ANNUAL
REVIEW
2020
Fiscal year ended
January 31, 2020

Aboutthe Ryoyo Group
Ryoyo Electro Corporation was founded in 1961 as a semiconductor trading company. Since then, the Company has continued
to progress under its management philosophy of “Creating value in tune with the times” while expanding its operations intandem with the growth of the electronics industry.
Today, as an electronics trading company with both a semiconductor & device business and an ICT & solutions business, the
RYOYO Group aims to be a driving force in generating new value and emotion, connecting all of the parties whose support weenjoy.

VisionWe aim to be a Solution Partner
delivering a lasting impression
for our interconnected smart-society.
Action Policy
VALUE and PRIDE
SloganConnect Everything. With Technology. With Ideas.

The Underlying RYOYO SPIRIT
Change, Challenge, Speed

CONTENTS
01

About the Ryoyo Group03	Consolidated Financial Highlights

01

08

CSR Initiatives

09

Corporate Governance
Financial Section

04

To Our Shareholders

15

07

Human Resource

22	Corporate Data / Investor Information

Notes on the Scope of This Annual Review
With respect to the contents of this annual review,“the Company” refers to Ryoyo Electro Corporation,
while “the Ryoyo Group” refers to Ryoyo Electro
Corporation and its consolidated subsidiaries Ryoyo
Semicon Corporation, Ryoyo Electro (Shanghai) Co.,
Ltd., Ryoyo Electro Hong Kong Ltd., Ryoyo Electro
Singapore Pte., Ltd., Ryoyo Electro India Pvt. Ltd.
and Ryoyo Electro (Malaysia) Sdn. Bhd.

We are proud to have served with more than half a century of brilliant background amid the structural change in manufacturing.
We make full use of our technological capabilities, informational power and global network proven by such background todevelop cutting-edge technologies and provide support for designing and development as well as modules. Thus, we provide
solutions to clients’ problems.

Ability to
ProposeSolutions

Semiconductors&
Devices

Business
Infrastructure

TechnologicalCompetence

Quality Control

ICT & Solutions

IoT & M2M

Global Action

By combining a variety of options such as

Drawing on the knowledge accumulated inAI, cloud and exclusively designed

our semiconductors & devices business andappliances, we are committed to providing

ICT & solutions business, we offer an

optimal infrastructure services with the aim

environment necessary for utilization of dataof utilizing IT tools that can bondto customers who aim to transform their

management and field sites.

business through digital transformation.

02

Consolidated Financial Highlights
Ryoyo Electro Corporation and Consolidated Subsidiaries
For the years ended January 31,2020, 2019, 2018, 2017, and 2016

Thousands of
U.S. dollars*Millions of yen

2020.1

2019.1

2018.12017.1

2016.12020.1

Net sales¥108,538¥93,799¥92,234¥98,417¥112,332$995,220

Gross profit

10,361

8,925

7,591

8,099

7,852

95,006

Selling, general and administrative expenses

8,206

7,667

7,339

6,726

6,976

75,249Operating profit

2,154

1,257

251

1,373

876

19,756

Profit attributable to owners of parent

1,303

1,020

212

822

743

11,949697

1,132(4,162)

6,874

4,392

6,396

Total assets¥78,117¥75,538¥78,111¥77,973¥76,865$716,282

Total net assets

62,13562,20864,40464,85963,921

569,737For the Year

Free cash flows
At Year-End

Per Share of Common Stock (Yen / U.S. dollars)¥53.06¥41.62¥8.68¥33.54¥30.01$0.487

Total net assets

2,524.47

2,531.90

2,625.66

2,644.10

2,591.70

23.148Cash dividends

80.00

60.00

60.00

40.00

30.00

0.734

Gross profit margin

9.5

9.5

8.2

8.2

7.0

Operating margin

2.0

1.3

0.3

1.4

0.8

Net income

Ratios (%)

Net income margin

1.2

1.1

0.2

0.8

0.7

Equity ratio

79.4

82.2

82.4

83.1

83.1

Return on equity

2.1

1.6

0.3

1.3

1.1

24,572,801

24,521,409

24,506,240

24,507,328

24,636,009

561

526

510

498

501

Other Information
Number of shares issued**
Number of employees* U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥109.06 = U.S.$1.00, the exchange rate prevailing on January 31, 2020.
** Number of shares issued does not include treasury stock.
Notes: 1. The consolidated financial highlights are a translation of the Japanese financial statements. The Japanese version will be used for matters of a legal nature.
2. Unless otherwise noted, figures are rounded down to the nearest million.

Net Sales

Free Cash Flows

Total Assets / Total Net Assets

Millions of yen

Millions of yen

Millions of yen

112,332

6,874

108,538
98,417

92,234

93,79976,865

4,392

77,97364,85963,921
1,132

78,11175,53864,404

78,117

62,20862,135697(4,162)

16.1

17.1

18.1

19.1

20.1

16.1

17.1

18.1

19.1

20.1

16.1

17.1

Total Assets

03

18.1

19.1

Total Net Assets

20.1

To Our Shareholders

Moritaka Nakamura
Representative Director & President

Business Performance in the Fiscal Year Ended January 31, 2020,
the First Year of the Three-Year Business Plan
The Ryoyo Group has positioned the fiscal year under review,

taken the first step in transforming the Ryoyo Group into a

the first year of our three-year business plan, to be anhigh-value-added business as exemplified in our

exceptionally important year, and promoted “restructure

achievements including increased sales and profits for a

trading functions,” “embrace the ‘Only RYOYO’ challenge”

second consecutive year and commencement of full-scaleand “enhance management infrastructure” as specified in the

management reforms such as a transition to the two-division

strategic framework. I believe that we have successfullysystem and a readjustment to the human resource system.

1. Restructure Trading Functions
In recent years, “how can we demonstrate the value of our

We included 5G-related devices in our product line in theexistence” has become crucially important in the electronics

fiscal year under review, which are expected to beindustry, where we operate. Amid the circumstances, we will

widespread in a larger scale after the commercialization in

be providing value unique to us by accelerating the shift to2020, and established a system which enables us to makethe solutions business which enables us to further enhance

proposals immediately when a user desires to start a new

our efforts in the medical field*1 and to make proposals

business.

conscious of end-user needs.

04

To Our Shareholders

2. Embrace the “Only RYOYO” Challenge
We obtained four patents during the past one year owing toour strengthened research and development activity. In

technologies.
Our policy for research and development is to place a

addition to the foregoing, we reaped fruit in a concrete form

particular focus on measures for the fields such as medical

in said year, winning projects thanks to the technologies

care, FA and retailing and to continue to develop technologies

accumulated in the course of our efforts to obtain the patents.

which allow us to demonstrate our unique strengths in theseIt really drove home to me that this was precisely the result

fields.

of “Only RYOYO” being recognized through thecollaboration*2 with our clients including provision of our

3. Enhance Management Infrastructure
We commenced full-scale management reforms in the fiscal

infrastructures such as full introduction of a new humanyear under review, and have worked to strengthen the

resource system and a human resources cultivation program.

governance system such as having an outside Director

During the fiscal year ending January 31, 2021, we willassume a position of Chairman of the Board of Directors andcontinue promoting a team-based mentality and aim to foster

increasing the number of outside Directors, and to enhance

corporate culture where employees can achieve self-internal systems, IT infrastructure and other various businessactualization.

Fiscal Year Ending January 31, 2021: Shift to a Solution Partner
Now that hardware and software as tools to solve issues areto the high-value-added solutions business, and thereby

all ready, we are always focused on the business of our

successfully achieving “net sales of ¥110.0 billion” andclients and end users beyond them, and are committed to“operating profit of ¥3.0 billion,” which are the targets in theproviding value unique to us based on the business strategies

final year of the three-year business plan.

established from the users’ point of view and further
promoting enhancement of corporate value over the medium

looking forward to the Ryoyo Group’s further developments

to long term.

into the future and for their ongoing support and patronage.

Although we expect a decrease in sales in the fiscal year
ending January 31, 2021 due in part to a decrease in special
demand as a fallback after such demand in the fiscal year
under review, we will work to ensure an increased in profit
for the third consecutive year by further accelerating the shift*1 Write about the AI Medical case as a related topic.
*2 Write about the IRIS OHYAMA case as a related topic.

05

I hope that all stakeholders accept my sincerest thanks forEquity participation in AI Medical Service Inc. with the aim of further strengthening
efforts in the medical field
The Ryoyo Group has built up track records in the medical and healthcare fields by, for example, proposing workstations andservers to medical device manufacturers. In February 2019, we established a Solutions Division for the purpose of merging our
ICT & IoT businesses, and have been expanding opportunities to win businesses and accelerating the generation of solution
businesses. In such ways and others, we are building the foundation for creating new value.
Through our recent equity participation in AI Medical Service Inc. (“AIMS”), we aim to promote the collaboration focusing on
the provision of products to be used for development of AI to enable business expansion of the Group. At the same time, weare committed to supporting AIMS in its effort to realize their corporate philosophy, “Helping to save lives around the globe:
Endoscopy AI that supports doctors and protects patients by dramatically reducing missed diagnoses.”
Real-time detection and diagnostic support system for stomach cancer (usage example)
Support during examinations
Carry out the following utilizing AI image
recognition• Detection of lesions• Segmentation of lesion sites in pixels• Classification of the detailed conditions* This technology and system have not yet been approved under Japan’s Act on Securing Quality, Efficacy and Safety of Products Including
Pharmaceuticals and Medical Devices.

* AI Medical Service Inc.
Established in 2017. The company develops endoscopy AI that supports the detection of cancers and aims to obtainregulatory approval and bring it to market as a system that supports doctor’s diagnosis.

“Only RYOYO” initiatives enter in a phase of producing results
The Ryoyo Group is focusing on initiatives to generate added value by combining existing products handled as an electronics
trading company with our proprietary technologies and solutions as part of our efforts to “embrace the ‘Only RYOYO’
challenge”. In an example related to voice recognition, a patent was granted in January 2019 for this technology, which has
been developed in this initiative and was adopted in the “LED ceiling light with voice recognition” product put on the market by
IRIS OHYAMA Inc.
The “LED ceiling light with voice recognition” product recently launched by IRIS OHYAMA Inc. is LED lighting for home use
which can be operated using voice immediately after the installation, without the necessity of an Internet connection, smart
speaker and special application. The lighting apparatus has built-in high-performance voice recognition AI and a microphone,enabling the product to turn the light on in response to a voice command within less than one second, which is shorter thanwhen a smart speaker is used. As such, anyone can operate the lighting easily without feeling any stress.
In addition, with respect to additional technologies which are the source for realizing “Only RYOYO” other than voicerecognition, we have obtained three patents in relation to the “New Chat BOT System in the Talk room to manage the suitablegroup members’ chat-communications” which enables operational process reforms and the“Smart Chat BOT System to share the information by transferring from multi-machines tomulti-humans ‘M2H’.” We will continue with development of elemental technologies and work
to expand our businesses that could serve as a pillar for increased profitability.
“LED ceiling light with voice recognition”- “plain type”

06

Human Resource
Realizing Employees’ Potential
The Group believes that, to advance the three-year business plan and, beyond that, achieve sustainable growth, humanresources are an important foundation and source for increasing corporate value.
In the fiscal year ended January 31, 2020, the first year of our three-year business plan, we introduced a new human resource
system. The evaluation system is created to cultivate human resources who meet the requirements for capabilities and roles
and allows each and every employee to improve their skills and advance theircareers, with a healthy, competitive spirit. In conjunction with this, we havestarted a restructuring of training curriculums and are working to provide newlevel-specific training and training for new employees linked with our social
contribution activities.
We made the cultivation of human resources one of the main themes of thethree-year business plan. While respecting each employee’s strengths andindividuality in their roles, we are committed to the further restructuring andenhancement of our education and training programs with the aim of creating acycle in which everyone learns, grows and thrives.

Diversifying Human Resources
We are proactively hiring diverse human resources, by which we aim to build an organization that incorporates a variety ofperspectives and is capable of generating innovations.
In the recent context of an emphasis on comprehensive human resource strategies including recruitment of employees, wehave adopted a five-day technical internship as a new option with the aim of hiring human resources with diverse values andindividualities, and creating an environment in which they can play active roles. In addition, we constantly hire international
students, and are committed to working together with new employees with diverse perspectives to improve corporate value of
the Company.
As the declining birth rate and aging population greatly transform the labor market in Japan, the active promotion of womenis essential to sustain healthy growth. Currently, women account for around 10% of the total number of the Company’s
employees; however, we are making efforts to increase the number of women in management positions and to promote thecareer development of women.

Item(Non-consolidated)
Number of employees

07

January 31, 2019

January 31, 2020

478

504

Number of female employees

106

121

Ratio of female employees to total employees

22.2%

24.0%

Average length of service by female employees

9.8 years

9.7 years

Ratio of women hired(average for previous 3 years)

27.8%

Ratio of female employees taking childcare leave(average for previous 3 years)

100%CSR Initiatives
Participation in the preservation activity “Michi Bushin Walk” for the World Heritage“Sacred Sites and Pilgrimage Routes in the Kii Mountain Range”
As part of its social contribution activities, the Ryoyo Group participated in the preservation activity “Michi Bushin Walk” for theWorld Heritage “Sacred Sites and Pilgrimage Routes in the Kii Mountain Range.”
This volunteer activity sponsored by Wakayama Prefecture allows us to carry out maintenance, repair and other preservation
activities for the world heritage that includes the Kumano Kodo pilgrimage routes and the Koya Sankei-michi pilgrimage routes
ourselves, representing a sole program of this kind in Japan.
We have already been engaged in the support activities through a matching gift program and a certified NPO, PH-Japan(People’s Hope Japan). Along with the three-year business plan starting from this fiscal year, we decided to take a step forward
and take up an initiative which allows employees’ participation, which took a form of implementing this Michi Bushin (roadrepair) for the Kumano Kodo pilgrimage routes as follow-up training for new employees.
On the day of the preserving work, the weather was nice, and the participating new employees received instructions fromthe Wakayama World Heritage Center and engaged in activities to repair the pilgrimage routes such as carrying two tons of soil
split into smaller lots to a place to store them and taming and solidifying the soil. On the following day, they participated in thetrekking in the Kumano Kodo pilgrimage routes and learned about the history of the routes spanning the ancient times to themodern age. They spent fulfilling two days in majestic nature.
We will continue with participation in these and other initiatives, through which we aim to realize a sustainable local
communities.

• Carrying soil split into smaller lots•T
 aming and solidifying the soil using a tool
called “tako” (rammer)•T rekking guided by a storyteller serving also
as a venue for education of the naturalenvironment* World Heritage “Sacred Sites and Pilgrimage Routes in the Kii Mountain Range”
The three sacred sites “Kumano,” “Koyasan” and “Yoshino and Omine” spanning
three prefectures of Mie, Nara and Wakayama and the pilgrimage routes to thesesites were registered as a World Cultural Heritage in 2004.
Dense forests are nurtured by abundant rainwater in the mountain range. As
there is much rain throughout the year and the soil of pilgrimage routes frequently
flows out, continuous preservation activities are needed.

08Corporate Governance
The Ryoyo Group has been working to enhance corporate governance in order to achieve its sustainable growth and create
medium- to long-term corporate value.
At the Company, we recognize enhancing corporate governance as an important task for management. Therefore, in order tocontinue to guarantee the soundness, transparency, and effectiveness of management, as well as increase corporate value andfulfill our responsibilities to society, we are striving to develop internal systems that ensure the functionality of corporate
governance.

Corporate Governance Highlights

40%

25%

14%
Audit &
Supervisory
Board
Members

Directors

60%

Male/female
ratio of Officers

75%

OutsideInsideOutsideOrganizational structure of the Company
Chairman of the Board of Directors
Directors
Audit & Supervisory Board Members
Independent officers
Voluntarily established advisory committees for
the Board of Directors

Inside86%
MaleFemaleCompany with Audit & Supervisory Board
Outside Director
10 (including 4 outside Directors)
4 (including 3 outside Audit & Supervisory Board Members)
4 outside Directors and 3 outside Audit & Supervisory Board Members
Nomination and Compensation Committee
Fixed compensation (basic compensation)
Medium- to long-term performance-based compensation (restricted stock compensation)

Structure of compensation for Directors

History of Governance Improvements and Future Issues
Total
numberFiscal Yearof
Directors
2020
10

09

InsideOutside6

4(of which,
TopicsfemaleDirectors)
Change to percentage of outside Directors of 40%
(1)

2019

9

7

2

(1)

2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Up to 2007

8
8
8
8
6
6
5
6
6
7
11

6
6
6
6
5
5
5
6
6
7
11

2
2
2
2
1
1

(1)
(1)
(1)
(1)

An outside Director assumed the position of Chairman of the Board of Directors
Stipulated the upper limit of the term of office for Directors and executive officers
Established a voluntary Nomination and Compensation Committee

Appointed a female outside Director
Established independence criteria for outside officers
Appointed an outside Director

Introduced the executive officer system (2002)

Corporate Governance System
General Shareholders’ Meeting
Appointment/
Dismissal

Appointment/Dismissal

Delegation of authority Appointment/Dismissal

Audit by Audit &Supervisory
Board Members

Audit &
Supervisory
Board

Board of Directors

Consultation
ReportFinancial Auditor

Delegation of
authority overbusiness execution

Financial audit
OrderInternal Auditing
Department
Cooperate

Corporate
Attorneys

Appointment/Dismissal

Representative Directors
ReportExecutive Officers

Advice/GuidanceInternal audit

Nomination
andCompensation
Committee

Appointment/Dismissal

Organization for
Business Execution

Board of Directors
The Board of Directors, which consists of ten Directors, of whom four are outside Directors, is responsible for making decisions
as stipulated in laws, regulations, and the articles of incorporation; making important decisions; and the Directors mutually
oversee their execution of operations.
In principle, the Board of Directors meets once a month and met a total of 14 times during the fiscal year under review.
Audit & Supervisory Board
The Company is a Company with an Audit & Supervisory Board as defined by the Companies Act of Japan, whereby Audit &Supervisory Board Members act independently of Directors and oversee Directors’ execution of operations. The Audit &Supervisory Board consists of four Audit & Supervisory Board Members, of whom three are outside Audit & Supervisory Board
Members.
In principle, the Audit & Supervisory Board meets once a month and met a total of 12 times during the fiscal year underreview.
Nomination and Compensation Committee
As an advisory body to the Board of Directors, there is a requirement for the Nomination and Compensation Committee toconsist of three or more Directors, half or more of whom are outside Directors. The Committee consists of six Directors, ofwhom four are outside Directors. One of the outside Directors serves as the Committee chairman.
The Nomination and Compensation Committee met a total of eight times during the fiscal year under review, and deliberates
on the basic policies and proposals for the appointment and dismissal of Directors and executive officers, as well as on thecompensation amounts and basic policies related to decisions on compensation, and reports the results to the Board of
Directors.

10

Corporate Governance

List of Officers (As of April 28, 2020)
Board of Directors
Directors
Moritaka Nakamura
Representative Director & President*14/14
Nomination and Compensation
Committee Member

Kiyoshi Waki
Representative Director & Senior
Managing Executive Officer*14/14
In charge of Corporate Strategy Division
In charge of Corporate Administration
Division
Nomination and Compensation
Committee Member

Masaaki Tanabe
Director & Senior Executive Officer*14/14

Yoshitsugu Tamakoshi
Director & Senior Executive Officer*14/14

In charge of Eastern Region
In charge of Western Region

In charge of Overseas Strategy
Headquarters

Yasushi Okazaki
Director & Senior Executive Officer*11/12

Seiju Yasuda
Director & Senior Executive Officer*12/12In charge of Semiconductor & Device
Division

In charge of Solutions Division

Yoshiharu Hayakawa
Independent Officer

Masumi Shiraishi
Independent Officer

Outside Directors*14/1411*12/12Chairman of the Board of Directors
Nomination and Compensation
Committee Member

Nomination and Compensation
Committee Member

Shinya Takada
Independent Officer

Masashi Oba
Independent Officer

Nomination and Compensation
Committee Member

Nomination and Compensation
Committee Member

Audit & Supervisory Board
Audit & Supervisory Board Member
Hiroyuki Kanno

Outside Audit & Supervisory Board Members
Ryoji Kimura
Independent Officer

Kazumi Akiyama
Independent Officer*13/14**12/12*14/14**12/12Motomi Oi
Independent Officer*Attendance at meetings of the Board of Directors**Attendance at meetings of the Board of Audit & Supervisory Board Members

Criteria for the Selection of Outside Officers
In order to ensure the independence of the candidates it recommends for outside officer (outside Director and outside Audit &Supervisory Board Member), the Company has formulated criteria for the selection of outside officers.
Please see the following website for more details: https://www.ryoyo.co.jp/en/csr

Compensation for Directors and Audit & Supervisory Board Members(i) Matters Related to Policies for Decisions of Compensation Amounts for Directors and Audit & Supervisory
Board Members and Its Calculation Methods
1) Organization to deliberate and decide on compensation for Directors
The Company established a Nomination and Compensation Committee in November 2018 as a voluntary advisory body to theBoard of Directors to further enhance corporate governance by strengthening the independence, objectivity, and accountabilityof the Board of Directors’ functions related to the compensation. The Committee consists of four outside Directors, one ofwhom serves as the Committee chairman, and two Representative Directors, totaling six members. Decisions oncompensation for Directors and Audit & Supervisory Board Members are made upon deliberation by the Committee andsubsequent report on the total amount to the Board of Directors.

12

Corporate Governance2) Structure and determining method of compensation for directors
The structure of compensation for Directors and deliberation process to decide on the compensation amounts are as follows.

Fixed compensation
Compensation plans for Directors concurrently serving as executive officers are deliberated by the Nomination andCompensation Committee based on the compensation table for each rank established by the Committee, taking into
consideration the performance and the degree of contribution of each Director achieved in the previous year. In addition,compensation plans for Directors not concurrently serving as executive officers are deliberated by the Committee taking into
consideration the performance of the Company and other matters in a comprehensive manner.

Restricted stock compensation
Distribution plans are deliberated by the Committee based on the total amount to be paid and the table for each rank, taking
into consideration the performance of the previous year.
Compensation amounts for Audit & Supervisory Board Members are decided through consultation between Audit &Supervisory Board Members.

(ii) Total compensation by class of Directors and Audit & Supervisory Board Members, total compensation
by type, and the number of applicable individuals
Compensation by type (millions of yen)Class of Directors and Audit & Supervisory Total compensation
Fixed
Restricted stock
Board Members(millions of yen)compensationcompensation
Directors
Of which, outside Directors
Audit & Supervisory Board Members
Of which, outside Audit & Supervisory
Board Members
Total
Of which, outside Directors and outside
Audit & Supervisory Board Members

178

155

23

Number ofapplicable
individuals
11

19

19

0

3

33

33

0

4

18

18

0

3

212

188

23

15

37

37

0

6

(iii) Total compensation for individuals whose total amount of compensation is ¥100 million or more
The statement is omitted, since there is no individual whose total amount of consolidated compensation is ¥100 million or
more.

Analysis of Board of Directors’ Effectiveness and Results of Evaluation
The Company implements self-surveys to analyze the overall effectiveness of the Board of Directors.
The most recent survey evaluated the structure of the Board of Directors, how it is operated, how outside officers aretreated, and other matters. Through this survey, the Company confirmed that the Board of Directors was generally functioning
appropriately and that it was indeed effective. Furthermore, the survey indicated that there had been improvements on
documents such as the timing of provision of materials pertaining to Board of Directors’ meetings, as well as Directors’
expertise and other topics. Meanwhile, Directors provided various suggestions on matters such as considering shifting topaperless documents, training opportunities for directors to enable them to fulfil their responsibilities, as well as the cultivationof mutual understanding between outside officers and managers etc.
The Board of Directors will discuss these suggestions going forward and continue to improve its effectiveness with the aimof creating an ideal corporate governance system.
13

Internal Control Systems
The following are our basic principles for establishing internal control systems. These principles help us maintain systems forsound internal control.
<Content of Policy>
1. System for ensuring that the execution of duties by Group Directors and7. System concerning reports submitted by Directors and employees of theemployees is in compliance with all laws, regulations, and the articles ofCompany and by Directors, Audit & Supervisory Board Members, andincorporation

employees of subsidiaries to the Audit & Supervisory Board Members of the

2. System for the storage and management of information related to the
execution of duties by Directors
3. Rules and other systems for containing the risk of damages to the Group
4. System for ensuring the efficient execution of duties by Group Directors

Company; other systems concerning reports submitted to the Audit &Supervisory Board Members; and systems for ensuring that individuals
issuing such reports do not suffer disadvantageous treatment due toreporting

5. System for ensuring the appropriateness of operations undertaken by the

8. Items related to policies concerning the procedures through which Audit &corporate group consisting of Ryoyo Electro and its subsidiaries and forSupervisory Board Members may receive reimbursement, prior to or after

facilitating reporting to the Company with regard to the execution of duties

the fact, for expenses incurred during the execution of their duties as well as

by directors and other individuals at subsidiaries

the treatment of other expenses and liabilities incurred as part of the

6. Items concerning employees requested by the Audit & Supervisory Board
Members to serve as assistants, the independence of these employees from
Directors, and ensuring the effectiveness of the orders issued to suchexecution of duties
9. Other systems for ensuring effective auditing by the Audit & Supervisory
Board Members

employees by Audit & Supervisory Board Members

Risk Management Systems
Risks that may affect our operations include those related to compliance, the environment, disasters, information security,
product quality, foreign exchange rates, and financial reporting. Each department maintains effective risk management systems
managed by employees that are responsible for risk management. In the event that any risk occurs, these employees will guidetheir department in responding quickly and effectively to those risks in order to minimize damages.
For more information on business risks, please refer to the following section of the Company’s corporate website.
https://www.ryoyo.co.jp/en/ir-library/business-risk

Policy for Proactive Communication with Shareholders
The Company endeavors to ensure that disclosure of management information is conducted accurately, impartially, andpromptly. In addition, we recognize that facilitating mutual understanding through proactive communication with shareholders
and incorporating feedback from shareholders into management decision-making are crucial to the Company’s ongoing growth
and to the medium- to long-term improvement of corporate value. Accordingly, the following provisions have been put in place
to support proactive communications activities.
(1) The Director in charge of the Corporate Strategy Division oversees
shareholder communications activities, receiving assistance from thegeneral manager of the Corporate Strategy Division.
(2) The Corporate Planning Department functions as a venue for communication(4) Systems are in place to ensure that feedback received through shareholder
communications activities is shared with management in a timely manner.
(5) In-house workshops regarding insider information are held and other steps
are taken to ensure the appropriate management of insider information.

with shareholders while preparations for communications activities areadvanced through coordination between the Corporate Planning, General
Affairs, and Accounting departments.
(3) Explanatory forums are held for institutional investors and analysts at which
we report on and explain current business conditions and the future

Note: The Company strives to ensure timely and appropriate disclosure ofmanagement information through its corporate website and othervenues.
https://www.ryoyo.co.jp/en

direction of the Company.

14

Financial Section

Consolidated Financial Review
Operating Environment

Results for the Fiscal Year Ended January 31, 2020

During the fiscal year under review, the fiscal year ended
January 31, 2020, the domestic economy saw a continued
decline in export affected by such factors as economic trends
outside Japan and geopolitical risks including a slowdown in
the Chinese economy caused by the trade friction between
the United States and China and concerns over the situationin the Middle East, and the market conditions were notgathering momentum particularly in the manufacturingindustry as evident by production adjustments and signs ofcurtailment of capital investment.
In the electronics industry, where the Ryoyo Group
operates, sales performance was weak particularly in thecommunications and industrial equipment sectors due to aslump in capital investment in the Chinese market. However,in the ICT sector, the industry saw an increase in IT-related
investment aimed at social issues such as decreasing labor
force and work style reforms, and demand related to cloudand security remained robust.

In this environment, we have achieved a significant increasein sales thanks in part to increased PC replacement demandfollowing the termination of support for Windows 7 andall-year contributions from projects for television applications
started in the latter half of the previous fiscal year. In addition,
our voice recognition-related initiatives, undertaken as part ofthe measures under the “embrace the ‘Only RYOYO’
challenge” which aims to create value unique to us, haveshowed a steady progress toward the transformation into ahigh-value-added business as exemplified by a selection for ahome appliance product of a domestic manufacturer.
As a result, consolidated net sales for the fiscal year underreview increased 15.7% year on year, to ¥108,538 million;
operating profit increased 71.3%, to ¥2,154 million; ordinary
profit increased 48.3%, to ¥2,187 million; and profit
attributable to owners of parent increased 27.7%, to ¥1,303
million.

Sales by Products
Semiconductors & Devices
Net sales of semiconductors & devices increased ¥4,432
million year on year, or 8.9%, to ¥54,338 million.
Major sales by segment are as follows:• Analog and power semiconductors
Sales of analog semiconductors enjoyed contributions fromthe expansion of the commercial right, and in addition, salesof power semiconductors increased in the infrastructure
sector (such as solar power and railway applications).
• Logic semiconductors
Part of the business for PCs was terminated during the fiscal
year resulting in a decrease in sales, which was offset by asignificant increase in sales for television applications which
created all-year contributions.
• Memory semiconductors
Sales of products for PC peripherals such as HDD andprinters decreased.

ICT & Solutions
Net sales of ICT & solutions increased ¥10,306 million year
on year, or 23.5%, to ¥54,199 million.
Major sales by segment are as follows:• PC/Server/Network
Sales increased thanks to contributions from large-scale
projects centered around server products.
• I/O equipment
Sales from video-related products such as displays andprojectors increased, but were affected by decreased sales
related to printers.
• Software
PC replacement demand following the termination of support
for Windows 7 was higher than initially expected, resulting ina significant increase in sales.
• Embedded devices/other products
AI- and deep learning-related businesses secured an increasein sales although there was no large-scale project.

million yen
Analog & power
RF & opticalmillion yen
PC/Server/Network
Software

Logic
LCDs

49,906
7,278
5,292
2,057
7,577
18,234

15

MemoryOther electronic devices

54,338
7,643
4,753
2,367
5,510

I/O equipment
Embedded devices & others

54,19943,893

11,662

11,27823,684

21,89515,021
7,779

7,129

9,468

12,172

9,814

11,725

19.1

20.1

19.1

20.1

Sales by Region
Japan
In the fiscal year under review, sales to external customers inJapan increased ¥9,302 million year on year, or 11.9%, to¥87,593 million, following an increase in sales of software forPCs, and operating profit in this regional segment was up¥761 million, or 67.2%, to ¥1,894 million.
Asia
Sales to external customers in Asia increased ¥5,436 million
year on year, or 35.1%, to ¥20,945 million, following an
increase in sales of semiconductors for digital consumer
electronics, and operating profit in this regional segment wasup ¥62 million, or 43.8%, to ¥203 million.
The figure for operating profit presented in the consolidated
statements of profit includes operating profit from eachsegment as well as from intersegment transactions.

Financial Position
Total assets at the end of the fiscal year under review
amounted to ¥78,117 million, ¥2,578 million higher than at
the previous fiscal year-end. This was mainly due to anincrease in notes and accounts receivable-trade.
Total liabilities were up ¥2,652 million, to ¥15,982 million,
mainly due to an increase in notes and accounts payabletrade.
Total net assets decreased ¥73 million, to ¥62,135 million.
This was largely due to a decrease in retained earnings due
to cash dividends paid.

Cash Flows
Cash and cash equivalents totaled ¥12,417 million at the
fiscal year-end, a ¥999 million year-on-year decrease. Major
factors included cash dividends paid.
Net cash provided by operating activities was ¥1,463
million. This outcome was primarily the result of income
before income taxes of ¥2,219 million being recorded despite
an increase of accounts receivable of ¥2,630 million following
an increase in net sales.
Net cash used in investing activities amounted to ¥766
million. This outflow was primarily the result of purchase ofinvestment securities of ¥7,168 million being recorded
despite proceeds from sales of investment securities of¥5,740 million.
Net cash used in financing activities amounted to ¥1,743
million. Major outflows included cash dividends paid.

Returning Profits to Shareholders
Basic policy Regarding the Distribution of profit
The Company views returning profits generated fromoperating activities to its shareholders as one of its mostimportant management tasks. Accordingly, we return profits
to shareholders while considering the Company’s financial
position and the operating environment, while maintaining astable operating foundation and pursue future businessexpansion.
For the fiscal year under review, our basic policy is to pay
stable dividends targeting “a dividend on equity ratio (DOE)
of 3%” as our basic policy, we plan to pay ¥40 per share ofcommon stock for the year-end cash dividend, making for anannual cash dividend of ¥80 per share of common stock
when combined with the interim dividend.
We decided to increase the targeted DOE to 5% for theshareholder returns for the fiscal year ending January 31,
2021.
Based on the new policy, for the fiscal year ending January
31, 2021, we plan to pay an interim dividend of ¥60 and a
year-end dividend of ¥60 each, as ordinary dividends, and,add a commemorative dividend of ¥60 to the year-end
dividend, as February 2021 marks our 60th anniversary since
the foundation of the Company. (Accordingly, we plan toincrease the annual cash dividend by ¥100 from the fiscal
year under review, to ¥180 per share of common stock).

Business Risks
Risks that may affect the business performance, stock price,and financial condition of the Company include, but are notlimited to, the following.
(1) Abrupt changes in economic conditions(2) Fall in the price of products(3) Contracts with suppliers(4) Fluctuation in foreign exchange rates(5) Customers moving operations overseas(6) Country-based risks(7) Product defects, service problems, and delivery andintellectual property rights issues(8) Natural disasters and other acts of God(9) Collection of accounts receivable(10) Disposal and write-down of inventories(11) Impairment losses on write-down of investment
securities(12) Retirement benefit obligations
For more information, please refer to the Company’s
corporate website.
https://www.ryoyo.co.jp/en/ir-library/business-risk/

16

Financial Section

Consolidated Balance Sheets
Ryoyo Electro Corporation and Consolidated Subsidiaries
At January 31, 2020 and 2019

Thousands of
U.S. dollars

Millions of yen

As of
As of
As of
January 31, January 31, January 31,
2020
2019
2020

AssetsCurrent assets
Cash and deposits¥12,417¥13,416$113,855

Notes and accounts receivable-trade28,15225,585258,135–

544–

Merchandise and finished goods

12,59812,124

115,518

Other

1,288

1,444

11,812

Securities

Allowance for doubtful accounts
Current assets

(2)

(2)

(21)

54,453

53,113499,300

394

363

3,614

(297)

(272)

(2,725)

96

91

889

Non-current assets
Property, plant and equipment
Tools, furniture and fixtures
Accumulated depreciation-tools, furniture and fixtures
Tools, furniture and fixtures, net
Land

5

5

52

Other

435

392

3,994

Accumulated depreciation

(308)

(300)

(2,830)

Other, net

126

91

1,164

229

188

2,105

311

404

2,859

Investment securities

20,334

19,439186,453

Retirement benefit asset

1,627

1,431

14,919Property, plant and equipment
Intangible assets
Investments and other assets

Other

1,481

1,305

13,581

Allowance for doubtful accounts

(320)

(344)

(2,935)Investments and other assets

23,122

21,832

212,017

23,66422,425

216,982¥78,117¥75,538$716,282

Non-current assets
Assets17

Thousands of
U.S. dollars

Millions of yen

As of
As of
As of
January 31, January 31, January 31,
2020
2019
2020

Liabilities
Current liabilities¥12,006¥10,092$110,092

Income taxes payable

730

126

6,694

Accrued consumption taxes

226

248

2,081

Notes and accounts payable-trade

467

241

4,291

Other

1,123

815

10,299Current liabilities

14,554

11,523

133,457

Provision for bonuses

Non-current liabilities

182

802

1,670

Deferred tax liabilities

827

466

7,584

Other-NCL

418

537

3,834

Retirement benefit liability

1,427

1,806

13,08915,982

13,329146,545

Capital stock

13,672

13,672

125,362

Capital surplus

13,336

13,336122,286

Retained earnings

35,33735,827

324,018

Treasury shares(2,630)(2,690)(24,115)

Shareholders´ equity

59,71560,145547,550

2,141

1,569

19,631

Non-current liabilities
Liabilities
Net assets
Shareholders´ equity

Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(0)

(0)

(2)

Foreign currency translation adjustment

79

189

725

Remeasurements of defined benefit plans

97

182

896

Valuation and translation adjustments

2,317

1,940

21,250Share acquisition rights
Net assets
Liabilities and net assets

102

123

936

62,13562,208569,737¥78,117¥75,538$716,282

18

Financial Section

Consolidated Statements of Income andConsolidated Comprehensive Statements of Income
Ryoyo Electro Corporation and Consolidated Subsidiaries
For the years ended January 31, 2020 and 2019
Thousands of
U.S. dollars

Millions of yen

Consolidated Statement of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Provision of allowance for doubtful accounts
Salaries and bonuses
Provision for bonuses
Retirement benefit expenses
Rent expenses
Depreciation
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Purchase discounts
Gain on investments in partnership
Other
Total non-operating income
Non-operating expenses
Sales discounts
Foreign exchange losses
Commission expenses
Loss on abandonment of non-current assets
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on contribution of securities to retirement benefit trust
Gain on sales of investment securities
Gain on liquidation of subsidiaries and associates
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

Fiscal year ended Fiscal year ended Fiscal year ended
January 31,
January 31,
January 31,
2020
2019
2020

¥108,538
98,177
10,361¥93,799
84,874
8,925$995,220900,215
95,006

(0)
3,191
434
57
362
264
3,896
8,206
2,154

77
3,027
240
93
362
217
3,650
7,667
1,257

(9)
29,266
3,982
531
3,325
2,421
35,73275,24919,756

62
167
7
18
16
272

110
123
6
60
24
325

576
1,532
67
169
152
2,496

5
181
20
4
26
239
2,187

12
75
18
1
1
108
1,474

55
1,666
186
45
247
2,199
20,053

700
430
9
1,140

–
145
16
162

6,421
3,947
90
10,458

1,107
1,107
2,219
771
145
916
1,303
¥1,303

104
104
1,532
282
229
512
1,020
¥1,020

10,158
10,15820,353
7,070
1,333
8,403
11,949$11,949

1,303

1,020

11,949

571
0
(110)
(84)
377
1,680

(1,444)
0
(240)
(131)
(1,816)
(796)

5,242
2
(1,011)(774)
3,460
15,409

1,680
–

(796)
–

15,409–Consolidated Comprehensive Statement of Income

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

19Consolidated Statements of Changes in Net Assets
Ryoyo Electro Corporation and Consolidated Subsidiaries
For the years ended January 31, 2020 and 2019

Millions of yen
Shareholders’ equity

Accumulated other comprehensive income

Total
shareholders’equityValuationdifference
on availablefor-salesecurities¥1,569Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Share
acquisitionrightsTotal
net assets

¥189

¥182

¥123

¥62,208

From February 1, 2019
to January 31, 2020

Capitalstock

CapitalsurplusRetainedearnings

TreasurysharesBalance at beginning of current period
Changes of items during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Exercise of share acquisition rights
Restricted stock payment
Increasing and decreasing byconsolidated subsidiaries merging
with unconsolidated subsidiaries
Transfer to capital surplus
from retained earnings
Net changes of items otherthan shareholders’ equity
Total changes of items during period
Balance at end of current period¥13,672¥13,336¥35,827¥(2,690) ¥60,145(1,718)1,303(1,718)
1,303
(1)
20
35

(1,718)
1,303
(1)
20
35

(69)

(69)

(69)

(4)

–

–

(1)
36
24

(15)
10

4
–
¥13,672–¥13,336(490)¥35,337

¥(0)

–

571

0

(110)

(84)

60
(429)
¥(2,630) ¥59,715

571¥2,141

0
¥(0)

(110)
¥79

(84)
¥97

(20)

356

(20)
(73)
¥102 ¥62,135

Millions of yen
Shareholders’ equity

Accumulated other comprehensive income

Total
shareholders’equityValuationdifference
on availablefor-salesecurities¥3,013

From February 1, 2018
to January 31, 2019

Capitalstock

CapitalsurplusRetainedearnings

TreasurysharesBalance at beginning of current period
Changes of items during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Exercise of share acquisition rights
Net changes of items otherthan shareholders’ equity
Total changes of items during period
Balance at end of current period¥13,672¥13,336¥36,287¥(2,707) ¥60,588(1,470)1,020(1,470)
1,020
(1)
0
9

(1)
0
18

0
(9)
–
¥13,672–¥13,336(460)¥35,827

Deferred
gains orlosses onhedges¥(0)Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Share
acquisitionrightsTotal net
assets

¥430

¥313

¥59

¥64,404(1,470)
1,020
(1)
0
9

–

(1,444)

0

(240)

(131)

63

(1,753)17(442)¥(2,690) ¥60,145(1,444)¥1,569

0
¥(0)

(240)
¥189

(131)
¥182

63
¥123

(2,195)¥62,208

Thousands of U.S. Dollars
Shareholders’ equity

From February 1, 2019
to January 31, 2020

Capitalstock

CapitalsurplusRetainedearnings

Treasuryshares

Accumulated other comprehensive income

Total
shareholders’equityValuationdifference on
availablefor-salesecurities

Balance at beginning of current period $125,362 $122,286 $328,511 $(24,669) $551,491 $14,389
Changes of items during period
Dividends of surplus(15,758)(15,758)
Profit attributable to owners of parent
11,94911,949Purchase of treasury shares
(10)
(10)
Exercise of share acquisition rights
(143)
336
193
Restricted stock payment
99
227
327
Increasing and decreasing byconsolidated subsidiaries merging
(641)
(641)
with unconsolidated subsidiaries
Transfer to capital surplus
44
(44)
–
from retained earnings
Net changes of items other–5,242
than shareholders’ equity
Total changes of items during period––(4,494)553(3,941)
5,242
Balance at end of current period $125,362 $122,286 $324,018 $(24,115) $547,550 $19,631

Deferred
gains orlosses onhedges$(4)

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans$1,736$1,669ShareacquisitionrightsTotal net
assets$1,128 $570,410(15,758)
11,949
(10)
193
327
(641)
–

2

(1,011)

(774)

(192)

3,268

2
$(2)

(1,011)
$725

(774)
$896

(192)
(673)
$936 $569,737

20

Financial Section

Consolidated Statements of Cash Flows
Ryoyo Electro Corporation and Consolidated Subsidiaries
For the years ended January 31, 2020 and 2019

Thousands of
U.S. dollars

Millions of yen

Fiscal year ended Fiscal year ended Fiscal year ended
January 31,
January 31,
January 31,
2020
2019
2020

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Loss (gain) on sales and retirement of non-current assets
Share-based compensation expenses
Loss (gain) on investments in partnership
Foreign exchange losses (gains)
Increase (decrease) in provision
Increase (decrease) in retirement benefit liability
Interest and dividend income
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities¥2,219
275
6
27
(18)
0
203
(742)
(229)
(429)
1,107
(2,630)
(506)
1,949
(20)
231
1,444
230
(1)
(208)
1,463

¥1,532
217
0
72
(60)
(3)
1
3
(234)
(145)
104
196
(1,310)
518
160
(168)
886
212
–
(509)
588

$20,353
2,529
57
255
(169)
8
1,865
(6,813)(2,108)(3,935)
10,158(24,120)(4,644)
17,878(192)
2,120
13,242
2,114(17)(1,914)
13,424

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from sales of securities
Proceeds from redemption of securities
Purchase of property, plant and equipment and intangible assets
Proceeds from sales of property, plant and equipment and intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from redemption of investment securities
Purchase of shares of subsidiaries and associates
Proceeds from liquidation of affiliates
Payments of loans receivable from subsidiaries and associates
Collection of loans receivable from subsidiaries and affiliates
Proceeds from distribution of investment in partnerships
Purchase of insurance funds
Other, net
Net cash provided by (used in) investing activities

(100)
100
500
–
(164)
1
(7,168)
5,740
500
(59)
66
(220)
–
23
(60)
73
(766)

(1,049)
1,192
–
100
(165)
5
(8)
220
–
(3)
–
(99)
99
183
(50)
118
543

(919)
921
4,587
–
(1,504)
11(65,732)
52,640
4,585
(545)
610
(2,017)
–
217
(557)
676
(7,028)Cash flows from financing activities
Cash dividends paid
Purchase of treasury shares
Proceeds from sales of treasury shares
Repayments of lease obligations
Net cash provided by (used in) financing activities(1,716)(1)–(26)(1,743)(1,467)(1)
0–(1,468)(15,735)
(10)
–
(246)
(15,990)(47)(1,093)
13,41694¥12,417

(140)
(476)
13,893–¥13,416(436)(10,030)
123,022863$113,855

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents
Increase in cash and cash equivalents resulting from merger with unconsolidated subsidiaries
Cash and cash equivalents
21Corporate Data / Investor Information
As of January 31, 2020

Company Name
Ryoyo Electro Corporation
Head Office
1-12-22 Tsukiji, Chuo-ku,
Tokyo 104-8408, Japan
Telephone+81-3-3543-7711
FAX+81-3-3545-3507
Websitehttps://www.ryoyo.co.jp/en
Establishment
February 27, 1961
Capital¥13,672 million
Authorized Shares
119,628,800

Composition of Shareholders
Other corporations

41.2%

Individuals and other

26.0%

Financial institutions

15.9%

Treasury stock

8.3%

Foreign corporations and other foreign investors

8.0%

Securities companies

0.6%

Major Shareholders
Thousandsof shares

Restar Holdings Corporation

%

5,627

22.90

Mitsubishi Electric Corporation

2,246

9.14

SHC Corporation

2,118

8.62

The Master Trust Bank of Japan (Trust account)

1,121

4.56

523

2.13

Sheep Shokai Co.
Japan Trustee Services Bank, Ltd. (Trust account 9)

471

1.92

Nippon Life Insurance Company

409

1.67

Japan Trustee Services Bank, Ltd. (Trust account 5)

403

1.64

Japan Trustee Services Bank, Ltd. (Trust account)

325

1.32

The Master Trust Bank of Japan (Retail trust account 620090806)

276

1.12

Note: Calculations for the ownership percentages above do not account for the 2,227,199 shares of treasury stock.

Shares Issued
26,800,000
Stock Price Chart
Shareholders
8,417
Stock Trading Unit
100 shares
Stock Listing
Tokyo Stock Exchange,
First Section
Ticker Code8068
Transfer Agent
Mitsubishi UFJ Trust andBanking Corporation

Stock Price
Yen

Nikkei Stock Average
Yen

25,000

2,500

2,000

20,0001,500

15,0001,000

10,000

Trading Volume
Shares9,000,000

6,000,000

3,000,000

0

4

5

6

7

8
2017

9

10 11 12

1

2

3

4

5

6

7

2018

8

9

10 11 12

1

2

3

4

5

6

7

8

9

10 11 12

2019

1

2

3

2020

Caution on Forward-Looking Statements
The contents of this annual review that are not historical fact represent projections based on expectations and plans for the future. These projections contain elements of risk anduncertainty. As a result, forward-looking statements made in this annual review may differ from actual results and performance.
Notes on Performance Figures in This Annual Review
The performance figures used in this annual review, including those from previous fiscal years, are based on Ryoyo Electro Corporation’s audited Japanese financial reviews.

22

In consideration for the environment, this annual review uses paper that has been approved by the
Forest Stewardship Council (FSC). Additionally, this annual review is printed using highly biodegradable
vegetable oil ink.

Printed in Japan