July 29, 2022

First Quarter Earnings Report for Fiscal Year 2022, Ending March 31, 2023
[Japanese Standards] (Consolidated)
Company name:Securities code:
Representative:

Ryosan Company, Limited
Stock listing: Prime Market, Tokyo Stock Exchange
8140
URL https://www.ryosan.co.jp/
Kazuhiko Inaba, Representative Director, President
Hideo Yuasa, Executive Officer,Inquiries:
TEL: +81-3-3862-2591
General Manager, Finance and Accounting Headquarters
Scheduled filing date of quarterly earnings report:
August 12, 2022
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 year 2022 (April 1, 2022 to June 30, 2022)(1) Consolidated operating results (Cumulative)(% change compared with the same period of the previous fiscal year (YoY))
Profit attributable toNet sales
Operating income
Ordinary income
owners of parent
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

72,650

18.5

2,481

14.6

1,136(48.8)680(57.6)

First Quarter, Fiscal Year 202161,316
40.9
2,165
(Note) Comprehensive income
First Quarter, Fiscal Year 2022: 3,540 million yen (146.8%)
First Quarter, Fiscal Year 2021: 1,434 million yen (91.0%)

674.6

2,221

416.0

1,603

231.2

First Quarter, Fiscal Year 2022

Basic earnings per
share

Diluted earnings per
share

Yen

First Quarter, Fiscal Year 2022
First Quarter, Fiscal Year 2021

Yen

29.03
68.45

――(2) Consolidated financial position
Total assets

Net assets

Net assets to total assets

Millions of yen

Millions of yen%

209,584
190,548

96,62594,72446.1
49.7

June 30, 2022March 31, 2022(Reference) Shareholders’ equity
June 30, 2022: 96,625 million yen
March 31, 2022: 94,724 million yen

Net assets per shareYen

4,124.33
4,043.20

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

Fiscal Year 2021―
Fiscal Year 2022―
Fiscal Year 2022 (Forecast)(Note) Revision of dividend forecasts: None

End of 2Q

End of 3Q

Yen

Yen

End of 4Q

Annual
Yen

Yen

50.00

―

70.00

120.00

50.00

―

50.00

100.003. Forecast of results for the fiscal year 2022 (April 1, 2022 to March 31, 2023)
Net sales
Millions of yen

Operating income(% figures represent year-on-year increase or decrease)
Basic earnings
Ordinary income
Profitper share% Millions of yen%

Millions of yen%Interim period
134,000
7.8
3,300
Full fiscal year
265,000(2.8)
7,000(Note) Revision of financial results forecasts: None

(19.5)(21.0)

3,2006,800(21.2)(15.9)

Millions of yen

2,200
4,800%

Yen

24.4(10.4)

93.90
204.88* Notes(1) Transfer of major subsidiaries during the scope of consolidation of these three months ended June 30, 2022 (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, 2022

25,000,000 shares

March 31, 2022

25,000,000 shares

June 30, 2022

1,571,921 shares

March 31, 2022

1,571,817 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 Year 2022

23,428,108 sharesFirst Quarter,
Fiscal Year 2021

23,428,503 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
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 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
In the consolidated first quarter of fiscal year 2022 (April 1 to June 30, 2022), apprehensions deepened regarding
the prospects for the global economy. Although the impact of the COVID-19 pandemic eased, economic sanctions
against the Russian Federation for its invasion of Ukraine, coupled with lockdowns in China, spurred chaos in supplychains and rising commodity prices. In the United States, the federal funds rate rose. These and other factors left
prospects for the future uncertain.
Similar trends impacted conditions in Japan. Although the Japanese economy continued to move toward recovery,
the supply-chain disruptions and high commodity prices described above, combined with an accelerating decline in
the yen exchange rate, compelled close attention to downside risk.
Against this macroeconomic background, uncertainty mounted in the electronics industry, Ryosan’s main field.
Companies in this field continued to adjust production amid a squeeze in supplies of semiconductors and electroniccomponents. In the overall market, however, the opposite problem prevailed, as inventory levels mounted.
In the first quarter, despite the impact of production adjustments in the automotive industry and similar factors,
sales broadened in a wide range of fields, buoyed by the depreciating yen. Net sales grew to 72,650 million yen (up18.5% from the same period of the previous fiscal year). Operating income rose to 2,481 million yen (up 14.6%).
However, Ryosan appropriated foreign exchange losses due to the declining yen, prompted by factors such asrevaluation of foreign-currency-denominated liabilities. Ordinary income contracted to 1,136 million yen (down48.8%), while profit attributable to owners of parent dropped to 680 million yen (down 57.6%).
2) Business Segment Information
a. Devices
During the consolidated first quarter under review, sales increased year-on-year, paced by products for theindustrial machinery sector. Net sales improved to 63,050 million yen (up 15.3% from the same period of theprevious fiscal year). Operating income grew to 2,222 million yen (up 18.4%).
b. Solutions
Large projects in products for the communications sector contributed. Net income lifted to 9,599 million yen (up44.4% from the same period of the previous fiscal year), while operating income surged to 498 million yen (up59.8%).
(2) Qualitative Information Concerning Consolidated Financial Position
As of June 30, 2022, total assets increased by 19,035 million yen compared with the end of the previous fiscal year,
to 209,584 million yen.
Also, net assets increased by 1,900 million yen compared with the end of the previous fiscal year, to 96,625 million
yen, with the ratio of net assets to total assets being 46.1%.
(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions
The forecast of consolidated business results is unchanged from the forecast published on May 13, 2022.

-2-2. Consolidated Quarterly Financial Statements and Main Notes(1) Consolidated Quarterly Balance Sheet(Millions of yen)
Fiscal Year Ended
March 31, 2022
(As of March 31, 2022)

First Quarter of the Fiscal
Year Ending March 31, 2023
(As of June 30, 2022)

ASSETS
Current assets
Cash and deposits

12,066

14,681

Notes and accounts receivable –trade

92,574

94,419Inventories

52,64762,936

Accounts receivable – other

18,721

22,627

Other

1,094

1,414

Allowance for doubtful accounts

(276)

(340)

176,827

195,740

Buildings and structures, net

2,563

2,548

Land

5,178

5,180

Leased assets, net

394

361

Other, net

201

204

8,338

8,295

985

1,012

Investment securities

3,001

3,039

Deferred tax assets

295

369

Other

1,206

1,244

Allowance for doubtful accounts

(106)

(116)

Total investments and other assets

4,397

4,536

13,72013,843

190,548

209,584

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, 2022
(As of March 31, 2022)

First Quarter of the Fiscal
Year Ending March 31, 2023
(As of June 30, 2022)

LIABILITIESCurrent liabilities
Accounts payable - trade42,97647,319

Short-term loans payable

38,07947,356

Commercial papers

4,999

9,998

Lease obligations

224202Accounts payable - other

3,469

2,991

Accrued expenses

1,930

835

Income taxes payable

1,798

882

Provision for bonuses

-489

391

806

93,869110,884

Lease obligations

202

189

Deferred tax liabilities

597

784

Net defined benefit liability

1,068

1,013

Asset retirement obligations

23

23

Other

62

65

1,953

2,075

95,823112,959

Capital stock

17,69017,690Capital surplus

19,114

19,114Retained earnings

59,586

58,627

Treasury shares(6,534)(6,534)

Total shareholders’ equity

89,85788,897

1,257

1,244

1(0)

Foreign currency translation adjustment

3,634

6,512

Remeasurements of defined benefit plans

(25)

(28)

Total accumulated other comprehensive income

4,867

7,728

Total net assets

94,724

96,625

Total liabilities and net assets

190,548

209,584

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
Deferred gains or losses on hedges-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, 2022

First Quarter of the Fiscal YearEnding March 31, 2023

(April 1, 2021 to June 30, 2021)(April 1, 2022 to June 30, 2022)

61,31655,422
5,894
3,728
2,165

72,65066,013
6,636
4,155
2,481

5
35
631
13
20
140

6
37
43
19
12
36
154

35
46
2
84
2,221

125
1,373
1
1,500
1,136

1
12,222
618
1,603
1,603

001,136456680680

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
Commission feeRent income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
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 golf memberships
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, 2022

First Quarter of the Fiscal YearEnding March 31, 2023

(April 1, 2021 to June 30, 2021)(April 1, 2022 to June 30, 2022)

1,603

680

(123)
(0)
(42)
(2)
(168)
1,434

(12)
(1)
2,877
(3)
2,860
3,540

1,434

3,540

ProfitOther comprehensive incomeValuation 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(Segment Information)
I. Information Concerning Sales and Income or Loss Amount by Reporting Segment
Consolidated First Quarter of the Fiscal Year Ended March 31, 2022
(April 1, 2021 to June 30, 2021)(Millions of yen)
Reporting Segment

Net sales
Sales to external customers
Internal sales or exchange
between segments
Total
Segment income (loss)

Total

Adjusted amount(Note 1)

Amounts shown on
consolidated quarterly
statement of income (Note 2)

DevicesSolutions

54,6706,646

61,316―61,316

―

―

―

―

―

54,670
1,876

6,646
312

61,316
2,188

―
(22)

61,3162,165(Notes)1. The adjusted amount of minus 22 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 Quarter of the Fiscal Year Ending March 31, 2023
(April 1, 2022 to June 30, 2022)(Millions of yen)
Reporting Segment

Net sales
Sales to external customers
Internal sales or exchange
between segments
TotalSegment income (loss)

Adjusted amount(Note 1)

Amounts shown on
consolidated quarterly
statement of income (Note 2)

72,650―72,650

―

――

―

9,599
498

72,6502,721―(239)

72,6502,481

Devices

Solutions

63,0509,599―
63,0502,222

Total(Notes)
1. The adjusted amount of minus 239 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.

-7-II. Information Concerning Sales and Income or Loss Amount by Sales Destination
Fiscal year 2021, first quarter of the fiscal year ended March 31, 2022
(April 1, 2021 to June 30, 2021)(Millions of yen)JapanAsia

Other

32,89425,677

2,744

5,447

65

538,342980

25,742
1,084

2,750
48

Eliminations
or corporate

Consolidated

61,316―61,316

5,518(5,518)―

66,835
2,112(5,518)
53

61,316
2,165

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 2022, first quarter of the fiscal year ending March 31, 2023
(April 1, 2022 to June 30, 2022)(Millions of yen)

Eliminations
or corporate

Consolidated

72,650―72,65019

5,372(5,372)

―

2,449
132

78,022
2,382(5,372)
98

72,650
2,481

Japan

Asia

Other

38,12132,098

2,429

5,030

321

43,152
1,186

32,420
1,063

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, China, Thailand, South Korea, etc.
Other: United States, etc.

III. Information Concerning Sales by Region
Fiscal year 2021, first quarter of the fiscal year ended March 31, 2022
(April 1, 2021 to June 30, 2021)(Millions of yen)JapanNet sales
Ratio to consolidated net sales (%)

China

31,462
51.3

15,66925.6

Asia
11,216
18.3

Other
2,967
4.8

Consolidated
61,316100.0(Note) Net sales are on the basis of customer location and classified by country or region.

Fiscal year 2022, first quarter of the fiscal year ending March 31, 2023
(April 1, 2022 to June 30, 2022)(Millions of yen)JapanNet sales
Ratio to consolidated net sales (%)

China

38,24652.6

17,82824.5

Asia
14,034
19.3(Note) Net sales are on the basis of customer location and classified by country or region.

-8-

Other
2,540
3.5

Consolidated
72,650100.0