Results Briefing for
the Third Quarter (Feb.–Oct.) of the FY2023
November 30, 2023

Prime Market, Tokyo Stock Exchange (Ticker Code: 8068)

https://www.ryoyo.co.jp/en/

Copyright 2023 © Ryoyo Electro Corporation

Overview of the Third Quarterof the FY2023

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Copyright 2023 © Ryoyo Electro Corporation

Results for the first nine monthsof the fiscal year ending January 31, 2024
➢ Net sales declined, mainly due to decline in sales of semiconductors & devices impacted by anadjustment following the market boom in the previous fiscal year, although sales of ICT & solutionsincreased year on year.

➢ Gross profit was roughly the same level as the previous year, but operating profit fell due to an increase
in selling, general and administrative expenses.
Note: Selling, general and administrative expenses increased due to rise in labor costs, as well as therecording of alliance-related expenses etc.
➢ The share of profit of entities accounted for using the equity method was ¥4.88 billion recorded as nonoperating income, and ordinary profit and profit attributable to owners of parent increased year on year.
(Billion yen)

Nine Months Ended Nine Months Ended
Oct. 31, 2022
Oct. 31, 2022
ResultResult

YoY Change%

Net sales

96.3

95.6-0.7-0.7%

Gross profit

10.13

10.06

-0.07

-0.7%

(%)

10.5%

10.5%

Selling, general and administrative expenses

6.45

6.84

+0.39

+6.0%

Operating profit

3.68

3.22-0.45-12.4%

(%)

3.8%

3.4%

Ordinary profit

3.71

7.69

+3.98 +107.2%

Profit attributable to owners of parent

2.69

6.59

+3.90 +144.7%

2Copyright 2023 © Ryoyo Electro Corporation

Factors impacting sales change➢ Semiconductors & devices: Despite expansion in demand in digital consumer electronics driven mostlyby TVs, a relative decline followed the strong demand in the previous fiscal year amid continuing
component shortages in each sector.
➢ ICT & solutions: Sales of each item remained at a high level, except for some software projects thatended.
Semiconductors & devices(Net sales by application)

ICT & solutions(Net sales by product)

Year-on-year change: Down ¥2.2 billion

Year-on-year change: Up ¥1.5 billion

Digitalconsumerelectronics Communication+0.2+1.8

PC/server/network+2.7(Billion yen)

I/O
Embeddedequipment
devices+0.7& others+1.2

Vehicleinstallation-1.1
Industrials& others
-1.4

96.3

Software-3.1
PCs &peripherals-1.7

FY22 Ended
Nine Months
Q3累計
Oct. 31, 2022

95.6

FY23 Ended
Nine Months
Q3累計
Oct. 31, 2023

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Copyright 2023 © Ryoyo Electro Corporation

Supplement: Net sales by product(Billion yen)

Semiconductors & devices

Nine Months
FY23
Ended Oct.
31,
Q3累計
2023
Nine Months
FY22
Ended Oct.
31,
Q3累計
2022

ICT & solutions

56.8 (59.4%)

38.8 (40.6%)

-3.7%

+4.1%

59.0 (61.3%)

37.3 (38.7%)

Semiconductors & devices
Net sales by product

59.0
6.6

56.8
Analog & power
semiconductors

6.8

59.0

56.8
Communication

22.9
30.1

5.9
3.2
4.6
8.6

Logic
semiconductors

Memorysemiconductors
RF & opticalsemiconductors
LCDs
Other electronic
devices

NineFY22
Months
Q3累計
Ended
Oct. 31, 2022

Digitalconsumerelectronics

Net sales by product
38.8
37.3

5.1
8.3

PC/server/
network

11.0

5.4

I/O equipment

6.1

11.5

Software

8.4

15.4

13.4

12.1

Embedded
devices& others

NineFY23
Months
Q3累計
Ended
Oct. 31, 2023

NineFY22Months
Q3累計
Ended
Oct. 31, 2022

24.6

29.0
2.9

Vehicleinstallation

11.4

PCs &peripherals

4.4
2.5
3.1
11.0

NineFY23Months
Q3累計
Ended
Oct. 31, 2023

16.8

96.3

ICT & solutions

Net sales by application

4.9

95.6

Industrials &others

NineFY22Months
Q3累計
Ended
Oct. 31, 2022

41.8
9.8

NineFY23Months
Q3累計
Ended
Oct. 31, 2023

Copyright 2023 © Ryoyo Electro Corporation

Business Plan for the FY2023

5Copyright 2022 © Ryoyo Electro Corporation

Change to the accounting period

Subject to approval at the Extraordinary General Meeting of Shareholders scheduled to be held
on December 19, 2023, Ryoyo Electro will change its accounting period (fiscal year-end).

➢ Change to the fiscal year-end
Current

After thechange

January 31 each year

March 31 each year

➢ Consolidated period
YearMonthFiscal year-end

2022
123

4

5

6720238910 11 12FY2022 (fiscal year ending January 2023)

Group companies
in JapanGroup companies
outside Japan

12345

6720248910 11 1212

3

FY2023 (fiscal year ending March 2024)
14 months
15 months

FY2023 (the fiscal year ending March 31, 2024), the transitional period, will be an irregular accounting
period for which the consolidated period will be the period outlined in red in the figure above.
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Copyright 2023 © Ryoyo Electro Corporation

Annual targets
The full-year earnings forecasts have been revised in conjunction
with the change to the accounting period.
➢ There are no major changes from the initial plan in terms of the outlook for business trends.
Semiconductors & devices:
Impact of relative decline from the strong demand of the previous year remains
ICT & solutions:
While some businesses are coming to an end, others remain strong overall➢ Anticipate recording of management integration-related preparation expenses(Billion yen)

FY2023/1(12 months)
ResultFY2024/3(14 months)
Target(Reference)
FY2024/1(12 months)
Target before Revision

Gross profit

129.9
13.58

150.0
15.75

128.0
13.65

(%)

10.5%

10.5%

10.7%

Selling, general and administrative expenses
Operating profit

8.89
4.69

11.15
4.60

9.35
4.30

(%)

3.6%

3.1%

3.4%

Ordinary profit
Profit attributable to owners of parent

4.48
3.06

9.20
7.18

8.90
7.50ROE

7.0%

14.1%

15.6%

Net sales(Note) FY2023/1: Fiscal year ended January 2023; FY2024/1: Fiscal year ending January 2024; FY2024/3: Fiscal year ending March 2024

7Copyright 2023 © Ryoyo Electro Corporation

Shareholder returns➢ Dividend policy: Aim for a dividend on equity (DOE) of 5%.
May revision
Based on the outlook for record-high profit attributable to owners of parent, the company
raised its planned dividend in May (Q1 earnings release).
October revision
The company raised its planned dividend again in conjunction with the change to theaccounting period (12 ⇒ 14-month accounting period).
Dividend per Share (Yen)FY2024/3

Interim (Q2)

Year-End

Full Year

October revision

80100180

May revision

8080160

Initial plan

6060120

Result5060110

FY2024/1
FY2023/1

Expected indicators based on performance forecast and dividend forecast

FY2024/3(Note) FY2023/1: Fiscal year ended January 2023;

ROE

Dividend
Payout Ratio

DOE

14.1%

50.6%

7.1%

FY2024/1: Fiscal year ending January 2024

8FY2024/3: Fiscal year ending March 2024
Copyright 2023 © Ryoyo Electro Corporation

Convocation of Extraordinary General Meeting ofShareholders for the Management Integration
with Ryosan Company, Limited

9Copyright 2023 © Ryoyo Electro Corporation

Overview

Date & timeVenue

10:00am, Tuesday, December 19, 2023

Jiji Press Hall
Address: 5-15-8 Ginza, Chuo-ku, Tokyo

AgendaProposal 1
Approval of the Share Transfer Plan with Ryosan
Company, Limited
Proposal 2
Partial Amendments to Articles of Incorporation
Proposal 3
Partial Revision of the Share Remuneration Systemwith Transfer Restrictions for Directors
10Copyright 2023 © Ryoyo Electro Corporation

Summary of management integration◆ A joint share transfer whereby Ryoyo Electro and Ryosan will become wholly-owned
subsidiaries and the newly established joint holding company (Ryoyo Ryosan Holdings) will
become the wholly-owning parent company

Method of themanagementintegration

Share transferratio

Ryoyo Electro

Ryosan11.32◆ One common share of Ryoyo Ryosan Holdings will be allotted to one common share of Ryoyo
Electro◆ 1.32 common shares of Ryoyo Ryosan Holdings will be allotted to one common share ofRyosanGroup Structure after the management integration(from April 1, 2024)

Schedule of the management integration (planned)

Ryoyo Ryosan Holdings, Inc.
(Listed company)

Ryoyo Electro
Corporation

RyosanCompany, Limited(Delisted company)(Delisted company)

Oct.

31

Record date for the Extraordinary General
Meeting of Shareholders

Dec.

19

Date for the Extraordinary General Meetingof Shareholders

27

Last trading day at Tokyo Stock Exchange,
Inc. for Ryoyo Electro and Ryosan

28

Date of delisting from the Tokyo Stock
Exchange for Ryoyo Electro and Ryosan

1

Effective date of the management
integration (date of listing the shares ofRyoyo Ryosan Holdings)

2023

Mar.
2024

Ryoyo Electro
Other operatingcompanies

RyosanOther operatingcompanies

Apr.

11

Copyright 2023 © Ryoyo Electro CorporationOverview of the Joint Holding Company (Planned)
Trade name

Ryoyo Ryosan Holdings, Inc.

Location of the head office

2-3-5 Higashi-Kanda, Chiyoda-ku, Tokyo, 101-0031, Japan

Location of the headquarters

1-12-22 Tsukiji, Chuo-ku, Tokyo, 104-8408, Japan

Organizational structure

A company with an audit and supervisory committee

Representatives

Representative Director, President
Representative Director, Vice President

CapitalJPY 15 billion

Scheduled date of establishment

April 1, 2024

Fiscal year-end

March 31

Stock exchange on which
the company will be listed

Prime Market of the Tokyo Stock Exchange

12

Moritaka Nakamura
Kazuhiko Inaba

Copyright 2023 © Ryoyo Electro Corporation

About this report

NoteThe business results and forecasts for the future contained in thispresentation are based on certain assumptions deemed reasonable atthe time of release. Actual results may differ from the original forecasts
due to economic conditions and various other factors.

Contact
Public Relations Dept., Corporate Planning Div.
Ryoyo Electro Corporation
Tel: +81-3-3546-6331
E-mail: irmanager@ryoyo.co.jp

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Copyright 2023 © Ryoyo Electro Corporation