ANNUAL
REVIEW
2014
Fiscal year ended
January 31, 2014

Change, Challenge, Speed

ABOUT

the Ryoyo Group
Ryoyo Electro Corporation was founded in 1961 as a semiconductor trading company.
Since its founding, the Company has continued to expand the range of its operations in stepwith the electronics industry while maintaining close and functional business relationships
with suppliers. In our core semiconductor and device business, we have established a robust
product lineup featuring a wide range of promising products from both Japan and overseas,
and we take great pride in our skillful support services, which are backed by our years ofexperience. Another core business is our information and communication technology (ICT)and solutions business. The diverse range of solutions we provide in this business begins
with kitting services in which we select hardware, operating systems, applications, and otheritems after providing consultation to determine customer needs. Our solutions do not end
with sales, however, as we also provide follow-up support after systems are introduced.
We are uniting the Ryoyo Group’s various strengths to maximize their potential withthe aim of raising corporate value by creating new business opportunities in relation
to the intrinsically interconnected “smart society.”

CONTENTS

01

About the Ryoyo Group03

To Our Shareholders

04

Medium-Term Management Plan

05

President’s Message

09

Corporate Governance11

Corporate Social Responsibility

12

Board of Directors andCorporate Auditors

13

Financial Section

22

Corporate Data /Investor Information

01

Caution on Forward-Looking Statements
The contents of this annual review that are not historical facts represent projections based on expectations andplans for the future. These projections contain elements of risk and uncertainty. 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.
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., and Ryoyo Electro Singapore Pte., Ltd.

CORPORATE PHILOSOPHY“Creating value in tune with the times”
MISSION

We shall strive to always be a corporate groupthat grows together with stakeholders.
VISION

Ryoyo Group will act as a solutions-providing partner thatleaves an impression on the intrinsically interconnected “smart society.”

Medical careand healthcare

M2M

Energy saving

Smartphone

Semiconductors&
DevicesIndustry andfactory automation

New generationof vehicles

Tablet PC

OA
equipment

Information andCommunication
Technology

INTEGRATE

02

To Our Shareholders

Kenhachiro Ogawa
Chairman andChief Executive Ofﬁcer

Takayoshi Oouchi
President andChief Operating Ofﬁcer

Charting a Course Toward Ongoing Growth
Since its founding, the Ryoyo Group has continued
to operate in accordance with its corporate philosophyof “creating value in tune with the times.” Moreover,
we strive to always be a corporate group that grows
together with stakeholders, and we recently deﬁned
a new corporate mission—Ryoyo Electro will act as asolutions-providing partner that leaves an impression on
the intrinsically interconnected “smart society”—to guide
us in this pursuit. In addition, we have launched a new
medium-term management plan slated to end in theﬁscal year ending January 31, 2016.
Since the Company’s founding, we have continued
to accumulate expertise with regard to our two corebusinesses: the semiconductor and device businessand the ICT and solutions business. Focused on thesebusinesses, we will differentiate our operations by
developing new products and services that are derivativeof these two businesses to create high-value-added
businesses as we improve customer satisfaction andincrease corporate value.
03

We also recognize that enhancing corporate governanceis a crucial task for management if we are to ensure thesoundness, transparency, and efﬁciency of management,
while fulﬁlling our responsibility to society. For this reason,
we are constantly reﬁning governance systems to keepthem functioning properly. Other initiatives geared towardpracticing good corporate social responsibility include
improving internal control systems, ensuring strict legal
compliance, strengthening risk management, enhancing
quality control functions, and contributing to society.
Through these efforts, we hope to continue living up to
the expectations of our stakeholders.
April 2014

Kenhachiro Ogawa

Medium-Term Management Plan

Ryoyo Electro has formulated a new medium-term manage-

meet these numeric goals: (1) reinforce and expand the base ofment plan scheduled to end in the ﬁscal year ending January

core businesses, (2) develop high-value-added businesses, and31, 2016. For its ﬁnal year, the plan deﬁnes the targets of(3) accelerate global strategies. In addition, the new medium-term

achieving net sales of ¥120.0 billion and operating income ofmanagement plan explains our intent to utilize strategic alliances¥4.0 billion together with a higher return on equity (ROE),

with non-group companies and create a reinforced management

which is to be realized by making the best use of funds. Thebase to support the advancement of the basic strategies.

plan also outlines three basic strategies designed to help us

Medium-Term Management Plan Targets
2014.1 (Actual)

2015.1 (Forecast)2016.1 (Target)

Net sales¥97,887 million¥105,000 million¥120,000 million

Operating income¥1,651 million¥2,200 million¥4,000 million

Net income¥1,342 million¥1,500 million¥2,600 million

2.2%

2.4%

4.1%

ROE

Strategies for Achieving Medium-Term Management Plan Targets

Medium-term management plan
BASIC STRATEGY I

BASIC STRATEGY IIBASIC STRATEGY III

Reinforce and expand
the base of core businesses

Develop high-value-added
businesses

Accelerate
global strategies

Strategic allianceswith non-group companies

Reinforced management base04

President’s Message

Developing
High-Value-Added
Businesses and Pursuing
Medium-Term Management
Plan Targets
Performance in the Year Under Review
During the year under review, the ﬁscal year ended January
31, 2014, we worked to boost sales of our mainstay semiconductors, computer systems and peripherals, networkrelated products, and other items. We also endeavored todevelop new high-value-added services and solutions targeting
increased revenue in the medium to long term. As a result of
these efforts, net sales increased 12.3% year on year, to¥97,887 million; operating income rose 128.7%, to ¥1,651
million; and net income was up 216.8%, to ¥1,342 million.
With this impressive performance, I feel that we madestrong progress on the path toward future growth.
Three Basic Strategies ofthe Medium-Term Management Plan
Basic strategy I: Reinforce and expand the base of corebusinesses (semiconductors and devices / ICT and solutions)
The Ryoyo Group aims to be a trader that maximizes value
for its customers. For this reason, we are avidly expanding
the scale of our business while differentiating operations
through demand creation and the strengthening of solutions
businesses. In our core semiconductor and device business,
we will step up efforts in target markets, primarily those for
automobile-mounted products, smartphones and tablet PCs,
and industrial applications. At the same time, we will optimize
product portfolios, promote cross-marketing between semiconductors and devices, and reinforce support for overseas
businesses. Meanwhile, in the ICT and solutions business,
our other core business, we will further expand business forenterprises and improve proﬁtability while also developing
security solutions, promoting overseas ICT businesses, andreinforcing collaboration with alliance partners.

05

Semiconductors & Devices¥59.0 billion (2014.1)

ICT & Solutions¥73.0 billion (2016.1)¥38.9 billion (2014.1)• Step up efforts in target markets—automobile-mounted
products, smartphones / tablet PCs, industrial applications¥47.0 billion (2016.1)• Further expand business for enterprises andimprove proﬁtability• Develop security solutions• Promote overseas ICT businesses• Reinforce collaboration with alliance partners• Optimize product portfolios• Promote cross-marketing between
semiconductors and devices• Reinforce support for overseas businesses

EXPANDING IN-HOUSE SHARE (INCREASING SALES)

Basic strategy II: Develop high-value-added businesses
In order to help develop a “smart society” capable of realizing

energy saving and eco ﬁelds. Going forward, we will adopt aliving spaces that provide peace of mind and freedom fromnew approach that organically links people, objects, information,

want, it will be necessary to create new businesses focusedand companies in ﬁelds that create interconnectivity in society

on data collection, accumulation, analysis, and utilization. In

and markets, beginning with the Internet of things (IoT), machinerecognition of this fact, the Ryoyo Group is branching out fromto machine (M2M), and online to ofﬂine (O2O) ﬁelds. In thisits traditional business of providing solutions to leveraging

manner, we will work to create high-value-added businesses.

growth ﬁelds, such as the medical, retail distribution, and

RYOYO GROUP
Cover as a core business area

IoT

M2M

O2O

Uncover customer needs from perspectives of semiconductors and ICT

Reinforce relationships with customers

Create new businesses
Interconnectivity

Enhance our value

Improve proﬁtability

06

President’s Message

Basic strategy III: Accelerate global strategies
Japanese manufacturers are increasingly shifting their

the Great China region, ASEAN countries, and other areas while

operations overseas. Amidst this trend, we will enhancealso exploring local products and promoting ICT businesses insupport services for Japanese electronics manufacturers.

these areas. In addition, we will work out of our bases in the

At the same time, we will strive to incorporate the growth

United States to research state-of-the-art technologies andpotential of overseas markets into our operations. Speciﬁcally,gather information regarding industry trends as we progressively

the Company will step up efforts to develop local customers in

improve our services on a global basis.

JAPAN

Collaboration
Incorporate growth potentialof overseas markets

ASIA

Reinforce in-house businesses• Develop local customers• Explore local products• Promote ICT businesses• Expand commissioned businesses

U.S.

• Research state-of-the-art technologies• Gather information on industry trends• Explore new products(Resumed operation in November 2013)

Two Measures Supporting Basic Strategies
Strategic alliances with non-group companies
The Ryoyo Group is reinforcing alliances with non-groupspecialized expertise, we can combine this expertise withpartner companies in order to facilitate the development of

Ryoyo’s own resources to provide customers with higher

new businesses and provide a more complete range of func-

quality services, thereby boosting the Company’s overall value.

tions. Through greater collaboration with partners possessing

07

Reinforced management base
We hope to continue living up to the expectations of our
stakeholders by practicing good corporate social responsibility.
As part of this undertaking, we will improve internal control
systems, ensure strict legal compliance, strengthen risk
management, enhance quality control functions, and contributeto society.
By advancing the three basic strategies and enacting the two
measures I have discussed, we will boldly progress
forward, tackling all challenges necessary to realize our visionof being a solutions-providing partner that leaves an impression
on the intrinsically interconnected “smart society.” In closing,
I would like to thank our shareholders for their ongoing support
and ask for their continued support and understanding.
April 2014

Takayoshi Oouchi

Creating Value Through Strategic Alliances
In December 2013, the Company commenced capital participation in Tactus
Technology, Inc., of the United States, acquiring sales rights as an overseas
agent and as Tactus’ exclusive sales partner and distributor in Japan.
A venture company, Tactus is developing a revolutionary new interface thatutilizes a technology known as microﬂuidics to create physical buttons that riseup from a ﬂat touch screen surface on demand. This new interface is expected
to help users improve their speed and accuracy when typing on touch screens,thus raising user satisfaction. Accordingly, Tactus’ technology is projected to be
employed in a wide range of interfaces, not only those of smartphones, tablet
PCs, and other mobile terminals, and there is a growing sense of anticipation
with regard to the future expansion of the market for this technology.
Looking forward, the Ryoyo Group will continue to consider strategic allianceswith non-group companies as well as mergers and acquisitions as possible
options in its ongoing pursuit of higher quality services, a more robust range offunctions, and improved performance.

08

Corporate Governance

Basic Corporate Governance Philosophy

Corporate Auditors and Board of Auditors

At Ryoyo Electro, we recognize enhancing corporate

Ryoyo Electro employs a corporate auditor governance model,

governance as an important task of management. Therefore,

whereby corporate auditors act independently of directors andin order to continue to guarantee the soundness, transparency,

oversee directors’ execution of operations. The Board ofand effectiveness of management, as well as increase corpo-

Auditors consists of four corporate auditors (as of April 24, 2014),

rate value and fulﬁll our responsibilities to society, we areof which three are external corporate auditors. In principle,

striving to develop internal systems that ensure the functionality

the Board of Auditors meets once a month, and met a total ofof corporate governance.

15 times during the year under review.

Company Organizations

The Criteria for the Selection of Outside Ofﬁcers

Outline of the corporate governance framework

In order to ensure the independence of the candidates it

Organizational format

Company witha corporate auditor system

Chairman of the Board of Directors

Chairman and CEO

Number of directors

Six (including one outside director)

Number of auditors

Four (including three outside auditors)

Independent ofﬁcers

One outside director andtwo outside auditors

recommends for outside ofﬁcer (outside Director and outside
Auditor), we have formulated criteria for the selection ofoutside ofﬁcers.
The criteria for the selection of outside ofﬁcers is as follows.
Candidates shall not fall under any of the following categories.
1. A party who is or has been a Director, an Auditor, or an
employee at the Ryoyo Group in the past ten years or a

Number of Board of Directors’
meetings held during the ﬁscal year
ended January 31, 2014

12

Number of Board of Auditors’
meetings held during the ﬁscal year
ended January 31, 201415

relative within the second degree of kinship of such a party
2. A party that is or has been a Director, an Auditor, oran employee of a major business partner* of the Ryoyo
Group in the past ﬁve years
3. A shareholder that holds 10% or more of the voting rights

Attendance rateof the Company’ shares (in the case of an institutional
Board of Directors’
meetings

Board of Auditors’
meetings

Outside director*

100%

—

Outside auditors

100%

100%

shareholder, this shall apply to business executives atsuch an institutional shareholder)
4. A provider of specialist services** that has received ¥10
million or more of remuneration on an annual basis fromthe Ryoyo Group in the past ﬁve years* Participation in meetings of the Board of Directors by Outside Director Yoshiharu
Hayakawa after his appointment is described below.

5. A party that has received a donation of ¥10 million or more

Directors and Board of Directors

6. A party that has a relationship with the Ryoyo Group in whichon an annual basis from the Ryoyo Group in the past ﬁve years
The Board of Directors, which consists of six directors (as of

exchange of Directors is carried out by mutual dispatch

April 24, 2014), is responsible for making decisions as stipulated

7. Any other party with a signiﬁcant interest in the Ryoyo Groupin laws, regulations, and the articles of incorporation; making
important management decisions; and overseeing the execution of operations. In principle, the Board of Directors meetsonce a month, and met a total of 12 times during the year
under review.

09* This signiﬁes a business partner that has a relationship with the Ryoyo Group that
constitutes 2% or more of the consolidated net sales of the Ryoyo Group in the mostrecent ﬁscal year.
** This signiﬁes an attorney, a certiﬁed public accountant, a certiﬁed public tax accountant,a judicial scrivener, a consultant, or an advisor.

Internal Control and Risk Management Systems

Risk Management Systems

The following are our basic principles for establishing internal

Risks that may affect our operations include those related tocontrol systems. These principles help us maintain systems

compliance, the environment, disasters, information security,

for sound internal control.

product quality, foreign exchange rates, and ﬁnancial reporting. Each department maintains effective risk management

Basic Principles

systems managed by employees who are responsible for risk

1. System for ensuring that the execution of duties by directors

management. In the event that any disruption occurs, theseand employees is in compliance with all laws, regulations,employees will guide their department in responding quickly

and the articles of incorporationand effectively to those disruptions in order to reduce the2. Items concerning the storage and management of information

impact on operations.

related to the execution of duties by directors
3. Rules and other systems for containing the risk of damages

Investor Relations Activities

4. System for ensuring the efﬁcient execution of duties by directors

Ryoyo Electro recognizes that disclosing accurate, unbiased,

5. System for ensuring the appropriateness of operations

and timely information about the management of the Com-

undertaken by the corporate group consisting of Ryoyopany to our shareholders and other investors is an important

Electro Corporation and its subsidiaries

function of management. In correspondence with the release

6. System concerning employees requested by the Boardof second quarter and annual ﬁnancial reviews, we also offer

of Auditors to serve as assistants and items concerning

information about the current business situation and future

the independence of these employees from directors

direction of the Company through our website* as well as at

7. System concerning reports submitted by directors andinformation sessions held for analysts and investors. Throughemployees to the Board of Auditors and other systems

these efforts, we will continue to disclose unbiased informa-concerning reports to the Board of Auditors

tion in a timely manner.

8. Other systems for ensuring effective auditing by the* http://www.ryoyo.co.jp/english

Board of Auditors

General Shareholders’ Meeting
Appointment /Dismissal

Appointment /Dismissal

Appointment /Dismissal

Board of Directors
AuditsAppointment / Dismissal

Board of Auditors
Internal Auditing
Department

Instructions

CEO / COO

Management Committee

Reports

Auditing Firm
FinancialauditsDirectors in Charge of Operations,Executive General Managers

Cooperation

External Legal Advisor
Advice /Instruction

Internal audits

Operational Execution Organization

10

Corporate Social Responsibility

Basic CSR Philosophy

efforts to improve the quality of our products, and raise

In accordance with our corporate philosophy of “creatingawareness regarding information security within the Company.

value in tune with the times,” the Ryoyo Group conducts its

This will help to further enhance the trust placed in us by ourbusiness with high ethical standards for the greater good ofcustomers, our business partners, and society as a whole.

society. In order to fulﬁll our responsibilities toward society inevery aspect of our business, we will continue to act in com-

Implementing Green Procurement Initiatives

pliance with this philosophy, as well as with all laws andIn selecting business partners, we assess them on the basis

regulations, throughout our domestic and overseas operations.

of their compatibility with Ryoyo’s Green Procurement Guidelines. In this way, we are actively promoting green procurement

Promoting Compliancethroughout the supply chain. Additionally, we are working to

In 2007, we established the Ryoyo Group Codes of Conduct,

reduce the environmental impact of the products and secondary

which serves as a foundation for our operations moving forward.

supplies that we use by examining their compatibility with our

We have also set up the “Ryoyo Group Compliance Hotline”

Management Standards on Chemical Substances from theso that we can quickly identify violations of the Ryoyo Groupprocurement stage. We will continue to promote environmental

Codes of Conduct and carry out the necessary steps to rectify

consideration in our operations and strive to be an increasingly

such issues. This hotline serves as a communication channel forenvironment-friendly corporation.

employees to discuss and report compliance-related concerns.
Addressing Conﬂict Mineral Issues
Implementing Environmental Protection,

While the Dodd–Frank Act enacted by the United States does

Quality Control, and Information Security Initiatives

not apply to the Company, Ryoyo Electro is supportive of the

All domestic Ryoyo Group companies (excluding the satellite

Act’s goal of protecting human rights. Accordingly, the Company

ofﬁce) have acquired ISO 14001 certiﬁcation, ISO 9001

is supporting this Act through activities in two different areas.

certiﬁcation, and ISO 27001 certiﬁcation, and the GroupFirst of all, we are addressing this issue throughout the supply

effectively employs an integrated management system thatchain by encouraging suppliers to refrain from using conﬂict

collectively functions as an environmental management

minerals. Secondly, we are responding to conﬂict mineralsystem, a quality management system, and an information

inspections of products delivered to companies to which thesecurity management system. This system allows us to

Dodd–Frank Act applies.

contribute to the preservation of the environment by reducing
the environmental impact and the environmental risks of our

Ryoyo’s CSR Website

operations, respond to customer needs through ongoing

http://www.ryoyo.co.jp/english/csr.html

Supporting Future Leaders—Visit by Executive MBA Students
On July 26, 2013, the Company was visited by a group of 19 students
from the Executive MBA program at George Mason University of theUnited States. In addition to explaining the Company and its businessin lecture format, students were given a tour of the head ofﬁce, seeing
actual sites where operations take place. Of particular interest was thein-house showroom, where students got the opportunity to experience
Ryoyo’s solutions ﬁrst hand. After the tour, participants expressed
their fascination in our business and their newfound understanding,
and we therefore feel that this event served as a good opportunity toteach students about Japanese culture and companies.

11

Board of Directors and Corporate Auditors

Board of Directors and Corporate Auditors
As of April 24, 2014
Standing Statutory Auditor

Senior Executive

Akio Tanaka

General Managers

Katsumasa Yasui
Ryoji Kimura
Tsutomu Nobechi

Kenjiro Kobayashi
Masaaki Tanabe
Kiyoshi Waki
Haruo Nakayama
Kazuhiko Yokoyama

Outside Auditors

Senior Managing

Executive General Managers

Kenhachiro Ogawa

Takayoshi Oouchi

Yutaka Horikiri

Executive Ofﬁcer

Chairman and CEO

President and COO

Director

Yutaka Horikiri

Tadao Koizumi
Satoru Fukumoto
Fumiaki Takeno

Managing Executive Ofﬁcers

Nobuo Kikutsugi
Masakazu Shinohara

Nobuo Kikutsugi

Masakazu Shinohara

Yoshiharu Hayakawa

Director

Director

Outside Director(Independent Director)

Interview with the Outside Director, Yoshiharu Hayakawa
Q. Please explain the steps that led to your decision to become an outside director for Ryoyo Electro,
and why you chose to take this position.
In the early 1980s, Ryoyo Electro was preparing for listing on the Tokyo Stock Exchange. At the time, I was working as a management
consultant. The Company requested my help in revising its organizational management systems so that it could break away from its priormanagerial practices, which viewed the owners of the Company as its managers, to conduct management in a way that would treat
shareholders as owners. Through this experience I was able to develop an understanding of Ryoyo Electro’s historical background as wellas the nature of the Company. I believe that Ryoyo Electro’s current management team has successfully inherited the DNA that has
driven the Company until today. Together with this team, I felt that I would be able to provide appropriate advice as an outside director,
and it was for this reason that I accepted when the position was offered.

Q. I understand that you were Ryoyo Electro’s ﬁrst outside director.
What was your impression of the Company’s corporate governance systems when you assumed this position?
I believe that the level of corporate governance a company needs varies based on its growth stage. The most fundamental role of corporate
governance is to enable directors to stimulate the growth of their company, and the functions that enable this are making management
decisions and overseeing the execution of operations. In actuality, the discussions held at meetings of the Board of Directors were quite
lively, and I therefore felt that the Company’s governance systems provided the necessary functionality for its growth stage at that time,
which was characterized by a rise in overseas shareholders.

Q. Working in your capacity as an outside director, how do you plan to contribute to increased corporate value?
In 2013, Ryoyo Electro shifted to a new management system, marking the start of a transition to the next growth stage. If growth is tocontinue into the future, it will be crucial for the Company to become more global while forming alliances with strategic partners. However,when taking on new challenges, management must effectively intuit the beneﬁts and risks of the Company’s actions to maintain an appropriatebalance between aggressive expansion and conservative preparation. In my capacity as an outside director I plan to offer managementa wide range of advice rooted in my experience to date to help the Company maintain such a balance while improving corporate value.

12

FINANCIAL SECTION

Consolidated Financial Highlights
Ryoyo Electro Corporation
For the years ended January 31, 2014, 2013, 2012, 2011, and 2010

Thousands of
U.S. dollars*Millions of yen

2014.1

2013.12012.1

2011.1

2010.1

2014.1¥ 97,887¥ 87,183¥ 85,108¥ 94,353¥ 81,381$951,655

For the YearNet sales
Gross proﬁt

8,279

7,373

7,932

8,158

6,936

80,491

Selling, general and administrative expenses

6,627

6,651

6,559

6,790

6,918

64,434

Operating income

1,651

722

1,372

1,368

18

16,056

Net income

1,342

423

879

1,112

328

13,053

Free cash ﬂows

(1,369)

328

3,359

(8,145)

3,714(13,310)¥ 79,893¥ 72,490¥ 70,602¥ 72,857¥ 76,749$776,722

63,112

61,30361,15562,22762,922

613,572

11.86$

At Year-End
Total assets
Total net assets
Per Share of Common Stock (Yen / U.S. dollars)
Net income

¥

52.17

¥

16.41

¥

33.00

¥

40.48

¥

0.51

Total net assets

2,498.70

2,371.67

2,367.83

2,329.00

2,273.74

24.29

Cash dividends

30.00

30.00

30.00

30.00

30.00

0.29

Ratios (%)
Gross proﬁt margin

8.5

8.5

9.3

8.6

8.5

Operating margin

1.7

0.8

1.6

1.5

0.0

Net income margin

1.4

0.5

1.0

1.2

0.4

Equity ratio

78.9

84.5

86.6

85.4

82.0

Return on equity

2.2

0.7

1.4

1.8

0.5

Other Information
Number of shares issued **25,226,060 25,826,926 25,827,768 26,718,436 27,673,480

Number of employees

513

517

504

528

554

* U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥102.86=U.S.$1.00, the exchange rate prevailing on January 31, 2014.
** Number of shares issued does not include treasury stock.
Notes: 1. The ﬁnancial section is 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

Sales by Product (2014.1)

Millions of yen

Electronic Devices
10.8%

Millions of yen / %8,158

97,887

94,353
85,10881,381Gross Proﬁt /Gross Proﬁt Margin

87,183

8,279

7,932
7,373

6,936

9.3

10.1

11.1

12.1

13.1

Computer Systems
and Peripherals
39.5%

14.1

8.5

Semiconductors
49.7%
Produced in Japan: 10.8%
Produced overseas: 38.9%

10.1

11.1

Gross Proﬁt

13

8.5

8.6

8.5

12.1

13.1

Gross Proﬁt Margin

14.1

Consolidated Financial Review
Effective February 1, 2014, the Company changed its product categories. As this report is for the ﬁscal year ended January 31, 2014,
the former product categories are used.

Sales of products for communications systems decreased 7.8%

MANAGEMENT ENVIRONMENT
During the year under review, the ﬁscal year ended January 31, 2014,

year on year, to ¥4.9 billion, due to lower sales of high-frequency

the Japanese economy saw improvements in export and production

products for use in mobile phones.
Sales of products for digital consumer electronics and other hometrends supported by recovery in the U.S. economy, the end ofdeteriorating conditions in the European economy, and the beneﬁts

electronics were up 4.9%, to ¥6.7 billion, as higher sales of semicon-of economic stimulus measures instituted by the Japanese govern-

ductors for use in gaming devices offset continually struggling sales

ment. Accordingly, there is a rising sense of anticipation for futureof products for use in TVs and Blu-ray disk players.
Sales of automobile-mounted products increased 21.1%, to ¥6.4

recovery in economic conditions.

billion, due to higher sales of products for use in electrical components

In the electronics industry, which the Ryoyo Group operates in,and automobile-mounted items.

demand for industrial and other semiconductors recovered. Com-

Sales of products for PCs and peripherals grew 1.6%, to ¥15.0

puter systems and peripherals, meanwhile, beneﬁted from relatively

billion, as the persistently sluggish sales of PCs for private use were

solid IT-related investment focused on infrastructure.

counteracted by a demand rush in light of the upcoming end of

RESULTS FOR THE FISCAL YEAR ENDED JANUARY 31, 2014

support for Windows XP.

In this environment, the Ryoyo Group worked to ensure that a stable

Net sales of industrial and other applications were up 23.5%, to ¥15.7

supply of its products was available while also striving to boost sales

billion, because sales began recovering in the second quarter of theof its products—including its mainstay semiconductors, computerﬁscal year and remained strong throughout the remainder of the year.

systems and peripherals, and network-related products. We alsoendeavored to develop new high-value-added services and solutions

Sales by Applications

targeting increased revenue in the medium to long term.

Billions of yen

As a result of these efforts, net sales increased 12.3% year on

48.7

year, to ¥97.9 billion; operating income rose 128.7%, to ¥1.7 billion;

44.9

and net income was up 216.8%, to ¥1.3 billion.
Semiconductors
In the year under review, net sales of semiconductors increased ¥4.2
billion year on year, or 9.6%, to ¥48.7 billion.

44.4

7.6

‒30.9%

5.3

6.9

‒7.6%

6.4

3.7

+43.1%

5.3

11.5+28.5%

14.7‒16.0%

12.7

4.9

‒7.8%

6.7

+4.9%

6.4

+21.1%+1.6%

15.0+23.5%

15.7

Sales of integrated circuits (ICs) amounted to ¥32.0 billion, up ¥1.6
15.2

billion, or 5.4%, year on year. This increase was due to a rise in salesof control ICs for computer peripherals and memory for gaming

12.1

devices. Sales of discrete electronic components rose ¥2.6 billion, or

13.1

Communications
Digital consumer electronics andother home electronics

18.5%, to ¥16.7 billion, following an increase in sales of industrial-use
power semiconductors and opto semiconductors.

14.1

Vehicle installations
PCs and peripherals
Industrial and others

Selling, General and Administrative
Expenses / Number of Employees

Operating Income /Operating Margin

Net Income /Return on Equity

Millions of yen / People

Millions of yen / %Millions of yen / %

6,918

6,790

1,342
6,559

6,651

6,627

1,651
1,368

1.8
554
528

1.6

1.4

722

504

18

11.1

12.1

423

328
0.8

10.1

879

1.7

1.5

517 513

2.2

1,112

1,372

13.1

14.1

Selling, General and Administrative Expenses
Number of Employees

0.7

0.5

0.0

10.1

11.1

Operating Income

12.1

13.1

14.1

Operating Margin

10.1

11.1

Net Income

12.1

13.1

14.1

Return on Equity

14

FINANCIAL SECTION

Computer Systems and Peripherals

be attributed to higher sales of LCDs for use in telecommunications

In the year under review, net sales of computer systems and peripherals

and industrial applications.

increased ¥4.6 billion year on year, or 13.5%, to ¥38.6 billion. This
Sales of Electronic Devices

increase can be attributed to a rise in large-scale system orders,Billions of yen

particularly those for servers, and higher sales of business-use printers.
Net sales of PC, server, and LAN products grew 19.1% year on
year, to ¥15.5 billion. This increase was due to the success of focus
initiatives regarding large-scale orders, which resulted in sales
exceeding both last year’s performance and our targets.
Net sales of I/O equipment were relatively unchanged from

8.1

the previous ﬁscal year, declining 0.5%, to ¥6.7 billion.

8.7

+8.3%

+21.4%

10.6

Net sales of software and embedded products were up 14.9%, to¥16.4 billion, as a result of higher sales of software for PCs andembedded products.

12.1

13.1

14.1

Sales by Products
Sales by Region

Billions of yen

Japan

38.6

In the year under review, sales to external customers in Japan

34.0

32.2

13.0

+5.1%

12.4

+19.1%

higher sales for industrial-use power semiconductors as well asservers and other IT products. Operating income was up ¥0.6 billion,

7.2

‒6.3%

6.7

12.6

+13.4%

14.3

12.1

‒0.5%

+14.9%

13.1

PCs / Servers / LANs

increased ¥8.2 billion year on year, or 11.2%, to ¥81.0 billion, due to

15.5

I/O equipment

6.7

or 80.0%, to ¥1.4 billion.

16.4

Asia
Sales of LCDs for telecommunications applications grew, and sales
to external customers in Asia increased ¥2.5 billion year on year, or

14.1

17.5%, to ¥16.9 billion, accordingly. Operations in Asia recorded

Software / Embedded

operating income of ¥0.2 billion, compared with operating loss of¥38.0 million recorded in the previous ﬁscal year.

Electronic Devices

The ﬁgure for operating income recorded on the Consolidated

In the year under review, net sales of electronic devices increased

Statements of Income includes operating income from each seg-

¥1.9 billion year on year, or 21.4%, to ¥10.6 billion. This increase canment as well as from intersegment transactions.

Total Assets /Total Net Assets

Free Cash Flows

Cash Dividends per Share

Millions of yen

Millions of yen

Yen

76,74979,89372,85762,92270,60262,22772,49061,15561,303

63,112

3,714

30.00

30.00

30.00

30.00

30.00

10.1

11.1

12.1

13.1

14.1

3,359
328
(1,369)

10.1

11.1

Total Assets

15

12.1

13.1

Total Net Assets

14.1

10.1

(8,145)

11.1

12.1

13.1

14.1

OUTLOOK FOR THE FISCAL YEAR ENDING JANUARY 31, 2015

RETURNING PROFITS TO SHAREHOLDERS

The electronics industry, which the Ryoyo Group operates in, is

Shareholder Returns Policy

currently subject to the risk of a potential deterioration in domestic

The Company views returning proﬁts to its shareholders as one of its

economic conditions stemming from the impacts of the consumption

most important management tasks. Accordingly, we issue cash

tax hike and economic slowdown in emerging countries. Neverthe-

dividend payments in consideration of the Company’s ﬁnancial

less, the domestic electronics industry is expected to continue

position and the operating environment, while also retaining internal

experiencing a gradual recovery trend driven by the beneﬁts ofrevenues sufﬁcient enough to maintain a stable operating foundation

the government’s economic stimulus measures and the persistingand pursue future business expansion.

depreciated value of the yen.

Our policy at the moment is to maintain the current level of cash

In the ﬁscal year ending January 31, 2015, the Ryoyo Group’s

dividend payments of ¥30 per share for the foreseeable future.

semiconductor operations will suffer the effects of a temporary

However, we will reevaluate this policy based on future medium-

decline in demand for products for consumer electronics and PC

term income levels.

applications as a rebound from the demand rush proceeding the

Further, the Company has deﬁned in its articles of incorporation

consumption tax hike. Nevertheless, semiconductor sales arethat, in accordance with article 454 (5) of the Companies Act offorecast to remain strong throughout the year. As for computer

Japan, interim dividends may be issued each year with a cutoff

systems and peripherals, IT investment by companies is expected todate of July 31 following approval by the Board of Directors. The

remain at a stable level as conditions in the operating environment

Company therefore practices the policy of issuing cash dividend

continue to recover. In addition, we anticipate that strengthening thepayments from returned earnings twice per ﬁscal year, in the form ofCompany’s sales systems will result in additional sales contributions

an interim dividend (issued at the end of the second quarter) and abeing captured by new businesses. Accordingly, computer system

year-end dividend.

and peripheral operations are forecast to see further growth in theﬁscal year ending January 31, 2015.

The year-end dividend is decided at the general shareholders’ meeting,while the interim dividend is decided by the Board of Directors.

In light of this outlook, the Company’s current performance
forecasts for the ﬁscal year ending January 31, 2015, are as follows:

Dividend Payments in the Fiscal Year Ended January 31, 2014,

net sales of ¥105.0 billion, up 7.3% year on year; operating income ofand the Fiscal Year Ending January 31, 2015

¥2.2 billion, up 33.2% year; and net income of ¥1.5 billion, up 11.7%.

In accordance with the policy described above, for the year underreview the Company will pay ¥15 per share of common stock for the

FINANCIAL POSITION
Total assets at the end of the ﬁscal year were ¥79.9 billion, ¥7.4
billion higher than at the previous ﬁscal year-end. This was primarily
due to an increase in notes and accounts receivable–trade.
Total liabilities rose ¥5.6 billion, to ¥16.8 billion, mainly due to anincrease in notes and accounts payable–trade.

year-end cash dividend, making for an annual cash dividend of ¥30 per
share of common stock when combined with the interim dividend.
Likewise, in the ﬁscal year ending January 31, 2015, the Company
intends to pay ¥15 per share of common stock for both the interim
and year-end cash dividends, for an annual cash dividend of ¥30 per
share of common stock.

Total net assets increased ¥1.8 billion, to ¥63.1 billion. This waslargely due to a rise in foreign currency translation adjustment.

RISKS PERTAINING TO THE COMPANY’S BUSINESS
Risks that may affect the business performance, stock price, andCASH FLOWSCash and cash equivalents totaled ¥11.0 billion at the ﬁscal year-end,a ¥2.2 billion year-on-year decrease. Major factors included anincrease in working capital and the purchase of investment securities.
Net cash used in operating activities was ¥3.1 billion, comparedﬁnancial condition of the Company include, however are not limited
to, the following.
More information pertaining to business risks can be found on
the Company’s website.
http://www.ryoyo.co.jp/english/ir-library/business-risk.html

with net cash provided by operating activities of ¥0.8 billion in theprevious ﬁscal year. Income before income taxes of ¥2.1 billion was(1) Abrupt changes in economic conditions

recorded, but this was outweighed by the rise in working capital(2) Fall in the price of products

resulting from recording increase in notes and accounts receivable–(3) Contracts with suppliers

trade of ¥6.0 billion, which was due to higher net sales, and increase(4) Fluctuation in foreign exchange rates

in inventories of ¥1.6 billion.

(5) Customers moving operations overseas

Net cash provided by investing activities was ¥1.7 billion, compared with net cash used in investing activities of ¥0.5 billion in theprevious ﬁscal year. This was because proceeds from redemption of(6) Country-based risks(7) Product defects and delivery issues and problems
related to services

securities of ¥10.5 billion counteracted outﬂows for purchase of(8) Natural disasters and other Acts of God

investment securities of ¥7.2 billion.

(9) Collection of accounts receivable

Net cash used in ﬁnancing activities amounted to ¥1.4 billion, a ¥0.6
billion year-on-year decrease. Major outﬂows included cash dividends(10) Retirement beneﬁt obligations(11) Impairment losses on write-down of investment securities

paid of ¥0.8 billion and purchase of treasury stock of ¥0.6 billion.
16

FINANCIAL SECTION

Consolidated Balance Sheets
Ryoyo Electro Corporation
At January 31, 2014 and 2013

Thousands of
U.S. dollars

Millions of yen

2014.1

2013.1

2014.1

Cash and deposits¥11,215¥13,226$109,040

Notes and accounts receivable–trade30,18523,295

293,457

Short-term investment securities

8,500

10,99982,636Merchandise and ﬁnished goods

13,313

11,348129,434

Deferred tax assets

218

119

2,122

Other

934

583

9,087

Allowance for doubtful accounts

(17)

(20)

(168)

64,35059,551

625,610

Tools, furniture and ﬁxtures, net

95

119

930

Land

5

5

55

AssetsCurrent assets

Total current assets
Noncurrent assets
Property, plant and equipment

Other, net

139

139

1,355

240

265

2,341

536

602

5,214

Investment securities

12,558

10,884122,088

Other

2,209

1,188

21,484

Total property, plant and equipment
Intangible assets
Investments and other assets

Allowance for doubtful accounts

(1)

(2)

(18)

Total investments and other assets

14,766

12,070143,555

Total noncurrent assets

15,543

12,938151,111¥79,893¥72,490$776,722

Total assets17Thousands of
U.S. dollars

Millions of yen

2014.1

2013.1

2014.1¥13,022¥ 8,937$126,600

620

180

6,031

Liabilities
Current liabilities
Notes and accounts payable–trade
Income taxes payable
Accrued consumption taxes

36

21

352

Provision for bonuses

128

110

1,253

Other

727

904

7,068

14,534

10,153

141,306

Provision for retirement beneﬁts

917

889

8,920

Deferred tax liabilities

477

46

4,645

Other

851

95

8,278

Total current liabilities
Noncurrent liabilities

Total noncurrent liabilities

2,246

1,032

21,843

Total liabilities

16,781

11,186

163,150

Capital stock

13,672

13,672

132,918

Capital surplus

13,336

13,336

129,656

Retained earnings

38,55537,987

374,831

Net assets
Shareholders’ equity

Treasury stock
Total shareholders’ equity(3,945)(3,295)(38,353)

61,61861,700599,053

1,248

514

12,134

(0)

0

(5)

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares

166

(962)

1,615

1,413

(447)

13,744

79

50

774

Total net assets

63,112

61,303

613,572

Total liabilities and net assets¥79,893¥72,490$776,722

18

FINANCIAL SECTION

Consolidated Statements of Income andConsolidated Comprehensive Statements of Income
Ryoyo Electro Corporation
For the years ended January 31, 2014 and 2013

Thousands of
U.S. dollars

Millions of yen
Consolidated Statements of Income

2014.1

2013.1

2014.1

Net sales
Cost of sales
Gross proﬁt¥97,887
89,607
8,279¥87,183
79,8107,373$951,655
871,164
80,491

(3)
2,791
128
137
356
180
3,036
6,627
1,651

0
2,745
110
184
409
172
3,028
6,651
722

(35)
27,139
1,253
1,337
3,468
1,755
29,51664,434
16,056

191
59
11
137
32
432

151
77
9
3
31
273

1,864
579
112
1,334
313
4,204

3
–
0
0
1
6

2
72
–
10
1
86

36
–
7
9
12
65

2,077

909

20,195

20
20

–
–

198
198

2,097
830
(75)
755
1,342
¥ 1,342

¥

909
475
10
486
423
423

20,394
8,077
(735)
7,341
13,053$ 13,053¥ 1,342¥423$ 13,053

733
(0)
1,128
1,861
3,204

206
1
240
448
872

7,130
(7)
10,97318,09731,150

3,204
–

872
–

31,150–

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 income
Non-operating income
Interest income
Dividends income
Purchase discounts
Gain on investments in partnership
Other
Total non-operating income
Non-operating expenses
Sales discounts
Foreign exchange losses
Commission fee
Loss on abandonment of noncurrent assets
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Income before income taxes and minority interests
Income taxes–current
Income taxes–deferred
Total income taxes
Income before minority interests
Net income
Consolidated Comprehensive Statements of Income

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income(Details)
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

19Consolidated Statements of Changes in Net Assets
Ryoyo Electro Corporation
For the years ended January 31, 2014 and 2013

Millions of yen
Shareholders’ equity

Accumulated other comprehensive income

From February 1, 2013
to January 31, 2014

Capitalstock

CapitalsurplusRetainedearnings

Treasurystock

Balance at January 31, 2013
Net increase (decrease)during the ﬁscal year

¥13,672¥13,336¥37,987¥(3,295)

Deferred
Valuationdifference on gains or
Total
shareholders’ available-for- losses onsale securities hedges
equity¥61,700¥ 514¥0Foreigncurrencytranslation
adjustment

Subscription
rights tosharesTotal
net assets¥ (962)¥50¥61,303

Cash dividends

(774)

(774)

(774)

Net income for the ﬁscal year

1,342

1,342

1,342

(649)

(649)

(649)

0

0

0

Purchase of treasury stock
Disposal of treasury stock
Net increase (decrease) otherthan shareholders’ equity
Total increase (decrease)during the ﬁscal year
Balance at January 31, 2014

(0)

–

733

(0)

1,128

28

1,890

–

–

567

(649)

(82)

733

(0)

1,128

28

1,808

¥13,672¥13,336¥38,555¥(3,945)¥61,618¥1,248

¥(0)

¥ 166

¥79

¥63,112

Foreigncurrencytranslation
adjustment

Subscription
rights tosharesTotal
net assets¥(1,203)¥ –¥61,155

Millions of yen
Shareholders’ equity

Accumulated other comprehensive income

From February 1, 2012
to January 31, 2013

Capitalstock

CapitalsurplusRetainedearnings

Treasurystock

Balance at January 31, 2012
Net increase (decrease)during the ﬁscal year

¥13,672¥13,336¥39,446¥(4,402)

Deferred
Valuationdifference on gains or
Total
shareholders’ available-for- losses onsale securities hedges
equity¥62,052

¥307

¥(0)

Cash dividends

(774)

(774)

(774)

Net income for the ﬁscal year

423

423

423

(0)

(0)

(0)

1,108

–

—

Purchase of treasury stock
Retirement of treasury stock
Net increase (decrease) otherthan shareholders’ equity
Total increase (decrease)during the ﬁscal year
Balance at January 31, 2013

(1,108)

–

206

1

240

50

499

–

–

(1,459)

1,107

(351)

206

1

240

50

147

¥13,672¥13,336¥37,987¥(3,295)¥61,700¥514¥0¥ (962)¥50¥61,303

Foreigncurrencytranslation
adjustment

Subscription
rights tosharesTotal
net assets$ (9,358)$493$595,991

Thousands of U.S. dollars
Shareholders’ equity

From February 1, 2013
to January 31, 2014

Balance at January 31, 2013
Net increase (decrease)during the ﬁscal year

Capitalstock

Capitalsurplus

Accumulated other comprehensive income

Retainedearnings

Treasurystock$132,918 $129,656 $369,311$(32,035)

Deferred
Valuationdifference on gains or
Total
shareholders’ available-for- losses onsale securities hedges
equity$599,851$5,003$1

Cash dividends(7,532)(7,532)(7,532)

Net income for the ﬁscal year

13,053

13,053

13,053(6,318)(6,318)(6,318)000Purchase of treasury stock
Disposal of treasury stock
Net increase (decrease) otherthan shareholders’ equity
Total increase (decrease)during the ﬁscal year
Balance at January 31, 2014

(0)

–
–

–

7,130

(7)

10,973280

18,3785,520(6,318)

(797)

7,130

(7)

10,973280

17,580$132,918 $129,656 $374,831$(38,353)$599,053$12,134$(5)$ 1,615$774$613,572

20

FINANCIAL SECTION

Consolidated Statements of Cash Flows
Ryoyo Electro Corporation
For the years ended January 31, 2014 and 2013

Thousands of
U.S. dollars

Millions of yen

2014.1

2013.1

2014.1909$ 20,394

I. Cash ﬂows from operating activities
Income before income taxes¥ 2,097

Depreciation and amortization

192

176

1,869

0

7

9

Loss on sales and retirement of noncurrent assets¥

Loss (gain) on investments in partnership

(137)

(3)

(1,334)Foreign exchange losses (gains)

(29)

(44)

(290)

Increase (decrease) in provision

41

20

406

Interest and dividends income

(251)

(229)

(2,444)

Loss (gain) on valuation of investment securities

(20)

–

(198)

Decrease (increase) in notes and accounts receivable–trade(6,013)(1,201)(58,461)

Decrease (increase) in inventories(1,592)

99(15,482)

Increase (decrease) in notes and accounts payable–trade

3,370

1,062

32,770

13

(87)

134

Increase (decrease) in accrued consumption taxes
Other, net

(603)

609

(5,870)Subtotal(2,931)

1,318(28,496)

Interest and dividends income received

243

220

2,368

Income taxes refunded (paid)

(397)

(712)

(3,860)(3,084)826(29,987)

Payments into time deposits(2,692)(7,000)(26,179)

Proceeds from withdrawal of time deposits

4,500

7,000

43,748Purchase of short-term investment securities(3,500)(2,000)(34,026)

Proceeds from redemption of securities

10,5009,000

102,080

(96)

(469)

(938)

0

3

0

(7,189)(7,104)(69,892)

185

–

1,805

Net cash provided by (used in) operating activities
II. Cash ﬂows from investing activities

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
Purchase of stocks of subsidiaries and afﬁliates

(10)

–

(97)

Proceeds from distribution of investment in partnerships

111

60

1,079

Other, net

(92)

12

(902)

1,715

(498)

16,677

Cash dividends paid

(772)

(774)

(7,513)Purchase of treasury stock

(649)

(0)

(6,318)

(2)

(2)

(27)

(1,425)(777)(13,859)

Net cash provided by (used in) investing activities
III. Cash ﬂows from ﬁnancing activities

Other, net
Net cash provided by (used in) ﬁnancing activities
IV. Effect of exchange rate changes on cash and cash equivalents
V. Net increase (decrease) in cash and cash equivalents

21

591

338

5,753

(2,202)(110)(21,417)

VI. Cash and cash equivalents at the beginning of the period

13,226

13,336

128,582

VII. Cash and cash equivalents at the end of the period¥11,023¥13,226$107,165

Corporate Data / Investor Information
As of January 31, 2014

Corporate Name

Composition of Shareholders

Ryoyo Electro Corporation
Individuals and other27.3%

Foreign corporations and other foreign investors

26.7%

Konwa Building, 1-12-22 Tsukiji,

Other corporations

18.4%

Chuo-ku, Tokyo 104-8408, Japan

Financial institutions

14.4%

Treasury stock

12.4%

Securities companies, etc.

0.8%

AddressPhone+81-3-3543-7711
Fax+81-3-3545-3507

Major Shareholders
Thousandsof shares%

WebsiteMitsubishi Electric Corporation

2,246

http://www.ryoyo.co.jp/english

SHC Corporation

2,118

8.40

CGML-IPB CUSTOMER COLLATERAL ACCOUNT

1,853

7.35

Date of Incorporation

Japan Trustee Services Bank, Ltd. (Trust account)

925

3.67

February 27, 1961

CBNY DFA INTL SMALL CAP VALUE PORTFOLIO

778

3.08

The Master Trust Bank of Japan (Retail trust account)

552

2.19

Paid-in Capital

Sheep Shokai Co.

523

2.08

¥13,672 million

DEUTSCHE BANK AG LONDON-PB NON-TREATY CLIENTS 613

497

1.97

Authorized Shares
119,628,800
Shares Issued

8.91

State Street Bank and Trust Company

411

1.63

The Master Trust Bank of Japan (Trust account)

411

1.63

Notes: 1. Ryoyo Electro Corporation possesses 3,573,940 shares of treasury stock, which represents a 12.41% holding in the Company.
2. Calculations for the ownership percentages above did not account for treasury stock.
3. Ryoyo Electro Corporation canceled 600,000 shares of the abovementioned treasury stock on March 5, 2014.

28,800,000
Shareholders
7,465

Stock Price Chart

Stock Trading Unit

Stock PriceYen

100 shares

1,200

18,000900

13,000600

8,000

Stock Listing
Tokyo Stock Exchange,

Nikkei Stock Average
YenFirst Section
Ticker Code8068

Trading Volume
Thousands of shares

4,500

Transfer Agent
Mitsubishi UFJ Trust andBanking Corporation

3,000

1,500

0

2

3

4

5

6

7

8

12.1

9 10 11 12

1

2

3

4

5

6

7

8

13.1

9 10 11 12

1

2

3

4

5

6

7

8

9 10 11 12

1

14.1

22

EMS 576112 / ISO 14001
FS 576113 / ISO 9001
IS 511311 / ISO 27001

Ryoyo Electro has acquired the following certification at all offices in Japan (excluding the satellite office).
• ISO 14001 (Environmental management systems)• ISO 9001 (Quality management systems)• ISO 27001 (Information security management systems)

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