yen

Yen

First Three Quarters, Fiscal Year
2021
First Three Quarters, Fiscal Year2020

199.51―134.30―(2) Consolidated financial position
Total assets

Net assets

Net assets to total assets

Millions of yen

Millions of yen%

December 31, 2021
172,832
March 31, 2021
148,087(Reference) Shareholders’ equity
December 31, 2021: 92,084 million yen
March 31, 2021: 89,609 million yen

92,08489,60953.3
60.5

Net assets per share
Yen

3,930.50
3,824.82

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

Fiscal Year 2020―
Fiscal Year 2021―
Fiscal Year 2021 (Forecast)(Note) Revision of dividend forecasts: Yes

End of 2Q

End of 3Q

Yen

30.00
50.00

Yen

―
―

End of 4Q

Annual
Yen

Yen

70.00

100.0070.00

120.00Fiscal Year 2020

Interim dividend breakdown: 30 yen (ordinary)Fiscal Year 2020

Year-end dividend breakdown: 30 yen (ordinary), 40 yen (special)

Fiscal Year 2021

Interim dividend breakdown: 50 yen (ordinary)Fiscal Year 2021

Year-end dividend breakdown (forecast): 70 yen (ordinary)

3. Forecast of results for the fiscal year 2021 (April 1, 2021 to March 31, 2022)
Net sales
Millions of yen(% figures represent year-on-year increase or decrease)
Basic
Ordinary income
Profitearnings per
share

Operating income%

Millions of yen

Full Fiscal Year
260,000
18.2(Note) Revision of financial results forecasts: Yes

7,600

%

Millions of yen%

Millions of yen

%

64.2

7,400

44.5

5,200

13.4

Yen

222.03* Notes(1) Transfer of major subsidiaries during the scope of consolidation of these nine months ended December 31, 2021 (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 theperiod-end:

December 31,
2021

2. Total number of treasury shares at theDecember 31,

period-end:

2021

3. Average number of shares outstanding

First Threeduring the period (Cumulative total for the

Quarters, Fiscal

quarterly consolidated period)

Year 2021

25,000,000 shares

March 31, 2021

25,000,000 shares

1,571,701 shares

March 31, 2021

1,571,434 sharesFirst Three
23,428,409 shares

Quarters, Fiscal

23,428,919 sharesYear 2020

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
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 these First Three Quarters............................................................................................ 5
Consolidated Quarterly Statement of Comprehensive Income
Scope of Consolidation of these First Three Quarters............................................................................................ 6(3) Notes Regarding Consolidated Quarterly Financial Statements............................................................................................ 7(Notes Regarding Going Concern)........................................................................................................................................ 7(Notes Regarding Substantial Changes in Shareholders’ Equity).......................................................................................... 7(Changes in Accounting Principles) ...................................................................................................................................... 7(Segment Information) .......................................................................................................................................................... 8(Related to Recognition of Revenue) .................................................................................................................................... 10-1-

1. Qualitative Information Regarding this Quarterly Statement(1) Qualitative Information Concerning Consolidated Operating Results1) Overview
During the consolidated first three quarters of fiscal year 2021 (April 1 to December 31, 2021), the global
economy followed a recovery keynote. Although the COVID-19 pandemic continued to have an impact, progressin vaccination and relaxation of restrictions on activity contributed to the upturn.
With this global economic recovery in the background, the Japanese economy similarly rebounded as exportsrose, while capital investment in the manufacturing sector overall remained on a solid footing.
The electronics industry, Ryosan’s main field, suffered a significant contraction in the first half of the previous
consolidated fiscal year, particularly in sales to the automotive sector, but rebounded in a wide range of fields fromthe second half onward. Despite headwinds such as production adjustments prompted by shortages ofsemiconductors and electronic components, as well as a drop in demand from consumers staying home during the
pandemic, overall demand persisted at a high level.
In the consolidated first three quarters under review, net sales advanced to 193,481 million yen (up 22.1% fromthe same period of the previous fiscal year). Operating income more than doubled to 6,623 million yen (up127.2%), buoyed by factors such as net sales growth, favorable sales of high-value-added products for industrial
machinery and depreciation of the Japanese yen. Ordinary income improved to 6,446 million yen (up 68.7%).
Profit attributable to owners of parent rose to 4,674 million yen (up 48.6%).
The impact on business results of the application of the Accounting Standard for Revenue Recognition(Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020) of the Japanese generally
accepted accounting principles (J-GAAP) is negligible.
2) Business Segment Information
Ryosan has changed its classification of reporting segments, beginning in the consolidated first quarter of thisfiscal year. The comparisons with the previous consolidated first three quarters are based on the classification after
the change. For details, please refer to “Notice Concerning Changes in Reporting Segments,” published June 25,
2021.
a. Devices
Demand recovered in a wide range of applications, with sales volumes increasing year-on-year, lifting net sales
to 170,933 million yen (up 23.3% from the same period of the previous fiscal year). Operating income more thandoubled to 5,572 million yen (up 105.0%), lifted by factors such as favorable sales of high-value-added products.
b. Solutions
Sales expanded over the same period of the previous fiscal year, paced by results in the automotive sector.
Major projects related to facility equipment and communications also contributed. Net sales grew to 22,547
million yen (up 13.4% from the same period of the previous fiscal year), while operating income surged to 1,105
million yen (up 138.7%).
(2) Qualitative Information Concerning Consolidated Financial Position
As of December 31, 2021, total assets increased by 24,745 million yen compared with the end of the previous
fiscal year, to 172,832 million yen.
Also, net assets increased by 2,474 million yen compared with the end of the previous fiscal year, to 92,084
million yen, with the ratio of net assets to total assets being 53.3%.
The impact on Ryosan’s financial condition of the application of the Accounting Standard for Revenue
Recognition is negligible.
(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions
In view of business results up to and including the consolidated nine-month period under review, Ryosan has
revised its forecast of consolidated business results for the fiscal year ending March 31, 2022, which wasannounced on July 28, 2021.
For details, please refer to “Notice Concerning Revision of Business Results Forecast and Dividend Forecast” asof today.
-2-2. Consolidated Quarterly Financial Statements and Main Notes(1) Consolidated Quarterly Balance Sheet(Millions of yen)
Fiscal Year Ended
March 31, 2021
(As of March 31, 2021)

Third Quarter of the Fiscal
Year Ending March 31, 2022
(As of December 31, 2021)

ASSETS
Current assets
Cash and deposits

20,685

12,358Notes and accounts receivable –trade

71,08881,140Inventories

35,701

53,901

Accounts receivable – other

4,571

10,000

Other

720

737

Allowance for doubtful accounts

(278)

(90)

132,488

158,047

Buildings and structures, net

2,713

2,568

Land

5,299

5,178

Leased assets, net

471

440

Other, net

224

199

8,707

8,386

881

890

Investment securities

3,587

3,102

Deferred tax assets

330

248

Other

2,154

2,208

Allowance for doubtful accounts

(63)

(51)

Total investments and other assets

6,009

5,508

15,59814,785148,087

172,832

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, 2021
(As of March 31, 2021)

Third Quarter of the Fiscal
Year Ending March 31, 2022
(As of December 31, 2021)

LIABILITIESCurrent liabilities
Accounts payable - trade32,98439,795

Short-term loans payable

18,55133,879226

241

Accounts payable - other

1,985

1,818

Accrued expenses

1,439

689

Income taxes payable

844

982

Provision for bonuses

-

441

205

773

56,23678,621

Lease obligations

285

236

Deferred tax liabilities

485

647

Net defined benefit liability

1,409

1,186

Asset retirement obligations

25

23

Other

33

32

2,240

2,126

58,47780,747

Capital stock

17,69017,690Capital surplus

19,114

19,114Retained earnings

57,03958,901

Treasury shares(6,533)(6,534)

Total shareholders’ equity

87,31089,172

1,526

1,274

1

5

Foreign currency translation adjustment

824

1,695

Remeasurements of defined benefit plans

(52)

(62)

Total accumulated other comprehensive income

2,299

2,912

Total net assets

89,60992,084

Total liabilities and net assets

148,087

172,832

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
Deferred gains or losses on hedges-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)(Millions of yen)First Three Quarters of the
Fiscal Year Ended March 31,
2021

First Three Quarters of the
Fiscal Year Ending March 31,
2022(April 1, 2020 to Dec. 31, 2020)(April 1, 2021 to Dec. 31, 2021)

Net sales
Cost of Sales
Gross Profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity method
Commission fee
Rent income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity method
Miscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on sales of golf memberships
Compensation for customs duty
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on valuation of golf membership
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to owners of parent-5-

158,467
145,106
13,36010,445
2,915

193,481
175,609
17,871
11,247
6,623

27
65
680
135
15
40
132
1,097

22
68
23
39
77
232

160
30
191
3,821

121
200
71
16
409
6,446

53
254
106
413

0
57
1
59

1
1
4,233
1,087
3,146
3,146

19
19
6,486
1,812
4,674
4,674

(Consolidated Quarterly Statement of Comprehensive Income)(Scope of Consolidation of these First Three Quarters)(Millions of yen)First Three Quarters of the
Fiscal Year Ended March 31,
2021

First Three Quarters of the
Fiscal Year Ending March 31,
2022(April 1, 2020 to Dec. 31, 2020)(April 1, 2021 to Dec. 31, 2021)

3,146

4,674

431
(2)
(315)
(10)
102
3,249

(252)
4
870
(9)
612
5,286

3,249

5,286

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)
None(Changes in Accounting Principles)
Accounting Standard for Revenue Recognition
Beginning in the consolidated first quarter of this fiscal year, Ryosan applies the Accounting Standard for
Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020) of theJapanese generally accepted accounting principles (J-GAAP) (hereinafter referred to as “the AccountingStandard for Revenue Recognition”). Under this standard, revenue is recognized when Ryosan transfers control
of a promised good or service to the customer, in the amount Ryosan expects to receive in exchange for said
good or service.
In the past, a part of the amount paid to the customer was appropriated as cost of sales. With the adoption of
the Accounting Standard for Revenue Recognition, the accounting method is changed so that this amount is
subtracted from net sales.
In applying the Accounting Standard for Revenue Recognition, Ryosan follows the transitional handlingstipulated in the proviso in Paragraph 84 of the Accounting Standard for Revenue Recognition. The cumulative
financial effect of applying the new accounting principle retroactively to events before the beginning of theconsolidated first quarter of this fiscal year is added to or subtracted from the retained earnings at the beginningof the quarter, and the new accounting principle is applied from the balance at the beginning of the quarter
onward.
As a result, the impact of the application of the Accounting Standard for Revenue Recognition on thequarterly financial statements for the consolidated first three quarters under review is negligible.
In accordance with the transitional handling stipulated in Paragraph 28-15 of the Accounting Standard for
Quarterly Financial Reporting (March 31, 2020), a breakdown of the revenue generated from contracts withcustomers with respect to the previous consolidated first three quarters is not provided.

-7-

(Segment Information)
Segment Information
I. Consolidated First Three Quarters of the Fiscal Year Ended March 31, 2021
(April 1, 2020 to December 31, 2020)
1. Information Concerning Sales and Income or Loss Amount by Reporting Segment(Millions of yen)
Reporting Segment

Net sales
Sales to external customers
Internal sales or exchange
between segments
Total
Segment income (loss)

Total

Adjusted amount(Note 1)

Amounts shown on
consolidated quarterly
statement of income (Note 2)

Devices

Solutions

138,588

19,879158,467―

158,467

―

―

―

―

―

138,588
2,717

19,879462

158,467
3,180

―
(265)

158,467
2,915(Notes)1. The adjusted amount of minus 265 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.

II. Consolidated First Three Quarters of the Fiscal Year Ending March 31, 2022
(April 1, 2021 to December 31, 2021)
1. Information Concerning Sales and Income or Loss Amount by Reporting Segment and Breakdown of
Revenues(Millions of yen)
Reporting Segment
Devices
Net sales
Goods transferred at apoint in time
Revenue from contracts
with customers
Sales to external customers
Internal sales or exchange
between segments
Total
Segment income (loss)

Solutions

Total

Adjusted amount(Note 1)

Amounts shown on
consolidated quarterly
statement of income (Note 2)

170,933

22,547

193,481―

193,481

170,933

22,547

193,481―

193,481

170,933

22,547

193,481―

193,481

―

―

―

―

―

170,933
5,572

22,547
1,105

193,481
6,677

―
(54)

193,4816,623(Notes)1. The adjusted amount of minus 54 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.

2. Information Concerning Changes in Reporting Segments
Beginning in the consolidated first quarter of this fiscal year, in tandem with the reorganization of its businessheadquarters, Ryosan has revised the classification of its business segments. The reporting segments are changed
from the previous Semiconductor Business, Electronic-component Business and Electronic-equipment Business to
Device Business and Solution Business.
Segment information regarding the previous consolidated first three quarters is prepared and listed inaccordance with the classifications after the change in reporting segments.

-8-

Related Information
I. Information Concerning Sales and Income or Loss Amount by Sales Destination
Fiscal year 2020, first three quarters of the fiscal year ended March 31, 2021
(April 1, 2020 to December 31, 2020)(Millions of yen)

Eliminations
or corporate

Consolidated

158,467―

158,467

18

12,418(12,418)

―

6,885
110

170,885
2,441(12,418)473

158,467
2,915

Japan

Asia

Other

88,25863,341

6,867

12,212

187

100,470661

63,528
1,670

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

Fiscal year 2021, first three quarters of the fiscal year ending March 31, 2022
(April 1, 2021 to December 31, 2021)(Millions of yen)

Eliminations
or corporate

Consolidated

193,481―

193,48131

17,865(17,865)

―

8,141
198

211,346
6,311(17,865)
312

193,481
6,623

Japan

Asia

Other

103,853

81,5188,109

17,350482

121,204
2,671

82,000
3,440

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

II. Information Concerning Sales by Region
Fiscal year 2020, first three quarters of the fiscal year ended March 31, 2021
(April 1, 2020 to December 31, 2020)(Millions of yen)Japan
Net sales
Ratio to consolidated net sales (%)

81,35651.3

China
43,75627.6

Asia
25,846
16.3

Other
7,506
4.7

Consolidated
158,467
100.0(Note) Net sales are on the basis of customer location and classified by country or region.

Fiscal year 2021, first three quarters of the fiscal year ending March 31, 2022
(April 1, 2021 to December 31, 2021)(Millions of yen)Japan
Net sales
Ratio to consolidated net sales (%)

99,445
51.4

China
51,39426.6

Asia
34,016
17.6(Note) Net sales are on the basis of customer location and classified by country or region.

-9-

Other
8,624
4.5

Consolidated
193,481100.0

(Related to Recognition of Revenue)
The breakdown of revenue from contracts with customers is as listed in “Notes (Segment Information).”- 10 -