Results Briefing for the First Quarter (Feb.–Apr.)of the Fiscal Year Ending January 31, 2024

May 31, 2023

Prime Market, Tokyo Stock Exchange (Ticker Code: 8068)
https://www.ryoyo.co.jp/en/

Copyright 2023 © Ryoyo Electro Corporation

Basic Agreement forManagement Integration

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Copyright 2023 © Ryoyo Electro Corporation

Signing of basic agreement for management
integration with Ryosan Company, Limited
Aiming for management integration in April 2024

Announcement on May 15, 2023

Concluded a basic agreement for management integration

Announcement on March 9, 2023
Acquired additional shares of Ryosan and made it an equity-method affiliate

Announcement on February 7, 2023
Acquired 18.71% of Ryosan shares (percentage of voting rights)

Spring 2022
Started discussions on potential business synergies
2Copyright 2023 © Ryoyo Electro Corporation

Alliance with Ryosan
Working to make the most of both companies’ various management resources:
Outstanding relationships with customers, products and solutions
Business Structure &Products Lineup

Customer Base

Ryoyo
Information

Technology

RyosanMinimal overlap by bothAcceleration of new value
creation by combining productsand services

Potential synergies
LargePursuit of quality

Collaboration inexisting business areas(cross-selling, etc.)
Pursuit of quantity

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Copyright 2023 © Ryoyo Electro Corporation

Overview of the First Quarterof the Fiscal Year Ending January 2024

4Copyright 2023 © Ryoyo Electro Corporation

Intentions of the business plan for fiscal year ending
January 2024
Outlook for the fiscal year ending January 2024

Adjustment fromsemiconductor market
boomReduction of marginal
gains due to exchange
rate fluctuations

Ending oflarge-lot businessA severe business environment is assumed due to changes inexternal factors and factors unique to Ryoyo
This fiscal year will show the results of past reforms and various measures.

Semiconductors & devices

ICT & solutions➢ Contribution by new products and newcommercial rights➢ Further enhancement of service business➢ Focus on the medical field

Communications equipment, power and display devices,and sensors, etc.

Support for everything from manufacturing to kitting andequipment installation➢ Active cultivation of business outside Japan

Promotion of a circular business model for semiconductors,
ICT devices, and services
Creation of unique solutions for last-mile delivery(Voice recognition, IoT platforms, etc.)
Pursuing business synergies with Ryosan5Copyright 2023 © Ryoyo Electro Corporation

Profit/loss: Results
Both sales and profits grew year on year despite a challenging
business environment anticipated at the beginning of Q1.
➢ Gross profit margin improved in addition to increased net sales mainly due to growth in ICTrelated business.
➢ Increase in ordinary profit and profit attributable to owners of parent expanded due to a gain
on bargain purchase (¥4.21 billion) recorded as non-operating profit.

FY2023/1* FY2024/1*Q1
Q1ResultResult(Billion yen)

YoY Change%Net sales

31.1

32.6

+1.5+4.8%

Gross profit

3.28

3.62+0.34+10.4%

10.6%

11.1%

Selling, general and administrative expenses

2.12

2.43+0.31+14.5%

Operating profit

1.16

1.20+0.03

+2.9%

(%)

3.7%

3.7%

Ordinary profit

1.13

5.25

+4.12 +364.3%

Profit attributable to owners of parent

0.83

4.92

+4.09 +493.9%(%)*FY2023/1: Fiscal year ended January 2023

FY2024/1: Fiscal year ending January 2024

6Copyright 2023 © Ryoyo Electro Corporation

Factors impacting sales change➢ Semiconductors & devices: Partially impacted by an adjustment from the market boom in the previous
fiscal year and a decline in TV sales, but the decline in sales was limited to a small extent due to theexpansion of sales for communication devices and OA equipment.
➢ ICT & solutions: Sales remained robust owing partly to capturing demand related to the online eligibility
verification system.
Semiconductors & devices(Net sales by application)

ICT & solutions(Net sales by product)

Year-on-year change: Down ¥0.5 billion

Year-on-year change: Up ¥2.0 billion
EmbeddedI/Odevices
equipment& others+0.3PC/server/+0.7
network
Software+1.3-0.3

PCs &peripherals
Communication +0.3
+0.6
Vehicleinstallation Industrials-0.2& others-0.3(Billion yen)

Digitalconsumerelectronics
-0.8

32.6

31.1

FY2023/1
Ｑ１7

FY2024/1
Ｑ１
Copyright 2023 © Ryoyo Electro Corporation

Supplement : Net sales by product
FY2024/1
24.1期
Ｑ１
Q1

Semiconductors & devices

ICT & solutions

17.2（52.9%）

15.3（47.1%）▲2.9%＋15.0%

17.8（57.1%）

13.3（42.9%）

FY2023/1
23.1期
Ｑ１
Q1

Semiconductors & devices
Net sales by product17.8
1.817.2Analog &power
semiconductors

17.8

1.9

7.2
9.2

Logic
semiconductors

1.2
2.3

Other electronic
devices

2.1
1.1

FY2023/1
23.1期
Ｑ１Q1

1.5

31.1

Net sales by product17.2

Communication

1.8

Digital consumer
electronics

15.3
13.3
4.3

3.0

PC/server/
network

2.0

I/O equipment

2.3

Software

3.8

Embedded
devices& others

5.0

6.4

8.2

Memorysemiconductors
RF & opticalsemiconductors
LCDs

32.6

ICT & solutions

Net sales by application

1.3(Billion yen)

0.8

Vehicleinstallation

0.5

3.3

PCs &peripherals

3.5

5.2Industrials &others

4.1

0.7
1.2

3.7

FY2024/1
24.1期
Ｑ１
Q1

FY2023/1
23.1期
Ｑ１Q18

5.0

4.3

FY2024/1
24.1期
Ｑ１
Q1

FY2023/1
23.1期
Ｑ１
Q1

FY2024/1
24.1期
Ｑ１
Q1

Copyright 2023 © Ryoyo Electro Corporation

Business Plan for the Fiscal YearEnding January 31, 2024

9

Copyright 2022 © Ryoyo Electro Corporation

Profit/loss: Annual targets➢ Annual targets for net sales, gross profit and operating profit are revised upward based on Q1 results andcurrent business trends.
➢ Gains from making Ryosan an equity-method affiliate are reflected as shown in the table below.
Initial Target

Revised Target

Difference

3.10

4.21

+1.11

(Not factored)

0.75

+0.75

Gain on bargain purchase

Equity in earnings (losses) of affiliates➢ Profit attributable to owners of parent is expected to reach the highest figure ever since the company’s
establishment.
FY2023/1*(Billion yen)

ResultFY2024/1*
RevisedTarget

YoY Change

InitialTarget

Difference%

Change from Initial Target
Difference%

Net sales

129.9

128.0

120.0

-1.9-1.5%+8.0+6.7%

Gross profit

13.5813.65

12.80

+0.07

+0.5%

+0.85

+6.6%

(%)

10.5%

10.7%

10.7%

Selling, general and administrative
expenses

8.89

9.35

9.20

+0.46

+5.2%

+0.15

+1.6%

Operating profit

4.69

4.30

3.60

-0.39

-8.4%

+0.70

+19.4%

(%)

3.6%

3.4%

3.0%

Ordinary profit

4.48

8.90

6.50

+4.42

+98.8%+2.40+36.9%

Profit attributable to owners of parent

3.06

7.50

5.50

+4.44 +145.4%+2.00+36.4%

ROE

7.0%

15.4%10 12.1%* FY2023/1: Fiscal year ended January 2023
FY2024/1: Fiscal year ending January 2024
Copyright 2023 © Ryoyo Electro Corporation

Factors impacting sales change➢ Semiconductor & devices: Will likely benefit from the startup of mobile device projects, but will be impacted
by an adjustment following the market boom in the previous fiscal year, and a decline in TV sales.
➢ ICT & solutions: Sales are expected to increase year on year, as the decrease in software due to the endof large-lot businesses will be offset by solid growth in other products.
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 ¥0.2 billion

Industrials& others
Communication +0.6
+3.3
VehiclePCs &installation
peripherals-1.3
Digital-1.8
consumerelectronics-2.9(Billion yen)

I/O
Embedded
devices equipment+1.8
PC/server/ & others+2.1
network+2.6
Software
-6.3

129.9

128.0

FY2023/1
ResultFY2024/1
Target11

Copyright 2023 © Ryoyo Electro Corporation

Supplement : Net sales by product
ICT & solutions(Billion yen)

77.0（60.2%）

51.0（39.8%）

128.0

▲2.7%

＋0.5%

79.2（60.9%）

50.8（39.1%）

Semiconductors & devices

FY2024/1
24.1期(計画)
Targets
FY2023/1
23.1期(実績)
Results

Semiconductors & devices
Net sales by product
79.2
8.8

77.0

Analog &power
semiconductors

79.2
7.2

39.9

Vehicleinstallation

2.6

15.8

PCs &
peripherals

14.0

4.1
6.2
12.3

FY2023/1
23.1期(実績)
Results

Other electronic
devices

5.9
3.0
5.3

21.9

Industrials &others

17.5

FY2024/1
24.1期(計画)
Targets

FY2023/1
23.1期(実績)
Results1251.0

50.8

10.8

27.1

3.9

7.9

Communication

Digital consumerelectronics

34.1

Memorysemiconductors
RF & opticalsemiconductors
LCDs

77.0

Net sales by product

11.9
30.3

Logic
semiconductors

ICT & solutions

Net sales by application

11.2

129.9

7.2

PC/server/
network

I/O equipment

15.3

Software

22.5

16.4

Embedded
devices& others

FY2024/1
24.1期(計画)
Targets

FY2023/1
23.1期(実績)
Results

14.5

9.0

9.0

18.5

FY2024/1
24.1期(計画)
Targets

Copyright 2023 © Ryoyo Electro Corporation

Shareholder returns➢ Dividend policy: Aim for a dividend on equity (DOE) of 5%.
→ Based on the outlook for record-high profit attributable to owners of parent, the company
raised its planned dividend per shar from 120 yen to 160 yen (up ¥50 year on year).
Dividend per Share (Yen)Interim (Q2)

Year-End

Full Year(Revised plan)

80

80160

(Initial plan )60

60120(Result)

5060

110

FY2024/1*
FY2023/1*

Increase
dividend by ¥40
Increase
dividend by ¥10

Expected indicators based on performance forecast and dividend forecast
ROE

Dividend
Payout
Ratio

DOE(Revised forecast)

15.4%

43.1%

6.6%

(Initial forecast )

12.1%

44.1%

5.2%

(Result)

7.0%

72.6%

5.1%

FY2024/1*
FY2023/1**FY2023/1: Fiscal year ended January 2023

FY2024/1: Fiscal year ending January 2024

13Copyright 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