Ryoyo Electro : Financial Review for the Second Quarter Ended (July 31, 2023)

August 31, 2023

Consolidated Financial Review

for the Second Quarter Ended July 31, 2023 ［Japanese standards］（Consolidated)

Company name:	RYOYO ELECTRO CORPORATION
Headquarters address:	12-22 Tsukiji 1-chome,Chuo-ku, Tokyo 104-8408 Japan
URL:	https://www.ryoyo.co.jp
Stock exchange listing:	Tokyo Stock Exchange Prime Section
Code number:	8068
Company representative:	Moritaka Nakamura, President & Chief Executive Officer
Inquiries:	Masayuki Takahashi, Executive General Manager,Administration Headquaters
	Tel: [phone]	E-mail: [e-mail]

Due	date	of	submitting of quarterly financial statement	: September 12, 2023
Due	date	of	starting delivery of dividends	: October 2, 2023
Supplementary materials	for	the quarterly financial results	: Yes
Investor	conference for	the	quarterly financial results	: Yes

Note: Figures are rounded down to the nearest million yen.

１．Financial highlights for the second quarter ended July 31, 2023（2/1/2023-7/31/2023）

（１）Consolidated operating results

Note: Percentages indicated changes from the same period of previous year.

	Net sales		Operating profit	Ordinary profit
Millions of yen	％	Millions of yen	％	Millions of yen	％
Six months ended 7/31/23	65,060	7.0	2,314	(7.9)	6,494	162.0
Six months ended 7/31/22	60,809	16.4	2,513	164.7	2,478	120.2
Note: Comprehensive income
Six months ended 7/31/23:	8,087	million yen	(163.8%)
Six months ended 7/31/22:	3,065	million yen	(161.0%)

		Profit attributable to	Net income per share	Fully diluted
			owners of parent	net income per share
			Millions of yen	％	Yen	Yen
Six months ended 7/31/23		5,751	223.0	284.75	284.33
Six months ended 7/31/22		1,780	114.5	88.31	88.17
（２）Consolidated financial position
	Total assets		Net assets	Equity ratio	Net assets per share
	Millions of yen	Millions of yen	％	Yen
As of 7/31/23	101,005		51,649	51.1	2,554.07
As of 1/31/23	88,409		44,725	50.6	2,213.66
(Reference) Equity
As of	7/31/23:	51,620 million yen
As of	1/31/23:	44,697 million yen

1

２．Dividends

	Three	Six	Nine	Year
	months	months	months
	ended
	ended	ended	ended
(Base date)	Yen	Yen	Yen	Yen
Year ended 1/31/23	－	50.00	－	60.00
Year ending 1/31/24	－	80.00	－	－
Year ending 1/31/24 (Estimate)	－	－	－	80.00

Note: Revision to dividend forecast for this period: None

３．Financial forecast for the year ending January 31,2024（2/1/2023-1/31/2024） Note: Percentages indicated changes from the same period of previous year.

Total

Yen 110.00 － 160.00

			Operating			Profit			Net income per
	Net sales	Ordinary profit	attributable to
	profit		share
						owners of parent
	Millions of yen	％	Millions of yen	％	Millions of yen	％	Millions of yen	％	Yen
Year ending	128,000	(1.5)	4,300	(8.4)	8,900	98.8	7,500	145.4	371.31
1/31/24
Note: Revisions to financial forecast for this period: None

2

４．Others

（1）Important changes in subsidiaries

(Change on specific subsidiaries with changes in scope of consolidation): None

Newly added: － Excluded: －

（2）Use of simplified accounting method and special accounting policy for the quarterly consolidated

financial reporting: None

（3）Changes in principles, procedures and method of presentation for the quarterly consolidated

financial statements
①	Changes in accounting policies: None
②	Other changes: None
③	Changes in accounting estimate: None
④	Restatement of revisions: None
（4）Number of shares outstanding (common shares)
①	Number of shares of common shares issued as of:
	(Including treasury shares)
	July	31,2023:	26,800,000	shares
	January 31,2023:	26,800,000	shares
②	Number of shares of treasury shares:
	July	31,2023:	6,588,877 shares
	January 31,2023:	6,608,536 shares
③	Average number of shares outstanding as of:
	July	31,2023:	20,198,812	shares
	July	31,2022:	20,164,242	shares

Indication regarding the implementation status of the quarterly review procedure

This Financial Review is not subject to audit procedure under the Financial Instruments and Exchange Act.

Caution on forecast for the year ending January 31,2024

Forecasts regarding future performance in these materials are based on information available to management at the time this report was prepared. Actual results may differ significantly from these statements for a number of reasons.

※ This financial review is only the translation of Japanese version.

3

Consolidated Balance Sheets

			(Millions of yen)
		As of	As of
		January 31, 2023	July 31, 2023
		Amount	Amount
（ Assets）
Current Assets
Cash and deposits		19,031	12,865
Notes and accounts receivable - trade, and contract assets	30,966	31,738
Electronically recorded monetary claims	- operating	3,886	2,786
Merchandise and finished goods		23,623	19,902
Work in process		174	316
Other		1,502	1,036
Allowance for doubtful accounts		(1)	(1)
Total current assets		79,183	68,645
Non-current assets
Property, plant and equipment		226	204
Intangible assets
Goodwill		471	439
Other		361	462
Total intangible assets		832	901
Investments and other assets
Investment securities		5,308	6,939
Shares of subsidiaries and associates		97	21,485
Deferred tax assets		110	76
Retirement benefit asset		1,589	1,633
Other		1,642	1,822
Allowance for doubtful accounts		(582)	(705)
Total investments and other assets		8,166	31,252
Total non-current assets		9,225	32,359
Total assets	88,409	101,005

4

Consolidated Balance Sheets

		(Millions of yen)
	As of	As of
	January 31, 2023	July 31, 2023
	Amount	Amount
（Liabilities）
Current liabilities
Notes and accounts payable - trade	13,366	14,187
Short-term borrowings	25,817	30,728
Income taxes payable	1,423	606
Accrued consumption taxes	143	511
Provision for bonuses	857	362
Other	1,048	1,256
Total current liabilities	42,657	47,653
Non-current liabilities
Deferred tax liabilities	603	1,307
Retirement benefit liability	316	309
Other	106	86
Total non-current liabilities	1,026	1,702
Total liabilities	43,683	49,355
（Net assets）
Shareholders' equity
Capital stock	13,672	13,672
Capital surplus	13,336	13,336
Retained earnings	32,000	36,538
Treasury shares	(17,068)	(17,018)
Total shareholders' equity	41,940	46,528
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,805	3,007
Deferred gains or losses on hedges	0	0
Foreign currency translation adjustment	1,124	2,253
Remeasurements of defined benefit plans	(173)	(169)
Total accumulated other comprehensive income	2,756	5,092
Share acquisition rights	28	28
Total net assets	44,725	51,649
Total liabilities and net assets	88,409	101,005

5