July 30, 2019

First Quarter Earnings Report for Fiscal Year 2019, Ending March 31, 2020
[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 13, 2019
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 2019 (April 1, 2019 to June 30, 2019)(1) Consolidated operating results (Cumulative)(% change compared with the same period of the previous fiscal year (YoY))
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

57,943(8.8)

821(33.8)

917

48.8

665

60.8

1,240

(17.7)

616(61.4)

413(62.0)First Quarter, Fiscal Year 2019

First Quarter, Fiscal Year 2018
63,5607.9(Note) Comprehensive income
First Quarter, Fiscal Year 2019: (93) million yen (―%)
First Quarter, Fiscal Year 2018: 739 million yen (-43.0%)
Basic earnings per
share

Diluted earnings per
share

Yen

First Quarter, Fiscal Year 2019
First Quarter, Fiscal Year 2018

Yen

28.40
16.89

―
―

(2) Consolidated financial position
Total assets

Net assets

Net assets to total assets

Millions of yen

Millions of yen%

145,319
146,588

86,01087,861

59.2
59.9

June 30, 2019
March 31, 2019
(Reference) Shareholders’ equity
June 30, 2019: 86,010 million yen
March 31, 2019: 87,861 million yen

Net assets per share
Yen

3,671.02
3,750.01

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

Fiscal Year 2018―
Fiscal Year 2019―
Fiscal Year 2019 (Forecast)(Note) Revision of dividend forecasts: None

End of 2Q

End of 3Q

Yen

Yen

Annual

Total
Yen

Yen

75.00

―

75.00

150.00

50.00

―

50.00

100.00Fiscal Year 2018

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

Fiscal Year 2018

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

Fiscal Year 2019

Interim dividend breakdown (forecast): 50 yen (ordinary)Fiscal Year 2019Year-end dividend breakdown (forecast): 50 yen (ordinary)3. Forecast of results for the fiscal year 2019 (April 1, 2019 to March 31, 2020)
Net sales
Millions of yen(% figures represent year-on-year increase or decrease)
Basic
Profit attributable toearnings per
Ordinary income
owners of parent
share

Operating income%

Millions of yen

Interim period
115,000 (10.8)
Full Fiscal Year
235,000(5.9)(Note) Revision of financial results forecasts: None

1,700
4,200

%

Millions of yen%

Millions of yen%(41.3)(19.8)

1,400
3,600

(13.6)
(9.4)

1,000
1,900

(5.4)
28.4

Yen

42.68
81.09

* Notes(1) Transfer of major subsidiaries during the scope of consolidation of these three months ended June 30, 2019 (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: Yes
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, 2019

25,000,000 shares

March 31, 2019

25,000,000 shares

June 30, 2019

1,570,508 shares

March 31, 2019

1,570,290 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 201923,429,679 sharesFirst Quarter,
Fiscal Year 2018

24,485,078 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(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 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 ............... 5
Consolidated Quarterly Statement of Income
Scope of Consolidation of this First Quarter .............................................................................................................. 5
Consolidated 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(Changes in Accounting Principles) ...................................................................................................................................... 7(Segment Information) .......................................................................................................................................................... 7-1-

1. Qualitative Information Regarding this Quarterly Statement(1) Qualitative Information Concerning Consolidated Operating Results1) Overview
The global economy was on a decelerating footing during this consolidated fiscal quarter (April 1 to June 30, 2019),
paced by factors such as trade friction between the United States and China. Affected by the downshift in the global
economy, Japan’s exports declined, causing the nation’s economy to lose momentum.
The electronics industry in which Ryosan conducts business was also impacted by the slowdown in the Chinese
economy. Demand remained lackluster, particularly in industrial machinery.
In the first quarter amid the market downturn described above, net sales declined to 57,943 million yen (down 8.8%
from the same period of the previous fiscal year). Operating income fell to 821 million yen (down 33.8%). Free fromthe foreign exchange losses that occurred in the previous fiscal year, ordinary income rose to 917 million yen (up48.8%). Profit attributable to owners of parent increased to 665 million yen (up 60.8%).
2) Business Segment Informationa. Semiconductors
Ryosan sells system LSIs, discrete semiconductors and memory, and develops system LSIs on a contract basis.
During the first quarter Ryosan was challenged by a slackening of business related to industrial machinery. Net
sales waned to 34,465 million yen (down 10.9% from the same period of the previous fiscal year), while operating
income fell to 414 million yen (down 28.4%).
b. Electronic Components
Ryosan sells electromechanical components, display devices and power supplies. Mitigating a favorable trend
up to the first half of the fiscal year 2018, sales of electronic components for consumers retreated in the consolidated
first quarter under review. Net sales declined to 18,741 million yen (down 4.7% from the same period of theprevious fiscal year), while operating income decreased to 555 million (down 19.6%).
c. Electronic Equipment
Ryosan sells systems equipment and facilities equipment. In this consolidated quarter, Ryosan suffered the lossof a large business but also handled products of high added value. Net sales were 4,736 million yen (down 9.0%
from the same period of the previous fiscal year), while operating income was 69 million yen (up 22.8%).
(2) Qualitative Information Concerning Consolidated Financial Position
As of the end of this first quarter, total assets decreased by 1,268 million yen compared with the end of the previous
fiscal year, to 145,319 million yen.
Also, net assets decreased by 1,851 million yen compared with the end of the previous fiscal year, to 86,010 million
yen, with the ratio of net assets to total assets being 59.2%.
(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions
There is no change in forecasts for the consolidated operating results (announced on May 14, 2019).

-2-2. Consolidated Quarterly Financial Statements and Main Notes(1) Consolidated Quarterly Balance Sheet(Millions of yen)
Fiscal Year Ended
March 31, 2019
(As of March 31, 2019)

First Quarter of the Fiscal
Year Ending March 31, 2020
(As of June 30, 2019)ASSETS
Current assets
Cash and deposits

14,58022,761

Notes and accounts receivable –trade62,10956,965Inventories

44,68042,177

Accounts receivable – other

7,621

6,003

Other

373

527

Allowance for doubtful accounts

(34)

(37)

129,330

128,397

Buildings and structures, net

3,090

3,011

Land

6,145

6,021

Leased assets, net

551

613

Other, net

146

145

9,934

9,792

963

960

Investment securities

4,043

3,776

Deferred tax assets

205

238

Other

2,221

2,260

Allowance for doubtful accounts

(109)

(106)

Total investments and other assets

6,360

6,169

17,25816,921

146,588

145,319

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, 2019
(As of March 31, 2019)

First Quarter of the Fiscal
Year Ending March 31, 2020
(As of June 30, 2019)

LIABILITIESCurrent liabilities
Accounts payable - trade

29,76030,643

Short-term loans payable

23,26821,193

173

235

Accounts payable - other

1,172

1,227

Accrued expenses

1,348

596

Income taxes payable

201

246

Provision for bonuses

-

401

260

2,257

56,18556,802

Lease obligations

439

437

Deferred tax liabilities

280

286

Net defined benefit liability

1,732

1,695

Asset retirement obligations

31

30

Other

57

57

2,541

2,507

58,72659,309

Capital stock

17,69017,690Capital surplus

19,114

19,114Retained earnings

55,57254,480Treasury shares(6,531)(6,531)

Total shareholders’ equity

85,84684,753

1,546

1,370

0

(0)

Foreign currency translation adjustment

495

(92)

Remeasurements of defined benefit plans

(26)

(22)

Total accumulated other comprehensive income

2,015

1,256

Total net assets

87,86186,010Total liabilities and net assets

146,588

145,319

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
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, 2019

First Quarter of the Fiscal YearEnding March 31, 2020

(April 1, 2018 to June 30, 2018)(April 1, 2019 to June 30, 2019)

63,56058,319
5,241
4,000
1,240

57,94353,323
4,620
3,798
821

5
48
7
59
120

10
38
0
183
14
37
285

153
10
574
7
744
616

183
6
189
917

0
0
0

1
1

617
203
413
413

8
8
910
245
665
665

Net sales
Cost of Sales
Gross Profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Rent income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Foreign exchange losses
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 valuation of investment securities
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 this First Quarter)(Millions of yen)First Quarter of the Fiscal Year
Ended March 31, 2019

First Quarter of the Fiscal YearEnding March 31, 2020

(April 1, 2018 to June 30, 2018)(April 1, 2019 to June 30, 2019)

413

665

75
0
251
(2)
325
739

(175)
(0)
(587)
4
(759)
(93)

739

(93)

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(Changes in Accounting Principles)
Adoption of IFRS 16, “Leases”
In overseas consolidated subsidiaries that have adopted the International Financial Reporting Standards(IFRS), Ryosan adopts IFRS 16, “Leases” (published January 13, 2016; hereinafter “IFRS 16”) beginning withthis consolidated first quarter.
With the application of IFRS 16, in principle all leases are recognized as the assets and liabilities of thelessee. In applying IFRS 16, Ryosan adopts the practice of recognizing the cumulative effect of application ofthis accounting standard on the starting date of application, in accordance with the transitional treatment.
The effect of application of this accounting standard on the consolidated quarterly financial statements is
negligible.
(Segment Information)
I. Information Concerning Sales and Income or Loss Amount by Reporting Segment
Consolidated first quarter of the fiscal year ended March 31, 2019
(April 1, 2018 to June 30, 2018)(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)

38,68819,667

5,204

63,560―63,560

―

―

―

―

―

―

38,688578

19,667
691

5,204
56

63,560
1,326

―
(86)

63,5601,240(Notes)1. The adjusted amount of minus 86 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, 2020
(April 1, 2019 to June 30, 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

Adjusted
amount(Note 1)

Amounts shown on
consolidated statement ofincome (Note 2)

34,46518,741

4,736

57,943―57,943

―

―

―

―

―

―

34,465414

18,741
555

4,736
69

57,943
1,039

―
(218)

57,943821(Notes)1. The adjusted amount of minus 218 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 2018, first quarter of the fiscal year ended March 31, 2019
(April 1, 2018 to June 30, 2018)(Millions of yen)

Japan

Asia

Other

36,22524,981

2,354

4,617

24

0

40,842
228

25,005
815

2,354
67

Eliminations
or corporate

Consolidated

63,560―63,5604,641(4,641)―

68,202
1,111(4,641)
129

63,560
1,204

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

Fiscal Year 2019, first quarter of the fiscal year ending March 31, 2020
(April 1, 2019 to June 30, 2020)(Millions of yen)

Eliminations
or corporate

Consolidated

57,943―57,943

4

5,120(5,120)

―

2,880
115

63,063708(5,120)113

57,943
821

Japan

Asia

Other

Total

31,612

23,455

2,875

5,054

60

36,667(59)

23,516651

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 2018, first quarter of the fiscal year ended March 31, 2019
(April 1, 2018 to June 30, 2018)(Millions of yen)Japan
Net sales
Ratio to consolidated net sales (%)

China

34,08053.6

15,831
24.9

Asia
11,275
17.8

Other
2,373
3.7

Consolidated
63,560100.0(Note) Net sales are on the basis of customer location and classified by country or region.

Fiscal Year 2019, first quarter of the fiscal year ending March 31, 2020
(April 1, 2019 to June 30, 2019)(Millions of yen)Japan
Net sales
Ratio to consolidated net sales (%)

China

30,33552.4

13,84523.9

Asia
10,846
18.7(Note) Net sales are on the basis of customer location and classified by country or region.

-8-

Other
2,915
5.0

Consolidated
57,943100.0