Ryosan Company, Limited
Supplementary Materials for
FY2020 Financial Results
Fiscal year ended March 31, 2021

May 14, 2021

Financial Results for FY2020
Counter Measures for Profitability Enhancement

11th Medium-Term Business Plan
FY2021 Forecast of Business Results
Reference: Contribution to the SDGs
NoticeBusiness forecasts and all statements related to the future contained in this document
are based on information currently possessed by Ryosan Company, Limited (Ryosan)
and on certain assumptions which are judged to be rational. Actual business performance
may differ greatly depending on a variety of factors. The following is a list of major factors:• Economic conditions in key markets (Japan and the rest of Asia), rapid changes

in consumption trends and supply-demand balance for products• Sharp fluctuations in the dollar-yen exchange rate
• Substantial fluctuation in prices in capital markets

2

Financial Results

Consolidated Statements of Operation

for FY2020

 Full-year net sales for FY2020 declined 3% from the previous fiscal year (YoY) to ¥219.8 bil.
 Operating income rose 49% YoY to ¥4.6 bil, while ordinary income surged 76% YoY to ¥5.1 bil.
 Net profit nearly tripled, rising 284% YoY to ¥4.5 bil, lifted by income from sale of investment securities
and a rebound from temporary expenses incurred in the previous fiscal year.
 ROE edged up 3.9 points YoY to 5.3%.
（単位：億円）(Unit: ¥Bil)

FY2019FY2020Full-year
Business
Results

January 26, 2021
Forecast

Full-year
Business
Results

Change(FY2020-2019)

Comparison
with Forecast

Net Sales

227.2

215.0

219.8

–3.3%

+2.3%

Gross Profit

17.7

－

19.0

+7.2%

－

Operating Income

3.1

3.6

4.6

+48.9%+28.6%(% of Net Sales)(1.4%)(1.7%)(2.1%)(+0.7pt)(+0.4pt)

Ordinary Income

2.9

4.5

5.1

+75.6%+13.8%(% of Net Sales)(1.3%)(2.1%)(2.3%)(+1.0pt)(+0.2pt)

1.1

3.5

4.5

+284.2%+31.0%(% of Net Sales)(0.5%)(1.6%)(2.1%)(+1.6pt)(+0.5pt)

EPS (¥)

50.96

149.39195.78+284.2%+31.1%

ROE

1.4%

－

5.3%

+3.9pt－108.74－106.06–2.5%－

Net Profit

US Dollar Average Rate (¥)

3Factors in Increase/Decrease of Net Sales and Ordinary Income

Financial Resultsfor FY2020

 Factors in the decline in net sales YoY include the effects of the COVID-19 pandemic (¥13.0 bil) and adecrease in transactions prompted by counter measures for profitability enhancement (liquidation of lossmaking businesses) (¥6.0 bil).
 Ordinary income increased YoY, lifted by decreases in costs such as inventory-related expenses, selling,
general and administrative expenses (SG&A) and interest expenses, as well as by foreign exchange
gains. SG&A declined YoY by only ¥200 mil: While the impact of the COVID-19 pandemic caused travel
and transportation expenses, entertainment expenses and the like to fall dramatically, logistics-related
expenses climbed.
Figure 1. Net Sales (billions of yen)

Figure 2. Ordinary Income (billions of yen)
Foreign
Improved inventory
Reduction exchange
turnover andgains
in interesttightening ofexpenses+0.3
Decline incontrols on
+0.4
SG&A
operations resulted
in a decline in+0.2
related expenses.

227.2

Decrease intransactions due
to countermeasures for
Demandprofitability
related to enhancementofstaying at (elimination
loss-making
homebusinesses)

+3.5

–16.5
Effects of
COVID-19

–13.0
19年度
既 存 事業縮小 巣 ご もり
FY2019

+1.8

219.8

2.9

–6.0
Firm salesforindustrial
equipment,
etc.

Contraction
in existing
businesses

5.1

Decline in
net sales

–0.5

+5.1
Effects of New
changesbusiness
in foreign+7.5
exchange
rates

–1.0
規 模 縮 小等為替

新 規 ビ ジネス 産 業 機 器等

20年度
FY20201 9 年 度上期
FY2019

売上減少

在庫

販 売 管 理費

支払利息

為替差益

2 0 年 度上期
FY20204

Financial Results

Segment Information

for FY2020

 In the Semiconductors business in FY2020, net sales declined YoY amid a decrease in sales related toautomobiles in H1. Operating income rose 75% YoY due to factors such as a drop in inventory-related
expenses.
 In the Electronic Components business, both sales and income increased YoY, as sales in the consumer
and industrial equipment sectors were firm throughout the year and sales to the automotive sector
recovered in H2.
 Both sales and income fell YoY in the Electronic Equipment business, as major projects in theautomotive sector slumped.
（単位：億円）FY2019Full-year
Business Results(Unit: ¥Bil)

Semiconductors

Electronic
Components

Electronic
Equipment

Total

FY2020Full-year
Business Results

Change(FY2020-2019)

Net Sales

136.1

131.8

–3.2%

Operating Income

1.16

2.03

+74.7%(% of Net Sales)(0.9%)(1.5%)(+0.6pt)

Net Sales

74.2

75.6

+2.0%

Operating Income

2.14

2.55

+19.4%(% of Net Sales)(2.9%)(3.4%)(+0.5pt)

Net Sales

16.9

12.3

–27.1%

Operating Income

0.38

0.18

–51.4%(% of Net Sales)(2.3%)(1.5%)(–0.8pt)

Net Sales

227.2

219.8

–3.3%

Operating Income

3.10(1.4%)

4.62(2.1%)+48.9%(+0.7pt)(% of Net Sales)5Trend in Net Sales and Operating Margins by Quarter

Financial Resultsfor FY2020

 FY2020 net sales bottomed out in Q1, recovering to over ¥60 bil in Q3 and Q4.
 Operating margin was shaved below 1 percentage point due to inventory disposal in Q4
FY2019 and deterioration in market conditions in Q1 FY2020. However, recovery in net
sales coupled with success in restraining SG&A in H2 enabled an improvement to almost
3 percentage points in H2.
Operating Margin

Net Sales (Unit: ¥Bil)
80

Semiconductors

63.5
5.2

19.6

65.4

Electronic
Components

Electronic
Equipment

63.2

6.3

5.7

57.4

57.9

58.5

57.9

4.8

4.7

4.4

4.2

18.7

19.2

18.7

20.7
19.4

17.6

53.6
2.9

52.8
3.4

17.4

40

5.0%

Operating Margin

43.5
2.9

19.2

61.2
3.1

61.4
3.3

4.0%

21.0

20.5

3.0%

2.7%

2.8%

2.5%
14.8

2.3%
1.6%

2.0%
38.6

38.3

38.1

34.9

1.4%
34.4

1.8%

1.9%

34.7

35.0

2.0%

1.8%
31.9
25.7

31.5

37.0

37.5

Q3

Q4

1.0%

0.3%
0.6%
0

0.0%
Q1

Q2

Q3
FY2018

Q4

Q1

Q2

Q3
FY2019Q4Q1Q2FY20206

Financial Results

Segment Trend Information

for FY2020

 FY2020 saw no changes by region. By application, the share of sales in the automotive sector decreased,
as this sector was badly hit by the COVID-19 pandemic, while the share of sales to the consumer andindustrial equipment sectors expanded. In sales by product, firm demand from consumers supported anincrease in sales of electromechanical components.
By Region

By Product

4%

5%

5%

Others

43%

42%

44%

Asia

■ Semiconductors ■ Electronic Components■ Electronic Equipment
1%
6%
3%
4%

2%
4%
3%
3%

Facilities Equipment
Systems Equipment
Power Supplies
Display Devices

24%

26%

28%

Electromechanical
Components

4%

4%

5%

Memory

16%

17%

17%

Discrete
Semiconductors

40%

39%

38%

System LSIs

FY2018FY2019FY2020

1%
8%
3%
4%

53%

FY201853%

51%

FY2019Japan

FY2020By Application
8%

8%

7%

13%

12%

12%

OthersInformation &Communication

13%

12%

15%

Industrial Equipment

15%

15%

18%

Consumer

51%

53%

FY2018FY201948%

FY2020Automotive

7

Consolidated Balance Sheet / Consolidated Statements of Cash Flow

Financial Resultsfor FY2020

Total assets at the end of March 2021 were ¥10.3 bil greater than at the end of the previous fiscal year. Liabilities
increased in tandem with a rise in accounts payable—trade, while net assets grew due to increases in retained earnings
and in foreign currency translation adjustment caused by depreciation of the yen. The ratio of net assets to total assets
was 60.5%.
In consolidated cash flows in FY2020, cash flow from operating activities decreased by ¥3.7 bil, mainly due to an increasein accounts receivable—trade.
Consolidated Balance Sheet
End of Mar. 2019

End of Mar. 2020

End of Mar. 2021

Change from
Previous Fiscal
Year-end

Total Assets

146.5

137.7

148.0

+10.3

Current Assets

129.3

121.7

132.4

+10.7

Non-Current Assets

17.2

15.9

15.5

–0.4

Liabilities

58.7

52.8

58.4

+5.6

Net Assets

87.8

84.9

89.6

+4.7

59.9%

61.7%

60.5%

–1.2pt(Unit: ¥Bil)

Net Assets to Total Assets (%)

Consolidated Statements of Cash Flow
(Unit: ¥Bil)

FY2018FY2019Change(FY20202019)

FY2020Cash Flow from Operating Activities

13.0

17.9

–3.7

–21.6

Cash Flow from Investing Activities

–0.4

–0.3

1.0

+1.3

Cash Flow from Financing Activities

–11.5

–7.4

–1.5

+5.9

Cash and Cash Equivalents at the Endof the Period

14.5

24.5

20.6

–3.9
8

Financial Results for FY2020
Counter Measures for Profitability Enhancement

11th Medium-Term Business Plan
FY2021 Forecast of Business Results
Reference: Contribution to the SDGs

9

Counter Measures for Profitability Enhancement (1/2)

Counter Measuresfor Profitability
Enhancement

 Since the freezing of the 10th Medium-Term Business Plan, Ryosan has focused on
profitability enhancement.

Project Name

Comparedwith FY2018

Details of Measures

KPI Withdraw from nonprofitable businesses

Reduction of resource outlays on sales promotion for
non-profitable products

No. personnel–46%

 Optimize organizations

Merging and elimination of domestic bases, HQs andlogistical facilities

No. offices–26% Review products at
Solutions HQ

Narrowing the range of projects taken up andreduction of personnel requirements

No. projects–25% Streamline control function

Streamlining by introducing reception systems
Use of digital technologies (document storage,
auditing, etc.)

No. relevant
personnel–50%

 Optimize headcounts

Personnel reduction through early retirement

No. relevant
personnel–12% Expand Renesas business

Reorganization in view of changes in the businessenvironment

No. relevant
personnel–6% Revise engineeringfunctions

Engineering PR (presentation of webinars, productionof websites) Reduce inventory volume

Launch of in-house management projects,
clarification of management rules

Value ofinventory–20%

 Maximize head office space
usage

Termination of agreements on somerental properties around head officeand bringing those functions into thehead office building

Floor area–20%

 Replace held assets

Sale of four real-estate assets and two stock holdings

Real-estate
assets held

–31%

－

－

10

Counter Measures for Profitability Enhancement (2/2)
Counter Measuresfor Profitability
Enhancement

Personnel expenses* are decreasing as the result of early retirement and SG&A is declining overall due to the impact of the
COVID-19 pandemic.
Reductions in expenses are partly the result of temporary factors. Company-wide cost-cutting efforts will continue.

8,000

Personnel expenses
Personnel expense ratio

Management expenses
Management expense ratio

3.4%

3.2%
7,600

3.0%
7,200
2.8%

6,800
2.6%

6,400

2.4%
FY2017FY2018FY2019FY2020

Early retirement
Effects of
COVID-19

Effects of
COVID-19

Unit: ¥Mil
Consolidationof Edal*Personnel expenses do not include the portion equivalent to development worker-months.

11

Financial Results for FY2020
Counter Measures for Profitability Enhancement

11th Medium-Term Business Plan
FY2021 Forecast of Business Results
Reference: Contribution to the SDGs

12

11th Medium-Term

Positioning of This Plan

Business Plan The 11th Medium-Term Business Plan shifts Ryosan’s management stance from the rigid defensivemode for improving profitability established two years ago, to an offensive (active) mode focused ontransforming its business. Ryosan is actively pursuing the investments it needs for growth whilestrengthening its management of resources further than ever (people, equipment and funds).

Environmental
changes• Changes insuppliers’
policies• Burden of endof life (EOL)
and business
continuity planinventories• Response to
the COVID-19
crisisRigiddefensive
posture• Freezing of theMedium-TermBusiness Plan
• Countermeasures forprofitability
enhancement• Management
reorganization

Examination ofstrategy• Long-term
vision• 11th MediumTerm Business
Plan

Switch to an“offensive”(active)postureInventory and operating
income (fiscal half-years)

Inventory

Operating income

80,0004,000
Inventory

Operating income

60,0003,000

40,0002,000

20,0001,000

Unit: ¥Mil

0

FY2015FY2016FY2017FY2018FY2019FY2020013Summary of Previous Medium-term Business Plans

11th Medium-TermBusiness Plan In previous medium-term business plans, Ryosan made themes such as diversification of products,
overseas expansion and new businesses the pillars of its plans. The Company’s basic business model
as a trading business remains the same.
 Now that changes in the business environment are unusually drastic, Ryosan is moving with unwaveringconviction to transform its operating constitution.

8th (FY2011–2013)

9th (FY2014–2017)

10th (FY2018–2020)

Emerging markets

Shift to multi-vendor sales

Solution business

Global Japanese-affiliatedcustomers

Overseas businessCore suppliers

Strengthening automotive andinfrastructure operations

New business models

Overseas local businesses

Investing for growth

New business models

Governance
Ability to respond to risks
Overhaul of IT systems
Effective use of personnel

Next-generation IT
systems
Organization
Personnel system
Raising efficiency ofclerical/administrative work

Business infrastructure
Strengthening the qualityof management
Financial strategy

14Macroenvironmental Analysis

Overseas

11th Medium-TermBusiness Plan

Improvement from the economic slump caused by the COVID-19 pandemic
Permanent friction between US and China, continuous and strengthened
sanctions on major traded products

Domestic

Business restructuring in the wake of the pandemic (digitalization,
workstyles)
Continued deflation, zero interest rate policy unchanged

Spread of AI technology and 5G
Technology Revolution in zero-carbon technology and reduced cost of
implementation

Industry

Customers

Trend toward aggregation of dealerships by suppliers
Rise to prominence of suppliers in Asia

Business reorganization (expansion of scope of use in electronics)
Spread of business without face-to-face contact (sales, purchasing)15

Main Points of Measures (1/2)

11th Medium-TermBusiness Plan

Portfolio diversification• Thorough review of business opportunities foracquired commercial rights; diversification of current
business portfolio relying on automotive sector• Enabling of efficient sales activities throughestablishment of direct sales promotion; aiming toactivate the medium-sized-enterprise zone

Strengthening of local
business in China andHong Kong• Deepening cooperation with local partners;
expansion of solution business aimed at local
companies• Reciprocal use of the Ryosan and Edal brands;
strengthening of general-purpose-product businessin each zone of existing networks

Harvesting of priorinvestment products
and making newinvestments• Harvesting of key businesses from preceding
investments to new products expected to bear fruit
during the 11th Medium-Term Business Plan
• Discovery of new products and launch of businesses
based on those products; decentralization of device
composition, which was hitherto focused onRenesas16

Main Points of Measures (2/2)

11th Medium-TermBusiness Plan

Investments totransform Ryosan’s lineof business: Turning
front-line strength andvital-point strength into
products• Ryosan is establishing specialist teams tasked with planning
new businesses using customer needs as their starting point.
Investment is focused on resources to transform Ryosan’senterprise constitution.
• Ryosan is pursuing partnerships with other industries,
including not only manufacturing functions but also strategic
secondment of personnel.

Raising the efficiency of
existing businesses• Ryosan is boosting efficiency by reducing paperwork andshifting procedures to electronic systems.
• Practical knowledge is being digitalized using chat bots, AI,
etc. Measures such as automation of order-receiving
processes through concerted use of robotic process
automation (RPA) technology are being implemented.

Reinforcing thefoundations• In addition to overhauling basic sales information,
Ryosan is bolstering internal management
infrastructure such as education systems, risk
management and governance frameworks.

17

11th Medium-Term

Financial Plan

Business Plan

FY2020(Results)

FY2023(Managementtargets)

Net Sales

219,884

263,000

Gross Profit

19,031

21,300Operating Income

4,628

6,900

Consolidated ROE

5.3%

5.0%

Unit: ¥Mil

USD interest rate

2.0%

JPY interest rate

1.0%

Exchange rate

¥100

Transformationof enterpriseconstitution

Creation ofbusinesses anddramatic
improvement of
earning
capability

Shift from rigid
defensive mode
to offensivemode
18

11th Medium-Term

Growth Strategies: Portfolio Diversification

Business Plan Ryosan is diving into its newly added non-automotive portfolio.
 To discover opportunities in the SME and long-tail-zone categories, where its involvement
has been relatively light, Ryosan is launching dedicated teams, expanding its product line
and preparing direct sales channels, among other measures.
Sales-promotion measures➢

Major
customers➢•

Small andmedium-sizedcustomers•

Long tailDuring the
expansion ofcommercial rights,
Ryosan invested
less in thesezones.
This is a market inwhich suppliers
asked Ryosan tostrengthen its
presence.

Diving into its nonautomotive portfolio, which
was added as a result ofchanges in suppliers’
policies
Streamlining current
operation➢ Launch of sales
promotion teams
specializing in middle
markets➢ Introduction ofstrategic products➢ Effective use of direct
sales channels

1911th Medium-Term

Growth Strategies: Channel Strategy

Business Plan Ryosan plans to develop marketing materials that enable sales promotion without face-toface meetings, as well as system infrastructure for collecting customer information. To
develop infrastructure that enables efficient sales promotion, Ryosan also plans to invest in
inside sales as well as e-commerce websites.

Telephone
E-mailWeb

Live chatSocial media

Staffed retail
outlets

MA, CRM,
SFA, online
conferencing
Online andmobileinfrastructure
Tools for use withsocial media

New-channel infrastructure

Centralized management of diverse
customer channels and information

Proposal ofsolutions

Next
phase

Long tail and newcustomers

Order
receivingOn-sitediscussions

Areas for developmentin the 11th MediumTerm Business Plan

Estimates

Current
statusExisting
customers

Technical
information

Customerdatabase
Product
database
FAQ andsupportinformation
Response
logs
Web logs

Transaction
history

Databases
20

Growth Strategies: Expand Local Business in China
and Hong Kong (1)11th Medium-TermBusiness Plan In southern China, Ryosan and Edal are moving to full-fledged cooperation in the field of sales promotion,achieving synergies in sales.
 In northeastern China, Ryosan plans to expand local business by 1) expanding sales of general-purpose
products in Ryosan channels and 2) deploying value-added products into promising market areas and by
expanding cooperation with investment targets (Qingdao Sanyuan Taike Electronics Technology (China).

Solution businessNortheastern
China

Expansion ofsales tostrategic
customers

General-purpose-products business

Expansion of cooperative
business with Qingdao
Sanyuan TaikeElectronics Technology(China)Expansion in white goods

Southern China• Use of design
houses tostrengthen
technical support• Sales of kits ofsemiconductors
and electronic
components

Strengthening ofbases’ sales
capabilities• Focus on analog products• Measures to improve productknowledge

Pursuit ofsynergies between
Ryosan and Edal

• Deployment of Edal products to
Ryosan customers• Deployment of Ryosan products
to Edal customers

RyosanEdal
21

Growth Strategies: Expand Local Business in China andHong Kong (2)(Expansion of Sales to Strategic Customers)

11th Medium-TermBusiness Plan Leveraging its strengths (sales capabilities, sales channels, technical capabilities, financial
resources), Ryosan is expanding its business by expanding sales of module products, aswell as sales in its existing device businesses.
Targets

Parts suppliers

 White-goods market
Supply of parts
Supply of modules(Air conditioners,
refrigerators andperipheral devices)

EMS
Specificationof parts

Supply of parts

 Automotive market
 FA market (new)Partners, solution vendors
Supplyof parts

Supply of modules
Head
officeSupply of modules

Supply of modules

Customers(in Japan)
Specification of parts

Customers (manufacturers in China)22

Growth Strategies: Turn Front-line Strength andVital-point Strength into Products
Shift in development model from technologydriven to customer-needs-driven

Business Plan

Product-development framework leveraging Ryosan’s
network of outstanding corporate customers in Japan andoverseas

DX

Request for
streamlining ofwork processes

11th Medium-Term

Ryosanecosystem

Burden ofresponse to EOL

Automotive
Information&
CommunicationFA

Analytical/
judgement
capabilities

Semiconductor
manufacturersIPvendors

Needs
White
goods

Support forelectrification

Platform
Consumer
devicesIndustrial
machinery

EMS

Front-line strengthand vital-point
strengthServicevendors

Softwarevendors
Parts
manufacturers

Trading-company functions
Manufacturing anddevelopment functions
Information-provision functions

23

Growth Strategies: Raise the Efficiency of Businesses
operation➢ As a result of finely textured responses tocustomer needs, operating efficiency has
declined.
➢ By putting to use a wide range of DX
technologies, Ryosan expects to achieve
efficient business operation without
sacrificing quality of service.

AI

11th Medium-TermBusiness Plan

RPA
Chat
bots

Digitalization of operations

24

Growth Strategies: Reinforce the Foundations

11th Medium-TermBusiness Plan Ryosan is strengthening its management systems (governance and risk management)
to enable a wide variety of risk-taking.
 Ryosan is enhancing its personnel and education systems to enable sustainable
enterprise growth.
• Enhancementof management
information• Revising thescope anddepth ofmonitoring• Revisingsystem design• Efforts todiversify
workstyles• Introduction ofrisk KPI• Strengthening
overseas
compliance

GovernanceRisk
management

Personnel
systems

Education• Revising
educational
programs• Strengthening
management
capabilities

25

11th Medium-Term

Financial Strategy

Business Plan

Measures to improve capital efficiency

Policy on return of capital

•

•

•

Ryosan is improving profitability through measures such as
diversification of its business portfolio and investing for
growth.
Ryosan is advancing rigorous cash and inventory
management as well as use of leverage, aiming once again
for ROE of 5% in FY2023.

Improvingprofitability• Diversification of the business portfolio• Strengthening of growth investment• Streamlining operations through DX, etc.

Ryosan places priority on investing in capital andbusiness for growth.
Ryosan is targeting a consolidated dividend payout ratioaround 50%.
Ryosan might consider the acquisition of treasury
shares depending upon the market environment.

••

Japanese yen
160
140• Rigorous inventory management• Enhancement of cash management
Improving • Response to new settlement schemes

asset
efficiency

%
300.0

Ordinary
Special
普通配当
特別配当
dividend
dividend
配当性向payout ratio
Dividend

120
200.0
100
80
60
100.0
40

Use ofleverage• Appropriate return of capital• Diversification of purchasing methods

20

0

0.0
FY2011
2011 FY2012
2012 FY2013
2013 FY2014
2014 FY2015
2015 FY2016
2016 FY2017
2017 FY2018
2018 FY2019
2019 FY2020
2020

Improvement of ROE
26

Financial Results for FY2020
Counter Measures for Profitability Enhancement

11th Medium-Term Business Plan
FY2021 Forecast of Business Results
Reference: Contribution to the SDGs

27

FY2021 Forecast ofBusiness Objectives

Business Results In view of the market recovery and other factors, Ryosan forecasts an increase in net sales in FY2021 by+1.4% YoY.
 Net profit is expected to decline 43% YoY, partly due to the lack of appropriation of extraordinary income
such as income from sale of investment securities, which occurred in FY2020.
 At this point the forecast does not take into account the impact of product-delivery effects from incidents
such as a fire at a Renesas Electronics plant.
（単位：億円）FY2020(Unit: ¥Bil)

1st Half

FY2021 Forecast
Full Year

1st Half

Change(FY2021-2020)

Full YearNet Sales

97.1

219.8

110.0

223.0

+1.4%

Gross Profit

8.1

19.0

9.0

18.3

–3.8%

Operating Income

1.2

4.6

1.6

3.7

–20.1%(% of Net Sales)(1.3%)(2.1%)(1.5%)(1.7%)(–0.4pt)

Ordinary Income

1.6

5.1

1.7

3.7

–27.8%(% of Net Sales)(1.7%)(2.3%)(1.5%)(1.7%)(–0.6pt)

1.4

4.5

1.2

2.6

–43.3%(% of Net Sales)(1.5%)(2.1%)(1.1%)(1.2%)(–0.9pt)

EPS (¥)

63.90

195.7851.22

110.98–43.3%US Dollar Average Rate(¥)

106.92106.06100.00100.00–5.7%

Net Profit

28

Overview of Business Forecast by Business Segments

FY2021 Forecast ofBusiness Results

In the forecast of full-year net sales in the Semiconductors business in FY2021, Ryosan expects sales to increase YoY, intandem with the recovery in the automotive market. Operating income is expected to decline 26% YoY, as logistical costs
rise and inventory-related expenses normalize.
 In the Electronic Components business, consumer sales, which were favorable in the previous fiscal year, are expected to
decline in FY2021 as demand related to the stay-at-home lifestyle has run its course. Both sales and income are expected
to decline YoY.
（単位：億円）
In the Electronic Equipment business, large projects in information & communications are expected to launch in the second
half of FY2021. Both sales and income are forecast to increase YoY.
FY2020(Unit: ¥Bil)

Semiconductors

1st Half

Total

Full Year

Full Year

1st Half

Change(FY2021-2020)

Net Sales

57.2

131.8

66.5

134.0

+1.6%

Operating Income

0.46

2.03

0.65

1.50

–26.1%(% of Net Sales)(0.8%)(1.5%)(1.0%)(1.1%)(–0.4pt)

34.0

75.6

37.2

73.5

–2.9%

0.97

2.55

1.10

2.30

–10.1%(2.8%)(3.4%)(3.0%)(3.1%)(–0.3pt)

Net Sales

5.8

12.3

6.3

15.5

+25.5%

Operating Income

0.03

0.18

0.10

0.40

+114.5%(% of Net Sales)(1.9%)(1.5%)(1.6%)(2.6%)(+1.1pt)

Net Sales

97.1

219.8

110.0

223.0

+1.4%

Operating Income

1.25

4.62

1.60

3.70

–20.1%(% of Net Sales)(1.3%)(2.1%)(1.5%)(1.7%)(–0.4pt)

Net Sales
Electronic
Components Operating Income(% of Net Sales)
Electronic
Equipment

FY2021 Forecast

29

FY2021 Forecast of

Forecast of Return to Shareholders

Business Results In tandem with an upward revision of net profit for FY2020 on April 30, 2021, the most recent forecast of
the year-end ordinary dividend for FY2020 is ¥30 per share. A special dividend of ¥40 will also be
distributed. Including an interim dividend of ¥30, the total dividend for FY2020 is ¥100 per share.
Dividend payout ratio is 51%.
 The forecast of total dividend for FY2021 is ¥60 per share.
Dividend per Share
Ordinary Dividend

Special Dividend

Dividend (yen)

242%

100

157%
75

Dividend Payout Ratio

75
51%

25

54%

70

25
40

50

50

50

50
30

30

30

30

30

Year-end

InterimYear-end

InterimYear-end

0InterimYear-end
FY2018Interim

FY2019FY2020

FY2021 (Forecast)30

Financial Results for FY2020
Counter Measures for Profitability Enhancement

11th Medium-Term Business Plan
FY2021 Forecast of Business Results
Reference: Contribution to the SDGs

31

Reference: Contribution to SDGs (1/2): Identifying Materialities

Reference:Contribution
to the SDGs

 Ryosan aims to achieve sustainable growth together with customers, suppliers, employees, shareholders
and other stakeholders, by creating confidence and the best fit in the electronics domain.
 Ryosan is committed to contributing to the Sustainable Development Goals (SDGs) in ways that lead tosolutions for social issues.
Growthstrategy
123BusinessInnovation

NetworkInnovation

ChannelInnovation

Overview

Materialities/*Reasons for identification

Delivering new businessmodels and value-added
through risk-taking

Measures toward a low-carbon society and a recycling
economyStrengthening Ryosan’svalue network to serve
customers’ wide-ranging
needs

Overhaul of supply chains to supply customers with thebest possible products and services

Expanding Ryosan’s
network of customers inJapan and overseas byreorganizing andstrengthening its sales
channels

Reliable and responsible governance*Need to strengthen compliance Group-wide

SDGs*Promote a low-carbon society using Ryosan’s
capabilities in solutions and technology*Promote reduction of environmental impact across theentire supply chain

Decent work, health and workstyle innovation*Decent work and good health as the wellspring ofenterprise vitality

32

Reference:Contribution
to the SDGs

Reference: Contribution to SDGs (2/2):
Opportunities and Risks in Materialities
Materiality

Opportunities

Measures toward ・Promotion of energy-saving
consumer electronics by applying
a low-carbon
inverter solutions in overseas
society and amarkets
recycling
economy・Supply of collaborative robots as asolution for labor shortages

Risks

Aim

・Strengthened restrictions on the scope •of business activities amid tightening
environmental regulations

Contribution to solutions tosocial issues and formation ofa sustainable society byadding value in electronics
and technology

・Increased cost of doing business fromdepletion of energy and resources

・Providing solutions to meet demandfor energy generation, recharging
and energy storage
・Providing technical value-added in・Loss of stakeholder trust if violations •Overhaul ofthe mobility and FA fields
of human rights occur
supply chains to
supply・Contributing to improvement ofcustomers withlogistical functions in preparation forthe best possible
the post-COVID-19 world
products andservices
・Improvement of enterprise value
・Loss of stakeholder trust if information •Reliable andthrough practicable corporate
security breaches occur
responsible
governance (proactive risk-taking)governance・Increased cost of risk management

Decent work,
health andworkstyleinnovation•
・Workstyle and office innovation to
・Reduction in productivity andimprove productivity and motivation
motivation if Ryosan cannot respondand form dynamic workplaces
to social needs

Establishment of responsible
supply systems throughoptimization of products andservices and reduction ofenvironmental impact;
contribution to fulfilling andaffluent living
Contributing to a sustainable
society through synergies
between strengthened
governance and businessdevelopment
Provision of new business
and workstyle innovation topromote active use of
personnel and enhanced
motivation

33