July 28, 2014

First Quarter Consolidated Earnings Report for Fiscal Year 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:
August 12, 2014
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 quarter of FY ending March 31, 2015 (April 1, 2014 to June 30, 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%

60,721

19.8

1,203

37.0

1,321

79.6

813

82.5

50,700(2.3)
878(10.6)(Note) Comprehensive income
First Quarter, Fiscal 2014: 893 million yen (-26,6%)
First Quarter, Fiscal 2013: 1,217 million yen (821.1%)
Net income per
Net income per share
share
after dilution

735(42.3)

445(43.7)First Quarter, Fiscal 2014
First Quarter, Fiscal 2013

Yen

First Quarter, Fiscal 2014
First Quarter, Fiscal 2013

Yen

―
―

25.84
13.86

(2) Consolidated financial position
Total assets

Net assets

Net assets to total assets

Millions of yen

Millions of yen%

First Quarter, Fiscal 2014
165,663
March 31, 2014
169,247(Reference) Shareholders equity
First Quarter, Fiscal 2014: 118,394 million yen
Fiscal 2013: 118,729 million yen

118,394
118,72971.5
70.2

Net assets per shareYen

3,762.89
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

Annual

Yen

Total
Yen

Yen

30.00

―

30.00

60.00

35.00

―

35.00

70.00

3. Forecast of results for the fiscal 2014 (April 1, 2014 to March 31, 2015)(% figures for the full fiscal year represent year-on-year increase or decrease, % figures for the interim period are the increase /(decrease) for the corresponding period of the previous fiscal year)
Net income per
Net sales
Operating income
Ordinary income
Net income
shareMillions of yen%

Interim period
112,000
0.8
Full Fiscal Year
227,000(4.8)(Note) Revision of financial results forecasts: No

Millions of yen%

Millions of yen%

Millions of yen

%

2,300
5,100

4.2
(0.9)

2,400
5,300

11.5
4.9

1,500
3,400

11.9
5.5

Yen

47.67
108.06

* Notes(1) Transfer of major subsidiaries during the scope of consolidation of these three months ended June 30, 2014 (transfer of specified
subsidiaries in line with changes in the consolidated range):－ (Company name:

New:

)

Excluded:No－ (Company name:)(2) Applying Accounting Procedures Specific to Preparing Quarterly Financial Statements: No(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: No
3) Changes in accounting estimate: No4) Restatement of revisions: No
For details please refer to appendix page 3, “Items Regarding Summary Information (Notes) (3) Changes in Accounting
Principles, Changes in Accounting Estimates and Restatements.”(4) Number of shares issued and outstanding (Common stock)
1. Total number of shares issued andJune 30, 2014

31,500,000 sharesFiscal 2013

31,500,000 shares

June 30, 2014

36,376 sharesFiscal 201336,209 shares

June 30, 2014

31,463,734 shares

outstanding (including treasury stock) as of theperiod-end:
2. Total number of treasury stock as of theperiod-end:
3. Average number of shares outstanding during
the period (Cumulative total for the quarterlyFirst Quarter,

32,145,579 sharesFiscal 2013

consolidated period)

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 andExchange 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 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. Items Regarding Summary Information (Notes) .............................................................................................................................. 3(1) Transfer of Major Subsidiaries during the Scope of Consolidation of this Quarter ............................................................... 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 this First Quarter .............................................................................................................. 6
Consolidated Quarterly Comprehensive Statements of Income
Scope of Consolidation of this First Quarter .............................................................................................................. 7(3) Notes Regarding Consolidated Quarterly Financial Statements ............................................................................................ 8(Notes Regarding Going Concern) ........................................................................................................................................ 8(Notes Regarding Substantial Changes in Shareholders’ Equity) .......................................................................................... 8(Segment Information) .......................................................................................................................................................... 8
4. Supplementary Information ............................................................................................................................................................. 9(1) Geographical Segment Information ...................................................................................................................................... 9(2) Overseas sales ....................................................................................................................................................................... 10-1-

1. Qualitative Information Regarding this Quarterly Statement(1) Qualitative Information Concerning Consolidated Operating Results1) Overview
In the global economy in the first quarter (April 1, 2014 to June 30, 2014), despite sluggish economic growth in
Asia, the European economy showed signs of a gradual recovery as a whole, while the United States economy
remained also steady. Meanwhile, the Japanese economy experienced a temporary stagnation 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 60,721 million yen (up 19.8% from the same period lastyear), operating income of 1,203 million yen (up 37.0%), ordinary income of 1,321 million yen (up 79.6%), andnet income of 813 million yen (up 82.5%) for results of this three-month consolidation period.
2) Business Segment Informationa. Semiconductors
We sell memories, system LSIs and discrete semiconductors, and develop system LSIs. In this three-monthconsolidation period,, sales including system LSIs for in-vehicle electrical components and memories for
smartphones increased, with net sales of 41,725 million yen (up 22.6% from the same period last year) andoperating income of 812 million yen (up 35.9%).
b. Electronic Components
We sell display devices, power supplies and electromechanical components. In this three-month consolidation
period, sales including mechanism parts for in-vehicle electrical equipment increased, with net sales of 13,288
million yen (up 13.2% from the same period last year), and operating income of 294 million yen (up 22.0%).
c. Electronic Equipment
We sell systems equipment and facilities equipment. In this three-month consolidation period, sales includingcolor MFPs increased, with net sales of 4,400 million yen (up 21.1% from the same period last year), andoperating income of 163 million yen (up 95.1%).
d. Ryosan Products
We produce and sell heat sinks (devices that dissipate the heat generated by semiconductors). In thisconsolidated first quarter, sales including heat sinks for FA equipment increased, while operating loss was zeroyen, despite net sales rising up 2.4% from the same period last year at 1,307 million yen.
(2) Qualitative Information Concerning Consolidated Financial Position
At the end of this first quarter, total assets had decreased by 3,583 million yen, as compared with the level at theend of the previous fiscal year, and came to 165,663 million yen.
Also, net assets decreased by 334 million yen, as compared with the level at the end of the previous fiscal year,
and came to 118,394 million yen, with the ratio of net assets to total assets being 71.5%.
(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions
There is no change in forecasts for the first half and full fiscal year ending March 31, 2015 (announced on May 9,2014).

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2. Items Regarding Summary Information (Notes)(1) Transfer of Major Subsidiaries during the Scope of Consolidation of this Quarter
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 forpension benefit obligations and service liability, financial effects are added to or subtracted from retained gains, atthe beginning of the consolidated fiscal quarter of current fiscal year.
As the result, employees’ retirement benefits increased by 441 million yen, while retained earnings decreasedby 284 million yen, as of the beginning of this first quarter. There was only minor impact on operating income,ordinary income and quarterly net income before income taxes during this first quarter.

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3. Quarterly Consolidated Financial Statements(1) Consolidated Quarterly Balance Sheets(Millions of yen)
Fiscal Year Ended
March 31, 2013
(As of March 31, 2014)

First Quarter of the Fiscal
Year Ending March 31, 2014
(As of June 30, 2014)ASSETS
Current assets
Cash and deposits

49,91340,314

Trade notes and accounts receivable

75,153

69,791-

9,999

Inventories

21,73523,857

Accrued income

1,747

618

Deferred tax assets

271

313

Other current liabilities

213

351

Allowance for doubtful accounts

(126)

(112)

148,906

145,135

Buildings and structures (net)

4,154

4,110

Land

8,121

8,121

Lease assets (net)

327

370

Other fixed assets (net)

567

531

13,17013,134

1,026

981

Investment securities

4,024

4,468

Deferred tax assets

309

139

Other current liabilities

1,828

1,817

Allowance for doubtful accounts

(19)

(11)

Total investments and other assets

6,143

6,413

20,34020,528169,247

165,663

Marketable securities

Total current assets
Fixed assets
Property, plant and equipment

Total property, plant and equipment
Intangible fixed assets
Investments and other assets

Total fixed assets
Total assets-4-

(Millions of yen)
Fiscal Year Ended
March 31, 2013
(As of March 31, 2014)

First Quarter of the Fiscal
Year Ending March 31, 2014
(As of June 30, 2014)

LIABILITIESCurrent liabilities
Trade accounts payable

30,30825,636

Short-term bank loans

15,647

16,648

Lease obligations

122

135

Other payable

756

707

1,199

522

220

352

Accrued bonuses-

329

Other current liabilities

47

240

Total current liabilities

48,30344,572

248

281

1,844

2,283

Other current liabilities

121

132

Total long-term liabilities

2,213

2,697

50,51747,269Common stock

17,69017,690Additional paid-in capital

19,114

19,114Retained earnings

80,91880,503

Treasury stock

(73)

(74)

117,649

117,234

1,184

1,464

3

(1)

Foreign currency translation adjustments

(220)

(407)

Remeasurements of defined benefit plans

111

104

1,079

1,160

Total net assets

118,729

118,394

Total liabilities and net assets

169,247

165,663

Accrued expenses
Accrued income taxes

Long-term liabilities
Lease obligations
Employees’ retirement benefits

Total liabilities
NET ASSETS
Shareholder’s 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 ofIncome(Consolidated Quarterly Statements of Income)(Scope of Consolidation of this First Quarter)(Millions of yen)First Quarter of the Fiscal Year
Ended March 31, 2014

First Quarter of the Fiscal YearEnding March 31, 2015

(From April 1, 2013 toJune 30, 2013)(From April 1, 2014 toJune 30, 2014)

Net sales
Cost of Sales
Gross Profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Gain on foreign exchange
Commission fee
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expense
Foreign currency transaction loss
Miscellaneous expenses
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of noncurrent assets
Total extraordinary gains
Income before income taxes and minority interests
Income taxes
Income before Minority interest in income
Net income-6-50,70046,298
4,402
3,523
878

60,721
56,084
4,637
3,433
1,203

8
28
－
46
44
127

11
30
68
23
36
170

38
227
4
269
735

47
－
4
52
1,321

2
2
738
292
445
445

0
0
1,321
508
813
813

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

First Quarter of the Fiscal YearEnding March 31, 2015

(From April 1, 2013 toJune 30, 2013)(From April 1, 2014 toJune 30, 2014)

445

813

Net unrealized gain on other marketable securities
Gain (loss) on deferred hedges

202

279

(0)

Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive Incomes(Details)
Comprehensive incomes relating to shareholders ofparental company

570
772
1,217

(4)
(187)
(6)

Income before Minority interest in income
Other comprehensive income

1,217

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80
893

893

(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 quarter of the fiscal year ended March 31, 2014
(April 1, 2013 to June 30, 2013)
Information Concerning Sales and Income or Loss Amount by Reporting Segment(Millions of yen)

Reportable Segment

Net sales
Sales to external Customers
Internal sales between
segments, or exchange
Total
Segment income

Adjusted
amount(Note) 1

Consolidated
quarterly
incomestatement
amount(Note) 2

50,700―50,700

―

―

―

―

1,276
12

50,700936―(57)

50,700878

Semiconductors

Electronic
Components

Electronic
Equipment

RyosanProducts

Total

34,046

11,742

3,634

1,276

―

―

―

34,046597

11,742
241

3,634
84

(Notes)1. The adjustment of -58 million yen to segment income represents corporate expenses that are not allocated to eachreportable 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 quarter of the fiscal year ending March 31, 2015
(April 1, 2014 to June 30, 2014)
Information Concerning Sales and Income or Loss Amount by Reporting Segment(Millions of yen)

Reportable Segment

Net sales
Sales to external Customers
Internal sales between
segments, or exchange
Total
Segment profit (loss)

Adjusted
amount(Note) 1

Consolidated
quarterly
incomestatement
amount(Note) 2

60,721―60,721

―

―

―

―

1,307
(0)

60,721
1,271

―
(67)

60,721
1,203

Semiconductors

Electronic
Components

Electronic
Equipment

RyosanProducts

Total

41,725

13,288

4,400

1,307

―

―

―

41,725812

13,288
294

4,400
163

(Notes)1. The adjustment of -67 million yen to segment income represents corporate expenses that are not allocated to eachreportable 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.

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4. Other current liabilities(1) Geographical Segment Information
Fiscal 2013, first quarter of the fiscal year ended March 31, 2014
(April 1, 2013 to June 30, 2013)(Millions of yen)

Japan

Asia:

Other
current
liabilities

30,05519,043

1,601

2,090

108

32,14554

19,152597

Eliminations
or corporate

Consolidated

50,700―50,7000

2,199

2,199.

―

1,602
53

52,900705

2,199.
172

50,700878

Total

Net sales(1) Sales to external Customers(2) Internal sales between segments, or
exchange
Total
Segment income

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 quarter of the fiscal year ending March 31, 2015
(April 1, 2014 to June 30, 2014)(Millions of yen)

Japan

Asia:

Other
current
liabilities

39,18019,942

1,598

2,290

90

41,470441

20,033623

Eliminations
or corporate

Consolidated

60,721―60,7210

2,381

2,381.

―

1,598
37

63,102
1,102

2,381.
100

60,721
1,203

Total

Net sales(1) Sales to external Customers(2) Internal sales between segments, or
exchange
Total
Segment income

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 quarter of the fiscal year ended March 31, 2014
(April 1, 2013 to June 30, 2013)
Asia:
Overseas sales
Consolidated net sales
Ratio of overseas sales to consolidated net sales (%)

21,323―
42.1

Other current
liabilities
1,855
―
3.7

(Millions of yen)Total
23,17850,70045.7

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 quarter of the fiscal year ending March 31, 2015
(April 1, 2014 to June 30, 2014)
Asia:
Overseas sales
Consolidated net sales
Ratio of overseas sales to consolidated net sales (%)

28,078―46.2

Other current
liabilities
1,917
―
3.2

(Millions of yen)Total
29,99660,721
49.4

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia: South Korea, China, 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).

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