October 29, 2020

First Half Earnings Report for Fiscal Year 2020, Ending March 31, 2021
[Japanese Standards] (Consolidated)
Company name:Securities code:
Representative:

Ryosan Company, Limited
Stock listing: First Section, Tokyo Stock Exchange
8140
URL https://www.ryosan.co.jp/
Kazuhiko Inaba, Representative Director, President
Masahide Nishiura, Director, Senior Executive Officer,
Inquiries:
TEL: +81-3-3862-2591
General Manager, Finance and Accounting Headquarters
Scheduled filing date of quarterly earnings report:
November 13, 2020
Scheduled payment date of dividend:
November 27, 2020
Supplementary materials for the quarterly financial results:
Yes
Investor conference for the quarterly financial results:
Yes(Millions of yen rounded down)

1. Consolidated results for the first half of fiscal year 2020 (April 1, 2020 to September 30, 2020)(1) Consolidated operating results (Cumulative)(% change compared with the same period of the previous fiscal year (YoY))
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

97,191(16.5)

1,252(33.7)

1,675(10.8)

1,485

37.4

1,888

(34.8)

1,877

15.9

1,081

2.3

First Half, Fiscal Year 2020

First Half, Fiscal Year 2019
116,445(9.7)(Note) Comprehensive income
First Half, Fiscal Year 2020: 1,329 million yen (290.0%)
First Half, Fiscal Year 2019: 340 million yen (-81.7%)
Basic earnings per
share

Diluted earnings per
share

Yen

First Half, Fiscal Year 2020
First Half, Fiscal Year 2019

Yen

63.39
46.15

―
―

(2) Consolidated financial position
Total assets

Net assets

Net assets to total assets

Millions of yen

Millions of yen%

September 30, 2020
137,870
March 31, 2020
137,746(Reference) Shareholders’ equity
September 30, 2020: 85,561 million yen
March 31, 2020: 84,935 million yen

85,561
84,935

62.1
61.7

Net assets per share
Yen

3,651.98
3,625.21

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

Fiscal Year 2019―
Fiscal Year 2020―
Fiscal Year 2020 (Forecast)(Note) Revision of dividend forecasts: Yes

End of 2Q

End of 3Q

Yen

50.00
30.00

Yen

End of 4Q

Annual
Yen

Yen

―

30.00

80.00

―

30.00

60.00

3. Forecast of results for the fiscal year 2020 (April 1, 2020 to March 31, 2021)
Net sales
Millions of yen(% figures represent year-on-year increase or decrease)
Basic
Ordinary income
Profitearnings per
share

Operating income%

Millions of yen

Full Fiscal Year
200,000 (12.0)(Note) Revision of financial results forecasts: Yes

2,200

%

Millions of yen%

Millions of yen%(29.2)

2,600(10.9)

2,200

84.3

Yen

93.90

* Notes(1) Transfer of major subsidiaries during the scope of consolidation of these six months ended September 30, 2020 (transfer of specified
subsidiaries in line with changes in the consolidated range): NoneNew:

－ (Company name:)

Excluded:－ (Company name:)(2) Application of accounting procedures specific to preparing quarterly financial statements: None
(3) Changes in accounting principles, changes in accounting estimates, and restatements
1) Changes in accordance with revisions to accounting standards and related practices of accounting principles: 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:

September 30,
2020

2. Total number of treasury shares at the

September 30,

period-end:

2020

3. Average number of shares outstanding
during the period (Cumulative total for thequarterly consolidated period)First Half, Fiscal
Year 2020

25,000,000 shares

March 31, 2020

25,000,000 shares

1,571,155 shares

March 31, 2020

1,570,850 shares

23,429,004 sharesFirst Half, Fiscal
Year 201923,429,570 sharesThis quarterly consolidated earnings report is not subject to the quarterly review by certified public accountants or auditing
corporations.
Caution with respect to forward-looking statements(Notes on forward-looking statements)
The estimates referred in this report are based on the information available as of the date of this release. Ryosan Company Limited(Ryosan) does not promise the realization of the estimates in this report. The actual results may significantly differ from the estimates due
to a variety of factors. For details on the conditions that form the assumptions used for earnings forecasts and notes on using earnings
forecasts, please refer to appendix page 3, "1. Qualitative Information Regarding this Quarterly Statement (3) Qualitative Information
Concerning Consolidated Forecast and Other Future Predictions."

○Table of contents of the appendix
1. Qualitative Information Regarding this Quarterly Statement ........................................................................................................... 2(1) Qualitative Information Concerning Consolidated Operating Results .................................................................................. 2(2) Qualitative Information Concerning Consolidated Financial Position .................................................................................. 3(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions .................................................. 3(4) Basic Policy Regarding the Appropriation of Profits / Dividends for Fiscal Year 2020 ........................................................ 4
2. Consolidated Quarterly Financial Statements and Main Notes ........................................................................................................ 5(1) Consolidated Quarterly Balance Sheet .................................................................................................................................. 5(2) Consolidated Quarterly Statement of Income and Consolidated Quarterly Statement of Comprehensive Income ............... 7
Consolidated Quarterly Statement of Income
Scope of Consolidation of this First Half Period ........................................................................................................ 7
Consolidated Quarterly Statement of Comprehensive Income
Scope of Consolidation of this First Half Period ........................................................................................................ 8(3) Consolidated Quarterly Statements of Cash Flows ............................................................................................................... 9(4) Notes Regarding Consolidated Quarterly Financial Statements............................................................................................ 10(Notes Regarding Going Concern)........................................................................................................................................ 10(Notes Regarding Substantial Changes in Shareholders’ Equity).......................................................................................... 10(Segment Information) .......................................................................................................................................................... 10-1-

1. Qualitative Information Regarding this Quarterly Statement(1) Qualitative Information Concerning Consolidated Operating Results1) Overview
During the consolidated first half of fiscal year 2020 (April 1 to September 30, 2020), corporate earnings andpersonal consumption deteriorated globally due to the COVID-19 pandemic.
The Japanese economy also struggled amid a state of emergency declared by the government in April 2020.
The electronics industry, which is Ryosan’s main field, similarly suffered enormous impacts in terms of demandand supply chains, particularly in products for the automotive industry, as a result of the COVID-19 pandemic.
In the consolidated first half under review, amid the market deterioration described above, net sales declined to97,191 million yen (down 16.5% from the same period of the previous fiscal year). Operating income fell to 1,252
million yen (down 33.7%), despite counter measures for profitability enhancement that trimmed selling, general andadministrative expenses. Ordinary income dropped to 1,675 million yen (down 10.8%), a figure eased by factors suchas foreign exchange gains caused by the revaluation of foreign-currency-denominated liabilities. Profit attributable toowners of parent, including income from sale of investment securities, increased to 1,485 million yen (up 37.4%).
2) Business Segment Informationa. Semiconductors
Ryosan sells system LSIs, discrete semiconductors and memory, and develops system LSIs on a contract basis.
During the consolidated first half under review, net sales fell to 57,256 million yen (down 17.3% from the same
period of the previous fiscal year), due to a downturn in the automotive business. Operating income shrank to 461
million yen (down 42.7%), due to factors such as changes in supplier policy.
b. Electronic Components
Ryosan sells electromechanical components, display devices and power supplies. During the consolidated firsthalf under review, a favorable trend in the consumer business was more than offset by a decline in the automotive
business. Net sales retreated to 34,075 million yen (down 10.3% from the same period of the previous fiscal year),while operating income declined to 971 million yen (down 18.8%).
c. Electronic Equipment
Ryosan sells systems equipment and facilities equipment. During the consolidated first half under review, large
projects in the automotive business declined significantly. Net sales fell to 5,858 million yen (down 36.5% fromthe same period of the previous fiscal year) and operating income shrank to 39 million yen (down 77.4%).

-2-

(2) 1) Qualitative Information Concerning Consolidated Financial Position
As of September 30, 2020, total assets increased by 124 million yen compared with the end of the previous fiscal
year, to 137,870 million yen.
Also, net assets increased by 626 million yen compared with the end of the previous fiscal year, to 85,561 million
yen, with the ratio of net assets to total assets being 62.1%.
2) Overview of Cash Flows
As of September 30, 2020, cash and cash equivalents decreased by 3,989 million yen compared with the end of
the previous fiscal year, to 20,512 million yen.
Net cash provided by (used in) operating activities
Regarding cash flow from operating activities in this consolidated first half period, funds in total decreased by
6,313 million yen. Although profit before income taxes was 2,034 million yen, inventories increased by 3,532
million yen and notes and accounts receivable—trade increased by 1,966 million yen, while notes and accounts
payable—trade declined by 2,187 million yen. For a comparison, in net cash from operating activities in the same
period of the previous fiscal year, funds had increased by 13,020 million yen.
Net cash provided by (used in) investing activities
Regarding cash flow from investing activities in this consolidated first half period, funds in total increased by
351 million yen due to such factors as proceeds from sales of investment securities. For a comparison, in net cashfrom investing activities in the same period of the previous fiscal year, funds had decreased by 126 million yen.
Net cash provided by (used in) financing activities
In cash flow from financing activities in this consolidated first half period, funds in total increased by 2,030
million yen. Short-term loans payable increased by 2,823 million yen, while cash dividends paid amounted to 703
million yen. For a comparison, in net cash from financing activities in the same period of the previous fiscal year,
funds had decreased by 6,141 million yen.
(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions
1) General Outlook on Business Results
The COVID-19 pandemic is depressing demand, particularly in the automotive sector, taking a significant tollon the business activities of the Ryosan Group. In the consolidated business results for the fiscal year ending
March 31, 2021, Ryosan forecasts net sales of 200,000 million yen (down 12.0% against the previous fiscal year),
operating income of 2,200 million yen (down 29.2%) and ordinary income of 2,600 million yen (down 10.9%).
Profit attributable to owners of parent, on the other hand, is forecast to rise to 2,200 million yen (up 84.3%), due
to the absence of incidents such as impairment losses from domestic branch restructuring and a transient
extraordinary loss from implementation of voluntary retirement in the previous fiscal year.
2) Forecast of Business Results by Segment
a. Semiconductors
In the semiconductors business, Ryosan expects net sales in the automotive business in the second half of thecurrent fiscal year to decline against the same period of the previous fiscal year, as it did in the first half of thecurrent fiscal year. A decline of 13.0% against the previous fiscal year is anticipated, to 118,500 million yen.
Operating income is forecast to fall to 500 million yen (down 57.0%), due to changes in supplier policies.
b. Electronic Components
Declines are forecast in electronic components as well, due to a slump in the automotive business. Net sales are
expected to retreat to 69,000 million yen (down 7.0% against the previous fiscal year) and operating income isanticipated to fall to 1,900 million (down 11.3%).

-3-

c. Electronic Equipment
In the electronic equipment business, large projects in the automotive business are expected to continue tostruggle. Net sales are forecast to drop to 12,500 million yen (down 26.2% against the previous fiscal year) andoperating income is forecast to decrease to 150 million (down 60.9%).
(4) Basic Policy Regarding the Appropriation of Profits / Dividends for Fiscal Year 2020
Ryosan regards the return of earnings to shareholders as one of the most important elements of management
and is making every effort to increase basic earnings per share. Ryosan’s basic policy is to achieve a consolidated
payout ratio of 50% or higher, to maintain a stable, high dividend.
At the October 29, 2020 Board Meeting, Ryosan resolved to issue an interim dividend of 30 yen per share. The
annual dividend per share is expected to be 60 yen.

-4-

2. Consolidated Quarterly Financial Statements and Main Notes(1) Consolidated Quarterly Balance Sheet(Millions of yen)
Fiscal Year Ended
March 31, 2020
(As of March 31, 2020)

First Half of the Fiscal YearEnding March 31, 2021
(As of September 30, 2020)

ASSETS
Current assets
Cash and deposits

24,501

20,512

Notes and accounts receivable –trade

53,68755,506Inventories

37,24340,653

Accounts receivable – other

6,196

5,437

Other

322

412

Allowance for doubtful accounts

(152)

(198)

121,799

122,323

Buildings and structures, net

2,726

2,757

Land

5,758

5,653

Leased assets, net

545

468

Other, net

241

224

9,271

9,103

946

894

Investment securities

3,517

3,239

Deferred tax assets

340

305

Other

2,241

2,072

Allowance for doubtful accounts

(68)

(69)

Allowance for investment loss

(301)

-

Total investments and other assets

5,729

5,548

15,947

15,547

137,746

137,870

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

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

Total non-current assets
Total assets-5-

(Millions of yen)
Fiscal Year Ended
March 31, 2020
(As of March 31, 2020)

First Half of the Fiscal YearEnding March 31, 2021
(As of September 30, 2020)

LIABILITIESCurrent liabilities
Accounts payable - trade28,47526,185

Short-term loans payable

18,15820,477229

228

Accounts payable - other

2,005

1,555

Accrued expenses

1,228

1,227

Income taxes payable

454

438

Other

145

173

50,69750,286

Lease obligations

369

286

Deferred tax liabilities

38

114

Net defined benefit liability

1,622

1,540

Asset retirement obligations

30

27

Other

52

52

2,113

2,022

52,81052,308

Capital stock

17,69017,690Capital surplus

19,114

19,114Retained earnings

53,85754,640Treasury shares(6,532)(6,533)

Total shareholders’ equity

84,13084,911

1,158

1,283

0

(1)

Foreign currency translation adjustment

(300)

(573)

Remeasurements of defined benefit plans

(52)

(59)

Total accumulated other comprehensive income

805

649

Total net assets

84,93585,561

Total liabilities and net assets

137,746

137,870

Lease obligations

Total current liabilities
Non-current liabilities

Total non-current liabilities
Total liabilities
NET ASSETS
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges-6-(2) Consolidated Quarterly Statement of Income and Consolidated Quarterly Statement of Comprehensive Income(Consolidated Quarterly Statement of Income)(Scope of Consolidation of this First Half Period)(Millions of yen)First Half of the Fiscal Year
Ended March 31, 2020

First Half of the Fiscal YearEnding March 31, 2021

(April 1, 2019 to Sept. 30, 2019)(April 1, 2020 to Sept. 30, 2020)

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

97,19189,032
8,159
6,907
1,252

30
40
168
1
28
73
342

23
36
435
27
97
620

341
12
353
1,877

116
55
24
197
1,675

1
1

254
106
360

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

1
1
2,034
549
1,485
1,485

Net sales
Cost of Sales
Gross Profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity method
Rent income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
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
Compensation for customs duty
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on valuation of investment securities
Loss on valuation of golf membership
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to owners of parent-7-

(Consolidated Quarterly Statement of Comprehensive Income)(Scope of Consolidation of this First Half Period)(Millions of yen)First Half of the Fiscal Year
Ended March 31, 2020

First Half of the Fiscal YearEnding March 31, 2021

(April 1, 2019 to Sept. 30, 2019)(April 1, 2020 to Sept. 30, 2020)

1,081

1,485

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

125
(1)
(272)
(6)
(155)
1,329

340

1,329

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-8-

(3) Consolidated Quarterly 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 income
Interest expenses
Share of (profit) loss of entities accounted for using equity
methodLoss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Decrease (increase) in accounts receivable - other
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchases of investment securities
Proceeds from sales of investment securities
Collection of investments in capital
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-9-First Half of the Fiscal Year
Ended March 31, 2020

First Half of the Fiscal YearEnding March 31, 2021

(April 1, 2019 to Sept. 30, 2019)(April 1, 2020 to Sept. 30, 2020)

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

2,034
306
51
(84)
(59)
116

(1)

55

3,175
4,901
1,318
2,065
(695)
13,16370(348)
135
13,020(254)(1,966)(3,532)(2,187)750(992)(5,761)
59
(121)
(490)
(6,313)

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

(157)
101
(51)
(15)
340
3
(108)
239
351

(4,287)(95)(0)(1,757)(6,141)(221)
6,530
14,58021,111

2,823
(88)
(0)
(703)
2,030
(58)
(3,989)24,501
20,512

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

Reporting Segment
Electronic
Electronic
Components
Equipment

Total

Adjusted
amount(Note 1)

Amounts shown on
consolidated statement ofincome (Note 2)

69,21938,001

9,223

116,445―

116,445

―

―

―

―

―

―

69,219806

38,001
1,196

9,223
173

116,445
2,175

―
(287)

116,445
1,888(Notes)1. The adjusted amount of minus 287 million yen represents corporate expenses (mainly general and administrative expenses)
which are not allocated to the reporting segment.
2. Segment income has been adjusted with operating income in consolidated quarterly statement of income.

Consolidated first half of the fiscal year ending March 31, 2021
(April 1, 2020 to September 30, 2020)(Millions of yen)
Semiconductors
Net sales
Sales to external customers
Internal sales or exchange
between segments
Total
Segment income (loss)

Reporting Segment
Electronic
Electronic
Components
Equipment

Total

Adjusted
amount(Note 1)

Amounts shown on
consolidated statement ofincome (Note 2)

57,256

34,075

5,858

97,191―

97,191

―

―

―

―

―

―

57,256461

34,075
971

5,858
39

97,191
1,472

―
(220)

97,191
1,252(Notes)1. The adjusted amount of minus 220 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.

- 10 -

II. Information Concerning Sales and Income or Loss Amount by Sales Destination
Fiscal year 2019, first half of the fiscal year ended March 31, 2020
(April 1, 2019 to September 30, 2019)(Millions of yen)

Japan

Asia

63,83047,333

5,281

9,890

91

5

73,720(44)

47,424
1,485

5,287
206

Eliminations
or corporate

Consolidated

116,445―

116,445

9,987(9,987)―

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

116,445
1,888

Other

Total

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

Fiscal year 2020, first half of the fiscal year ending March 31, 2021
(April 1, 2020 to September 30, 2020)(Millions of yen)

Eliminations
or corporate

Consolidated

97,191―

97,191

2

7,649(7,649)

―

3,681
14

104,840976(7,649)275

97,191
1,252

Japan

Asia

Other

Total

54,66538,847

3,679

7,491

155

62,15623

39,002939

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

III. Information Concerning Sales by Region
Fiscal year 2019, first half of the fiscal year ended March 31, 2020
(April 1, 2019 to September 30, 2019)(Millions of yen)Japan
Net sales
Ratio to consolidated net sales (%)

China

60,51952.0

28,45624.4

Asia
22,086
19.0

Other
5,382
4.6

Consolidated
116,445100.0(Note) Net sales are on the basis of customer location and classified by country or region.

Fiscal year 2020, first half of the fiscal year ending March 31, 2021
(April 1, 2020 to September 30, 2020)(Millions of yen)Japan
Net sales
Ratio to consolidated net sales (%)

China

49,91851.4

27,58728.4

Asia
15,461
15.9(Note) Net sales are on the basis of customer location and classified by country or region.

- 11 -

Other
4,223
4.3

Consolidated
97,191100.0