January 26, 2021

Third Quarter 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:
February 12, 2021
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 2020 (April 1, 2020 to December 31, 2020)(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

First Three Quarters, Fiscal Year
158,467
(9.2)
2,915
2020
First Three Quarters, Fiscal Year
174,441
(9.3)
2,970
2019
(Note) Comprehensive income
First Three Quarters, Fiscal Year 2020: 3,249 million yen (73.9%)First Three Quarters, Fiscal Year 2019: 1,868 million yen (5.0%)%

Millions of yen%

Millions of yen%

(1.9)

3,821

30.7

3,146

89.7

(31.4)

2,925(7.3)

1,658(24.6)

Basic earnings per
share

Diluted earnings per
shareYenYen

First Three Quarters, Fiscal Year
2020
First Three Quarters, Fiscal Year2019

134.30

―

70.80

―

(2) Consolidated financial position
Total assets

Net assets

Net assets to total assets

Millions of yen

Millions of yen%December 31, 2020
143,108
March 31, 2020
137,746(Reference) Shareholders’ equity
December 31, 2020: 86,778 million yen
March 31, 2020: 84,935 million yen

86,77884,935

60.6
61.7

Net assets per shareYen

3,703.93
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: None

End of 2Q

End of 3Q

Yen

50.00
30.00

Yen―
―

End of 4Q

AnnualYen

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 pershare

Operating income%

Millions of yen

Full Fiscal Year
215,000(5.4)(Note) Revision of financial results forecasts: Yes

3,600%

Millions of yen%

Millions of yen%

15.8

4,500

54.3

3,500

193.1

Yen

149.39* Notes(1) Transfer of major subsidiaries during the scope of consolidation of these nine months ended December 31, 2020 (transfer of specified
subsidiaries in line with changes in the consolidated range): None
New:－ (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:

December 31,
2020

2. Total number of treasury shares at theDecember 31,period-end:

2020

3. Average number of shares outstanding

First Threeduring the period (Cumulative total for theQuarters, Fiscal

quarterly consolidated period)

Year 2020

25,000,000 shares

March 31, 2020

25,000,000 shares

1,571,311 shares

March 31, 2020

1,570,850 sharesFirst Three
23,428,919 shares

Quarters, Fiscal

23,429,528 sharesYear 2019

This 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 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 the consolidated first three quarters of fiscal year 2020 (April 1 to December 31, 2020), the global economy
deteriorated severely, as production activity slowed and personal consumption cooled due to the COVID-19 pandemic.
Economic activity restarted in a phased manner and a trend toward recovery was recognized toward the end of year,
although conditions in each country varied widely.
The electronics industry, Ryosan’s main field, established a recovery keynote, despite disruptions in supply chains,and reduction in demand, particularly in the automotive business, as a result of the pandemic.
In the consolidated first three quarters under review, net sales, dragged down by their decline in the first half of thefiscal year, reached 158,467 million yen (down 9.2% from the same period of the previous fiscal year). Operating
income dipped to 2,915 million yen (down only 1.9% thanks to counter measures for profitability enhancement thattrimmed selling, general and administrative expenses). Ordinary income rose to 3,821 million yen (up 30.7%),
boosted by factors such as foreign exchange gains, caused by the revaluation of foreign-currency-denominatedliabilities, and a decline in interest expenses. Profit attributable to owners of parent, including income from sale ofinvestment securities, increased to 3,146 million yen (up 89.7%).
2) Business Segment Informationa. Semiconductors
Ryosan sells system LSIs, discrete semiconductors and memory, and develops system LSIs on a contract basis.
During the consolidated nine-month period under review, a downturn in Ryosan’s automotive business in the firsthalf contributed to a decline in net sales to 94,342 million yen (down 9.5% from the same period of the previous
fiscal year). Operating income also declined, but less precipitously than net sales. This decline was softened by areduction in selling, general and administrative expenses in the fiscal year under review, as well as by the absenceof the disposition of immobile stock that had restrained operating income in the previous third quarter. Operating
income retreated to 1,278 million yen (down 1.2%).
b. Electronic Components
Ryosan sells electromechanical components, display devices and power supplies. Although Ryosan’s consumer
business trended favorably during the consolidated nine-month period under review, it was unable to offset theeffects of a slowdown in the automotive business in the first half. Net sales slipped to 55,090 million yen (down
2.9% from the same period of the previous fiscal year), while operating income retreated to 1,781 million yen(down 0.3%).
c. Electronic Equipment
Ryosan sells systems equipment and facilities equipment. In this consolidated nine-month period, large projects
in the automotive business shrank considerably. Net sales fell to 9,033 million yen (down 32.9% from the same
period of the previous fiscal year) and operating income more than halved to 120 million yen (down 54.2%).
(2) Qualitative Information Concerning Consolidated Financial Position
As of December 31, 2020, total assets increased by 5,362 million yen compared with the end of the previous fiscalyear, to 143,108 million yen.
Also, net assets increased by 1,842 million yen compared with the end of the previous fiscal year, to 86,778 million
yen, with the ratio of net assets to total assets being 60.6%.
(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions
In view of business results up to and including the consolidated nine-month period under review, Ryosan has
revised its forecast of consolidated business results for the fiscal year ending March 31, 2021, which was announced
on October 29, 2020.
For details, please refer to today’s “Notice Concerning Revision of Business Results Forecast.”-2-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)

Third Quarter of the Fiscal
Year Ending March 31, 2021
(As of December 31, 2020)

ASSETS
Current assets
Cash and deposits

24,501

17,160Notes and accounts receivable –trade

53,687

69,204Inventories

37,24335,142

Accounts receivable – other

6,196

5,088

Other

322

868

Allowance for doubtful accounts

(152)

(194)

121,799

127,271

Buildings and structures, net

2,726

2,736

Land

5,758

5,315

Leased assets, net

545

434

Other, net

241

224

9,271

8,711

946

867

Investment securities

3,517

3,868

Deferred tax assets

340

313

Other

2,241

2,146

Allowance for doubtful accounts

(68)

(70)

Allowance for investment loss

(301)

-

Total investments and other assets

5,729

6,257

15,947

15,837

137,746

143,108

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, 2020
(As of March 31, 2020)

Third Quarter of the Fiscal
Year Ending March 31, 2021
(As of December 31, 2020)

LIABILITIESCurrent liabilities
Accounts payable - trade28,475

29,153

Short-term loans payable

18,15821,323229

225

Accounts payable - other2,005

1,576

Accrued expenses

1,228

609

Provision for bonuses-412

Income taxes payable

454

389

Other

145

381

50,69754,072

Lease obligations

369

255

Deferred tax liabilities

38440

Net defined benefit liability

1,622

1,483

Asset retirement obligations

3025

Other

52

52

2,113

2,258

52,81056,330Capital stock

17,69017,690Capital surplus

19,114

19,114Retained earnings

53,85755,598Treasury shares(6,532)(6,533)

Total shareholders’ equity

84,13085,869

1,158

1,589

0

(2)

Foreign currency translation adjustment

(300)

(615)

Remeasurements of defined benefit plans

(52)

(62)

Total accumulated other comprehensive income

805

908

Total net assets

84,93586,778

Total liabilities and net assets

137,746

143,108

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-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)(Millions of yen)First Three Quarters of the
Fiscal Year Ended March 31,2020First Three Quarters of the
Fiscal Year Ending March 31,2021(April 1, 2019 to Dec. 31, 2019)(April 1, 2020 to Dec. 31, 2020)

174,441
160,508
13,933
10,962
2,970

158,467
145,106
13,36010,445
2,915

42
75
184
42
100
444

27
65
680
135
40
147
1,097

463
10
17
490
2,925

160
30
191
3,821

1
153
254
106
413

433
8
442
2,484
825
1,658
1,658

1
14,233
1,087
3,146
3,146

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-5-

(Consolidated Quarterly Statement of Comprehensive Income)(Scope of Consolidation of these First Three Quarters)(Millions of yen)First Three Quarters of the
Fiscal Year Ended March 31,
2020

First Three Quarters of the
Fiscal Year Ending March 31,
2021(April 1, 2019 to Dec. 31, 2019)(April 1, 2020 to Dec. 31, 2020)

1,658

3,146304
0(81)
(13)
209
1,868

431
(2)
(315)
(10)
102
3,249

1,868

3,249

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(Segment Information)
I. Information Concerning Sales and Income or Loss Amount by Reporting Segment
Consolidated first three quarters of the fiscal year ended March 31, 2020
(April 1, 2019 to December 31, 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

Adjustedamount(Note 1)

Amounts shown on
consolidated statement ofincome (Note 2)

104,252

56,736

13,453

174,441―

174,441

―

―

―

―

―

―

104,252
1,293

56,736
1,786

13,453
262

174,441
3,342―(371)

174,441
2,970(Notes)
1. The adjusted amount of minus 371 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 three quarters of the fiscal year ending March 31, 2021
(April 1, 2020 to December 31, 2020)(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)

94,34255,090

9,033

158,467―

158,467

―

――

―

―

―

94,342
1,278

55,090
1,781

9,033
120

158,467
3,180

―
(265)

158,467
2,915(Notes)1. The adjusted amount of minus 265 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 2019, first three quarters of the fiscal year ended March 31, 2020
(April 1, 2019 to December 31, 2019)(Millions of yen)

Eliminations
or corporate

Consolidated

174,441―

174,441

13

14,564(14,564)

―

7,699
282

189,006
2,499(14,564)471

174,441
2,970

Japan

Asia

Other

96,02070,734

7,686

14,381

169

110,40176

70,904
2,140

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 three quarters of the fiscal year ending March 31, 2021
(April 1, 2020 to December 31, 2020)(Millions of yen)

Eliminations
or corporate

Consolidated

158,467―

158,467

18

12,418(12,418)

―

6,885
110

170,885
2,441(12,418)473

158,467
2,915

Japan

Asia

Other

88,25863,341

6,867

12,212

187

100,470661

63,528
1,670

TotalNet 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 three quarters of the fiscal year ended March 31, 2020
(April 1, 2019 to December 31, 2019)(Millions of yen)JapanNet sales
Ratio to consolidated net sales (%)

China

91,21452.3

42,23924.2Asia
33,112
19.0

Other
7,874
4.5

Consolidated
174,441100.0(Note) Net sales are on the basis of customer location and classified by country or region.

Fiscal year 2020, first three quarters of the fiscal year ending March 31, 2021
(April 1, 2020 to December 31, 2020)(Millions of yen)JapanNet sales
Ratio to consolidated net sales (%)

China

81,35651.3

43,75627.6

Asia
25,84616.3(Note) Net sales are on the basis of customer location and classified by country or region.

-8-

Other
7,506
4.7

Consolidated
158,467
100.0