Shareholders Social Meeting

June 24th, 2011
Ryosan Company, LimitedToday’s report
1. Introduction of the new board structure
2. Damages caused to the company by Eastern Japan
Earthquake, and current situation withcountermeasures
3. “Business Results for Fiscal 2010” and “Forecasts ofResults for Fiscal 2011”
4. Outline of the 8th Medium-Term Management Plan01

Introduction of the New
Board Structure

02

New board structure
Representative President
Director

Naoto Mimatsu

Director General Manager,Senior
Managing
DirectorGeneral Manager, Finance andAccounting Headquarters

Harumitsu Seki

Director General Manager,

Managing
DirectorGeneral Manager, 1stSemiconductor BusinessHeadquarters

Hiroshi Shibuya

Director General Manager, 2ndManagingDirector

General Manager, 1st Domestic
Isao Hayashi
Marketing and Sales Headquarters(Concurrent position held)
General Manager, Electronic
Components Business Headquarters

ManagingDirector

General Manager, Electronic
Equipment Business Headquarters

Itsuto Hamasaki

Production
Headquarters

Administrative
Headquarters

Semiconductor
Business Headquarters

Director General Manager,
International
Marketing and Sales
Headquarters

Satoshi Takabayashi

Takeshi Honda

Koji Honma

Tetsuro Kanai

Auditor (Full-time)

Naotsugu Kasuya

Auditor (Full-time)

Yukio Tanaka

Director

General Manager, SalesAdministration Headquarters

Katsuyuki Suzuki Auditor(Part-time)

Tsuneo SatoDirector

General Manager, EngineeringHeadquarters

Toshifumi Sakata Auditor(Part-time)

Kotaro Nakano

Director

General Manager, 2nd Domestic
Marketing and Sales Headquarters

Tsuyoshi Koyama
03Damages caused to the company byEastern Japan Earthquake, andcurrent situation with countermeasures04Damages caused to the company by Eastern Japan Earthquake,and current situation with countermeasures
1. Human losses⇒There have been no human losses among the employees of our company or their families.

2. Impact on business infrastructure(1) Tokyo Headquarters area

⇒ Emergency task force headed by Naoto Mimatsu, President was established on 3/11.
Promoted unified management of information regarding the company issues,suppliers, and customers, and made sure the directions regarding the same are thorough.
(2) Situation with physical distribution⇒ Our company's distribution center base in East Japan is located in Kawasaki, but it
was not affected by the earthquake in any way and is conducting operations as always.
(3) Business bases
1. Sendai Sales Branch: ⇒ Lifeline stopped after the earthquake. Resumed operations ata temporary office (Tokyo) from 3/24. Started conducting
operations as always at the Sendai Sales Branch from 4/21.
2. Iwaki Sales Branch: ⇒ Lifeline stopped after the earthquake. Resumed operations at atemporary office (Tokyo) from 3/17. Started conducting
operations as always at the Iwaki Sales Branch from 6/20
05

Measures regarding power saving,
and reconstruction assistance
１．Measures to prepare for an earthquake
At present we are in the process of formulation of our company’s Business Continuity Plan(BCP) that will on the basis of the lessons learned from the recent tragedy create measures
to minimize human losses and material damages in the company, and enable a quick
recovery after a disaster.
2. Measures regarding power saving (target set at about 15% reduction)(1) Measures conducted on the whole company basis⇒ across-the-board nonworking days on 8/15, 16.
⇒ Cool biz enforced starting from 6/1.
(2) Measures conducted at offices, such as in the headquarters area and the business bases⇒ air-conditioning set at 28 degrees, 1/3 of the lighting limited, restrictions
enforced on hot-water supply devices, etc.
3. Reconstruction assistance(1) Contributions ⇒ contributed 10 million yen to the Japanese Red Cross Society.
⇒ 3 million yen contributed respectively to each of the municipalities ofSendai, Iwaki, and Hitachinaka, reaching the total of 9 million yen.
(2) Other⇒ Supporting suppliers and customers as requested.
*Measures (1) - (2) listed above were are performed by 3/31.
06

“Business Results for Fiscal 2010” and“Forecasts of Results for Fiscal 2011”07

Overview of Consolidated results
Unit: ¥ 100 million

FY2009Net sales

FY2010FY2011(Forecasts)

Of T otalOf T otal% Chg. YoY％％％

1,943

2,161

Of T otal% Chg. YoY％＋11.2

2,300％＋6.4

Gross Margin

168

8.7

190

8.8＋12.8

171

7.4(10.1)

SG&A expenses

120

6.2

129

6.0＋7.2

136

5.9＋5.0

Operating income

47

2.5

60

2.8＋27.035

1.5(42.4)

Ordinary income

53

2.7

68

3.2＋29.6

421.8(39.0)

Net income

281.5

41

1.9＋44.0

25

1.1(39.5)

Earnings per share¥83.21¥36.64¥72.54¥119.85(¥47.31)08

Segment Information by Business Type
Unit: ¥ 100 million

FY2009FY2010
OP
Margin

Sales

Semiconductors

ElectronicComponents
Eloctronic
Equipment

OperatingincomeOperatingincome
Sales

276

Sales

Operatingincome％

1,015
33604
23

3.3

3.8％

1,237
45600
223.7

3.72589Operatingincome

47
38.4

644

7.5

Unallocable Operating expenses

▲20-

▲21-

Sales

Sales

Consolidated

Operatingincome

1,943
47

3.5

2,161
2.5

60

2.8

OP
Margin% Chg. YoY％％% Chg. YoY％

＋21.9

1,420＋37.8(3.1)

28580
18(6.5)240＋17.45＋37.2＋22.0

60
4

6.7(17.7)-▲20--＋11.22,300＋27.035(0.7)

2.8

Ryosan Products(Heat sinks)

7OP
MarginFY2011 (Forecasts)

2.0

＋14.7
(39.0)(3.4)

3.1(19.9)(7.2)

2.1(44.9)
(7.3)

＋6.4
1.5(42.4)

09

Sales Breakdown (By business)【Semiconductors Sales Breakdown】

1,420(¥ 100million)

128

1,237
1,015 ＋6
Memories

137

Display
Devices＋145

604

600

137 ＋3058

580

167 ＋4
171

(4)

54

Mechanical
Components 409 (31)

378

921

617

Discrete(¥ 100million)

PowerSupplies

131＋159 776

SystemLSIs(9)【Electronic Components Sales Breakdown】(1)

53(24) 354

267 ＋56 323 ＋47 370

FY2009FY2010FY2011(Forecasts)

FY2009FY2010FY2011(Forecasts)《 Forecast for the FY 2011 (As compared with the last fiscal year ) 》
・ Sales of mechanical parts for in-vehicle electrical・ Sales of microcomputers and system LSIs for invehicle electrical components as well as related
products are expected to increase.

components and mobile phones as well as related
products are expected to decrease.

10

Sales Breakdown (By business)【Electronic Equipment Sales Breakdown】(¥ 100million)

276【Ryosan Products Sales Breakdown】

64(¥ 100million)

60258
240
47System
Equipment

Facilities
Equipment

24146(28) 213(34) 179

Domestic

36＋16 60
44＋935

Overseas

11FY2009

FY2010FY2011＋10(1)45＋6 17(3)14FY2009(Forecasts)

FY2010FY2011(Forecasts)《 Forecast for the FY 2011 (As compared with the last fiscal year ) 》
・ Sales of system equipment for in-vehicle electricalcomponents as well as related products are expected
to decrease.

・ Sales of heat sinks for TVs as well as related products
are expected to decrease.

11Overseas Sales Breakdown
Unit: ¥ 100 million

FY2009FY2010

Of T otal

Of T otal% Chg. YoY

Of T otal% Chg. YoY％％％％％

Consolidated net sales

JapanOverseas(Chinese Bloc)

FY2011 (Forecasts)

1,943－

2,161－＋11.2

2,300－＋6.4

1,282

66.0

1,423

65.8

＋11.0

1,500

65.2

＋5.4

661

34.0

738

34.2

＋11.6

800

34.8

＋8.4369

19.0

440

20.4

＋19.2

460

20.0

＋4.512

FY2010 Key Clients《Top 5 (by business)》《Top 40》
Top 1-10

Calsonic Kansei

Top 11-20

Top 21-30

ADVANTESTALPINEALPS ElectricCASIOCOMPUTER

Brother Industries

DENSOFuji Film

HITACHIMamiya-OP

ClarionFuji Xerox

Clients(alphabeticalorder)

Furuno Electric
Mitsubishi Electric
NECNIKON
Panasonic
PIONEERSHARP(Top 10)Percentage
Sales of allclients

44%

NINTENDOOMRONSAMSUNG Group(K)
Sumitomo Wiring
Systems

JVC
Sumitomo ElectricIndustries
Taiyo Yuden
TOSHIBA TEC
YASKAWA Electric
YAZAKI meter

YAMAHA(Top 20)

60%(Top 30)

68%

Top 31-40

Semiconductor

Electronic
Equipment

Fujitsu

ALPS Electric
HITACHI
Mitsubishi Electric
PIONEER
SHARP

DENSO
Fuji Xerox
HITACHI
TDK
Panasonic( Top 5 )39%

( Top 5 )65%

Electronic
ComponentsRyosan ProductCalsonic Kansei
Mitsubishi Electric
NEC
NINTENDO
Panasonic

DENSO
FANUC
HITACHI
Mitsubishi Electric
Panasonic( Top 5 )29%

( Top 5 )39%

Hyundai Motor
Group (K)JRC
KENWOOD
Panasonic Electric
Works
SANYO Electric
Stanley Electric
TAKATATDKTOSHIBA(Top 40)72%* Rank and percentage share are based on results for FY2010.
* K: Customer in Korea* The blue characters represent the clients for which our sales increased by over 30% from the previous year.

(alphabetical order)

13Trend in net income and dividend per share(Yen)200

Net income per share187

Dividend per share
Consolidated dividend
payout ratio

82.7%

150

71.5%

72.1%

66.8%

119111
100

42.7%

8080

8380
7260

60

500

FY2007

FY2008FY2009FY2010FY2011(Forecasts)

14

Outline of the 8th Medium-Term
Management Plan

15

Expectations for semiconductor market
Source: spring 2011 forecast of WSTS (World Semiconductor Trade Statistics)

180
U.S.

Europe

Japan

Asia

2013 Regional Market forecasts

170

Amount(trillionyen)

Share

World

29.3

－Asia

15.8

53.8

U.S.

5.5

18.7

Japan

4.1

14.1

Europe4.0

13.5

Region160
150
140130120(%)

11010090
20092010Results

2011

2012

2013

Forecasts*Growth rate with 2009 set as "100" (2009 is the latest bottom year under impact of the bankruptcy of Lehman Brothers)*Regions other than Japan are showing a favorable upward rise
*Under the influence of the Eastern Japan Earthquake, negative growth is expected for 2011 in Japan

1613

Basic Stance【Basic Stance of the 8th Medium-Term Management Plan】
Ryosan continues to focus on the acceptance and evolution of global diversity as
well as the pursuit of sound management under the growing uncertainty of thecorporate environment.

【General position】
Pursuing management essence, advancing management innovation, and yielding
management results are the keys to conducting open and transparent corporate
management and business activities with abundant creativity.

17

Directivity and target of the enterprise【Directivity】"Construction of a management structure strong enough to survive in the globalage" and "Exploitation of emerging markets to support future growth."【Target of the enterprise】
Another attempt to "bring the enterprise to the scale yielding consolidated salesof 300 billion yen."18

Growth Strategies
1. Strengthening our approach to developing countries with rapid growth (China andIndia)(1) Strengthening of measures to promote sales in the Chinese market (restructuring of abusiness managing system)(2) Making inroads into the Indian market (setting up a business base in Bangalore)

2. Strengthening our business with globalizing Japanese customers(1) Employment of activities to ensure customer satisfaction on a higher level(2) Making inroads into the European market (setting up a business base in Munich, Germany)(3) Expansion of the line card (products handled), and strengthening of system technology
capability

3. Strengthening our presence in growth fields (car electronics, social infrastructure,etc.)(1) Car electronics(2) Social infrastructure/Smart community
19Segment Strategies
・Strategy for semiconductor business■Semiconductors (Japan)
Strengthen the ability of the Renesas enterprise to undergo structuralchanges, restructure revenue structure and achieve growth of the enterprise.
■ Semiconductors (Overseas)
Implement functional enhancements to meet the expectations of theoverseas suppliers and achieve conversion into a profit contributing
business.
■ Technologies
Contribute to semiconductor sales and profit maximization with our abilities
in system technology and development as added values.

20

Segment Strategies
・Strategy for electronic components business
Expansion of the range of products offered, and expansion in the overseas
market・Strategy for electronic equipment business
Expansion of the enterprise scale by devising a new business model, and seizing
opportunities in the newly growing areas

・Strategy for Ryosan Products business
Implementation of business expansion and strengthening of earning capacity21

【Reference】(Unit: ¥ 100million)

3,200

Quantitative targets of consolidated sales
Semiconductors(Japan)The 8th Medium-Term Management Plan

Semiconductors(Overseas)

3,000Electronic Components

100350Electronic Equipment

2,800

Ryosan Products(Heat sinks)

2,300
2,400

2,161

2,000

64258

1,600

1,200

60
240

750

580

300

600
200
213

800
400

1,0240FY2010

1,220

1,500

FY2011FY2013(Forecasts)(Target)22

Infrastructure Strategies

1. Strengthening business infrastructure
2. Reinforcing management in terms of quality
3. Implementing financial strategies aimed to improve corporate value

23

Implementing financial strategies aimed to improve corporate value

1. Establishment of basic management indices(1) Yearly: consolidation dividend payout ratio on consolidated basisof 50% or more
(2) FY 2013: dividend on equity (DOE) of 2.5% or more

2. Implementation of own share buyback (expected 3 millionshare by FY 2013)24

Disclaimer regarding handling of this data
The prospects stated in this presentation are a forecast for the future, containrisks or uncertainties and may largely vary from the actual business results. The
principal factors that may influence the prospects are as follows.

- Sudden changes of economic conditions of primary markets (Japan,Asia, etc.), of consumption trends, and supply/demand for products- Significant changes of yen rates against dollar and other currencies- Significant changes, etc. of the market prices in the capital market

25