February 3, 2009

Third-Quarter Consolidated Earnings Report for Fiscal 2008, Ending March 31, 2009
Company name: Ryosan Company, Limited
Stock listing: First Section, Tokyo Stock Exchange
Securities code: 8140
(URL http://www.ryosan.co.jp)
Representative: Naoto Mimatsu, President
Inquiries: Harumitsu Seki
Managing Director and General Manager
Financing and Accounting Headquarters
TEL: +81-3-3862-2591
Scheduled filing date of quarterly earnings report: February 13, 2009
(Millions of yen rounded down)
1. Consolidated Operating Results for the First Three Quarters of Fiscal 2008
(April 1, 2008 to December 31, 2008)(1) Consolidated Operating Results (Cumulative)(% figures represent year-on-year increase or decrease)
Net Sales

Operating Income

Millions of yen％

182,481―

216,293(6.8)

Fiscal 2008, First Three
Quarters
Fiscal 2007, First Three
Quarters

Net Income
per Share

Net Income

Millions of yen

％

6,129

―

7,114

―

4,133

―

8,118

18.2

8,661

21.8

5,145

5.3

％

Millions of yen

Net Income per
Share after Dilution
Yen

Fiscal 2008, First Three
Quarters
Fiscal 2007, First Three
Quarters

Ordinary Income％

Millions of yen

Yen

117.55—142.22—(2) Consolidated Financial Position
Total Assets

Net Assets

Net Assets to Total
Net Assets per Share
Assets%Yen

Millions of yen

Millions of yen

December 31, 2008

161,287

117,18472.6

3,352.19

March 31, 2008
(Reference)
Shareholders’ equity:

174,022

118,91168.3

3,348.70

Dec. 31, 2008:
Mar. 31, 2008:

117,074 million yen
118,782 million yen

2. Dividends(Record Date)

Jun. 30, 2008

Fiscal 2007
Fiscal 2008
Fiscal 2008
(Forecast)

Dividends per Share
Dec. 31, 2008

Sep. 30, 2008

Mar. 31, 2009

Annual

Yen

Yen

Yen

Yen

Yen

—
—

40.00
40.00

—
—

40.00

80.00
—

40.00

80.00

Note: Revision to dividend forecast for the third quarter of the fiscal year ending March 31, 2009: No
3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending March 31, 2009
(April 1, 2008 to March 31, 2009) [Reference](% figures represent year-on-year increase or decrease)
Net Sales
Millions of yen

Full Fiscal Year

220,000%(23.1) 2

Operating Income

Ordinary Income

Millions of yen

Millions of yen%

6,000 (44.1)

Net Income
per Share

Net Income%

7,000 (37.9)

Millions of yen%

Yen

4,000 (40.6)

114.00Note: Revisions to consolidated operating forecasts for the third quarter of the fiscal year ending March 31,
2009: Yes

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4.

Other
(1) Changes in Important Subsidiaries during the Period (Changes in Special Subsidiaries Involving
Changes in the Scope of Consolidation: No(2) Application of the Simplified Accounting Method and Special Accounting Practices in the
Preparation of Quarterly Consolidated Financial Statements: Yes(3) Changes in Accounting Principles, Procedures and Presentation Methods in connection with the
Preparation of Quarterly Consolidated Financial Statements (Recorded under “Changes inImportant Items Considered Fundamental to the Preparation of Quarterly Consolidated Financial
Statements”)
1. Changes in accordance with revisions to accounting standards and related practices: Yes
2. Changes in items other than 1. above: No
Note: Please refer to “Qualitative Information / Financial Statements and Other” 4. Other on
pages 6 and 7 for details.
(4) Number of Shares Issued and Outstanding (Common Stock)
1. Total number of shares issued and outstanding (including treasury stock) as of theperiod-end:
Dec. 31, 2008
36,500,000 sharesMar. 31, 2008 36,500,000 shares
2. Total number of treasury stock as of the period-end:
Dec. 31, 2008
1,575,264 sharesMar. 31, 2008
1,028,717 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)Third quarter fiscal 2008 35,167,463 shares
Third quarter fiscal 2007 36,182,249 shares

Cautionary Statement Concerning Operating Results Forecasts and Other Special Items[Regarding the use of operating results forecasts]
The aforementioned forecasts were made based on information available to management as of the date ofthis report. Actual results could differ significantly from forecasts due to a variety of factors.
Effective from the fiscal year ending March 31, 2009, Ryosan Company, Limited has applied the
Accounting Standard for Quarterly Financial Reporting Statement No. 12 issued by the AccountingStandards Board of Japan (ASBJ) on March 14, 2007 and the Guidance on Accounting Standard for
Quarterly Financial Reporting Guidance No. 14 issued by the ASBJ on March 14, 2007. Furthermore,quarterly consolidated financial statements have been prepared in accordance with the Regulation for
Quarterly Consolidated Financial Reporting.

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[Qualitative Information / Financial Statements and Other]
1.

Qualitative Information and Other matters Concerning Consolidated Operating Results for theFirst Three Quarters of Fiscal 2008
(1) Overview
Looking at macroeconomic conditions throughout the first three quarters of fiscal 2008, the nine-month
period from April 1, 2008 to December 31, 2008, the global economy entered a period of steady decline.
This was mainly attributable to the collapse of the sub-prime loan bubble, resulting in what many pundits
have called a “once in a century financial crisis,” and has contributed to a slump in the real economy. On
the domestic front, business results in Japan’s corporate sector have been further affected by the marked
and sharp appreciation in the value of the yen.
In the electronics industry, the Ryosan Group’s principal field of activity, demand fell dramatically
prompting unprecedented adjustments in production by most if not all manufacturers.
Under this prevailing harsh business environment, the Ryosan Group continued to push forward under theguidance of its seventh medium-term management plan with the aim of boosting its operating results.
During the period under review, the Group worked diligently to promote a growth strategy while at thesame time implementing measures designed to improve its earnings structure. Despite these endeavors, andin light of the rapid drop in demand for semiconductors and electronic components, Ryosan incurred adecline in both revenues and earnings. Consolidated net sales for the nine-month period ended December
31, 2008 were ¥182,481 million, a decrease of 15.6% compared with the corresponding period of theprevious fiscal year. From a profit perspective, operating income fell 24.5% year on year to ¥6,129 million,
ordinary income contracted 17.9% to ¥7,114 million and net income for the first three quarters of the fiscal
year under review dropped 19.7% compared with the corresponding period of the previous fiscal year to¥4,133 million.
(2) An Overview of Operating Results by Business Segment
a. Semiconductors
In the Semiconductor segment, the Ryosan Group is engaged in the sales of memories, system LSIs anddiscrete semiconductors. The Group is also active in the development of system LSIs. In the first threequarters of the fiscal year ending March 31, 2009, sales of system LSIs for digital AV devices, ASICs forcamera modules and other products declined. As a result, Semiconductor segment sales fell 12.5%
compared with the corresponding period of the previous fiscal year to ¥98,993 million, while segment
operating income contracted 18.8% year on year to ¥4,693 million.
b. Electronic components
In the Electronic Components segment, the Ryosan Group is active in the sale of display devices, power
supplies and mechanical components. During the period under review, sales of LCDs for PNDs and digitalstill cameras as well as other products decreased. Accounting for these factors, sales in the Electronic
Components segment declined 23.1% compared with the corresponding period of the previous fiscal yearto ¥61,412 million. On the earnings front, segment operating income fell 23.2% year on year to ¥2,571
million.
c. Electronic equipment
The Ryosan Group markets systems equipment and facilities equipment in the Electronic Equipment
segment. Reflecting the drop in systems equipment sales for arcade games and other products, sales in the-3-Electronic Equipment segment edged down 3.4% compared with the corresponding period of the previous
fiscal year to ¥16,455 million. On a year-on-year basis, segment operating income dropped 27.6% to ¥378
million.
d. Ryosan products
In the Ryosan Products segment, the Group manufactures and markets heat sinks, which are devices thatdissipate the heat generated by semiconductors. During the first three quarters of the fiscal year underreview, segment sales amounted to ¥5,620 million, a decrease of 10.2% compared with the corresponding
period of the previous fiscal year. This was mainly attributable to the decline in sales of certain products
including heat sinks used in measuring equipment. Turning to segment earnings, on the other hand,operating income climbed 15.1% compared with the corresponding period of the previous fiscal year to¥541 million.
(3) An Overview of Operating Results by Geographic Region
a. JapanIn the nine-month period ended December 31, 2008, the Ryosan Group posted lower year-on-year sales of
LCDs for PNDs, ASICs for camera modules and other products in Japan. Accounting for these factors,
domestic sales declined 15.3% compared with the corresponding period of the previous fiscal year to¥135,321 million. On the earnings front, operating income amounted to ¥4,142 million, a year-on-year
decrease of 27.6%.
b. Asia
Sales of system LSIs for digital AV devices and car audio equipment as well as other products deteriorated
during the first three quarters of the fiscal year under review. As a result, sales in the Asia region amounted
to ¥56,495 million, a drop of 18.2% compared with the corresponding period of the previous fiscal year.
Operating income also contracted 15.8% year on year totaling ¥1,591 million for the period under review.
2.

Qualitative Information and Other Matters Concerning Consolidated Financial Position for theend of the Third Quarter of Fiscal 2008
(1) An Overview of Financial Position
Total assets as of December 31, 2008 stood at ¥161,287 million, a decrease of ¥12,735 million comparedwith the end of the previous fiscal year.
Net assets amounted to ¥117,184 million as of the end of the period under review, down ¥1,726 million
compared with the previous fiscal year-end. As a result, the equity ratio (net assets to total assets) was
72.6%.
(2) An Overview of Cash Flows
Cash and cash equivalents as of December 31, 2008 stood at ¥42,992 million. This was ¥84 million lower
than the end of the previous fiscal year.
(Cash flows from operating activities)
Net cash provided by operating activities for the nine-month period ended December 31, 2008 amounted to¥5,659 million. Major cash inflows for the period were income before income taxes and minority interests
totaling ¥6,959 million and a decrease in accounts receivable of ¥14,843 million. Principal cash outflows
were a decrease in accounts payable amounting to ¥9,385 million and income taxes paid of ¥4,157 million.

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(Cash flows from investing activities)
Net cash used in investing activities for the first three quarters of the fiscal year ending March 31, 2009
totaled ¥3,314 million. Major movements were payments for time deposits of ¥3,000 million, purchases ofproperty, plant and equipment of ¥181 million and an increase in loans amounting to ¥116 million.
(Cash flows from financing activities)
Net cash used in financing activities was ¥1,886 million. During the period under review, Ryosan
undertook repurchases of treasury stock totaling ¥1,270 million. Other financing cash outflows included
cash dividends paid of ¥2,815 million and an increase in short-term borrowings, net of ¥2,196 million.
3.

Qualitative Information and Other Matters Concerning Consolidated Forecasts for the Fiscal
Year Ending March 31, 2009
Impacted by the worldwide recession and simultaneous downturns in the economies of industrialized andemerging nations, current harsh economic conditions are expected to continue into the foreseeable future.
Taking into consideration the Ryosan Group’s operating results for the first three quarters of the fiscal year
ending March 31, 2009 as well as expectations of a further slump in demand by business partners forsemiconductors, electronic components and other products during the fourth quarter of the fiscal year underreview, the Company has revised its forecasts of consolidated operating results for the fiscal year ending
March 31, 2009 previously disclosed on October 30, 2008. Brief details are as follows.
[Forecasts of consolidated operating results]

Net Sales
Previous forecast (A)Revised forecast (B)Change (B – A)
Change (%)
FY 2007

260,000
220,000(40,000)(15.4)
286,098

Operating
Income8,400
6,000(2,400)(28.6)
10,737

Millions of yen unless otherwise stated
Net Income
Ordinary
Net Income
per Share
Income
(Yen)
9,300
5,700
162.997,000
4,000
114.00(2,300)(1,700)―(24.7)(29.8)―
11,277
6,738
187.15[(Reference) Forecasts of non-consolidated operating results]

Net Sales
Previous forecast (A)Revised forecast (B)Change (B – A)
Change (%)
FY 2007

190,000
166,000(24,000)(12.6)
212,419

Operating
Income5,600
3,900(1,700)(30.4)
7,574

Millions of yen unless otherwise stated
Net Income
Ordinary
Net Income
per Share
Income
(Yen)
7,500
4,300
122.96
5,900
3,300
94.05
(1,600)(1,000)―(21.3)(23.3)
―
9,455
5,499
152.75(Forecast Operating Results by Business Segment)
a. Semiconductors
In the Semiconductor segment, Ryosan is projecting sales of system LSIs for digital AV devices, ASICs forcamera modules and other products to decline. As a result, sales in this segment for the full fiscal year
ending March 31, 2009 are forecast to fall 22.1% compared with the previous fiscal year to ¥116,000-5-million. From a profit perspective, operating income is also anticipated to contract 31.1% year on year to¥5,000 million.
b. Electronic components
For the full fiscal year ending March 31, 2009, sales of LCDs for PNDs and digital still cameras as well asother products are expected to decrease. On this basis, Electronics Components segment sales are forecast
to drop 27.0% compared with the previous fiscal year to ¥75,300 million. On the earnings front, operating
income is projected to fall 34.1% year on year to ¥2,900 million.
c. Electronic equipment
In the Electronic Equipment segment, sales of equipment for manufacturing magnetic heads and otherproducts are anticipated to decline over the full fiscal year ending March 31, 2009. Accounting for thesefactors, segments sales are forecast to decrease 14.3% compared with the previous fiscal year to ¥22,000
million while operating income is expected to decline 62.4% year on year to ¥380 million.
d. Ryosan products
For the fiscal year under review, sales of heat sinks for FA equipment and other products are projected tofall. As a result, sales in the Ryosan Products segment are forecast to contract 20.1% compared with theprevious fiscal year to ¥6,700 million. Operating income is also anticipated to decline 29.6% year on year
to ¥520 million.
4. Other(1) Changes in Important Subsidiaries during the Period (Changes in Special Subsidiaries Involving
Changes in the Scope of Consolidation: None.
(2) Application of the Simplified Accounting Method and Special Accounting Practices in the Preparationof Quarterly Consolidated Financial Statements:
The simplified accounting method is used in certain cases where the monetary effect is considerednegligible.
(3) Changes in Accounting Principles, Procedures and Presentation Methods in connection with the
Preparation of Quarterly Consolidated Financial Statements:
1. Effective from the first quarter of the fiscal year ending March 31, 2009, Ryosan Company,
Limited has applied the Accounting Standard for Quarterly Financial Reporting Statement No. 12
issued by the Accounting Standards Board of Japan (ASBJ) on March 14, 2007 and the Guidanceon Accounting Standard for Quarterly Financial Reporting Guidance No. 14 issued by the ASBJ on
March 14, 2007. Furthermore, quarterly consolidated financial statements have been prepared inaccordance with the Regulation for Quarterly Consolidated Financial Reporting.
2. In connection with inventories held for sale in the ordinary course of business, the Ryosan Grouphas historically adopted the lower of cost or market value determined by the moving averagemethod. Effective from the first quarter of the fiscal year ending March 31, 2009, the RyosanGroup has adopted ASBJ Statement No. 9 “Accounting Standard for the Measurement of
Inventories.” As a result, inventories are in principle stated at cost, cost being determined by themoving average method (with book values written down due to decreased profitability of balance
sheet asset amounts).
Taking into consideration this change in accounting standard, and in comparison with the previous
method, gross profit; operating income, and; ordinary income each decline by ¥21 million, while
income before income taxes and minority interests decreases by ¥134 million.
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The impact of this change on business segments is identified in individual business segment
information.
3. From a consolidated account settlement perspective, the Ryosan Group has undertaken all essential
adjustments following adoption of the Practical Issues Task Force No. 18 “Practical Solution on
Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial
Statements” issued by the ASBJ on May 17, 2006 from the first quarter of the fiscal year ending
March 31, 2009.

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5. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheet(Millions of yen)
Third Quarter of the

Fiscal Year Ended March 31,

Fiscal Year Ending March 31,

2008

2009

(As of March 31, 2008)(As of December 31, 2008)ASSETS
Current assets:
Cash and deposits

40,99325,087

Trade notes and accounts receivable

71,142

87,219Marketable securities

1,998

17,992Merchandise

18,172

16,313Finished products

290

303

Raw materials

278

329

Work in process

135

191

Accrued income

2,668

2,287

Deferred tax assets

312

525

Other current assets

491

408

Allowance for doubtful accounts
Total current assets

(166)

(225)

136,317150,432

Fixed assets:
Property, plant and equipment:
Buildings and structures (net)

5,188

5,402

Land

8,198

8,210

Other fixed assets (net)

762

996

14,14914,610Goodwill

50

101

Other intangible fixed assets

523

585

Total intangible fixed assets

573

687

Investment securities

2,946

4,042

Deferred tax assets

2,420

2,265

Long-term deposits

3,500

500

Other

2,427

2,709

Allowance for doubtful accounts(976)(1,140)Allowance for loss on investments

(71)

(85)

Total investments and other assets

10,246

8,292

24,97023,590161,287

174,022

Total property, plant and equipment
Intangible fixed assets:

Investments and other assets:

Total fixed assets
Total assets-8-5. Consolidated Quarterly Financial Statements
５．（要約）四半期連結財務諸表(Millions of yen)
Third Quarter of the

Fiscal Year Ended March 31,

Fiscal Year Ending March 31,

2008

2009

(As of March 31, 2008)(As of December 31, 2008)
LIABILITIESCurrent liabilities:
Trade notes and accounts payable

33,214

Short-term bank loans

5,610

43,5194,090

Accrued income taxes

278

2,120

Provision for bonuses

459―

Other current liabilities

1,921

2,916

Total current liabilities

41,48552,646

2,299

2,149

317

314

Long-term liabilities:
Employees’ retirement benefits
Other long-term liabilities
Total long-term liabilities
Total liabilities

2,617

2,463

44,102

55,11017,690

NET ASSETS
Shareholders’ equity:
Common stock

17,690Additional paid-in capital

19,121

19,122Retained earnings

86,77585,457

Treasury stock(4,206)(2,940)Total shareholders’ equity

119,380

119,329

Net unrealized gain on other marketable securities

(11)

520

Gain (loss) on deferred hedges

(8)

(6)

Foreign currency translation adjustments(2,285)(1,061)

Total valuation and conversions(2,306)(547)

Valuation and conversions:

Minority interests
Total net assets
Total liabilities and net assets

-9-

110

129

117,184

118,911161,287

174,022

5. Consolidated Quarterly Financial Statements(2) Consolidated Quarterly Statement of Income (Cumulative)(Millions of yen)First Three Quarters of the
Fiscal Year Ending March 31, 2009
(April 1, 2008 to December 31, 2008)
Net sales

182,481

Cost of Sales

165,823

Gross Profit

16,657

Selling, general and administrative expenses
Packaging and freight expenses

525

Directors’ remuneration

403

Employees’ salaries

2,710

Bonuses

1,019

Retirement benefit expenses

345

Employee benefits

601

Depreciation and amortization

445

Other

4,477

Total selling, general and administrative expenses

10,5286,129

Operating income
Non-operating income
Interest income

136

Dividend income

337Management consultation fee

113

Gain on foreign exchange

198

Other

341

Total non-operating income

1,127

Non-operating expenses
Interest expense

114

Other

27

Total non-operating expenses

141
7,114

Ordinary income
Extraordinary gains
Gain on sale of property, plant and equipment

2

Gain on reversal of allowance for doubtful accounts

208

Gain on reversal of allowance for loss on investment

13

Total extraordinary gains

224

Extraordinary losses
Loss on disposal of property, plant and equipment

33

Loss on devaluation of inventories

112

Loss on devaluation of investment securities

225

Loss on devaluation of golf club memberships

8

Total extraordinary losses

380

Income before income taxes and minority interests

6,959

Income taxes ― current

2,391

Income taxes ― deferred

429

Total income taxes

2,820

Minority interests

4
4,133

Net income- 10 -

5. Consolidated Quarterly Financial Statements(3) Consolidated Quarterly Statement of Cash Flows(Millions of yen)First Three Quarters of the
Fiscal Year Ending March 31, 2009
(April 1, 2008 to December 31, 2008)
Cash flows from operating activities:
Income before income taxes and minority interests

6,959

Depreciation and amortization

583

Decrease in allowance for doubtful accounts(208)

Increase in employees’ retirement benefits

156

Interest an dividend income(474)Interest expense

114

Loss on sale and disposal of property, plant and equipment

33

Loss on devaluation of investment securities

225

Decrease in accounts receivable

14,843

Increase in inventories(2,236)

Decrease in accounts payable(9,385)

Other(1,143)

Subtotal

9,468Interest and dividends received

462

Interest paid

(114)

Income taxes paid

(4,157)

Net cash provided by operating activities

5,659

Cash flows from investing activities:
Payments for time deposits(3,000)Purchases of property, plant and equipment(181)

Proceeds from sale of property, plant and equipment

13

Purchases of intangible fixed assets
Payments for the acquisition of shares in affiliates

(2)
(27)

Increase in loans(116)

Net cash used in investing activities(3,314)

Cash flows from financing activities:
Increase in short-term borrowings, net

2,196

Repurchases of treasury stock(1,270)

Proceeds from disposal of treasury stock3

Cash dividends paid

(2,815)

Net cash used in financing activities(1,886)

Effect of foreign currency translation adjustments on cash and cash equivalents

(542)
(84)

Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the period

43,077

Cash and cash equivalents at the end of the period

42,992- 11 -

Effective from the first quarter of the fiscal year ending March 31, 2009, Ryosan Company, Limited has
applied the Accounting Standard for Quarterly Financial Reporting Statement No. 12 issued by the
Accounting Standards Board of Japan (ASBJ) on March 14, 2007 and the Guidance on AccountingStandard for Quarterly Financial Reporting Guidance No. 14 issued by the ASBJ on March 14, 2007.
Furthermore, quarterly consolidated financial statements have been prepared in accordance with theRegulation for Quarterly Consolidated Financial Reporting.
(4) Notes Regarding Going Concern Assumptions
None.
(5) Segment Information[Segment Information by Business Type]For the First Three Quarters of the Fiscal Year Ending March 31, 2009 (April 1, 2008 to December 31,
2008)(Millions of yen)
Semiconductors

Electronic
Components

Electronic
Equipment

RyosanProducts

Total

98,993

61,412

16,455

5,620

―

―

―

Total Sales

98,993

61,412

Operating Expenses

94,299Operating Income

4,693

Eliminations
or Corporate

Consolidated

182,481―

182,481

―

―

―

―

16,455

5,620

182,481―

182,481

58,841

16,077

5,078

174,296

2,055

176,351

2,571

378

541

8,184

(2,055)

6,129

Sales and Operating
IncomeSales:(1) Sales to External
Customers(2) Internal Sales
betweenSegments of
Exchange

Notes:
1. Methods of determining business segments and main products classified under each business segment(1) Business segments are classified on the basis of organization, product type and sales structure.
(2) Main products of each business segment:
Semiconductors: memories, system LSIs, discrete semiconductors
Electronic components: display devices, power supplies, electromechanical parts
Electronic equipment: systems equipment, facilities equipment
Ryosan products: heat sinks (semiconductor circuit elements)
2. Unallocated operating expenses included in “Eliminations or Corporate” totaled ¥2,055 million in thethird quarter of the fiscal year ending March 31, 2009. These expenses consisted principally of
Ryosan’s expenses related to the Company’s planning, administration and accounting departments.
3. Effective from the first quarter of the fiscal year ending March 31, 2009, the Ryosan Group has
adopted ASBJ Statement No. 9 “Accounting Standard for the Measurement of Inventories” issued on
July 5, 2006. As a result, the method for measuring inventories has changed from the lower of cost or
market method to the cost method (with book values written down due to decreased profitability ofbalance sheet asset amounts).
On this basis, and in comparison with the previous method, operating income for the Semiconductor,
Electronic Components and Ryosan Products segments decline by ¥15 million, ¥5 million and ¥4
million, respectively. Operating income for the Electronic Equipment segment increases by ¥3 million.

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[Geographical Segment Information]
For the First Three Quarters of the Fiscal Year Ending March 31, 2009 (April 1, 2008 to December 31,
2008)(Millions of yen)
Japan

Asia

Eliminations or

Total

Consolidated

Corporate

Sales and Operating
IncomeSales:(1) Sales toExternal
Customers(2) Internal Sales
betweenSegments
of Exchange

126,226

56,255

182,481―

182,481

9,095

240

9,335

(9,335)―

Total Sales

135,32156,495

191,816(9,335)

182,481

Operating Expenses

131,179

54,903

186,082(9,731)

176,351

Operating Income

4,142

1,591

5,733

395

6,129

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia: Hong Kong, Singapore, Taiwan, Malaysia and others
3. Operating expenses are allocated to each geographical segment.
4. Effective from the first quarter of the fiscal year ending March 31, 2009, the Ryosan Group has
adopted ASBJ Statement No. 9 “Accounting Standard for the Measurement of Inventories” issued on
July 5, 2006. As a result, the method for measuring inventories has changed from the lower of cost or
market method to the cost method (with book values written down due to decreased profitability ofbalance sheet asset amounts).
On this basis, and in comparison with the previous method, operating income in Japan and Asia declineby ¥19 million and ¥2 million, respectively[Overseas Sales]
For the First Three Quarters of the Fiscal Year Ending March 31, 2009 (April 1, 2008 to December 31,
2008)(Millions of yen)
Asia
Overseas Sales
Consolidated Net Sales
Ratio of Overseas Sales to Consolidated Net
Sales (%)

Total

70,66570,665―

182,481

38.7

38.7

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia: Hong Kong, Korea, China, Taiwan 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).
(6) Notes Regarding Substantial Changes in Shareholders’ Equity
None.
- 13 -

[Reference Material]
Financial Statements and Other Information for the First Three Quarters of the Fiscal Year Ended
March 31, 2008
(1) First Three Quarters Consolidated Statement of Income(Millions of yen)First Three Quarters of the
Fiscal Year Ended March 31, 2008
(April 1, 2007 to December 31, 2007)
I. Net sales

216,293

II. Cost of sales

197,293

Gross profit

19,000III. Selling, general and administrative expenses

10,881

Operating income

8,118

IV. Non-operating income

814

1. Interest and dividend income

236

2. Business guidance fee

118

3. Gain on foreign exchange

6

4. Refund on cancellation of insurance contracts

114

5. Other338

V. Non-operating expenses

271

1. Interest expense

197

2. Other74

Ordinary income

8,661

VI. Extraordinary gains

34

1. Gain on sale of property, plant and equipment

1

2. Gain on reversal of allowance for doubtful accounts

32

3. Other

1VII. Extraordinary expenses

79

1. Loss on sale and disposal of property, plant and equipment

31

2. Loss on devaluation of investment securities

47

Income before income taxes and minority interests

8,616

Income taxes ― current

3,185

Income taxes ― deferred

284

Loss in equity of minority interests(0)

Net income

5,145- 14 -

(2) First Three Quarters Consolidated Statement of Cash Flows(Millions of yen)First Three Quarters of the
Fiscal Year Ended March 31, 2008
(April 1, 2007 to December 31, 2007)
I. Cash flows from operating activities:
Income before income taxes and minority interests

8,616

Depreciation and amortization

645

Decrease in transfer to allowance for doubtful accounts(32)

Increase in employees’ retirement benefits

123Interest and dividend income(236)Interest expense

197

Gain on sale of property, plant and equipment(1)

Loss on sale and disposal of property, plant and equipment
Decrease in notes and accounts receivable

31
6,545

Increase in inventories(683)

Decrease in notes and accounts payable(4,270)Other(1,278)Subtotal

9,657Interest and dividends received

249

Interest paid

(196)

Income taxes paid

(4,723)

Net cash provided by operating activities

4,987

II. Cash flows from investing activities:
Net increase in time deposits(14)

Purchases of property, plant and equipment(311)

Proceeds from sale of property, plant and equipment

7

Purchases of intangible fixed assets(4)

Purchases of investment securities(199)

Proceeds from collection of loans

102

Net cash used in investing activities(420)

III. Cash flows from financing activities:
Increase in short-term borrowings, net

55

Repurchases of treasury stock(2,883)

Cash dividends paid

(2,897)

Net cash used in financing activities(5,724)

IV. Effect of foreign currency translation adjustments on cash and cash equivalents

104

V. Net decrease in cash and cash equivalents(1,053)

VI. Cash and cash equivalents at the beginning of the period

40,880VII. Cash and cash equivalents at the end of the period

39,827- 15 -

(3) Segment Information[Segment Information by Business Type]For the First Three Quarters of the Fiscal Year Ended March 31, 2008 (April 1, 2007 to December 31,
2007)(Millions of yen)
Semiconductors

Electronic
Components

Electronic
Equipment

RyosanProducts

Total

113,154

79,843

17,0406,255

216,293―

216,293

―

―

―

―

―

―

―

Total Sales

113,154

79,843

17,0406,255

216,293―

216,293

Operating Expenses

107,371

76,493

16,5185,784

206,168

2,006

208,175

Operating Income

5,783

3,349

522

470

10,125(2,006)

8,118

Eliminations
or Corporate

Consolidated

Sales and Operating
IncomeSales:(1) Sales toExternal
Customers(2) Internal Sales
BetweenSegments of
Exchange

Notes:
1. Methods of determining business segments and main products classified under each business segment(1) Business segments are classified on the basis of organization, product type and sales structure.
(2) Main products of each business segment:
Semiconductors: memories, system LSIs, discrete semiconductors
Electronic components: display devices, power supplies, electromechanical parts
Electronic equipment: systems equipment, facilities equipment
Ryosan products: heat sinks (semiconductor circuit elements)
2. Unallocated operating expenses included in “Eliminations or Corporate” totaled ¥2,006 million in thethird quarter of the fiscal year ended March 31, 2008. These expenses consisted principally of Ryosan’s
information system investment and expenses related to the Company’s planning, administration andaccounting departments.

- 16 -

[Geographical Segment Information]
For the First Three Quarters of the Fiscal Year Ended March 31, 2008 (April 1, 2007 to December 31,
2007)(Millions of yen)
Japan

Asia

Eliminations or

Total

Consolidated

Corporate

Sales and Operating
IncomeSales:(1) Sales toExternal
Customers(2) Internal Sales
betweenSegments
of Exchange

147,571

68,722

216,293―

216,293

12,188366

12,554(12,554)―

Total Sales

159,759

69,088228,848(12,554)

216,293

Operating Expenses

154,039

67,199221,238(13,063)

208,175

Operating Income

5,720

1,889

7,609

508

8,118

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia: Hong Kong, Singapore, Taiwan, Malaysia and others
3. Operating expenses are allocated to each geographical segment.
[Overseas Sales]
For the First Three Quarters of the Fiscal Year Ended March 31, 2008 (April 1, 2007 to December 31,
2007)(Millions of yen)
Asia
Overseas Sales
Consolidated Net Sales
Ratio of Overseas Sales to Consolidated Net
Sales (%)

Total

87,30887,308―216,293

40.4

40.4

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

- 17 -