May 9, 2013

Consolidated Earnings Report for Fiscal 2012, Ended March 31, 2013
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 21, 2013
June 5, 2013
June 24, 2013
(Millions of yen rounded down)

1. Consolidated results for the fiscal year ended March 31, 2013 (April 1, 2012 to March 31, 2013)(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 2012
206,534
(5.2)
3,673
4.6
4,111
(8.1)
Fiscal 2011
217,8870.8
3,511(42.2)
4,476(35.0)(Note) Comprehensive income
FY2012:4,687million yen (158.6%)
FY2011:1,812 million yen (-43.0%)
Ordinary income
Net income
Net income per
Return on equity
to net assets
per shareshare after dilution
Yen

Yen

%

Fiscal 2012
84.40
－
2.4
Fiscal 2011
55.90
－
1.6
(Reference) Equity in earnings (losses) of non-consolidated subsidiaries and affiliates:
FY2012 － million yen,
FY2011 － million yen

2,814
1,899

%

48.2
(54.0)

Operating income
to net sales

%

%

2.5
2.7

1.8
1.6

(2) Consolidated financial position
Total assets

Net assets tototal assets

Net assets

Millions of yen

March 31, 2013
160,220
March 31, 2012
167,079(Reference) Shareholders equity:
March 31, 2013: 116,722 million yen,

Net assets
per share

Millions of yen%

Yen

116,722
115,691

72.9
69.2

3,595.42
3,457.13

March 31, 2012: 115,691 million yen(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal 2012
Fiscal 2011

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

17,689(8,356)

2,485
(936)

(4,483)419

50,463
34,113

2. Dividends(Record date)Fiscal 2011
Fiscal 2012
Fiscal 2013
(Forecast)End of
1Q－－－

Dividends per share (Yen)End of
End of
End of
2Q
3Q
4Q
20.00
－
20.00
30.00
－
30.00
30.00

－

30.00

Annual
40.00
60.00
60.00

(Millions of yen rounded down unless otherwise stated)
Dividends to net
Dividends
Payout ratio
assets ratio(Full fiscal year)(consolidated) %(consolidated) %
1,347
71.6
1.2
1,977
71.1
1.7
64.0

3. Forecast of results for the fiscal year ending March 31, 2014 (April 1, 2013 to March 31, 2014)(% 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 Year105,000
215,000% Millions of yen

(1.1)
4.1

%

2,000
4,600

Millions of yen

(5.6)
25.2

2,100
4,800

%

Millions of yen(17.3)
16.7

1,300
3,000

%

Yen

(16.3)
6.6

40.04
92.41

※ 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: Yes
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 19 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, 2013: 34,500,000 shares

March 31, 2012: 34,500,000 shares

2. Total number of treasury stock as of the period-end:
March 31, 2013: 2,035,794 shares

March 31, 2012: 1,035,425 shares

3. Average number of shares outstanding during the period
March 31, 2013: 33,349,950 shares

March 31, 2012: 33,982,029 shares(Reference) Overview of non-consolidated operating results
1. Non-consolidated results for the fiscal year ended March 31, 2013 (April 1, 2012 to March 31, 2013)(1) Non-consolidated operating results(% figures represent year-on-year increase or decrease)
Net sales
Millions of yen

Fiscal 2012
Fiscal 2011%

145,019
160,606

(9.7)
(0.3)

Net income
per share
Fiscal 2012
Fiscal 2011

Operating income
Millions of yen

Ordinary income
%

1,264
2,022

(37.5)(40.0)

Millions of yen

2,768
4,649

Net income%(40.5)(11.3)

Millions of yen

1,940
2,157

%

(10.0)(31.9)Net income pershare after dilution
Yen

Yen

58.19
63.49

－
－

(2) Non-consolidated financial position
Total assets

Net assets tototal assets

Net assets

Net assets
per share

Millions of yen

Millions of yen%

Yen

March 31, 2013
137,309
March 31, 2012
142,909(Reference) Shareholders equity:
March 31, 2013: 105,123 million yen,

105,123
106,68776.6
74.7

3,238.12
3,188.08

March 31, 2012:

106,687 million yen

Presentation concerning implementation status of auditing procedures
Financial results for the fiscal year ending March 31, 2013 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 2012".
2. We will host Security Analyst and Institutional Investor Conference on Wednesday, May 29, 2013. Presentationmaterials 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 2012 ....................................................................................................................... 2(2)Analysis of Financial Condition............................................................................................................................................. 4(3)Basic Policy Regarding the Allocation of Profits/Dividends for Fiscal 2012 and Fiscal 2013 ............................................... 5(4)Business Risks ....................................................................................................................................................................... 5
2. The Ryosan Group ........................................................................................................................................................................... 7
3. Management Policies ....................................................................................................................................................................... 10(1)Fundamental Management Policies ....................................................................................................................................... 10(2)Targeted Management Indicators ........................................................................................................................................... 10(3)Medium - and Long-term Management Strategies ................................................................................................................. 10(4)Issues to be Addressed ........................................................................................................................................................... 11
4. Consolidated Financial Statements .................................................................................................................................................. 12(1) Consolidated Balance Sheets ................................................................................................................................................ 12(2) Consolidated Statements of Income and Consolidated Comprehensive Statements of Income ............................................ 14(Consolidated Statements of Income) ................................................................................................................................. 14(Consolidated Comprehensive Statements of Income) ....................................................................................................... 15(3) Consolidated Statements of Changes in Net Assets .............................................................................................................. 16(4) Consolidated Statements of Cash Flows ............................................................................................................................... 18(5) Notes on Consolidated Financial Statements ........................................................................................................................ 19(Notes Regarding Going Concern) ..................................................................................................................................... 19(Changes in Accounting Principles).................................................................................................................................... 19(Notes on Consolidated Balance Sheets) ............................................................................................................................ 19(Notes on Consolidated Statements of Income) .................................................................................................................. 20(Notes on Consolidated Comprehensive Statements of Income) ........................................................................................ 20(Tax-effect Accounting) ...................................................................................................................................................... 21(Segment Information)........................................................................................................................................................ 22(Per Share Information) ...................................................................................................................................................... 24(Important Subsequent Events) ........................................................................................................................................... 24
5. Other ................................................................................................................................................................................................ 25(1) Manufacturing, New orders and Sales ................................................................................................................................ 25(2) Geographical Segment Information .................................................................................................................................... 25(3) Changes of Directors........................................................................................................................................................... 26-1-

1. Analysis of Operating Results and Financial Condition(1) Analysis of Operating Results for Fiscal 2012 (the Fiscal Year Ended March 31, 2013)(Operating Results for Fiscal 2012)
1) Overview
In the fiscal year ended March 31, 2013, the global economy continued to remain sluggish due to the prolonged
European sovereign debt crisis and the economic slowdown in emerging economies such as China. The electronics
industry, in which we are engaged in, faced a severe business environment including an overall decline in demand
especially in the latter half of the year, while enjoying robust business in products such as smartphones.
Under these circumstances, the Ryosan Group has worked on “reform of the management system”, “restructuringof the profit and financial structure” and “Promotion of globalization” while setting “the Company address
renovation of management structure to survive in a changing external environment” as our basic stance ofmanagement for the fiscal year 2012.
As a result of the above, the Ryosan Group reported net sales of 206,534 million yen (down 5.2 % from theprevious corresponding period) for the consolidated fiscal year under review. In terms of income, operating
income came to 3,673 million yen (up 4.6%) due to reductions in expenses including selling, general andadministrative expenses, while ordinary income came to 4,111 million yen (down 8.1%) due to an increase in
non-operating expenses caused by the weak yen. Net income came to 2,814 million yen (up 48.2%) for results forfiscal year under review due to a decrease in tax expense related to income taxes-deferred resulting from theliquidation of CentrAct Corporation, our consolidated subsidiary.
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 FA equipment, etc. decreased, with net sales of 131,172 million yen (down 0.9%
from the previous year), however, operating income came to 3,120 million yen (up 29.9%).
b. Electronic Components
We sell display devices, power supplies and electromechanical components. In this consolidated fiscal year, salesof display devices for information terminals, etc. decreased, with net sales of 51,008 million yen (down 7.9%
from the previous year) and operating income of 1,723 million yen (down 4.5%).
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 19,519 million yen (down 20.8% from theprevious year), however, operating income came to 995 million yen (up 13.3%).
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 FA equipment, etc. decreased, with net sales of 4,833 million yen (down 11.3%
from the previous year) and operating income of 210 million yen (down 4.7%).
The aforementioned amounts do not include consumption and other taxes.

-2-

(Outlook for the Next Fiscal Period)
1) Projected Operating Results
Looking ahead, the global economy as a whole is forecast to gradually move towards moderate recover, led bystrong upturn in the US economy and bottoming out of the Chinese economy. However, the future outlook for afull-fledged economic recovery remains uncertain due to factors including the prolonged European sovereign
debt crisis. Against the backdrop of this forecasted operating environment, the Ryosan Group will continue topromote and pursue two key initiatives of our 8th Medium-Term Management Plan in its final year:"Construction of a management structure strong enough to survive in the global age" and "Exploitation of
emerging markets to support future growth."
On this basis, operating forecasts for the fiscal year ending March 31, 2014 are as follows:

Net sales
Operating income
Ordinary income
Net income

Millions of yen
215,000
4,600
4,800
3,000

YoY change [%]Increase 4.1
Increase 25.2
Increase 16.7
Increase 6.62) Projected Operating Results by Business Segment
a. Semiconductors
In the Semiconductors segment, Ryosan is projecting increased sales of system LSIs for in-vehicle electricalcomponents, etc. Sales in this segment are expected to come to 138,000 million yen (up 5.2% from the previousyear), with an expected operating income of 4,000 million yen (up 28.2%).
b. Electronic Components
In the Electronic Components segment, Ryosan is projecting increased sales of electromechanical components
for game consoles, etc. Sales in this segment are expected to come to 53,000 million yen (up 3.9% from theprevious year), with an expected operating income of 2,000 million yen (up 16.0%).
c. Electronic Equipment
In the Electronic Equipment segment, Ryosan is projecting decreased sales of system equipment for in-vehicle
electrical components, etc. Sales in this segment are expected to come to 19,000 million yen (down 2.7% fromthe previous year), with an expected operating income of 850 million yen (down 14.6%).
d. Ryosan Products
Increased sales of heat sinks for FA equipment, etc., are projected in the Ryosan Products segments. As a result,segment sales are expected to come to 5,000 million yen (up 3.4% from the previous year), with an expected
operating income of 350 million yen (up 66.3%).
* The aforementioned forecasts are subjected to certain risks and uncertainties. Accordingly, actual results may
differ materially from forecasts for a variety of factors.
* Principal among these factors is the following:- Economic trends in the Ryosan Group’s major markets (Japan, Asia and other markets); rapid changes in
consumer trends and sudden shifts in supply and demand dynamics- Significant fluctuations in the dollar/yen exchange rate
- Major shifts in capital markets.

-3-(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, 2013a. Assets
Total assets as of March 31, 2013 stood at 160,220 million yen, a decrease of 6,859 million yen compared with theend of the previous fiscal year. This was mainly due to an increase of 16,350 million yen in cash and deposits, but
decreases of 13,021 million yen in trade notes and accounts receivable, 5,514 million yen in merchandise andfinished products, and 3,000 million yen in long-term deposits.
b. Liabilities
Total liabilities decreased by 7,890 million yen compared with March 31, 2012 to reach 43,498 million yen. Thiswas primarily attributable to a decrease of 8,288 million yen in trade accounts payable.
c. Net Assets
Net assets increased by 1,031 million yen compared with March 31, 2012 to reach 116,722 million yen. This was
mainly due to increases of 2,814 million yen in net income and 1,721 million yen in foreign currency translation
adjustments, while cash dividends paid came to 1,673 million yen and acquisition of treasury stock to 1,983
million yen. The ratio of net assets to total assets rose from 69.2% at the end of the previous fiscal year to 72.9%
as of March 31, 2013.
2) Status of Cash Flows
Cash and cash equivalents as of March 31, 2013 stood at 50,463 million yen; an increase of 16,350 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 4,146 million yen, funds in total increased by 17,689 million yen. This is due to accounts payable,
inventories, and accounts payable decreasing by 14,941 million yen, 6,319 million yen, and 9,244 million yen
respectively. In the net cash provided by (used in) operating activities in the previous consolidated fiscal year,
there was a decrease of funds by 8,356 million yen.
b. Cash Flows from Investing Activities
Regarding cash flow from investing activities in this consolidated fiscal year, there was an increase of funds by
2,485 million yen due mainly to withdrawal of time deposits. In the net cash provided by (used) in investing
activities in the previous consolidated fiscal year, there was a decrease of funds by 936 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 1,673 million yen and 1,983 million yen respectively, funds in total decreased by 4,483
million yen due to a decrease of 695 million yen in short-term loans in foreign currency. In the net cash providedby (used in) financing activities in the previous consolidated fiscal year, there was an increase of funds by 419
million yen.

-4-

(Reference) Trends in cash flow-related indicators
Fiscal 2008
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 2009

Fiscal 2010

Fiscal 20111

Fiscal 2012

78.1

72.5

72.0

69.2

72.9

47.4

50.8

42.2

33.3

36.6

0.3

0.9

_

_

0.7

107.3

101.4

_

_

96.4

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.
(3) Basic Policy Regarding the Allocation of Profits / Dividends for Fiscal 2012 and Fiscal 2013
【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 consolidated basic net income per share. Accordingly, Ryosan’s fundamental policy is
to continue high dividend 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 makedecisions in an integrated manner, with consideration given to trends in consolidated results and other matters.
【Dividends for Fiscal 2012 and Fiscal 2013】
For the fiscal year ended March 31, 2013, 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 ¥60 per share in its full fiscal year for the fiscal year ending
March 31, 2014 (an interim ordinary dividend of ¥30 per share and a fiscal year-end ordinary dividend of ¥30 per
share).
(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 2012 (March 31, 2013).
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-5-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 substantialchanges 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”), 12 consolidated subsidiaries
and 8 non-consolidated subsidiaries.
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
CentrAct Corporation
Semiconductors
Discretesemiconductors
Saxis Company, Limited

Electronic
Components

Electronic
Equipment

Display devices
Power supplies
electromechanicalcomponents

Systems equipment
Facilities equipment

Gyronics Company, Limited
HONG KONG RYOSAN
LIMITEDZHONG LING
INTERNATIONAL TRADING(SHANGHAI) CO., LTD.
SINGAPORE RYOSANPRIVATE LIMITEDRYOTAI CORPORATIONRYOSAN IPC (MALAYSIA)
SDN. BHD.

Ryosan Products

Heat sinks
RYOSAN (THAILAND)(devices that dissipate CO., LTD.
the heat generated bysemiconductors)
KOREA RYOSANCORPORATION

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

Note: CentrAct Corporation has been under the liquidation procedure following the dissolution as ofMarch 31, 2013.

-7-

Information about Ryosan’s principal non-consolidated subsidiaries is as follows:(Non-consolidated subsidiaries)
Company NameBusiness Activities

EC Ryosan Company, Limited

Commission sales of electronic components

RYOSAN TECHNOLOGIES USA INC.

Sales of semiconductors and electronic components

DALIAN F.T.Z. RYOSAN INTERNATIONAL TRADING Sales of semiconductors and electronic components
CO., LTD.
Commission sales of semiconductors and electronic
SHEN LING ELECTRONICS (SHENZHEN) CO., LTD.
components
RYOSAN EUROPE GMBH

Sales of semiconductors and electronic components

RYOSAN ELECTRONICS (FOSHAN) CO., LTD.

Manufacture and sales of heat sinks-8-

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 ofservices

CentrAct Corporation

Provision of
MerchandiseIntermediarysales

Provision of
MerchandiseIntermediarysales
Gyronics Company, Limited

Provision ofservices※EC RYOSAN COMPANY,
LIMITEDIntermediarysalesIntermediarysales

Provision of
Merchandise

Provision of
Merchandise
Provision of
MerchandiseSale※DALIAN F.T.Z RYOSANSale

INTERNATIONAL TRADING
CO., LTD.

※SHEN LING
ELECTRONICS (SHENZHEN)
CO., LTD.

KOREA RYOSANCORPORATIONRYOTAI CORPORATION

Provisionof services

Provisionof services
Sale

Sale

RYOSAN (THAILAND)
CO., LTD.

Sale

SINGAPORE RYOSANPRIVATE LIMITED

Sale

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.

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※RYOSAN TECHNOLOGIESUSA INC.

Sale

Sale
※RYOSAN EUROPE GMBH

Note: Companies identified with an asterisk are non-consolidated subsidiaries not accounted for by the equity method.
All other companies are consolidated subsidiaries.
-9-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 line with our 8th Medium-Term Management Plan, which covers the period from fiscal 2011 through to fiscal
2013, the Company aims to improve net income per share and has set itself the target of securing “consolidated
dividend payout ratio of more than 50%”, “dividend on equity (DOE) of more than 2.5% (fiscal 2013)”.
(3) Medium- and Long-Term Management Strategies
The Ryosan Group is confronted with an operating environment characterized by increasingly intense globalization
and rapid change. Against this backdrop, demands for the corporate sector to more adequately fulfill their corporatesocial responsibility (CSR) have also risen.
Under these circumstances, the Ryosan Group formulated its 8th Medium-Term Management Plan, which covered
the period from fiscal 2011 through to fiscal 2013. In line with its ongoing “Basic Stance,” Ryosan continues tofocus on the acceptance and evolution of global diversity as well as the pursuit of sound management under thegrowing uncertainty of the corporate environment.
To implement this basic stance, we will powerfully promote three kinds of basic strategies - Growth Strategies,
Segment Strategies, and Infrastructure Strategies. The basic strategies are outlined below.
1. Growth Strategies
 Further strengthening of overseas semiconductor device businesses (added from fiscal 2013)
 Strengthening approach to developing countries of quick growth (China and India) Strengthening dealing with globalizing Japanese customers
 Strengthening exploitation in growing fields (car electronics, social infrastructure, etc.)
We will be committed to these four growth strategies.
2. Segment Strategies
 Strategy for semiconductor business Strategy for electronic components business Strategy for electronic equipment business Strategy for Ryosan Products businessWe will strengthen these four segment strategies in terms of quality.
3. Infrastructure Strategies
 Strengthening business infrastructure (organization and system)
 Strengthening the cultivation of human resources Implementing financial strategies aimed to improve corporate value Improving information system Reinforcing management in terms of quality
 Strengthening Ryosan (RS) Culture
We will be committed to these six infrastructure strategies.
- 10 -

(4) Issues to be Addressed
In the electronics industry, in which the Ryosan Group is engaged, along with worldwide structural changes in
economies and industries under way, a global competition has been intensified. The Group will continue to face asevere business environment. With especially Japanese electronics companies less competitive relative to foreigncompanies, the industry is actively reorganizing itself through movements including capital and business alliance asa matter of business survival and withdrawals from unprofitable businesses.
Under a highly-competitive and rapidly-changing environment like this, the Group intends to take appropriately thechanges in business structures of each of our suppliers and clients and to quickly respond to those changes. Also, theGroup will work through “Improvement of Profit Structure and Financial Strength” in order to accomplish “theFurther Improvement of Management Structure”.
On the other hand, the Group recognizes a problem concerning sales growth. In response to this, the Group will
strive to work on the growth strategy of “the Further Strengthening of Overseas Semiconductor Device Businesses”.
Specifically, the Group will endeavor to develop new resources to ensure sustainable growth of the Group by
launching “New Resource Development Project” as well as to take on the challenge again of expanding
semiconductor device business overseas.
In any case, the Group is committed to firmly raising its presence and value by overcoming these challenges and toensure that the Group generates performance improvements that accurately reflect this value. In this manner, theGroup places the utmost importance on addressing the expectations and needs of all stakeholders including
shareholders.

- 11 -

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
Fiscal Year Ended
March 31, 2012
(As of March 31, 2012)

Fiscal Year Ended
March 31, 2013
(As of March 31, 2013)ASSETS
Current assets
Cash and deposits

34,11450,464

Trade notes and accounts receivable

81,123

68,101

Merchandise and finished products

24,30818,793Work in process

147

141

Raw materials and stored goods

177

152

Accrued income

2,989

1,390

Deferred tax assets

276

514

Other current assets

1,109

243

Allowance for doubtful accounts

(93)

(106)

144,153

139,696

Buildings and structures

10,715

10,576

Accumulated depreciation(6,253)(6,285)

Buildings and structures (net)

4,461

4,290

Land

8,121

8,121

Lease assets

603

829

Accumulated depreciation

(381)

(495)

Lease assets (net)

221

333

Other fixed assets

4,393

4,554

Accumulated depreciation(3,872)(4,028)520

526

13,325

13,272930

1,029

Investment securities

3,084

3,286

Long-term deposits

3,000

－

Deferred tax assets

958

947

Other

2,719

3,132

Allowance for doubtful accounts(957)(1,045)

Allowance for loss on investments

(136)

(98)

Total Investments and other assets

8,669

6,222

22,925

20,524

167,079

160,220

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- 12 -

(Millions of yen)
Fiscal Year Ended
March 31, 2012
(As of March 31, 2012)

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

LIABILITIESCurrent liabilities
Trade accounts payable

33,54925,261

Short-term bank loans

11,85012,850

Lease obligations

112

138

Other Payable

1,761

841

Accrued expenses

1,091

1,069

Accrued income taxes

338

689

Other current liabilities

193

178

Total current liabilities

48,89641,028

155

242

2,275

2,149

Other long-term liabilities

60

76

Total long-term liabilities

2,491

2,469

51,38843,498

Common stock

17,69017,690Additional paid-in capital

19,114

19,114Retained earnings

83,44984,590Treasury stock(1,806)(3,789)Total shareholders’ equity

118,447

117,606

331

484

2

0

Foreign currency translation adjustments(3,090)(1,368)

Total other accumulated comprehensive incomes(2,756)

(883)

－

－

Total net assets

115,691

116,722

Total liabilities and net assets

167,079

160,220

Long-term liabilities
Lease obligations
Employees’ retirement benefits

Total liabilities
NET ASSETS
Shareholder’s equity

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

Minority interests- 13 -

(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
Reversal of allowance for investment loss
Total extraordinary gains
Extraordinary losses
Loss on sales and disposal of property, plant and equipment
Impairment loss
Loss on devaluation of investment securities
Provision of allowance for investment loss
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
Minority interests in income
Net income- 14 -

Fiscal Year Ended Mar. 31, 2012

Fiscal Year Ended Mar. 31, 2013

(Apr. 1, 2011 to Mar. 31, 2012)(Apr. 1, 2012 to Mar. 31, 2013)

217,887
201,117
16,769206,534
189,868
16,666

717
11
437
3,821
1,006
432
834
542
5,453
13,258
3,511

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

93
274
549
241
1,159

69
109
477
224
881

168
8
17
194
4,476

180
241
21
443
4,111

－
－
－
－

34
6
37
77

7
－
138
9
－
155
4,321
1,663
755
2,419
1,902
2
1,899

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

(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- 15 -

Fiscal Year Ended Mar. 31, 2012

Fiscal Year Ended Mar. 31, 2013

(Apr. 1, 2011 to Mar. 31, 2012)(Apr. 1, 2012 to Mar. 31, 2013)

1,902

2,814

35
9
(133)

153
(2)
1,721

(89)
1,812

1,872
4,687

1,808
4

4,687
－

(3) Consolidated Statements of Changes in Net Assets(Millions of yen)

Shareholders’ equity
Common stock
Balance as of the end of the previous period
Increase (decrease) during the period
Total increase (decrease) during the period
Balance as of the end of the period
Additional paid-in capital
Balance as of the beginning of the period
Increase (decrease) during the period
Disposal of treasury stock
Transfer to additional paid-in capital from retained earnings
Total increase (decrease) during the period
Balance as of the end of the period
Retained earnings
Balance as of the beginning of the period
Increase (decrease) during the period
Appropriation of earnings as cash dividends
Net income for the period
Transfer to additional paid-in capital from retained earnings
Total increase (decrease) during the period
Balance as of the end of the period
Treasury stock
Balance as of the beginning of the period
Increase (decrease) during the period
Acquisition of treasury stock
Disposal of treasury stock
Total increase (decrease) during the period
Balance as of the end of the period
Total shareholders’ equity
Balance as of the beginning of the period
Increase (decrease) during the period
Appropriation of earnings as cash dividends
Net income for the period
Acquisition of treasury stock
Disposal of treasury stock
Transfer to additional paid-in capital from retained earnings
Total increase (decrease) during the period
Balance as of the end of the period- 16 -

Fiscal Year Ended Mar. 31, 2012

Fiscal Year Ended Mar. 31, 2013

(Apr. 1, 2011 to Mar. 31, 2012)(Apr. 1, 2012 to Mar. 31, 2013)

17,69017,690－17,690－17,69019,114

19,114－－－
19,114(0)
0－
19,114

83,606

83,449(2,056)
1,899
－
(157)
83,449(1,673)
2,814
(0)
1,141
84,590(85)(1,806)(1,720)－(1,720)(1,983)0(1,983)(1,806)(3,789)120,325

118,447(2,056)
1,899(1,720)－－(1,878)118,447(1,673)
2,814(1,983)0－(841)
117,606

(Millions of yen)

Other accumulated comprehensive incomes
Net unrealized gain on other marketable securities
Balance as of the beginning of the period
Increase (decrease) during the period
Net changes in items excluding shareholders’ equity
during the period
Total increase (decrease) during the period
Balance as of the end of the period
Gain (loss) on deferred hedges
Balance as of the beginning of the period
Increase (decrease) during the period
Net changes in items excluding shareholders’ equity
during the period
Total increase (decrease) during the period
Balance as of the end of the period
Foreign currency translation adjustments
Balance as of the beginning of the period
Increase (decrease) during the period
Net changes in items excluding shareholders’ equity
during the period
Total increase (decrease) during the period
Balance as of the end of the period
Total other accumulated comprehensive incomes
Balance as of the beginning of the period
Increase (decrease) during the period
Net changes in items excluding shareholders’ equity
during the period
Total increase (decrease) during the period
Balance as of the end of the period
Minority interests
Balance as of the beginning of the period
Increase (decrease) during the period
Purchase of shares of consolidated subsidiaries
Net changes in items excluding shareholders’ equity during
the period
Total increase (decrease) during the period
Balance as of the end of the period
Total net assets
Balance as of the beginning of the period
Increase (decrease) during the period
Appropriation of earnings as cash dividends
Net income for the period
Acquisition of treasury stock
Disposal of treasury stock
Purchase of shares of consolidated subsidiaries
Transfer to additional paid-in capital from retained earnings
Net changes in items excluding shareholders’ equity during
the period
Increase (decrease) during the period
Balance as of the end of the previous period- 17 -

Fiscal Year Ended Mar. 31, 2012

Fiscal Year Ended Mar. 31, 2013

(Apr. 1, 2011 to Mar. 31, 2012)(Apr. 1, 2012 to Mar. 31, 2013)

295

331

35

153

35
331

153
484

(6)

2

9

(2)

9

(2)

2

0

(2,954)(3,090)

(135)

1,721

(135)
(3,090)1,721(1,368)(2,665)(2,756)

(90)

1,872

(90)
(2,756)

1,872
(883)

120

－

(103)

－

(17)

－

(120)
－

－
－

117,780

115,691(2,056)
1,899(1,720)－(103)－(1,673)
2,814(1,983)
0
－
－

(107)

1,872

(2,089)115,691

1,031
116,722

(4) Consolidated Statements of Cash Flows(Millions of yen)

Operating activities
Income before income taxes
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in employees’ retirement benefits
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 (used in) operating activities
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
Purchase of affiliate company shares
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
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
Cash dividends paid to minority shareholders
Net cash provided by (used in) financing activities
Effect of foreign currency translation adjustments on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period- 18 -

Fiscal Year Ended Mar. 31, 2012

Fiscal Year Ended Mar. 31, 2013

(Apr. 1, 2011 to Mar. 31, 2012)(Apr. 1, 2012 to Mar. 31, 2013)

4,321
680
11
(57)
9
(368)
168
7
－
138
(10)
(12,427)(1,683)2,417
940(5,850)

4,146
644
84
(152)
(37)
(178)
180
(34)
(6)
35
1,306
14,941
6,319(9,244)983
18,989368(169)(2,705)(8,356)185(183)(1,302)
17,689

(0)
(169)
10
(332)
(57)
7
(115)
(53)
－
(25)
3
(303)
100
(936)

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

4,319
(115)
(1,720)－(2,056)
(6)
419

(695)
(131)
(1,983)0(1,673)－(4,483)

(253)

658

(9,126)43,23934,113

16,35034,11350,463

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

(Changes in Accounting Principles)(Change in depreciation method)
The Company changed to the depreciation method based on the amended Corporation Tax Act due to amendments to
the Corporation Tax Act for property, plant and equipment acquired on and after April 1, 2012.
The influences of this change on profit and loss are minimal.
(Notes on Consolidated Balance Sheets)(Millions of yen, figures less than ¥1 million have been omitted, unless otherwise stated)
As of March 31, 20121.

Accumulated depreciation of property, plant and10,507equipment
2.

As of March 31, 2013

10,809Non-consolidated subsidiary and affiliated company
shares and other3.

- Investment securities (shares)

52

52- Other (equity)

308

308

58

83

207

490

Number of shares issued and outstanding

34,500,000 common shares

34,500,000 common shares

Number of treasury stock held by the Company

1,035,425 common shares

2,035,794 common shares

Assets pledged as collateral- Investment securities

4.

Guarantee contingent liabilities
The unpaid balance of debt financing provided to
non-consolidated subsidiaries by financial institutions
guaranteed by the Company

5.

- 19 -

(Notes on Consolidated Statements of Income)1.

Fiscal 2011

Fiscal 2012

(April 1, 2011 to March 31, 2012)(April 1, 2012 to March 31, 2013)

Research and development expenditure included inselling, general and administrative expenses

2.

498

623

31

Breakdown of gain on sales of property, plant andequipment

3.

- Land－- Other

－

2

Total

－

34

Breakdown of loss on sales of property, plant andequipment- Buildings and structures

2－- Other

5

0

Total

7

0

(Notes on Consolidated Comprehensive Statements of Income)
Adjustments from recycling and tax effects in other comprehensive income
Fiscal 2011

Fiscal 2012

(April 1, 2011 to March 31, 2012)(April 1, 2012 to March 31, 2013)

Increase (decrease) during the period:

(122)

202

Adjustments from recycling

138

35

15

238

Tax effect

19

(84)

Net unrealized gain on other marketable securities

35

153

13

(3)

Net unrealized gain on other marketable securities

Before tax effects adjustments

Gain (loss) on deferred hedges:
Increase (decrease) during the period
Tax effect(4)

1

Gain (loss) on deferred hedges

9(2)

Increase (decrease) during the period

(133)

1,721

Total other comprehensive Income

(89)

1,872

Foreign currency translation adjustments- 20 -(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 2011

Fiscal 2012

(As of March 31, 2012)(As of March 31, 2013)

Deferred tax assets
Loss on valuation of inventories
Amortization of software and other
Investment securities
Golf membership rights
Accrued bonuses
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

71
98
174
110
209
743
467
238
271
2,385
(966)
1,418

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

(109)

(152)

(91)
(201)
1,217

(181)
(333)
1,445

Net deferred tax assets are included in the following items of the Company’s consolidated balance sheet.
Fiscal 2011

Fiscal 2012

(As of March 31, 2012)(As of March 31, 2013)

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

276
958
(1)
(16)

514
947
(0)
(17)

2. Breakdown of major differences between the statutory tax rate and the effective tax rate after adoption oftax-effect accounting
Fiscal 2011

Fiscal 2012

(As of March 31, 2012)(As of March 31, 2013)(%)

Effective tax rate

40.7

Effective tax rate

(Adjustment)(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 fromconsolidated subsidiaries
Foreign withholding taxes
Change in valuation allowance
Difference in corporate tax rates from foreignsubsidiaries
Decrease in deferred tax assets at the end of
period by changes in tax rates

Items not included in calculations of losses

4.7(e.g. entertainment expenses)
Items not included in gross profits (e.g.

(2.9)

dividends)
Equal percent residential tax

0.9

Elimination of dividends received from

1.0

consolidated subsidiaries

1.3

Foreign withholding taxes
Change in valuation allowance

8.5

Difference in corporate tax rates from foreign(3.3)

subsidiaries
Decrease in deferred tax assets at the end of

3.5

period by changes in tax rates

Consolidated retained earnings－

Consolidated retained earnings

Other

1.6

Other

Contribution percentage of corporate and othertaxes after

38.0

ax effect accounting is applied

Contribution percentage of corporate and other56.0

taxes after tax effect accounting is applied- 21 -

3.6
(1.8)
0.9
1.1
0.6
(5.5)
(6.9)
－
2.1
－
32.1

(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, 2012
(April 1, 2011 to March 31, 2012)(Millions of yen, figures less than ¥1 million have been omitted)

Reportable Segment
Adjusted
amountConsolidated
incomestatement
amountSemiconductors

Electronic
components

Electronicequipment

Ryosanproducts

Total

132,372

55,40324,6585,452

217,887―

217,887

―

―

―

―

―

―

―

132,372
2,402

55,403
1,805

24,658
878

5,452
220

217,887
5,306―(1,795)

217,887
3,511

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

Notes:
1. The adjustment of -1,795 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, 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
3,120

51,008
1,723

19,519
995

4,833
210

206,534
6,050―(2,376)

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 -2,376 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.
4. Some parts of allocation method of adjustment expenses (corporate expenses) have been changed since the current
consolidated fiscal year.
- 22 -

(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, 2012
(April 1, 2011 to March 31, 2012)(Millions of yen)

Japan
Asia
Total
149,265
68,621
217,887
Note: Sales amounts are based on the customer’s address and classified by country or region.
For the consolidated fiscal year ended March 31, 2013
(April 1, 2012 to March 31, 2013)
Japan
Asia
Total
131,264
75,270206,534
Note: Sales amounts are based on the customer’s address and classified by country or region.
(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, 2012
(April 1, 2011 to March 31, 2012)(Millions of yen)

Customer Name
Mitsubishi Electric Corporation

Net Sales
31,303

Related Segments
Semiconductors, Electronic
Components

For the consolidated fiscal year ended March 31, 2013
(April 1, 2012 to March 31, 2013)
Customer Name
Mitsubishi Electric Corporation

Net Sales
21,275- 23 -

Related Segments
Semiconductors, Electronic
Components(Per Share Information)(Yen unless otherwise stated)
Fiscal 2011

Fiscal 2012

(April 1, 2011 to March 31, 2012)(April 1, 2012 to March 31, 2013)

1. Net assets per share

3,457.13

3,595.42

2. Net income per share

55.90

84.40

Note: Net income per share for the fiscal years ended March 31, 2012 and March 31, 2013 are calculated on thefollowing basis:(Millions of yen unless otherwise stated)
Fiscal 2011

Fiscal 2012

(April 1, 2011 to March 31, 2012)(April 1, 2012 to March 31, 2013)

Net income

1,899

2,814

Net income applicable to common stock

1,899

2,814

Average number of shares for the period

33,982 thousand shares

33,349 thousand shares(Important Subsequent Events)
Not applicable.

- 24 -

5. Other(1) Manufacturing, New orders and Sales
1) Manufacturing(Millions of yen, figures less than 1 million yen have been omitted)
Fiscal 2011

Fiscal 2012

(April 1, 2011 to March 31, 2012)(April 1, 2012 to March 31, 2013)

Heat sinks

4,406

3,966

2) New Orders(Millions of yen, figures less than 1 million yen have been omitted)
Fiscal 2011

Fiscal 2012

(April 1, 2011 to March 31, 2012)(April 1, 2012 to March 31, 2013)

Semiconductors

132,982

Electronic components

53,87650,237

Electronic equipment

21,772

19,032

Ryosan products
Total

127,633

5,312

4,706

213,944

201,640(2) Geographical Segment Information
Fiscal 2011, the fiscal year ended March 31, 2012
(April 1, 2011 to March 31, 2012)
Japan(Millions of yen, figures less than ¥1 million have been omitted)
Eliminations
Consolidated
Asia
Total
or corporate

Sales:
153,560
64,326
Sales to external customers
Internal sales between
7,046
1,249
segments, or exchange
Total
160,606
65,575
Segment income
2,445
722
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

217,887―

217,887

8,295(8,295)―226,182
3,167(8,295)343

217,887
3,511

Fiscal 2012, the fiscal year ended March 31, 2013
(April 1, 2012 to March 31, 2013)
Japan(Millions of yen, figures less than ¥1 million have been omitted)
Eliminations
Asia
Total
Consolidated
or corporate

Sales:
139,884
66,649
Sales to external customers
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- 25 -

206,534―

206,534

5,577(5,577)―

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

206,534
3,673

(3) Changes of Directors (As of June 21, 2013)
Director to be promoted
Name

Hiroyuki Kurihara

New position

Current position

Managing Director
General Manager, Sales Administration
Headquarters concurrently
General Manager, 3rd Domestic Marketing andSales Headquarters concurrently
General Manager, 1st Semiconductor Business
Headquarters- 26 -

Director
General Manager, 3rd Domestic Marketing and Sales
Headquarters concurrently
General Manager, 1st Semiconductor Business
Headquarters concurrently
General Manager, Sales Administration Headquarters