January 30, 2015

Third Quarter Consolidated Earnings Report for Fiscal 2014, Ending March 31, 2015
[Japanese Standards] (Consolidated)
Company name:
Ryosan Company, Limited
Stock listing: First Section, Tokyo Stock Exchange
Securities code:
8140
URL http://www.ryosan.co.jp
Representative
Naoto Mimatsu, Representative Director and President
Inquiries:
Hidekazu Sano, Director and General Manager, Financing and Accounting Headquarters
TEL: 03-3862-2591
Scheduled filing date of quarterly earnings report:
February 13, 2015
Scheduled payment date of dividend:―
Supplementary materials for the quarterly financial results:
No
Investor conference for the quarterly financial results:
No(Millions of yen rounded down)

1. Consolidated results for the first three quarters of fiscal 2014 (April 1, 2014 to December 31, 2014)(1) Consolidated operating results (Cumulative)(% figures represent year-on-year increase or decrease)
Net sales

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

176,634

1.5

4,499

18.7

3,998

11.2

2,426

5.3

174,034
11.6
3,790
36.7
(Note) Comprehensive income
First Three Quarters, Fiscal 2014: 5,781 million yen (22.0%)
First Three Quarters, Fiscal 2013: 4,738 million yen (81.0%)
Net income per
Net income per share
share
after dilution

3,595

10.1

2,303

15.8

First Three Quarters, Fiscal 2014
First Three Quarters, Fiscal 2013

Yen

Yen

77.13
72.70

―
―

Total assets

Net assets

First Three Quarters, Fiscal 2014
First Three Quarters, Fiscal 2013

(2) Consolidated financial position
Net assets to total assets

Net assets per share

Millions of yen

Millions of yen%

Yen

December 31, 2014
173,219
March 31, 2014
169,247(Reference) Shareholders equity:
December 31, 2014: 122,104 million yen
March 31, 2014: 118,729 million yen

122,104
118,72970.5
70.2

3,880.88
3,773.51

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

End of 2Q

Yen

End of 3Q

Yen

Fiscal 2013―
Fiscal 2014―
Fiscal 2014 (Forecast)(Note) Revision of dividend forecasts:
No

30.00
35.00

Annual

Yen

Total
Yen

Yen

―

30.00

60.00

―

35.00

70.00

3. Forecast of results for the fiscal 2014 (April 1, 2014 to March 31, 2015)
Net sales
Millions of yen(% figures represent year-on-year increase or decrease)
Net income per
Ordinary income
Net income
share

Operating income%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

Full Fiscal Year
229,000(3.9)(Note) Revision of financial results forecasts:

5,400

5.0

5,300

4.9

3,400

5.5

108.06No

* Notes(1) Transfer of major subsidiaries during these nine months ended December 31, 2014 (transfer of specified subsidiaries in line withchanges in the consolidated range):No－ (Company name:)(2) Applying accounting procedures specific to preparing quarterly financial statements:

No

New:

－ (Company name:)

Excluded:(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:2) Changes in items of accounting principles other than 1) above:3) Changes in accounting estimate:4) Restatement:

Yes

No

No

No

(4) Number of shares issued and outstanding (common stock)
1. Total number of shares issued andoutstanding (including treasury stock) at

December 31, 2014

31,500,000 sharesFiscal 2013

31,500,000 shares

December 31, 2014

36,893 sharesFiscal 201336,209 sharesthe period-end
2. Total number of treasury stock at theperiod-end
3. Average number of shares outstanding
during the period (Cumulative total forthe quarterly consolidated period)First three quarters,
Fiscal 2014

31,463,500 sharesFirst three quarters,
Fiscal 2013

31,689,605 shares

Indication regarding the implementation status of the quarterly review procedure
This quarterly consolidated earnings report is not subject to the quarterly review procedures pursuant to the Financial
Instruments and Exchange Act. As of the disclosure of this earnings report, the procedures for reviewing quarterly financial
statements pursuant to the Financial Instruments and Exchange Act are in progress.
Caution with respect to forward-looking statements:(Notes on forward-looking statements)
The estimates referred in this report were made based on the information available as of the date of this release. The
Company does not promise the realization of the estimates in this report. The Actual results could significantly differ fromthe 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 these
Quarterly Statements (3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions.”

○Table of contents of the appendix
1.

Qualitative Information Regarding these Quarterly Statements ............................................................................. 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 ........................................ 22.

Items Regarding Summary Information (Notes) ................................................................................................ 3(1) Transfer of Major Subsidiaries during the Scope of Consolidation of these First Three Quarters ................................ 3(2) Applying Accounting Procedures Specific to Preparing Quarterly Financial Statements .......................................... 3(3) Changes in Accounting Principles, Changes in Accounting Estimates and Restatements .......................................... 3

3.

Consolidated Quarterly Financial Statements ................................................................................................... 4(1) Consolidated Quarterly Balance Sheets ...................................................................................................... 4(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Comprehensive Statements of Income .......... 6
Consolidated Quarterly Statements of Income
Scope of Consolidation of these First Three Quarters ............................................................................ 6
Consolidated Quarterly Comprehensive Statements of 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(Segment Information) .......................................................................................................................... 84.

Supplementary Information ........................................................................................................................ 9(1) Geographical Segment Information........................................................................................................... 9(2) Overseas sales .................................................................................................................................... 10-1-

1. Qualitative Information Regarding these Quarterly Statements(1) Qualitative Information Concerning Consolidated Operating Results1) Overview
As to the global economy in these consolidated first three quarters (April 1, 2014 to December 31, 2014), theslow recovery was continued in general, though it varied among nations. In the U.S. economy, as consumer
spending was brisk and housing market made a gradual recovery, favorable condition continued. However, in
Europe, economic recovery has not gathered sufficient strength to burst out of the recession. Emerging economies
such as China showed high growth compared to advanced economies, though they still remained on a slower track.
Meanwhile, the Japanese economy shrank due to the reaction to the rush of demand caused by the consumption tax
hike.
Within this economic environment, the electronics industry recorded a healthy growth in such fields as car
electronics and FA.
Under such circumstances, the Ryosan Group pursues changing business model and sustainable growth inresponse to structural changes in our operations while setting the pursuit of “innovation” and “growth” as our basic
stance of management for fiscal year 2014 being the starting year for our 9th Medium-Term Management Plan
(fiscal years 2014 to 2016). To implement this basic stance, we focused on our three basic strategies - Growth
Strategies, Segment Strategies, and Infrastructure Strategies.
As the result, the Ryosan Group reported net sales of 176,634 million yen (up 1.5% from the same period lastyear), operating income of 4,499 million yen (up 18.7%), ordinary income of 3,998 million yen (up 11.2%), and net
income of 2,426 million yen (up 5.3%) for results of this consolidated first three-quarter period.
2) Business Segment Informationa. Semiconductors
We sell memories, system LSIs and discrete semiconductors, and develop system LSIs. In this consolidated
first three-quarter period, sales including memories for smartphones decreased, with net sales of 115,994 million
yen (down 1.0% from the same period last year) and yet an operating income of 2,746 million yen (up 11.6%).
b. Electronic Components
We sell display devices, power supplies and electromechanical components. In this consolidated first
three-quarter period, sales including mechanism parts for in-vehicle electrical equipment increased, with net salesof 46,571 million yen (up 5.0% from the same period last year), and operating income of 1,207 million yen (up13.9 %).
c. Electronic Equipment
We sell systems equipment and facilities equipment. In this consolidated first three-quarter period, sales
including color MFPs increased, with net sales of 14,068 million yen (up 12.4% from the same period last year),and operating income of 702 million yen (up 50.1%).
(Note) Effective from this nine-month consolidation period, the Group has revised its business classification into
three segments - "Semiconductors", "Electronic Components", and "Electronic Equipment" - after transferring its
heat sink production business to Sankyo Thermotech Co., Ltd., as of September 1, 2014.
(2) Qualitative Information Concerning Consolidated Financial Position
At the end of this third quarter, total assets had increased by 3,972 million yen, as compared with the level at theend of the previous fiscal year, and came to 173,219 million yen.
Also, net assets increased by 3,375 million yen, as compared with the level at the end of the previous fiscal year,
and came to 122,104 million yen, with the ratio of net assets to total assets being 70.5%.
(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions
There is no change in forecasts for the first three quarters of fiscal 2014, ending March 31, 2015 (announced on
October 29, 2014).
-2-

2. Items Regarding Summary Information (Notes)(1) Transfer of Major Subsidiaries during the Scope of Consolidation of these First Three Quarters
None(2) Applying Accounting Procedures Specific to Preparing Quarterly Financial Statements
None(3) Changes in Accounting Principles, Changes in Accounting Estimates, and Restatements
Changes in Items of Accounting Principles
Implementation of Accounting Standards for Retirement Benefits
We have adopted “Accounting Standards for Retirement Benefits” (Corporate Accounting Standards No. 26 of
May 17, 2012, hereinafter referred to as “Retirement Benefits Accounting Standards”) and “Implementation
Guidance on Accounting Standard for Retirement Benefits” (Corporate Accounting Standards No. 25 of May 17,
2012, hereinafter referred to as “Implementation Guidance on Retirement Benefits”) from the first consolidated
quarter of current fiscal year on provisions stipulated in the texts of the Section 35 of the Retirement Benefits
Accounting Standards and of the Section 67 of the Implementation Guidance on Retirement Benefits: we havereconsidered the accounting method for pension benefit obligations and service liability, and we have changed our
method of attributing projected retirement benefits from a fixed amount standard to a payment calculation standard
along with changing the method of discount determination to a method that uses single-weighted average discountrate reflecting amounts for each estimated period for payment of retirement benefits and other payments.
To apply the Retirement Benefits Accounting Standards, we comply with the transitional handling stipulated in
the Section 37 of Retirement Benefits Accounting Standards, and effect of changes of accounting method for
retirement benefit obligations and service cost, financial effects are added to or subtracted from retained gains, atthe beginning of this consolidated first three-quarter period.
As the result, net defined benefit liability increased by 441 million yen, while retained earnings decreased by
284 million yen, as of the beginning of this consolidated first three-quarter period. There was only minor impact
on operating income, ordinary income and quarterly net income before income taxes during this consolidated first
three-quarter period.

-3-

3. Quarterly Consolidated Financial Statements(1) Consolidated Quarterly Balance Sheets(Millions of yen)
Fiscal Year Ended
March 31, 2014
(As of March 31, 2014)

Third Quarter of the Fiscal
Year Ending March 31, 2015
(As of December 31, 2014)ASSETS
Current assets
Cash and deposits

49,91344,858Trade notes and accounts receivable

75,15372,628―9,999

Inventories

21,73524,859Accrued income

1,747

722

Deferred tax assets

271

251

Other current assets

213

525

Allowance for doubtful accounts

(126)

(56)

148,906

153,788

Buildings and structures (net)

4,154

3,814

Land

8,121

7,354

Lease assets (net)

327

309

Other non-current assets (net)

567

179

13,17011,658

1,026

1,007

Investment securities

4,024

4,810

Deferred tax assets

309

114

Other

1,828

1,999

Allowance for doubtful accounts

(19)

(160)

Total investments and other assets

6,143

6,764

20,34019,430169,247

173,219

Marketable securities

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, 2014
(As of March 31, 2014)

Third Quarter of the Fiscal
Year Ending March 31, 2015
(As of December 31, 2014)

LIABILITIESCurrent liabilities
Trade accounts payable

30,30829,223

Short-term bank loans

15,647

16,620

Lease obligations

122

130

Other payable

756

559

1,199

538

Accrued income taxes

220

778

Accrued bonuses―

296

Other current liabilities

47

339

Total current liabilities

48,30348,488248

222

Net defined benefit liabilities

1,844

2,028

Other long-term liabilities

121

374

Total long-term liabilities

2,213

2,625

Total liabilities

50,517

51,114

Common stock

17,69017,690Additional paid-in capital

19,114

19,114Retained earnings

80,91880,940Treasury stock

(73)

(75)

117,649

117,670

1,184

1,696

3

5

Foreign currency translation adjustments

(220)

2,642

Remeasurements of defined benefit plans

111

90

1,079

4,434

Total net assets

118,729

122,104

Total liabilities and net assets

169,247

173,219

Accrued expenses

Long-term liabilities
Lease obligations

NET ASSETS
Shareholders’ equity

Total shareholders’ equity
Other accumulated comprehensive incomes
Net unrealized gain on other marketable securities
Gain (loss) on deferred hedges

Total other accumulated comprehensive incomes-5-(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Comprehensive Statements of Income(Consolidated Quarterly Statements of Income)(Scope of Consolidation of these First Three Quarters)(Millions of yen)First Three Quarters of the Fiscal
Year Ended March 31, 2014

First Three Quarters of the Fiscal
Year Ending March 31, 2015

(April 1, 2013 to December 31, 2013)(April 1, 2014 to December 31, 2014)

Net sales

174,034

176,634

Cost of Sales

159,971

162,020Gross Profit

14,062

14,614

Selling, general and administrative expenses

10,272

10,114

Operating income

3,790

4,499

Interest income

29

37

Dividend income

51

56

Commission fee

135

77

Miscellaneous income

131

157

Total non-operating income

348

328

Interest expenses

120

130

Foreign currency transaction loss

408

675

Miscellaneous expenses

13

23

Total non-operating expenses

542

829

3,595

3,998

Gain on sales of non-current assets

2

7Gain on transfer of business―53

Total extraordinary gains

2

61

Loss on sales of non-current assets―

3

Impairment loss―

85

Loss on valuation of golf club membership―1

Total extraordinary losses―

90

Income before income taxes

3,598

3,969

Income taxes

1,294

1,542

Income before minority interest

2,303

2,426

Net income

2,303

2,426

Non-operating income

Non-operating expenses

Ordinary income
Extraordinary gains

Extraordinary losses-6-

(Consolidated Quarterly Comprehensive Statements of Income)(Scope of Consolidation of these First Three Quarters)(Millions of yen)First Three Quarters of the Fiscal
Year Ended March 31, 2014

First Three Quarters of the Fiscal
Year Ending March 31, 2015

(April 1, 2013 to December 31, 2013)(April 1, 2014 to December 31, 2014)

2,303

2,426

Net unrealized gain on other marketable securities

831

511

Gain (loss) on deferred hedges

131Foreign currency translation adjustments

1,589

2,862

Remeasurements of defined benefit plans

―

(21)

2,434

3,354

4,738

5,781

4,738

5,781

Income before minority interest
Other comprehensive income

Total other comprehensive income
Comprehensive Incomes(Details)
Comprehensive incomes relating to shareholders ofparental company-7-

(3) Notes Regarding Consolidated Quarterly Financial Statements(Notes Regarding Going Concern)
None(Notes Regarding Substantial Changes in Shareholders’ Equity)
None(Segment Information)
I. For the consolidated first three quarters of the fiscal year ended March 31, 2014
(April 1, 2013 to December 31, 2013)
Information Concerning Sales and Income or Loss Amount by Reporting Segment(Millions of yen)
Reporting Segment
Semiconductors

Electronic
Components

Electronic
Equipment

Total

Adjusted
amount(Note 1)

Consolidated quarterly
income statement amount(Note 2)

Net sales
Sales to external customers
Internal sales or exchange
between segments
Total

117,185

44,336

12,511

174,034―

174,034

―

―

―

―

―

―

117,185

44,336

12,511

174,034―

174,034

Segment income (loss)

2,461

1,060

467

3,989

(199)

3,790

Notes:
1. The adjustment of -199 million yen to segment income represents corporate expenses that are not allocated to each reporting segment.
Corporate expenses mainly refer to general and administrative expenses not belonging to any reporting segments.
2. Segment income has been adjusted with operating income in consolidated quarterly statements of income.

II. For the consolidated first three quarters of the fiscal year ending March 31, 2015
(April 1, 2014 to December 31, 2014)
Information Concerning Sales and Income or Loss Amount by Reporting Segment(Millions of yen)
Reporting Segment
Semiconductors

Electronic
Components

Electronic
Equipment

Total

Adjusted
amount(Note) 1

Consolidated quarterly
income statement amount(Note) 2

Net sales
Sales to external customers
Internal sales or exchange
between segments
Total

115,994

46,571

14,068

176,634―

176,634

―

―

―

―

―

―

115,994

46,571

14,068

176,634―

176,634

Segment income (loss)

2,746

1,207

702

4,656

(156)

4,499

Notes:
1. The adjustment of -156 million yen to segment income represents corporate expenses that are not allocated to each reporting segment.
Corporate expenses mainly refer to general and administrative expenses not belonging to any reporting segments.
2. Segment income has been adjusted with operating income in consolidated quarterly statements of income.

III. Notes on changes in reporting segments
Previously, the Group’s business was divided into the following four reportable segments – “Semiconductors”,“Electronic Components”, “Electronic Equipment”, and “Ryosan Products”. However, effective from theconsolidated first half ended September 30, 2014, the Group has revised its business classification into threesegments – “Semiconductors”, “Electronic Components”, and “Electronic Equipment” - after transferring its heatsink production business to Sankyo Thermotech Co., Ltd., as of September 1, 2014.
In this regard, the segment information for the consolidated first three quarters of the fiscal year ended March
31, 2014, is prepared and disclosed pursuant to the reporting segment classification subsequent to the change
described above.
-8-

4. Supplementary Information(1) Geographical Segment Information
Fiscal 2013, first three quarters of the fiscal year ended March 31, 2014
(April 1, 2013 to December 31, 2013)(Millions of yen)

Othercountries

Eliminations
or corporate

Consolidated

174,034―

174,034

0

7,014(7,014)―64,8235,000

181,048(7,014)

174,034

1,980

177

3,326

463

3,790

Japan

Asia

Sales to external customers
Internal sales or exchange
between segments

104,549

64,484

4,999

6,674

339

Total
Segment income

111,224
1,168

Total

Net sales

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia: Hong Kong, China, Thailand, Korea and others
Other: United States and others

Fiscal 2014, first three quarters of the fiscal year ending March 31, 2015
(April 1, 2014 to December 31, 2014)(Millions of yen)

Othercountries

Eliminations
or corporate

Consolidated

176,634―

176,634―

7,107(7,107)―

65,168

5,337

183,741(7,107)

176,634

1,825

161

4,031

468

4,499

Japan

Asia

Sales to external customers
Internal sales or exchange
between segments

106,333

64,963

5,337

6,902

204

Total
Segment income

113,235
2,044

Total

Net sales

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia: Hong Kong, China, Thailand, Korea and others
Other: United States and others-9-(2) Overseas sales
Fiscal 2013, first three quarters of the fiscal year ended March 31, 2014
(April 1, 2013 to December 31, 2013)(Millions of yen)
Asia
Overseas sales
Consolidated net sales
Ratio of overseas sales to consolidated
net sales (%)

Other countries

Total

75,347

5,875

81,223――174,034

43.3

3.4

46.7

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia: China, South Korea, Hong Kong, Thailand, etc.
Other: United States and others
3. Overseas sales represent the total of export sales of the parent company and sales of its consolidated subsidiaries outside
Japan (excluding intra-group sales).

Fiscal 2014, first three quarters of the fiscal year ending March 31, 2015
(April 1, 2014 to December 31, 2014)(Millions of yen)
Asia
Overseas sales
Consolidated net sales
Ratio of overseas sales to consolidated
net sales (%)

Other countries

Total

76,1506,389

82,539――176,634

43.1

3.6

46.7

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia: China, South Korea, Thailand, Hong Kong, etc.
Other: United States and others
3. Overseas sales represent the total of export sales of the parent company and sales of its consolidated subsidiaries outside
Japan (excluding intra-group sales).

- 10 -