October 31, 2011

First Half Consolidated Earnings Report for Fiscal 2011, Ending March 31, 2012
[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
Harumitsu Seki
Senior Managing Director and General Manager
Financing and Accounting Headquarters
TEL: +81-3-3862-2591
Scheduled filing date of quarterly earnings report
November 14, 2011
Scheduled payment date of dividend:
December 1, 2011
Supplementary materials for the quarterly financial results:
Yes
Investor conference for the quarterly financial results
Yes(Millions of yen rounded down)

1. Consolidated results for the first half of fiscal 2011 (April 1, 2011 to September 30, 2011)(1) Consolidated operating results (Cumulative)(% figures represent year-on-year increase or decrease)
Net sales

Operating income

Millions of yen% Millions of yen

Ordinary income% Millions of yen

Net income% Millions of yen

First half, Fiscal 2011
106,9870.4
1,574(55.9)
2,097(47.2)
1,132
First half, Fiscal 2010
106,543
21.6
3,567
131.4
3,970
111.9
2,541
(Note) Comprehensive income
First half, Fiscal 2011: -1 million yen (-%)
First half, Fiscal 2010: 1,354 million yen ( - %)Net income
Net income perper shareshare after dilution
First half, Fiscal 2011
First half, Fiscal 2010

Yen

Yen

32.94
73.74

－
－

%

(55.4)
174.9(2) Consolidated financial position
Total assets
Millions of yen

September 30, 2011
March 31, 2011
(Reference) Shareholders equity:
September 30, 2011:

Net assets tototal assets

Net assets
Millions of yen%

Yen

115,439
117,78071.5
72.0

3,400.78
3,413.87

161,308
163,479
115,338 million yen,

Net assets
per share

March 31, 2011: 117,660 million yen

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

End of 1Q

Fiscal 2010
Fiscal 2011
Fiscal 2011 (Forecast)(Note) Revision of dividend forecasts: No

End of 2Q

End of 3Q

40.00
20.00

－
－

End of 4Q

Annual

－

40.00

80.00

－

40.00

60.00

3. Forecast of results for the fiscal year ending March 31, 2012 (April 1, 2011 to March 31, 2012)
Net sales
Millions of yen

Operating income%

Millions of yen

Full Fiscal Year
230,000
6.4
3,500(Note) Revision of financial results forecasts: No(% figures represent year-on-year increase or decrease)
Net income per
Ordinary income
Net income
share

%

Millions of yen%

Millions of yen%(42.4)

4,200(39.0)

2,500(39.5)

Yen

72.54

4. Other(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) Restatement of changes in accounting principles/changes and revisions in accounting estimate
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:
September 30, 2011: 34,500,000 shares

March 31, 2011: 34,500,000 shares

2. Total number of treasury stock as of the period-end:
September 30, 2011: 584,823 shares

March 31, 2011: 34,704 shares

3. Average number of shares outstanding during the period (Cumulative total for the quarterly consolidated period)First half fiscal, 2011: 34,393,386 sharesFirst half fiscal, 2010: 34,465,885 shares

Indication regarding the implementation status of the quarterly review procedure
Earnings report for this first half is not the subject of a quarterly review procedure based on the Financial Instruments and Exchange Act,and at the point in time when these earnings report was disclosed, review procedures for quarterly financial statements based on the
Financial Instruments and Exchange Act had not been completed.
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. Actual results could
significantly differ from the estimates due to a variety of factors. For details on the conditions that form the assumptions used forearnings forecasts and notes on using earnings forecasts, please refer to appendix page 3, “(3) Qualitative information and Other Matters
Concerning Consolidated Forecasts for the Fiscal Year Ending March 31, 2012”.

○Table of contents of the appendix
1. Qualitative Information Regarding this Quarterly Statement........................................................................................................... 2(1) Qualitative Information and Other Matters Concerning Consolidated Operating Results for the First Half of
Fiscal 2011............................................................................................................................................................................. 2(2) Qualitative Information and Other Matters Concerning Consolidated Financial Position for the End of the First
Half of Fiscal 2011................................................................................................................................................................. 3(3) Qualitative Information and Other Matters Concerning Consolidated Forecasts for the Fiscal Year Ending
March 31, 2012...................................................................................................................................................................... 4
2. Items Regarding Summary Information (Others)............................................................................................................................. 4(1) Transfer of Major Subsidiaries during the Scope of Consolidation of this Quarter ............................................................. 4(2) Applying Accounting Procedures Specific to Preparing Quarterly Financial Statements...................................................... 4(3) Restatement of Changes in Accounting Principles/Changes and Revisions in Accounting Estimate .................................... 4
3. Consolidated Quarterly Financial Statements .................................................................................................................................. 5(1) Consolidated Quarterly Balance Sheets ................................................................................................................................ 5(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Comprehensive Statements of Income
Consolidated Quarterly Statements of Income
Scope of Consolidation of this first half period ............................................................................................................. 7
Consolidated Quarterly Comprehensive Statements of Income
Scope of Consolidation of this first half period ............................................................................................................. 8(3) Consolidated Quarterly Statements of cash flows ................................................................................................................. 9(4) Notes Regarding Going Concern .......................................................................................................................................... 10(5) Segment Information ............................................................................................................................................................ 10(6) Notes Regarding Substantial Changes in Shareholders’ Equity............................................................................................ 10
4. Supplementary Information............................................................................................................................................................. 11(1) Geographical Segment Information ...................................................................................................................................... 11(2) Overseas Sales ...................................................................................................................................................................... 11-1-

1. Qualitative Information Regarding this Quarterly Statement(1) Qualitative Information and Other Matters Concerning Consolidated Operating Results for the First Halfof Fiscal 2011
1) Overview
The global economy in the first half period (April 1-September 30, 2011), although there was steady growth in theeconomies of emerging countries such as China, as the feeling that European economy is plagued with stagnation
grew, economic growth of all countries fell into disarray, leaving the future even more uncertain. On the other hand,the electronics industry, in which we are engaged, showed comparatively robust results due to the expansion of new
product groups such as smartphones and tablet PCs and the steady movement of the FA market in addition tomarket expansion in emerging countries.
To increase sales under such circumstances, the Ryosan Group has powerfully promoted the main directions wehave set for our progress, that is, “strengthening our approach to developing countries with rapid growth (China andIndia)”, “strengthening our business with globalizing Japanese customers” and “strengthening our presence ingrowth fields (car electronics, social infrastructure, etc.)”, and has also strived towards “improving profitability.”
As a result of the above, although there has been a temporary decrease of production due to the Great East Japan
Earthquake, as the contribution made by the expansion of commercial rights of the Renesas Electronics business
was quite substantial, the Ryosan Group reported increases in revenues and decreases in earnings, with net sales of
106,987 million yen (up 0.4% from the same period previous year). At the same time, in terms of income, operating
income came to 1,574 million yen (down 55.9%), ordinary income to 2,097 million yen (down 47.2%) and net
income to 1,132 million yen (down 55.4%) for results of the first half period under review due to the increase inbusiness costs that were required in order to strengthen the Renesas Electronics business during its initial phase.
2) Business Segment Informationa. Semiconductors
We sell memories, system LSIs and discrete semiconductors, and develop system LSIs. In this first half period,
sales of system LSIs for in-vehicle electrical components, etc. increased, with net sales of 64,914 million yen (up5.1% from the same period previous year), but operating income came to 1,114 million yen (down 58.8%).
b. Electronic Components
We sell display devices, power supplies and electromechanical components. In this first half period, sales ofelectromechanical components for game console, etc. decreased, with net sales of 27,848 million yen (down 7.6%
from the same period previous year) and operating income of 1,092 million yen (down 14.3%).
c. Electronic Equipment
We sell systems equipment and facilities equipment. In this first half period, sales of system equipment for
in-vehicle electrical components, etc. decreased, with net sales of 11,155 million yen (down 2.1% from the same
period previous year) and operating income of 289 million yen (down 21.5%).
d. Ryosan Products
We produce and sell heat sinks (devices that dissipate the heat generated by semiconductors). In this first half
period, sales of heat sinks for flat screen TVs etc. decreased, with net sales of 3,070 million yen (down 6.1% fromthe same period previous year) and operating income of 196 million yen (down 32.9%).

(2) Qualitative Information and Other Matters Concerning Consolidated Financial Position for the End of theFirst Half of Fiscal 2011
1) An Overview of Financial Position
At the end of this first half period, total assets had decreased by 2,170 million yen, as compared with the level at theend of the previous fiscal year, and came to 161,308 million yen.
Also, net assets decreased by 2,341 million yen, as compared with the level at the end of the previous fiscal year,
and came to 115,439 million yen, with the ratio of net assets to total assets being 71.5%.
-2-2) An Overview of Cash Flows
As of the end of this consolidated first half period, cash and cash equivalent had decreased by 5,055 million yen ascompared with the level at the end of the previous consolidated fiscal year, and came to 38,183 million yen.
(Cash flow from operating activities)
Regarding cash flow from operating activities in this consolidated first half period, on the whole there was adecrease of funds of 4,712 million yen, since although the quarterly net income before tax and other adjustments
was 1,940 million yen, there has also been an increase of 3,416 million yen in note and account receivable, and anincrease of 3,236 million yen in inventories, etc. For a comparison, in the net cash provided by (used in) operating
activities of the corresponding quarter of the previous year, there was a decrease of funds by 4,869 million yen.
(Cash flow from investing activities)
Regarding cash flow from investing activities in this consolidated first half period, there was a decrease of funds by
382 million yen due to purchases of intangible assets, etc. For a comparison, in the net cash provided by (used in)investment activities of the corresponding quarter of the previous year, there was a decrease of funds by 106 million
yen.
(Cash flow from financing activities)
Regarding cash flow from financial activities in this consolidated first half period, there was an increase of funds by
407 million yen, although there was a payment dividend of 1,378 million yen and a purchase of treasury stock of
955 million yen, etc. made, there was also an increase of the short-term loans payable by 2,798 million yen. For acomparison, in the net cash provided by (used in) financing activities of the corresponding quarter of the previous
year, there was an increase of funds by 1,494 million yen.
(3) Qualitative Information and Other Matters Concerning Consolidated Forecasts for the Fiscal Year Ending
March 31, 2012
1) Overall Business Performance Forecast
Looking ahead, the uncertainty surrounding the global economy will most probably further increase due to theslowdown of the pace of economic recovery in the developed countries, aggravation of fiscal problems, etc., while
the currently increasing damages inflicted by the flood in Thailand are expected to affects many industries. Against
the backdrop of this forecast operating environment, Ryosan Group will continue to promote and pursue two key
initiatives: "Construction of a management structure strong enough to survive in the global age" and "Exploitationof emerging markets to support future growth."
Although at the present point no modifications have been made to the consolidated earnings forecast for the term
ending March, 2012 that was announced on June 14, 2011, Ryosan Group shall analyze the future trends in businessresults in the view of various aspects including the impact of the flood in Thailand on our company group, andannounce them promptly as needed.

-3-

2. Items Regarding Summary Information (Others)(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) Restatement of changes in accounting principles/changes and revisions in accounting estimate
None

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3. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Millions of yen)
Fiscal Year Ended
March 31, 2011
(As of March 31, 2011)

First Half of the Fiscal YearEnding March 31, 2012
(As of September 30, 2011)ASSETS
Current assets
Cash and deposits

43,24038,185Trade notes and accounts receivable

68,70970,962Inventories

22,96325,589Accrued income

4,483

2,994

Deferred tax assets

400

374

Other current assets

288

173

Allowance for doubtful accounts

(63)

(76)

140,021138,202

Buildings and structures (net)

4,645

4,543

Land

8,126

8,121

Lease assets (net)

255

214

Other fixed assets (net)

654

587

13,682

13,466701

826

Investment securities

3,156

2,858

Long-term deposits

3,000

3,000

Deferred tax assets

1,571

1,656

Other

2,447

2,353

Allowance for doubtful accounts

(975)

(902)

Allowance for loss on investments

(127)

(152)

Total Investments and other assets

9,072

8,813

23,457

23,105

163,479

161,308

Total current assets
Fixed assets
Property, plant and equipment

Total property, plant and equipment
Intangible fixed assets
Investments and other assets

Total fixed assets
Total assets-5-

(Millions of yen)
Fiscal Year Ended
March 31, 2011
(As of March 31, 2011)

First Half of the Fiscal YearEnding March 31, 2012
(As of September 30, 2011)

LIABILITIESCurrent liabilities
Trade notes and accounts payable

31,21929,528

Short-term bank loans

7,621

9,721

Lease obligations

116

108

Accrued expenses

995

1,039

Accrued income taxes

1,402

678

Other current liabilities

1,745

2,213

Total current liabilities

43,10043,290

194

152

2,327

2,351

Other long-term liabilities

76

75

Total long-term liabilities

2,597

2,578

45,69845,869Common stock

17,69017,690Additional paid-in capital

19,114

19,114Retained earnings

83,606

83,360Treasury stock(85)(1,040)120,325

119,124

Net unrealized gain on other marketable securities

295

161

Gain (loss) on deferred hedges

(6)

(9)

Foreign currency translation adjustments(2,954)(3,939)Total other accumulated comprehensive incomes(2,665)(3,786)120

101

Total net assets

117,780

115,439

Total liabilities and net assets

163,479

161,308

Long-term liabilities
Lease obligations
Employees’ retirement benefits

Total liabilities
NET ASSETS
Shareholder’s equity

Total shareholders’ equity
Other accumulated comprehensive incomes

Minority interests-6-(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Comprehensive Statements ofIncome(Consolidated Quarterly Statements of Income)(Scope of Consolidation of this first half period)(Millions of yen)

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
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 sales and disposal of property, plant and equipment
Loss on valuation of investment securities
Provision of allowance for investment loss
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before Minority interest in income
Minority interests in income
Net income-7-First Half of the Fiscal Year
Ended March 31, 2011

First Half of the Fiscal YearEnding March 31, 2012

(Apr. 1, 2010 to Sep. 30, 2010)(Apr. 1, 2011 to Sep. 30, 2011)

106,543
96,548
9,994
6,427
3,567

106,987
98,724
8,262
6,688
1,574

56
135
116
－
134
443

46
136
36
276
118
613

33
6
40
3,970

80
10
90
2,097

0
157
157

0
－
0

3
－
23
27
4,100
1,556
2,543
2
2,541

2
129
25
157
1,940
805
1,134
1
1,132

(Consolidated Quarterly Comprehensive Statements of Income)(Scope of Consolidation of this first half period)(Millions of yen)

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 of parental company
Comprehensive incomes relating to minority shareholders-8-First Half of the Fiscal Year
Ended March 31, 2012

First Half of the Fiscal YearEnding March 31, 2012

(Apr. 1, 2010 to Sep. 30, 2010)(Apr. 1, 2011 to Sep. 30, 2011)

2,543

1,134

(307)
(53)
(829)

(134)
(2)
(999)

(1,189)1,354(1,135)
(1)

1,356
(2)

11
(12)

(3) Consolidated Quarterly Statements of cash flows(Millions of yen)

Operating activities
Quarterly Income before income taxes
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits）
Interest and dividends income
Interest expenses
Loss (gain) on sales of investment securities
Loss (gain) on sales of property, plant and equipment
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Investing activities
Payments into time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Payments of loans receivableCollection of loans receivable
Net cash provided by (used in) investment activities
Financing activities
Net increase (decrease) in short-term loans payable
Repayments of lease obligations
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Increase in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at the end of the period-9-First Half of the Fiscal Year
Ended March 31, 2012

First Half of the Fiscal YearEnding March 31, 2012

(Apr. 1, 2010 to Sep. 30, 2010)(Apr. 1, 2011 to Sep. 30, 2011)

4,100
387
(158)
59
(191)
33
－
3
(611)
(3,740)(2,998)(703)(3,819)195(33)(1,211)(4,869)

1,940
337
(52)
30
(182)
80
129
2
(3,416)(3,236)(942)
1,960(3,351)183(77)(1,466)(4,712)

－
(95)
0
(11)
－
(0)
1
(106)

(0)
(105)
0
(219)
(57)
(1)
1
(382)

2,944
(68)
(0)
(1,378)
(2)
1,494
(311)
(3,792)50,458

2,798
(50)
(955)
(1,378)
(6)
407
(368)
(5,055)43,239414－

47,08038,183

(4) Notes Regarding Going Concern
Not applicable.
(5) Segment Information
I. For the first half period of the fiscal year ended March 31, 2011
(April 1, 2010 to September 30, 2010)
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

61,74330,138

11,391

3,269

106,543―

106,543

―

―

―

―

―

―

―

61,743
2,709

30,138
1,274

11,391
368

3,269
293

106,543
4,646―(1,079)106,543
3,567

Sales and operating income
Sales:
Sales to external
Customers
Internal sales between
segments, or exchange
Total
Segment income (loss)(Notes)1. The adjustment of -1,079 million yen to segment earnings 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 first half period of the fiscal year ending March 31, 2012
(April 1, 2011 to September 30, 2011)
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

64,914

27,848

11,155

3,070

106,987―

106,987

―

―

―

―

―

―

―

64,914
1,114

27,848
1,092

11,155
289

3,070
196

106,987
2,693―(1,119)106,987
1,574

Sales and operating income
Sales:
Sales to external
Customers
Internal sales between
segments, or exchange
Total
Segment income (loss)(Notes)1. The adjustment of -1,119 million yen to segment earnings 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.

(5) Notes Regarding Substantial Changes in Shareholders’ Equity
Not applicable.

- 10 -

4. Supplementary Information(1) Geographical Segment Information
Fiscal 2010, first half period of the fiscal year ended March 31, 2011
(April 1, 2010 to September 30, 2010)(Millions of yen)Japan
I Sales and operating income
Sales:(1) Sales to external
Customers(2)Internal sales between
segments, or exchange
Total
Operating income

Asia

Total

Eliminations
or corporate

Consolidated

74,704

31,838106,543―

106,543

6,846

156

7,003

(7,003)―81,5502,527

31,995954

113,546
3,482(7,003)
85

106,543
3,567

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

Fiscal 2011, first half period of the fiscal year ending March 31, 2012
(April 1, 2011 to September 30, 2011)(Millions of yen)Japan
I Sales and operating income
Sales:(1) Sales to external
Customers(2)Internal sales between
segments, or exchange
Total
Operating income

Asia

Total

Eliminations
or corporate

Consolidated

74,13332,854

106,987―

106,987

4,476

372

4,848

(4,848)―78,609930

33,226
520

111,835
1,451(4,848)122

106,987
1,574

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia :
Hong Kong, China, Taiwan, Thailand , Singapore and others(2) Overseas Sales
Fiscal 2010, first half period of the fiscal year ended March 31, 2011
(April 1, 2010 to September 30, 2010)
Asia
37,215―
34.9

Overseas sales
Consolidated net sales
Ratio of overseas sales to consolidated net sales (%)(Millions of yen)Total
37,215
106,543
34.9

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

- 11 -

Fiscal 2011, first half period of the fiscal year ending March 31, 2012
(April 1, 2011 to September 30, 2011)
Asia
35,070―32.8

Overseas sales
Consolidated net sales
Ratio of overseas sales to consolidated net sales (%)(Millions of yen)
Total
35,070106,987
32.8

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

- 12 -