January 30, 2018

Third Quarter Earnings Report for Fiscal Year 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:
February 14, 2018
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 three quarters of fiscal year 2017 (April 1, 2017 to December 31, 2017)(1) Consolidated operating results (Cumulative)(% change compared with the same period of previous fiscal year (YoY))
Profit attributable toOperating income
Ordinary income
owners of parent

Net sales
Millions of yen%

Millions of yen

First Three Quarters, Fiscal Year
189,911
19.2
4,916
2017
First Three Quarters, Fiscal Year
159,299(9.5)
3,604
2016(Note) Comprehensive income
First Three Quarters, Fiscal Year 2017: 4,717 million yen (68.8%)First Three Quarters, Fiscal Year 2016: 2,794 million yen (24.8%)
Basic earnings per share%

Millions of yen%

Millions of yen%

36.4

4,875

40.8

3,408

43.8

(19.0)

3,464(19.0)

2,370(22.5)

Diluted earnings per share

YenFirst Three Quarters, Fiscal Year 2017
First Three Quarters, Fiscal Year 2016

Yen

130.22
81.58――(2) Consolidated financial position
Total assets

Net assets

Net assets to total assets

Millions of yen

Millions of yen%

December 31, 2017
167,361
March 31, 2017
161,620(Reference) Shareholders’ equity
December 31, 2017: 94,560 million yen
March 31, 2017: 109,519 million yen

94,560109,51956.5
67.8

Net assets per share
Yen

3,861.94
3,897.82

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

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

End of 2Q

End of 3Q

Yen

70.00
75.00

AnnualYen――

TotalYen

Yen

70.00

140.0075.00

150.00Fiscal Year 2016

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

Fiscal Year 2016

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

Fiscal Year 2017

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

Fiscal Year 2017

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

3. Forecast of results for the fiscal year 2017 (April 1, 2017 to March 31, 2018)
Net sales
Millions of yen(% figures represent year-on-year increase or decrease)
Basic
Profit attributable toearnings per
Ordinary income
owners of parentshare

Operating income
Millions of yen%

Millions of yen%

Millions of yen%

Full Fiscal Year
240,000
10.1
5,800(Note) Revision of financial results forecasts: None

24.5

5,700

17.9

4,100

21.7%

Yen

158.55* Notes(1) Transfer of major subsidiaries during the scope of consolidation of these nine months ended December 31, 2017 (transfer ofspecified 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 theDecember 31, 2017

28,500,000 shares

March 31, 2017

31,500,000 shares

December 31, 2017

4,014,806 shares

March 31, 2017

3,402,428 sharesperiod-end:
2. Total number of treasury shares at theperiod-end:
3. Average number of shares outstanding

First Threeduring the period (Cumulative total for theQuarters, Fiscal

quarterly consolidated period)

Year 2017

First Three
26,174,456 shares

Quarters, Fiscal

29,058,375 sharesYear 2016

This 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.

○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 these First Three Quarters ................................................................................................ 5Consolidated Quarterly Statement of Comprehensive Income
Scope of Consolidation of these First Three Quarters ................................................................................................ 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 nine-month consolidated period (April 1, 2017 to December 31, 2017), the global economy on thewhole continued to grow at a sluggish pace.
The U.S. maintained autonomous growth primarily driven by its own domestic demand, strong economic
expansion continued in Europe, and emerging countries including China also remained steady. Also in Japan, there
were a number of favorable signs including the recovery trends in consumer spending due to improvements in theemployment and income environment and the increase of corporate earnings, etc., all showing that the economy
continued on a moderate growth track.
In the electronics industry, information and communication equipment, in-vehicle electrical equipment, and FA
equipment remained solid.
Fiscal Year 2017 is the final fiscal year for the 9th Medium-Term Business Plan (Fiscal Year 2014- Fiscal Year2017) 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 and improving capital efficiency.
As the result, Ryosan reported net sales of 189,911 million yen (up 19.2% from the same period last fiscal year),
operating income of 4,916 million yen (up 36.4%), ordinary income of 4,875 million yen (up 40.8%), and profit
attributable to owners of parent of 3,408 million yen (up 43.8%) for this nine-month consolidation period.
2) Business Segment Informationa. Semiconductors
Ryosan sells memory, system LSIs and discrete semiconductors, and develops system LSIs on a contract basis.
In this nine-month consolidation period, Ryosan’s businesses for in-vehicle electrical equipment and FA
equipment remained brisk and, with an increase in Ryosan’s business for information and communication, net
sales were 109,928 million yen (up 19.5% from the same period last fiscal year), and operating income was 2,578
million yen (up 32.8%).
b. Electronic Components
Ryosan sells display devices, power supplies and electromechanical components. In this nine-monthconsolidation period, Ryosan’s businesses for consumers, in-vehicle electrical equipment, and FA equipment
remained brisk, net sales were 61,487 million yen (up 21.5% from the same period last fiscal year), and operating
income was 2,171 million yen (up 48.0%).
c. Electronic Equipment
Ryosan sells systems equipment and facilities equipment. In this nine-month consolidation period, thanks tothe acquisition of large orders by the in-vehicle electrical equipment business, net sales were 18,495 million yen(up 10.7% from the same period last fiscal year), and operating income was 387 million yen (down 21.2%) due
to changes in the product mix.
(2) Qualitative Information Concerning Consolidated Financial Position
As of the end of this third quarter, total assets increased by 5,740 million yen compared with the end of theprevious fiscal year, to 167,361 million yen.
Also, net assets decreased by 14,958 million yen compared with the end of the previous fiscal year, to 94,560
million yen, with the ratio of net assets to total assets being 56.5%.
(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions
There is no change in forecasts for the full fiscal year ending March 31, 2018 (announced on October 31, 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)

Third Quarter of the Fiscal
Year Ending March 31, 2018(As of December 31, 2017)

ASSETS
Current assets
Cash and deposits

38,845

11,327

Notes and accounts receivable - trade

68,49979,803

Securities

300-Inventories

27,76643,553

Accounts receivable - other

6,974

12,712

Deferred tax assets

348

463

Other

205

284

Allowance for doubtful accounts

(64)

(62)

142,876

148,081

Buildings and structures, net

3,398

3,234

Land

6,428

6,189

Leased assets, net

539

601

Other, net

158

167

10,525

10,194

1,110

990

Investment securities

4,983

5,492

Deferred tax assets

163

188

Other

2,095

2,551

Allowance for doubtful accounts

(136)

(138)

Total investments and other assets

7,107

8,094

18,743

19,280161,620

167,361

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)

Third Quarter of the Fiscal
Year Ending March 31, 2018
(As of December 31, 2017)

LIABILITIESCurrent liabilities
Accounts payable - trade34,45840,252

Short-term loans payable

11,41924,502

148

166

Accounts payable - other

1,499

2,004

Accrued expenses

1,047

551

Income taxes payable

390

1,085

Provision for bonuses

-333

131

444

49,09569,341

Lease obligations

450

502

Deferred tax liabilities

505

970

Net defined benefit liability

1,890

1,829

Asset retirement obligations

3430

Other

125

125

3,005

3,459

52,10172,801

Capital stock

17,69017,690Capital surplus

19,114

19,114Retained earnings

81,21971,667

Treasury shares(10,498)(17,215)

Total shareholders’ equity

107,525

91,257

1,5402,221

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

416

1,057

Remeasurements of defined benefit plans

3623

1,993

3,302

Total net assets

109,519

94,560Total liabilities and net assets

161,620

167,361

Lease obligations

Other
Total current liabilities
Non-current liabilities

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

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total accumulated other comprehensive income-4-(2) Consolidated Quarterly Statement of Income and Consolidated Quarterly Statement of Comprehensive Income(Consolidated Quarterly Statement of Income)(Scope of Consolidation of these First Three Quarters)

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
Foreign exchange losses
Commission for purchase of treasury shares
Miscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales of investment securities
Loss on valuation of golf membership
Loss on quality compensation
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to owners of parent

First Three Quarters of the Fiscal
Year Ended March 31, 2017
(Apr. 1, 2016 to Dec. 31, 2016)
159,299
145,689
13,60910,005
3,604(Millions of yen)First Three Quarters of the Fiscal
Year Ending March 31, 2018
(Apr. 1, 2017 to Dec. 31, 2017)
189,911
174,173
15,737
10,821
4,916

43
69
24
128
265

28
70
80
23
82
285

100
271
12
20
405
3,464

263
31
30
325
4,875-

65
5
70

157
59
3,404
1,034
2,370
2,370

0
0
4,946
1,537
3,408
3,408

-5-

(Consolidated Quarterly Statement of Comprehensive Income)(Scope of Consolidation of these First Three Quarters)(Millions of yen)

ProfitOther comprehensive income

First Three Quarters of the Fiscal
Year Ended March 31, 2017
(Apr. 1, 2016 to Dec. 31, 2016)
2,370

First Three Quarters of the Fiscal
Year Ending March 31, 2018
(Apr. 1, 2017 to Dec. 31, 2017)
3,408

171
4258
(10)
423
2,794

680
0641
(13)
1,309
4,717

2,794

4,717

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)
I. Purchase of treasury shares
Based on a corporate resolution made at the Board Meeting on May 12, 2017, Ryosan purchased
3,612,000 treasury shares. As a result, treasury shares increased by 15,850 million yen in these consolidated
first three quarters.
II. Retirement of treasury shares
Based on a corporate resolution made at the Board Meeting on May 12, 2017, Ryosan retired 3,000,000
treasury shares effective as of May 31, 2017. As a result, retained earnings and treasury shares in these
consolidated first three quarters both decreased by 9,134 million yen respectively.
(Segment Information)
I. Information Concerning Sales and Income or Loss Amount by Reporting Segment
For the consolidated first three quarters of the fiscal year ended March 31, 2017
(April 1, 2016 to December 31, 2016)(Millions of yen)
Semiconductors
Net sales
Sales to external customers
Internal sales or exchange
between segments
TotalSegment income (loss)

Reporting Segment
Electronic
Electronic
Components
Equipment

Total

Adjusted
amount(Note 1)

Amounts shown on
consolidated statement ofincome (Note 2)

91,99450,597

16,707

159,299―

159,299――――――

91,994
1,942

50,597
1,467

16,707491

159,299
3,900

―
(296)

159,299
3,604(Notes)1. The adjusted amount of minus 296 million yen represents corporate expenses (mainly general and administrativeexpenses) which are not allocated to the reporting segment.
2. Segment income has been adjusted with operating income in consolidated quarterly statement of income.

For the consolidated first three quarters of the fiscal year ending March 31, 2018
(April 1, 2017 to December 31, 2017)(Millions of yen)
Semiconductors
Net sales
Sales to external customers
Internal sales or exchange
between segments
TotalSegment income (loss)

Reporting Segment
Electronic
Electronic
Components
Equipment

Total

Adjusted
amount(Note 1)

Amounts shown on
consolidated statement ofincome (Note 2)

109,928

61,487

18,495

189,911―

189,911

―

―

―

―

―

―

109,9282,578

61,4872,171

18,495387

189,911
5,137

―
(221)

189,9114,916(Notes)1. The adjusted amount of minus 221 million yen represents corporate expenses (mainly general and administrativeexpenses) which are not allocated to the reporting segment.
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 Sales Destination
Fiscal year 2016, first three quarters of the fiscal year ended March 31, 2017
(April 1, 2016 to December 31, 2016)(Millions of yen)

Eliminations
or corporate

Consolidated

159,299―

159,2993

8,477(8,477)

―

5,449
173

167,776
3,292(8,477)
312

159,299
3,604

Japan

Asia

OtherTotal

95,88557,967

5,446

8,104

369

103,990
1,413

58,336
1,705

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.

Fiscal year 2017, first three quarters of the fiscal year ending March 31, 2018
(April 1, 2017 to December 31, 2017)(Millions of yen)

Eliminations
or corporate

Consolidated

189,911―

189,911

3

14,136(14,136)

―

6,519
188

204,048
4,536(14,136)379

189,911
4,916

Japan

Asia

Other

Total

115,90667,489

6,515

14,019113

129,926
1,979

67,602
2,367

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 year 2016, first three quarters of the fiscal year ended March 31, 2017
(April 1, 2016 to December 31, 2016)(Millions of yen)JapanNet sales
Ratio to consolidated net sales (%)

95,45959.9

China
29,77718.7

Asia
28,528
17.9

Other
5,533
3.5

Consolidated
159,299
100.0(Note) Net sales are on the basis of customer location and classified by country or region.

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

108,074
56.9

China
42,86222.6

Asia
32,36417.0(Note) Net sales are on the basis of customer location and classified by country or region.

-8-Other
6,609
3.5

Consolidated
189,911100.0