July 30, 2013

First Quarter Consolidated Earnings Report for Fiscal 2013, Ending March 31, 2014
[Japanese Standards] (Consolidated)
Company name:Securities code:
Representative:
Inquiries:

Ryosan Company, Limited
Stock listing: First Section, Tokyo Stock Exchange
8140(URL http://www.ryosan.co.jp)
Naoto Mimatsu, Representative Director and President
Hidekazu Sano
Director and General Manager
Financing and Accounting Headquarters
TEL: +81-3-3862-2591
Scheduled filing date of quarterly earnings reportAugust 13, 2013
Scheduled payment date of dividend:－Supplementary materials for the quarterly financial results:
NoInvestor conference for the quarterly financial results
No(Millions of yen rounded down)

1. Consolidated results for the first quarter of fiscal 2013 (April 1, 2013 to June 30, 2013)(1) Consolidated operating results (Cumulative)(% figures represent year-on-year increase or decrease)
Net sales

Operating income

Ordinary income

Millions of yen%

Millions of yen%First Quarter, Fiscal 2013

50,700(2.3)

878First Quarter, Fiscal 2012

51,911

7.5982

Net income

Millions of yen%

Millions of yen%

(10.6)

735(42.3)

445(43.7)

81.8

1,276

49.6

791

47.7(Note) Comprehensive income
First Quarter, Fiscal 2013: 1,217 million yen (821.1 %) First Quarter, Fiscal 2012:132 million yen (5.3%)
Net income
Net income perper share
share after dilution
First Quarter, Fiscal 2013
First Quarter, Fiscal 2012

YenYen

13.86
23.64

－－

(2) Consolidated financial position
Total assets

Net assets tototal assets

Net assets

Millions of yen

Millions of yen

Net assets
per share%

June 30, 2013
159,064
115,705
March 31, 2013
160,220
116,722(Reference) Shareholders equity: June 30, 2013: 115,705 million yen,March 31, 2013:Yen

72.772.9
116,722 million yen

3,677.38
3,595.42

2. Dividends
Dividends per share (Yen)(Record date)

End of 1Q

Fiscal 2012
Fiscal 2013
Fiscal 2013 (Forecast)(Note) Revision of dividend forecasts: No

End of 2Q－－

End of 3Q

End of 4Q

Annual

30.00

－

30.00

60.00

30.00

－

30.00

60.00

3. Forecast of results for the fiscal year ending March 31, 2014 (April 1, 2013 to March 31, 2014)(% figures for the full fiscal year represent year-on-year increase or decrease,% figures for the interim period are the increase / (decrease) for the corresponding period of the previous fiscal year)
Net income perNet sales
Operating income
Ordinary income
Net income
shareMillions of yen%

Millions of yen

Interim period
105,000(1.1) 2,000
Full Fiscal Year
215,000
4.1
4,600(Note) Revision of financial results forecasts: No%

Millions of yen%

Millions of yen%

(5.6)
25.2

2,100
4,800(17.3)
16.7

1,300
3,000(16.3)
6.6

Yen

40.04
92.41

※ Notes(1) Transfer of major subsidiaries during the scope of consolidation of this quarter (transfer of specified subsidiaries in line withchanges in the consolidated range): No(2) Applying accounting procedures specific to preparing quarterly financial statements: No(3) Changes in accounting principles, changes in accounting estimates and restatements
1. Changes in accordance with revisions to accounting standards and related practices of accounting principles: No
2. Changes in items of accounting principles other than 1. above: No
3. Changes in accounting estimate: No
4. Restatement of revisions: No(4) Number of shares issued and outstanding (Common stock)
1. Total number of shares issued and outstanding (including treasury stock) as of the period-end:
June 30, 2013: 34,500,000 shares

March 31, 2013: 34,500,000 shares

2. Total number of treasury stock as of the period-end:
June 30, 2013: 3,035,858 shares

March 31, 2013: 2,035,794 shares

3. Average number of shares outstanding during the period (Cumulative total for the quarterly consolidated period)First quarter, fiscal 2013: 32,145,579 sharesFirst quarter, fiscal 2012: 33,464,525 shares

Indication regarding the implementation status of the quarterly review procedure
This quarterly consolidated earnings report is not subject to the quarterly review procedures pursuant to the Financial Instruments andExchange Act. As of the disclosure of this earnings report, the procedures for reviewing quarterly financial statements pursuant to theFinancial Instruments and Exchange Act are in progress.
Caution with respect to forward-looking statements:
The estimates referred in this report were made based on the information available as of the date of this release. The Company does notpromise the realization of the estimates in this report. The Actual results could significantly differ from the estimates due to a variety offactors. For details on the conditions that form the assumptions used for earnings forecasts and notes on using earnings forecasts, pleaserefer to appendix page 2, “1. Qualitative Information Regarding this Quarterly Statement (3) Qualitative Information Concerning
Consolidated Forecast and Other Future Predictions.”

○Table of contents of the appendix
1. Qualitative Information Regarding this Quarterly Statement ........................................................................................................... 2(1) Qualitative Information Concerning Consolidated Operating Results .................................................................................. 2(2) Qualitative Information Concerning Consolidated Financial Position .................................................................................. 2(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions .................................................. 2
2. Items Regarding Summary Information (Notes) .............................................................................................................................. 3(1) Transfer of Major Subsidiaries during the Scope of Consolidation of this Quarter ............................................................. 3(2) Applying Accounting Procedures Specific to Preparing Quarterly Financial Statements...................................................... 3(3) Changes in Accounting Principles, Changes in Accounting Estimates and Restatements ..................................................... 33. Consolidated Quarterly Financial Statements .................................................................................................................................. 4(1) Consolidated Quarterly Balance Sheets ................................................................................................................................ 4(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Comprehensive Statements of Income .......... 6Consolidated Quarterly Statements of Income
Scope of Consolidation of this First Quarter ................................................................................................................. 6Consolidated Quarterly Comprehensive Statements of Income
Scope of Consolidation of this First Quarter ................................................................................................................. 7(3) Notes Regarding Consolidated Quarterly Financial Statements ............................................................................................ 8(Notes Regarding Going Concern) ........................................................................................................................................ 8(Notes Regarding Substantial Changes in Shareholders’ Equity) ......................................................................................... 8(Segment Information) .......................................................................................................................................................... 84. Supplementary Information ............................................................................................................................................................. 9-1-1. Qualitative Information Regarding this Quarterly Statement(1) Qualitative Information Concerning Consolidated Operating Results1) Overview
In the global economy in the first quarter (April 1, 2013 – June 30, 2013), there was stagnation of the European
economy and a slowdown in the growth rate of emerging countries including China. However, the United States
economy was healthy. In Japan, there are signs of economic recovery due to expectation for economic measures ofthe government.
Within this economic environment, the electronics industry shows signs of a gradually recovery, including healthy
growth in smartphones and car electronics.
Under such circumstances, Ryosan Group has worked on “cultivating businesses to serve as 2nd and 3rd pillars,”“enhancing actions as a technology training company,” “enhancing actions in each business segment” and “furtherreform of corporate structure” while setting “the pursuit of sustainable growth and sound management” as our basic
stance of management for fiscal year 2013.
As a result of the above and due to stagnation of the Electronics Components and ElectronicEquipment business segments, the Ryosan Group reported net sales of 50,700 million yen (down2.3% from the same period the previous year), operating income of 878 million yen (down 10.6%),
ordinary income of 735 million yen (down 42.3%), and net income of 445 million yen (down 43.7%) for
results of the first quarter under review.
2) Business Segment Informationa. Semiconductors
We sell memories, system LSIs and discrete semiconductors, and develop system LSIs. In this consolidated firstquarter, sales of system LSIs for in-vehicle electrical components and memories for smartphones, etc. increased,with net sales of 34,046 million yen (up 5.5% from the same period previous year) and operating income of 597
million yen (up 6.1%).
b. Electronic Components
We sell display devices, power supplies and electromechanical components. In this consolidated first quarter,
sales of display devices for digital cameras, etc. decreased, with net sales of 11,742 million yen (down 12.5%
from the same period previous year) and operating income of 241 million yen (down 27.4%).
c. Electronic Equipment
We sell systems equipment and facilities equipment. In this consolidated first quarter, sales of system equipment
for in-vehicle electrical components, etc. decreased, with net sales of 3,634 million yen (down 25.3% from thesame period previous year), and operating income of 84 million yen (down 44.1%).
d. Ryosan Products
We produce and sell heat sinks (devices that dissipate the heat generated by semiconductors). In this consolidated
first quarter, sales of heat sinks for FA equipment, etc. decreased, with net sales of 1,276 million yen (down 6.8%
from the same period previous year) and operating income of 12 million yen (down 75.8%).
(2) Qualitative Information Concerning Consolidated Financial Position
At the end of this first quarter, total assets had decreased by 1,156 million yen, as compared with the level at the endof the previous fiscal year, and came to 159,064 million yen.
Also, net assets decreased by 1,016 million yen, as compared with the level at the end of the previous fiscal year,
and came to 115,705 million yen, with the ratio of net assets to total assets being 72.7%.

(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions
There is no change in forecasts for the first half and full-year fiscal 2013, ending March 31, 2014. (Those forecasts
were announced on May 9, 2013.).
-2-2. Items Regarding Summary Information (Notes)(1) Transfer of major subsidiaries during the scope of consolidation of this quarter
None(2) Applying accounting procedures specific to preparing quarterly financial statements
None(3) Changes in accounting principles, changes in accounting estimates and restatements
None-3-3. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Millions of yen)
Fiscal Year Ended
March 31, 2013
(As of March 31, 2013)

First Quarter of the Fiscal
Year Ending March 31, 2014
(As of June 30, 2013)ASSETS
Current assets
Cash and deposits

50,464

38,270Trade notes and accounts receivable

68,101

65,688-9,999

Inventories

19,08822,687

Accrued income

1,390

1,255

Deferred tax assets

514

407

Other current assets

243

328

Allowance for doubtful accounts(106)(162)139,696

138,476

Buildings and structures (net)

4,290

4,250

Land

8,121

8,121

Lease assets (net)

333

393

Other fixed assets (net)

526

603

13,272

13,369

1,029

1,089

Investment securities

3,286

3,548

Deferred tax assets

947

870

Other

3,132

2,805

Allowance for doubtful accounts(1,045)(1,094)

Allowance for loss on investments

(98)

-

Total investments and other assets

6,222

6,129

20,524

20,588160,220

159,064

Marketable securities

Total current assets
Fixed assets
Property, plant and equipment

Total property, plant and equipmentIntangible fixed assets
Investments and other assets

Total fixed assets
Total assets-4-(Millions of yen)
Fiscal Year Ended
March 31, 2013
(As of March 31, 2013)

First Quarter of the Fiscal
Year Ending March 31, 2014
(As of June 30, 2013)

LIABILITIESCurrent liabilities
Trade accounts payable

25,261

25,587

Short-term bank loans

12,85012,914

Lease obligations

138

159

Other payable

841

786

1,069

563

Accrued income taxes

689

236

Reserve for bonuses-333

Other current liabilities

178

272

Total current liabilities

41,02840,854242

2922,149

2,133

Other long-term liabilities

7677

Total long-term liabilities

2,469

2,504

43,49843,358

Common stock

17,69017,690Additional paid-in capital

19,114

19,114Retained earnings

84,59084,601

Treasury stock(3,789)(5,588)

Total shareholders’ equity

117,606

115,817

484

687

0(0)

(1,368)

(798)

(883)

(111)

Total net assets

116,722

115,705

Total liabilities and net assets

160,220

159,064

Accrued expenses

Long-term liabilities
Lease obligations
Employees’ retirement benefits

Total liabilities
NET ASSETS
Shareholder’s equity

Other accumulated comprehensive incomes
Net unrealized gain on other marketable securities
Gain (loss) on deferred hedges
Foreign currency translation adjustments
Total other accumulated comprehensive incomes-5-(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Comprehensive Statements ofIncome(Consolidated Quarterly Statements of Income)(Scope of Consolidation of this First Quarter)(Millions of yen)First Quarter of the Fiscal Year
Ended March 31, 2013

First Quarter of the Fiscal YearEnding March 31, 2014

(Apr. 1, 2012 to Jun. 30,2012)(Apr. 1, 2013 to Jun. 30, 2013)

Net sales
Cost of Sales
Gross Profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Gain on foreign exchange
Commission fee
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expense
Foreign currency transaction loss
Miscellaneous expenses
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of noncurrent assets
Gain on reversal of allowance for doubtful accounts
Total extraordinary gains
Extraordinary losses
Loss on valuation of investment securities
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before Minority interest in income
Net income-6-51,91147,644
4,266
3,283
982

50,70046,298
4,402
3,523
878

22
83
37
132
65
342

8
28－
46
44
127

45
2
48
1,276

38
227
4
269
735

33
5
39

2－
227
27
1,288
497
791
791

－
－
738
292
445
445

(Consolidated Quarterly Comprehensive Statements of Income)(Scope of Consolidation of this First Quarter)(Millions of yen)First Quarter of the Fiscal Year
Ended March 31, 2013

First Quarter of the Fiscal YearEnding March 31, 2014

(Apr. 1, 2012 to Jun. 30, 2012)(Apr. 1, 2013 to Jun. 30, 2013)

Income before Minority interest in income
Other comprehensive income
Net unrealized gain on other marketable securities
Gain (loss) on deferred hedges
Foreign currency translation adjustments
Total other comprehensive income
Comprehensive Incomes(Details)
Comprehensive incomes relating to shareholders ofparental company

-7-

791

445

(127)
(2)
(528)

202
(0)
570

(658)
132

772
1,217

132

1,217

(3) Notes Regarding Consolidated Quarterly Financial Statements(Notes Regarding Going Concern)
Not applicable.
(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable.
(Segment Information)
I. For the consolidated first quarter of the fiscal year ended March 31, 2013
(April 1, 2012 to June 30, 2012)
1. Overview of our Reporting Segments
Information Concerning Sales and Income or Loss Amount by Reporting Segment(Millions of yen)

Reportable Segment
Adjusted
amount(Note) 1

Consolidated
quarterly
incomestatement
amount (Note) 2

Semiconductors

Electronic
components

Electronicequipment

Ryosanproducts

Total

32,26013,417

4,864

1,369

51,911―51,911―――――――

32,260563

13,417
332

4,864
150

1,369
53

51,911
1,099

―
(116)

51,911
982

Sales and operating income
Sales:
Sales to externalCustomers
Internal sales between
segments, or exchange
Total
Segment income(Notes)1. The adjustment of -116 million yen to segment income represents corporate expenses that are not allocated to eachreportable segment.
2. Segment income has been adjusted with operating income in consolidated quarterly statements of income.
II. For the consolidated first quarter of the fiscal year ending March 31, 2014
(April 1, 2013 to June 30, 2013)
Information Concerning Sales and Income or Loss Amount by Reporting Segment(Millions of yen)

Reportable Segment
Adjusted
amount(Note) 1

Consolidated
quarterlyincomestatement
amount (Note) 2

Semiconductors

Electronic
components

Electronicequipment

Ryosanproducts

Total

34,046

11,742

3,634

1,276

50,700―50,700

―

――――

―

―

34,046597

11,742
241

3,634
84

1,276
12

50,700936―(58)

50,700878

Sales and operating income
Sales:
Sales to external
Customers
Internal sales between
segments, or exchange
Total
Segment income(Notes)
1. The adjustment of -58 million yen to segment income represents corporate expenses that are not allocated to eachreportable segment.
2. Segment income has been adjusted with operating income in consolidated quarterly statements of income.
III. Beginning from the current first quarter consolidated accounting period, we revised the allocation method forcompany-wide expenses, etc. A portion of company-wide expenses, etc. for which allocation was previously not possible
are now allocated to each reporting segment according to applicable allocation standards.
Segment information for the previous consolidated cumulative first quarter shows numbers which were calculated basedon the allocation method for company-wide expenses, etc. after the change described above.

-8-4. Supplementary Information(1) Geographical Segment Information
Fiscal 2012, first quarter of the fiscal year ended March 31, 2013
(April 1, 2012 to June 30, 2012)(Millions of yen)Japan
I Sales and operating income
Sales:(1) Sales to external
Customers(2)Internal sales between
segments, or exchange
Total
Segment income

Asia

Total

Eliminations
or corporate

Consolidated

35,303

16,60851,911―51,911

1,3841311,515(1,515)―36,687497

16,740504

53,427
1,002(1,515)(19)

51,911
982

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

Fiscal 2013, first quarter of the fiscal year ending March 31, 2014
(April 1, 2013 to June 30, 2013)(Millions of yen)

I Sales and operating income
Sales:(1) Sales to external
Customers(2)Internal sales between
segments, or exchange
Total
Segment income

Eliminations
or corporate

Consolidated50,700―

50,70002,199(2,199)

―

1,602
53

52,900705(2,199)172

50,700
878

Japan

Asia

Other

Total

30,05519,043

1,601

2,090

108

32,14554

19,152597

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia: Hong Kong, China, Thailand, Korea and others
Other: United States and others-9-(2) Overseas Sales
Fiscal 2012, first quarter of the fiscal year ended March 31, 2013
(April 1, 2012 to June 30, 2012)(Millions of yen)
Total
18,032
51,911
34.7

Asia18,032―34.7

Overseas sales
Consolidated net sales
Ratio of overseas sales to consolidated net sales (%)

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia: China, Hong Kong, Thailand, Korea and others
3. Overseas sales represent the total of export sales of the parent company and sales of its consolidated subsidiaries outside Japan(excluding intra-group sales).

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

Asia
21,323―42.1

Other1,855―
3.7(Millions of yen)Total
23,17850,70045.7

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia: China, Korea, Hong Kong, Thailand and others
Other: United States and others
3. Overseas sales represent the total of export sales of the parent company and sales of its consolidated subsidiaries outside Japan(excluding intra-group sales).

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