FY2012 First Half Results Meeting
Results for the six months ended September 30, 2012
FY2012 : Year ending March 31, 2013

November 7, 2012

Ryosan Company, Limited

Code : 8140 / Stock listings: Tokyo Stock Exchange (First Section)
URL : http://www.ryosan.co.jp/eng/

Results for FY2012 First Half and Forecasts for Whole Financial Year

Management Efforts for Second Half of FY2012

Changes in Net Sales by Segment

Supplementary Material
NoticeBusiness forecasts and all statement related to the future contained in thispresentation are based on information currently possessed by the Company and on
certain assumptions which we judge to be rational. Actual business performance
may differ greatly depending on a variety of factors. The following is a list ofmajor 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

An Electronics Systems Coordinator・Substantial fluctuation in prices in capital markets

1

Results for FY2012 First Half and Forecasts for Whole Financial Year

Management Efforts for Second Half of FY2012

Changes in Net Sales by Segment

Supplementary MaterialAn Electronics Systems Coordinator

2Overview of Consolidated Results
Unit: 100 millions of yen

FY2011
1HFY2012

7.7

86＋4.387＋3.3132

6.1

64(2.9)

63

1935

1.6

21＋34.6

2023

44

2.1

25

117

180.9

15

¥32.94¥22.968285

167

SG & A expenses

66

65

Operating income

15

Ordinary income
Net income%¥55.902,150OfT ot al% Chg.
YoY%%
(1.3)

174

8.1＋3.8(4.0)

128

6.0(3.5)

24＋28.146

2.1＋31.0＋21.0

28＋20.3

54

2.5＋20.6＋37.1

19＋154.035

1.6＋84.3¥46.40¥58.192,150¥104.59＋87.1

Net income

Operating income

Net sales

2,178

YoY%(1.9)

Gross margin

2,161

YoY

1,088

2,178

2,500% Chg.

%(0.8)

1,109

Earnings per share

2H (Forecasts)% Chg.

1,061

1,069

Net sales

1H (Results)Of
T ot al

2H

2H
1H

5080

41
2,000

60

4060
1,500

1,109

1,096

1,088

4625
40

30

3515
1935

1,000

24

1820

19500

1,069

1,065

1,061

2035

10150FY2010

FY2011

0FY2012 (Forecasts)

2521711150FY2010

An Electronics Systems Coordinator

FY2011FY2012 (Forecasts)

FY2010FY2011FY2012 (Forecasts)

3

Overview of Results by Business Segment
Unit: 100 millions of yen

FY2011
1H

Semiconductors
ElectronicComponents
ElectronicEquipment
Ryosan Products(Heat sinks)

FY2012
1H (Results)

2H

2H (Forecasts)% Chg. YoY% Chg. YoY% Chg. YoY%%%Sales

649674

1,323671＋3.4

678＋0.6

1,350＋2.0

Operating income

11122417＋55.3

19＋52.9

37＋54.0

Sales

278

275

554268(3.5)

271(1.6)

540(2.5)

Operating income

107189(13.0)

9＋33.219＋5.3Sales

111

13524696(13.8)

113(15.7)210(14.8)

Operating income

2584＋48.7

4(20.2)9＋2.5Sales

30235425(16.2)

24＋1.950(8.3)

Operating income

1.9

0.2

2.2

1.3(33.7)

1.7＋608.3

3.0＋36.4▲11▲6▲17▲11‐

▲10‐

▲22‐

Unallocable Operating expenses%

Consolidated%%

Sales

1,069

1,109

2,178

1,061(0.8)

1,088(1.9)

2,150(1.3)

Operating income

15193521＋34.6

24＋28.1

46+31.0

An Electronics Systems Coordinator

4Consolidated Balance Sheet & Consolidated Statement of Cash Flows
AssetsFixed assets

Current assets

1,670

1,599

1,441

Liabilities/net assets/net assets to total assets(Unit: 100 millions of yen)

Liabilities

1,670
Major causes for increases/decreases

1,404

・ Cash and deposits: 7,775 million yen
・ Trade notes andaccounts receivable:(7,709 million yen)・ Inventories:(1,860 million yen)

513

69.2
1,156229

Net assets

1,599
441

72.4

Net assets to total assets (%)(Unit: 100 millions of yen)

Major causes for increases/decreases
・ Trade accounts(5,747 million yen)payable:・ Short-term bank
(1,175 million yen)loans:

1,158

195

End of Mar. 2012

End of Sep. 2012

End of Mar. 2012 End of Sep. 2012

Major causes for increases/decreases

Cash flow

FY2011First Half

FY2012First Half

Operating CF(4,712)

6,260

Investment CF(382)1,491

Financial CF

407(1,249)(Unit: millions of yen)Free CF(5,094)

7,751

Balance of cash and cash
equivalents

38,18340,387An Electronics Systems Coordinator

2,544 million yen
・ Income before income taxes and minority
interests:・ Decrease in notes and accounts receivable-trade: 6,928 million yen
・ Decrease in inventories:
1,476 million yen

・ Withdrawal of time deposits:

1,500 million yen

・ Cash dividends paid:
・ Decrease in short-term loans payable:(669 million yen)(516 million yen)

5Trends in Net Income, Total Amount of Dividends, and Purchase of Treasury Stock(100 millions of yen)70

Net income

85% (43%)

Total amount of dividends
Purchase of treasury stock60

57

128% (72%)

Total payout ratio(figures in parenthesis aredividend payout ratio)

50

50

67% (67%)2840161% (72%)

226772% (72%)

3030

41392017282702728

1020
@¥80
FY2007

57% (57%)

@¥80

@¥60

FY2008FY2009@¥80
FY20101813@¥40FY20113520@¥60

FY2012 (Forecasts)<<Trends in Purchase of Treasury Stock>>
FY2007

FY2008FY2009FY2010FY2011

Amount(100 millions of y en)

28.8

22.5-

-

17.2

Number of stocks(10,000 shares)

100.0

100.0--

100.0

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Results for FY2012 First Half and Forecasts for Whole Financial Year

Management Efforts for Second Half of FY2012

Changes in Net Sales by Segment

Supplementary Material

An Electronics Systems Coordinator

7

Management Efforts for Second Half of FY2012
Laying the foundation◇ Improvement in the profit structure◇ Improvement in the financial structure

Promotion of globalization◇ Strengthening the efforts in rapidly growing emerging markets◇ Strengthening the response to Japanese clients becoming moreglobalized

Strengthening of efforts to use multi-vendors◇ Aim to restructure business by proactively injecting management
resources in overseas semiconductor business
An Electronics Systems Coordinator

8Reference 1
Promotion of Globalization (Strengthening the Efforts in Rapidly Growing Emerging Markets)

インド市場への進出
Making inroads into the Indian market
1. Name:Singapore Ryosan Pte Ltd India Branch office

2. Location: Bangalore, Karnataka, India#18 Second Floor, Team Work Building,
Chinnaswamy Mudaliar Road(Off: QueensRoad), Tasker Town, Bangalore 560051,Karnataka, India
3. No. of employees : 3 Total◆ Launch of sales expansion activities focusedon regional Indian customers

An Electronics Systems Coordinator

9Reference 2Promotion of Globalization (Strengthening the Response to Japanese Clients Becoming More Globalized)

インド市場への進出Making inroads into the European market
1. Name:Ryosan Europe GmbH

2. Location: Munich, Deutschland
Freisingerstr. 30/2 OG rechts, 85737 Ismaning,Deutschland
3. No. of employees:

4 Total◆Launch of service and support provision to customers
that made inroads in Europe

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10Results for FY2012 First Half and Forecasts for Whole Financial Year

Management Efforts for Second Half of FY2012

Changes in Net Sales by Segment

Supplementary Material

An Electronics Systems Coordinator

11Change in Net Sales for Semiconductors (By product)
Overall conditions since FY10: Business performance was driven by system LSIs for in-vehicle electrical components anddigital cameras, etc., which are main products.
FY12 Forecast: 2nd half results are forecast to be nearly the same as the 1st half. The whole year forecast is 135
billion yen or +2.0% compared to the previous fiscal year.
Memories(100 millions of yen)

System LSIs

800

600

Discrete semiconductors

617

620

77

60

400

674

671

678

34

40

45

423

462

433

453

649
45384

392

155

167

180

177

196

179

1H

2H

1H

2H

1H

2H (Forecasts)

2000FY2010
An Electronics Systems CoordinatorFY2011

FY201212

Change in Net Sales for Electronic Components (By product)
Overall conditions since FY10 : There is a decreasing trend for income due to a decrease in mechanical components for game
consoles, etc.
FY12 Forecast: 2nd half results are forecast to be nearly the same as the 1st half. The whole year forecast is 54
billion yen or -2.5% compared to the previous fiscal year.

(100 millions of yen)

Display Devices

400

Power Supplies
Mechanical Components

301

298

300
79200

100278275

2682718273756626242327882826

193

184

169

176170177

1H

2H

1H

2H

1H

2H (Forecasts)

0
FY2010An Electronics Systems Coordinator

FY2011FY201213

Change in Net Sales for Electronic Equipment (By product)
Overall conditions since FY10: There is a decreasing trend for income due to a decrease in systems equipment for in-vehicle
electrical components , etc.
FY12 Forecast: The whole year forecast is 21 billion yen or -14.8% compared to the previous fiscal year eventhough systems equipment for MFP, etc. is expected to increase in the 2nd half.
(100 millions of yen)

180Systems Equipment
Facilities Equipment144150120113135113111
969060116

978997948030
1628

222H1H3716191H

2H (Forecasts)

01H
FY2010An Electronics Systems Coordinator

2HFY2011

FY201214

Change in Net Sales for Ryosan Products (By area)
Overall conditions since FY10: There is a decreasing trend for income due to a decrease in heat sinks for TVs/FA equipment, etc.
FY12 Forecast: 2nd half results are forecast to be nearly the same as the 1st half. The whole year forecast is 5billion yen or -8.3% compared to the previous fiscal year.
(100 millions of yen)Domestic

40.0

Overseas

32.6

32.0

30.7

30.0

23.8
20.0

22.6

24.2

25.7

24.2

22.9
18.2

18.9

18.0

10.0
8.4

9.3

1H

2H

7.7

5.6

6.8

6.1

2H

1H

2H (Forecasts)

0.0
FY2010An Electronics Systems Coordinator

1HFY2011

FY201215

Change in Net Sales for Domestic/Overseas
The overseas sales ratio hovered around 30-35%. Approximately 60% of overseas sales or 21-23 billion yen is the Chinese bloc.
Out of the figure, approximately 35% is sales for local customers. The whole year FY12 forecast is 141 billion yen domesticallyand 74 billion yen overseas.
Domestic(100 millions of yen)

1,500

Overseas (figures in parenthesis
are net sales for the Chinese bloc)

1,200

1,109

1,061

1,088719

773

687

722

366

365

(229)

335

374

(210)

350
(213)

(227)

(222)

(222)

1H

2H

1H

2H

1H

2H (Forecasts)

1,096

1,069

693

730

372

1,065

900

600

300

0
FY2010An Electronics Systems Coordinator

FY2011FY201216

Results for FY2012 First Half and Forecasts for Whole Financial Year

Management Efforts for Second Half of FY2012

Changes in Net Sales by Segment

Supplementary Material

An Electronics Systems Coordinator

17Main Clients<<Top 5 companies by net sales foreach business segment>><<Top 40 companies by net sales>>Top 1-10

Top 11-20

Top 21-30

ALPINEADVANTESTALPS Electric

Clarion

DENSO

Brother Industries

Fuji Xerox

HITACHICalsonic Kansei

JVC KENWOOD

Clients

Mitsubishi Electric(alphabeticalorder)

NECCASIOCOMPUTERKONICAMINOLTAHOLDINGS

Canon

NIKON
OMRON
Panasonic
PIONEER
Wacom(Top 10)Percentage
Sales of allclients

52%

Sumitomo ElectricIndustries

SAMSUNG Group(K)TOSHIBA TEC(Top 20)

68%

YAZAKI Group

Fujitsu

HITACHIMitsubishi Electric
NECNIKONPIONEERDENSO
Fuji Xerox
HITACHINIKON
Panasonic(Top 5)50%(Top 5)
54%

Electronic
Components

RyosanProductsCanon
Calsonic Kansei
Mitsubishi Electric
NEC
NINTENDO

DENSO
FANUC
HITACHI
Mitsubishi Electric
Panasonic(Top 5)31%(Top 5)44%

Hyundai Motor
Group (K)JRC
MiTAC (T)
Sharp
TAKATATOSHIBA

YAMAHA
Sumitomo Wiring
Systems

Electronic
Equipment

GS Yuasa
Corporation

Stanley Electric

NINTENDO

Semiconductors

Furuno ElectricFuji Film
Mamiya-OP

Top 31-40

YASKAWA Electric(Top 30)(Top 40)75%

78%(alphabetical order)(alphabetical order)* Honorifics omitted* Ranking and percentage (%) are based on actual sales for the first half of FY2012.
* (T) and (K) represent clients in Taiwan and Korea, respectively.
An Electronics Systems Coordinator

18Main Suppliers
Elpida Memory
1.7%
NLT
Technologies
1.8%

Other
suppliers
17.7%

NEC TOKIN
1.9%
COSEL
1.9%
Japan
Aviation
Electronics
Industry
2.6%
NXP
Semiconductors
2.9%
ORTUS
Technologies
3.9%

Renesas Electronics
52.0%[Percentage of net sales
by business segment]
Electronic
Equipment(9%)

NEC6.2%

ALPS
Electric
7.4%

Ryosanproducts(3%)

ElectronicComponents Semicon(25%)
ductors(63%)* Percentage (%) is based on actual sales of products purchased from suppliers for the first half of FY2012.
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