January 28, 2020

Third 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:
February 14, 2020
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 2019 (April 1, 2019 to December 31, 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

First Three Quarters, Fiscal Year
174,441
(9.3)
2,970
2019
First Three Quarters, Fiscal Year
192,248
1.2
4,330
2018
(Note) Comprehensive income
First Three Quarters, Fiscal Year 2019: 1,868 million yen (5.0%)
First Three Quarters, Fiscal Year 2018: 1,778 million yen (-62.3%)%

Millions of yen%

Millions of yen%(31.4)

2,925

(7.3)

1,658

(24.6)(11.9)

3,155(35.3)

2,198(35.5)

Basic earnings per
share

Diluted earnings per
share

Yen

Yen

First Three Quarters, Fiscal Year
2019First Three Quarters, Fiscal Year
2018

70.80

―

91.69

―

(2) Consolidated financial position
Total assets

Net assets

Net assets to total assets

Millions of yen

Millions of yen%

December 31, 2019
144,336
March 31, 2019
146,588(Reference) Shareholders’ equity
December 31, 2019: 86,820 million yen
March 31, 2019: 87,861 million yen

86,82087,861

60.2
59.9

Net assets per share
Yen

3,705.62
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

75.00
50.00

Yen

―
―

Fiscal Year 2018

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

Fiscal Year 2018

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

Annual

Total
Yen

Yen

75.00

150.0050.00

100.00Fiscal Year 2019

Interim dividend breakdown: 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

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

4,200

%

Millions of yen%

Millions of yen%(19.8)

3,600

(9.4)

1,900

28.4

Yen

81.09

* Notes(1) Transfer of major subsidiaries during the scope of consolidation of these nine months ended December 31, 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 theperiod-end:

December 31,
2019

2. Total number of treasury shares at theDecember 31,

period-end:

2019

3. Average number of shares outstanding

First Threeduring the period (Cumulative total for the

Quarters, Fiscal

quarterly consolidated period)

Year 2019

25,000,000 shares

March 31, 2019

25,000,000 shares

1,570,644 shares

March 31, 2019

1,570,290 sharesFirst Three
23,429,528 shares

Quarters, Fiscal

23,981,920 sharesYear 2018

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(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 these First Three Quarters............................................................................................ 5
Consolidated 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(Changes in Accounting Principles) ...................................................................................................................................... 7(Segment Information) .......................................................................................................................................................... 7-1-

1. Qualitative Information Regarding this Quarterly Statement(1) Qualitative Information Concerning Consolidated Operating Results1) Overview
During this consolidated nine-month period (April 1 to December 31, 2019), the global economy continued on adecelerating keynote, impacted by trade friction between the United States and China. Influenced by the dip in theworld economy, the Japanese economy continued to lack vigor, as weakness exports lingered.
The electronics industry in which Ryosan conducts business also continued to have weak demand, particularly inindustrial equipment and automobiles.
Against this economic background, the business results for Ryosan in the cumulative third quarter under review
were as follows. Net sales declined to 174,441 million yen (down 9.3% from the same period of the previous fiscal
year) and operating income fell to 2,970 million yen (down 31.4%). Ordinary income declined to 2,925 million yen(down 7.3% YoY), impacted by conversion of a foreign exchange loss appropriated in the same period of the previous
fiscal year into a foreign-exchange gain, as a result of revaluation of foreign-currency-denominated liabilities. Profit
attributable to owners of parent declined to 1,658 million yen (down 24.6%), affected by factors such as impairment
loss resulting from a decision to reorganize logistics.
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 slump in Ryosan’s business serving industrial
equipment and in-vehicle electrical equipment, combined with a decrease in sales incentives, contributed to a
decline in net sales to 104,252 million yen (down 9.4% from the same period of the previous fiscal year) and a drop
in operating income to 1,293 million yen (down 40.0%).
b. Electronic Components
Ryosan sells electromechanical components, display devices and power supplies. During the consolidated ninemonth period under review, sales of value-added products for industrial equipment trended downward. As a result,net sales fell to 56,736 million yen (down 5.2% from the same period of the previous fiscal year) and operating
income dropped to 1,786 million yen (down 20.0%).
c. Electronic Equipment
Ryosan sells systems equipment and facilities equipment. In this consolidated nine-month period, large projects
for in-vehicle electrical equipment stagnated. As a result, net sales were 13,453 million yen (down 22.2% from thesame period of the previous fiscal year), while operating income was 262 million yen (down 4.2%).
(2) Qualitative Information Concerning Consolidated Financial Position
As of December 31, 2019, total assets decreased by 2,252 million yen compared with the end of the previous fiscal
year, to 144,336 million yen.
Also, net assets decreased by 1,041 million yen compared with the end of the previous fiscal year, to 86,820 million
yen, with the ratio of net assets to total assets being 60.2%.
(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)

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

14,58022,366

Notes and accounts receivable –trade62,10959,265Inventories

44,68038,925

Accounts receivable – other

7,621

6,158

Other

373

237

Allowance for doubtful accounts

(34)

(63)

129,330

126,889

Buildings and structures, net

3,090

2,765

Land

6,145

5,822

Leased assets, net

551

584

Other, net

146

183

9,934

9,355

963

977

Investment securities

4,043

4,481

Deferred tax assets

205

343

Other

2,221

2,395

Allowance for doubtful accounts

(109)

(105)

Total investments and other assets

6,360

7,114

17,25817,446

146,588

144,336

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)

Third Quarter of the Fiscal
Year Ending March 31, 2020
(As of December 31, 2019)

LIABILITIESCurrent liabilities
Accounts payable - trade

29,76031,696

Short-term loans payable

23,26819,645173

241

Accounts payable - other

1,172

1,297

Accrued expenses

1,348

600

Income taxes payable

201

369

Provision for bonuses

-

432

260

356

56,18554,640

Lease obligations

439

400

Deferred tax liabilities

280

710

Net defined benefit liability

1,732

1,678

Asset retirement obligations

31

30

Other

57

55

2,541

2,875

58,72657,515

Capital stock

17,69017,690Capital surplus

19,114

19,114Retained earnings

55,57254,322

Treasury shares(6,531)(6,532)

Total shareholders’ equity

85,846

84,595

1,546

1,850

0

0

Foreign currency translation adjustment

495

414

Remeasurements of defined benefit plans

(26)

(40)

Total accumulated other comprehensive income

2,015

2,224

Total net assets

87,861

86,820Total liabilities and net assets

146,588

144,336

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 these First Three Quarters)(Millions of yen)First Three Quarters of the
Fiscal Year Ended March 31,
2019First Three Quarters of the
Fiscal Year Ending March 31,
2020(April 1, 2018 to Dec. 31, 2018)(April 1, 2019 to Dec. 31, 2019)

Net sales
Cost of Sales
Gross Profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Rent income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity method
Miscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to owners of parent-5-

192,248
176,286
15,962
11,631
4,330

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

17
81
35
132
266

42
75
184
42
100
444

521
703
196
20
1,440
3,155

463
10
17
490
2,925

0
44
45

1
1

3,201
1,002
2,198
2,198

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

(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,
2019First Three Quarters of the
Fiscal Year Ending March 31,
2020(April 1, 2018 to Dec. 31, 2018)(April 1, 2019 to Dec. 31, 2019)

2,198

1,658

(680)
0
281
(22)
(420)
1,778

304
0
(81)
(13)
209
1,868

1,778

1,868

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 withthe first quarter of the current fiscal year.
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 three quarters of the fiscal year ended March 31, 2019
(April 1, 2018 to December 31, 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)

115,116

59,836

17,295

192,248―

192,248

―

―

―

―

―

―

115,1162,155

59,836
2,233

17,295273

192,248
4,662

―
(332)

192,248
4,330(Notes)1. The adjusted amount of minus 332 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, 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

Adjusted
amount(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)

174,4412,970(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.

-7-II. Information Concerning Sales and Income or Loss Amount by Sales Destination
Fiscal Year 2018, first three quarters of the fiscal year ended March 31, 2019
(April 1, 2018 to December 31, 2018)(Millions of yen)

Japan

Asia

108,239

76,9487,060

15,395195

0123,635
1,408

77,144
2,274

7,060
206

Eliminations
or corporate

Consolidated

192,248―

192,248

15,592(15,592)―

207,840
3,889(15,592)440

192,248
4,330

Other

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 2019, first three quarters of the fiscal year ending 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.

III. Information Concerning Sales by Region
Fiscal Year 2018, first three quarters of the fiscal year ended March 31, 2019
(April 1, 2018 to December 31, 2018)(Millions of yen)Japan
Net sales
Ratio to consolidated net sales (%)

China

102,24153.2

48,12325.0

Asia
34,768
18.1

Other
7,114
3.7

Consolidated
192,248100.0(Note) Net sales are on the basis of customer location and classified by country or region.

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

China

91,21452.3

42,23924.2

Asia
33,11219.0(Note) Net sales are on the basis of customer location and classified by country or region.

-8-

Other
7,874
4.5

Consolidated
174,441100.0