July 30, 2021

First 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:
August 13, 2021
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 2021 (April 1, 2021 to June 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
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

61,316

40.9

2,165

674.6

2,221

416.0

1,603

231.2

279

(66.0)

430(53.1)

484(27.2)First Quarter, Fiscal Year 2021

First Quarter, Fiscal Year 2020
43,508(24.9)(Note) Comprehensive income
First Quarter, Fiscal Year 2021: 1,434 million yen (91.0%)
First Quarter, Fiscal Year 2020: 750 million yen (―%)
Basic earnings per
share

Diluted earnings per
share

Yen

First Quarter, Fiscal Year 2021
First Quarter, Fiscal Year 2020

Yen

68.45
20.66

―
―

(2) Consolidated financial position
Total assets

Net assets

Net assets to total assets

Millions of yen

Millions of yen%

149,138
148,087

89,40489,60959.9
60.5

June 30, 2021
March 31, 2021
(Reference) Shareholders’ equity
June 30, 2021: 89,404 million yen
March 31, 2021: 89,609 million yen

Net assets per shareYen

3,816.06
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

Yen

End of 4Q

Annual
Yen

Yen

30.00

―

70.00

100.00

30.00

―

30.00

60.00

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 (forecast): 30 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

Operating income(% figures represent year-on-year increase or decrease)
Basic earnings
Ordinary income
Profitper share% Millions of yen%

Millions of yen%

Interim period
121,000
24.5
3,600
Full fiscal year
234,000
6.4
5,700(Note) Revision of financial results forecasts: None

187.5
23.1

3,700
5,800

120.8
13.2

Millions of yen

2,700
4,200

%

Yen

81.8
(8.4)

115.24179.27* Notes(1) Transfer of major subsidiaries during the scope of consolidation of these three months ended June 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 theJune 30, 2021

25,000,000 shares

March 31, 2021

25,000,000 shares

June 30, 2021

1,571,528 shares

March 31, 2021

1,571,434 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 2021

23,428,503 sharesFirst Quarter,
Fiscal Year 2020

23,429,084 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 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(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 fiscal quarter under review (April 1 to June 30, 2021), economic activity in the global
economy began to turn toward normalization, as vaccination against COVID-19 progressed. As the economy
recovered overseas, Japan’s economy entered a gradual recovery footing, led by rising exports.
The electronics industry, Ryosan’s main field, continued to enjoy a recovery in demand across a wide variety of
applications, in a trend continuing from the latter half of the previous consolidated fiscal year. However, shortages ofsemiconductors emerged as a risk factor.
In the first quarter, against the background described above, net sales improved to 61,316 million yen (up 40.9%
from the same period of the previous fiscal year). Operating income soared to 2,165 million yen (up 674.6%), liftedby brisk sales of relatively high-margin products, reductions in inventory-related expenses as inventory turnoverquickened and depreciation in the yen. Ordinary income multiplied to 2,221 million yen (up 416.0%), while profit
attributable to owners of parent surged to 1,603 million yen (up 231.2%).
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 underreview. The comparisons with the previous consolidated first quarter 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 quarter under review, demand recovered in a wide range of applications, with sales
volumes increasing significantly year-on-year. Net income rose to 54,670 million yen (up 43.2% from the same
period of the previous fiscal year). Operating income surged to 1,876 million yen (up 297.2%), lifted by factors
such as sales of high-margin products.
b. Solutions
Business in the automotive sector maintained a steady trend, while major projects in facility equipment also
contributed. Net income rose to 6,646 million yen (up 24.5% from the same period of the previous fiscal year),while operating income multiplied to 312 million yen (up 189.2%).
(2) Qualitative Information Concerning Consolidated Financial Position
As of June 30, 2021, total assets increased by 1,051 million yen compared with the end of the previous fiscal year,
to 149,138 million yen.
Also, net assets decreased by 205 million yen compared with the end of the previous fiscal year, to 89,404 million
yen, with the ratio of net assets to total assets being 59.9%.
The impact on Ryosan’s financial condition of the application of the Accounting Standard for Revenue Recognitionis negligible.
(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.

-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)

First Quarter of the Fiscal
Year Ending March 31, 2022
(As of June 30, 2021)

ASSETS
Current assets
Cash and deposits

20,685

15,618Notes and accounts receivable –trade

71,08871,948Inventories

35,70140,284

Accounts receivable – other

4,571

5,373

Other

720

871

Allowance for doubtful accounts

(278)

(236)

132,488

133,858

Buildings and structures, net

2,713

2,684

Land

5,299

5,299

Leased assets, net

471

435

Other, net

224

216

8,707

8,636

881

840

Investment securities

3,587

3,383

Deferred tax assets

330

318

Other

2,154

2,160

Allowance for doubtful accounts

(63)

(60)

Total investments and other assets

6,009

5,802

15,59815,279148,087

149,138

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)

First Quarter of the Fiscal
Year Ending March 31, 2022
(As of June 30, 2021)

LIABILITIESCurrent liabilities
Accounts payable - trade32,98433,606

Short-term loans payable

18,551

19,294226

228

Accounts payable - other

1,985

2,142

Accrued expenses

1,439

595

Provision for bonuses-

402

Income taxes payable

844

665

Other

205

579

56,23657,514

Lease obligations

285

245

Deferred tax liabilities

485

574

Net defined benefit liability

1,409

1,341

Asset retirement obligations

25

25

Other

33

32

2,240

2,219

58,47759,734

Capital stock

17,69017,690Capital surplus

19,114

19,114Retained earnings

57,03957,002

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

Total shareholders’ equity

87,31087,273

1,526

1,402

1

0

Foreign currency translation adjustment

824

781

Remeasurements of defined benefit plans

(52)

(54)

Total accumulated other comprehensive income

2,299

2,130

Total net assets

89,60989,404

Total liabilities and net assets

148,087

149,138

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-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, 2021

First Quarter of the Fiscal YearEnding March 31, 2022

(April 1, 2020 to June 30, 2020)(April 1, 2021 to June 30, 2021)

43,50839,701
3,806
3,527
279

61,31655,422
5,894
3,728
2,165

6
33
128
13
42
225

5
35
63
13
22
140

66
2
5

35
46
2

74
430

84
2,221

254
76
330

1
1

1
1
759
275
484
484

2,222
618
1,603
1,603

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
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
Loss on valuation of golf membership
Total extraordinary losses
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, 2021

First Quarter of the Fiscal YearEnding March 31, 2022

(April 1, 2020 to June 30, 2020)(April 1, 2021 to June 30, 2021)

484

1,603

118
0
151
(3)
266
750

(123)
(0)
(42)
(2)
(168)
1,434

750

1,434

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 under review, Ryosan applies the Accounting Standard for Revenue
Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020) of the Japanesegenerally 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 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 under review is added to or subtracted from the retained earnings at the beginning of thequarter, 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 quarter 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 quarter is not provided.

-7-

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

38,1705,337

43,508―43,508

―

―

―

―

―

38,170
472

5,337
107

43,508
580

―
(300)

43,508279(Notes)1. The adjusted amount of minus 300 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 Quarter of the Fiscal Year Ending March 31, 2022
(April 1, 2021 to June 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)

54,6706,646

61,316―61,31654,6706,646

61,316―61,316

―

―

―

―

―

54,670
1,876

6,646
312

61,316
2,188

―
(22)

61,3162,165(Notes)1. The adjusted amount of minus 22 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 under review, 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
the Device Business and Solution Business.
Segment information regarding the previous consolidated first quarter is prepared and listed in accordance withthe 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 quarter of the fiscal year ended March 31, 2021
(April 1, 2020 to June 30, 2020)(Millions of yen)

Eliminations
or corporate

Consolidated

43,508―43,508―3,680(3,680)

―

899
(44)

47,189143(3,680)135

43,508
279

Japan

Asia

Other

Total

25,986

16,622

899

3,553

127

29,540(20)

16,749208

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 quarter of the fiscal year ending March 31, 2022
(April 1, 2021 to June 30, 2021)(Millions of yen)

Eliminations
or corporate

Consolidated

61,316―61,316

5

5,518(5,518)

―

2,750
48

66,8352,112(5,518)53

61,316
2,165

Japan

Asia

Other

Total

32,89425,677

2,744

5,447

65

38,342980

25,742
1,084

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 quarter of the fiscal year ended March 31, 2021
(April 1, 2020 to June 30, 2020)(Millions of yen)Japan
Net sales
Ratio to consolidated net sales (%)

China

24,05955.3

12,250
28.2

Asia
6,205
14.3

Other
993
2.3

Consolidated
43,508100.0(Note) Net sales are on the basis of customer location and classified by country or region.

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

China

31,462
51.3

15,66925.6

Asia
11,21618.3(Note) Net sales are on the basis of customer location and classified by country or region.

-9-

Other
2,967
4.8

Consolidated
61,316100.0

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