An Electronics Systems Coordinator

8th Medium-TermManagement Plan(Fiscal 2011 - 2013）

July 20, 2011
Ryosan Company, Limited
President, Naoto MimatsuBasic Stance

Basic Strategies- Growth Strategy- Segment Strategy- Infrastructure Strategy1

Basic Stance【Basic Stance of the 8th Medium-Term Management Plan】

Ryosan continues to focus on the acceptance and evolution ofglobal diversity as well as the pursuit of sound management
under the growing uncertainty of the corporate environment.

【General position】

Pursuing management essence, advancing management
innovation, and yielding management results are the keys toconducting open and transparent corporate management andbusiness activities with abundant creativity.
2

Basic Strategies

Growth Strategy

Segment Strategy

as a system coordinator

as a system coordinator

Infrastructure Strategy
that supports growth andreinforces operations

3

GrowthStrategy

Addition

1. Further strengthening ofoverseas semiconductor device
business

2. Strengthening approach todeveloping countries of quick
growth (China and India)

3. Strengthening dealing withglobalizing Japanesecustomers

4. Strengthening exploitation ingrowing fields (car electronics,social infrastructure, etc.)4GrowthStrategy
1. Further strengthening of overseas semiconductor
device business・Implement projects for developing new resources
Objective: Discover new resources for sustainable growth of our company
Goal: ・Quick contribution to performance through new resources which
can be deployed throughout entire group
・Determine whether the new resources can be used to expand ourcompany’s business・Further strengthening of overseas semiconductor device business
Objective: Re-challenge the overseas semiconductor device business asa growth strategy
Goal: Seek net sales of 20 to 30 billion yen through subsidiaries (Saxis,Gyronics) which mainly conduct business in overseas
semiconductors
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GrowthStrategy
2. Strengthening our approach to developing countries
with rapid growth (China and India)(1) Strengthening of measures to promote sales in the Chinese
market⇒Strengthening of Ryosan’s integrated sales structure in China
centered on the local subsidiary in Shanghai⇒Strengthening of our solution ability by collaborating withlocal design houses(2) Making inroads into the Indian market⇒Developing local in-vehicle electrical components and the digital AVmarket⇒Harnessing Ryosan’s existing solutions proposals Collaboration withdesign houses
6GrowthStrategy
3. Strengthening our business with globalizing Japanesecustomers(1) Strengthening of partnerships with activities to ensure customer
satisfaction on a higher level⇒Unified management of worldwide customer production information(2) Making inroads into the European market⇒Construction of a service/support system for Japanese companies
making inroads to Europe(3) Strengthening of our ability to respond to the North Americanmarket (Bases established in Michigan, California, Illinois)(4) Expansion of the line card (products handled), and strengtheningof system technology capability
7GrowthStrategy
4. Strengthening our presence in growth fields(car electronics, social infrastructure, etc.)(1) Car electronics⇒Further enhancement of Ryosan’s existing sales, technology
assistance and support capabilities in the car electronics field⇒Capturing Chinese in-vehicle electrical components manufacturers(Effective potential: 300 billion yen or more)⇒Focus on capturing large South Korean automotive manufacturers(Effective potential: 100 billion yen or more)(2) Social infrastructure/Smart community⇒Electric vehicles/energy efficient vehicles related matters, smart grid
related matters, solar power generation, LED lighting relatedmatters, etc.
8Segment
Strategy
Strategy for semiconductor business (Japanese semiconductor)■ Strengthen the ability of the Renesas enterprise to undergo
structural changes, restructure revenue structure and achieve
growth of the enterprise.
⇒Thoroughly capturing major customers and focus on capturing the growing
in-vehicle electrical components field⇒Business expansion to local corporations in China, South Korea, and India,
mainly in the in-vehicle electrical components market⇒Increasing the effectiveness of capturing strategic markets in collaboration withlocal design houses in China/South Korea(China: In-vehicle electrical components, inverters, STB
South Korea: In-vehicle electrical components)
9Segment
Strategy
Strategy for semiconductor business (Overseas semiconductor)■ Implement functional enhancements to meet the expectationsof the overseas suppliers and achieve conversion into a profit
contributing business.
⇒Establishment of a strong business infrastructure with key suppliers(six companies), and development of business worldwide (NXP,Intersil, Macronix, Cypress, Winbond, STMicro)⇒Raising the independence of subsidiary companies that have split
from Ryosan and practicing healthy management⇒Cultivation of new resources

10Segment
Strategy
Strategy for semiconductor business (Technologies)■ Contribute to semiconductor sales and profit maximization
with our abilities in system technology and development asadded values.
⇒Expansion of strong fields and cultivation of system technology capability⇒Enhancement and global development of technology for growth markets<Measures to strengthen technology to ensure the complete sale off all inventories>
1. Strengthening of development capability through customized development(ASIC/software development)
2. Strengthening of system technology capability (including elemental technology) andproposal capability
3. Strengthening of technical support capabilities (device application technology capability) tosupplement suppliers
4. Fostering and improvement of analog (mixed signal) engineers
11Segment
Strategy
Strategy for electronic components business■ Expansion of the range of products offered, and expansion in
the overseas market⇒Expansion of the range of products offered(LEDs, LCD modules, rechargeable batteries, sensors)⇒Strengthening expansion in the overseas markets
・Continual support of the shift in business of Japanese customers
・Local business development⇒Strengthening exploitation in growing fields(In-vehicle electrical components, social infrastructure, Information
communication, and digital equipment)
12Segment
Strategy
Strategy for electronic equipment business■ Expansion of the enterprise scale by devising a new businessmodel, and seizing opportunities in the newly growing areas⇒Systems equipment: Strengthening of overseas (Taiwan) suppliersand OEM/ODM business⇒Facilities equipment: Focus on sales expansion resources in growing
fields by business structural reform

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Segment
Strategy
Strategy for Ryosan Products business■ Implementation of business expansion and strengthening ofearning capacity⇒Strengthening of the global production system by local production for
local consumption + comprehensive capability⇒Sales share expansion in the in-vehicle electricalcomponents/environmental field⇒Function strengthening as a provider of thermal management solutions

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Infrastructure
Strategy

1. Strengthening business infrastructure(1) Reform of the base system in China⇒Strengthening of Chinese business control capability by turning the local
Shanghai subsidiary into the Chinese parent company
・Establish branches of the local Shanghai subsidiary in Beijing,Changchun, Qingdao and Chengdu, and enhance the business operation
infrastructure further.
(2) Making inroads into Europe⇒Establish a new base in Germany (Munich) and an European business
operation structure(3) Making inroads into India⇒Establish a new base in India (Bangalore) and a business operation
structure in Bangalore, Pune, and Delhi
15Infrastructure
Strategy

2. Reinforcing management in terms of quality(1) Strengthening of corporate governance⇒Election of independent outside directors (1 or more)⇒Disclosure of an outline of the director compensation system(purpose and mechanism)(2) CSR approach strengthening⇒Effectiveness strengthening of environmental management (measures for REACH
regulations, etc.)⇒BCP and disaster measures program reform⇒Regular information communication and having our CSR approach thoroughly known
by CSR reports(3) Strengthening of the ability to respond to risks in the global business environment⇒Strengthening of the ability to respond to legal matters and taxation(4) Thoroughness of effectivity evaluations of internal control related to financial statements(5) IR strengthening16

Infrastructure
Strategy3. Implementing financial strategies aimed to improve
corporate value(1) Establishment of basic management indices① 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 million-share by FY 201317

Disclaimer regarding handling of this data
The prospects stated in this presentation are a forecast for the future,contain risks 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