July 31, 2020

First Quarter Earnings Report for Fiscal Year 2020, Ending March 31, 2021
[Japanese Standards] (Consolidated)
Company name:Securities code:
Representative:

Ryosan Company, Limited
Stock listing: First Section, Tokyo Stock Exchange
8140
URL https://www.ryosan.co.jp
Kazuhiko Inaba, Representative Director, President
Masahide Nishiura, Director, Senior Executive Officer,Inquiries:
TEL: +81-3-3862-2591
General Manager, Finance and Accounting Headquarters
Scheduled filing date of quarterly earnings report:
August 13, 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 quarter of fiscal year 2020 (April 1, 2020 to June 30, 2020)(1) Consolidated operating results (Cumulative)(% change compared with the same period of the previous fiscal year (YoY))
Profit attributable toNet sales
Operating income
Ordinary income
owners of parent
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

43,508(24.9)

279(66.0)430(53.1)

484(27.2)

821(33.8)

917

48.8665

60.8

First Quarter, Fiscal Year 2020

First Quarter, Fiscal Year 201957,943(8.8)(Note) Comprehensive income
First Quarter, Fiscal Year 2020: 750 million yen (―%)
First Quarter, Fiscal Year 2019: (93) million yen (―%)
Basic earnings per
share

Diluted earnings per
share

Yen

First Quarter, Fiscal Year 2020
First Quarter, Fiscal Year 2019

Yen

20.66
28.40

――(2) Consolidated financial position
Total assets

Net assets

Net assets to total assets

Millions of yen

Millions of yen%

138,665
137,746

84,98384,935

61.3
61.7

June 30, 2020
March 31, 2020
(Reference) Shareholders’ equity
June 30, 2020: 84,983 million yen
March 31, 2020: 84,935 million yen

Net assets per shareYen

3,627.27
3,625.21

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

End of 2Q

Yen

Fiscal Year 2019―
Fiscal Year 2020―
Fiscal Year 2020 (Forecast)(Note) Revision of dividend forecasts: None

End of 3Q

Yen

50.00
―

The dividend forecast for fiscal year 2020 is not yet decided at this point.

Annual

Yen

―
―

―

TotalYen

Yen

30.00

80.00
―

3. Forecast of results for the fiscal year 2020 (April 1, 2020 to March 31, 2021)
Due to the ongoing COVID-19 pandemic, it is not possible at this time to calculate a reasonable forecast of business results. For this reason
the forecast of consolidated business results for fiscal year 2020 remains undetermined. When it becomes possible to disclose a reasonable
forecast of business results, Ryosan will promptly publish that forecast.

* Notes(1) Transfer of major subsidiaries during the scope of consolidation of these three months ended June 30, 2020 (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: None
2) Changes in items of accounting principles other than 1) above: None
3) Changes in accounting estimates: None
4) Restatements: None
(4) Number of shares issued and outstanding (common shares)
1. Total number of shares issued andoutstanding (including treasury shares) at theJune 30, 2020

25,000,000 shares

March 31, 2020

25,000,000 shares

June 30, 2020

1,570,983 shares

March 31, 2020

1,570,850 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 2020

23,429,084 sharesFirst Quarter,
Fiscal Year 201923,429,679 sharesThis quarterly consolidated earnings report is not subject to the quarterly review by certified public accountants or auditingcorporations.
Caution with respect to forward-looking statements
Due to the ongoing COVID-19 pandemic, it is not possible at this time to calculate a reasonable forecast of business results. For this reason
the forecast of consolidated business results for fiscal year 2020 remains undetermined. When it becomes possible to disclose a reasonable
forecast of business results, Ryosan will promptly publish that forecast.

○Table of contents of the appendix
1. Qualitative Information Regarding this Quarterly Statement ........................................................................................................... 2(1) Qualitative Information Concerning Consolidated Operating Results .................................................................................. 2(2) Qualitative Information Concerning Consolidated Financial Position .................................................................................. 2(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions .................................................. 2
2. Consolidated Quarterly Financial Statements and Main Notes ........................................................................................................ 3(1) Consolidated Quarterly Balance Sheet .................................................................................................................................. 3(2) Consolidated Quarterly Statement of Income and Consolidated Quarterly Statement of Comprehensive Income ............... 5Consolidated Quarterly Statement of Income
Scope of Consolidation of this First Quarter .............................................................................................................. 5Consolidated 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(Segment Information) .......................................................................................................................................................... 7-1-1. Qualitative Information Regarding this Quarterly Statement(1) Qualitative Information Concerning Consolidated Operating Results1) Overview
During the consolidated fiscal quarter under review (April 1 to June 30, 2020), the global economy was negativelyimpacted by the worldwide spread of COVID-19.
In Japan, the government issued a declaration of a state of emergency in April 2020. This declaration impacted theJapanese economy by restricting personal consumption and business activities. Japan’s economy was further batteredby deteriorating economies overseas.
In the electronics industry, which is Ryosan’s main field, and particularly in fields related to in-vehicle electricalequipment business, results were sluggish as the COVID-19 pandemic adversely affected demand as well as supplychains.
In the first quarter, amid the market deterioration described above, net sales declined to 43,508 million yen (down
24.9% from the same period of the previous fiscal year). Operating income fell to 279 million yen (down 66.0%),
despite counter measures for profitability enhancement that trimmed selling, general and administrative expenses.
Though benefiting from a decline in interest cost, which was enabled by reductions in inventory volume, engenderedby the counter measures for profitability enhancement mentioned above, ordinary income fell to 430 million yen(down 53.1%). Profit attributable to owners of parent, despite income from sale of investment securities, declined to484 million yen (down 27.2%).
2) Business Segment Informationa. Semiconductors
Ryosan sells system LSIs, discrete semiconductors and memory, and develops system LSIs on a contract basis.
During the consolidated first quarter under review, Ryosan was challenged by slackened results in the in-vehicle
electrical equipment sector. Net sales fell to 25,745 million yen (down 25.3% from the same period of the previous
fiscal year), while operating income shrank to 163 million yen (down 60.6%).
b. Electronic Components
Ryosan sells electromechanical components, display devices and power supplies. In the consolidated first quarter
under review, this segment was impacted by the downturn in the in-vehicle electrical equipment sector, in the same
way as for semiconductors. Net sales dropped to 14,860 million yen (down 20.7% from the same period of theprevious fiscal year) and operating income declined to 404 million (down 27.2%).
c. Electronic Equipment
Ryosan sells systems equipment and facilities equipment. In this consolidated first quarter, large projects for invehicle electrical equipment declined significantly. Net sales fell to 2,902 million yen (down 38.7% from the same
period of the previous fiscal year) and operating income shrank to 12 million yen (down 82.0%).
(2) Qualitative Information Concerning Consolidated Financial Position
As of June 30, 2020, total assets increased by 918 million yen compared with the end of the previous fiscal year,to 138,665 million yen.
Also, net assets increased by 47 million yen compared with the end of the previous fiscal year, to 84,983 million
yen, with the ratio of net assets to total assets being 61.3%.
(3) Qualitative Information Concerning Consolidated Forecast and Other Future Predictions
Due to the ongoing COVID-19 pandemic, it is not possible at this time to calculate a reasonable forecast ofbusiness results. For this reason the forecast of consolidated business results for fiscal year 2020 remains
undetermined. When it becomes possible to disclose a reasonable forecast of business results, Ryosan will promptly
publish that forecast.

-2-2. Consolidated Quarterly Financial Statements and Main Notes(1) Consolidated Quarterly Balance Sheet(Millions of yen)
Fiscal Year Ended
March 31, 2020
(As of March 31, 2020)

First Quarter of the Fiscal
Year Ending March 31, 2021
(As of June 30, 2020)

ASSETS
Current assets
Cash and deposits

24,501

23,574

Notes and accounts receivable –trade

53,68748,085Inventories

37,24344,610Accounts receivable – other

6,196

5,521

Other

322

1,281

Allowance for doubtful accounts

(152)

(246)

121,799

122,826

Buildings and structures, net

2,726

2,786

Land

5,758

5,653

Leased assets, net

545

492

Other, net

241

181

9,271

9,113

946

939

Investment securities

3,517

3,291

Deferred tax assets

340

314

Other

2,241

2,249

Allowance for doubtful accounts

(68)

(69)

Allowance for investment loss

(301)

-

Total investments and other assets

5,729

5,785

15,947

15,838

137,746

138,665

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 EndedMarch 31, 2020
(As of March 31, 2020)

First Quarter of the Fiscal
Year Ending March 31, 2021
(As of June 30, 2020)

LIABILITIESCurrent liabilities
Accounts payable - trade28,47528,910

Short-term loans payable

18,15819,658229

222

Accounts payable - other

2,005

1,117

Accrued expenses

1,228

505

Income taxes payable

454

282

Provision for bonuses-392

145

458

50,69751,548

Lease obligations

369

318

Deferred tax liabilities

38131

Net defined benefit liability

1,622

1,602

Asset retirement obligations

3027

Other52

52

2,1132,133

52,81053,681

Capital stock

17,69017,690Capital surplus

19,114

19,114Retained earnings

53,85753,639Treasury shares(6,532)(6,532)

Total shareholders’ equity

84,13083,911

1,158

1,276

00

Foreign currency translation adjustment

(300)

(149)

Remeasurements of defined benefit plans

(52)

(55)

Total accumulated other comprehensive income

805

1,072

Total net assets

84,93584,983

Total liabilities and net assets

137,746

138,665

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, 2020

First Quarter of the Fiscal YearEnding March 31, 2021

(April 1, 2019 to June 30, 2019)(April 1, 2020 to June 30, 2020)

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

43,50839,701
3,806
3,527
279

10380
183
1437
285

633
128
1342225

183
6189
917

66
2574430

11254
76
330

88910
245
665
665

11759
275
484
484

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
Miscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Compensation for customs duty
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Loss on valuation of investments in capital
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, 2020

First Quarter of the Fiscal YearEnding March 31, 2021

(April 1, 2019 to June 30, 2019)(April 1, 2020 to June 30, 2020)

665

484

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

118
0
151
(3)
266
750

(93)

750

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of parent-6-(3) Notes Regarding Consolidated Quarterly Financial Statements(Notes Regarding Going Concern)
None(Notes Regarding Substantial Changes in Shareholders’ Equity)
None(Segment Information)
I. Information Concerning Sales and Income or Loss Amount by Reporting Segment
Consolidated first quarter of the fiscal year ended 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
TotalSegment income (loss)

Reporting Segment
ElectronicElectronicComponents
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.

Consolidated first quarter of the fiscal year ending March 31, 2021
(April 1, 2020 to June 30, 2020)(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)

25,745

14,8602,902

43,508―43,508

―

―

――

―

―

25,745163

14,860
404

2,902
12

43,508
580

―
(300)

43,508279(Notes)1. The adjusted amount of minus 300 million yen represents corporate expenses (mainly general and administrative expenses)
which are not allocated to the reporting segment.
2. Segment income has been adjusted with operating income in consolidated quarterly statement of income.

-7-II. Information Concerning Sales and Income or Loss Amount by Sales Destination
Fiscal year 2019, first quarter of the fiscal year ended March 31, 2020
(April 1, 2019 to June 30, 2019)(Millions of yen)

Japan

Asia

Other

31,612

23,455

2,875

5,054

60

4

36,667(59)

23,516
651

2,880
115

Eliminations
or corporate

Consolidated

57,943―57,943

5,120(5,120)―

63,063708(5,120)113

57,943821

Total

Net sales
Sales to external customers
Internal sales or exchange between
segments
Total
Segment income(Notes)1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions covered:
Asia: Hong Kong, Thailand, China, South Korea, etc.
Other: United States, etc.

Fiscal year 2020, first quarter of the fiscal year ending March 31, 2021
(April 1, 2020 to June 30, 2021)(Millions of yen)

Eliminations
or corporate

Consolidated

43,508―43,50803,680(3,680)―899(44)47,189143(3,680)
135

43,508
279

Japan

Asia

Other

Total

25,986

16,622

899

3,553

127

29,540(20)16,749208

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, China, Thailand, South Korea, etc.
Other: United States, etc.

III. Information Concerning Sales by Region
Fiscal year 2019, first quarter of the fiscal year ended March 31, 2020
(April 1, 2019 to June 30, 2019)(Millions of yen)JapanNet sales
Ratio to consolidated net sales (%)

China

30,33552.4

13,84523.9

Asia
10,846
18.7

Other
2,915
5.0

Consolidated
57,943100.0(Note) Net sales are on the basis of customer location and classified by country or region.

Fiscal year 2020, first quarter of the fiscal year ending March 31, 2021
(April 1, 2020 to June 30, 2020)(Millions of yen)JapanNet sales
Ratio to consolidated net sales (%)

China

24,05955.3

12,250
28.2

Asia
6,205
14.3

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

-8-

Other
993
2.3

Consolidated
43,508100.0