May 12, 2017

Consolidated Earnings Report for Fiscal 2016, Ended March 31, 2017
[Japanese Standards]
Company name:Securities code:
Representative:

Ryosan Company, Limited
Stock listing: First Section, Tokyo Stock Exchange
8140
URL http://www.ryosan.co.jp
Naoto Mimatsu, Representative Director, President
Masahide Nishiura, Director , Senior Executive Officer,
Inquiries:
TEL: 03-3862-2591
General Manager, Finance and Accounting Headquarters
Scheduled date of the Annual General Meeting of Shareholders:June 23, 2017
Scheduled payment date of dividend:
June 7, 2017
Scheduled filing date of the Annual Securities Report:
June 26, 2017
Supplementary materials for the annual financial results:
Yes
Investor conference for the annual financial results:
Yes (for security analysts and institutional investors)(Millions of yen rounded down)

1. Consolidated results for the fiscal year ended March 31, 2017 (April 1, 2016 to March 31, 2017)(1) Consolidated operating results(% change compared with same period of previous fiscal year (YoY))
Profit attributable toOperating income
Ordinary income
owners of parent

Net sales
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

Fiscal 2016
218,003(4.4)
4,659(15.9)
4,833(13.6)
Fiscal 2015
228,149
(2.3)
5,538
(6.5)
5,594
2.3
(Note) Comprehensive income
Fiscal 2016: 3,353 million yen (232.7%)
Fiscal 2015: 1,007 million yen (-85.2%)
Ordinary income
Basic earnings
Diluted earnings per
Return on equity
to net assets
per share
share
Yen

Yen

%

Fiscal 2016116.54－
3.0
Fiscal 2015
119.77－
3.1(Reference) Equity in earnings (losses) of non-consolidated subsidiaries and affiliates:
Fiscal 2016: － million yen,
Fiscal 2015: － million yen

%

3,367
3,671

(8.3)
14.7

Operating income
to net sales

%

%

3.0
3.4

2.1
2.4

(2) Consolidated financial position
Total assets

Net assets tototal assets

Net assets

Millions of yen

March 31, 2017
161,620
March 31, 2016
157,011(Reference) Shareholders equity:
March 31, 2017: 109,519 million yen,

Net assets
per share

Millions of yen%

Yen

109,519
115,36267.8
73.5

3,897.82
3,915.04

March 31, 2016: 115,362 million yen(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal 2016
Fiscal 2015

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at the end of the period

Millions of yen

Millions of yen

Millions of yen

Millions of yen(1,843)
4,748

(816)
550

(9,223)(9,543)38,69250,768

2. Dividends(Record date)Fiscal 2015
Fiscal 2016
Fiscal 2017
(Forecast)End of
1Q－－－

Dividends per share (Yen)End of
End of
End of
2Q
3Q
4Q
45.00
－
95.00
70.00
－
70.00
75.00

－

75.00

Annual140.00140.00150.00(Millions of yen rounded down unless otherwise stated)
Dividends to net
Dividends
Payout ratio
assets ratio(Full fiscal year)(consolidated) %(consolidated) %
4,195
116.9
3.6
3,985
120.1
3.6
105.4

Fiscal 2015

Year-end dividend breakdown: 45 yen (ordinary), 50 yen (special)

Fiscal 2016

Interim dividend breakdown: 45 yen (ordinary), 25 yen (special)

Fiscal 2016

Year-end dividend breakdown: 45 yen (ordinary), 25 yen (special)

Fiscal 2017

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

Fiscal 2017

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

3. Forecast of results for the fiscal year ending March 31, 2018 (April 1, 2017 to March 31, 2018)(% figures for the full fiscal year represent year-on-year (YoY) increase or decrease,
while % figures for the interim period are the % change compared with the same period of the previous fiscal year (YoY).)
Profit attributable to
Basic earnings
Net sales
Operating income
Ordinary income
owners of parent
per share
Millions of yen

Interim period
Full fiscal year

% Millions of yen

112,000
230,000

9.9
5.5

2,500
5,600

%

Millions of yen

33.2
20.2

%

2,500
5,600

Millions of yen

6.6
15.9

1,800
4,000

%

Yen

5.6
18.8

64.06
142.36* Notes(1) Transfer of major subsidiaries during term (transfer of specified subsidiaries in line with changes in the consolidated range): NoneNew:

― (Company name:)

Excluded:― (Company name:)(2) 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 estimate: None
4) Restatement: None
(3) Number of shares issued and outstanding (common shares)
1. Total number of shares issued andoutstanding (including treasury

March 31, 2017

31,500,000 shares

March 31, 2016

31,500,000 shares

March 31, 2017

3,402,428 shares

March 31, 2016

2,033,462 shares

March 31, 2017

28,900,516 shares

March 31, 2016

30,652,184 sharesshares) at the period-end
2. Total number of treasury shares atthe period-end

3. Average number of shares
outstanding during the period(Reference) Overview of non-consolidated operating results
1. Non-consolidated results for the fiscal year ended March 31, 2017 (April 1, 2016 to March 31, 2017)(1) Non-consolidated operating results(% change compared with same period of previous fiscal year (YoY))
Net sales
Millions of yen

Fiscal 2016
Fiscal 2015%

142,588
145,238

(1.8)
(1.6)

Basic earnings
per share
Fiscal 2016
Fiscal 2015

Operating income
Millions of yen

1,435
2,262

Diluted earnings per
share

Yen

Yen

75.70
80.27

－
－

Ordinary income%(36.5)(7.1)

Millions of yen

2,968
3,840

Profit%(22.7)
19.7

Millions of yen

2,187
2,460

%

(11.1)
36.0

(2) Non-consolidated financial position
Total assets

Net assets tototal assets

Net assets

Net assets
per share

Millions of yen

Millions of yen%

Yen

March 31, 2017
129,577
March 31, 2016
126,133(Reference) Shareholders equity:
March 31, 2017: 90,068 million yen,

90,06896,90769.5
76.8

3,205.56
3,288.75

March 31, 2016:

96,907 million yen

This earnings report is exempt from audit procedures.
Caution with respect to forward-looking statements(Note 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 could significantly
differ from the estimates due to a variety of factors. For details on the conditions that form the assumptions used forearnings forecasts and notes on using earnings forecasts, please refer to appendix page 5, “1. Summary of Operating
Results, etc. (6) Future Prospects.”

○Table of contents of the appendix
1. Summary of Operating Results, etc.................................................................................................................................................. 2(1) Summary of Operating Results for Fiscal 2016 .................................................................................................................... 2(2) Summary of Financial Position for Fiscal 2016 .................................................................................................................... 2(3) Summary of Cash Flows for Fiscal 2016 .............................................................................................................................. 3(4) Business Risks ...................................................................................................................................................................... 4(5) Basic Policy Regarding the Allocation of Profits / Dividends for Fiscal 2016 and Fiscal 2017 ............................................ 5(6) Future Prospects .................................................................................................................................................................... 5
2. Basic Approach to Selection of Accounting Standards .................................................................................................................... 6
3. Consolidated Financial Statements and Main Notes ...................................................................................................................... 7(1) Consolidated Balance Sheet .................................................................................................................................................. 7(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ............................................... 9(Consolidated Statement of Income)................................................................................................................................... 9(Consolidated Statement of Comprehensive Income) ......................................................................................................... 10(3) Consolidated Statements of Changes in Net Assets .............................................................................................................. 11(4) Consolidated Statements of Cash Flows ............................................................................................................................... 13(5) Notes on Consolidated Financial Statements ........................................................................................................................ 14(Notes Regarding Going Concern) ..................................................................................................................................... 14(Changes in Accounting Principles).................................................................................................................................... 14(Segment Information)........................................................................................................................................................ 14(Per Share Information) ...................................................................................................................................................... 16(Important Subsequent Events) ........................................................................................................................................... 16
4. Other ................................................................................................................................................................................................ 17(1) New Orders ......................................................................................................................................................................... 17(2) Geographical Segment Information .................................................................................................................................... 17-1-

1. Summary of Operating Results, etc.
(1) Summary of Operating Results for Fiscal 2016
1) Overview
During the fiscal year under review, the global economy on the whole was on course for recovery. Firm growthcontinued in the U.S. backed by strong consumer spending and business confidence resulting from inauguration of
the new government. In Europe, withdrawal of the United Kingdom from the European Union proved to have only
limited impact on the economy, while economies of China and other newly emerging countries remained firm. In
the Japanese economy, with the employment and income environment picture continuing to brighten, personal
consumption also recovered, certain signs of improvements were seen in corporate revenues, and, on the whole,the economy entered into a gradual trend to recovery.
In the electronics industry, although a decline in the market of PCs and tablets continued, the smartphonemarket was steady, products for automobiles and FA equipment also remained robust, resulting in a recovery indemand.
FY2016 is the third fiscal year for the 9th Medium-Term Business Plan (FY2014-FY2017) through which
Ryosan is pursuing business model shifts, by coping with changes in its business environment, and striving for
growth in a sustainable manner. To realize this plan, Ryosan is focusing on rebuilding its growth path andenhancing capital efficiency. However, during this consolidated business year, Ryosan's performance wasadversely influenced by strong yen rates and absence of large-scale projects.
As a result, Ryosan reported net sales of 218,003 million yen (down 4.4% from the previous year), operating
income of 4,659 million yen (down 15.9%), ordinary income of 4,833 million yen (down 13.6%), and profit
attributable to owners of parent of 3,367 million yen (down 8.3%) for the consolidated fiscal year under review.
2) Business Segment Informationa. Semiconductors
Ryosan sells memories, system LSIs and discrete semiconductors, and develops system LSIs. In thisconsolidated fiscal year, net sales were 125,310 million yen (down 5.9% from the previous year), and operating
income was 2,488 million yen (down 15.8%), mainly because of the appreciation of yen, slowdown of theinformation and communication equipment business, and sluggish sales of car-navigation systems and car-audios.
b. Electronic Components
Ryosan sells display devices, power supplies and electromechanical components. In this consolidated fiscal
year, net sales were 69,172 million yen (up 6.5% from the previous year), and operating income was 1,945
million yen (up 26.4%) despite of the appreciation of yen, thanks to strong performance in the in-vehicle
electrical equipment business and also increased sales of electromechanical components for consumers.
c. Electronic Equipment
Ryosan sells systems equipment and facilities equipment. In this consolidated fiscal year, due to termination ofbusiness for Multi Function Peripheral and some other reasons, net sales were 23,520 million yen (down 21.9%
from the previous year), and operating income was 694 million yen (down 53.9%).
The aforementioned amounts do not include consumption and other taxes.
(2) Summary of Financial Position for Fiscal 2016
1) Assets
Total assets increased by 4,609 million yen compared with March 31, 2016 to 161,620 million yen. This ismainly because cash and deposits declined by 11,922 million yen, while accounts receivable-other increased by
6,237 million yen, merchandise and finished goods increased by 5,553 million yen, and notes and accounts
receivable-trade increased by 3,844 million yen.
2) Liabilities
Total liabilities increased by 10,452 million yen compared with March 31, 2016 to 52,101 million yen. This ismainly because accounts payable-trade increased by 9,571 million yen.
-2-3) Net Assets
Net assets decreased by 5,843 million yen compared with March 31, 2016 to 109,519 million yen. This ismainly because profit attributable to owners of parent was 3,367 million yen, while payment of dividends andpurchase of treasury shares amounted to 4,817 million yen and 4,378 million yen respectively. The ratio of net
assets to total assets fell from 73.5% at the end of the previous fiscal year to 67.8% as of March 31, 2017.
(3) Summary of Cash Flows for Fiscal 2016
As of March 31, 2017, cash and cash equivalents decreased by 12,075 million yen compared with the end of
the previous fiscal year, to 38,692 million yen.
1) Net cash provided by (used in) operating activities
Regarding cash flow from operating activities in this consolidated fiscal year, funds in total decreased by 1,843
million yen. This is because profit before income taxes amounted to 4,746 million yen while notes and accounts
payable-trade increased by 9,559 million yen, accounts receivable-other increased by 6,271 million yen,inventories and notes and accounts receivable-trade increased by 5,641 million yen and 3,941 million yen
respectively. In the net cash provided by (used in) operating activities in the previous consolidated fiscal year,
there was an increase of funds by 4,748 million yen.
2) Net cash provided by (used in) investing activities
Regarding cash flow from investing activities in this consolidated fiscal year, funds in total decreased by 816
million yen due to factors such as 610 million yen in purchase of shares of subsidiaries and associates. In the net
cash provided by (used) in investing activities in the previous consolidated fiscal year, there was an increase offunds by 550 million yen.
3) Net cash provided by (used in) financing activities
Regarding cash flow from financing activities in this consolidated fiscal year, funds in total decreased by 9,223
million yen due to 4,801 million yen in cash dividends paid, and 4,378 million yen in purchase of treasury shares.
In the net cash provided by (used in) financing activities in the previous consolidated fiscal year, there was adecrease of funds by 9,543 million yen.
(Reference) Trends in cash flow-related indicators
Fiscal 2012
Net assets to total assets (%)
Net assets to total assets (%)(Market capitalization basis)
Cash flow to Interest-bearing
Liabilities (Years)
Interest coverage ratio (Times)

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

72.9

70.2

72.2

73.5

67.8

36.6

40.5

54.2

52.8

58.2

0.7

10.4

1.2

2.3

_

96.4

9.5

67.2

34.5

_

Net assets to total assets: Net assets / Total assets
Net assets to total assets (Market capitalization basis): Market capitalization / Total assets
Cash flow to Interest-bearing liabilities: Interest-bearing liabilities / Cash flow
Interest coverage ratio: Cash flow / Interest expense*All indicators have been calculated from consolidated financial figures.
*Market capitalization was calculated based on the number of shares issued and outstanding less treasury shares.
*Cash flow refers to cash flows from operating activities as shown on the consolidated statements of cash flows.
*Interest-bearing liabilities comprise all debt on which interest was paid in the liabilities section of the consolidatedbalance sheet. Interest expense represents interest paid as shown on the consolidated statements of cash flows.

-3-(4) Business Risks
The Ryosan Group, its business performance, share price, and financial position, are subject to a variety ofpotential risks, some of which are detailed briefly as follows.
Forward-looking statements contained in this section represent judgments of Ryosan Group’s management basedon information available as of the end of fiscal 2016 (March 31, 2017).
1) Sudden Changes in the Economic Environment
The Ryosan Group’s consolidated revenues are influenced by demand from the set makers who are its customers. This
demand is necessarily impacted by changes in economic conditions in those countries and regions in which Ryosan’s
principal clients operate. As a result, Ryosan’s performance and its financial position can be expected to deteriorate in theevent of economic downturn and a resulting slowdown in demand in its principal markets, such as Japan, Asia and otherregions.
2) Contracts with Suppliers
The Ryosan Group has concluded agency agreements with several suppliers inside and outside Japan. We havemaintained good business relations with them, but if it becomes difficult to continue these agreements due to therestructuring of suppliers’ businesses, including M&A etc., and the revision of sales channel strategies, this may cause
adverse effects on the business performance and financial status of Ryosan Group.
3) Exchange Rate Fluctuation
The Ryosan Group sells products across a number of regions including Japan, Asia and other countries. In preparing
consolidated financial statements, sales, expenses, assets and liabilities, denominated in foreign currencies are translated
into yen as of the Company’s balance sheet date. In principle, appreciation of the yen against major currencies impacts
negatively on Ryosan’s performance, while a weak yen impacts favorably. As a result, Ryosan’s consolidated operating
results and financial position are subject to fluctuations in foreign exchange rates.
4) Overseas Business Risk
The Ryosan Group does not operate in Japan alone. It also operates overseas, mainly in Asia. As a result, it is exposedto the following risks. The materialization of any of the following risks could adversely affect the Ryosan Group’s
operating results and its financial position.
a. Unforeseen changes in statutory and regulatory requirements and adverse changes in tax requirementsb. Inadequate and insufficient local infrastructure in the countries in which the Ryosan Group operatesc. Development of adverse political factors
d. Social unrest arising out of war, acts of terrorism and other developments5) Capital Market Volatility
As a part of its business activities, the Ryosan Group holds shares of certain financial institutions, customers andsuppliers, and is therefore susceptible to stock price fluctuations. Ryosan does not, however, adopt specific methods as ahedge against movements in stock prices. Accordingly, Ryosan’s performance and financial position are subject tosubstantial changes in stock markets.
6) Liability for Retirement Benefits
Ryosan accounts for retirement benefit expenses and the liability for retirement benefits using certain assumptions andan expected rate of return applicable to the Group’s pension plan assets for actuarial projections. In the event that theactual obligation differs from the projected obligation or there is a change in the assumptions leading to the calculationof the projected obligation, the difference in retirement benefit expenses and the liability for retirement benefits are
accrued and amortized over a generally accepted period. As a result, any significant decline in the discount rate andexpected rate of return applicable to the Group’s pension plan assets can impact its performance and financial position.
7) Natural Disaster
The suspension of sales due to facility damage or power or water supply shortages caused by such natural disasters as
earthquakes or typhoons or accidental disasters such as fire may adversely affect the business performance and financial
position of the Group. Also, if partners are damaged and the purchase and sale of merchandise is interrupted, thebusiness performance of the Group may be adversely affected.
-4-(5) Basic Policy Regarding the Allocation of Profits / Dividends for Fiscal 2016 and Fiscal 2017
1) Basic Policy Regarding the Allocation of Profits
Ryosan recognizes that the return of profits to shareholders is an important business priority, and so is working
to increase profit per share.
Ryosan's fundamental policy is to increase dividends gradually toward a goal of consolidated dividend payout
ratio of 50% or more, so as to continue high dividend payout in profits returned to shareholders. Based on thispolicy, to pave the way toward the final year of the 9th Medium-Term Business Plan, Ryosan shall continue its
measures to improve the efficiency of capital, whose main points are to raise the dividend payout ratio of theregular dividend, distribute special dividend, and expand the scale of purchases of treasury shares.
2) Dividends for Fiscal 2016 and Fiscal 2017
At the meeting of the Board of Directors held on May 12, 2017, a resolution was made to distribute the year-end
dividend for the consolidated fiscal year under review of 70 yen per share, consisting of an ordinary dividend of 45
yen per share and a special dividend of 25 yen per share. As a result, the annual dividend per share including theinterim dividend will be 140 yen.
Ryosan is forecasting ordinary dividend payment of 100 yen per share in its full fiscal year for the fiscal year
ending March 31, 2018 (consisting of an interim ordinary dividend of 50 yen per share and a fiscal year-end
ordinary dividend of 50 yen per share) plus a special dividend of 50 yen or more per share, resulting in the annual
dividend per share of 150 yen or more.
(6) Future Prospects
1) Projected Operating Results
Looking ahead, there are ongoing risks of an economic downturn coming from activities of the new government
in the U.S. or results of elections in the major European countries. It is generally agreed, however, that a period ofmoderate growth can be expected, in view of the current stable economic performance in the U.S. and otherdeveloped countries.
In the electronics industry, results in car electronics and FA equipment are expected to continue to be solid.
In FY2017, which is the final year of the 9th Medium-Term Business Plan (FY2014-FY2017), Ryosan willcontinue its efforts to rebuild its growth path and enhance capital efficiency, to build corporate value.
On this basis, operating forecasts for the fiscal year ending March 31, 2018 are as follows:

Net sales
Operating income
Ordinary income
Profit attributable to owners ofparentMillions of yen
230,000
5,600
5,600

YoY change [%]Increase 5.5
Increase 20.2
Increase 15.9

4,000

Increase 18.8

2) Estimates by Business Segment
a. Semiconductors
In this business, it is expected that the business for in-vehicle electrical equipment and FA equipment willremain robust. Therefore, net sales are forecast to be 131,000 million yen (up 4.5% from the previous year), andoperating income is expected to rise to 3,350 million yen (up 34.6%).
b. Electronic Components
In this business, it is expected that the business for in-vehicle electrical equipment and consumers willcontinue to be solid. Therefore, net sales are forecast to be 69,000 million yen (down 0.2% from the previousyear), and operating income is expected to rise to 2,000 million yen (up 2.8%).

-5-

c. Electronic Equipment
In this business, sales of in-vehicle electrical equipment are expected to expand, with investments in large
facilities contributing to the increase. Therefore, net sales are forecast to reach 30,000 million yen (up 27.5%
from the previous year), and operating income is expected to rise to 750 million yen (up 8.0%).

2. Basic Approach to Selection of Accounting Standards
For the time being, the Ryosan Group will prepare its consolidated financial statements in accordance withJapanese GAAP, out of consideration for issues such as comparability from period to period and with othercompanies in the same industry.
The Ryosan Group will appropriately address matters regarding IFRS adoption, taking into account prevailingcircumstances in Japan and overseas.

-6-

3. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheet(Millions of yen)
Fiscal Year Ended
March 31, 2016
(As of March 31, 2016)

Fiscal Year Ended
March 31, 2017
(As of March 31, 2017)

ASSETS
Current assets
Cash and deposits

50,76838,845

Notes and accounts receivable-trade64,654

68,499Merchandise and finished goods

22,20027,753Work in process

26

13

Securities－

300

Accounts receivable-other

736

6,974

Deferred tax assets

578

348

Other

261

205

Allowance for doubtful accounts

(41)

(64)

139,185

142,876

Buildings and structures

8,407

8,348

Accumulated depreciation(4,900)(4,949)Buildings and structures, net

3,506

3,398

Land

6,489

6,428

Lease assets

674

947

Accumulated depreciation

(401)

(408)

Leased assets, net

272

539

Other

2,412

2,396

Accumulated depreciation(2,244)(2,237)167

158

10,436

10,525

1,086

1,110

Investment securities

4,335

4,983

Deferred tax assets

141

163

Other

1,950

2,095

Allowance for doubtful accounts

(124)

(136)

Total investments and other assets

6,302

7,107

17,826

18,743

157,011

161,620

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

Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets

Total non-current assets
Total assets-7-

(Millions of yen)
Fiscal Year Ended
March 31, 2016
(As of March 31, 2016)

Fiscal Year Ended
March 31, 2017
(As of March 31, 2017)

LIABILITIESCurrent liabilities
Accounts payable - trade

24,88634,458

Short-term loans payable

10,785

11,419Lease obligations

124

148

Accounts payable - other

770

1,499

1,130

1,047

Income taxes payable

951

390

Other

419

131

39,07049,095

Lease obligations

188

450

Deferred tax liabilities

282

505

Net defined benefit liability

2,020

1,890

Asset retirement obligations

33

34

Other

53

125

2,578

3,005

41,64852,101

Capital stock

17,69017,690Capital surplus

19,114

19,114Retained earnings

82,66981,219Treasury shares(6,119)(10,498)

Total shareholders’ equity

113,354

107,525

1,375

1,540

Deferred gains or losses on hedges

(3)

(0)

Foreign currency translation adjustment

646

416

Remeasurements of defined benefit plans

(9)

36

2,008

1,993

Total net assets

115,362

109,519

Total liabilities and net assets

157,011

161,620

Accrued expenses

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

Total accumulated other comprehensive income-8-(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)(Millions of yen)

Net sales
Cost of Sales
Gross Profit
Selling, general and administrative expenses
Packing and transportation expenses
Provision of allowance for doubtful accounts
Directors' compensations
Salaries and allowances
Bonuses
Retirement benefit expenses
Welfare expenses
Depreciation
Other
Total 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
Taxes and dues
Miscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on sales of investment securities
Loss on valuation of golf membership
Loss on quality compensation
Total extraordinary losses
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to owners of parent-9-

Fiscal Year Ended Mar. 31, 2016

Fiscal Year Ended Mar. 31, 2017

(Apr. 1, 2015 to Mar. 31, 2016)(Apr. 1, 2016 to Mar. 31, 2017)

228,149
208,836
19,312

218,003
199,680
18,322

851
(7)
468
4,027
1,054
374
925
569
5,510
13,774
5,538

832
29
395
3,966
993
436
912
575
5,521
13,663
4,659

59
83
6
30
107
297

59
82
18
31
170
363

140
55
45
240
5,594

150
－
39
189
4,833

137
137

－
－

122
－
33
268
424
5,307
1,740
(103)
1,636
3,671
3,671

24
0
3
57
86
4,746
1,020
358
1,378
3,367
3,367

(Consolidated Statement of Comprehensive Income)(Millions of yen)

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 Incomes(Comprehensive income attributable to)Comprehensive income attributable to owners of parent- 10 -

Fiscal Year Ended Mar. 31, 2016

Fiscal Year Ended Mar. 31, 2017

(Apr. 1, 2015 to Mar. 31, 2016)(Apr. 1, 2016 to Mar. 31, 2017)

3,671

3,367

(519)
(4)
(1,908)

165
3
(230)

(230)

46

(2,663)
1,007

(14)
3,353

1,007

3,353

(3) Consolidated Statements of Changes in Net Assets
Fiscal Year Ended Mar. 31, 2016 (Apr. 1, 2015 to Mar. 31, 2016)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
periodCapital surplus

Retained earnings

Treasury shares

19,114

81,789(1,413)

17,690Total
shareholders’equity117,180(2,791)(2,791)

3,671

3,671
(4,706)(4,706)－－879(4,706)(3,826)

17,69019,114

82,669(6,119)113,354

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period1,894

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income

2,555

220

4,671

0

Total net
assets121,852(2,791)
3,671(4,706)(519)(4)(1,908)(230)(2,663)(2,663)

(519)

(4)

(1,908)(230)(2,663)(6,490)

1,375

(3)

646

(9)

2,008

115,362- 11 -

Fiscal Year Ended Mar. 31, 2017 (Apr. 1, 2016 to Mar. 31, 2017)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
periodTotal
shareholders’equityCapital surplus

Retained earnings

Treasury shares

19,114

82,669(6,119)17,690113,354(4,817)(4,817)

3,367

3,367
(4,378)(4,378)－－(1,450)(4,378)(5,828)

17,69019,114

81,219(10,498)

107,525

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period1,375

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income

646

(9)

2,008

(3)

Total net
assets

115,362(4,817)
3,367(4,378)
165

3

(230)

46

(14)

(14)

165

3

(230)

46

(14)

(5,843)

1,540

(0)

416

36

1,993

109,519- 12 -

(4) Consolidated Statements of Cash Flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Interest and dividend incomesInterest expenses
Loss (gain) on sales of property, plant and equipment
Other loss (gain)
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
Increase (decrease) in other assets and liabilities
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into restricted deposits
Purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of intangible assets
Purchase of shares of subsidiaries and associates
Proceeds from liquidation of subsidiaries
Purchases of investment securities
Proceeds from sales of investment securities
Payments for investments in capital
Collection of loans receivable
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
Cash and cash equivalents at the end of the period- 13 -

Fiscal Year Ended Mar. 31, 2016

Fiscal Year Ended Mar. 31, 2017

(Apr. 1, 2015 to Mar. 31, 2016)(Apr. 1, 2016 to Mar. 31, 2017)

5,307
586
122
(29)
228
(142)
140
(137)
(376)
2,731
39
(1,762)
(56)
(187)
6,465
139
(137)
(1,718)
4,748

4,746
597
24
27
(133)
(142)
150
－
556
(3,941)(5,641)
9,559(6,271)
232
(233)
137
(148)
(1,598)(1,843)

－
(219)
1,226
(340)
0
－
21
(90)
－
(5)
0
(224)
182
550

(152)
(99)
62
(278)
－
(610)
－
－
42
－
0
(91)
312
(816)

(1,859)(186)(4,706)(2,790)(9,543)(894)(5,139)55,90750,768189(233)(4,378)(4,801)(9,223)(192)(12,075)
50,76838,692

(5) Notes on Consolidated Financial Statements(Notes Regarding Going Concern)
Not applicable.

(Changes in Accounting Principles)
Implementation of Practical Solutions on Accounting for Changes in the Depreciation Method Associated with
Revisions to the FY2016 Tax Law
In accordance with revisions to the Corporate Tax Law, Ryosan has adopted the “Practical Solutions on
Accounting for Changes in the Depreciation Method Associated With Revisions to the FY2016 Tax Law”
(Practical Issues Task Force No. 32 issued on June 17, 2016), effective from the consolidated fiscal year underreview, and accordingly changed the depreciation method for facilities attached to buildings and for structuresacquired on or after April 1, 2016, from the declining balance method to the straight-line method.
There was only minor impact on operating income, ordinary income and profit before income taxes for the
consolidated fiscal year under review.
(Segment Information)(a) Segment Information
1. Overview of our Reporting Segments
Ryosan Group’s reporting segments are created from financial information sorted by business segment, and thePresident periodically conducts performance evaluations.
Ryosan Group has set up business headquarters at our head office for each merchandises and products, and we expand
our business activities by having each business headquarters formulate comprehensive strategies for the products thatthey handle, for both within Japan and overseas.
Therefore, with our business headquarters serving as our foundation, Ryosan Group has three reporting segments:“Semiconductors”, “Electronic components” and “Electronic equipment”.
Main products of each business segment are as follows:
Semiconductors:
Memories, system LSIs, discrete semiconductors
Electronic components:
Display devices, power supplies, electromechanical components
Electronic equipment:
Systems equipment, facilities equipment
2. Information Concerning Sales and Income or Loss Amount by Reporting Segment
For the consolidated fiscal year ended March 31, 2016
(April 1, 2015 to March 31, 2016)(Millions of yen, figures less than ¥1 million have been omitted)

Reporting Segment
Electronicequipment

Adjusted
amount(Note 1)

Amounts shownon consolidated
statement ofincome(Note 2)

Semiconductors

Electronic
components

133,103

64,93330,112

228,149―

228,149

―

―

―

―

―

―

133,103
2,955

64,933
1,540

30,112
1,507

228,149
6,002

―
(463)

228,149
5,538

Total

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

Notes:
1. The adjustment of -463 million yen to segment income represents corporate expenses that are not allocated to eachreporting 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 statement of income.
3. Segment asset is not shown in this reporting segment as it is not subject to President’s performance evaluation.

- 14 -

For the consolidated fiscal year ended March 31, 2017
(April 1, 2016 to March 31, 2017)(Millions of yen, figures less than ¥1 million have been omitted)

Reporting Segment
Electronicequipment

Adjusted
amount(Note 1)

Amounts shownon consolidated
statement ofincome(Note 2)

Semiconductors

Electronic
components

125,310

69,172

23,520218,003―

218,003

―

―

―

―

―

―

125,310
2,488

69,172
1,945

23,520694

218,003
5,128

―
(469)

218,003
4,659

Total

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

Notes:
1. The adjustment of -469 million yen to segment income represents corporate expenses that are not allocated to eachreporting 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 statement of income.
3. Segment asset is not shown in this reporting segment as it is not subject to President’s performance evaluation.
(b) Related Information
1. Information on products and services
As in the Reporting Segment
2. Information by region(1) Sales
For the consolidated fiscal year ended March 31, 2016
(April 1, 2015 to March 31, 2016)(Millions of yen)Japan
133,417

Asia

Other
86,844

7,887

Total
228,149

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:Asia:
China, Thailand, Hong Kong, Korea and others
Other:
United States and others
For the consolidated fiscal year ended March 31, 2017
(April 1, 2016 to March 31, 2017)(Millions of yen)Japan
129,679

Asia

Other

80,671
7,652
Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:Asia:
China, Thailand, Hong Kong, Korea and others
Other:
United States and others

Total
218,003(2) Property, plant and equipment
This information is not presented as the amount of property, plant and equipment in Japan constitutes more than 90%of the total amount of property, plant and equipment on the consolidated balance sheet.

- 15 -

(Per Share Information)(Yen unless otherwise stated)
Fiscal 2015
(April 1, 2015 to March 31, 2016)

Item

Fiscal 2016
(April 1, 2016 to March 31, 2017)

Net assets per share
3,915.04
3,897.82
Profit per share
119.77116.54(Notes) 1. Information on profit per share after dilution is not presented because there are no latent shares.
2. Basis for calculation(1) Net assets per share(Millions of yen unless otherwise stated)
Item

Fiscal 2015
(As of March 31, 2016)

Total of net assets
Amount to be deducted from the total of net assets(Of which non-controlling interests)
Closing net assets relating to common shares
Number of common shares as of end of term used in
the calculation of net assets per share (thousand shares)

Fiscal 2016
(As of March 31, 2017)

115,362－(－)
115,362

109,519－(－)
109,519

29,46628,097(2) Profit per share(Millions of yen unless otherwise stated)
Fiscal 2015
Fiscal 2016
(April 1, 2015 to(April 1, 2016 to
March 31, 2016)
March 31, 2017)

Item
Profit per share
Profit attributable to owners of parent
Amount not attributable to common shareholders
Profit attributable to owners of parent relating tocommon shares
Average number of common shares outstanding
during the term (thousand shares)(Important Subsequent Events)
Not applicable.

- 16 -

3,671
－

3,367
－

3,671

3,367

30,652

28,9004. Other(1) New Orders(Millions of yen, figures less than 1 million yen have been omitted)
Fiscal 2015

Fiscal 2016

(April 1, 2015 to March 31, 2016)(April 1, 2016 to March 31, 2017)

Semiconductors

131,455

134,477

Electronic components

64,262

70,957

Electronic equipment

30,854

24,770Total

226,571

230,205(2) Geographical Segment Information
Fiscal 2015, the fiscal year ended March 31, 2016
(April 1, 2015 to March 31, 2016)
Japan(Millions of yen, figures less than ¥1 million have been omitted)
Eliminations
Asia
Other
Total
Consolidated
or corporate

Sales:
133,763
86,6197,767(1) Sales to external customers(2) Internal sales or exchange
11,474177
3
between segments
Total
145,238
86,796
7,770
Segment income
2,506
2,175
240
Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia:
Hong Kong, Thailand, China, Korea and others
Other:
United States and others

228,149―

228,149

11,655(11,655)―

239,805
4,922(11,655)
615

228,149
5,538

Fiscal 2016, the fiscal year ended March 31, 2017
(April 1, 2016 to March 31, 2017)
Japan(Millions of yen, figures less than ¥1 million have been omitted)
Eliminations
Consolidated
Asia
Other
Total
or corporate

Sales:
131,258
79,198
7,546(1) Sales to external customers(2) Internal sales or exchange
11,330489
6
between segments
Total
142,588
79,687
7,553
Segment income
1,709
2,316
243
Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia:
Hong Kong, Thailand, China, Korea and others
Other:
United States and others- 17 -

218,003―

218,00311,825(11,825)―

229,829
4,269(11,825)389

218,0034,659