May 9, 2014

Consolidated Earnings Report for Fiscal 2013, Ended March 31, 2014
Company name:Securities code:
Representative:
Inquiries:

Ryosan Company, Limited
8140
Naoto Mimatsu, President
Hidekazu Sano
Director and General Manager
Financing and Accounting Headquarters
Scheduled date of the Annual General Meeting of Shareholders
Scheduled payment date of for fiscal year-end dividend:
Scheduled filing date of the Annual Securities Report:

Stock listing: First Section, Tokyo Stock Exchange(URL http://www.ryosan.co.jp)

TEL: +81-3-3862-2591
June 20, 2014
June 4, 2014
June 23, 2014
(Millions of yen rounded down)

1. Consolidated results for the fiscal year ended March 31, 2014 (April 1, 2013 to March 31, 2014)(1) Consolidated operating results(% figures represent year-on-year increase or decrease)
Net sales

Operating income

Millions of yen%

Millions of yen

Ordinary income%

Net income

Millions of yen%

Millions of yen

Fiscal 2013
238,399
15.4
5,144
40.0
5,052
22.9
Fiscal 2012
206,534
(5.2)
3,673
4.6
4,111
(8.1)
(Note) Comprehensive income
FY2013:5,074 million yen (8.2%) FY2012:4,687 million yen (158.6%)
Net income
Net income per
Ordinary income
Return on equity
per shareshare after dilution
to net assets
Yen

Yen

%

Fiscal 2013
101.86－
2.7
Fiscal 2012
84.40
－
2.4
(Reference) Equity in earnings (losses) of non-consolidated subsidiaries and affiliates:
FY2013 － million yen,
FY2012 － million yen

%

3,222
2,814

14.5
48.2

Operating income
to net sales

%

%

3.1
2.5

2.2
1.8

(2) Consolidated financial position
Total assets
March 31, 2014
March 31, 2013
(Reference) Shareholders equity:
March 31, 2014:

Net assets tototal assets

Net assets

Net assets
per share

Millions of yen

Millions of yen%

Yen

169,247
160,220

118,729
116,72270.2
72.9

3,773.51
3,595.42

118,729 million yen,March 31, 2013:

116,722 million yen(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal 2013
Fiscal 2012

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at the end of the period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

1,504
17,689

(435)
2,485

(2,285)(4,483)49,91150,463

2. Dividends(Record date)Fiscal 2012
Fiscal 2013
Fiscal 2014
(Forecast)End of
1Q－－－

Dividends per share (Yen)End of
End of
End of
2Q
3Q
4Q
30.00
－
30.00
30.00
－
30.00
35.00

－

35.00

Annual
60.00
60.00
70.00

(Millions of yen rounded down unless otherwise stated)
Dividends to net
Dividends
Payout ratio
assets ratio(Full fiscal year)(consolidated) %(consolidated) %
1,977
71.1
1.7
1,887
58.9
1.6
64.8

3. Forecast of results for the fiscal year ending March 31, 2015 (April 1, 2014 to March 31, 2015)(% figures for the full fiscal year represent year-on-year increase or decrease,% figures for the interim period are the increase / (decrease) for the corresponding period of the previous fiscal year)
Net Income
Net Sales
Operating Income Ordinary Income
Net Income
per Share
Millions of yen

Interim period
Full Fiscal Year112,000
227,000% Millions of yen

0.8
(4.8)

2,300
5,100

%

Millions of yen%

Millions of yen

%

Yen

4.2
(0.9)

2,400
5,300

11.5
4.9

1,500
3,400

11.9
5.5

47.67
108.06※ Notes(1) Transfer of major subsidiaries during term (transfer of specified subsidiaries in line with changes in the consolidated range): No(2) Restatement of changes in accounting principles/changes and revisions in accounting estimate
1. Changes in accordance with revisions to accounting standards and related practices of accounting principles: Yes
2. Changes in items of accounting principles other than 1. above: No
3. Changes in accounting estimate: No
4. Restatement of revisions: No(Note) The above are subject to the provisions of Article 14-7 (cases where it is difficult to distinguish changes in accounting
principles from changes in accounting estimates) in “Regulation for Terminology, Forms and Preparation of Consolidated
Financial Statements”. For details, please refer to page 18 in appendix “4. Consolidated Financial Statements (5) Notes on
Consolidated Financial Statements (Changes in Accounting Principles)”.
(3) Number of shares issued and outstanding (Common stock)
1. Total number of shares issued and outstanding (including treasury stock) as of the period-end:
March 31, 2014: 31,500,000 shares

March 31, 2013: 34,500,000 shares

2. Total number of treasury stock as of the period-end:
March 31, 2014: 36,209 shares

March 31, 2013: 2,035,794 shares

3. Average number of shares outstanding during the period
March 31, 2014: 31,633,981 shares

March 31, 2013: 33,349,950 shares(Reference) Overview of non-consolidated operating results
1. Non-consolidated results for the fiscal year ended March 31, 2014 (April 1, 2013 to March 31, 2014)(1) Non-consolidated operating results(% figures represent year-on-year increase or decrease)
Net sales
Millions of yen

Fiscal 2013
Fiscal 2012%

154,429
145,0196.5(9.7)

Net income
per share
Fiscal 2013
Fiscal 2012

Operating income
Millions of yen

Ordinary income
%

1,429
1,264

13.1
(37.5)

Millions of yen

2,538
2,768

Net income%(8.3)(40.5)

Millions of yen

%

1,514
1,940

(22.0)(10.0)Net income pershare after dilution
Yen

Yen

47.87
58.19

－
－

(2) Non-consolidated financial position
Total assets

Net assets

Net assets tototal assets

Net assets
per share

Millions of yen

Millions of yen%

Yen

March 31, 2014
140,267
March 31, 2013
137,309(Reference) Shareholders equity:
March 31, 2014: 103,622 million yen,

103,622
105,12373.9
76.6

3,293.39
3,238.12

March 31, 2013: 105,123 million yen

Presentation concerning implementation status of auditing procedures
Financial results for the fiscal year ending March 31, 2014 are not the subject of an auditing procedure based on the
Financial Instruments and Exchange Act, and at the point in time when these financial results were disclosed, auditing
procedures for consolidated financial statements are ongoing.
Caution with respect to forward-looking statements:
1. The forward-looking statements such as result forecasts in these materials are based on information available to us at
this moment and on certain preconditions considered reasonable. We make no representations as to their futureachievement. Therefore, the actual operating results and other achievements may differ significantly from such statements
due to various future factors. For the preconditions of our forward-looking statements and matters to be noticed whenusing the forecast, please refer to page 2 in appendix "1. Analysis of Operating Results and Financial Condition (1)Analysis of Operating Results for Fiscal 2013".
2. We will host Security Analyst and Institutional Investor Conference on Tuesday, May 27, 2014. Presentation materials
for results briefing for the conference will be posted on the company's homepage promptly after the conference.

○Table of contents of the appendix
1. Analysis of Operating Results and Financial Condition ................................................................................................................... 2(1)Analysis of Operating Results for Fiscal 2013 ....................................................................................................................... 2(2)Analysis of Financial Condition ............................................................................................................................................. 3(3)Basic Policy Regarding the Allocation of Profits/Dividends for Fiscal 2013 and Fiscal 2014............................................... 5(4)Business Risks ....................................................................................................................................................................... 5
2. The Ryosan Group ........................................................................................................................................................................... 7
3. Management Policies ....................................................................................................................................................................... 9(1)Fundamental Management Policies........................................................................................................................................ 9(2)Targeted Management Indicators ........................................................................................................................................... 9(3)Medium - and Long-term Management Strategies and Issues to be Addressed ..................................................................... 9
4. Consolidated Financial Statements .................................................................................................................................................. 11(1) Consolidated Balance Sheets ................................................................................................................................................ 11(2) Consolidated Statements of Income and Consolidated Comprehensive Statements of Income ............................................ 13(Consolidated Statements of Income) ................................................................................................................................. 13(Consolidated Comprehensive Statements of Income) ....................................................................................................... 14(3) Consolidated Statements of Changes in Net Assets .............................................................................................................. 15(4) Consolidated Statements of Cash Flows ............................................................................................................................... 17(5) Notes on Consolidated Financial Statements ........................................................................................................................ 18(Notes Regarding Going Concern) ..................................................................................................................................... 18(Changes in Accounting Principles).................................................................................................................................... 18(Notes on Consolidated Balance Sheets) ............................................................................................................................ 18(Notes on Consolidated Statements of Income) .................................................................................................................. 19(Notes on Consolidated Comprehensive Statements of Income) ........................................................................................ 19(Tax-effect Accounting) ...................................................................................................................................................... 20(Segment Information)........................................................................................................................................................ 21(Per Share Information) ...................................................................................................................................................... 23(Important Subsequent Events) ........................................................................................................................................... 23
5. Other ................................................................................................................................................................................................ 24(1) Manufacturing, New orders and Sales ................................................................................................................................ 24(2) Geographical Segment Information .................................................................................................................................... 24(3) Changes of Directors........................................................................................................................................................... 25-1-

1. Analysis of Operating Results and Financial Condition(1) Analysis of Operating Results for Fiscal 2013 (the Fiscal Year Ended March 31, 2014)(Operating Results for Fiscal 2013)
1) Overview
In the fiscal year ended March 31, 2014, the economic environment was in general favorable, as although there
was a certain slowdown in the growth rate of the economies of the emerging countries such as China, European
economy managed to come out of the period of negative growth and the U.S. economy showed a steady
performance. As for the economy of Japan, it returned to a recovery tone thanks to several positive economic
factors such as the stimulative measures by Japanese government.
In these conditions, electronics industry continued to show a steady performance in the area of car-electronics andmobile terminals such as smartphones.
Under such circumstances, Ryosan Group has worked on “cultivating businesses to serve as 2nd and 3rd pillars,”“enhancing actions as a technology training company,” “enhancing actions in each business segment” and “further
reform of corporate structure” while setting “the pursuit of sustainable growth and sound management” as ourbasic stance of management for fiscal year 2013.
As a result of the above, the Ryosan Group reported the net sales of 238,399 million yen (up 15.4% from theprevious corresponding period), operating income of 5,144 million yen (up 40.0%), ordinary income of 5,052
million yen (up 22.9%), and net income of 3,222 million yen (up 14.5%) for results for fiscal year under review.
2) Business Segment Informationa. Semiconductors
We sell memories, system LSIs and discrete semiconductors, and develop system LSIs. In this consolidated fiscal
year, sales of system LSIs for in-vehicle electrical components and memories for smartphones, etc. increased,with net sales of 161,512 million yen (up 23.1% from the previous year) and operating income of 3,204 million
yen (up 65.6%).
b. Electronic Components
We sell display devices, power supplies and electromechanical components. In this consolidated fiscal year, salesof electromechanical components for in-vehicle electrical components and smartphones, etc. increased, with net
sales of 54,331 million yen (up 6.5% from the previous year) and operating income of 1,467 million yen (up21.9%).
c. Electronic Equipment
We sell systems equipment and facilities equipment. In this consolidated fiscal year, sales of system equipment
for in-vehicle electrical components, etc. decreased, with net sales of 17,497 million yen (down 10.4% from theprevious year) and operating income of 709 million yen (down 16.8%).
d. Ryosan Products
We produce and sell heat sinks (devices that dissipate the heat generated by semiconductors). In this consolidated
fiscal year, sales of heat sinks for white goods, etc. increased, with net sales of 5,057 million (up 4.6% from theprevious year), but an operating loss of 53 million yen was posted.
The aforementioned amounts do not include consumption and other taxes.

-2-

(Outlook for the Next Fiscal Period)
1) Projected Operating Results
Looking ahead, we forecast strong growth in the US economy and recovery in the European economy. However,
we assume that uncertain economic conditions will continue due to slowed growth in emerging nations andconcern for a temporary economic downturn in Japan due to the increase in consumption tax.
Against the backdrop of this forecasted operating environment, the Ryosan Group has positioned FY2014 as thefirst year of our 9th Medium-Term Management Plan (FY2014 to FY2016). We will steadily implement thestrategic themes of our plan and strive to improve corporation value.
On this basis, operating forecasts for the fiscal year ending March 31, 2015 are as follows:

Net sales
Operating income
Ordinary income
Net income

Millions of yen
227,000
5,100
5,300
3,400

YoY change [%]Decrease 4.8
Decrease 0.9
Increase 4.9
Increase 5.52) Projected Operating Results by Business Segment
a. Semiconductors
In the Semiconductors segment, Ryosan is projecting decreased sales of memories for smartphones, etc. Sales inthis segment are expected to come to 147,000 million yen (down 9.0% from the previous year), with an expected
operating income of 3,150 million yen (down 1.7%).
b. Electronic Components
In the Electronic Components segment, Ryosan is projecting increased sales of electromechanical components
for in-vehicle electrical components and white goods, etc. Sales in this segment are expected to come to 56,000
million yen (up 3.1% from the previous year), with an expected operating income of 1,550 million yen (up5.7%).
c. Electronic Equipment
In the Electronic Equipment segment, Ryosan is projecting increased sales of servers and system equipment for
multifunction color printers, etc. Sales in this segment are expected to come to 19,500 million yen (up 11.4%
from the previous year), however, operating income is expected to come to 550 million yen (down 22.4%).
d. Ryosan Products
In the Ryosan Products segment, although transfer of the heat sink production business to Sankyo Tateyama, Inc.
scheduled for September 1, 2014, Ryosan will continue sales activities for heat sinks as an agent. Sales in thissegment are expected to come to 4,500 million yen (down 11.0% from the previous year), with an expected
operating income of 100 million yen.
(2) Analysis of Financial Condition(Analysis of Assets, Liabilities, Net Assets and Cash Flows)
1) Status of Assets, Liabilities and Net Assets as of March 31, 2014a. Assets
Total assets as of March 31, 2014 stood at 169,247 million yen, an increase of 9,026 million yen compared withthe end of the previous fiscal year. This was mainly due to increases of 7,051 million yen in trade notes andaccounts receivable and 2,659 million yen in merchandise and finished products.
b. Liabilities
Total liabilities increased by 7,019 million yen compared with March 31, 2013 to reach 50,517 million yen. This-3-

was mainly due to increases of 5,047 million yen in trade accounts payable and 2,796 million yen in short-termloans in foreign currency.
c. Net Assets
Net assets increased by 2,006 million yen compared with March 31, 2013 to reach 118,729 million yen. This was
mainly due to increases of 3,222 million yen in net income, 1,148 million yen in foreign currency translation
adjustments and 700 million yen in net unrealized gain on other marketable securities, while cash dividends paidcame to 1,917 million yen and acquisition of treasury stock to 1,800 million yen. The ratio of net assets to total
assets fell from 72.9% at the end of the previous fiscal year to 70.2% as of March 31, 2014.
2) Status of Cash Flows
Cash and cash equivalents as of March 31, 2014 stood at 49,911 million yen; a decrease of 551 million yen
compared with the end of the previous fiscal year.
a. Cash Flows from Operating Activities
Regarding cash flow from operating activities in this consolidated fiscal year, with net income before income taxes
being 5,093 million yen, funds in total increased by 1,504 million yen. This is due to accounts payable increasing
by 3,753 million yen, which offset an increase in accounts receivable of 4,909 million yen and an increase ininventories of 1,515 million yen. In the net cash provided by (used in) operating activities in the previous
consolidated fiscal year, there was an increase of funds by 17,689 million yen.
b. Cash Flows from Investing Activities
Regarding cash flow from investing activities in this consolidated fiscal year, there was a decrease of funds by 435
million yen due mainly to purchases of fixed assets. In the net cash provided by (used) in investing activities in theprevious consolidated fiscal year, there was an increase of funds by 2,485 million yen.
c. Cash Flows from Financing Activities
Regarding cash flow from financing activities in this consolidated fiscal year, with dividend paid and acquisitionof treasury stock being 1,915 million yen and 1,800 million yen respectively, funds in total decreased by 2,285
million yen despite an increase of 1,597 million yen in short-term loans in foreign currency. In the net cash
provided by (used in) financing activities in the previous consolidated fiscal year, there was a decrease of funds by
4,483 million yen.
(Reference) Trends in cash flow-related indicators
Fiscal 2009
Net assets to total assets (%)
Net assets to total assets (%)(Market capitalization basis)
Cash flow to Interest-bearing
Liabilities (Years)
Interest coverage ratio (Times)

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

72.5

72.0

69.2

72.9

70.2

50.8

42.2

33.3

36.6

40.5

0.9

_

_

0.7

10.4

101.4

_

_

97.9

9.1

Net assets to total assets: Net assets / Total assets
Net assets to total assets (Market capitalization basis): Market capitalization / Total assets
Cash flow to Interest-bearing liabilities: Interest-bearing liabilities / Cash flow
Interest coverage ratio: Cash flow / Interest expense*All indicators have been calculated from consolidated financial figures.
*Market capitalization was calculated based on the number of shares issued and outstanding less treasury stock.
*Cash flow refers to cash flows from operating activities as shown on the consolidated statements of cash flows.
*Interest-bearing liabilities comprise all debt on which interest was paid in the liabilities section of the consolidatedbalance sheets. Interest expense represents interest paid as shown on the consolidated statements of cash flows.
-4-(3) Basic Policy Regarding the Allocation of Profits / Dividends for Fiscal 2013 and Fiscal 2014
【Basic Policy Regarding the Allocation of Profits】
Ryosan recognizes that the return of profits to shareholders is an important business priority. At the same time, theCompany works to increase net income per share. Accordingly, Ryosan’s fundamental policy is to continue highdividend payout in profits returned to shareholders, and the Company is targeting a consolidated dividend payout
ratio of 50% or more. With regard to purchasing of own shares, the Company plans to make decisions in an
integrated manner, with consideration given to trends in consolidated results and other matters.
【Dividends for Fiscal 2013 and Fiscal 2014】
For the fiscal year ended March 31, 2014, Ryosan has declared a fiscal year-end ordinary dividend of ¥30 per share.
Together with the interim ordinary dividend, the Company will make an ordinary dividend payment for the full
fiscal year of ¥60 per share.
Ryosan is forecasting ordinary dividend payment of ¥70 per share in its full fiscal year for the fiscal year ending
March 31, 2015 (an interim ordinary dividend of ¥35 per share and a fiscal year-end ordinary dividend of ¥35 pershare).
(4) Business Risks
The Ryosan Group, its performance, share price, and financial position, are subject to a variety of potential risks,some of which are detailed briefly as follows.
Forward-looking statements contained in this section represent judgments of Ryosan Group’s management based on
information available as of the end of fiscal 2013 (March 31, 2014).
1) Sudden Changes in the Economic Environment
The Ryosan Group’s consolidated revenues are derived from the level of demand generated by customers of device
manufacturers. Against this backdrop, the Group’s performance is necessarily impacted by changes in economic
conditions in those countries and regions in which Ryosan’s principal clients operate. As a result, Ryosan’s performanceand its financial position can be expected to deteriorate in the event of economic downturn and a resulting slowdown indemand in its principal markets, such as Japan, Asia and other regions.

2) Contracts with Suppliers
The Ryosan Group has concluded agency agreements with several suppliers inside and outside Japan. We havemaintained good business relations with them, but if it becomes difficult to continue these agreements due to therestructuring of suppliers’ businesses, including M&A etc, and the revision of sales channel strategies, this may cause
adverse effects on the business performance and financial status of Ryosan Group.

3) Exchange Rate Fluctuation
The Ryosan Group engages in the manufacture and sale of products across a number of regions including Japan, Asia andother countries. In preparing consolidated financial statements, sales, expenses, assets and liabilities, denominated inforeign currencies are translated into yen as of the Company’s balance sheet date. In principle, appreciation of the yen
against major currencies impacts negatively on Ryosan’s performance, while a weak yen impacts favorably. As a result,
Ryosan’s consolidated operating results and financial position are subject to fluctuations in foreign exchange rates.

4) Overseas Business Risk
The Ryosan Group does not operate in Japan alone. It also operates overseas, mainly in Asia. As a result it is exposed to
the following risks. The materialization of any of the following risks could adversely affect the Ryosan Group’s operating
results and its financial position.
a. Unforeseen changes in statutory and regulatory requirements and adverse changes in tax requirementsb. Inadequate and insufficient local infrastructure in the countries in which the Ryosan Group operatesc. Development of adverse political factors
d. Social unrest arising out of war, acts of terrorism and other developments5) Capital Market Volatility
As a part of its business activities the Ryosan Group holds shares in certain financial institutions, customers and suppliers,
and is therefore susceptible to stock price fluctuations. Ryosan does not, however, adopt specific methods as a hedge
against movements in stock prices. Accordingly, Ryosan’s performance and financial position are subject to substantial-5-changes in stock markets.

6) Liability for Retirement Benefits
Ryosan accounts for retirement benefit expenses and the liability for retirement benefits using certain assumptions andan expected rate of return applicable to the Group’s pension plan assets for actuarial projections. In the event that theactual obligation differs from the projected obligation or there is a change in the assumptions leading to the calculationof the projected obligation, the difference in retirement benefit expenses and the liability for retirement benefits are
accrued and amortized over a generally accepted period. As a result, any significant decline in the discount rate andexpected rate of return applicable to the Group’s pension plan assets can impact its performance and financial position.

7) Natural Disaster
The suspension of sales and production due to facility damage or power or water supply shortages caused by suchnatural disasters as earthquakes or typhoons or accidental disasters such as fire may adversely affect the businessshowings and financial standings of the Group. Also, if partners are damaged and the purchase and sale of merchandise
is interrupted, the business showings of the Group may be adversely affected.

-6-2. The Ryosan GroupThe Ryosan Group comprises Ryosan Company, Limited (“Ryosan” or “the Company”), 18 consolidated subsidiaries
and 1 non-consolidated subsidiary.
Ryosan operates as a trading house that specializes in semiconductors, electronic components and electronicequipment, which it sells to manufacturers of electronic equipment and other customers both domestically andoverseas. Ryosan also develops, manufactures and sells its own-brand products.
The following table provides an overview of industry segments and the activities of Ryosan and its
consolidated subsidiaries.
Development andSegment
Main Products
Sales Companies
Manufacturing Companies
Ryosan Company, Limited
Memories
System LSIs
Saxis Company, Limited
Semiconductors
Discretesemiconductors
Gyronics Company, Limited

Electronic
Components

Display devices
Power supplies
Electromechanicalcomponents

EC Ryosan Company, Limited

HONG KONG RYOSAN
LIMITEDSHEN LING ELECTRONICS(SHENZHEN) CO., LTD.

Electronic
Equipment

Systems equipment
Facilities equipment

ZHONG LING
INTERNATIONAL TRADING(SHANGHAI) CO., LTD.
DALIAN F.T.Z RYOSANINTERNATIONAL TRADING
CO., LTD.
RYOTAI CORPORATIONSIGAPORE RYOSAN PRIVATELIMITED

Ryosan Products

Heat sinks
RYOSAN IPC (MALAYSIA)(devices that dissipate
SDN. BHD.
the heat generated bysemiconductors)
RYOSAN (THAILAND)
CO., LTD.

Ryosan Company, Limited
RYOSAN ENGINEERING(THAILAND) CO., LTD.
RYOSAN ENGINEERING(M) SDN.BHD.
RYOSAN ELECTRONICS(FOSHAN) CO., LTD.

KOREA RYOSANCORPORATIONRYOSAN TECHNOLOGIES USA
INC.
RYOSAN EUROPE GMBH
Note: CentrAct Corporation has been completed the liquidation procedure as of September 30, 2013
following the dissolution as of March 31, 2013.

-7-

The Group’s organization chart is provided as follows
Sale

Sale

RYOSAN ELECTRONICS(FOSHAN) CO., LTD
Provision of Finished Products

Provision of
Merchandise

HONG KONG RYOSAN
LIMITED

Sale

Provision of
Merchandise
Provision of
Merchandise

Provision of
MerchandiseIntermediarysales
Gyronics Company, Limited

Intermediarysales

Provision ofservices
EC RYOSAN COMPANY,
LIMITEDIntermediarysales

Provision of
MerchandiseSale

DALIAN F.T.Z RYOSANINTERNATIONAL TRADING

SaleCO., LTD.

SHEN LING
ELECTRONICS (SHENZHEN)
CO., LTD.

Provisionof services
KOREA RYOSANCORPORATIONRYOTAI CORPORATION

Provision of
Merchandise
Provision of
Merchandise
Provision of
Merchandise

Provisionof services

Sale

Sale

RYOSAN (THAILAND)
CO., LTD.

Sale

SINGAPORE RYOSANPRIVATE LIMITED

Sale

Provision of
Finished Products
Provision of
Merchandise

Provision of
MerchandiseRYOSAN ENGINEERING(THAILAND)CO.,LTD.

SaleRYOSAN IPC(MALAYSIA)
SDN. BHD.

Sale

Provision of
Finished Products
RYOSAN ENGINEERING(M) SDN. BHD.
Provision of
Merchandise

Provision of
Merchandise

-8-

Sale
RYOSANUSA INC.

TECHNOLOGIESSaleRYOSAN EUROPE GMBH

Overseas Customers

Customers in Japan

Provision ofservices

Intermediary sales

Saxis Company, Limited

Intermediary sales

Intermediarysales

RYOSAN COMPANY, LIMITED

Provision ofservices

ZHONG LING
INTERNATIONAL TRADING(SHANGHAI) CO., LTD.

3. Management Policies(1) Fundamental Management Policies
Since our establishment, we have always been highly conscious of the fact that the corporation is a public
institution. In addition, we now no longer see ourselves simply as a trading company, but as an electronic systems
coordinator, providing a vital link between our customers’ needs and electronics technology. We aim to achieve
consistent long-term growth by stressing this social consciousness and our new role as a systems coordinator.
Three functions are vital to fulfilling our ambition of becoming an electronics system coordinator—the Information
Function (supplying data), the Solutions Function (supplying technology), and the Distribution Function (supplying
logistics). By constantly enhancing these three functions, Ryosan will raise customer satisfaction and increase its
existence value.
(2) Targeted Management Indicators
The Ryosan Group has adopted net income per share and consolidated dividend payout ratio as key management
indicators. Guided by these benchmarks, the Company aims to secure financial soundness while at the same time
pursuing further improvements in its corporate value. In particular, the Company seeks to achieve a consolidated
dividend payout ratio of 50% or higher.
(3) Medium- and Long-Term Management Strategies and Issues to be Addressed
The Ryosan Group conducts business in the electronics industry, where the advance of ICT (information andcommunications technology) has spurred an increase in horizontal specialization alliances in which corporations
utilize each other’s strengths. Also, in fields where modularization is advancing, there is an increase in the entry ofcorporation from other industries and the Company forecasts that competition will grow even more intense in the
future. Furthermore, as globalization continues, we forecast that the Japanese market will continue its slow growth
and that a growing number of Japanese corporations will shift production overseas and engage in overseas
procurement. Moreover, customer needs are diversifying from individual components to modules and to
OEM/ODM.
In this management environment, the Ryosan Group recognizes that we must address the issues of “reconstructing
our business portfolio,” “expanding our corporate activities on a global scale,” and “revising our profit/financial
structure.” For that purpose, we have positioned the 3-year period from FY2014 to FY2016 as our 9th
Medium-Term Management Plan. The basic stance of the plan is “innovation” and “growth.” We shall pursue abusiness model shift which responds to changes in our business structure and sustainable independent growth. To
implement this basic stance, we will focus on promoting Growth Strategies, Segment Strategies, and Infrastructure
Strategies as follows.
Growth Strategies consist of 1) further promotion of multi-vendor support to respond to customers’ diversifying
needs, 2) strengthening global support to expand overseas business, and 3) strengthening system solution
capabilities (capabilities in system engineering plus embedded systems) to create new business models.
Segment Strategies consist of the following actions in each of our 4 business segments.
In the semiconductors segment, we will seek to expand our business by strengthening design-in activities for
products of the major manufacturer Renesas Electronics and foreign semiconductor manufacturers.
In the electronic components segment, we will seek to expand our business in fields such as car electronics andindustry by augmenting sales promotion activities which are aligned with supplier strategy.
In the electronic equipment segment, we will seek to expand our business by strengthening our embedded systemcapability as a base for focusing on our system solution business which promotes module and component businessthrough new resources, as well as by strengthening our facilities equipment business through advancement of the 3business elements of hardware, materials and service.
In the Ryosan products segment, although transfer of the heat sink production business to Sankyo Tateyama, Inc.
scheduled for September 1, 2014, Ryosan will continue to focus on sales activities for heat sinks as an agent.
Also, with a focus on semiconductor technology that we have accumulated over a period of many years as atechnological trading company, the Ryosan Group will expand the field of technical support for electronic
components and embedded products, and shall strengthen system technological capability which supports systemsolution capability.
-9-Infrastructure strategies consist of reinforcing management in terms of quality in order to strengthen governance andstrengthen of our management structure in order to realize further global business activities.
In any case, by advancing the 9th Medium-Term Management Plan, fostering the necessary management
environment and overcoming issues which need to be addressed, the Ryosan Group shall heighten the value of ourexistence, obtain compensation commensurate to that value, and improve our business performance. By doing so,
we shall respond to the expectations of our many stakeholders, including shareholders.

- 10 -

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
Fiscal Year Ended
March 31, 2013
(As of March 31, 2013)

Fiscal Year Ended
March 31, 2014
(As of March 31, 2014)ASSETS
Current assets
Cash and deposits

50,46449,913

Trade notes and accounts receivable

68,10175,153Merchandise and finished products

18,793

21,452Work in process

141

91

Raw materials and stored goods

152

190

Accrued income

1,390

1,747

Deferred tax assets

514

271

Other current assets

243

213

Allowance for doubtful accounts

(106)

(126)

139,696

148,906

Buildings and structures

10,576

10,686

Accumulated depreciation(6,285)(6,532)

Buildings and structures (net)

4,290

4,154

Land

8,121

8,121

Lease assets

829

525

Accumulated depreciation

(495)

(197)

Lease assets (net)

333

327

Other fixed assets

4,554

4,536

Accumulated depreciation(4,028)(3,969)526

567

13,272

13,170

1,029

1,026

Investment securities

3,286

4,024

Deferred tax assets

947

309

Other

3,132

1,828

Allowance for doubtful accounts(1,045)(19)

Allowance for loss on investments

(98)

－

Total Investments and other assets

6,222

6,143

20,524

20,340160,220

169,247

Total current assets
Fixed assets
Property, plant and equipment

Other fixed assets (net)Total property, plant and equipment
Intangible fixed assets
Investments and other assets

Total fixed assets
Total assets- 11 -

(Millions of yen)
Fiscal Year Ended
March 31, 2013
(As of March 31, 2013)

Fiscal Year Ended
March 31, 2014
(As of March 31, 2014)

LIABILITIESCurrent liabilities
Trade accounts payable

25,26130,308

Short-term bank loans

12,85015,647

Lease obligations

138

122

Other Payable

841

756

1,069

1,199

Accrued income taxes

689

220

Other current liabilities

178

47

Total current liabilities

41,02848,303

242

248

2,149

－

Accrued expenses

Long-term liabilities
Lease obligations
Allowance for employees’ retirement benefits

1,844

Liability for employees’ retirement benefit
Other long-term liabilities

76

121

Total long-term liabilities

2,469

2,213

43,49850,517

Common stock

17,69017,690Additional paid-in capital

19,114

19,114Retained earnings

84,59080,918Treasury stock(3,789)(73)

Total shareholders’ equity

117,606

117,649

484

1,184

0

3

(1,368)(220)

Total liabilities
NET ASSETS
Shareholder’s equity

Other accumulated comprehensive incomes
Net unrealized gain on other marketable securities
Gain (loss) on deferred hedges
Foreign currency translation adjustments

111

Remeasurements of defined benefit plans
(883)

1,079

Total net assets

116,722

118,729

Total liabilities and net assets

160,220

169,247

Total other accumulated comprehensive incomes- 12 -

(2) Consolidated Statements of Income and Consolidated Comprehensive Statements of Income(Consolidated Statements of Income)(Millions of yen)

Net sales
Cost of Sales
Gross Profit
Selling, general and administrative expenses
Packing and freight expenses
Provision of allowance for doubtful accounts
Directors’ remuneration
Employees’ salaries
Bonuses
Retirement benefit expenses
Employee benefits
Depreciation and amortization
OthersTotal selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Commission fee
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expense
Loss on foreign exchange
Miscellaneous expenses
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of property, plant and equipment
Gain on sales of investment securities
Gain on sales of golf memberships
Reversal of allowance for investment loss
Total extraordinary gains
Extraordinary losses
Loss on sales of property, plant and equipment
Impairment loss
Loss on devaluation of investment securities
Loss on valuation of golf club membership
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before Minority interest in income
Net income- 13 -

Fiscal Year Ended Mar. 31, 2013
(Apr. 1, 2012 to Mar. 31, 2013)

Fiscal Year Ended Mar. 31, 2014
(Apr. 1, 2013 to Mar. 31, 2014)

206,534
189,868
16,666238,399
219,794
18,605

662
129
412
3,694
928
342
816
524
5,481
12,992
3,673

789
119
430
4,062
1,070
362
890
693
5,041
13,460
5,144

69
109
477
224
881

39
54
168
166
428

180
241
21
443
4,111

165
333
22
520
5,052

34
6
－
37
77

4
10
30
－
44

0
3
35
4
42
4,146
1,625
(293)
1,331
2,814
2,814

－
－
－
4
4
5,093
1,110
760
1,870
3,222
3,222

(Consolidated Comprehensive Statements of Income)(Millions of yen)

Income before Minority interest in income
Other comprehensive income
Net unrealized gain on other marketable securities
Gain (loss) on deferred hedges
Foreign currency translation adjustments
Total other comprehensive income
Comprehensive Incomes(Details)
Comprehensive incomes relating to shareholders of parental company
Comprehensive incomes relating to minority shareholders- 14 -

Fiscal Year Ended Mar. 31, 2013
(Apr. 1, 2012 to Mar. 31, 2013)

Fiscal Year Ended Mar. 31, 2014
(Apr. 1, 2013 to Mar. 31, 2014)

2,814

3,222

153
(2)
1,721

700
3
1,148

1,872
4,687

1,851
5,074

4,687
－

5,074
－

(3) Consolidated Statements of Changes in Net Assets
Fiscal Year Ended Mar. 31, 2013 (Apr. 1, 2012 to Mar. 31, 2013)(Millions of yen)
Shareholders’ equity
Common stock
Balance as of the beginningof the period
Increase (decrease) during
the period
Appropriation of
earnings as cash
dividends
Net income for theperiodAcquisition of treasury
stock
Disposal of treasury
stock
Transfer to additional
paid-in capital fromretained earnings
Net changes in items
excluding shareholders’equity during the period
Total increase (decrease)during the period
Balance as of the end of theperiodAdditional
paid-in capital

17,690Retained earnings

19,114

83,449(1,806)

118,447(1,673)(1,673)

2,814

2,814

(0)

(1,983)(1,983)

0

0
－

0

(0)

－

－

1,141

(1,983)(841)

17,69019,114

84,590(3,789)117,606

Other accumulated comprehensive incomes
Net unrealized
Foreign
Total other
Gain (loss)
gain on othercurrency
accumulated
on deferredmarketabletranslation
comprehensive
hedgessecurities
adjustments
incomes
Balance as of the
beginning of the period
Increase (decrease) during
the period
Appropriation of
earnings as cash
dividends
Net income for theperiodAcquisition of treasury
stock
Disposal of treasury
stock
Transfer to additional
paid-in capital fromretained earnings
Net changes in items
excluding shareholders’equity during the period
Total increase (decrease)during the period
Balance as of the end of
the period

Totalshareholders’equityTreasury stock331

2(3,090)(2,756)

Total net
assets

115,691(1,673)
2,814(1,983)
0
－

153

(2)

1,721

1,872

1,872

153

(2)

1,721

1,872

1,031

484

0

(1,368)(883)

116,722- 15 -

Fiscal Year Ended Mar. 31, 2014 (Apr. 1, 2013 to Mar. 31, 2014)(Millions of yen)
Shareholders’ equity
Common stock
Balance as of the beginningof the period
Increase (decrease) during
the period
Appropriation of
earnings as cash
dividends
Net income for theperiodAcquisition of treasury
stock
Retirement of treasury
stock
Change of scope of
consolidation
Net changes in items
excluding shareholders’equity during the period
Total increase (decrease)during the period
Balance as of the end of theperiod17,690Retained earnings

19,114

Total
shareholders’equityTreasury stock

84,590(3,789)117,606(1,917)(1,917)

3,222

3,222

(5,515)(1,800)(1,800)

5,515

－

539

539

－

－

(3,672)3,715

43

17,69019,11480,918(73)

117,649

Net unrealized
gain on othermarketablesecurities
Balance as of the
beginning of the period
Increase (decrease) during
the period
Appropriation of
earnings as cash
dividends
Net income for theperiodAcquisition of treasury
stock
Retirement of treasury
stock
Change of scope of
consolidation
Net changes in items
excluding shareholders’equity during the period
Total increase (decrease)during the period
Balance as of the end of
the period

Additional
paid-in capital

484

Other accumulated comprehensive incomes
Foreign
Gain (loss)
Remeasurements
currency
on deferredof definedtranslation
hedgesbenefit plansadjustments

Total otheraccumulatedcomprehensive
incomes

－

(883)

0

(1,368)

Total net
assets116,722(1,917)
3,222(1,800)
－
539
700

3

1,148

111

1,963

1,963

700

3

1,148

111

1,963

2,006

1,184

3

(220)

111

1,079

118,729- 16 -

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal Year Ended Mar. 31, 2013
(Apr. 1, 2012 to Mar. 31, 2013)

Fiscal Year Ended Mar. 31, 2014
(Apr. 1, 2013 to Mar. 31, 2014)

4,146
644
3
84

5,093
835
－
(1,017)

(152)

－

－

(172)

(37)
(178)
180
(34)
(6)
35
980
14,941
6,319(9,244)
1,306
18,989

－
(93)
165
(4)
(10)
－
598
(4,909)(1,515)
3,753
775
3,499

185
(183)
(1,302)
17,68992(159)(1,928)1,504

Investing activities
Net decrease (increase) in time deposits
Purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchases of intangible fixed assets
Purchases of investment securities
Proceeds of sale of investment securities
Capital stock paid-in
Proceeds from sales of investments in capital
Increase in loans
Proceeds from collection of loans
Purchase of insurance funds
Proceeds from cancellation of insurance funds
Net cash provided by (used in) investing activities

3,000
(214)
74
(153)
－
7
(3)
1
(7)
8
(427)
201
2,485

－
(226)
6
(146)
(10)
16
(9)
41
－
0
(106)
－
(435)

Financing activities
Increase (decrease) in short-term borrowings, net
Payment of refund of lease obligations
Repurchase of treasury stock
Proceeds from retirement of treasury stock
Cash dividends paid

(695)
(131)
(1,983)0(1,673)

1,597
(167)
(1,800)－(1,915)

Net cash used in financing activities
Effect of foreign currency translation adjustments on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents(4,483)(2,285)658

249

16,350(967)

Cash and cash equivalents at the beginning of the period

34,113－50,46350,463415
49,911

Operating activities
Income before income taxes
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in allowance for employees’ retirement
benefits
Increase (decrease) in liability for employees’ retirement
benefit
Increase (decrease) in allowance for loss on investments
Interest and dividend income
Interest expense(Gain) loss on sales and disposal of property, plant and equipment(Gain) loss on sales of investment securities(Gain) loss on devaluation of investment securities
Other (income) loss
(Increase) decrease in accounts receivable(Increase) decrease in inventories
Increase (decrease) in accounts payable
Increase (decrease) in other assets and liabilities
SubtotalInterest and dividends received
Interest paid
Income taxes (paid) refund
Net cash provided by operating activities

Increase in cash and cash equivalents of newly consolidated subsidiaries

Cash and cash equivalents at the end of the period- 17 -

(5) Notes on Consolidated Financial Statements(Notes Regarding Going Concern)
Not applicable.

(Changes in Accounting Principles)
Accounting Standard for Retirement Benefits (Corporate Accounting Standards No.26; May 17, 2012) and Policyon the Application of Accounting Standard for Retirement Benefits (Corporate Accounting Standards Application
Policy No.25; May 17, 2012) were applied from the end of the current consolidated accounting period (excluding
rules defined in main clause of Paragraph 35 of the Accounting Standard for Retirement Benefits and Paragraph
67 of the Policy on the Application of Accounting Standard for Retirement Benefits). Accordingly, we change toa method of recording an amount calculated by deducting pension plan assets from liability for retirement
benefits as a liability for employees’ retirement benefit. Furthermore, differences upon calculation of
unrecognized actuarial losses (gains) and unrecognized prior service expenses are recorded as a liability for
employees’ retirement benefit.
Regarding the application of Accounting Standard for Retirement Benefits, etc., we conform to the transitional
treatment defined in Paragraph 37 of Accounting Standard for Retirement Benefits. At the end of the current
consolidated accounting period, the amount of financial impact associated with these changes was added to or
subtracted from the remeasurements of defined benefit plans for other accumulated comprehensive income.
As a result, at the end of the current consolidated accounting period, 1,844 million yen in liability for employees’
retirement benefit were recorded, and other accumulated comprehensive income increased by 111 million yen.
(Notes on Consolidated Balance Sheets)(Millions of yen, figures less than ¥1 million have been omitted, unless otherwise stated)
As of March 31, 2013
1.

Accumulated depreciation of property, plant andequipment

2.

3.

4.

5.

As of March 31, 2014

10,80910,668Non-consolidated subsidiary and affiliated company
shares and other- Investment securities (shares)- Other (equity)

52
308

0
－

Assets pledged as collateral- Investment securities

83

107

490

－

34,500,000 common shares
2,035,794 common shares

31,500,000 common shares
36,209 common shares

Guarantee contingent liabilities
The unpaid balance of debt financing provided to
non-consolidated subsidiaries by financial institutions
guaranteed by the Company
Number of shares issued and outstanding
Number of treasury stock held by the Company- 18 -

(Notes on Consolidated Statements of Income)1.

Research and development expenditure included inselling, general and administrative expenses

2.

3.

Fiscal 2012

Fiscal 2013

(April 1, 2012 to March 31, 2013)(April 1, 2013 to March 31, 2014)

623

657

Breakdown of gain on sales of property, plant andequipment- Land- Other

31
2

－
4

Total

34

4

Breakdown of loss on sales of property, plant andequipment- Other

0

－

Total

0

－

(Notes on Consolidated Comprehensive Statements of Income)
Adjustments from recycling and tax effects in other comprehensive income
Fiscal 2012

Fiscal 2013

(April 1, 2012 to March 31, 2013)(April 1, 2013 to March 31, 2014)

202
35

799
(12)

238
(84)

787
(87)

153

700

(3)
1

5
(1)

(2)

3

Increase (decrease) during the period

1,721

1,148

Total other comprehensive Income

1,872

1,851

Net unrealized gain on other marketable securities
Increase (decrease) during the period:
Adjustments from recycling
Before tax effects adjustments
Tax effectNet unrealized gain on other marketable securities
Gain (loss) on deferred hedges:
Increase (decrease) during the period
Tax effectGain (loss) on deferred hedges
Foreign currency translation adjustments- 19 -(Tax-effect Accounting)
1. Breakdown of major causes of occurrence in deferred tax assets and deferred tax liabilities(Millions of yen unless otherwise stated)
Fiscal 2012

Fiscal 2013

(As of March 31, 2013)(As of March 31, 2014)

Deferred tax assets
Loss on valuation of inventories
Amortization of software and other
Investment securities
Golf membership rights
Accrued bonuses
Allowance for employees’ retirement benefits
Allowance for doubtful accounts

Loss brought forward of subsidiaries
Other
Sub-total deferred tax assets
Valuation reserve
Total deferred tax assets
Deferred tax liabilities
Net unrealized gain on other marketablesecurities
Other
Total deferred tax liabilities
Net deferred tax assets

135
59
145
111
199
719
323
333
360
2,390
(611)
1,779

167
31
261
98
214
670
2
125
255
1,827
(517)
1,310

(152)

(356)

(181)
(333)
1,445

(395)
(752)
557

Net deferred tax assets are included in the following items of the Company’s consolidated balance sheet.
Fiscal 2012

Fiscal 2013

(As of March 31, 2013)(As of March 31, 2014)

Current assets － Deferred tax assets
Fixed assets － Deferred tax assets
Long-term liabilities － Other long-term liabilities

514
947
(17)

271
309
(22)

2. Breakdown of major differences between the statutory tax rate and the effective tax rate after adoption oftax-effect accounting

Effective tax rate

Fiscal 2012

Fiscal 2013

(As of March 31, 2013)(As of March 31, 2014)

38.0(Adjustment)
Items not included in calculations of losses(e.g. entertainment expenses)
Items not included in gross profits (e.g. dividends)
Equal percent residential tax
Elimination of dividends received from consolidated
subsidiaries
Foreign withholding taxes
Change in valuation allowance
Difference in corporate tax rates from foreignsubsidiaries
Consolidated retained earnings
Other
Contribution percentage of corporate and othertaxes after ax effect accounting is applied

3.6
(1.8)
0.9
1.1
0.6
(5.5)

(%)
Information on the difference
between the statutory tax rate
and the effective tax rate is notpresented for the fiscal year
since the difference between
the statutory tax rate and theeffective tax rate was less than
5/100 and therefore considered
immaterial.

(6.9)
2.1
(0.0)
32.1

3. Adjustment for amounts of deferred tax assets and deferred tax liabilities due to changes in the corporate tax rate
The Law to Partially Amend the Income Tax Act (2014 Law No. 10) was enacted on March 31, 2014. From theconsolidated accounting period starting April 1, 2014, special corporate tax for reconstruction is no longer applied.
As a result, the normal effective statutory tax rate used when calculating deferred tax assets and deferred tax
liabilities decreases from 38.0% to 35.6% for the temporary difference for which annulment is forecasted in the- 20 -

consolidated accounting period starting April 1, 2014.
Due to this change in the tax rate, the amount of deferred tax assets (amount after deduction of deferred tax
liabilities) decreased by 33 million yen and the income taxes-deferred increased by the same amount.

(Segment Information)(a) Segment Information
1. Overview of our Reporting Segments
Ryosan Group’s reporting segments are created from financial information sorted by business segment, and the Chief
Executive Officer periodically conducts performance evaluations.
Ryosan Group has set up business headquarters at our head office for each merchandises and products, and we expand
our business activities by having each business headquarters formulate comprehensive strategies for the products thatthey handle, for both within Japan and overseas.
Therefore, with our business headquarters serving as our foundation, Ryosan Group has four reporting segments:“Semiconductors”, “Electronic components”, “Electronic equipment” and “Ryosan products”.
Main products of each business segment are as follows:
Semiconductors:
Memories, system LSIs, discrete semiconductors
Electronic components:
Display devices, power supplies, electromechanical components
Electronic equipment:
Systems equipment, facilities equipment
Ryosan products:
Heat sinks (devices that dissipate the heat generated by semiconductors)
2. Information Concerning Sales and Income or Loss Amount by Reporting Segment
For the consolidated fiscal year ended March 31, 2013
(April 1, 2012 to March 31, 2013)(Millions of yen, figures less than ¥1 million have been omitted)

Reportable Segment
Adjusted
amountConsolidated
incomestatement
amountSemiconductors

Electronic
components

Electronicequipment

Ryosanproducts

Total

131,172

51,00819,5194,833

206,534―

206,534

―

―

―

―

―

―

―

131,172
1,934

51,0081,204

19,519
853

4,833
12

206,534
4,004

―
(331)

206,534
3,673

Sales and operating income
Sales:
Sales to external
Customers
Internal sales between
segments, or exchange
Total
Segment income (loss)

Notes:
1. The adjustment of -331 million yen to segment income represents corporate expenses that are not allocated to eachreportable segment. The corporate expenses are included in administrative expenses instead of reportable segment.
2. Segment income has been adjusted with operating income in consolidated statements of income.
3. Segment asset is not shown in this reporting segment as it is not subject to CEO’s performance evaluation.
For the consolidated fiscal year ended March 31, 2014
(April 1, 2013 to March 31, 2014)(Millions of yen, figures less than ¥1 million have been omitted)

Reportable Segment
Adjusted
amountConsolidated
incomestatement
amountSemiconductors

Electronic
components

Electronicequipment

Ryosanproducts

Total

161,51254,331

17,497

5,057

238,399―

238,399

―

―

―

―

―

―

―

161,5123,204

54,331
1,467

17,497
709

5,057
(53)

238,399
5,327

―
(182)

238,399
5,144

Sales and operating income
Sales:
Sales to external
Customers
Internal sales between
segments, or exchange
Total
Segment income (loss)

Notes:
1. The adjustment of -182 million yen to segment income represents corporate expenses that are not allocated to each- 21 -

reportable segment. The corporate expenses are included in administrative expenses instead of reportable segment.
2. Segment income has been adjusted with operating income in consolidated statements of income.
3. Segment asset is not shown in this reporting segment as it is not subject to CEO’s performance evaluation.
3. Beginning from the current consolidated accounting period, we revised the allocation method for company-wide
expenses, etc. A portion of company-wide expenses, etc. for which allocation was previously not possible are now
allocated to each reporting segment according to applicable allocation standards.
Segment information for the previous consolidated accounting period shows numbers which were calculated based on
the allocation method for company-wide expenses, etc. after the change.

(b) Related Information
1. Information on products and services
As in the Reporting Segment
2. Information by region(1) Sales
For the consolidated fiscal year ended March 31, 2013
(April 1, 2012 to March 31, 2013)(Millions of yen)

Japan

Asia

Total

131,264
75,270Note: Sales amounts are based on the customer’s address and classified by country or region.

206,534

For the consolidated fiscal year ended March 31, 2014
(April 1, 2013 to March 31, 2014)
Japan
124,682

Asia

Other
105,810

Total
238,399

7,906

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:Asia:
China, Korea, Hong Kong, Thailand and others
Other:
United States and others(2) Property, plant and equipment
This information is not presented as the amount of Property, plant and equipment in Japan constitutes more than 90% of
the total amount of Property, plant and equipment on the consolidated balance sheet.
3. Information on each important customer
For the consolidated fiscal year ended March 31, 2013
(April 1, 2012 to March 31, 2013)(Millions of yen)

Customer NameNet Sales

Mitsubishi Electric Corporation

21,275

Related Segments
Semiconductors, Electronic
Components

For the consolidated fiscal year ended March 31, 2014
(April 1, 2013 to March 31, 2014)
Customer Name
Mitsubishi Electric Corporation

Net Sales
18,345- 22 -

Related Segments
Semiconductors, Electronic
Components(Per Share Information)(Yen unless otherwise stated)

1. Net assets per share
2. Net income per share

Fiscal 2012
(April 1, 2012 to March 31, 2013)

Fiscal 2013
(April 1, 2013 to March 31, 2014)

3,595.42
84.40

3,773.51
101.86

Note: Net income per share for the fiscal years ended March 31, 2013 and March 31, 2014 are calculated on thefollowing basis:(Millions of yen unless otherwise stated)

Net income
Net income applicable to common stock
Average number of shares for the period

Fiscal 2012
(April 1, 2012 to March 31, 2013)

Fiscal 2013
(April 1, 2013 to March 31, 2014)

2,814
2,814
33,349 thousand shares

3,222
3,222
31,633 thousand shares(Important Subsequent Events)
Not applicable.

- 23 -

5. Other(1) Manufacturing, New orders and Sales
1) Manufacturing(Millions of yen, figures less than 1 million yen have been omitted)
Fiscal 2012
(April 1, 2012 to March 31, 2013)

Fiscal 2013
(April 1, 2013 to March 31, 2014)

Heat sinks

3,966

4,521

2) New Orders(Millions of yen, figures less than 1 million yen have been omitted)
Fiscal 2012
(April 1, 2012 to March 31, 2013)

Fiscal 2013
(April 1, 2013 to March 31, 2014)

Semiconductors

127,633

166,971

Electronic components

50,23756,974

Electronic equipment

19,032

20,422

Ryosan products

4,706

5,101

201,640

249,469

Total(2) Geographical Segment Information
Fiscal 2012, the fiscal year ended March 31, 2013
(April 1, 2012 to March 31, 2013)(Millions of yen, figures less than ¥1 million have been omitted)
Japan

Asia

Eliminations
or corporate

Consolidated

206,534―

206,534

5,577(5,577)―

212,111
3,346(5,577)
326

206,534
3,673

Total

Sales:
139,884
66,649(1) Sales to external customers(2) Internal sales between
5,134
442
segments, or exchange
Total
145,019
67,092
Segment income
1,636
1,710
Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia:
Hong Kong, China, Taiwan, Thailand, Singapore and others

Fiscal 2013, the fiscal year ended March 31, 2014
(April 1, 2013 to March 31, 2014)(Millions of yen, figures less than ¥1 million have been omitted)
Japan

Asia

Other

Sales:
145,946
85,7006,753(1) Sales to external customers(2) Internal sales between
8,483
412
1
segments, or exchange
Total
154,429
86,112
6,754
Segment income
1,703
2,545
230
Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia:
Hong Kong, China, Thailand, Korea and others
Other:
United States and others- 24 -

Total

Eliminations
Consolidated
or corporate

238,399―

238,399

8,897(8,897)―247,297
4,480(8,897)664

238,399
5,144

(3) Changes of Directors (As of June 20, 2014)
1. Newly-appointed Director
Name
Iwao Sakamoto

New position

Current position

Director
General Manager, Administrative Headquarters

General Manager, Sales Administration Department, Sales
Planning and Control Headquarters

2. Director to be promoted
Name

Toshifumi Sakata

New position

Current position

Managing Director
General Manager, Engineering Headquarters
concurrently
General Manager, 1st Semiconductor Business
Headquarters

Director
General Manager, Engineering Headquarters concurrently
General Manager, 1st Semiconductor Business
Headquarters

3. Other personnel changes
Name
Hidekazu Sano

New position

Current position

Director
General Manager, Finance and Accounting
Headquarters

Director
General Manager, Finance and Accounting Headquarters
concurrently in charge of administration

4. Director to be retired
Name
Tsuyoshi Koyama

New position

Current position
Director
President, EC Ryosan Company, Limited

President, EC Ryosan Company, Limited- 25 -