November 10, 2021

First Half 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:
November 15, 2021
Scheduled payment date of dividend:
December 8, 2021
Supplementary materials for the quarterly financial results:
Yes
Investor conference for the quarterly financial results:
Yes (for security analysts and institutional investors)(Millions of yen rounded down)

1. Consolidated results for the first half of fiscal year 2021 (April 1, 2021 to September 30, 2021)(1) Consolidated operating results (Cumulative)(% change compared with the same period of the previous fiscal year (YoY))
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
First Half, Fiscal Year 2021

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

124,247

27.8

4,097

227.2

4,059

142.3

2,909

95.9

1,252

(33.7)

1,675(10.8)

1,485

37.4

First Half, Fiscal Year 2020
97,191(16.5)(Note) Comprehensive income
First Half, Fiscal Year 2021: 2,773 million yen (108.6%)
First Half, Fiscal Year 2020: 1,329 million yen (290.0%)
Basic earnings per
share

Diluted earnings per
Share

Yen

First Half, Fiscal Year 2021
First Half, Fiscal Year 2020

Yen

124.1763.39――(2) Consolidated financial position
Total assets

Net assets

Net assets to total assets

Millions of yen

Millions of yen%

September 30, 2021
155,525
March 31, 2021
148,087(Reference) Shareholders’ equity
September 30, 2021: 90,742 million yen
March 31, 2021: 89,609 million yen

90,74289,60958.3
60.5

Net assets per shareYen

3,873.20
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: None

End of 2Q

End of 3Q

Yen

30.00
50.00

Yen

End of 4Q

Annual
Yen

Yen

―

70.00

100.00

―

30.00

80.00

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): 30 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 earnings
Ordinary income
Profitper share

Operating income% Millions of yen%

Millions of yen%

Full fiscal year
234,000
6.4
5,700(Note) Revision of financial results forecasts: None

23.1

5,800

13.2

Millions of yen

4,200

%

Yen

(8.4)

179.27* Notes(1) Transfer of major subsidiaries during the scope of consolidation of these six months ended September 30, 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:

September 30,
2021

2. Total number of treasury shares at the

September 30,

period-end:

2021

3. Average number of shares outstanding
during the period (Cumulative total for thequarterly consolidated period)First Half, Fiscal
Year 2021

25,000,000 shares

March 31, 2021

25,000,000 shares

1,571,639 shares

March 31, 2021

1,571,434 shares

23,428,443 sharesFirst Half, Fiscal
Year 2020

23,429,004 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
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 .................................................................................. 3(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 this First Half Period ........................................................................................................ 6
Consolidated Quarterly Statement of Comprehensive Income
Scope of Consolidation of this First Half Period ........................................................................................................ 7(3) Consolidated Quarterly Statements of Cash Flows ............................................................................................................... 8(4) Notes Regarding Consolidated Quarterly Financial Statements............................................................................................ 9(Notes Regarding Going Concern)........................................................................................................................................ 9(Notes Regarding Substantial Changes in Shareholders’ Equity).......................................................................................... 9(Changes in Accounting Principles) ...................................................................................................................................... 9(Segment Information) .......................................................................................................................................................... 10(Related to Recognition of Revenue) .................................................................................................................................... 12-1-

1. Qualitative Information Regarding this Quarterly Statement(1) Qualitative Information Concerning Consolidated Operating Results1) Overview
During the consolidated first half of fiscal year 2021 (April 1 to September 30, 2021), economic activity in the
global economy began to turn toward normalization, as vaccination against COVID-19 progressed.
Exports rose as economies recovered overseas, while the Japanese government implemented a variety ofstimulatory policies. The Japanese economy entered a gradual recovery footing.
The electronics industry, Ryosan’s main field, continued to enjoy a recovery in demand across a wide variety offields, following a trend continuing from the latter half of the previous consolidated fiscal year, after a significant
drop in the first half of the previous consolidated fiscal year, particularly in the automotive sector. However, shortagesof semiconductors and a peaking-out of stay-at-home demand emerged as risk factors.
In the consolidated first half under review, against the background described above, net sales improved to 124,247
million yen (up 27.8% from the same period of the previous fiscal year). Operating income more than tripled to 4,097
million yen (up 227.2%), lifted by increased revenue, brisk sales of relatively high-margin products and depreciationin the yen. Ordinary income more than doubled to 4,059 million yen (up 142.3%), while profit attributable to ownersof parent almost doubled to 2,909 million yen (up 95.9%).
The impact on business results of the application of the Accounting Standard for Revenue Recognition (AccountingStandards 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 this fiscal
year. The comparisons with the previous consolidated first half period 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
During the consolidated first half under review, demand recovered in a wide range of applications, with sales
volumes increasing significantly year-on-year. Net sales rose to 109,617 million yen (up 27.5% from the same
period of the previous fiscal year). Operating income surged to 3,463 million yen (up 172.1%), lifted by factors
such as sales of high-margin products.
b. Solutions
Sales expanded over the same period of the previous fiscal year, paced by results in the automotive sector, while
a major project in facility equipment also contributed. Net sales grew to 14,629 million yen (up 30.2% from thesame period of the previous fiscal year), while operating income surged to 662 million yen (up 231.3%).

-2-

(2) Qualitative Information Concerning Consolidated Financial Position
As of September 30, 2021, total assets increased by 7,437 million yen compared with the end of the previous fiscal
year, to 155,525 million yen.
Also, net assets increased by 1,132 million yen compared with the end of the previous fiscal year, to 90,742 million
yen, with the ratio of net assets to total assets being 58.3%.
The impact on Ryosan’s financial condition of the application of the Accounting Standard for Revenue Recognitionis negligible.
2) Overview of Cash Flows
As of September 30, 2021, cash and cash equivalents decreased by 4,239 million yen compared with the end of
the previous fiscal year, to 16,396 million yen.
Net cash provided by (used in) operating activities
Regarding cash flow from operating activities in this consolidated first half period, funds in total decreased by
5,134 million yen. Profit before income taxes was 4,041 million yen, while notes and accounts payable–trade
increased by 3,081 million yen and inventories rose by 11,292 million yen. For a comparison, in net cash fromoperating activities in the same period of the previous fiscal year, funds had decreased by 6,313 million yen.
Net cash provided by (used in) investing activities
Regarding cash flow from investing activities in this consolidated first half period, funds in total decreased by
172 million yen due to such factors as purchase of insurance funds. For a comparison, in net cash from investing
activities in the same period of the previous fiscal year, funds had increased by 351 million yen.
Net cash provided by (used in) financing activities
In cash flow from financing activities in this consolidated first half period, funds in total increased by 1,121
million yen. Short-term loans payable increased by 2,851 million yen, while cash dividends paid amounted to 1,637
million yen. For a comparison, in net cash from financing activities in the same period of the previous fiscal year,
funds had increased by 2,030 million yen.
(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions
The forecast of consolidated business results is unchanged from the forecast published on July 28, 2021.

-3-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)

Second Quarter of the Fiscal
Year Ending March 31, 2022
(As of September 30, 2021)

ASSETS
Current assets
Cash and deposits

20,685

16,396

Notes and accounts receivable –trade

71,08871,379Inventories

35,70147,060Accounts receivable – other

4,571

4,649

Other

720

888

Allowance for doubtful accounts

(278)

(211)

132,488

140,161

Buildings and structures, net

2,713

2,673

Land

5,299

5,283

Leased assets, net

471

465

Other, net

224

205

8,707

8,628

881

827

Investment securities

3,587

3,387

Deferred tax assets

330

313

Other

2,154

2,267

Allowance for doubtful accounts

(63)

(61)

Total investments and other assets

6,009

5,907

15,59815,363148,087

155,525

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, 2021
(As of March 31, 2021)

Second Quarter of the Fiscal
Year Ending March 31, 2022
(As of September 30, 2021)

LIABILITIESCurrent liabilities
Accounts payable – trade32,98436,079

Short-term loans payable

18,551

21,633

226

250

Accounts payable – other

1,985

1,869

Accrued expenses

1,439

1,378

Income taxes payable

844

1,064

Other

205

448

56,23662,724

Lease obligations

285

250

Deferred tax liabilities

485

487

Net defined benefit liability

1,409

1,262

Asset retirement obligations

25

25

Other

33

32

2,240

2,057

58,47764,782

Capital stock

17,69017,690Capital surplus

19,114

19,114Retained earnings

57,03958,308Treasury shares(6,533)(6,534)

Total shareholders’ equity

87,31088,578

1,526

1,440

1

2

Foreign currency translation adjustment

824

779

Remeasurements of defined benefit plans

(52)

(58)

Total accumulated other comprehensive income

2,299

2,164

Total net assets

89,60990,742

Total liabilities and net assets

148,087

155,525

Lease obligations

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-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 Half Period)(Millions of yen)First Half of the Fiscal Year
Ended March 31, 2021

First Half of the Fiscal YearEnding March 31, 2022

(April 1, 2020 to Sept. 30, 2020)(April 1, 2021 to Sept. 30, 2021)

97,19189,032
8,159
6,907
1,252

124,247
112,621
11,625
7,528
4,097

23
36
435
27
97
620

18
37
27
59
142

116
55
24
197
1,675

76
4
86
13
180
4,059

254
106
360

1
1

1
1
2,034
549
1,485
1,485

19
19
4,041
1,132
2,909
2,909

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
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 golf memberships
Gain on sales of investment securities
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-6-

(Consolidated Quarterly Statement of Comprehensive Income)(Scope of Consolidation of this First Half Period)(Millions of yen)First Half of the Fiscal Year
Ended March 31, 2021

First Half of the Fiscal YearEnding March 31, 2022

(April 1, 2020 to Sept. 30, 2020)(April 1, 2021 to Sept. 30, 2021)

1,485

2,909

125
(1)
(272)
(6)
(155)
1,329

(85)
1
(44)
(6)
(135)
2,773

1,329

2,773

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) Consolidated Quarterly Statements of Cash Flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using equity
methodLoss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Decrease (increase) in accounts receivable - other
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchases of investment securities
Proceeds from sales of investment securities
Decrease (increase) in time deposits
Proceeds from sales of membership
Proceeds from distribution of investment in partnerships
Purchase of insurance funds
Proceeds from cancellation of insurance funds
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of lease obligations
Purchase of treasury shares
Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period-8-First Half of the Fiscal Year
Ended March 31, 2021

First Half of the Fiscal YearEnding March 31, 2022

(April 1, 2020 to Sept. 30, 2020)(April 1, 2021 to Sept. 30, 2021)

2,034
306
51
(84)
(59)
116

4,041
319
19
(73)
(144)
(56)
76

55

86

(254)
(1,966)(3,532)(2,187)750(992)(5,761)
59
(121)
(490)
(6,313)(239)(11,292)
3,081
(72)
2
(4,250)
55
(77)
(861)
(5,134)

(157)
101
(51)
(15)
340
3
(108)
239
351

(79)
(31)
(15)
48
3
4
(102)
(172)

2,823
(88)
(0)
(703)
2,030
(58)
(3,989)24,501
20,512

2,851
(92)
(0)
(1,637)
1,121(53)(4,239)20,636
16,396

(4) 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 Accounting Standard
for Revenue Recognition”). Under this standard, revenue is recognized when Ryosan transfers control of apromised good or service to the customer, in the amount Ryosan expects to receive in exchange for said good orservice.
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 the quarterly
financial statements for the consolidated first half 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 half is not provided.

-9-

(Segment Information)
Segment Information
I. Consolidated First Half of the Fiscal Year Ended March 31, 2021
(April 1, 2020 to September 30, 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

85,95911,232

97,191―

97,191

―

―

―

―

―

85,959
1,272

11,232200

97,191
1,472

―
(220)

97,191
1,252(Notes)1. The adjusted amount of minus 220 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 Half of the Fiscal Year Ending March 31, 2022
(April 1, 2021 to September 30, 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
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)

109,617

14,629124,247―

124,247

109,617

14,629124,247―

124,247

―

―

―

―

―

109,617
3,463

14,629662

124,247
4,126

―
(28)

124,247
4,097(Notes)1. The adjusted amount of minus 28 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 half is prepared and listed in accordance withthe classifications after the change in reporting segments.

- 10 -

Related Information
I. Information Concerning Sales and Income or Loss Amount by Sales Destination
Fiscal year 2020, first half of the fiscal year ended March 31, 2021
(April 1, 2020 to September 30, 2020)(Millions of yen)

Eliminations
or corporate

Consolidated

97,191―

97,191

2

7,649(7,649)

―

3,681
14

104,840976(7,649)275

97,191
1,252

Japan

Asia

Other

Total

54,66538,847

3,679

7,491

155

62,15623

39,002939

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 2021, first half of the fiscal year ending March 31, 2022
(April 1, 2021 to September 30, 2021)(Millions of yen)

Eliminations
or corporate

Consolidated

124,247―

124,247

14

11,172(11,172)

―

5,303
118

135,420
3,966(11,172)131

124,247
4,097

Japan

Asia

Other

67,27351,685

5,288

10,957200

78,2301,759

51,886
2,088

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, Thailand, China, South Korea, etc.
Other: United States, etc.

II. Information Concerning Sales by Region
Fiscal year 2020, first half of the fiscal year ended March 31, 2021
(April 1, 2020 to September 30, 2020)(Millions of yen)Japan
Net sales
Ratio to consolidated net sales (%)

China

49,91851.4

27,58728.4

Asia
15,461
15.9

Other
4,223
4.3

Consolidated
97,191100.0(Note) Net sales are on the basis of customer location and classified by country or region.

Fiscal year 2021, first half of the fiscal year ending March 31, 2022
(April 1, 2021 to September 30, 2021)(Millions of yen)Japan
Net sales
Ratio to consolidated net sales (%)

China

63,40751.0

33,438
26.9

Asia
21,71617.5(Note) Net sales are on the basis of customer location and classified by country or region.

- 11 -

Other
5,685
4.6

Consolidated
124,247
100.0

(Related to Recognition of Revenue)
The breakdown of revenue from contracts with customers is as listed in “Notes (Segment Information).”- 12 -