Supplementary Materials for
FY2023 First Half Financial Results
Results for the six months ended September 30, 2023
FY2023: Fiscal year ending March 31, 2024

November 15, 2023
Ryosan Company, Limited

Financial Results for H1 FY2023 andFY2023 Forecast of Business Results
Summary of Measures in the Medium-TermBusiness Plan for FY2023

Management Integration with Ryoyo
ElectroAppendix2

Financial Results

Overview of Consolidated Business Resultsfor H1 FY2023

In the second quarter (Q2), net sales increased over the first quarter (Q1) in the consumer, information &communications and automotive sectors.
◼ During the consolidated first half under review (first half of the 2023 fiscal year: H1 FY2023), net sales declined
against the same period of the previous fiscal year (YoY) due to the macroeconomic environment and the easingof supply shortages.
◼ Operating income, ordinary income, profit and EPS all declined YoY under the impact of decreasing net sales,
despite a reduction in SG&A expenses.
（単位：億円）FY2022
FY2023◼

H1 BusinessResults

Forecast at
Start
of FY

H1 BusinessResults

Net sales

167.7

135.0

147.4

–12.1%+9.2%

Gross profit

17.5

12.0

14.1

–19.6%＋17.8%

Operating income

9.0

4.0

6.6

–26.6%＋65.3%(% of net sales)（5.4%）（3.1%）（4.5%）（–0.9pt）（+1.4%）

Ordinary income

6.5

3.0

4.9

–24.9%＋64.9%(% of net sales)（3.9%）（2.3%）（3.4%）（–0.5pt）（+1.1%）

4.4

2.0

3.4

–23.5%+71.2%（2.7%）（1.5%）（2.3%）（–0.3pt）（+0.8%）EPS (¥)

191.0285.35

146.05–23.5%+71.1%

US dollar average rate (¥)

133.97ー

141.005.2%

ー(Unit: ¥bil)

Profit(% of net sales)

Change(FY2023–2022)

Comparison with
Forecast at Start
of FY

3

Factors in Increase/Decrease of Net Sales and Operating Income

Financial Resultsfor H1 FY2023◼ Net sales declined ¥20.3 bil YoY as major projects in information &communications wrapped up and adjustment continued in the industrialequipment sector.
◼ Operating income declined ¥2.4 bil YoY under the impact of decreasing net
sales, despite a reduction in SG&A expenses.
Net Sales (billions of yen)

Operating Income (billions of yen)

167.7

9.0

Information &Impact ofcommunications
yen–9.6
Depreciation
Industrial
147.4
+4.4
equipment–6.7
Automotive–5.4 Consumer–20.3

Decreasein salesvolume–1.9

H1 FY2023

6.6

–2.4

Impact ofoperatingmargin–1.5–3.0

H1 FY2022

Decreasein SG&A
expenses–1.0

H1 FY2022

H1 FY2023
4

Financial Results

Segment Informationfor H1 FY2023◼ In the Device Business, sales in the automotive sector rose in Q2 in comparison with Q1,
but against the backdrop of the macroeconomic environment and normalization of
supply shortages, net sales in H1 FY2023 amounted to ¥131.1 bil (down 10.4% YoY)
and operating income dropped to ¥5.6 bil (down 30.5% YoY).
◼ In the Solution Business, net sales increased in Q2 over Q1 in the consumer, information& communications and automotive sectors. Though sales of facility equipment werefavorable, major projects in information & communications wrapped up. Net sales in H1
FY2023 fell to ¥16.3 bil (down 23.9% YoY) and operating income declined to ¥0.8 bil(down 28.2% YoY).
FY2022
H1
Business
Results(Unit: ¥bil)

Change(FY20232022)

Comparison with
Forecast at Start
of FY

131.1

–10.4%+14.0％

8.27

3.50

5.69

–30.5%+62.6％（5.7%）（3.0%）（4.4%）（–1.3pt）（+1.3pt）

Net sales

21.4

20.0

16.3

–23.9%–18.5％

Operating income

1.16

0.50

0.8

–28.2%+66.0％（5.4%）（2.5%）（5.1%）（–0.3pt）（+2.6pt）

167.7

135.0

147.4

–12.1%+9.2％

9.00（5.4%）

4.00（3.0%）

6.6（4.5%）–26.6%（–0.9pt）+65.3％（+1.5pt）

Operating income(% of net sales)
Net sales
Total

H1
Business
Results

115.0(% of net sales)
Solution
Business

Forecast atStart of FY

146.2

Net sales
DeviceBusiness

FY2023Operating income(% of net sales)

5Financial Results

Trend in Net Sales and Operating Margins by Quarterfor H1 FY2023◼ Net sales have maintained a level of ¥70 bil per quarter since Q4 FY2021. In the same period,
operating margin has maintained a level of 3% or higher, except in Q4 FY2021.
◼ In Q2 FY2023, trends were favorable in the Device Business for the automotive and industrial
equipment sectors and in the Solution Business for consumer, information & communications
and automotive sectors. Net sales and income rose in comparison with Q1.

120

Devices

Net Sales (Unit: ¥bil)

SolutionsOP. Margin

OP. Margin

8.0%

95.0
6.9%
90

60

79.1
61.3

62.9

6.6

7.9

3.5%
30

54.6

3.1%

54.9

69.2

9.2

7.9

11.8
72.6

76.2
7.8

9.5

61.3

3.4%
69.8

4.6%

68.3

70.9

83.2

63.0

10.7

3.5%
2.8%

3.6%

81.6

6.0%

76.5
70.8 4.8%
8.2
8.1
4.0%

4.1%

62.7

68.3

0

2.0%

0.0%

Q1

Q2

Q3
FY2021

Q4

Q1

Q2

Q3
FY2022Q4Q1Q2FY20236

Financial Results

Segment Trend Informationfor H1 FY2023◼ By application, sales in the automotive and consumer sectors increased as a share of total. There areno major changes in regional trends to report. In sales by product, sales of electromechanicalcomponents for consumers were favorable, increasing as a share of total device sales. With the wrapup of major projects for IT equipment in the information & communications sector, IT equipment
decreased as share of total solution sales.
By Application

By Product

15%

5%
11%

OthersInformation &Communications

3%

19%

21%

Consumer

21%

19%

41%

44%

4%

H1 FY2022

Industrial Equipment

Solutions

10%

2%
9%

3%

4%

Display Devices

17%

19%

Electrotechnical
Components

8%5%Memory59%

61%

System LSIs/
Discrete
Semiconductors

H1 FY2022

H1 FY2023

Automotive

IT Equipment

H1 FY2023

By Region

5%

4%

Others44%

45%

Asia ex-Japan

51%

51%

Japan

H1 FY2022■ Devices ■ Solutions

H1 FY2023

7

Consolidated Balance Sheet/Consolidated Statement of Cash Flow◼
◼

Financial Resultsfor H1 FY2023

Though accounts receivable–trade declined, total assets increased by ¥4.1 bil due to increases ininventories and accounts receivable–other.
Operating cash flow increased by ¥5.7 bil. Operating cash flow was used to reduce debt. Cash and cash
equivalents at end of period were at roughly the same level as at the end of the previous fiscal period.
Consolidated Balance Sheet
As of Sep. 30,
2022（Unit: ¥ bil）

As of Mar.
31, 2023

As of Sep. 30,
2023

ChangeTotal assets

205.3

188.1

192.2

＋4.1

Current assets

191.4

173.9

176.8

+2.9

Accounts receivable–trade

109.0

95.1

90.8

–4.3

Inventories

51.1

47.6

51.6

+4.0

Accounts receivable–other

16.9

14.3

17.3

+3.0

Non-current assets

13.8

14.2

15.4

＋1.1

Liabilities

104.0

85.4

84.2

–1.2

Accounts payable–trade

44.3

39.9

42.2

+2.2

Short-term loans payable, lease obligations
and commercial papers

50.1

34.2

33.8

–0.3

Net assets

101.2

102.7

107.9

＋5.2

Net assets to total assets (%)

49.3%

54.6%

56.1%

+1.5ptConsolidated Statement of Cash Flow
（Unit: ¥ bil）

H1 FY2022

H2 FY2022

H1 FY2023

ChangeCash flow from operating activities

2.0

19.5

5.7

–13.8

Cash flow from investing activities

–0.1

–0.4

–0.2

+0.2

Cash flow from financing activities

–0.2

–15.3

–6.2

+9.1

Cash and cash equivalents at end of period

13.8

16.7

16.6

–0.1

8

FY2023 Forecast ofBusiness Results

Overview of Business Forecasts◼ In the forecast of consolidated business results for FY2023, net sales are
expected to be ¥270.0 bil., operating income to be ¥8.0 bil and profit tobe ¥5.0 bil.
（単位：億円）FY2022
H1

FY2023Full Year(Unit: ¥bil)

H1
Business
Results

Full-year
Forecast

Change(FY2023–2022)

Net sales

167.7

325.6

147.4

270.0

–17.1%

Gross profit

17.5

32.8

14.1

24.0

–26.8%

Operating income

9.0

15.4

6.6

8.0

–48.1%(% of net sales)（5.4%）（4.7％）（4.5%）（3.0%）（–1.7pt）

Ordinary income

6.5

13.3

4.9

7.0

–47.6%(% of net sales)（3.9%）（4.1%）（3.4%）（2.6%）（–1.5pt）

4.4

9.2

3.4

5.0

–45.8%（2.7%）（2.8%）（2.3%）（1.9%）（–0.9pt）

EPS (¥)

191.02393.70146.05213.39–45.8%

US dollar average rate (¥)

133.97135.47141.00130.00–4.0%

Profit(% of net sales)

9Financial Results for H1 FY2023 andFY2023 Forecast of Business Results
Summary of Measures in the MediumTerm Business Plan for FY2023
Management Integration with Ryoyo
ElectroAppendix

10

The 11th Medium-Term Business Plan

FY2023

Overview◼ The 11th Medium-Term Business Plan began in FY2021. The plan features six key measures, in linewith Ryosan’s Long-Term Vision. This Medium-Term Business Plan showed the shift of Ryosan’s
management stance from a rigid defensive mode focused on improvement of income to an active mode
focused on transforming its business. As the current fiscal year is the last year of the Medium-TermBusiness Plan, Ryosan is moving to complete all measures by H2 of FY2023.
◼ Ryosan has entered into the final contract for the upcoming management integration with Ryoyo Electro.
Discussions are accelerating toward the formation of a holding-company structure on April 1, 2024
(please see next section).

Management integration with Ryoyo Electro
Harvesting of prior investment
products and making newinvestments(Marketing)

Investments to transform
Ryosan’s line of business

Portfolio
diversification(Internal Control)

Raising efficiency of
existing businesses

Reinforcing thefoundations(Domestic)

Strengthening of
local business in
China & HK

Measures in the 11th
Medium-TermBusiness Plan

(Overseas)
11

FY2023 Status Update on Key Measures
Measures

Details

FY2023

Measures

Actions performed in H1 FY2023
・A website was launched to disseminate
information of use to customers.
・To provide infrastructure for sharing sales expertise,webinars were prepared. Ryosan began using thewebinars to develop its customer base.

Strengthening of local
business in China and HK

・Co-working with local
partners

・Ryosan concluded a basic agreement to establish a jointventure company with IAT Automobile Technology Co.,
Ltd. (IAT), China’s largest independent automotiveengineering company.

Harvesting of priorinvestment products
and making newinvestments

・Harvesting businessfrom previous
investments(additionally introduced
products)
・Discovery of new
products

・Ryosan continued to expand sales of prior investment
products.
・After formation of the necessary sales forces in eachsales Headquarters, Ryosan steadily increased theamounts discussed in sales negotiations and increased
the number of contracts with dealers. Going forward,
Ryosan is planning new methods to discoveropportunities, leveraging its strengths.

Investments totransform Ryosan’sline of business・Entry into new
businesses grounded incustomer needs

・Ryosan accelerated its collaboration with Priken. Ryosanbuilt a base and framework for utilization and began
cooperation with business sites.

Raising efficiency of
existing businesses

・Usage of digitaltechnology

・Internal workflow systems were prepared. Efforts beganwith the document approval process. Future expansion of
the range of application was considered.

・Establishment ofmanagement bases
such as education andrisk management

・Ryosan launched a project under specialized direction torearrange the Engineering Headquarters into anorganization that can function as originally intended.
・Ryosan continued to address issues that arose from
implementation of a new personnel system and to carryout activities to entrench the new system.
・Ryosan implemented programs for training in English andbusiness skills.
・Broad preparations were made on basic policy onsustainability and systems for its advancement.

Reinforcing thefoundations

Shift to an operatingdivision structure

The 11th Medium-Term Business Plan

Portfolio diversification

・Expansion of new
customers andstrengthening ofmarketing functions

12

Portfolio Diversification: Strengthening Marketing Functions

FY2023

Measures◼ Dissemination of information through the Ryosan Tech Lab service site
• Based on the concept of “a magazine site for engineers,” Ryosan is disseminating various
information for customers who want to receive information faster and in an easy-to-understandformat. Case studies and technical information are provided that are of particular interest toelectronics trading companies.
◼ Dissemination of information through webinars
・ Information is disseminated to customers on ways of using technology in line with customer
needs and on processes for reaching solutions. The webinars are also used for in-house training
to strengthen sales capabilities.
Ryosan Tech Lab

Dissemination of information through webinars

A magazine site for engineers

Dissemination of information to customers on ways ofusing technology in line with customer needs and on
processes for reaching solutions

・Useful information

Date

Content

Technological trends, market trends,
success/failure stories, case studies in
adoption/introduction, tech columns, etc.

April 25

Introduction: Enabling AI on embedded
microcontrollers

・Product information

May 30

Achieve miniaturization and short-TAT
development!
An introduction to mixed analog/digitalprogrammable ICs

Introduction to manufacturers, productadvantages, lineup of products handled
for each set, etc.

Jun. 20

Starting from zero on security microcontrollers

Aug. 29

Introduction to robotics

・Comparative information

Sep. 26

Selection methods, troubleshooting,vendor maps, product comparisons, etc.

Basic webinar on power sources: Technicaltrends in power electronics in terms of Tesla andmade-in-Japan EV power sources

Oct. 31

Seminar on introducing BLE for IoT device
development
13

Strengthening of Local Business in China & HK: Joint Venture with IAT◼ In September 2023, Ryosan concluded a basic agreement
to establish a joint-venture company with IAT, the China’s
largest independent automotive engineering company.

◼ Leveraging its expertise in the automotive businessdeveloped over many years, the Ryosan Group isproviding electronic components necessary for platform
development to local automakers and their suppliers in theworld’s biggest China’s EV market.
◼ Going beyond its framework as an electronics trading
company, Ryosan is fusing its knowledge with that of theengineering company to provide EV platforms, aiming tocreate a new business model.

Sichuan Xin Century
Technology LLC

Location

Chengdu City, Sichuan Province,
China

Representative

Qiwu Xuan, Chairman

Business
Activities

Wholesale of semiconductors andelectronic parts

Capital50.0 million RMB

Investment
Ratio

IAT: 60%
Ryosan Group: 40%

Joint-venturecompany•First full-fledged participation in a Chinese EV supply chain
by a Japanese-affiliated electronics trading company•

Model for success in horizontal deployment of Ryosan’s
knowledge and expertise in automotive electronics
cultivated over many years

Supply of parts toautomakers andTier 1 companies✓✓✓

Improvement of the value-added Ryosan offers to existing
suppliers by gathering information on the needs of the Chinese
auto market
Creation of business opportunities by leveraging IAT’s solutions
and business base
Expansion of product lineup through new suppliers
Gathering of information on trends in China’s EV market, which ismore advanced than Japan’s.

Measures

Company
namePurposes of investment and strategic significance✓

FY2023Creation of a platform forsharing of parts, thereby
enabling centralized sourcing

Ryosan

IAT

Ability to propose
ideas for parts; sales
channels

Connections in China,technical capabilities
Vehicle design services
14

Investments to Transform Ryosan’s Lineof Business: Collaboration with Priken

Prior Investment Products: Discovery of
New Products Based on Needs◼ After investing in Priken, Ryosan ispreparing a framework for creatingsynergies. The two companies havebegun collaboration to approachmachinery and device manufacturers.

◼ Ryosan is moving forward to discover new
products based on customer needs. Drawing
on the results of analysis of customer needs,
Ryosan is discovering new products andexpanding its businesses.
Trend in amounts discussed in sales
negotiations on new products

Collaboration with Priken
Targetcustomers

Main actions

Parts
evaluation
boardsDevicemanufacturers

Expansion of operations (increasein orders accepted for evaluation
boards and cross-selling ofproducts to each company’s
customers)

Small-lotproduction

Machinemanufacturers

Responses to provide
solutions to customers’
problems (response to smallorders)Scale of sales

Prototypes
Approaches tocustomers

Machinemanufacturers

Construction and support ofcontact points with customers
Deepening of understanding ofcustomers(Unit: ¥bil)
6

5

4

3

2

1

Characteristics of Priken

FY2022Q4FY202315(Forecast)

Q3
FY2021(Forecast)

Q2

Q1

Q4

Q3

Q2

Q1

Q4

0

Q3

• Specializes in multi-model, small-lot production anddelivery of prototypes on tight deadlines• Seamless provision of services from circuit design throughartwork simulation to circuit-board production andmounting• Wide-ranging product lineup• A leader in testing boards for electronic components

Reinforcing the Foundations: Sustainability/TCFD/Human Capital◼

FY2023

Measures

Ryosan is moving forward to achieve its Long-Term Vision, RS Innovation 2030. The
Company is visualizing its efforts from the point of view of responding to society’s demands
for sustainability. By disclosing non-financial information, Ryosan is engaging in continuous
dialogue with investors and other stakeholders.

Measures in H2

Sustainability

Measuresagainst global
warming (TCFD)

Strengtheningof support forhuman capital
Indicator⚫ A Sustainability Promotion Committee will be established in
H2.
⚫ A basic policy on sustainability will be drafted.
(CSR approach, coexistence with the environment, relations
with employees)⚫ CO2 emissions in Scope 3 (domestic) will becalculated and disclosed in H2.

⚫ Ryosan disclosed targets and results on item related
to human capital in June 2023. Concrete measures
to advance each item will be clarified in and after
H2.
TargetShare of women in senior
15% by March 31, 2031
management
Percentage of male workers who take
100% by March 31, 2031
childcare leave
Gender pay gap(Women’s wages as percentage of
90% by March 31, 2031
men’s wages)

Result (FY2022)
2.2％
33.3％

65.8％
16

FY2023

Financial Plan

Measures◼ Ryosan expects to meet its targets for the 11th Medium-Term Business
Plan this fiscal year, the last fiscal year of the plan period.

Unit: mil

FY2023Medium-Term Business
Plan Target

FY2023 Target

Net sales

263,000

270,000

Gross profit

21,30024,000Operating income

6,900

8,000

ROE

5.0%

5.0％

Source: 11th Medium-Term Business
Plan, published on May 14, 2021

Creation ofbusinesses anddramatic
Transformation of improvement ofenterpriseearning
constitution
capability

Shift from rigid
defensive modeto active mode
17

FY2023

Forecast of Return to Shareholders

Measures◼ Interim dividend: In view of the upward revision of the forecast of business results for H1 FY2023,
Ryosan has revised the ordinary dividend upward from ¥50 per share to ¥60 per share.
◼ Year-end dividend: On July 15, 2023, Ryosan celebrated the 40th anniversary of its listing on theTokyo Stock Exchange. On November 18, 2023, Ryosan celebrates the 70th anniversary of its
foundation. In commemoration of these milestones, and to express its heartfelt gratitude to allshareholders for their steadfast support, Ryosan expects to distribute a commemorative dividend of¥40 per share.
Dividend per ShareDividend（¥）
100

Ordinary Dividend

Special Dividend

Total Dividend: ¥120
Dividend Payout Ratio: 52%

¥165
42%

¥150
70%
40
10

50

90

20

70

75
50

50

Interim (Forecast)Year-End (Forecast)300InterimYear-EndFY2021

InterimYear-EndFY2022

FY202318

Financial Results for H1 FY2023 andFY2023 Forecast of Business Results
Summary of Measures in the Medium-TermBusiness Plan for FY2023

Management Integration with Ryoyo
ElectroAppendix19

Positioning Within Group-wide Measures in Medium-term Business Plan
Implementation of measures in the 11th Medium-term Business Plan, including the strategic
partnership with IAT, has expanded Ryosan’s business. As a result, Ryosan’s enterprise value is
growing steadily. The strategic integration with Ryoyo Electro will enable Ryosan to reach out to
new players and improve its value further over the medium-to-long-term.
11th Medium-term Business Plan (FY2021–FY2023) 1 As of June 30, 2023

FY2021

FY2022PBR 0.59
ROE 5.3%

２ As of March 31, 2023

FY2023PBR 0.981
ROE 9.3%2

Strengthening of local
business in China and HK
Expansion of productlineup••••Purchase of stake in YAMASEI TECH; collaboration with
Qingdao Sanyuan Taike Electronics Technology
Reorganization in South China region
Increase in strategic product sales of ¥21 billion (comparedwith FY2021)
11-company increase in agency contracts, increase in net salesof ¥3 billion (compared with FY2021)•

Purchase of stake in Priken, inclusion in equity-method
affiliates
Reorganization of Solution Business Headquarters

Investments totransform Ryosan’sline of business••

Establishment of Direct Marketing Team
Installation of system infrastructure

Raising efficiency of
existing businesses•

Increase in efficiency through use of DX

Portfolio diversification•

Strategic
partnershipwith IAT

Switch to system
of autonomous
divisionsManagement
integration with Ryoyo
ElectroDetails of initiatives and their results

Maximizationof enterprise
value

20

Background and Objectives of the Management Integration
Against the backdrop of the changing functions and roles required of electronics trading
companies, we, as a new core group in the industry, will seek to add value to the entire value
chain by joining the forces of two companies with different strengths.

Challenges as a new core group
Objectives

Generationof synergy➢ Strengths in solution
business combining ICT andservices➢ Strengths in device
business with strong
customer base

Changing functions and roles required of electronics trading companies

Background

Customers

Suppliers⚫

Incentives to improve operational
efficiency in light of the impact of
the Covid-19 pandemic, etc.

⚫ Expansion of scale throughmergers and acquisitions

Changes in the external environment⚫

Softening supply and demand in thesemiconductor market⚫

Conflict between the U.S. andChina and a tightening ofsemiconductor regulations⚫

Changes in interest rates andforeign exchange rates

Accelerating IoT and DX acrosssociety⚫

Changing and diversified
customer needs⚫
⚫

Rising prices of resources andmaterials⚫

Increasing geopolitical risks⚫ Review of distribution
policies, including agency
and commercial rights
21

[Synergy] Initiatives to Generate Synergies[Group management targets for the fiscal year ending March 31, 2029]
Sales Volume: JPY 500 billion; Operating Profit: JPY 30 billion
Improving
quality

Expandingquantity◼ Strengthening the customer baseand product lines◼ Expanding new contact points withcustomers◼ Increasing products that matchcustomer needs
Synergy effects by
pursuing quantityand quality◼ Acquiring know-how to meet needs◼ Pursuing uniqueness to respond toneeds◼ Expanding business models forcustomers◼ Grasping customer needs◼ Understanding of common
market needs

Creating an optimal structure and fostering a
corporate culture◼

(Structure) Accelerating harmony and integration for the unified management of the
group

◼

(Structure) Establishing a system to realize the provision of new value to customers◼

(Corporate culture) Individual growth and improvement of organizational capabilities
22[Synergy] Expanding Quantity and Improving Quality
We will help our customers to solve their problems by combining ourcontact points with customers, product lines and know-how, all of which
are developed by Ryoyo Electro and Ryosan.
Improving quality

Expanding quantity
Expanding contact
points with customers◼

◼

Strengthening
information
dissemination tocustomers
Promoting cross-selling

Increasing productsthat match needs◼

◼

Strengthening theanalysis of customer
needs
Providing products andservices that meetcustomer requests

Diversified business models◼

Enhancing service business
Enhancing consulting functions

Strengthening the customer base and productlines◼

Approaching and providing a wide variety of products
to the customers of the Companies
Upgradinghardware・ Semiconductors
・ Electronic parts
・ Materials
・ Boards
・ ICT devices
・ Manufacturing equipment

Upgradingsoftware・Embedded software modules
・Cloud software

Operating business by leveraging the products andservices, know-how and expertise of theCompanies

Expandingknow-how◼

Expanding businessmodels byaccumulating andacquiring know-how

Creating unique
value◼

Creating uniquevalue in line withcustomer needs

23[Synergy] Creating an optimal structure and fostering a corporate culture

Fostering a corporate culture
Improving the ability to meet customer needs throughemployees’ individual growth and improvement oforganizational capabilities◼ Fostering a corporate culture in which each and every employee canenhance their "individual" skills and experience the joy of contributing tocustomers and personal growth

Creating an optimal organization
Personnel
affairsIT
system

Accounting

Technology

Publicity

Boosting productivity and efficiency by integratingcore systems and promoting DX◼

Establishing a structure to share and utilize
information◼

Optimizing various corporate policies

Operation

Establishing a system to realize theprovision of new value to customers

Developing an infrastructure for theunified management of the group
◼

Sales

◼

Developing technical/know-how collaboration◼

Improving sales capabilities, and operational
efficiency and accuracy by standardizing businessprocesses
24Overview of the Joint Holding Company
Overview of the Joint Holding Company
Trade nameLocation of the head office
Location of the headquarters
Scheduled date ofestablishment
Fiscal year-end

Ryoyo Ryosan Holdings, Inc.
2-3-5 Higashi-Kanda, Chiyoda-ku, Tokyo, 101-0031
1-12-22 Tsukiji, Chuo-ku, Tokyo 104-8408
April 1, 2024
March 31

Schedule of management integration (Planned)
October 16,
2023
December 19,
2023
March 27,2024
March 28,
2024
April 1,
2024

The record date for the extraordinary general
meeting of shareholders
The date of the extraordinary general meetingof shareholders
The last trading day of the shares of Ryoyo
Electro and Ryosan on the TSE
The date of delisting the shares of Ryoyo
Electro and Ryosan from the TSE
The effective date of management integration(the date of the initial listing of the shares of
Ryoyo Ryosan Holdings)
25

Financial Results for H1 FY2023 andFY2023 Forecast of Business Results
Summary of Measures in the MediumTerm Business Plan for FY2023
Management Integration with Ryoyo
ElectroAppendix26

Consolidated Business Results by Quarter
Net Sales
100.0(Unit: ¥bil)

Operating Income(Unit: ¥bil)

95.0
79.1

75.0

61.3 62.9

76.2

72.6

69.2

81.6
70.8

76.6

25.0

2.0

0.0
Q3

Q4

Q1

Q2

FY2021Q3Q4Q1FY2022

Q2

6.5

Ordinary income

3.6%
3.4%
2.9%

% of net sales

Q2

Q3

Q4

Q1

FY2021

5.0

5.4

4.3% 4.0%

3.9% 4.5%

4.0

2.7%

2.1%
1.6%

3.3

3.3

2.3
1.6

3.0

3.0

1.9

2.5%
2.0
0.5%

1.1

-1.5%
Q2

2.6

2.0%

0.0%
Q1

6.5%

0.0
Q1

4.0%

2.9

Q2

Q3

Q4

FY2022Q1Q2

FY2023

Profit

5.7%

4.0

2.0

6.0%

(Unit: ¥bil)

8.0

1.8

4.8%

0.0

FY2023(Unit: ¥bil)

2.2

8.0%

4.5%
4.1%
3.4% 3.7
3.7

3.6%
3.4%
3.5%
3.1%
2.8%
2.5
2.1 1.9
2.2 2.4

Ordinary Income

6.0% of net sales

6.9%

6.0

4.0

Q2

Operating income

8.0

50.0

Q1

Appendix

Q3

FY2021

Q4

Q1

Q2

Q3

FY2022Q4Q1Q2FY2023

1.0

Profit% of net sales

5.0%

4.0%

4.0%

3.0%
2.8%
3.7
2.7% 3.0%
2.6%
2.5%
2.3 2.3
2.1%
1.8%2.1 2.0%
1.7
1.6
1.3
1.3
0.9%0.9%
0.6

0.6

Q4

Q1

1.0%

0.0

0.0%
Q1

Q2

Q3

FY2021Q2

Q3

FY2022Q4Q1Q2FY202327

Segment Information by Quarter
Net Sales in the Device Business
100.0

Appendix

Net Sales in the Solution Business(Unit: ¥bil)

15.0(Unit: ¥bil)

83.2
80.0

60.0

69.8

54.6 54.9

61.3

68.3 70.9

63.0

62.7

68.3

11.8

12.0

9.2
9.0

7.9

7.9

Q2

Q3

10.7

9.5
7.8

8.1

8.2

Q1

Q2

6.6
40.0

6.0

20.0

3.0

0.0

0.0
Q1

Q2

Q3

Q4

Q1

Q2

FY2021Q3Q4Q1FY2022Q2Q1

FY2023

7.50(Unit: ¥bil)% of net sales
8.0%

6.05

6.0%

3.5%
3.4%
2.9%
2.9%
1.87 1.58 2.10 2.01 2.22
3.4%

3.00
1.50

4.8%
4.4%
3.6%
3.9%3.29
4.0%
3.11
2.46
2.49

0.00
Q1

Q2

Q3

FY2021

Q4

Q1

Q2

Q3

FY2022

Q4

Q3

Q1

Q2

FY2023Q4

FY2022

Operating income

7.3%

4.50

Q2

FY2023Operating Income in the Solution Business

0.80(Unit: ¥bil)

5.6%

4.7%

6.00

Q1

FY2021

Operating Income in the Device Business
Operating income

Q4

0.60

4.4%
0.44
0.40

0.31

0.35

5.2%

% of net sales

5.6%

5.5% 6.0%
5.0% 5.3%
0.67
0.57 4.6%

3.4%0.49

0.45 4.0%

0.39

0.37

0.31
2.0%

2.0%

0.20

0.0%

0.00

0.0%
Q1

Q2

Q3

FY2021

Q4

Q1

Q2

Q3

FY2022Q4Q1Q2FY202328

Consolidated Balance Sheet by Quarter

AssetsLiabilities and Net Assets(Unit: ¥bil)(Unit: ¥bil)
Accounts receivable–trade

Inventories

Other liabilities

Accounts receivable–other

Other current assets

Short-term loans payable, lease obligations and commercial papers

Accounts payable–tradeNon-current assets

Net assets

250.0
200.0
150.0

100.0
50.0

Appendix

190.5
172.8 13.7
155.5 14.7 13.0
149.1 15.3 13.0 18.7
15.2 17.2 10.0
16.4
4.6
52.6
5.3
53.9
40.2 47.0

209.5
13.8
15.8
22.6
62.9

205.3
195.8
192.2
13.8 185.3 188.1 14.8
14.4 14.0 14.2 18.4 15.4
16.9 18.5
17.1
16.9
13.1 14.3 14.1 17.3
51.1
53.3 47.6 55.2 51.6

71.9

71.3

81.1

92.5

94.4 109.0

Jun.

Sep.

Dec.

Mar.

Jun.

Sep.

Dec.

Mar.

Jun.

Sep.

30

30

31

31

30

30

31

31

30

30

86.4

95.1

93.3

90.8

0.0

FY2021

FY2022

FY2023

250.0
200.0

190.5
9.6
43.3

209.5 205.3
8.3
9.6
57.3 50.1

42.9

47.3

44.3

96.6

101.2

100.0

172.8
149.1 155.5 6.9
6.9
34.1
6.6
19.5 21.8
33.6 36.0 39.7

50.0

89.4

90.7

92.0

94.7

Jun.

Sep.

Dec.

Mar.

Jun.

30

30

31

31

30

150.0

192.2
185.3 188.1 195.8
8.6
8.2
11.7
9.5
35.4 33.8 38.0 33.8
40.5 39.9 44.4 42.2
99.8

102.7 104.7 107.9

Sep.

Dec.

Mar.

Jun.

Sep.

30

31

31

30

30

0.0

FY2021

FY2022

FY202329