October 31, 2019

First Half Earnings Report for Fiscal Year 2019, Ending March 31, 2020
[Japanese Standards] (Consolidated)
Company name:Securities code:
Representative:

Ryosan Company, Limited
Stock listing: First Section, Tokyo Stock Exchange
8140
URL http://www.ryosan.co.jp
Hiroyuki Kurihara, Representative Director, President
Masahide Nishiura, Director, Senior Executive Officer,
Inquiries:
TEL: +81-3-3862-2591
General Manager, Finance and Accounting Headquarters
Scheduled filing date of quarterly earnings report:
November 13, 2019
Scheduled payment date of dividend:
November 29, 2019
Supplementary materials for the quarterly financial results:
Yes
Investor conference for the quarterly financial results:
None(Millions of yen rounded down)

1. Consolidated results for the first half of fiscal year 2019 (April 1, 2019 to September 30, 2019)(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 2019

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

116,445

(9.7)

1,888

(34.8)

1,877

15.9

1,081

2.3

2,894

(10.2)

1,620(49.2)

1,057(52.5)First Half, Fiscal Year 2018
128,968
4.3(Note) Comprehensive income
First Half, Fiscal Year 2019: 340 million yen (-81.7%)
First Half, Fiscal Year 2018: 1,864 million yen (-35.7%)
Basic earnings per
share

Diluted earnings per
share

Yen

First Half, Fiscal Year 2019
First Half, Fiscal Year 2018

Yen

46.15
43.62

―
―

(2) Consolidated financial position
Total assets

Net assets

Net assets to total assets

Millions of yen

Millions of yen%

September 30, 2019
141,409
March 31, 2019
146,588(Reference) Shareholders’ equity
September 30, 2019: 86,464 million yen
March 31, 2019: 87,861 million yen

86,46487,861

61.1
59.9

Net assets per share
Yen

3,690.43
3,750.01

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

Fiscal Year 2018―
Fiscal Year 2019―
Fiscal Year 2019 (Forecast)(Note) Revision of dividend forecasts: None

End of 2Q

End of 3Q

Yen

75.00
50.00

Yen

Annual

Total
Yen

Yen

―

75.00

150.00―50.00

100.00Fiscal Year 2018

Interim dividend breakdown: 50 yen (ordinary), 25 yen (special)

Fiscal Year 2018

Year-end dividend breakdown: 50 yen (ordinary), 25 yen (special)

Fiscal Year 2019

Interim dividend breakdown: 50 yen (ordinary)Fiscal Year 2019Year-end dividend breakdown (forecast): 50 yen (ordinary)3. Forecast of results for the fiscal year 2019 (April 1, 2019 to March 31, 2020)
Net sales
Millions of yen(% figures represent year-on-year increase or decrease)
Basic
Profit attributable toearnings per
Ordinary income
owners of parent
share

Operating income%

Millions of yen

Full Fiscal Year
235,000(5.9)(Note) Revision of financial results forecasts: None

4,200

%

Millions of yen%

Millions of yen%(19.8)

3,600

(9.4)

1,900

28.4

Yen

81.09

* Notes(1) Transfer of major subsidiaries during the scope of consolidation of these six months ended September 30, 2019 (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,
2019

2. Total number of treasury shares at the

September 30,

period-end:

2019

3. Average number of shares outstanding
during the period (Cumulative total for thequarterly consolidated period)First Half, Fiscal
Year 2019

25,000,000 shares

March 31, 2019

25,000,000 shares

1,570,540 shares

March 31, 2019

1,570,290 shares

23,429,570 sharesFirst Half, Fiscal
Year 201824,236,702 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(Notes on forward-looking statements)
The estimates referred in this report are based on the information available as of the date of this release. Ryosan Company Limited(Ryosan) does not promise the realization of the estimates in this report. The actual results may significantly differ from the estimates due
to a variety of factors. For details on the conditions that form the assumptions used for earnings forecasts and notes on using earnings
forecasts, please refer to appendix page 3, "1. Qualitative Information Regarding this Quarterly Statement (3) Qualitative Information
Concerning Consolidated Forecast and Other Future Predictions."

○Table of contents of the appendix
1. Qualitative Information Regarding this Quarterly Statement ........................................................................................................... 2(1) Qualitative Information Concerning Consolidated Operating Results .................................................................................. 2(2) Qualitative Information Concerning Consolidated Financial Position .................................................................................. 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) .......................................................................................................................................................... 9-1-

1. Qualitative Information Regarding this Quarterly Statement(1) Qualitative Information Concerning Consolidated Operating Results1) Overview
During the consolidated fiscal half-year under review (April 1 to September 30, 2019), the global economy
continued on a decelerating keynote, impacted by trade friction between the United States and China. Influenced by
the dip in the global economy, the Japanese economy continued to lack vigor, as weakness in exports and production
lingered.
The electronics industry in which Ryosan conducts business was also impacted by the slowdown in the macro
economy. Demand remained lackluster, particularly in industrial equipment.
Against this economic background, the business results for Ryosan in the cumulative first half-year under review
presented a mixed picture. Net sales declined to 116,445 million yen (down 9.7% from the same period of the previous
fiscal year) and operating income fell to 1,888 million yen (down 34.8%). However, ordinary income rose to 1,877
million yen (up 15.9% YoY), buoyed by conversion of a foreign exchange loss appropriated in the same period of theprevious fiscal year into a foreign-exchange gain, as a result of revaluation of foreign-currency-denominated liabilities.
Profit attributable to owners of parent increased to 1,081 million yen (up 2.3%), affected by factors such as writedown expenses resulting from a decision to reorganize logistics.
2) Business Segment Informationa. Semiconductors
Ryosan sells system LSIs, discrete semiconductors and memory, and develops system LSIs on a contract basis.
During the consolidated fiscal half-year under review, Ryosan’s business serving industrial equipment slumped,
resulting in a decrease in sales incentives. As a result, net sales slipped to 69,219 million yen (down 10.1% fromthe same period of the previous fiscal year) and operating income decreased to 806 million yen (down 42.3%).
b. Electronic Components
Ryosan sells electromechanical components, display devices and power supplies. During the consolidated fiscal
half-year under review, the consumer business enjoyed favorable results until the first half of fiscal year 2018, when
it reversed course and declined, while sales of value-added products for industrial equipment also trended
downward. As a result, net sales retreated to 38,001 million yen (down 6.0% from the same period of the previous
fiscal year) and operating income dropped to 1,196 million yen (down 19.5%).
c. Electronic Equipment
Ryosan sells systems equipment and facilities equipment. In this consolidated first half period, Ryosan suffered
the loss of a large business but also handled products of high added value. As a result, net sales were 9,223 million
yen (down 20.1% from the same period of the previous fiscal year), while operating income was 173 million yen(up 1.2%).

-2-

(2) 1) Qualitative Information Concerning Consolidated Financial Position
As of September 30, 2019, total assets decreased by 5,179 million yen compared with the end of the previous fiscal
year, to 141,409 million yen.
Also, net assets decreased by 1,396 million yen compared with the end of the previous fiscal year, to 86,464 million
yen, with the ratio of net assets to total assets being 61.1%.
2) Overview of Cash Flows
As of September 30, 2019, cash and cash equivalents increased by 6,530 million yen compared with the end of theprevious fiscal year, to 21,111 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 increased by
13,020 million yen. This increase resulted from profit before income taxes of 1,620 million yen, a decrease ininventories of 4,901 million yen, a decrease in notes and accounts receivable – trade of 3,175 million yen, and adecrease in accounts receivable – other of 2,065 million yen. For a comparison, in net cash from operating activities
in the same period of the previous fiscal year, funds had increased by 9,021 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
126 million yen due to such factors as the purchase of intangible assets. For a comparison, in net cash from investing
activities in the same period of the previous fiscal year, funds had decreased by 273 million yen.
Net cash provided by (used in) financing activities
Regarding cash flow from financing activities in this consolidated first half period, funds in total decreased by
6,141 million yen due to a decrease in short-term loans payable of 4,287 million yen and cash dividends paid of
1,757 million yen. For a comparison, in net cash from financing activities in the same period of the previous fiscal
year, funds had decreased by 5,121 million yen.
(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions
There is no change in forecasts for the consolidated operating results (announced on May 14, 2019).

-3-2. Consolidated Quarterly Financial Statements and Main Notes(1) Consolidated Quarterly Balance Sheet(Millions of yen)
Fiscal Year Ended
March 31, 2019
(As of March 31, 2019)

First Half of the Fiscal YearEnding March 31, 2020
(As of September 30, 2019)ASSETS
Current assets
Cash and deposits

14,58021,111

Notes and accounts receivable –trade62,10958,350Inventories

44,68039,172

Accounts receivable – other

7,621

5,555

Other

373

376

Allowance for doubtful accounts

(34)

(47)

129,330

124,517

Buildings and structures, net

3,090

2,799

Land

6,145

5,994

Leased assets, net

551

577

Other, net

146

137

9,934

9,509

963

1,026

Investment securities

4,043

3,873

Deferred tax assets

205

307

Other

2,221

2,281

Allowance for doubtful accounts

(109)

(106)

Total investments and other assets

6,360

6,356

17,25816,891

146,588

141,409

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, 2019
(As of March 31, 2019)

First Half of the Fiscal YearEnding March 31, 2020
(As of September 30, 2019)

LIABILITIESCurrent liabilities
Accounts payable - trade

29,76030,697

Short-term loans payable

23,26818,068173

234

Accounts payable - other

1,172

1,428

Accrued expenses

1,348

1,266

Income taxes payable

201

593

Other

260

193

56,18552,482

Lease obligations

439

396

Deferred tax liabilities

280

318

Net defined benefit liability

1,732

1,658

Asset retirement obligations

31

30

Other

57

58

2,541

2,462

58,72654,944

Capital stock

17,69017,690Capital surplus

19,114

19,114Retained earnings

55,572

54,916

Treasury shares(6,531)(6,531)

Total shareholders’ equity

85,84685,189

1,546

1,416

0

0

Foreign currency translation adjustment

495

(124)

Remeasurements of defined benefit plans

(26)

(16)

Total accumulated other comprehensive income

2,015

1,274

Total net assets

87,861

86,464

Total liabilities and net assets

146,588

141,409

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, 2019

First Half of the Fiscal YearEnding March 31, 2020

(April 1, 2018 to Sept. 30, 2018)(April 1, 2019 to Sept. 30, 2019)

128,968
118,261
10,706
7,812
2,894

116,445
107,195
9,249
7,360
1,888

10
52
21
102
187

30
40
168
1
28
73
342

328
917
198
17
1,461
1,620

341
12
353
1,877

0
3
3

1
1

1,624
567
1,057
1,057

249
8
258
1,620
539
1,081
1,081

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
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
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on valuation of investment securities
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, 2019

First Half of the Fiscal YearEnding March 31, 2020

(April 1, 2018 to Sept. 30, 2018)(April 1, 2019 to Sept. 30, 2019)

1,057

1,081

(61)
1
880
(12)
807
1,864

(130)
(0)
(620)
10
(740)
340

1,864

340

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
Amortization of goodwill
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
Purchase of shares of subsidiaries and associates
Purchases of investment securities
Proceeds from sales of investment securities
Payments for investments in capital
Collection of investments in capital
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
Increase in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at the end of the period-8-First Half of the Fiscal Year
Ended March 31, 2019

First Half of the Fiscal YearEnding March 31, 2020

(April 1, 2018 to Sept. 30, 2018)(April 1, 2019 to Sept. 30, 2019)

1,624
242
100
(19)
(41)
(63)
328

1,620
301
249
14
(57)
(70)
341

198

(1)

(3)
8,797
(2,932)(1,606)
3,077
1,103
10,806105(366)(1,524)
9,021

3,175
4,901
1,318
2,065
(695)
13,16370(348)
135
13,020

(35)
45
(86)
(200)
(30)
3
(2)
18
(98)
111
(273)

(72)
161
(173)
(15)
0
8
(101)
65
(126)

671
(88)
(3,870)(1,833)(5,121)50
3,677
13,471(4,287)(95)(0)(1,757)(6,141)(221)
6,530
14,58041-

17,19021,111

(4) Notes Regarding Consolidated Quarterly Financial Statements(Notes Regarding Going Concern)
None(Notes Regarding Substantial Changes in Shareholders’ Equity)
None(Changes in Accounting Principles)
Adoption of IFRS 16, “Leases”
In overseas consolidated subsidiaries that have adopted the International Financial Reporting Standards(IFRS), Ryosan adopts IFRS 16, “Leases” (published January 13, 2016; hereinafter “IFRS 16”) beginning withthe first quarter of the current fiscal year.
With the application of IFRS 16, in principle, all leases are recognized as the assets and liabilities of thelessee. In applying IFRS 16, Ryosan adopts the practice of recognizing the cumulative effect of application ofthis accounting standard on the starting date of application, in accordance with the transitional treatment.
The effect of application of this accounting standard on the consolidated quarterly financial statements is
negligible.
(Segment Information)
I. Information Concerning Sales and Income or Loss Amount by Reporting Segment
Consolidated first half of the fiscal year ended March 31, 2019
(April 1, 2018 to September 30, 2018)(Millions of yen)
Semiconductors
Net sales
Sales to external customers
Internal sales or exchange
between segments
Total
Segment income (loss)

Reporting Segment
Electronic
Electronic
Components
Equipment

Total

Adjusted
amount(Note 1)

Amounts shown on
consolidated statement ofincome (Note 2)

77,00140,427

11,539128,968―

128,968

―

―

―

―

―

―

77,001
1,396

40,427
1,487

11,539171

128,968
3,054

―
(160)

128,968
2,894(Notes)1. The adjusted amount of minus 160 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.

Consolidated first half of the fiscal year ending March 31, 2020
(April 1, 2019 to September 30, 2019)(Millions of yen)
Semiconductors
Net sales
Sales to external customers
Internal sales or exchange
between segments
Total
Segment income (loss)

Reporting Segment
Electronic
Electronic
Components
Equipment

Total

Adjusted
amount(Note 1)

Amounts shown on
consolidated statement ofincome (Note 2)

69,21938,001

9,223

116,445―

116,445

―

―

―

―

―

―

69,219806

38,001
1,196

9,223
173

116,445
2,175

―
(287)

116,445
1,888(Notes)1. The adjusted amount of minus 287 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.

-9-II. Information Concerning Sales and Income or Loss Amount by Sales Destination
Fiscal Year 2018, first half of the fiscal year ended March 31, 2019
(April 1, 2018 to September 30, 2018)(Millions of yen)

Japan

Asia

73,65450,738

4,575

9,482

112

0

83,137864

50,851
1,649

4,575
131

Eliminations
or corporate

Consolidated

128,968―

128,968

9,595(9,595)―

138,5642,645(9,595)249

128,968
2,894

Other

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.

Fiscal Year 2019, first half of the fiscal year ending March 31, 2020
(April 1, 2019 to September 30, 2019)(Millions of yen)

Eliminations
or corporate

Consolidated

116,445―

116,445

5

9,987(9,987)

―

5,287
206

126,432
1,647(9,987)240

116,445
1,888

Japan

Asia

Other

Total

63,83047,333

5,281

9,890

91

73,720(44)

47,424
1,485

Net sales
Sales to external customers
Internal sales or exchange between
segments
Total
Segment income(Notes)1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions covered:
Asia: Hong Kong, Thailand, China, South Korea, etc.
Other: United States, etc.

III. Information Concerning Sales by Region
Fiscal Year 2018, first half of the fiscal year ended March 31, 2019
(April 1, 2018 to September 30, 2018)(Millions of yen)Japan
Net sales
Ratio to consolidated net sales (%)

China

68,58553.2

32,95225.6

Asia
22,824
17.7

Other
4,605
3.6

Consolidated
128,968100.0(Note) Net sales are on the basis of customer location and classified by country or region.

Fiscal Year 2019, first half of the fiscal year ending March 31, 2020
(April 1, 2019 to September 30, 2019)(Millions of yen)Japan
Net sales
Ratio to consolidated net sales (%)

China

60,51952.0

28,45624.4

Asia
22,08619.0(Note) Net sales are on the basis of customer location and classified by country or region.

- 10 -

Other
5,382
4.6

Consolidated
116,445100.0