July 31, 2008

First-Quarter Consolidated Earnings Report for Fiscal 2008, Ending March 31, 2009
Company name: Ryosan Company, Limited
Securities code: 8140
Representative: Naoto Mimatsu, President
Inquiries: Harumitsu Seki
Managing Director and General Manager
Financing and Accounting Headquarters

Stock listing: First Section, Tokyo Stock Exchange(URL http://www.ryosan.co.jp)

TEL: +81-3-3862-2591

Scheduled filing date of quarterly earnings report: August 14, 2008

(Millions of yen rounded down)

1. Consolidated Operating Results for the First Quarter of Fiscal 2008
(April 1, 2008 to June 30, 2008)(1) Consolidated Operating Results (Cumulative)(% figures represent year-on-year increase or decrease)
Net Sales

Operating Income

Millions of yen％

First Quarter Fiscal 2008

62,991―First Quarter Fiscal 2007

68,972(8.6)

Net Income
per Share

Ordinary Income

Net Income％

Millions of yen

％

2,138

―

2,392

―

1,415

―

2,582

1.3

2,651

(3.6)

1,524

(0.5)

Millions of yen％

Millions of yen

Net Income per
Share after Dilution
Yen

Yen

First Quarter Fiscal 2008

39.96

—

First Quarter Fiscal 2007

41.80

—

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Net Assets per Share%Yen

Millions of yen

Millions of yen

June 30, 2008

171,391

119,01369.4

3,366.07

March 31, 2008
(Reference)
Shareholders’ equity:

174,022

118,91168.3

3,348.70

Jun. 30, 2008:
Mar. 31, 2008:

118,878 million yen
118,782 million yen

2. Dividends(Record Date)

Jun. 30, 2008

Fiscal 2007
Fiscal 2008
Fiscal 2008
(Forecast)

Dividends per Share
Dec. 31, 2008

Sep. 30, 2008

Mar. 31, 2009

Annual

Yen

Yen

Yen

Yen

Yen

—
—

40.00

—

40.00

80.00
—

40.00

—

40.00

80.00

Note: Revision to dividend forecast for the first quarter of the fiscal year ending March 31, 2009: No
3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending March 31, 2009
(April 1, 2008 to March 31, 2009) [Reference](% figures represent year-on-year increase or decrease)
Net SalesInterim Period
Full Fiscal Year

Operating Income

Ordinary Income

Net Income
per Share

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen136,000
275,000

―
(3.9)

4,700
9,800

―
(8.7)

5,200
10,600

―
(6.0)

3,000
6,300

―
(6.5)

85.18
180.15

Note: Revisions to consolidated operating forecasts for the first quarter of the fiscal year ending March 31,
2009: No-1-

4. Other(1) Changes in Important Subsidiaries during the Period (Changes in Special Subsidiaries Involving
Changes in the Scope of Consolidation: No(2) Application of the Simplified Accounting Method and Special Accounting Practices in the
Preparation of Quarterly Consolidated Financial Statements: Yes(3) Changes in Accounting Principles, Procedures and Presentation Methods in connection with the
Preparation of Quarterly Consolidated Financial Statements (Recorded under “Changes inImportant Items Considered Fundamental to the Preparation of Quarterly Consolidated Financial
Statements”)
1. Changes in accordance with revisions to accounting standards and related practices: Yes
2. Changes in items other than 1. above: No
Note: Please refer to “Qualitative Information / Financial Statements and Other” 4. Other on page
5 for details.
(4) Number of Shares Issued and Outstanding (Common Stock)
1. Total number of shares issued and outstanding (including treasury stock) as of theperiod-end:
Jun. 30, 2008 36,500,000 sharesMar. 31, 2008
36,500,000 shares
2. Total number of treasury stock as of the period-end:
Jun. 30, 2008
1,183,513 sharesMar. 31, 2008
1,028,717 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)First quarter fiscal 2008 35,428,223 shares First quarter fiscal 2007 36,472,256 shares
Cautionary Statement Concerning Operating Results Forecasts and Other Special Items[Regarding the use of operating results forecasts]
The aforementioned forecasts were made based on information available to management as of the date ofthis report. Actual results could differ significantly from forecasts due to a variety of factors.
Effective from the fiscal year ending March 31, 2009, Ryosan Company, Limited has applied the
Accounting Standard for Quarterly Financial Reporting Statement No. 12 issued by the AccountingStandards Board of Japan (ASBJ) on March 14, 2007 and the Guidance on Accounting Standard for
Quarterly Financial Reporting Guidance No. 14 issued by the ASBJ on March 14, 2007. Furthermore,quarterly consolidated financial statements have been prepared in accordance with the Regulation for
Quarterly Consolidated Financial Reporting.

-2-

[Qualitative Information / Financial Statements and Other]
1. Qualitative Information and Other Matters Concerning Consolidated Operating Results for theFirst Quarter of Fiscal 2008
(1) Overview
During the first quarter of fiscal 2008 (April 1, 2008 to June 30, 2008), downward pressure continued tomount on the global economy. As the impacts of the sub-prime loan crisis, resulting in a drop in theoperating results of certain major financial institutions, and other factors on the real economy became
increasingly evident the trend toward an economic downturn grew stronger particularly in the United States.
Exacerbating difficult operating conditions, fears of inflation also continued to mount, triggered by a sharp
rise in the prices of such natural resources as crude oil as well as general consumer goods including food.
Taking into consideration the aforementioned circumstances, concerns in connection with future economic
uncertainty grew stronger. In the electronics industry, in which Ryosan is principally engaged, results were
impacted by the slump in automobile sales in the Untied States. On a positive note, demand for such digitalaudio visual (AV) related products as flat screen televisions remained firm in relative terms.
Under this prevailing business environment, the Ryosan Group continued to push forward under theguidance of its seventh medium-term management plan, working diligently to promote a growth strategy
and to implement measures aimed at improving its earnings structure in an effort to lift its businessperformance. Despite these endeavors, the Group’s operating results were impacted by a drop in sales of
ASICs for camera modules, LCDs for digital still cameras and other products. Accounting for these factors,
net sales for the first quarter of the fiscal year ending March 31, 2009 amounted to ¥62,991 million, an
8.7% decline compared with the corresponding period of the previous fiscal year. From a profit perspective,
operating income fell 17.2% year on year to ¥2,138 million, ordinary income declined 9.8% to ¥2,392
million and net income decreased 7.1% compared with the corresponding period of the previous fiscal yearto ¥1,415 million. On this basis, the Ryosan Group recorded lower year-on-year revenues and earnings forthe period under review.
(2) An Overview of Operating Results by Business Segment
a. Semiconductors
In the Semiconductors segment, the Ryosan Group is engaged in the sale of memories, system LSIs anddiscrete semiconductors. The Group is also active in the development of system LSIs. In the first quarter ofthe fiscal year ending March 31, 2009, sales of system LSIs for car audio equipment, ASICs for camera
modules and other products declined. As a result, Semiconductor segment sales fell 4.2% compared withthe corresponding period of the previous fiscal year to ¥34,811 million. On the earnings front, operating
income dropped 19.3% year on year to ¥1,542 million.
b. Electronic components
In the Electronic Components segment, the Ryosan Group is engaged in the sale of display devices, power
supplies and mechanical components. During the period under review, sales of LCDs for digital stillcameras and for personal navigation devices (PNDs) decreased. Accounting for these factors, Electronic
Components segment sales declined 15.9% compared with the corresponding period of the previous fiscal
year to ¥20,822 million, while operating income fell 9.4% year on year to ¥905 million.
c. Electronic equipment
In the Electronic Equipment, the Ryosan Group markets systems equipment and facilities equipment.
Buffeted by a decline in sales of equipment for manufacturing magnetic heads and other products, segment
sales amounted to ¥5,342 million, a drop of 8.2% compared with the corresponding period of the previous
fiscal year. On a year-on-year basis, operating income also declined 13.9% to ¥155 million.

-3-

d. Ryosan products
In this segment, the Ryosan Group manufactures and markets heat sinks, which are devices that dissipate
the heat generated by semiconductors. During the first quarter of the fiscal year under review, sales of heatsinks used in measuring equipment as well as other products declined. As a result, segment sales edged
down 2.6% compared with the corresponding period of the previous fiscal year to ¥2,014 million. From a
profit perspective, on the other hand, operating income jumped 49.5% year on year to ¥241 million.
(3) An Overview of Operating Results by Geographic Region
a. JapanIn the first quarter of fiscal 2008, The Ryosan Group posted lower year-on-year sales of ASICs for camera
modules, LCDs for digital still cameras and other products in Japan. As a result, domestic sales decreased
8.4% compared with the corresponding period of the previous fiscal year to ¥45,905 million. On theearnings front, operating income also declined 19.8% year on year to ¥1,428 million.
b. Asia
During the period under review, sales of system LSIs for car audio equipment and other products declined
throughout Asia. Accounting for these factors, sales in the region dropped 8.8% compared with thecorresponding period of the previous fiscal year to ¥20,482 million. Operating income declined 3.5% year
on year to ¥552 million.
2. Qualitative Information and Other Matters Concerning Consolidated Financial Position for the
End of the First Quarter of Fiscal 2008
(1) An Overview of Financial Position
Total assets as of June 30, 2008 stood at ¥171,391 million, a decrease of ¥2,630 million compared with theend of the previous fiscal year.
Net assets amounted to ¥119,013 million as of the end of the first quarter of fiscal 2008, up ¥101 million
compared with March 31, 2008. As a result, the equity ratio (net assets to total assets) was 69.4%.
(2) An Overview of Cash Flows
Cash and Cash equivalents as of the end of the first quarter of the fiscal year ending March 31, 2009 stoodat ¥43, 423 million, an increase of ¥346 million compared with the end of the previous fiscal year.
(Cash flows from operating activities)
Cash flows provided by operating activities amounted to ¥1,529 million. The principal cash inflows wereincome before income taxes and minority interests of ¥2,283 million and decrease in accounts receivable of¥4,661 million. Major cash outflows during the first quarter of the fiscal year ending March 31, 2009 weredecrease in accounts payable totaling ¥2,456 million and income taxes paid of ¥1,876 million.
(Cash flows from investing activities)
Net cash used in investing activities for the period under review was ¥61 million. This reflected purchasesof property, plant and equipment.
(Cash flows from financing activities)
Net cash used in financing activities was ¥1,188 million. The principal cash outflow for the period underreview was cash dividends paid, which totaled ¥1,418 million.
3. Qualitative Information and Other Matters Concerning Consolidated Forecasts for the Fiscal
Year Ending March 31, 2009
The Ryosan Group has not revised its consolidated forecasts for the fiscal year ending March 31, 2009-4-

announced on May 12, 2008. Looking ahead, the Ryosan Group will promptly disclose any revisions to its
consolidated forecasts based on a careful assessment of trends in its operating results.
4. Other(1) Changes in Important Subsidiaries during the Period (Changes in Special Subsidiaries Involving
Changes in the Scope of Consolidation:
None.
(2) Application of the Simplified Accounting Method and Special Accounting Practices in the Preparationof Quarterly Consolidated Financial Statements:
The simplified accounting method is used in certain cases where the monetary effect is considerednegligible.
(3) Changes in Accounting Principles, Procedures and Presentation Methods in connection with the
Preparation of Quarterly Consolidated Financial Statements:
1. Effective from the first quarter of the fiscal year ending March 31, 2009, Ryosan Company,
Limited has applied the Accounting Standard for Quarterly Financial Reporting Statement No. 12
issued by the Accounting Standards Board of Japan (ASBJ) on March 14, 2007 and the Guidanceon Accounting Standard for Quarterly Financial Reporting Guidance No. 14 issued by the ASBJ on
March 14, 2007. Furthermore, quarterly consolidated financial statements have been prepared inaccordance with the Regulation for Quarterly Consolidated Financial Reporting.
2. In connection with inventories held for sale in the ordinary course of business, the Ryosan Grouphas historically adopted the lower of cost or market value determined by the moving averagemethod. Effective from the first quarter of the fiscal year ending March 31, 2009, the RyosanGroup has adopted ASBJ Statement No. 9 “Accounting Standard for the Measurement of
Inventories.” As a result, inventories are in principle stated at cost, cost being determined by themoving average method (with book values written down due to decreased profitability of balance
sheet asset amounts).
Taking into consideration this change in accounting standard, and in comparison with the previous
method, gross profit; operating income, and; ordinary income each decline by ¥122 million, while
income before income taxes and minority interests decreases by ¥235 million.
The impact of this change on business segments is identified in individual business segment
information.
3. From a consolidated account settlement perspective, the Ryosan Group has undertaken all essential
adjustments following adoption of the Practical Issues Task Force No. 18 “Practical Solution on
Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial
Statements” issued by the ASBJ on May 17, 2006 from the first quarter of the fiscal year ending
March 31, 2009.

-5-5. Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31,
2009(1) First Quarter Consolidated Balance Sheet(Millions of yen)First Quarter of the

Fiscal Year Ended March 31,

Fiscal Year Ending March 31,

2008

2009

(As of March 31, 2008)(As of June 30, 2008)ASSETS
Current assets:
Cash and deposits

25,431

25,087

Trade notes and accounts receivable

83,162

87,219Marketable securities

17,992

17,992Inventories

17,911

17,139Accrued income

2,701

2,287

Deferred tax assets

390

525

Other current assets

456

407

Allowance for doubtful accounts
Total current assets

(235)

(225)

147,811150,432

Fixed assets:
Property, plant and equipment:
Buildings and structures

5,338

5,402

Land

8,204

8,210

Other fixed assets

926

996

14,46914,610Goodwill

86

101

Other intangible fixed assets

611

585

Total intangible fixed assets

698

687

Investment securities

4,277

4,042

Deferred tax assets

2,115

2,265

Other

3,238

3,209

Allowance for doubtful accounts(1,134)(1,140)Allowance for loss on investments

(85)

(85)

Total property, plant and equipment
Intangible fixed assets:

Investments and other assets:

Total investments and other assets
Total fixed assets
Total assets

-6-

8,412

8,292

23,58023,590171,391

174,022５．（要約）四半期連結財務諸表(Millions of yen)First Quarter of the

Fiscal Year Ended March 31,

Fiscal Year Ending March 31,

2008

2009

(As of March 31, 2008)(As of June 30, 2008)
LIABILITIESCurrent liabilities:
Trade notes and accounts payable

41,460

Short-term bank loans

4,857

43,5194,090

Accrued income taxes

852

2,120

Reserve for bonuses

481―

Other current liabilities

2,207

2,916

Total current liabilities

49,85852,646

2,207

2,149

312

314

Long-term liabilities:
Employees’ retirement benefits
Other long-term liabilities
Total long-term liabilities
Total liabilities

2,519

2,463

52,37855,11017,690

NET ASSETS
Shareholders’ equity:
Common stock

17,690Additional paid-in capital

19,122

19,122Retained earnings

85,45485,457

Treasury stock(3,309)(2,940)Total shareholders’ equity

118,958

119,329

662

520

Valuation and conversions:
Net unrealized gain on other marketable securities
Gain (loss) on deferred hedges

4(6)Foreign currency translation adjustments(746)(1,061)

Total valuation and conversions

(80)

(547)

Minority interests
Total net assets
Total liabilities and net assets

-7-

135

129

119,013

118,911

171,391

174,022

(2) First Quarter Consolidated Statement of Income(Millions of yen)First Quarter of the
Fiscal Year Ending March 31, 2009
(April 1, 2008 to June 30, 2008)
Net sales

62,991

Cost of Sales

57,219Gross Profit

5,771

Selling, general and administrative expenses
Packaging and freight expenses

187

Directors’ remuneration

123

Employees’ salaries

914

Bonuses

351

Retirement benefit expenses

115

Employee benefits

193

Depreciation and amortization

143

Others1,604

Total selling, general and administrative expenses

3,633
2,138

Operating income
Non-operating income
Interest income

45

Dividend income

133Management consultation fee

37

Miscellaneous income

85

Total non-operating income

302

Non-operating expenses
Interest expense

36

Miscellaneous expenses

12

Total non-operating expenses

48
2,392

Ordinary income
Extraordinary gains
Gain on reversal of allowance for doubtful accounts

12

Total extraordinary gains

12Extraordinary losses
Loss on disposal of property, plant and equipment

4

Loss on devaluation of inventories

112

Loss on devaluation of investment securities

3

Total extraordinary losses

121
2,283

Income before income taxes and minority interests
Income taxes ― current

686

Income taxes ― deferred

178

Total income taxes

865

Minority interests

1
1,415

Net income-8-(3) First Quarter Consolidated Statement of Cash Flows(Millions of yen)First Quarter of the
Fiscal Year Ending March 31, 2009
(April 1, 2008 to June 30, 2008)
Cash flows from operating activities:
Income before income taxes and minority interests

2,283

Depreciation and amortization

188

Decrease in allowance for doubtful accounts(12)

Increase in employees’ retirement benefits

57

Interest an dividend income(179)Interest expense

36

Loss on sale and disposal of property, plant and equipment

4

Loss on devaluation of investment securities

3

Decrease in accounts receivable

4,661

Increase in inventories(701)

Decrease in accounts payable(2,456)

Other

(629)

Subtotal

3,256Interest and dividends received

184

Interest paid

(36)

Income taxes paid

(1,876)

Net cash provided by operating activities

1,529

Cash flows from investing activities:
Purchases of property, plant and equipment(61)

Net cash used in investing activities(61)

Cash flows from financing activities:
Increase in short-term borrowings, net

598

Repurchases of treasury stock(368)

Cash dividends paid

(1,418)Net cash used in financing activities(1,188)

Effect of foreign currency translation adjustments on cash and cash equivalents

66

Net increase in cash and cash equivalents

346

Cash and cash equivalents at the beginning of the period

43,077

Cash and cash equivalents at the end of the period

43,423-9-

Effective from the first quarter of the fiscal year ending March 31, 2009, Ryosan Company, Limited has
applied the Accounting Standard for Quarterly Financial Reporting Statement No. 12 issued by the
Accounting Standards Board of Japan (ASBJ) on March 14, 2007 and the Guidance on AccountingStandard for Quarterly Financial Reporting Guidance No. 14 issued by the ASBJ on March 14, 2007.
Furthermore, quarterly consolidated financial statements have been prepared in accordance with theRegulation for Quarterly Consolidated Financial Reporting.
(4) Notes Regarding Going Concern Assumptions
None.
(5) Segment Information[Segment Information by Business Type]For the First Quarter of the Fiscal Year Ending March 31, 2009 (April 1, 2008 to June 30, 2008)(Millions of yen)
Semiconductors

Electronic
Components

Electronic
Equipment

RyosanProducts

Total

34,811

20,822

5,342

2,014

―

―

―

Total Sales

34,811

20,822

Operating Expenses

33,269Operating Income

1,542

Eliminations
or Corporate

Consolidated

62,991―

62,991

―

―

―

―

5,342

2,014

62,991―

62,991

19,917

5,186

1,773

60,147706

60,853

905

155

241

2,844

(706)

2,138

Sales and Operating
IncomeSales:(1) Sales to External
Customers(2) Internal Sales
betweenSegments of
Exchange

Notes:
1. Methods of determining business segments and main products classified under each business segment(1) Business segments are classified on the basis of organization, product type and sales structure.
(2) Main products of each business segment:
Semiconductors: memories, system LSIs, discrete semiconductors
Electronic components: display devices, power supplies, electromechanical parts
Electronic equipment: systems equipment, facilities equipment
Ryosan products: heat sinks (semiconductor circuit elements)
2. Unallocated operating expenses included in “Eliminations or Corporate” totaled ¥706 million in thefirst quarter of the fiscal year ending March 31, 2009. These expenses consisted principally of Ryosan’s
information system investment and expenses related to the Company’s planning, administration andaccounting departments.
3. Effective from the first quarter of the fiscal year ending March 31, 2009, the Ryosan Group has
adopted ASBJ Statement No. 9 “Accounting Standard for the Measurement of Inventories” issued on
July 5, 2006. As a result, the method for measuring inventories has changed from the lower of cost or
market method to the cost method (with book values written down due to decreased profitability ofbalance sheet asset amounts).
On this basis, and in comparison with the previous method, operating income for the Semiconductor,
Electronic Components, Electronic Equipment and Ryosan Products segments decline by ¥97 million,¥18 million, ¥2 million and ¥3 million, respectively.

- 10 -

[Geographical Segment Information]
For the First Quarter of the Fiscal Year Ending March 31, 2009 (April 1, 2008 to June 30, 2008)(Millions of yen)
Japan

Asia

Total

Eliminations orConsolidated

Corporate

Sales and Operating
IncomeSales:(1) Sales toExternal
Customers(2) Internal Sales
betweenSegments
of Exchange

42,574

20,41762,991―

62,991

3,331

65

3,396

(3,396)―

Total Sales

45,905

20,482

66,387(3,396)62,991

Operating Expenses

44,476

19,92964,406(3,552)60,853Operating Income

1,428

552

1,981

156

2,138

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia: Hong Kong, Singapore, Taiwan, Malaysia and others
3. Operating expenses are allocated to each geographical segment.
4. Effective from the first quarter of the fiscal year ending March 31, 2009, the Ryosan Group has
adopted ASBJ Statement No. 9 “Accounting Standard for the Measurement of Inventories” issued on
July 5, 2006. As a result, the method for measuring inventories has changed from the lower of cost or
market method to the cost method (with book values written down due to decreased profitability ofbalance sheet asset amounts).
On this basis, and in comparison with the previous method, operating income in Japan and Asia declineby ¥120 million and ¥2 million, respectively[Overseas Sales]
For the First Quarter of the Fiscal Year Ending March 31, 2009 (April 1, 2008 to June 30, 2008)(Millions of yen)
Asia
Overseas Sales

Total
24,737

Consolidated Net Sales

24,73762,991

Ratio of Overseas Sales to Consolidated Net
Sales (%)

39.3

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

(6) Notes Regarding Substantial Changes in Shareholders’ Equity
None.

- 12 -

[Reference Material]
Financial Statements and Other Information for the First Quarter of the Fiscal Year Ended March 31,
2008(1) Summary of First Quarter Consolidated Statement of Income(Millions of yen)First Quarter of the
Fiscal Year Ended March 31, 2008
(April 1, 2007 to June 30, 2007)
I. Net sales

68,972

II. Cost of sales

62,701Gross profit

6,271

III. Selling, general and administrative expenses

3,689

Operating income

2,582

IV. Non-operating income

257

1. Interest and dividend income

97

2. Management consultation fee

40

3. Miscellaneous income

119

V. Non-operating expenses

188

1. Interest expense72

2. Foreign exchange loss

93

3. Miscellaneous expenses

22

Ordinary income

2,651

VI. Extraordinary gains

1

1. Gain on sale of property, plant and equipment

1VII. Extraordinary expenses

6

1. Loss on sale and disposal of property, plant and equipment

6

Income before income taxes and minority interests

2,645

Income taxes

1,125

Loss in equity of minority interests(4)

Net income

1,524- 13 -

(2) Summary of First Quarter Consolidated Statement of Cash Flows(Millions of yen)First Quarter of the
Fiscal Year Ended March 31, 2008
(April 1, 2007 to June 30, 2007)
I. Cash flows from operating activities:
Income before income taxes and minority interests

2,645

Depreciation and amortization

213

Increase in transfer to allowance for doubtful accounts

41

Increase in employees’ retirement benefits

21Interest and dividend income(97)Interest expense

72

Gain on sale of property, plant and equipment(1)

Loss on sale and disposal of property, plant and equipment

6

Decrease in notes and accounts receivable

6,021

Increase in inventories(1,358)Decrease in notes and accounts payable(2,447)

Other

(189)
Subtotal

4,929Interest and dividends received

109

Interest paid

(72)

Income taxes paid

(2,604)

Net cash provided by operating activities

2,362

II. Cash flows from investing activities:
Net decrease in time deposits

10

Purchases of property, plant and equipment(146)

Proceeds from sale of property, plant and equipment

4

Purchases of intangible fixed assets(2)

Increase in loans(236)

Proceeds from collection of loans

289

Other

11

Net cash used in investing activities(70)

III. Cash flows from financing activities:
Decrease in short-term borrowings, net(309)

Repurchases of treasury stock(1)

Cash dividends paid

(1,458)Net cash used in financing activities(1,769)IV. Effect of foreign currency translation adjustments on cash and cash equivalents

167

V. Net increase in cash and cash equivalents

690

VI. Cash and cash equivalents at the beginning of the period

40,880VII. Cash and cash equivalents at the end of the period

41,571- 14 -

(3) Segment Information[Segment Information by Business Type]For the First Quarter of the Fiscal Year Ended March 31, 2008 (April 1, 2007 to June 30, 2007)(Millions of yen)
Semiconductors

Electronic
Components

Electronic
Equipment

RyosanProducts

Total

36,33824,744

5,820

2,068

68,972―

68,972

―

―

―

―

―

―

―

Total Sales

36,33824,744

5,820

2,068

68,972―

68,972

Operating Expenses

34,427

23,746

5,639

1,907

65,720669

66,390Operating Income

1,911

998

180

161

3,251

(669)

2,582

Eliminations
or Corporate

Consolidated

Sales and Operating
IncomeSales:(1) Sales toExternal
Customers(2) Internal Sales
BetweenSegments of
Exchange

Notes:
1. Methods of determining business segments and main products classified under each business segment(1) Business segments are classified on the basis of organization, product type and sales structure.
(2) Main products of each business segment:
Semiconductors: memories, system LSIs, discrete semiconductors
Electronic components: display devices, power supplies, electromechanical parts
Electronic equipment: systems equipment, facilities equipment
Ryosan products: heat sinks (semiconductor circuit elements)
2. Unallocated operating expenses included in “Eliminations or Corporate” totaled ¥669 million in thefirst quarter of the fiscal year ended March 31, 2008. These expenses consisted principally of Ryosan’s
information system investment and expenses related to the Company’s planning, administration andaccounting departments.

- 15 -

[Geographical Segment Information]
For the First Quarter of the Fiscal Year Ended March 31, 2008 (April 1, 2007 to June 30, 2007)(Millions of yen)
Japan

Asia

Eliminations or

Total

Consolidated

Corporate

Sales and Operating
IncomeSales:(1) Sales toExternal
Customers(2) Internal Sales
betweenSegments
of Exchange

46,61522,357

68,972―

68,972

3,511

97

3,609

(3,609)―Total Sales

50,12722,45572,582(3,609)68,972

Operating Expenses

48,344

21,88270,227(3,837)

66,390Operating Income

1,782

572

2,354

227

2,582

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia: Hong Kong, Singapore, Taiwan, Malaysia and others
3. Operating expenses are allocated to each geographical segment.
[Overseas Sales]
For the First Quarter of the Fiscal Year Ended March 31, 2008 (April 1, 2007 to June 30, 2007)(Millions of yen)
Asia

Total

27,066

Overseas Sales

27,066
68,972

Consolidated Net Sales
Ratio of Overseas Sales to Consolidated Net
Sales (%)

39.2

39.2

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

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