ANNUAL REVIEW 2023
Fiscal year ended January 31, 2023

Connect Everything.
With Technology. With Ideas.

About the RYOYO Group

About the RYOYO Group
VisionTo provide the best solutions for our customers’issues and problems in a faster and better
manner than anyone else.
Corporate Slogan

Action guideline

Connect Everything.
With Technology. With Ideas.

VALUE and PRIDE

End-to-end business domain covering the entire supply chain, from upstream to downstream

DeviceNetworkSemiconductors

5G/LPWA

Sensors

Wi-FiElectronic Devices

LAN/WAN

Only RYOYO

Platform
CloudOn-premises“Only RYOYO” indicates a high-value-added business, a business in which we offer uniquesolutions by adding to our wealth of products the value that only we can identify, drawing
on the solid relationships we have with our customers. We provide new value by clarifying
the issues our customers face and supporting them all the way through to a swift solution
by means of our unique technologies and services.

Semiconductors & Devices
In the constantly changing
semiconductor market, we have
evolved into a trusted business
partner with a long track-record ofachievements. Drawing on solid
relationships with the world’s
leading suppliers, we offer optimal
proposals to customers.

01

Ryoyo Electro Annual Review 2023

Strength#1

We propose solutions thatleverage the latest
information we gain byworking closely with theworld’s leading vendors.

#2

Beyond just selling individual
products, we propose optimal
solutions for customer andmarket needs by combining
multiple products and developing
original solutions.

#3

We actively seek out andsupply cutting-edge,
high-added-value products
from in and outside of Japan.

About the RYOYO Group

Ryoyo Electro Corporation was founded as a semiconductor distributor of Mitsubishi
Electric Corporation in 1961, at the dawn of the semiconductor industry. Since ourestablishment, we have expanded our business lines in tandem with the growth ofthe electronics industry, guided by a management philosophy of “Creating value in tune withthe times.” Today, as an electronics trading company engaged in both the Semiconductors& Devices and ICT & Solutions businesses, the Ryoyo Group will engage not only inthe traditional business centered on the sale of goods, but also promote business that helps
to solve issues by extending our focus to include our customers’ customers (end-users).
In doing so, our goal is to transform and realize our new image of a trading company thatcan become the No. 1 in customer satisfaction. We will continue to refine our unique added
value and provide it to even more customers.

Solution

Helping to Solve the Social
Issues Faced by Customers
We identify various problems and issues that affectour customers and their end-users, and then
combine the products we offer as anelectronics trading company with our own originaltechnologies to provide ideal solutions faster and in
a superior way than other companies.

IoT
AI
Business
Management Tools

ICT & Solutions
We are drawing on knowledge cultivated in
the Semiconductors & Devices and ICT &Solutions businesses not only to bring various
ICT products to market, but also to expand
the business by integrating consulting,deployment, maintenance, and operation
functions. We support the creation ofbusiness solutions and innovative businessmodels that reflect the needs not only of ourcustomers but also their end-users.

Strength#1

Our sector anddomain-specificspecialists can provide
broad product andtechnology solutions,from edge to cloud.

#2

We propose optimal
solutions by combining
the world’s leading
products and services
to solve thecustomer’s issues.

#3

We bring proven experienceand expertise to support
our customers’ IT life cycle(planning, development, operation).

Ryoyo Electro Annual Review 2023

02

To Our Shareholders

To Our Shareholders
Vision for Ryoyo Electro
Ryoyo Electro has a vision “To provide the best solutions forour customers’ issues and problems in a faster and better
manner than anyone else.” Electronics trading companies
operate at a low level of profitability, and their performance ishighly vulnerable to changes in the external environment.
Factors such as market stagnation, semiconductor supply
shortages, cataclysmic events like the pandemic, heightened
geopolitical risk, and trends in foreign exchange rates all havea major impact. In this context, the functions and roles
demanded of electronics trading companies are changing.
We see it as critical to move away from a conventional
business centered on product dependent on productcompetitiveness and toward an approach involving an
in-depth understanding of customer needs and the creationof new value to meet those needs. By fully leveraging therelationships we have cultivated with customers over many
years of history and on our products, solutions, and othermanagement resources, we are striving to realize our vision
for the Company by focusing on initiatives that help address
fundamental issues, with a view not only to our customers
but to their end-users as well.

Environment for Electronics Trading Companies
Suppliers(Electronic component, IT equipment manufacturers)

Customers(Manufacturers of assembled products, end-users)

Scale expansion through M&A, narrowing down of focus areas

COVID-19 giving impetus to digital transformation throughout society

Accelerated revision of distributor and commercial rights

Changing, diversifying customer needs
Major risk factors in recent years

Sluggishness in domestic market

Geopolitical risks

Semiconductor supply shortages

Impact of COVID-19
Exchange rates

Earnings structure with low profitability, highly vulnerable to changes in external environment
Electronics trading companies
Shift in functions and roles demanded
Dependence on
product
competitivenessBusiness model
centered on
product sales

Conventional

Current

In-depth
understanding ofcustomer needs

Creation of
new value

Creating a Winning Pattern
To guide us in achieving this vision, the Ryoyo Group has set out three core strategies in our current
three-year business plan: to expand and deepen customer engagement, to pursue uniqueness, and toincrease productivity. Since we engage in the Semiconductors & Devices and ICT & Solutions
business, our company has a broad network of contacts both upstream and downstream in the03

Ryoyo Electro Annual Review 2023

To Our Shareholders

supply chain for electronic devices. Armed with insights into market needs gained from end-users(downstream), we will seek to expand engagement with electronic device manufacturers (upstream),combining products, technologies, and services to offer unique solutions. We aim to build a new
business model that is resilient to changes in the environment by pursuing these three strategies
organically in concert, tapping into the distinctive features of our businesses. By doing so, we seek tobecome a key player in creating a business (information and value) cycle across the entire supply chain.
A Cyclical Model for BusinessContact points with customers
Manufacturers of assembled products, system integrators, etc.
Planning

DesignDevelopment

Purchase

Manufacturing

Contact points with end-users

Sale

Installation

Operation

Maintenance

RYOYO
Reinforce engagementwith customers

Previous businessmodel

Semiconductor products

Strategy1Strategy2Strategy3

Where market needs
are identified

ICT products

Services

Expand engagement with customers armed with information on market needs
Pursue uniquenessProduct, service combinations that meet market needs
Increase productivity

Technical services

Hardware, software

Original services

Sales productivity

Standardization

Business process reform

Establish framework to support Strategies 1 and 2

Remote work

Digital transformation

Alliance with Ryosan
We have been exploring investments and acquisitions for the purpose of acquiring the elemental
technologies that will lead to the formation of unique added value and for augmenting the functions of
the Group. We are also exploring alliances with a view to establishing a robust management base andcapturing further growth opportunities.
In this vein, we recently entered into an alliance with Ryosan Co., Ltd. to further expand thescope of our business. There is very little overlap between Ryoyo Electro and Ryosan in terms ofcustomer relationships, products, and solutions, which are key management resources for an electronics trading company. As such, we expect collaboration between our two companies to generatesignificant qualitative and quantitative synergies. Through close collaboration, we aim to realize a newimage of an electronics trading company that helps resolve the issues and problems facing customers
and the market as a whole.
Alliance with Ryosan
Ryoyo Electro
Business structure,
products handled

Information

Technology

Customer segments

RyosanAcceleration of new value
creation throughproduct-service combinations

Little overlap between
the two comapanies

Collaboration in existing
business areas(cross-selling, etc.)

Pursuit of qualitativesynergies

Build-up of synergies

Pursuit of quantitativesynergies
Ryoyo Electro Annual Review 2023

04

To Our Shareholders

To Our Shareholders

Human Resources Development
Pursuing the above strategies and forming alliances like the one with Ryosan alone are not enough toturn our vision into a reality and achieve sustainable corporate growth: Developing human resources
is also an indispensable element. In particular, we need personnel with the ability to think mattersthrough on their own, identify the essential issues involved, and come up with logical solutions. Naturally, this ability is essential in providing customers with high added value, but it is also useful in awide range of situations. To cultivate this ability in our employees, it is extremely important to enhance
the content of training while also determining the best allocation of human resources and fostering anenvironment in which each individual can play an active role.
In addition to human resources development, we are focusing on increasing productivity. By automating office work and paring down unnecessary meetings and preparation of materials, we areencouraging employees to adopt the mindset that their time should be devoted to customers.
*For more on human resources development, see the Special Interview on page 13.

Review of Fiscal Year Ended January 31, 2023 and Outlook
The electronics industry, in which the Ryoyo Group operates, saw ongoing brisk IT-related investment
by companies in digital transformation for the purpose of automation and labor saving as well as
investment aimed at transforming their business models. Nevertheless, the year was marked byconstant uncertainty about the outlook, fueled by soaring energy and raw materials costs stemmingfrom heightened geopolitical risks, mounting monetary tightening in various countries and rising prices
due to the yen’s depreciation, and disruptions to the supply chain due to shortages of semiconductors and other components.
In this context, the Ryoyo Group at the beginning of the fiscal year under review anticipated a drop in
net sales, mainly due to changes in the environment for large-scale projects. Ultimately, however, favorable
market conditions related to semiconductors and the yen’s depreciation served to boost earnings. Meanwhile, reforms we have implemented to date bore fruit, including growth in project volume in line with ourefforts to reinforce sales capabilities. Consequently, we revised the forecast upwards twice during the year.
Performance in the fiscal year under review was up year on year across the board: Net sales were¥129.9 billion, operating profit was ¥4.69 billion, ordinary profit was ¥4.47 billion, and profit attributable to owners of parent was ¥3.06 billion. We were also able to achieve the targets for the three-yearplan starting from the fiscal year ended January 31, 2023 well ahead of schedule. The operating
margin was 3.6% and ROE was 7.0%, both the highest levels in 21 years. However, given that theuptrend in performance was chiefly the result of factors in the external environment, we anticipate amore adverse business environment for the fiscal year ending January 31, 2024. Although we expect
to launch new projects for mobile devices and expand our business in industrial applications, theoutlook sees changes in the external environment, including a drop-off in elevated demand in thesemiconductor market, as well as factors specific to the Company, such as the completion of largescale projects in the ICT area. As a Group, we expect reforms and various measures we have implemented to date to bear fruit in the coming year, and will pursue both qualitative and quantitativesynergies through the alliance with Ryosan. As we do so, we will consider revising the targets of thethree-year plan as needed while capturing new growth opportunities.

05

Ryoyo Electro Annual Review 2023

To Our Shareholders

Assumptions of Fiscal Year Ending January 31, 2024 Forecast
Semiconductor products

Outlook forfiscal year ending
January 31, 2024

We anticipate a more
adverse businessenvironment due tochanges in external
factors and factors
specific to theCompany· Drop-off in elevateddemand in thesemiconductor market·C ontraction in foreignexchange gains· Termination oflarge-scale projects· Contribution from new products and commercial rights(communications, power, display devices, sensors, etc.)

Year when reforms,
various measures
implemented to datebear fruit· Business model integrating
a semiconductor, ICT, andservice cycle· Further strengthening of service business· Creation of unique last-mile
solutions (voice recognition,
IoT platforms, etc.)

ICT products· Expanding and deepening overseas business· Focus on medical area (support from manufacturing tokitting and installation)· Pursuit of businesssynergies with Ryosan

Three-Year Business Plan (Fiscal Year Ended January 2023-Fiscal Year Ending January 2025)
Present
Sole net sales, profit
decrease in the industry

Restructuring through management reforms

Some results of reforms

4.69(3.6%)

O perating profit (billion yen) (ratio)N et sales (billion yen)
92.2

0.25
(0.3%)
18.1(result)

93.8
1.26(1.3%)

19.1(result)

108.5

2.15
(2.0%)
20.1(result)

95.8
1.27(1.3%)

21.1(result)

Next stage

Seeking out new growth opportunities

112.1

3.60
(3.0%)

129.9

Initial forecast+
synergies

Reinforce, expand
Seek to add

3.30(3.0%)

120.0

110.0

24.1
(forecast)

25.1(end ofthree-year plan)

2.26(2.0%)
22.1(result)

23.1(result)

Sustainability-Related Initiatives
Ryoyo Electro is also focusing on sustainability initiatives,
believing that efforts to achieve sustainable economic
growth and address various social issues, including environmental issues, are essential to the sustained growthof the Company. Guided by this conviction, we haveidentified key issues (materiality) facing the Company. By
addressing these key issues, we will create sustained
value over the longer term. In each ESG area, we
extracted high-priority issues from the perspectives ofboth stakeholders and management. We also added
H—human resources—reflecting our belief that the valueof a trading company lies in its employees. Going forward, we will pursue sustainable management
centered on the key issues we have identified. See page 11 for details.
I ask for your continued support as we continue striving to provide value to all of our stakeholders.

Representative Director, President & Chief Executive Officer

Ryoyo Electro Annual Review 2023

06

Topics

TopicsStrategy 1

Expand andDeepen Customer
Engagement

Supporting digital transformation (DX) at an auto parts plantwith a framework and method unique to the Ryoyo GroupIn automating visual inspection for production at Aisin, a major auto parts manufacturer,
Ryoyo Electro collaborated with Group company StyleZ to roll out the system withouthalting the production line.
Many companies in the manufacturing sector are pursuing DX at their plants andproduction facilities, seeking to create smart factories. As part of its efforts to overcome
issues such as labor shortages and the passing on of skills, Aisin sought to use AI toautomate the visual inspection process checking for installation errors and missing
components on the production line at its plant.
In installing automation systems, it typically took two to three years to roll out inspection equipment while ensuring safety and avoiding interruptions to the production line.
Performing this on multiple production lines is not cost-effective. To shorten the timeneeded for installation, we prepared shared hardware and applications that even the
person in charge at the manufacturing site could roll out, and used an agile application
development framework, which starts by developing what is practicable and deploying
components on site as soon as they are ready for use. This also required the coordinatedmanagement of applications on the devices. However, this was outside Aisin’s area ofexpertise—which is where StyleZ’s knowledge and technical capabilities were put togreat use. By teaching Aisin its system development expertise, StyleZ supported
construction of the system, which in the manufacturing sector demands a high degree ofstability. In this way, we were able to roll out the system in a shorter period of time and at
a lower cost without interrupting production. Ryoyo Electro not only delivered products,
but was also able to play a key role in Aisin’s DX efforts going forward by envisioning an
ideal solution that conformed with Aisin’s needs.
Going forward, we will continue in this way to combine products and services as wework alongside customers to address issues in the areas of AI and IoT.
Development Team
Kubernetes

Rancher

A tool that distributes
application processing byfunction through containerization and manages theapp operating state.

Integrated tool that makes it
easier to manage multiple
Kubernetes clusters. A
catalog function makes it
easy to distribute developed
apps any number of times.

DockerTool for building container
environments.

At the Manufacturing Site
NVIDIA® Jetson Xavier™ NXSupercomputer module that uses AI to recognize images and automatically
perform visual inspections, instrument monitoring, and missing components
and other product inspections on the edge side. Also collects data.
Application
library
Container
Kubernetes
Docker07

Ryoyo Electro Annual Review 2023

Topics

Ryoyo Electro’s support framework to accelerate DX
Remote medical care, AI-based diagnosis, electronic medical records, and other aspects
of DX in the field of healthcare are moving forward, and dental care is no exception.
The ADMENIC DVP2 video recording and presentation system created by Carina
System, a developer of video-related systems, boasts a high share of the dental caremarket in Japan. In developing ADMENIC DVP for Cloud, a new cloud-based service thatallows users to view and edit video recorded by the system in treatment, Ryoyo Electro
provided multifaceted support for the roll-out of the Microsoft Azure cloud-based service
that is the platform for the service.
Cloud-based services often involve inflexible payment methods, such as having afixed billing cycle or only supporting payment by credit card. However, going throughRyoyo Electro as an intermediary enabled payments for the service to be bundled
together with other transactions, resulting in easier internal processing. Moreover, Ryoyo
Electro is well-versed in a broad range of information, from security updates to industry
trends and comparisons with competing products. Our ongoing support, which is sensitive even to such customer concerns, enabled the customer to concentrate on productdevelopment.
Users (dentists and dental hygienists) can now use ADMENIC DVP for Cloud toeasily view video data on a PC or tablet from other clinics, their homes, or other remotelocations. The system can be used to explain treatments to patients, for presentations at
academic conferences, and inresearch, thus contributing to theprovision of safe dental care andimproving the technical capabilities of dentists.
With this project, Ryoyo
Electro did more than simply
supporting the customer’s businessby identifying issues and providing
optimal solutions that took into
account operations after the
A dentist explains treatment to a patient using ADMENIC DVP2.
service was launched—we are also
The projected image is saved on a cloud platform via the ADMENIC
helping to build an easy-to-use IT
DVP for Cloud service. (Photo taken at an actual dental clinic inenvironment for end-users.
Japan [Natural Dental Office Hashimoto])

Ryoyo Electro Annual Review 2023

08

Topics

TopicsRyoyo Electro wins Best Distributor of the Year Award in partner
program with NVIDIA
Ryoyo Electro was given the Best Distributor of the Year award at the online NVIDIA AI
DAYS 2022 event hosted by NVIDIA. This award is given to the best primary distributors
among companies that are part of the NVIDIA Partner Network (NPN), a partner program
established by NVIDIA in Japan.
The award recognized Ryoyo Electro’s efforts to
expand and deepen customer engagement, in particular
our highly personal approach to both the healthcare
business, centered on the field of medical imaging, and the
manufacturing sector, as well as the robust support
provided by the many NVIDIA-dedicated engineers andsales representatives on our staff.
As a member of NPN, Ryoyo Electro will step up its
collaboration with other partner companies going forward.
Meanwhile, we will leverage our own experience and expertise to propose the optimal NVIDIA products for various
The trophy for Best
customers, offering support from a wide range of angles.
Distributor of the Year.

Strategy 2

PursueUniquenessRyoyo Electro’s unique voice recognition system
The Ryoyo Group is focusing on creating and developing high-value-added businesses
that combine products and services. One of our focuses is on voice recognition. With
this initiative, our pursuit of uniqueness includes the acquisition of patents, and we are
already seeing examples that have led to commercialization.
(1) Voice recognition system that can be used without a network even in noisy
environments
In recent years, voice recognition is finding increasing use at work sites such as in theconstruction and infrastructure development sectors, to make it more convenient forworkers to file work reports and control equipment. However, work sites that generate ahigh volume of noise make conversation difficult.
Moreover, since most voice recognition systems
are cloud-based, they are unusable at work sitesthat lack an internet environment. Ryoyo Electrodrew on voice recognition technology cultivatedover the years to address these issues, developing a voice recognition system that can
sharply distinguish and enhance spoken sound,enabling clear voice communication even in
The noise reduction device (80 x 130 x 30 mm)
noisy locations—all by simply plugging thecommercialized using the voice recognition
system into a smartphone.
system. It is used together with a headset.

09

Ryoyo Electro Annual Review 2023

Topics(2) Voice recognition remote control that can operate multiple home appliances without a
network connection
We developed a voice recognition remote control that can operate up to four home
appliances—lighting, TV, air conditioners, and fans—via a single unit, and brought it tomarket in collaboration with a lighting equipment manufacturer. This product also
harnesses expertise that we have cultivated over the years. Equipped with our unique
voice recognition technology, the remote control
achieves high responsiveness by means ofoffline operation.
At Ryoyo Electro, in approaching the realissues and problems of customers, we create
products that bring together our unique technological capabilities, informed by feedback on the
The voice recognition remote control (27 x 10 x
80 mm) is easy to use; a network connection isground and with a view to how the product will
not required.
be used.

Strategy 3

Increase
Productivity

Ryoyo Electro Workstyle Reforms
Ryoyo Electro is striving to increase productivity to support our strategies of seeking to
expand and deepen customer engagement and pursue uniqueness. Low labor productivity has become an issue in Japan in recent years. With a view to making reforms toworkstyles, we are focusing on increasing productivity centered around five themes:
sales productivity, business process reform, standardization, remote work, and DX that
supports all of these. In particular, to expand the time spent on sales activities, planningand proposals, and other operations that directly tie in with our primary purpose—whichis to provide value to customers—we have set specific key performance indicators andare promoting the standardization and automation of the sales flow. In the short term, weare automating office work using robotic process automation (RPA) and other tools. We
are also promoting the visualization of internal data as we prepare to step up the pace ofour digital transformation efforts. Going forward, by harnessing such visualized data, weplan to take a more strategic approach to customers and improve work efficiency as we
strive to further increase productivity.
Operating profit per employee

FY2022/1 (result)¥3.2

millionFY2025/1 (target)¥4.6

millionRyoyo Electro Annual Review 2023

10

Key Issues

Identifying Key Issues (Materiality)
Ryoyo Electro is pursuing initiatives to ensure sustainable management by identifying,addressing, and resolving the key issues facing the company. We have accordingly
identified key issues for the Ryoyo Group as shown on the right. Going forward, we will
extract areas that are a priority for achieving sustainable growth.

Process of Identifying Key Issues
Policy and Vision for the Company

We aim to be a company that addresses environmental and social issues and problems faster and in asuperior way than other companies through collaboration with our customers and other stakeholders.
We formulated the above statement in relation to our vision of“To provide the best solutions for our customers’ issues and problems in a faster and better manner than anyone else.”

Identifying key issues
based on the policy and Vision

Step 1

Step 2

Step 3A thorough-going review of disclosed
information to extract issues affecting
financial and non-financial aspects of
the Company

Determination of stakeholders and confirming
awareness of issues

Identification of key issues· Designating stakeholders as customers,
employees, and shareholders· Evaluating the relative importance of extracted
issues from the perspective of various
stakeholders and management

Challenges and Risks· S coring evaluation results based on impact,
identifying high-scoring issues as key issues

Key issues

Loss of commercial presence
Indemnification

Importance to stakeholders

Health and safety
Human rights

Natural disasters

Developing products that contribute to society
Pandemics
Country risk
Developing products with low environmental impact
Trading in products with low environmental impact
Trading in products that contribute to society

Disposing of inventory
Fairness, ethics

Information security
Quality and safety

Internal controls
In-house carbon reductions
Supplier management

Sports sponsorship

Infrastructure development
Strengthening sales capabilities
Unrecoverable debt

Business continuity

Exchange rate fluctuations

Investments

Donations to NPOs, NGOs

Shareholdings

Importance in management
Category

11

Ryoyo Electro Annual Review 2023

E nvironmentS ocietyG overnanceH uman resourcesB usiness risk

Key Issues

Key Issues
Environment

Addressing environmental issues(new technologies and concepts for the next generation)· Helping to reduce environmental impact caused by various activities of companies and individuals by providing unique semiconductors and IT services· Responding to climate change and maintaining, strengthening the business
continuity framework to deal with natural disasters

Society

Helping to solve social issues(addressing problems and fostering expectations and anticipation for the future)· Helping to solve customer problems related to social issues by providing
proprietary products· Offering security, safety, and fairness to customers and stakeholders throughour businessGovernance

Strengthening management and sales foundations(building organizational strength to achieve sustainable growth)· Reinforcing needed governance that will enable us to help resolve environmental
and social issues.

Human
Resources

Ensuring diversity of human resources and reforming working styles(investing in human capital to foster three aspects of our corporate culture*1)· Achieving sustainable growth by cultivating motivation and a sense of reward(contributing, collaborating, and congratulating) for every employee

Major Initiatives

Relevant SDGs

· Developing and tradingin products with low
environmental impact· Addressing climatechange issues· Developing and tradingin products that
contribute to society· Strengthening
information security· Strengthening quality
and safety· Developing infrastructure· Strengthening
management personnel· Strengthening sales
capabilities· Empowering women in
the workplace· Ensuring employee rights*1 Three aspects of our corporate culture: A culture that is uninhibited and open-minded, that produces results as a team, and (as a result) abounds with asense of contributing, collaborating, and congratulating.

Initiatives Basedon Key Issues

Environment:
measures based on TCFD recommendations
The Ryoyo Group recognizes that responding to climate change and other issues related tosustainability will not only mitigate risks but also tie in to earnings opportunities. Consequently, we are moving ahead with measures based on the TCFD recommendations.
The Sustainability Committee (convened twice a year) formulates basic policies and strategy
for the Group’s initiatives and promotes specific action plans, monitoring progress andreporting regularly to the Board of Directors. The committee also carries out scenario analysis
to gauge the risks and opportunities climate change poses to our business and, based on
the results, explores measures to make our business activities more resilient.

Use of human resources:
obtaining Kurumin certification and promoting work-life balance
On May 18, 2022, the Company acquired Kurumin certification, which is granted by the
Ministry of Health, Labour and Welfare in recognition of “childcare supportive companies”
based on the Act on Advancement of Measures to Support Raising Next-Generation
Children. We have added our own human resources component to the Company’s key
issues and are taking initiatives to enable employees to work in a healthy way whilebalancing work and their personal lives. We are also taking steps to create workplaces
where employees can continue working even during major life events
such as childbirth, child rearing, and the long-term care of adults.
Positioning work-life balance as a key management issue, we willcontinue to reform the HR system and make other efforts to enhancethe organizational infrastructure, seeking to foster workplaces where
employees reach their full potential and make active contributions.

Ryoyo Electro Annual Review 2023

12

Special Interview

SpecialInterview

How to increase the value of individuals
and create a robust organization

Representative Director,
President & Chief Executive Officer

General Incorporated Association
T League Director,
Assistant to the Chairman

Moritaka Nakamura

Yoshihito Miyazaki

Ryoyo Electro regards human capital as the foundation of corporate growth and seeks to foster
an appealing organization by means of training and reforms to the corporate culture. President
Nakamura spoke recently with Yoshihito Miyazaki, assistant chief director of Japan’s T. League
table tennis league, of which our company is an official partner. After competing in the Olympics,
Mr. Miyazaki went on to become coach of the Japan national team. The topic of the conversation
was team-building and developing leaders.

Nakamura: Mr. Miyazaki, you’ve been involved for many years in changing the face of Japanese table
tennis. Is there anything you have kept in mind when putting together the national team?
Miyazaki: Something I have always valued is encouraging personal growth. Firstof all, I teach athletes not only skills but also social norms like greetings and goodmanners. This helps to foster an environment where players can concentrate on
their practice, builds a sense of unity in the team, and eventually leads to results.
To become a world-class athlete, it is critical to have a first-rate mindset.
Nakamura: The same holds true for corporate management. When I joined
Ryoyo Electro, employees hardly ever greeted one another, there were no clear
goals, and there was a defensive environment that hampered people’s freedom.
The whole organization was worn out. So the first thing we set out to do tochange the environment was to establish three things: a vision of “To provide thebest solutions for our customers’ issues and problems in a faster and better
manner than anyone else,” an action guideline of “VALUE and PRIDE,” and three
behaviors that foster a sense of reward—contributing, collaborating, andcongratulating. This served to unify the outlook of our employees. We also
worked to ensure that these values took root across the organization and toencourage individual employees to change their behavior.

13

Ryoyo Electro Annual Review 2023

Special Interview

Miyazaki: To change behavior and get results, I feel the ability to think for oneself is also
important. If a coach gives players too many minute instructions during practice, they will forgetto think for themselves and just practice like they are told, and so won’t be able to perceive theirown strengths and shortcomings. The role of the coach is to trust the players and just stand backand observe, although this can be pretty hard at times. Occasionally, I go through videos of past
matches with the players and analyze the issues together, but I don’t give specific coaching
advice at those times. The reason is that I strongly believe it is the role of a leader to foster anenvironment and lay the groundwork for the individual to gain awareness. In building a strong
team, it is vital to develop leaders. Mr. Nakamura, what are your thoughts on raising up candidates for the next generation of management leaders?
Nakamura: That’s something I wrestle with every day. One of my main missions at the moment is
to groom the next generation of leaders in the company. In doing so, what I look for most is, as
you suggested, the ability to think logically. Without this, it is impossible to create proposals that
capture the heart of an issue or to resolve problems. Moreover, that kind of logical mindset will bean enormous advantage when a person is leading a team of members with diverse backgrounds
and ideas in dealing with adversity. A person who can’t harness the diversity of members won’t
be able to put together an optimal team, and will end up viewing human resources only in termsof head count. That does nothing to boost team productivity or motivation.
Another key quality of a leader is the mental toughness to carry out these tasks while
contending with various pressures. The only way to acquire that quality is to build up experiencein taking risks and taking responsibility for making decisions. The problem we face at the moment
is that our employees still lack adequate experience.
Miyazaki: I saw the importance of being mentally tough when I was asked to revamp table tennis
in Japan and set up a national team for elementary school students. Table tennis is a simple but
severe sport where you either win or lose a match. I found that, to compete on equal footing withthe world’s top players down the road, it was essential for players from a young age to experience going head-to-head with high-level opponents and putting themselves in demanding
competitive environments. Because mental toughness is a strength that canbe augmented by experience, I want players to gain a lot of experience inovercoming hardship. Putting together a team that makes the most of thestrengths of individuals who have grown through such experiences makes
the whole team stronger.
If the company makes a space where employees can develop mental
toughness and the ability to think logically in objectively perceiving themselves
and the context in which they are placed, they will be able to gain this kind of
valuable experience.
Nakamura: That’s exactly right. I think it is also crucial for corporate management to foster an environment in which employees can take on high-level challenges. To that end, as a manager, I am building a system that presents
members with issues that cannot easily be resolved, and then fairly evaluates
and rewards those who achieve results. By doing this, we can hone boththinking skills and mental toughness in our employees, which I am confident willlead to the sustainable growth of our company. Sports and management reallyhave a lot in common. Mr. Miyazaki, thank you very much for your time today.

Ryoyo Electro Annual Review 2023

14

Corporate GovernanceCorporate Governance
The Ryoyo Group has been working to enhance corporate governance in order toachieve its sustainable growth and create medium- to long-term corporate value.
We recognize enhancing corporate governance as an important task for
management. Therefore, in order to continue to guarantee the soundness,transparency, and effectiveness of management, as well as increase corporate value
and fulfill our responsibilities to society, we are striving to develop internal systems that
ensure the functionality of corporate governance.

Corporate
Governance
Highlights

InsideInside57%

Female25%

18%
Audit &
Supervisory
Board Members

Directors

Male/Female
ratio of Officers
OutsideOutside

43%

Male

75%

82%

Organizational structure of the Company

Company with Audit & Supervisory Board

Chairman of the Board of Directors

Outside Director

Directors

7 (including 3 outside Directors)

Audit & Supervisory Board Members

4 (including 3 outside Audit & Supervisory Board Members)

Independent officers

3 outside Directors and 3 outside Audit & Supervisory Board Members

Voluntarily established advisory committees for
the Board of Directors

Nomination and Compensation Committee

Structure of compensation for Directors

Fixed compensation (basic compensation)
Performance-based compensation (monetary)
Medium- to long-term performance-based compensation (restricted stock)

Skill Matrix
Area of expertise the Company expects of Directors in particularCorporate
management

Finance/accounting/capital policy

Legal affairs/riskmanagement

Human
resourcesdevelopment/
personnel
management

Sales/marketingTechnology

Overseasbusiness

DX

Moritaka Nakamura
Kiyoshi Waki
Osamu Sano
Atuyuki Ohashi
Shinya Takada
Masumi Shiraishi
Masashi Oba* The above indicates the skills and expertise that are particularly expected of each Director and is not an indication of all of their skills and expert knowledge.

15

Ryoyo Electro Annual Review 2023

Corporate GovernanceCorporate
Governance System
General Shareholders’ Meeting
Appointment/
Dismissal

2

Delegation of
authority

Appointment/
Dismissal

Audit &
Supervisory
Board

1

Audit by Audit &Supervisory
Board Members

Internal Auditing
Department

Board of Directors

	The Board of Directors, which consists of seven Directors, ofwhom three are outside Directors, is responsible for making
decisions as stipulated in laws, regulations, and the articles ofincorporation; making important decisions; and the Directors
mutually oversee their execution of operations.
		 In principle, the Board of Directors meets once a monthand met a total of 12 times during the fiscal year under review.

Audit & Supervisory Board

	The Company is a Company with an Audit & Supervisory
Board as defined by the Companies Act of Japan, whereby
Audit & Supervisory Board Members act independently of
Directors and oversee Directors’ execution of operations.
		 The Audit & Supervisory Board consists of four Audit &Supervisory Board Members, of whom three are outside
Audit & Supervisory Board Members.
		 In principle, the Audit & Supervisory Board meets once amonth and met a total of 12 times during the fiscal year
under review.
3

Appointment/Dismissal

Advice/Guidance

Organization for
Business Execution

Internal audit

2• Sustainability Committee• Compliance Committee

Executive Officers
Corporate
Attorneys

Nomination
and Compensation
Committee

4 Committees

ReportCooperate

1

ReportReport3

Representative
Directors

Order

Financial Auditor

Consultation

Board ofDirectors

Appointment/
Dismissal

ReportFinancial
AuditorAppointment/
Dismissal

Nomination and Compensation Committee	Aiming to further enhance our corporate governance bystrengthening the independence, objectivity, and accountabilityof the Board of Directors with regard to the nomination of
Directors and executive officers and related matters such ascompensation, we established the Nomination and Compensation Committee as an advisory body to the Board of Directors.
		 The Nomination and Compensation Committee must

include three or more Directors, the majority of whom must be
independent outside Directors; it currently consists of fivemembers, including three outside Directors (one of whom
serves as Chair), and two inside Directors, including the Representative Director		 The Committee met three times during the fiscal year underreview, deliberating and reporting to the Board on mattersrelated to: (1) the appointment, dismissal, and transfer of Directors and executive officers, and (2) individual compensation for
Directors and executive officers (fixed compensation, performance-based compensation (monetary), and restricted stockcompensation).
4

Other Voluntary Committees

	The Company has set up two voluntary committees chaired by
the President.

Sustainability Committee
	The committee pursues initiatives related to sustainability (environment, society, governance, etc.), including measures basedon the TCFD Recommendations, and periodically reports on
the status of activities to the Board of Directors.

Compliance Committee
	The committee manages and oversees compliance with the
Ryoyo Group Code of Conduct and other internal rules in atimely manner, and reports quarterly to the Board of Directors
on the status of business execution.

Ryoyo Electro Annual Review 2023

16

Corporate GovernanceCorporate Governance

List of Officers (As of April 26, 2023)
Board of Directors

Directors

Representative Director,
President & Chief Executive Officer

Director & Managing Executive Officer

Director & Managing Executive Officer

Director & Managing Executive Officer

Moritaka Nakamura

Kiyoshi Waki

Osamu Sano

Atuyuki Ohashi

Time in office: 5 years*12/12Time in office: 7 years*12/12· In charge of Corporate Planning Division· In charge of Internal Auditing Department· Nomination and Compensation
Committee Member· In charge of Corporate
Administration Division

Time in office: 1 year

*10/10· In charge of Strategic Technology
Development Division

Time in office: –· In charge of Semiconductor &Device Division· In charge of Solution Division· Nomination and Compensation
Committee Member

Outside Directors

Outside Director (Independent Officer)

Outside Director (Independent Officer)

Outside Director (Independent Officer)

Shinya Takada

Masumi Shiraishi

Masashi Oba

Time in office: 3 years

Time in office: 4 years

Time in office: 3 years*12/12· Chairman of the Board of Directors· Chairman of the Nomination andCompensation Committee*12/12· Nomination and Compensation
Committee Member*12/12· Nomination and Compensation
Committee Member

Audit & Supervisory Board

Audit & Supervisory
Board Member

Outside Audit & Supervisory
Board Members

Full-time Audit & Supervisory
Board Member

Outside Audit & Supervisory
Board Member (Independent Officer)

Outside Audit & Supervisory
Board Member (Independent Officer)

Outside Audit & Supervisory
Board Member (Independent Officer)

Hiroyuki Kanno

Ryoji Kimura

Kazumi Akiyama

Motomi Oi

Time in office: 3 years *12/12 **12/12

Time in office: 11 years *12/12 **12/12

Time in office: 7 years *12/12 **12/12

Time in office: 3 years *12/12 **12/12* Attendance at meetings of the Board of Directors** Attendance at meetings of the Board of Audit & Supervisory Board Members

17

Ryoyo Electro Annual Review 2023

Corporate GovernanceCriteria for the
Selection of
Outside Officers

In order to ensure the independence of the candidates it recommends for outside officer(outside Director and outside Audit & Supervisory Board Member), the Company has
formulated criteria for the selection of outside officers.
Please see the following website for more details
https://www.ryoyo.co.jp/en/csr

Compensation for
Directors and Audit& Supervisory
Board Members

Compensation for Directors and Audit & Supervisory Board Members
and Policy Regarding Decision on Calculation Method(i) Organization to Deliberate and Determine Compensation for Directors
	The Board of Directors consults the Nomination and Compensation Committee
regarding the policy on determining compensation, etc., for individual Directors, andthen makes a resolution on the policy after receiving the report from the committee.
		With regard to the compensation, etc., for individual Directors for the fiscal year
under review, the Board of Directors has confirmed that the policy on determining
compensation, etc., and the details of compensation, etc., determined conforms withthe abovementioned policy resolved by the Board of Directors and that the reportfrom the Nomination and Compensation Committee has been given due weight, andjudges that the compensation, etc., for individual Directors are in accordance with thedetermination policy.
(ii) Structure and Determining Method of Compensation for Directors(1) Compensation Policy	Our aim with Director compensation is to set compensation at a level suitable for attracting
highly qualified people who can help realize Ryoyo Electro’s Management Philosophy andimprove our business performance in line with our Management Policy, as well as giving
Directors an incentive to play an active role in enhancing our corporate value over the longer
term. Compensation for Directors who serve concurrently as executive officers includes
basic compensation, performance-based compensation (monetary), and stock compensation (restricted stock). Compensation for Directors who do not serve concurrently as executive officers comprises only basic compensation. Furthermore, individual compensation
depends on each Director’s respective job description and responsibilities based on thecompensation system.

(2)	Policy for Determining the Amount, Award Period, and Terms of Basic Compensation
for Individuals	Basic compensation is fixed monthly compensation paid in cash while the Director is in
office. For Directors who also serve as executive officers, the basic compensation amount isdetermined annually at a certain period, based on the Compensation Table for each rank,
and reflecting the previous year performance of the Company, the degree of contribution ofeach Director to the Company, and other factors. Compensation plans for outside Directors
not also serving as executive officers are determined annually at a certain period, taking into
account a range of factors, including Company performance, compensation levels at othercompanies, and the current social context.

Ryoyo Electro Annual Review 2023

18

Corporate GovernanceCorporate Governance(3)	Policy for Determining the Content of Performance Indicators, Amount, Calculation
Method, Award Period, and Terms of Performance-Based Compensation (Monetary)	Directors who serve concurrently as executive officers are paid performance-based compensation (monetary) in an amount determined according to the degree of achievement of target
values allocated and set according to duties for each of the following indicators: consolidated operating profit, operating profit of each business division, and consolidated net profit
for the applicable fiscal year. The compensation is paid at a certain time each year after theend of the applicable fiscal year.

(4)	Policy for Determining the Content, Amount, Calculation Method, Award Period, andTerms of Non-Monetary Compensation, Etc.
	The non-monetary compensation, etc., paid by the Company consists of restricted stockcompensation. Directors who serve concurrently as executive officers are granted restricted
stock at a certain time each year during their incumbency (restricted stock is common stockof the Company allocated to Directors who serve concurrently as executive officers basedon a restricted stock allocation agreement concluded with them, in which transfer restrictions stipulated in the agreement are applied for a period from the date of issuance of thestock until the date of retirement of the Director as a Director of the Company or otherposition stipulated by the Board of Directors). The number of shares of stock granted isdetermined based on the Compensation Table for each position.

(5)	Policy on Compensation Table	The Nomination and Compensation Committee determines the Compensation Table. Using
compensation amounts of companies listed on the Japanese stock market taken from theobjective compensation survey data of an outside specialist organization as a reference,
after comprehensively taking into consideration the Company’s performance and corporate
scale, social context, and other factors, the Committee makes relative comparisons andrevises the Table appropriately based on the Compensation Policy.

(6)	Policy for Determining the Ratio of Basic Compensation, Performance-Based
Compensation (Monetary), and Stock Compensation (Restricted Stock) to Individual
Director Compensation
	Compensation for Directors who serve concurrently as executive officers includes basic
compensation, performance-based compensation (monetary), and stock compensation(restricted stock), and the ratio of each type of compensation is set based on rank, duties,
and trends among other companies and so forth. As an approximate guide to the ratio ofcompensation by type, basic compensation comprises 70%, performance-based compensation (monetary) 10%, and stock compensation (restricted stock) 20%.

(7) Method of Determining Individual Director Compensation
	All Director compensation plans are determined by a resolution of the Board of Directors,
reflecting deliberation and reporting from the Nomination and Compensation Committee,
the majority of whose members are independent outside Directors.

19

Ryoyo Electro Annual Review 2023

Corporate Governance(iii) Total Compensation by Class of Directors and Audit & Supervisory Board
Members, Total Compensation by Type, and the Number of Applicable Individuals
Class of Directors andAudit & Supervisory Board Members
Directors
Of which, outside Directors
Audit & Supervisory Board Members
Of which, outside Audit & Supervisory
Board Members
Total
Of which, outside Directors andoutside Audit & Supervisory Board
Members

Analysis of Boardof Directors’
Effectiveness andResults of
Evaluation

Compensation by type (millions of yen)
Total
Restricted Non-monetarycompensation
Fixed
stock
compensation,(millions of yen) compensationcompensationetc.

Number ofapplicable
individuals

230

161

33

35

10

38

38

-

-

4

36

36

-

-

4

21

21

-

-

3

266

197

33

35

14

60

60

-

-

7

We conduct an annual self-evaluation to gauge the effectiveness of our Board of Directors. Issues extracted from the most recent survey included the raising up of successors,
and the exchange of opinions between outside officers and executives. Having confirmed
the composition and administration of Board meetings, corporate ethics and risk management, performance monitoring and the evaluation and compensation of management,
and dialogue with shareholders, among other factors, we confirmed that the effectiveness of the Company’s Board of Directors is generally evaluated as being safeguarded.
The Board of Directors will continue to discuss these suggestions as we strive toimprove the Board’s effectiveness to help build an optimal corporate governance structure.

Internal Control
Systems

The following are our basic principles for establishing internal control systems. These
principles help us maintain systems for sound internal control.
Content of Policy(1) S ystem for ensuring that the execution of duties by Group Directors and employees is incompliance with all laws, regulations, and the articles of incorporation(2) S ystem for the storage and management of information related to the execution of duties
by Directors(3) Rules and other systems for containing the risk of damages to the Group(4) S ystem for ensuring the efficient execution of duties by Group Directors(5) System for ensuring the appropriateness of operations undertaken by the corporate groupconsisting of Ryoyo Electro and its subsidiaries and for facilitating reporting to the Company
with regard to the execution of duties by directors and other individuals at subsidiaries(6) Items concerning employees requested by the Audit & Supervisory Board Members to serveas assistants, the independence of these employees from Directors, and ensuring theeffectiveness of the orders issued to such employees by Audit & Supervisory Board Members(7) S ystem concerning reports submitted by Directors and employees of the Company and by

Ryoyo Electro Annual Review 2023

20

Corporate GovernanceCorporate GovernanceDirectors, Audit & Supervisory Board Members, and employees of subsidiaries to the Audit& Supervisory Board Members of the Company; other systems concerning reports
submitted to the Audit & Supervisory Board Members; and systems for ensuring that individuals issuing such reports do not suffer disadvantageous treatment due to reporting(8) Items related to policies concerning the procedures through which Audit & Supervisory
Board Members may receive reimbursement, prior to or after the fact, for expenses
incurred during the execution of their duties as well as the treatment of other expenses andliabilities incurred as part of the execution of duties(9) O ther systems for ensuring effective auditing by the Audit & Supervisory Board Members
Details about our internal control system are posted on the company website.
https://www.ryoyo.co.jp/en/csr/

Policy for
Proactive
Communication
with Shareholders

The Company endeavors to ensure that disclosure of management information isconducted accurately, impartially, and promptly. In addition, we recognize that facilitating mutual understanding through proactive communication with shareholders
and incorporating feedback from shareholders into management decision-making
are crucial to the Company’s ongoing growth and to the medium- to long-term
improvement of corporate value. Accordingly, the following provisions have been
put in place to support proactive communications activities.
(1) The Director in charge of the Corporate Planning Division oversees shareholder
communications.
(2) The Public Relations Department of the Corporate Planning Division functions as a venue
for shareholder communications, while preparations for such communications are carriedout jointly by the Corporate Planning, General Affairs, and Accounting departments.
(3) E xplanatory forums are held for institutional investors and analysts at which we report onand explain current business conditions and the future direction of the Company.
(4) S ystems are in place to ensure that feedback received through shareholder communications activities is shared with management in a timely manner.
(5) In-house workshops regarding insider information are held and other steps are taken to
ensure the appropriate management of insider information.
Note: The Company strives to ensure timely and appropriate disclosure of management
information through its corporate website and other venues.
https://www.ryoyo.co.jp/en21

Ryoyo Electro Annual Review 2023

Corporate GovernanceRisk Management
Systems

Risks that may affect our operations include those related to compliance, the environment, disasters, information security, product quality, foreign exchange rates, and financial reporting. Each department maintains effective risk management systems managed
by employees who are responsible for risk management. In the event that any risk
occurs, these employees will guide their department in responding quickly and effectively
to those risks in order to minimize damages.
Description of risk

Risk mitigation measures

In principle, the term of distributor and principal distributor contracts signedwith suppliers is one year. There is a risk that commercial rights will be lost if
such contracts are either not renewed or are cancelled mid-term in the eventthe supplier’s business performance worsens, its policies change, or a corporate reorganization occurs, etc., or there are revisions to distribution channels.

The Ryoyo Group strives not only to maintain and expand its existing business,but also to develop new business models and develop new business drivers.
The Ryoyo Group aims to be a trading company that offers added value withunique strengths as a solution provider by offering support ranging from edge
to cloud computing.

The Ryoyo Group may invest in its business partners with the aim of future
growth. However, there is a risk it will be necessary to record an impairment
loss on such investments as the business performance of a company invested
in may differ significantly from its performance at the time of the investment.

When making an investment, the Ryoyo Group carefully considers the financial
position of the company to be invested in, the feasibility of its business plan,
investment returns, and other factors, and the Board of Directors deliberates
on the investment. In addition, the financial position and progress of thebusiness of the company invested in is monitored regularly after investment.

The Ryoyo Group maintains a certain level of inventory to ensure stable supplyof products to customers, which is the key function of a trading company.
However, there is a risk of disposal of inventories because of customer demandfalling below our initial expectations due to market fluctuations or othercircumstances.

The Ryoyo Group works to maintain appropriate inventory levels and prevent
slow moving inventories by collecting information regarding demand forecasts
for customers and supply conditions at suppliers. We have also introduced avaluation loss system to assess the future salability of inventories, and we work
to mitigate losses in the event of disposal of inventories.

There is a risk that the Ryoyo Group will be subject to claims, etc., from entities
with which contracts have been concluded or other third parties in the eventthat the Group is found liable for defects with products it handles or is involved
in litigation related to intellectual property rights.

The Ryoyo Group has established the Quality Assurance Department and theLegal Affairs Department and constantly makes efforts to improve the quality
and reliability of the products it handles and to avoid infringing intellectual
property rights. When suppliers or contractors are involved, the Group strives toreduce indemnification risk using written contracts.

Foreign exchange
risk

The Ryoyo Group undertakes foreign currency denominated transactions,
including importing and exporting. There is a risk that sales and cost of sales
will fluctuate due to the impact of foreign exchange rates, and that non-operating income and expenses will be incurred at the time of settlement ofreceivables and payables or as of the closing date.

The Ryoyo Group works to reduce the impact of foreign exchange rate fluctuations utilizing forward exchange contracts and other means.

Collection of
accounts
receivable

The Ryoyo Group provides credit in its transactions with customers in Japanand overseas. There is a risk that difficulties may arise with respect to thecollection of accounts receivable due to a rapid deterioration in management orbankruptcy of a customer.

The Ryoyo Group sets credit limits for each customer according to their publiccredibility and financial condition and undertakes transactions within thoselimits. Depending on the degree of risk, the Group also works to minimize risk
for collection of accounts receivable through factoring and other means.

Shareholding risk

The Ryoyo Group owns the shares of specific business partners to further
strengthen business alliances and maintain and strengthen stable business
relations. There is a risk that valuation loss may be recorded in the future due
to a decline of the stock market or poor business performance of the companies in which the Ryoyo Group has purchased stocks.

With regard to listed stockholdings, the Ryoyo Group verifies the appropriateness of continuing to hold stocks based on qualitative judgements including
non-financial information, in addition to quantitative judgements based on the
short-term business performance and stock price, and reports the results to
the Board of Directors.

Natural disasters
and infectious
diseases

There is a risk that the Group’s business activities will be impacted in the eventof a halting of business operations or the disruption of supply chains due to anatural disaster, such as an earthquake, windstorm, flood, fire, or eruption, oran outbreak of an infectious disease such as COVID-19 in the countries orregions in which the Ryoyo Group conducts business operations.

The Ryoyo Group has established a disaster prevention taskforce headed by the
President & CEO with systems for mitigating the impact of various disasters andinfectious diseases which are expected to have a major impact. With the spreadof COVID-19, the Group implemented infection control measures including
promotion of telecommuting, the wearing of masks, and thorough handwashing.

Country-based
risks

There is a risk that the Group’s business activities could be affected in theevent of changes in the political, economic, or social environment, revisions tolaws and taxation systems, or the outbreak of social disorder due to such
events as terrorism or war in the countries or regions where the Ryoyo Groupis engaged in business.

The Ryoyo Group regularly obtains information on overseas business risk fromlocal experts and has established systems for responding appropriately whenrisks arise.

Loss ofcommercial
rightsInvestment
risk

Disposal of
inventories

Indemnification
risk

Ryoyo Electro Annual Review 2023

22

Financial Review

Consolidated Financial Highlights
Ryoyo Electro Corporation and Consolidated Subsidiaries
For the years ended January 31, 2023, 2022, 2021, 2020, and 2019

Thousands of
U.S. dollars*Millions of yen
2022.12023.12021.12020.1

2019.12023.1For the YearNet sales¥

129,912¥

112,099¥

95,792¥

108,538¥

93,799$995,723

Gross profit

13,583

10,732

9,194

10,361

8,925

104,114Selling, general and administrative
expenses

8,889

8,474

7,927

8,206

7,667

68,137

Operating profit

4,693

2,258

1,266

2,154

1,257

35,977

Profit attributable to owners of parent

3,056

1,873

806

1,303

1,020

23,426

Free cash flows(2,403)(5,535)

13,434697

1,132(18,420)

At Year-End
Total assets¥

Total net assets

88,409¥72,652¥

59,33642,30944,725¥37,992

78,117¥75,53862,135$62,208

677,620
342,804

Per Share of Common Stock (Yen/U.S.
dollars)
Net income¥

151.46¥103.94

¥

35.19

¥

53.06

¥

41.62

$

1.16

Total net assets

2,213.66

2,130.47

2,188.90

2,524.47

2,531.90

16.97

Cash dividends

110.00120.00180.00

80.00

60.00

0.84

Ratios (%)
Gross profit margin

10.5

9.6

9.6

9.5

9.5

Operating margin

3.6

2.0

1.3

2.0

1.3

Net income margin

2.4

1.7

0.8

1.2

1.1

Equity ratio

50.6

58.2

64.0

79.4

82.2

Return on equity

7.0

4.7

1.6

2.1

1.6

20,191,464

19,844,823

17,336,633

24,572,801

24,521,409

714

715

711

561

526

Other Information
Number of shares issued**
Number of employees* U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥130.47 = U.S.$1.00, the exchange rate prevailing on January 31, 2023.
** Number of shares issued does not include treasury stock.
Notes: 1. The consolidated financial highlights are a translation of the Japanese financial statements. The Japanese version will be used for matters of a legal nature.
2. Unless otherwise noted, figures are rounded down to the nearest million.

Net Sales

Operating Profit

Millions of yen

Millions of yen

Total Assets/Total Net Assets
4,693

Millions of yen
88,409129,91275,538112,099

108,538
95,792

93,79978,117

62,20872,652
62,13559,336

2,258

2,154

37,992

23

20.1

21.1

22.1

Ryoyo Electro Annual Review 2023

23.1

19.1

44,725

1,266

1,257

19.1

42,309

20.1

21.1

22.1

23.1

19.1

20.1

21.1

22.1

23.1

Financial Review

Consolidated Financial Review
Operating
Environment

During the fiscal year under review (ended January 31, 2023), social and economic activities in Japan moved toward a return to normality. However, soaring energy and raw
materials prices arising from heightened geopolitical risks, monetary tightening in various
countries, and higher prices due to the yen’s depreciation conjoined to undermine thestrength of economic recovery, while the outlook remains uncertain.
The electronics industry, in which the Group operates, saw disruptions to the supply
chain stemming from shortages of semiconductors and other components, although
there was improvement in the supply balance in some areas and product categories,
pointing ahead to a recovery of stability. Meanwhile, the ICT area continued to see brisk
IT-related investment by companies in digital transformation to support automation andlabor saving and to reform their business models, resulting in ongoing solid performance.

Results for the
Fiscal Year Ended
January 31, 2023

In this environment, the Group positioned “To provide the best solutions for our customers’issues and problems in a faster and better manner than anyone else.” as our vision for the
first year of the current three-year plan. Our core strategies to this end are to expand anddeepen customer engagement, pursue uniqueness, and increase productivity. These
strategies guided our pursuit of various measures during the year, which yielded year-onyear growth in both the Semiconductors & Devices and ICT & Solutions businesses.
As a result, consolidated financial results for the fiscal year under review showedsignificant year-on-year improvement at all levels: Net sales were up 15.9% year on yearto ¥129,912 million; operating profit was up 107.9% to ¥4,693 million; ordinary profit
increased 86.5% to ¥4,477 million, and profit attributable to owners of parent increased
63.1% to ¥3,056 million.

Semiconductors & Devices
Millions of yen
63,794
9,002
4,606
3,059
5,308
35,482
6,336
22.1

79,151
12,254
6,240
4,130
7,861
39,879

Sales by Products
8,787
23.1

Analog & power
Logic
MemoryRF & optical
LCDs
Other electronic devices

The overview of sales by products is as follows.
Semiconductors & Devices
	Net sales were ¥79,151 million, an increase of ¥15,357 million, or 24.1%, year on year.
	This was mainly due to solid performance in a wide range of areas, particularly forindustrial applications and applications for office equipment.

ICT & Solutions
Millions of yen
48,30550,76013,876

16,37016,353

15,276

6,923

7,220

11,15322.1

11,896
23.1

PC/Server/Network
SoftwareI/O equipment
Embedded devices & others

ICT & Solutions
	Net sales were ¥50,760 million, an increase of ¥2,455 million, or 5.1%, year on year.
	This was mainly due to growth in sales of personal computers, network equipment,
and other products and related services associated with the introduction of an online
eligibility verification system in Japan.

Sales by Region
The overview of results by region is as follows. The figure for operating profit presented in
the consolidated statements of income includes operating profit from each segment aswell as from intersegment transactions.
Japan	Demand for semiconductors and devices remained strong across a broad range ofareas, fueling a ¥9,374 million, or 12.4%, year-on-year increase in sales to externalcustomers to ¥84,944 million. Operating profit in this regional segment increased by¥1,783 million, or 99.3%, to ¥3,581 million.
Ryoyo Electro Annual Review 2023

24

Financial Review

Consolidated Financial Review

Asia	Sales to external customers were up ¥8,437 million, or 23.1%, year on year to¥44,967 million, due mainly to improved performance of devices for office automation and communication equipment and semiconductors for digital home appliances. Operating profit in this regional segment was up ¥675 million, or 114.8%, to¥1,264 million.

Financial Position

Cash Flows

Total assets at the end of the fiscal year under review amounted to ¥88,409 million, an
increase of ¥15,756 million from the previous fiscal year-end. This was mainly due to anincrease in cash and deposits.
Total liabilities were up ¥13,340 million from the previous fiscal year-end to ¥43,683
million. This was mainly due to an increase in short-term borrowings.
Total net assets were up ¥2,416 million to ¥44,725 million. This was mainly attributable to a decrease in treasury stock due to the exercise of stock acquisition rights.

Overview of Cash Flows
Cash and cash equivalents totaled ¥19,031 million at fiscal year-end, a year-on-yearincrease of ¥9,827 million, mainly reflecting proceeds from short-term borrowings.

Cash flows from operating activities
Net cash used in operating activities was ¥2,553 million, a year-on-year increase of¥5,536 million. This reflects several factors: Although the Company recorded profit before
income taxes of ¥4,372 million, trade receivables were up by ¥1,193 million and inventories were up by ¥3,505 million, while trade payables were down by ¥2,070 million.

Cash flows from investing activities
Net cash provided by investing activities was ¥150 million, a year-on-year decrease of¥2,404 million. The main inflow was attributable to proceeds from redemption of securities of ¥500 million.

Cash flows from financing activities
Net cash provided by financing activities was ¥11,549 million, an increase of ¥4,677
million from the previous fiscal year, due mainly to proceeds from short-term borrowings.

Basic Policy
Regarding theDistribution ofProfitOur basic policy regarding dividend payments is to return profits to shareholders whileconsidering the Company’s financial position and the operating environment, as we seek
to maintain a stable operating foundation and pursue future business expansion. We
have set “a dividend on equity ratio (DOE) of 5%” as our target for shareholder returns.
Based on this policy, we set the annual dividend for the fiscal year under review at¥110 per share (interim dividend of ¥50, year-end dividend of ¥60). We also plan to pay
an annual dividend of ¥120 for the fiscal year ending January 31, 2024, a ¥10 increase.
Dividend per share (Yen)Interim

25

Ryoyo Electro Annual Review 2023

Year-End

Full Year

PayoutRatio

DOE

2024.1

Forecast

60

60

120

44.1%

5.2%

2023.1Result

50

60

110

72.6%

5.1%

2022.1Result

60

60

120

115.4%

5.6%

Financial Review

Consolidated Balance Sheets
Ryoyo Electro Corporation and Consolidated Subsidiaries at January 31, 2023 and 2022

Millions of yen
As of January 31, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade, and contract assets
Electronically recorded monetary claims - operating
Securities
Merchandise and finished goods
Work in process
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Tools, furniture and fixtures, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total Investments and other assets
Total noncurrent assets
Total Assets¥¥

Thousands of U.S. dollars

As of January 31, 2023

9,204
28,663–3,494
500
19,466
122
1,505
(5)
62,952¥

19,031–30,966
3,886–
23,623
174
1,502
(1)
79,183

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Total Net assets
Total Liabilities and net assets¥

145,872–
237,343
29,791–
181,063
1,341
11,518(15)
606,913

73
5
7
139
226

563
44
57
1,073
1,736

535
297
832

471
361
832

3,612
2,767
6,380

5,721
53
1,621
1,737
(485)
8,648
9,700
72,652

5,406
110
1,589
1,642
(582)
8,166
9,225
88,40941,438848
12,184
12,586(4,464)62,59270,708
677,620¥

Millions of yen

¥

$

74
5
6
132
219

As of January 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Retirement benefit liability
Other
Total noncurrent liabilities
Total liabilities

As of January 31, 2023

14,726
11,763
427
35
560
1,370
28,884$

Thousands of U.S. dollars

As of January 31, 2023¥

13,36625,817
1,423
143
857
1,048
42,657

As of January 31, 2023$

102,449
197,884
10,912
1,099
6,571
8,038
326,952

865
321
271
1,458
30,342

603
316
106
1,026
43,683

4,624
2,426
814
7,864
334,816

13,672
13,336
31,164(17,978)
40,194

13,672
13,33632,000(17,068)
41,940104,790102,219245,271(130,826)
321,455

1,794
(0)
412
(122)
2,083
30
42,30972,652

1,805
0
1,124
(173)
2,756
28
44,72588,40913,8370
8,622(1,330)21,130219
342,804
677,620¥$

Ryoyo Electro Annual Review 2023

26

Financial Review

Consolidated Statements of Income andConsolidated Comprehensive Statements of Income
Ryoyo Electro Corporation and Consolidated Subsidiaries for the Years Ended January 31, 2023 and 2022
Millions of yen
Consolidated Statement of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Provision of allowance for doubtful accounts
Salaries and bonuses
Provision for bonuses
Retirement benefit expenses
Rent expenses
Depreciation
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Gain on investments in investment partnerships
Other
Total non-operating income
Non-operating expenses
Interest expenses
Sales discounts
Foreign exchange losses
Loss on abandonment of non-current assets
Provision of allowance for doubtful accounts
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries and associates
Provision of allowance for doubtful accounts
Settlement package
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

Thousands of U.S. dollars

Fiscal year ended
January 31, 2022

Year ended
January 31, 2023

Year ended
January 31, 2023

¥

¥

$

¥

112,099
101,366
10,732

129,912116,328
13,583995,723
891,609104,114

(0)
3,447
504
200
399
149
3,773
8,474
2,258

(3)
3,400
746
174
414
145
4,011
8,889
4,693

(28)
26,066
5,718
1,335
3,178
1,118
30,74968,13735,977

18
105
134
28
286

43
113
6
21
185

333
872
50
166
1,421

90
4
9
3
–
36
144
2,400

185
–
151
2
54
6
401
4,477

1,420
–
1,162
23
421
51
3,077
34,322

291
291

–
–

–
–

23
–
70
52
18
164
2,526
545
107
653
1,873
1,873

–
105
–
–
–
105
4,372
1,595
(279)
1,316
3,056
3,056

–
805
–
–
–
805
33,517
12,230(2,139)10,091
23,42623,426¥$

Consolidated Comprehensive Statement of Income

Profit attributable to owners of parent
Other 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(Details)
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

27

Ryoyo Electro Annual Review 2023

1,873

3,056

23,426

(324)
(0)
538
(71)
142
2,015

10
0
712
(51)
672
3,729

84
4
5,460
(391)
5,158
28,584

2,015
–

3,729
–

28,584–

Financial Review

Consolidated Statements of Changes
in Net Assets
Ryoyo Electro Corporation and Consolidated Subsidiaries for the Years Ended January 31, 2023 and 2022
Millions of yen
Shareholders’ equity

From February 1,
2021 to January 31, 2022
Balance at the beginning of current period

Accumulated other comprehensive income

SharecapitalCapitalsurplusRetainedearnings

TreasurysharesTotalshareholders'equityValuationdifference on
available-for-salesecurities¥13,672¥13,336¥33,460¥(24,461)¥36,006¥2,119Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Share
acquisitionrightsTotal net
assets¥(0)¥(126)¥(50)¥43¥37,992

Changes during period
Dividends of surplus(3,142)(3,142)(3,142)

Profit attributable to owners of parent

1,873

1,873

1,873

(1)

(1)

(1)

(0)

0

0

0

(1,028)

6,430

5,401

5,401

54

57

57

–

–

Purchase of treasury shares
Disposal of treasury shares
Exercise of share acquisition rights
Restricted stock payment

2

Transfer from retained earnings tocapital surplus

1,025(1,025)

–

(324)

(0)

538

(71)

(13)

129

–

–

(2,295)

6,483

4,188

(324)

(0)

538

(71)

(13)

4,317

¥13,672¥13,336¥31,164¥(17,978)¥40,194¥1,794¥(0)412¥(122)¥30¥42,309

Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

Millions of yen
Shareholders’ equity

From February 1,
2022 to January 31, 2023
Balance at the beginning of current period

Accumulated other comprehensive income

SharecapitalCapitalsurplusRetainedearnings

TreasurysharesTotalshareholders'equity¥13,672¥13,336¥31,164¥(17,978)¥40,194

Valuationdifference on
available-for-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Share
acquisitionrightsTotal net
assets¥1,794¥(0)¥412¥(122)¥30¥42,309

Changes during period(2,200)3,056

Dividends of surplus
Profit attributable to owners of parent

204(2,200)
3,056
(1)
0
638
48
204

(2,200)
3,056
(1)
0
638
48
204

(224)

–

–

(1)
0
848
62

Purchase of treasury shares

(0)
(210)
(13)

Disposal of treasury shares
Exercise of share acquisition rights
Restricted stock payment
Change in scope of consolidation
Transfer from retained earnings tocapital surplus
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

224

–

–

¥13,672¥13,336835¥32,000

909¥(17,068)

–

10

0

712

(51)

(2)

670

1,745
¥41,940

10¥1,8050¥0712¥1,124(51)¥(173)

(2)
¥28

2,416
¥44,725

Thousands of U.S. Dollars
Shareholders’ equity

From February 1,
2022 to January 31, 2023
Balance at the beginning of current period
Changes during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Exercise of share acquisition rights
Restricted stock payment
Change in scope of consolidation
Transfer from retained earnings tocapital surplus
Net changes of items other thanshareholders’ equity
Total changes during period
Balance at end of period

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Share
acquisitionrightsTotal net
assets$13,753$(4)$3,162$(939)$237$324,286

SharecapitalCapitalsurplusRetainedearnings

TreasurysharesTotalshareholders'equity$104,790$102,219$238,866$(137,798)$308,078

(0)

(10)
1

(16,866)
23,426(10)
1(16,866)
23,426(10)
1(1,614)

6,506

4,892

4,892

(105)

475
1,565

370
1,565

370
1,565

1,720

(1,720)–––$102,219

6,405$245,272(16,866)
23,426–$104,790

6,972$(130,826)

–

84

4

5,460

(391)

(17)

5,141

13,378$321,455

84$13,837

4
$0

5,460
$8,622(391)$(1,330)

(17)
$219

18,518$342,804

Ryoyo Electro Annual Review 2023

28

Financial Review

Consolidated Statements of Cash Flows
Ryoyo Electro Corporation and Consolidated Subsidiaries for the Years Ended January 31, 2023 and 2022

Millions of yen
Consolidated Statement of Income

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Loss (gain) on sales and retirement of non-current assets
Share-based remuneration expenses
Loss (gain) on investments in investment partnerships

Year ended
January 31, 2023

Year ended
January 31, 2023

¥

¥

$

Foreign exchange losses (gains)
Increase (decrease) in provisions
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss on valuation of shares of subsidiaries and associates
Settlement package
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Settlement package paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from redemption of securities
Purchase of property, plant and equipment and intangible assets
Proceeds from sales of property, plant and equipment and intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from sale of shares of subsidiaries and associates
Loan advances to subsidiaries and associates
Proceeds from distributions from investment partnerships
Purchase of insurance funds
Proceeds from cancellation of insurance funds
Purchase of shares of subsidiaries resulting in change in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Dividends paid
Purchase of treasury shares
Proceeds from sales of treasury shares
Proceeds from issuance of share acquisition rights
Proceeds from disposal of treasury shares from exercise of subscription rights
to shares
Repayments of lease obligations
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from inclusion of subsidiaries
in consolidation
Cash and cash equivalents at end of period

29

Ryoyo Electro Annual Review 2023

Thousands of U.S. dollars

Fiscal year ended
January 31, 2022

¥

2,526
178
64
3
57

4,372
179
64
2
40

33,517
1,376
493
21
307

(134)

(6)

(50)

57
120
15
(123)
90
(267)
–
70
18
(5,832)(7,527)
3,054
(197)
(359)
(8,184)
127
(88)
(9)
64
(8,090)

(112)
346
11
(157)
185
–
105
–
–
(1,193)(3,505)(2,070)105(261)(1,894)
148
(179)
–
(628)
(2,553)

(866)
2,653
85
(1,205)
1,420
–
805
–
–
(9,145)(26,865)(15,869)812(2,008)(14,520)
1,137(1,377)–(4,815)(19,575)

–
–
500
(152)
1
(112)
2,267
–
–
127
(165)
187
(99)
2
2,554

(1,460)
1,460
500
(260)
1
(7)
–
0
(60)
19
(140)
101
–
(2)
150

(11,192)
11,192
3,832(1,998)
9
(60)
–
4
(467)
147
(1,074)
781
–
(18)
1,155

96,452(91,799)(3,133)(1)
0
19

193,365(180,224)(2,195)(1)
0–

1,482,066(1,381,347)(16,828)
(10)
1
–

5,369

636

4,875

(34)
6,872

(30)
11,549(233)
88,523

223
1,559
7,644

348
9,494
9,204

2,670
72,77370,548

–

332

2,551

9,204

¥

19,031$

145,872

Corporate Data/Investor Information

Corporate Data/Investor Information
As of January 31, 2023

Company Name
Ryoyo Electro Corporation

Composition of Shareholders
Treasurystock

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

Securities
companies

Financial
institutions

FAX+81-3-3545-3507

Establishment
February 27, 1961
Capital¥13,672 million
Authorized Shares
119,628,800
Shares Issued
26,800,000
Shareholders
23,750Stock Trading Unit
100 shares
Stock Listing
Tokyo Stock Exchange,
Prime Market
Ticker Code8068
Transfer Agent
Mitsubishi UFJ Trust andBanking Corporation

1.2 %Foreign corporations
and other foreign
investors

Telephone+81-3-3543-7711

Websitehttps://www.ryoyo.co.jp/en24.7 %

Individuals
and other

40.8 %

Other
corporations

18.0 %

3.4 %

11.9 %

Major Shareholders
Thousands of shares%

SHC Corporation

2,118

10.49

The Master Trust Bank of Japan (Trust account)

2,073

10.27

Mitsubishi Electric Corporation

1,576

7.81

Sheep Shokai Co.

523

2.59

Nippon Life Insurance Company

409

2.03

Ryoyo Electro Employee Stockholder Association

309

1.53

Yoshihisa Shimada

211

1.05

Yoichiro Ohashi

206

1.02

Ken System Co., Ltd.

200

0.99

Mars Group Holdings Corporation

200

0.99

Note: Calculations for the ownership percentages above do not account for the 6,608,536 shares of treasury stock.

Stock Price Chart
Nikkei Stock Average

Stock Price

yen
4,000

yen
40,0003,000

30,0002,000

20,0001,000

10,000

Trading Volume
Shares9,000,000
6,000,000
3,000,000
0

4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3
2020

2021

2022

2023

Caution on Forward-Looking Statements
The contents of this annual review that are not historical fact represent projections based on expectations and plans for the future. These projections containelements of risk and uncertainty. As a result, forward-looking statements made in this annual review may differ from actual results and performance.
Notes on Performance Figures in This Annual Review
The performance figures used in this annual review, including those from previous fiscal years, are based on Ryoyo Electro Corporation’s audited Japanesefinancial reviews.

Ryoyo Electro Annual Review 2023

30

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