January 30, 2023

Third Quarter Earnings Report for Fiscal Year 2022, Ending March 31, 2023
[Japanese Standards] (Consolidated)
Company name:Securities code:
Representative:

Ryosan Company, Limited
Stock listing: Prime Market, 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:
February 14, 2023
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 three quarters of fiscal year 2022 (April 1, 2022 to December 31, 2022)(1) Consolidated operating results (Cumulative)(% change compared with the same period of the previous fiscal year (YoY))
Profit attributable toNet sales
Operating income
Ordinary income
owners of parent
Millions of yen%

Millions of yen

First Three Quarters, Fiscal Year
243,971
26.1
11,671
2022
First Three Quarters, Fiscal Year
193,481
22.1
6,623
2021
(Note) Comprehensive income
First Three Quarters, Fiscal Year 2022: 8,531 million yen (61.4%)
First Three Quarters, Fiscal Year 2021: 5,286 million yen (62.7%)%

Millions of yen%

Millions of yen

%

76.2

9,962

54.5

6,868

47.0

127.2

6,446

68.7

4,674

48.6

Basic earnings per
share

Diluted earnings per
share

YenYenFirst Three Quarters, Fiscal Year
2022
First Three Quarters, Fiscal Year
2021

293.17―199.51―(2) Consolidated financial position
Total assets

Net assets

Net assets to total assets

Millions of yen

Millions of yen%

December 31, 2022
185,369
March 31, 2022
190,548(Reference) Shareholders’ equity
December 31, 2022: 99,869 million yen
March 31, 2022: 94,724 million yen

99,86994,724

53.9
49.7

Net assets per shareYen

4,261.80
4,043.20

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

Fiscal Year 2021―
Fiscal Year 2022―
Fiscal Year 2022 (Forecast)(Note) Revision of dividend forecasts: None

End of 2Q

End of 3Q

Yen

50.00
75.00

Yen

―
―

End of 4Q

AnnualYenYen

70.00

120.0075.00

150.003. Forecast of results for the fiscal year 2022 (April 1, 2022 to March 31, 2023)
Net sales
Millions of yen(% figures represent year-on-year increase or decrease)
Basic
Ordinary income
Profitearnings pershare

Operating income%

Millions of yen

Full fiscal year
300,000
10.0(Note) Revision of financial results forecasts: None

13,000%Millions of yen%

Millions of yen%

46.8

10,000

23.7

7,000

30.6

Yen

298.79* Notes(1) Transfer of major subsidiaries during the scope of consolidation of these nine months ended December 31, 2022 (transfer of specified
subsidiaries in line with changes in the consolidated range): None
New:－ (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: None
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:

December 31,
2022

2. Total number of treasury shares at theDecember 31,period-end:

2022

3. Average number of shares outstanding

First Threeduring the period (Cumulative total for theQuarters, Fiscal

quarterly consolidated period)

Year 2022

25,000,000 shares

March 31, 2022

25,000,000 shares

1,566,273 shares

March 31, 2022

1,571,817 sharesFirst Three
23,429,257 shares

Quarters, Fiscal

23,428,409 sharesYear 2021

This 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 ............... 5Consolidated Quarterly Statement of Income
Scope of Consolidation of these First Three Quarters ............................................................................................ 5
Consolidated Quarterly Statement of Comprehensive Income
Scope of Consolidation of these First Three Quarters ............................................................................................ 6(3) Notes Regarding Consolidated Quarterly Financial Statements ............................................................................................ 7(Notes Regarding Going Concern) ........................................................................................................................................ 7(Notes Regarding Substantial Changes in Shareholders’ Equity).......................................................................................... 7(Segment Information) .......................................................................................................................................................... 7-1-1. Qualitative Information Regarding this Quarterly Statement(1) Qualitative Information Concerning Consolidated Operating Results1) Overview
During the consolidated first three quarters of fiscal year 2022 (April 1 to December 31, 2022), the slowdown in
the global economy gripped with increasing strength. Although the impact of the COVID-19 pandemic eased, theprotraction of the crisis between Russia and Ukraine spurred rising resource and energy prices, while China’s
aggressive zero-COVID policy aggravated confusion in supply chains. As inflation galloped, particularly in theadvanced countries of North America and Europe, fiscal tightening advanced.
Similar trends impacted the Japanese economy. Although moves toward recovery continued, particularly inpersonal consumption, loss of economic momentum overseas, supply restrictions and a steep drop in the value of theJapanese yen continued to demand vigilance.
Uncertainty increased in the electronics industry, Ryosan’s main field. Demand for PCs fell, while demand forindustrial equipment was firm. A squeeze in supplies of semiconductors and electronic components continued to
impact production activities.
In defiance of the challenging macroeconomic background described above, Ryosan posted gains across the board.
Ryosan harvested prior investment products, exercising measures contained in the 11th Medium-Term Business Plan.
Existing businesses also grew, and depreciation of the Japanese yen had an effect. In the consolidated three quarters
under review, net sales grew to 243,971 million yen (up 26.1% from the same period of the previous fiscal year).
Operating income reached 11,671 million yen (up 76.2%), lifted by increased revenue, the weakening yen andmeasures to rein in selling, general and administrative expenses. Ordinary income climbed to 9,962 million yen (up54.5%), despite appropriation of foreign exchange losses due to revaluation of foreign-currency-denominatedliabilities. Profit attributable to owners of parent leapt to 6,868 million yen (up 47.0%).
2) Business Segment Information
a. Devices
Thanks to the effective exercise of measures contained in the 11th Medium-Term Business Plan, sales rose,particularly in products for the industrial machinery sector. Net sales grew to 214,625 million yen (up 25.6% fromthe same period of the previous fiscal year). Operating income nearly doubled to 10,771 million yen (up 93.3%).
b. Solutions
Large projects in products for the communications sector contributed to net sales, while sales of products for theindustrial machinery sector grew. Net income rose to 29,345 million yen (up 30.1% from the same period of theprevious fiscal year), while operating income surged to 1,557 million yen (up 41.0%).
(2) Qualitative Information Concerning Consolidated Financial Position
As of December 31, 2022, total assets decreased by 5,179 million yen compared with the end of the previous fiscal
year, to 185,369 million yen.
Also, net assets increased by 5,445 million yen compared with the end of the previous fiscal year, to 99,869 million
yen, with the ratio of net assets to total assets being 53.9%.
(3) Qualitative Information Concerning Consolidated Forecast and Other Future PredictionsThe forecast of consolidated business results is unchanged from the forecast published on October 25, 2022.

-2-2. Consolidated Quarterly Financial Statements and Main Notes(1) Consolidated Quarterly Balance Sheet(Millions of yen)
Fiscal Year Ended
March 31, 2022
(As of March 31, 2022)

Third Quarter of the Fiscal
Year Ending March 31, 2023
(As of December 31, 2022)

ASSETS
Current assets
Cash and deposits

12,066

17,078Notes and accounts receivable –trade

92,57486,481Inventories

52,64753,360Accounts receivable – other

18,721

13,191

Other

1,094

1,872Allowance for doubtful accounts

(276)

(674)

176,827

171,310

Buildings and structures, net

2,563

2,504

Land

5,178

5,179

Leased assets, net

394

475

Other, net

201

187

8,338

8,347

985

1,010

Investment securities

3,001

3,308

Deferred tax assets

295

392

Other

1,206

1,006

Allowance for doubtful accounts

(106)

(106)

Total investments and other assets

4,397

4,700

13,72014,058

190,548

185,369

Total current assets
Non-current assets
Property, plant and equipment

Total property, plant and equipment
Intangible assets
Investments and other assetsTotal non-current assets
Total assets-3-

(Millions of yen)
Fiscal Year Ended
March 31, 2022
(As of March 31, 2022)

Third Quarter of the Fiscal
Year Ending March 31, 2023
(As of December 31, 2022)

LIABILITIESCurrent liabilities
Accounts payable – trade42,976

40,535

Short-term loans payable

38,07935,279Commercial papers

4,999

-

Lease obligations

224

176

Accounts payable – other

3,469

3,240

Accrued expenses

1,930

876

Income taxes payable

1,798

1,912

Provision for bonuses

-712

391

607

93,86983,341

Lease obligations

202323

Deferred tax liabilities

597895Net defined benefit liability

1,068

851

Asset retirement obligations

2324

Other

62

63

1,953

2,158

95,82385,499

Capital stock

17,69017,690Capital surplus

19,114

19,114Retained earnings

59,58663,002

Treasury shares(6,534)(6,468)

Total shareholders’ equity

89,857

93,339

1,257

1,312

11

Foreign currency translation adjustment

3,634

5,247

Remeasurements of defined benefit plans

(25)

(31)

Total accumulated other comprehensive income

4,867

6,530

Total net assets

94,724

99,869Total liabilities and net assets

190,548

185,369

OtherTotal 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 these First Three Quarters)(Millions of yen)First Three Quarters of theFiscal Year Ended March 31,2022

First Three Quarters of theFiscal Year Ending March 31,2023(April 1, 2021 to Dec. 31, 2021)(April 1, 2022 to Dec. 31, 2022)

193,481
175,609
17,871
11,247
6,623

243,971219,650
24,32012,64911,671

22
68
23
39
77
232

23
73
58
145
36
170
509

121
200
71
16
409
6,446

749
1,435
32
2,217
9,962

0
57
1
59

0
0

19
19
6,486
1,812
4,674
4,674

9,963
3,094
6,868
6,868

Net sales
Cost of Sales
Gross Profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Commission fee
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
Gain on sales of golf memberships
Total extraordinary income
Extraordinary losses
Impairment loss
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 these First Three Quarters)(Millions of yen)First Three Quarters of the
Fiscal Year Ended March 31,2022

First Three Quarters of theFiscal Year Ending March 31,
2023(April 1, 2021 to Dec. 31, 2021)(April 1, 2022 to Dec. 31, 2022)

4,674

6,868

(252)
4870
(9)
612
5,286

55
0
1,612
(5)
1,662
8,531

5,286

8,531

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(Segment Information)
I. Information Concerning Sales and Income or Loss Amount by Reporting Segment
Consolidated First Three Quarters of the Fiscal Year Ended March 31, 2022
(April 1, 2021 to December 31, 2021)(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

170,933

22,547

193,481―

193,481

―

――

―

―

170,933
5,572

22,547
1,105

193,481
6,677

―
(54)

193,4816,623(Notes)1. The adjusted amount of minus 54 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 Three Quarters of the Fiscal Year Ending March 31, 2023
(April 1, 2022 to December 31, 2022)(Millions of yen)
Reporting Segment

Net sales
Sales to external customers
Internal sales or exchange
between segments
TotalSegment income (loss)

Adjusted amount(Note 1)

Amounts shown on
consolidated quarterly
statement of income (Note 2)

243,971―

243,971――――

29,345
1,557

243,97112,329―(658)

243,971
11,671

Devices

Solutions

214,625

29,345―
214,625
10,771

Total(Notes)
1. The adjusted amount of minus 658 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.

-7-II. Information Concerning Sales and Income or Loss Amount by Sales Destination
Fiscal year 2021, first three quarters of the fiscal year ended March 31, 2022
(April 1, 2021 to December 31, 2021)(Millions of yen)

Japan

Asia

103,853

81,5188,109

17,350482

31121,204
2,671

82,000
3,440

8,141
198

Eliminations
or corporate

Consolidated

193,481―

193,481

17,865(17,865)―

211,346
6,311(17,865)
312

193,481
6,623

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

Fiscal year 2022, first three quarters of the fiscal year ending March 31, 2023
(April 1, 2022 to December 31, 2022)(Millions of yen)

Eliminations
or corporate

Consolidated

243,971―

243,971

49

16,211(16,211)

―

7,959
369

260,182
11,231(16,211)439

243,971
11,671

Japan

Asia

Other

125,745

110,315

7,909

15,681

479

141,4276,251

110,795
4,610

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

III. Information Concerning Sales by Region
Fiscal year 2021, first three quarters of the fiscal year ended March 31, 2022
(April 1, 2021 to December 31, 2021)(Millions of yen)JapanNet sales
Ratio to consolidated net sales (%)

China

99,44551.4

51,39426.6

Asia
34,016
17.6

Other
8,624
4.5

Consolidated
193,481100.0(Note) Net sales are on the basis of customer location and classified by country or region.

Fiscal year 2022, first three quarters of the fiscal year ending March 31, 2023
(April 1, 2022 to December 31, 2022)(Millions of yen)JapanNet sales
Ratio to consolidated net sales (%)

China

124,12850.9

65,78927.0

Asia45,80718.8(Note) Net sales are on the basis of customer location and classified by country or region.

-8-

Other
8,245
3.4

Consolidated
243,971
100.0