July 28, 2017

First Quarter Earnings Report for Fiscal 2017, Ending March 31, 2018
[Japanese Standards] (Consolidated)
Company name:Securities code:
Representative:

Ryosan Company, Limited
Stock listing: First Section, Tokyo Stock Exchange
8140
URL http://www.ryosan.co.jp
Hiroyuki Kurihara, 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:
August 14, 2017
Scheduled payment date of dividend:―Supplementary materials for the quarterly financial results:
None
Investor conference for the quarterly financial results:
None(Millions of yen rounded down)

1. Consolidated results for the first quarter of fiscal 2017 (April 1, 2017 to June 30, 2017)(1) Consolidated operating results (Cumulative)(% change compared with same period of previous fiscal year (YoY))
Profit attributable toOperating income
Ordinary income
owners of parent

Net salesFirst Quarter, Fiscal 2017

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

58,915

22.0

1,507

137.1

1,596

70.4

1,088

54.7

635

(57.3)

936(36.1)

703(34.3)First Quarter, Fiscal 2016

48,301(15.3)(Note) Comprehensive income
First Quarter, Fiscal 2017: 1,296 million yen (－%)
First Quarter, Fiscal 2016: (1,608) million yen (－%)
Basic earnings per
share

Diluted earnings per
share

Yen

First Quarter, Fiscal 2017
First Quarter, Fiscal 2016

Yen

39.03
23.88

――

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

June 30, 2017
March 31, 2017
(Reference) Shareholders’ equity
June 30, 2017: 103,778 million yen
March 31, 2017: 109,519 million yen

Net assets to total assets

Millions of yen%

103,778
109,51964.4
67.8

161,187
161,620

Net assets per share
Yen

3,861.93
3,897.82

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

Fiscal 2016―
Fiscal 2017―
Fiscal 2017 (Forecast)(Note) Revision of dividend forecasts: None

End of 2Q

End of 3Q

Yen

Yen

Annual

Total
Yen

Yen

70.00

―

70.00

140.00

75.00

―

75.00

150.00Fiscal 2016

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

Fiscal 2016

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

Fiscal 2017Interim 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 2017 (April 1, 2017 to March 31, 2018)
Net sales
Millions of yen(% figures represent year-on-year increase or decrease)
Profit attributable to
Basic earnings
Ordinary income
owners of parent
per share

Operating income%

Millions of yen

Interim period
112,000
9.9
Full Fiscal Year
230,000
5.5(Note) Revision of financial results forecasts: None2,500
5,600%

Millions of yen%

Millions of yen%

33.2
20.2

2,500
5,600

6.6
15.9

1,800
4,000

5.6
18.8

Yen

64.06
142.36* Notes(1) Transfer of major subsidiaries during the scope of consolidation of these three months ended June 30, 2016 (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 theJune 30, 2017

28,500,000 shares

March 31, 2017

31,500,000 shares

June 30, 2017

1,627,760 shares

March 31, 2017

3,402,428 sharesperiod-end:
2. Total number of treasury shares at theperiod-end:
3. Average number of shares outstanding
during the period (Cumulative total for thequarterly consolidated period)First Quarter,
Fiscal 201727,892,728 sharesFirst Quarter,
Fiscal 2016

29,466,495 sharesThis quarterly consolidated earnings report is not subject to the quarterly review.
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 could significantly differ from the estimates
due to a variety of factors. For details on the conditions that form the assumptions used for earnings forecasts and notes on using earnings
forecasts, please refer to appendix page 2, “1. Qualitative Information Regarding this Quarterly Statement (3) Qualitative Information
Concerning Consolidated Forecast and Other Future Predictions.”

○Table of contents of the appendix
1. Qualitative Information Regarding this Quarterly Statement ........................................................................................................... 2(1) Qualitative Information Concerning Consolidated Operating Results .................................................................................. 2(2) Qualitative Information Concerning Consolidated Financial Position .................................................................................. 2(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions .................................................. 2
2. Consolidated Quarterly Financial Statements and Main Notes ........................................................................................................ 3(1) Consolidated Quarterly Balance Sheet .................................................................................................................................. 3(2) Consolidated Quarterly Statement of Income and Consolidated Quarterly Statement of Comprehensive Income ............... 5Consolidated Quarterly Statement of Income
Scope of Consolidation of this First Quarter .............................................................................................................. 5Consolidated Quarterly Statement of Comprehensive Income
Scope of Consolidation of this First Quarter .............................................................................................................. 6(3) Notes Regarding Consolidated Quarterly Financial Statements............................................................................................ 7(Notes Regarding Going Concern)........................................................................................................................................ 7(Notes Regarding Substantial Changes in Shareholders’ Equity).......................................................................................... 7(Segment Information) .......................................................................................................................................................... 7-1-1. Qualitative Information Regarding this Quarterly Statement(1) Qualitative Information Concerning Consolidated Operating Results1) Overview
During this consolidated first quarter (April 1, 2017 to June 30, 2017), the global economy as a whole continued
to show a gradual recovery. The U.S. maintained growth backed by strong consumer spending in spite of stagnant
trend in automobile sales, while gradual recovery continued in Europe and emerging countries including China
remained steady. Also in Japan, signs of improvement were seen in corporate earnings in line with recovery trends
in consumer spending.
In the electronics industry, although shrinking trend of PCs and tablets market continued, products forsmartphones, automobiles and FA equipment remained robust.
FY2017 is the final 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 reestablishing a growth path andimproving capital efficiency.
As the result, Ryosan reported net sales of 58,915 million yen (up 22.0% from the same period last fiscal year),
operating income of 1,507 million yen (up 137.1%), ordinary income of 1,596 million yen (up 70.4%), and profit
attributable to owners of parent of 1,088 million yen (up 54.7%) for this three-month consolidation period.
2) Business Segment Informationa. Semiconductors
Ryosan sells memories, system LSIs and discrete semiconductors, and develops system LSIs on a contract
basis. In this three-month consolidation period, our business for in-vehicle electrical equipment and FA
equipment remained brisk, and net sales were 34,970 million yen (up 20.7% from the same period last fiscal year),and operating income was 912 million yen (up 102.5%).
b. Electronic Components
Ryosan sells display devices, power supplies and electromechanical components. In this three-monthconsolidation period, there was an increase in sales of electromechanical components for consumers, in addition
to business for in-vehicle electrical equipment and FA equipment which remained brisk, and net sales were
18,436 million yen (up 19.6% from the same period last fiscal year), and operating income was 620 million yen(up 101.2%).
c. Electronic Equipment
Ryosan sells systems equipment and facilities equipment. In this three-month consolidation period, mainly due
to expansion in the in-vehicle electrical equipment business, net sales were 5,509 million yen (up 41.0% from thesame period last fiscal year), and operating income was 118 million yen (up 89.2%).

(2) Qualitative Information Concerning Consolidated Financial Position
As of the end of this first quarter, total assets decreased by 432 million yen compared with the end of the previous
fiscal year, to 161,187 million yen.
Also, net assets decreased by 5,740 million yen compared with the end of the previous fiscal year, to 103,778
million yen, with the ratio of net assets to total assets being 64.4%.
(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions
There is no change in forecasts for the first half and full fiscal year ending March 31, 2018 (announced on May12, 2017).

-2-2. Consolidated Quarterly Financial Statements and Main Notes(1) Consolidated Quarterly Balance Sheet(Millions of yen)
Fiscal Year Ended
March 31, 2017
(As of March 31, 2017)

First Quarter of the Fiscal
Year Ending March 31, 2018
(As of June 30, 2017)

ASSETS
Current assets
Cash and deposits

38,84527,447

Notes and accounts receivable –trade

68,49970,953

Securities

300

2,000

Inventories

27,76633,258

Accounts receivable – other

6,974

8,784

Deferred tax assets

348

318

Other

205

252

Allowance for doubtful accounts

(64)

(92)

142,876

142,921

Buildings and structures, net

3,398

3,362

Land

6,428

6,428

Leased assets, net

539

570

Other, net

158

155

10,525

10,517

1,110

1,054

Investment securities

4,983

4,468

Deferred tax assets

163

163

Other

2,095

2,263

Allowance for doubtful accounts

(136)

(201)

Total investments and other assets7,107

6,694

18,743

18,266

161,620

161,187

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-3-

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

First Quarter of the Fiscal
Year Ending March 31, 2018
(As of June 30, 2017)

LIABILITIESCurrent liabilities
Accounts payable - trade34,45835,437

Short-term loans payable

11,41915,408148

152

Accounts payable - other1,499

1,501Accrued expenses

1,047

457

Income taxes payable

390

637

Provision for bonuses

-309

131

376

49,09554,281

Lease obligations

450

480

Deferred tax liabilities

505

623

Net defined benefit liability

1,890

1,863

Asset retirement obligations

3434

Other

125

125

3,005

3,127

52,101

57,408

Capital stock

17,69017,690Capital surplus

19,114

19,114Retained earnings

81,21971,205

Treasury shares(10,498)(6,433)

Total shareholders’ equity

107,525

101,576

1,540

1,675

Deferred gains or losses on hedges(0)0Foreign currency translation adjustment

416

496

Remeasurements of defined benefit plans

3630

1,993

2,201

Total net assets

109,519

103,778

Total liabilities and net assets

161,620

161,187

Lease obligations

Other
Total current liabilities
Non-current liabilities

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

Accumulated other comprehensive incomeValuation difference on available-for-sale securities

Total accumulated other comprehensive income-4-(2) Consolidated Quarterly Statement of Income and Consolidated Quarterly Statement of Comprehensive Income(Consolidated Quarterly Statement of Income)(Scope of Consolidation of this First Quarter)(Millions of yen)First Quarter of the Fiscal Year
Ended March 31, 2017

First Quarter of the Fiscal YearEnding March 31, 2018

(April 1, 2016 to June 30, 2016)(April 1, 2017 to June 30, 2017)

48,301
44,215
4,085
3,450
635

58,91553,727
5,188
3,681
1,507

1438
250
824
335

1235
92
716
164

31
02
34
936

62
9
3
75
1,596

936
233
703
703

3
3
1,599
511
1,088
1,088

Net sales
Cost of Sales
Gross Profit
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
Commission for purchase of treasury shares
Miscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Profit before income taxes
Income taxes
ProfitProfit attributable to owners of parent-5-(Consolidated Quarterly Statement of Comprehensive Income)(Scope of Consolidation of this First Quarter)(Millions of yen)First Quarter of the Fiscal Year
Ended March 31, 2017

First Quarter of the Fiscal YearEnding March 31, 2018

(April 1, 2016 to June 30, 2016)(April 1, 2017 to June 30, 2017)

703

1,088(411)(4)(1,892)(3)(2,312)(1,608)

134
079
(6)
208
1,296

(1,608)

1,296

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of parent-6-(3) Notes Regarding Consolidated Quarterly Financial Statements(Notes Regarding Going Concern)
None(Notes Regarding Substantial Changes in Shareholders’ Equity)
None(Applying Accounting Procedures Specific to Preparing Quarterly Financial Statements)
None(Segment Information)
I. Information Concerning Sales and Income or Loss Amount by Reporting Segment
For the consolidated first quarter of the fiscal year ended March 31, 2017
(April 1, 2016 to June 30, 2016)(Millions of yen)
Semiconductors
Net sales
Sales to external customersInternal 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)

28,97815,415

3,907

48,301―

48,301

―

――

―

―

―

28,978450

15,415
308

3,907
62

48,301
821

―
(185)

48,301635(Notes)1. The adjusted segment loss of 185 million yen represents corporate expenses (mainly general and administrativeexpenses).
2. Segment income has been adjusted with operating income in consolidated quarterly statement of income.

For the consolidated first quarter of the fiscal year ending March 31, 2018
(April 1, 2017 to June 30, 2017)(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)

34,97018,436

5,509

58,915―58,915

―

―

―

―

―

―

34,970912

18,436
620

5,509
118

58,915
1,651

―
(143)

58,915
1,507(Notes)
1. The adjusted segment loss of 143 million yen represents corporate expenses (mainly general and administrativeexpenses)..
2. Segment income has been adjusted with operating income in consolidated quarterly statement of income.

-7-II. Information Concerning Sales and Income or Loss Amount by Regional Segment
Fiscal 2016, first quarter of the fiscal year ended March 31, 2017
(April 1, 2016 to June 30, 2016)(Millions of yen)

Japan

Asia

Other

28,02818,366

1,906

2,692

105

2

30,721
91

18,472
455

1,908
75

Eliminationsor corporate

Consolidated

48,301―48,3012,800(2,800)―

51,102623(2,800)1248,301635

Total

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

Fiscal 2017, first quarter of the fiscal year ending March 31, 2018
(April 1, 2017 to June 30, 2017)(Millions of yen)

Eliminations
or corporate

Consolidated

58,915―58,91524,059(4,059)―2,00445

62,974
1,411(4,059)96

58,915
1,507

Japan

Asia

OtherTotal

36,16820,745

2,001

4,025

31

40,194607

20,776758

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:
Asia: Hong Kong, Thailand, China, South Korea, etc.
Other: United States, etc.

III. Information Concerning Sales by Region
Fiscal 2016, first quarter of the fiscal year ended March 31, 2017
(April 1, 2016 to June 30, 2016)(Millions of yen)JapanNet sales
Ratio to consolidated net sales (%)

China

28,243
58.5

8,805
18.2

Asia
9,334
19.3

Other
1,918
4.0

Consolidated
48,301100.0(Note) Net sales are on the basis of customer location and classified by country or region.

Fiscal 2017, first quarter of the fiscal year ending March 31, 2018
(April 1, 2017 to June 30, 2017)(Millions of yen)JapanNet sales
Ratio to consolidated net sales (%)

34,812
59.1

China
11,83820.1

Asia
10,23917.4(Note) Net sales are on the basis of customer location and classified by country or region.

-8-

Other
2,025
3.4

Consolidated
58,915100.0