Connect Everything. With Technology. With Ideas.

ANNUAL REVIEW

2021

Fiscal year ended
January 31, 2021

Ryoyo Electro
Annual Review
2021
About the RYOYO Group

About the RYOYO Group

Connect Everything.
With Technology.
With Ideas.
End-to-end business domain covering the entire supply chain, from upstream to downstream

DeviceNetwork

Platform

Semiconductors

5G/LPWA

Cloud

Electronic
Devices

Wi-Fi

On-premises

Sensors

LAN/WAN

Only RYOYO

1-2

Ryoyo Electro Corporation was founded as a semiconductor distributor of Mitsubishi Electric Corporation in 1961,
at the dawn of the semiconductor industry. Since our establishment, we have expanded our business in tandemwith the growth of the electronics industry, guided by a management philosophy of “Creating value in tune withthe times,” coupled with the slogan “Connect everything. With technology. With ideas.” Today, as an electronics
trading company engaged in both the Semiconductors & Devices and ICT & Solutions businesses, the Ryoyo
Group leverages the knowledge we have gained in both fields to propose value-adding solutions that help address
customers’ needs, incorporating products and technologies ranging from edge devices to cloud computing.
Regardless of the times, our Company’s purpose lies in realizing satisfaction that exceeds stakeholders’expectations, and providing “Only RYOYO” unique, added-value solutions that leave a lasting impression.

Solution
IoT

Helping to Solve theSocial Issues Faced
by Customers
As 5G, IoT, AI, cloud services and other cutting-edge
technologies begin to connect a wide range of things in
the world, the processing and use of information areAIdramatically accelerating and becoming more advanced.
Ryoyo Electro, as an electronics trading company
engaged in both the Semiconductors & Devices and ICT& Solutions businesses, boasts technology and ideas thatwill help build this new information-based world. As aBusiness
Management
Tools

solution partner that can incorporate various technologies
ranging from edge devices to cloud computing, we support our customers’ manufacturing and value creation.
We will continue to develop and provide solutions that canidentify and solve the issues and challenges facing both
our customers and their end users.

Ryoyo Electro
Annual Review
2021
About the RYOYO Group

Only RYOYO“Only RYOYO” indicates the unique value that only the Ryoyo Group can provide. We do not
simply procure existing products, but also customize products optimally suited to customer
requirements, as well as offering products and services based on our proprietary technology
to address specific customer needs. We also create new value by clarifying the issues ourcustomers face and supporting them all the way through to a swift solution.

Semiconductors & Devices
In the constantly changing semiconductor market, we have evolved into a trusted business partner with a long track-record of achievements. Drawing on solid relationships with the world’s leading suppliers, we offer optimal proposals to customers.

Strength #1

Strength #2

Strength #3

We propose solutions that leverage the

Beyond just selling individual products, we

We actively seek out and supply

latest information we gain by working closely

propose optimal solutions for customer andcutting-edge, high-added-value productswith the world’s leading vendors.

market needs by combining multiple prod-from in and outside of Japan.

ucts and developing original solutions.

ICT & Solutions
We are drawing on knowledge cultivated in the Semiconductors & Devices and ICT & Solutions businesses not only to bring various ICT
products to market, but also to expand the business by integrating consulting, deployment, maintenance, and operation functions. We
support the creation of business solutions and innovative business models that reflect the needs not only of our customers but also theirend users.

Strength #1

Strength #2

Strength #3

Our sector and domain-specific specialists

We propose optimal solutions by combining

We bring proven experience and expertise to

can provide broad product and technology

the world’s leading products and services tosupport our customers’ IT life cycle

solutions, from edge to cloud.

solve the customer’s issues.

(planning, development, operation).

3-4Consolidated Financial Highlights
Ryoyo Electro Corporation and Consolidated Subsidiaries
For the years ended January 31, 2021, 2020, 2019, 2018, and 2017
Thousands of U.S.
dollars*

Millions of yen
2021.12020.1

2019.1

2018.12017.12021.1For the Year¥Net sales

95,792¥

108,538¥

93,799¥92,234¥$

98,417

916,851

Gross profit

9,194

10,361

8,925

7,591

8,099

88,000

Selling, general and administrative expenses

7,927

8,206

7,667

7,339

6,726

75,874

Operating profit

1,266

2,154

1,257

251

1,373

12,126

806

1,303

1,020

212

822

7,716

13,434697

1,132(4,162)

6,874

128,582

Profit attributable to owners of parent
Free cash flows
At Year-End¥

Total assets

59,336¥

78,11737,992

Total net assets¥

75,53862,135¥62,20878,111¥$

77,97364,404567,923
363,630

64,859Per Share of Common Stock (Yen / U.S. dollars)¥

Net income

35.19

¥

53.06

¥

41.62

¥

8.68

¥

$

33.54

0.337

Total net assets

2,188.90

2,524.47

2,531.90

2,625.66

2,644.10

20.95

Cash dividends

180.00

80.00

60.00

60.00

40.00

1.723

Gross profit margin

9.6

9.5

9.5

8.2

8.2

Operating margin

1.3

2.0

1.3

0.3

1.4

Net income margin

0.8

1.2

1.1

0.2

0.8

Equity ratio

64.0

79.4

82.2

82.4

83.1

Return on equity

1.6

2.1

1.6

0.3

1.3

17,336,633

24,572,801

24,521,409

24,506,240

24,507,328

711

561

526

510

498

Ratios (%)

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 ¥104.48 = U.S.$1.00, the exchange rate prevailing on January 31, 2021.
** 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

Operating profit

Total Assets / Total Net Assets

Millions of yen

Millions of yen

Millions of yen

108,538
98,417
92,234

95,792

93,79977,973

78,111

2,154
64,8591,373

75,53864,404

78,117

62,20862,13559,336

1,266

1,257

37,992

251

17.1

18.1

19.1

20.1

21.1

17.1

18.1

19.1

20.1

21.1

17.1

18.1

19.1

20.1

21.1

Ryoyo Electro
Annual Review
2021
Top Message

To Our Shareholders
Business Performance in the Fiscal Year Ended
January 31, 2021
The Ryoyo Group marked our 60th anniversary in February 2021. We would like tothank our shareholders for your support and encouragement over the years.
The fiscal year ended January 2021 brought new opportunities, such as substantial growth in semiconductor businesses for digital consumer electronics and thecontribution to performance from new commercial rights. In May 2020 we fully consolidated StyleZ Corp., which engages in IT solution service businesses, as part ofour effort to reinforce our framework and functions for developing solution
businesses to address customer and market issues. However, theglobal spread of the COVID-19 pandemic deeply impacted manufacturers’ production activities, personal consumption, and corporate capital investment, and performance in our mainstay
Semiconductors & Devices and ICT & Solutions businesses bothfell below previous-year levels.
As a result, net sales for the consolidated fiscal year underreview were ¥95,792 million (down 11.7% year on year) and operating profit was ¥1,266 million (down 41.2%). Moreover, due to
expenses related to the buyback of treasury stock in line with ourrevised capitalization policy, ordinary profit was ¥905 million (down
58.6%), and profit attributable to owners of parent was ¥806 million(down 38.1%).

Our Response to the COVID-19 Pandemic andChanges to Our Businesses
The COVID-19 pandemic has had a tremendous impact on society, and
our Group is no exception. In terms of business continuity, while working
to gain the understanding of our customers and business partners, we
set up a system for staggered commuting and working from home. We
are also developing products related to the response to COVID-19.
For the electronics industry going forward, although concerns linger
about the resurgence of COVID-19 cases as well as the problem ofsemiconductor supply shortages, against a backdrop of robust stay-at-homedemand and growth in infrastructure investment, as well as the continued
spread of 5G and DX (digital transformation) technologies, demand is
expected to recover and remain firm.

5-6

Outlook for Fiscal Year Ending January 31, 2022 and Moves Toward a New
Trading Company Image
Our top priority for the Group is to reinforce our ability to appeal to customers with our comprehensive solutions, not only
to their needs, but also looking further ahead to the needs of their customers (B2B2C), and to put in place the infrastructure to support this. In this way, we are striving to become the No. 1 trading company providing added value thatdraws on our strengths as a solution provider that supports technologies ranging from edge devices to cloud computing.
In terms of the consolidated earnings forecast for the fiscal year ending January 2022, the final year of our current
business plan, our initial targets were for net sales of ¥110,000 million and operating profit of ¥3,000 million. Given the
prolonged impact of the COVID-19 crisis and other changes in business conditions, however, we opted to move thetargets forward a year to the fiscal year ending January 2023, and redouble our efforts to achieve these targets in theinaugural year of our next business plan.
The COVID-19 crisis has brought to light structural issues in our Group’s businesses and the things we need to do
to deal with them. We see the current fiscal year as a time to revisit the true value of our Group, and to ask what isneeded to realize our goal over the longer term of becoming “a reimagined trading company with unrivaled customer
satisfaction.” To put into action a “further upstream” approach that is sensitive to the various issues customers face andproposes early-stage solutions, we will continue to strengthen points of contact with customers and establish a mechanism for sharing information across the Group. We will deliver solutions from an even more customer-oriented perspective, so that doing business with us will lead to the success of our customers’ businesses.

Shareholder Returns
Under our three-year business plan, which runs through the fiscal year ending January 2022, we are working to increase
shareholder returns. For the fiscal year ended January 2021, under a basic policy targeting a 5% dividend on equity ratio(DOE), we elected to pay a total annual dividend of ¥180, which includes an ordinary dividend of ¥120 and a commemorative dividend of ¥60 to mark our 60th anniversary. In addition, in November 2020, as part of our fundamental revisionof the company’s capitalization policy, we bought back a total of ¥22 billion in treasury stock with the aim of speeding up
the pace of improvement in our ROE and other indicators of capital efficiency. In terms of annual dividends, for the fiscal
year ending January 2022, we will maintain the benchmark of a dividend on net assets ratio of 5.0%, and plan to pay a
dividend of ¥120 per share.
We ask for the support and encouragement of our shareholders over the long term as we continue to strive toincrease the Company’s corporate value.

Representative Director, President & Chief Executive Officer

Ryoyo Electro
Annual Review
2021
Business topics

TopicsThe latest
news about
the Ryoyo Group
President’s
Leadership
WorkshopIn the Ryoyo Group, the President himself serves as the lecturer for the Leadership Workshop,
a training course to pass on leadership knowledge and wisdom to employees at various levels of
responsibility, seeking to raise up the next generation of managers and potential leaders. We havealso put in place an environment to enable employees at business offices throughout Japan andoverseas to participate in classes, such as by means of video conferencing. In the workshops, basedon his experience and insight, the president covers a wide range of topics, including the proper roleof a leader, the methods and mindset needed to carry out that role, and effective goal setting, tosupport the development of human resources needed for each level of management.
1st
Course:Convey whatmakes an ideal leader

TargetFor Director-General Manager rank

2nd Course:
For Assistant General
Manager rank

Aims to develop
next-generation leaders

3rd Course:
Many participants are the youngest generation of managers.
Aims to educate and convey a message to future leaders, and foster a sharedunderstanding of the ideal future for Ryoyo.

Response to
COVID-19 Crisis

For Group Leader rank

The novel coronavirus outbreak caused a massive social disruption. To help meet the needs ofsociety in dealing with this crisis, the Ryoyo Group is handling a range of products related to thepandemic response. In particular, we have leveraged the networks built up in our Semiconductors &Devices business to make available photocatalytic sterilization equipment, hands-free control devices
using voice recognition, and thermal measurement systems, among other solutions. Going forward,
we will continue to provide value in a flexible manner to meet the changing needs of society.
Contactless

h
Switc

the televisio
Switc

n on

h the

light on

No need for Internet connection, smart
speakers, or a special app.

7-8

Environment

We are pursuing various initiatives to address environmental issues, which are indispensable to the

Supporting
Academic Solutions
to Environmental
IssuesAI-related products provided by the Ryoyo Group have been adopted, delivered, and rolled out at thesustainable increase in the Group’s corporate value.

Marine AI Development and Evaluation Center (MAIDEC) of the Tokyo University of Marine Scienceand Technology, a world-class research institute in the field of marine research. At the Center, education and research programs have been launched to develop Marine Industry AI Professionals,
people who will play leading roles in industries, not only university-level researchers but also leadersin marine industries, and who will be able to apply the fruits of their research to help address issues
facing society. We are proud to be able to contribute to solving environmental issues through initiatives such as MAIDEC.

Products we have delivered

Working to Reduce
Environmental
Impact Through Our
Business

Around the world, society is calling for industries to address environmental issues such as extreme
weather and global warming. One major issue is power loss at the point of power generation andconversion. The power semiconductors we provide to customers are addressing the need to minimize
power loss, enabling low-loss, high-speed operation. As a result, the products we offer are used insolar power generation systems that place high importance on the impact of power loss. They arealso installed in electric equipment used in railway cars that consume high levels of electricity, contributing to greater efficiency. We will continue to tackle environmental issues by providing solutions
for the environmental issues our customers face.

Ryoyo Electro
Annual Review
2021
Business topics

Society

The Ryoyo Group is promoting initiatives in the healthcare field in an effort to bring about improvements in society. We will create corporate value through growth in healthcare applications that canbalance business feasibility and contribution to social well-being.

Relationship withJapaneseFoundation forCancer Research(JFCR)We have positioned the healthcare field as a pillar of growth, and believe our activities in this area are
crucial to achieving sustainable growth in corporate value going forward. At the same time, we
believe these activities offer high value in terms of social well-being. Reflecting this belief, we madea donation to the Cancer Institute Hospital of JFCR, a private institution specializing in cancer, whichis among the leading hospitals in Japan in terms of the number of cancer operations. We hope tocontribute to the healthcare field in a new way through a strengthened relationship with the hospital.
Going forward, we will further reinforce our initiatives in the healthcare field by providing IT
systems that can be closely integrated into the work processes of healthcare professionals, contributing to solutions on the ground in medical settings and helping to realize a sustainable society.

Left : Dr. Masahiko Oguchi, Deputy
Hospital Director and Department
Director of the AI Medical Center,at the Cancer Institute Hospitalof JFCR
Right : Representative Director, President& Chief Executive Officer Moritaka
Nakamura, Ryoyo Electro

Online Eligibility
Verification Service

From March 2021, an online eligibility verification system will begin in Japan, in which an insured person’s eligibility can be confirmed online at the counter of a hospital or pharmacy, using the IC chip of
the person’s Individual Number Card or their health insurance card number. We will start offering a
support service to help implement the verification system. Our service is geared toward healthcarerelated system vendors, providing them with authentication systems to enable Individual Number Cardbased eligibility verification at hospital or pharmacy counters. In addition, we will provide a comprehensive lineup of related services, such as peripheral equipment, installation, and maintenance.
Our support service for introducing online checking of qualifications
Our proposal for a PC that meets the requirements for online
checking of qualifications
Selection of appropriate peripheral equipment
Setup and configuration service to provide all the equipment
needed for immediate utilization
On-site installation at medical treatment facilities and pharmacies
Connection of telecommunication lines
Maintenance service

Introduction as a single package available

Medical treatment facilities
and pharmacies

9-10

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 to continue to guarantee the soundness, transparency, and effectiveness of management, as well as increase corporate value and fulfill our responsibilities to society,
we are striving to develop internal systems that ensure the functionality of corporate governance.
Ryoyo Electro has taken several steps to enhance our corporate governance. For example, weestablished a Nomination and Compensation Committee, a voluntary advisory body to the Board of
Directors, as well as appointing an outside Director as Chairman of the Board, increasing the ratio ofoutside board members, and reducing our cross-shareholdings. In 2021, with the aim of enabling
decision-making that can respond more rapidly to changes in the business environment andstrengthening oversight functions, we introduced a delegated executive officer system, while also
reducing the number of Directors on the Board and shortening Director terms to one year.

Corporate
Governance
Highlights

InsideInside50%

Female25%
Directors

17%

Audit & Supervisory

Male/female

Board Members

ratio of Officers

OutsideOutside

50%

Male

75%

83%

Organizational structure of the Company

Company with Audit & Supervisory Board

Chairman of the Board of Directors

Outside Director

Directors

8 (including 4 outside Directors)

Audit & Supervisory Board Members

4 (including 3 outside Audit & Supervisory Board Members)

Independent officers

4 outside Directors and 3 outside Audit & Supervisory Board Members

Voluntarily established advisory committees for the Board of Directors

Nomination and Compensation Committee

Structure of compensation for Directors

Fixed compensation (basic compensation) Medium- to long-term performance-based compensation(restricted stock compensation)

History of
Improvements inGovernance andTrend of Compositionof the Board of
Directors

Introduced a delegated executive officer system, reduced thenumber of directors, shortened the director term of office to one year
Stipulated the upper limit of the term of office for Directors and executive officers

12
11
10

Established a voluntary Nomination and Compensation Committee

11

Appointed an outside Director
8
7
7

6

6

6

6

6

5

10
9

6

6

5

5

8

8

8

8

6

6

6

6

6

7

8
4

5

4

3

3

2
0
2008

2009

2010

2011

2012
Inside

1

1

1

1

1

1

1

1

1

1

1

1

1

1

2013

2014

2015

2016

2017

2018

2019

2020

2021

Outside(of which, female Directors)

Ryoyo Electro
Annual Review
2021
Corporate GovernanceCorporate
Governance System
General Shareholders’ Meeting
Appointment/
Dismissal

Audit &
Supervisory
Board

Financial
Auditor

Delegation of authority

Appointment/
Dismissal

Appointment/Dismissal

Board of Directors

Audit by Audit &Supervisory
Board Members

Delegation of
authority overbusiness execution
Order

Financial Auditor

Internal Auditing
Department

Appointment/
Dismissal

ReportNomination andCompensation
Committee

Representative
Directors

ReportCooperate

Executive Officers
Corporate
Attorneys

Consultation

Appointment/Dismissal

Advice/GuidanceInternal audit

Organization for
Business Execution

Board of Directors
The Board of Directors, which consists of eight 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 12 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 ofJapan, 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 under review.

Nomination and Compensation Committee
In November 2018, aiming to further enhance our corporate governance by strengthening the independence, objectivity, and accountability of the Board of Directors with regard to the nomination of
directors and executive officers and related matters such as compensation, we established the Nomination and Compensation Committee as a voluntary advisory body to the Board of Directors.
The Nomination and Compensation Committee must include three or more Directors, themajority of whom must be outside Directors; it currently consists of six members, including four
outside Directors, with an outside Director serving as Chair.
The Committee met six times during the fiscal year under review, deliberating and reporting to
the Board on matters related to: (1) the appointment, dismissal, and transfer of Directors and executive officers, (2) individual compensation for Directors and executive officers, and (3) changes in theexecutive officer system.

11-12

List of Officers (As of April 28, 2021)
Board of Directors

Directors

Representative Director,
President & Chief Executive Officer

Representative Director & Senior
Managing Executive Officer

Director &Managing Executive Officer

Director &Managing Executive Officer

Moritaka Nakamura

Kiyoshi Waki

Yasushi Okazaki

Seiju Yasuda

Term of office: 3 years*12/12

Term of office: 2 years

In charge of Corporate Planning Division
In charge of Corporate Administration Division
Nomination and Compensation
Committee Member

In charge of Semiconductors &Devices Division

In charge of Solutions Division

Independent Officer

Independent Officer

Independent Officer

Independent Officer

Yoshiharu Hayakawa

Masumi Shiraishi

Shinya Takada

Masashi Oba*12/12

Nomination and Compensation
Committee Member

Term of office: 5 years*12/12

Term of office: 2 years*12/12

Outside Directors

Term of office: 8 years*12/12Chairman of the Board of Directors
Nomination and Compensation
Committee Member

Term of office: 2 years*12/12

Nomination and Compensation
Committee Member

Term of office: 1 year

*10/10Nomination and Compensation
Committee Member

Term of office: 1 year

*10/10Nomination and Compensation
Committee Member

Audit & Supervisory Board

Audit & Supervisory
Board Member

Hiroyuki Kanno
Term of office: 1 year

*10/10**10/10Outside Audit & Supervisory
Board Members

Independent Officer

Independent Officer

Independent Officer

Ryoji Kimura

Kazumi Akiyama

Motomi Oi

Term of office: 9 years*12/12**12/12

Term of office: 5 years*12/12**12/12

Term of office: 1 year

*10/10**10/10* Attendance at meetings of the Board of Directors** Attendance at meetings of the Board of Audit & Supervisory Board Members

Ryoyo Electro
Annual Review
2021
Corporate GovernanceCriteria for the
Selection of Outside
Officers

In order to ensure the independence of the candidates it recommends for outside officer (outside

Compensation for
Directors and Audit& Supervisory Board
Members(i) Organization to Deliberate and Decide on Compensation for Directors

Director and outside Audit & Supervisory Board Member), the Company has formulated criteria forthe selection of outside officers.
Please see the following website for more details: https://www.ryoyo.co.jp/en/csr

The Company established a Nomination and Compensation Committee in November 2018 as avoluntary advisory body to the Board of Directors to further enhance corporate governance bystrengthening the independence, objectivity, and accountability of the Board of Directors’ functions
related to compensation. The Committee consists of four outside Directors, one of whom 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 and subsequent report on the total amount to the Board of Directors.

(ii) Structure and Determining Method of Compensation for Directors(1) Compensation Policy
Our aim with Director compensation is to attract highly qualified people who can help realize Ryoyo
Electro’s Management Philosophy and improve our business performance in line with our Management Policy, as well as giving Directors an incentive to play an active role in enhancing our corporate
value over the longer term. The Compensation Policy seeks to set out a suitable compensation
system, including basic compensation and stock compensation (restricted stock). Moreover, individual compensation is based on the relevant aspects of the compensation system, while taking into
account specific job description and level of responsibility.

(2) Policy for Determining the Amount, Award Period, and Terms of Basic
Compensation for Individuals
Basic compensation is fixed monthly compensation paid in cash while the Director is in office. For
Directors who also serve as executive officers, the basic compensation amount is determined annually at a certain period, based on the Compensation Table for each rank, and reflecting the previous
year performance of the Company, the degree of contribution of each Director to the Company, andother factors. Compensation plans for outside Directors not also serving as executive officers are
determined annually at a certain period, taking into account a range of factors, including Company
performance, compensation levels at other companies, and the current social context.

(3) Policy for Determining the Content, Amount, Calculation Method, Award Period,
and Terms of Stock-Based Compensation
Directors who also serve as executive officers are awarded restricted stock annually at a certain period
while in office. Restricted stock indicates common shares of Ryoyo Electro stock which carry a clauserestricting transfer of the stock from the date of issue throughout the duration of the tenure as Director
or in another position specified by the Board of Directors, until the Director retires or resigns. The
number of shares awarded is determined based on the Compensation Table for each rank.

(4) Policy on Compensation Table
In setting the Compensation Table, the Nomination and Compensation Committee uses as a reference
objective survey data on compensation amounts of firms listed on the Japanese stock market,

13-14compiled by outside specialists, and takes into consideration a range of factors, including the businessperformance and scale of our Company and the current social context. After making a relative comparison, the Committee then revises the Table appropriately, in line with the Compensation Policy.

(5) Policy on Determining the Ratio between Basic and Stock Compensation Amounts
for Individual Director Compensation
The Committee determines the ratio of types of compensation for Directors who also serve as executive officers based on individual positions and responsibilities, as well as trends among other companies. As a rule of thumb, basic compensation accounts for 80% and stock compensation accounts
for 20% of the overall compensation plan.

(6) Method of Determining Individual Director Compensation
All Director compensation plans are determined by a resolution of the Board of Directors, reflecting
deliberation and reporting from the Nomination and Compensation Committee, the majority of whose
members are independent outside Directors.

(iii) Total Compensation by Class of Directors and Audit & Supervisory Board
Members, Total Compensation by Type, and the Number of Applicable Individuals
Class of Directors andAudit & Supervisory Board Members
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

Total
compensation(millions of yen)Compensation by type (millions of yen)
Fixedcompensation

Restricted stockcompensation

Number ofapplicable
individuals

206

160

45

11

36

36

0

4

35

35

0

6

20

20

0

4

241

196

45

17

57

57

0

8

(iv) 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 andResults of Evaluation

We conduct an annual self-evaluation to gauge the effectiveness of our Board of Directors. The mostrecent survey looked at such areas as the composition and administration of Board meetings and thecontent of discussions. The results indicated that the Directors, including outside Directors, are generally functioning appropriately, and that the effectiveness of the Board of Directors is being safeguarded.
Suggestions from various Directors included the idea that there is room for improvement inproviding training opportunities to help Directors fulfill their duties, as well as for better mutual communication between outside and inside Directors and other executives. Others expressed their opinion that fuller discussions were needed around topics such as management strategies from a
medium- and long-term perspective, new business creation, and SDGs and ESG.
The Board of Directors will continue to discuss these suggestions as we strive to improve theBoard’s effectiveness to help build an optimal corporate governance structure.

Ryoyo Electro
Annual Review
2021
Corporate GovernanceInternal Control
Systems

The following are our basic principles for establishing internal control systems. These principles help
us maintain systems for sound internal control.
<Content of Policy>
1. System for ensuring that the execution of duties by Group Directors and employees is in compliance withall laws, regulations, and the articles of incorporation
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
5. System for ensuring the appropriateness of operations undertaken by the corporate group consisting of
Ryoyo Electro and its subsidiaries and for facilitating reporting to the Company with regard to the execution of duties by directors and other individuals at subsidiaries
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 such employees by Audit & Supervisory Board Members
7. System concerning reports submitted by Directors and employees of the Company and by Directors,
Audit & Supervisory Board Members, and employees of subsidiaries to the Audit & Supervisory Board
Members of the 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 to reporting
8. Items related to policies concerning the procedures through which Audit & Supervisory Board Members
may receive reimbursement, prior to or after the fact, for expenses incurred during the execution of theirduties as well as the treatment of other expenses and liabilities incurred as part of the execution of duties
9. Other systems for ensuring effective auditing by the Audit & Supervisory Board Members

Risk Management
Systems

Risks that may affect our operations include those related to compliance, the environment, disasters,

For more information on businessrisks, please refer to the following
section of the Company’s corporatewebsite.

risk management. In the event that any risk occurs, these employees will guide their department in

information security, product quality, foreign exchange rates, and financial reporting. Each department maintains effective risk management systems managed by employees that are responsible forresponding quickly and effectively to those risks in order to minimize damages.

https://www.ryoyo.co.jp/en/
ir-library/business-risk

Policy for Proactive
Communication with
Shareholders
Note:
The Company strives to ensure
timely and appropriate disclosure ofmanagement information through its
corporate website and other venues.
https://www.ryoyo.co.jp/en

The Company endeavors to ensure that disclosure of management information is conducted accurately, impartially, and promptly. 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 mediumto long-term improvement of corporate value. Accordingly, the following provisions have been put inplace to support proactive communications activities.
(1) The Director in charge of the Corporate Planning Division oversees shareholder communications, withassistance from the General Manager of the Corporate Planning Division.
(2) The Public Relations Department of the Corporate Planning Division functions as a venue for shareholder communications, while preparations for such communications are carried out jointly by 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 direction of the Company(4) Systems are in place to ensure that feedback received through shareholder communications activities isshared with management in a timely manner.
(5) In-house workshops regarding insider information are held and other steps are taken to ensure theappropriate management of insider information.

15-16

Consolidated Financial Review
Operating
Environment

During the fiscal year under review, the fiscal year ended January 31, 2021, Japan’s economy was hard
hit by the unprecedented global onset of the COVID-19 pandemic. While the economy is showing signsof gradual recovery, the pandemic is far from resolved, with a resurgence in new cases in Japan toward
the end of 2020. Concerns remain about the prolonged impact of the crisis not only on economic activity
but also on consumer spending and corporate capital investment.
The electronics industry in which the Group operates was impacted by COVID-19 in a wide
range of areas, and although production has shown signs of picking up in the manufacturing sector,
factors such as sluggish demand among end users and the tightening of export restrictions by theUnited States, as well as shortages in the semiconductor supply, have impeded a full-fledged recovery in the market, and the outlook remains uncertain. Capital spending by firms in the ICT area has
also been soft: With the exception of IT spending related to teleworking demand and information
security, much planned investment has been postponed or revised.

Results for the
Fiscal Year Ended
January 31, 2021

At the start of the fiscal year under review, we forecast lower full-year sales, taking into account the effectof projects that concluded in the previous fiscal year. The impact of COVID-19 subsequently became
pronounced in both our Semiconductors & Devices and ICT & Solutions segments, however, and whilesubstantial growth in semiconductor businesses for digital consumer electronics and new commercial
rights contributed to performance, this was not sufficient to offset the negative impact of the pandemic.
In May 2020, we fully consolidated Stylez Corp., which engages in IT solution service businesses, as part of our effort to reinforce our framework and functions for developing solution businesses to address customer and market issues. The following November, in line with a fundamental
revision of the company’s capitalization policy, we took steps to boost profitability and improve capitalefficiency going forward, such as buying back a total of ¥22 billion in treasury stock.
As a result, consolidated net sales for the fiscal year under review were down 11.7% year on
year to ¥95,792 million; operating profit was down 41.2% to ¥1,266 million; ordinary profit decreased
58.6% to ¥905 million; and profit attributable to owners of parent decreased 38.1% to ¥806 million.

Sales by Products
Semiconductors & Devices

Millions of yen
54,338
7,643
4,753
2,367
5,510

49,854
6,893
3,904
2,650
3,659

21,89523,983Otherelectronic
devices

Net sales were down ¥4,484 million, or 8.3%, year on year, to ¥49,854 million.

LCDs• Analog & power semiconductors: Sales of prod-

RF &opticalucts to the industrial fields decreased due to theMemoryLogic

12,172

8,765

Analog &power

heavy impact of COVID-19.
• Logic semiconductors: There was large-scale
growth for products for TVs, while there were

• Memory semiconductors: Sluggish sales ingeneral centering on products for PC peripherals.
• RF & optical semiconductors: Fell short of initialexpectations, but the launch of new products
made a positive contribution.

declines in sales of products for PCs andperipherals.

21.1

20.1

Major sales by segment are as follows:

ICT & Solutions
Net sales were down ¥8,261 million, or 15.2%, year on year, to ¥45,938 million.
Major sales by segment are as follows:
Millions of yen
54,19911,66245,938
11,17720.1

21.1

the first half but fell into negative territory as

on investment due to the impact of COVID-19

replacement demand following the termination ofcontinued, mainly in medical fields.

support for Windows 7 diminished in the latter• I/O equipment: Display-related products recov-

19,239I/O
equipment

ered starting from the second half, reaching• Embedded devices and others: Development of

5,892

PC/
Server/Network

almost the same level as the previous year, but

new contracts was sluggish due to the cancella-

the impact on printers of business that concluded

tion of trade shows and other events; the impact

in the previous year remains.

was caused by lower volume and postponement

9,630

11,725• Software: Performed favorably year on year inprojects decreased year on year, and restraints

Software

23,684

7,129

Embedded
devices &others• PCs/Server/Network: The number of large-scalepart of the second half.

in development contracts in the factory automation and medical fields.

Ryoyo Electro
Annual Review
2021
Financial Review

Sales by RegionJapan
A downturn in sales of software for PCs led to a year-on-year decrease in sales to external customers inJapan of ¥19,027 million, or 21.7%, to ¥68,565 million. Operating profit in this regional segment was
down ¥801 million, or 42.3%, to ¥1,093 million.

Asia
Sales to external customers in Asia increased ¥6,281 million year on year, or 30.0%, to ¥27,227 million,
buoyed by higher sales of semiconductors for digital consumer electronics. Operating profit in this regional
segment was up ¥17 million, or 8.6%, to ¥221 million.
The figure for operating profit presented in the consolidated statements of profit includes operating profit
from each segment as well as from intersegment transactions.

Financial Position

Total assets at the end of the fiscal year under review amounted to ¥59,336 million, a decreaseof ¥18,781 million from the previous fiscal year-end. This was mainly due to a decrease ininvestment securities.
Total liabilities were up ¥5,362 million from the previous fiscal year-end to ¥21,344 million,
mainly due to an increase in short-term borrowing.
Total net assets decreased ¥24,143 million year on year to ¥37,992 million. This was
mainly attributable to our buyback of treasury stock, which increased total treasury stock holdings.

Cash Flows

Cash and cash equivalents totaled ¥7,644 million at fiscal year-end, a year-on-year decrease of¥4,772 million. This was mainly due to expenditures for the repurchase of treasury stock.
Net cash provided by operating activities was ¥3,003 million, an increase of ¥1,539 million fromthe previous fiscal year-end. This mainly reflects a ¥2,860 million decrease in notes and accounts
receivable-trade, in addition to the recording of ¥1,028 million in profit before income taxes.
Net cash provided by investing activities was ¥10,431 million for the year under review, a yearon-year increase of ¥11,197 million. This reflects factors such as proceeds of ¥13,407 million fromsales of investment securities.
Net cash used in financing activities amounted to ¥18,327 million, a year-on-year increaseof ¥16,584 million. This primarily reflects expenditures of ¥22,451 million for the purchase oftreasury stock.

Returning Profits toShareholders

Basic Policy Regarding the Distribution of Profit
Our basic policy regarding dividend payments is to return profits to shareholders while considering
the Company’s financial position and the operating environment, as we seek to maintain a stable
operating foundation and pursue future business expansion. We have set a dividend on equity ratio(DOE) of 5% as our target for shareholder returns.
Dividend per share (Yen)FY2022/1

Forecast

FY2021/1

ResultFY2020/1

ResultFull Year

Payout
Ratio

DOE

60

120

154.1%

5.5%

120

180
511.5%

7.6%

150.8%

3.2%

InterimYear-End

60
60(Ordinary dividend: 60)
40(Ordinary dividend: 60)(Ordinary dividend: 120)
(Commemorative dividend: 60) (Commemorative dividend: 60)
4080

17-18

Consolidated Balance Sheets
Ryoyo Electro Corporation and Consolidated Subsidiaries At January 31, 2021 and 2020

Millions of yen

As of January 31, 2020

Thousands of U.S. dollars

As of January 31, 2021

As of January 31, 2021

AssetsCurrent assets
Cash and deposits¥

Notes and accounts receivable-trade¥12,417

Securities
Merchandise and finished goods
Work in process
Other
Allowance for doubtful accounts
Total current assets

7,644

$

25,48428,152

73,169243,919

–

999

9,566

12,598

11,614111,161

–

150

1,442

1,288

1,535

14,697

(2)

(6)

(58)

54,45347,423453,897808

Non-current assets
Property, plant and equipment
Tools, furniture and fixtures, net

96

84

Land

5

5

55

Construction in progress

–

4

38

Other, net

126

120

1,150

Total property, plant and equipment

229

214

2,051

Intangible assets
Goodwill

–

599

5,741

Other

311

245

2,347

Total Intangible assets

311

844

8,088

Investment securities

20,334

8,143

77,944

Deferred tax assets

–

39

378

Retirement benefit asset

1,627

1,520

14,549

Other

1,481

1,804

17,270Allowance for doubtful accounts

(320)

(653)

(6,253)23,122

10,854

103,888

Investments and other assets

Total Investments and other assets
Total noncurrent assets

11,913

23,664

Total Assets¥¥

78,11759,336

Millions of yen
As of January 31, 2020

114,026$

567,923

Thousands of U.S. dollars

As of January 31, 2021

As of January 31, 2021

Liabilities
Current liabilities
Notes and accounts payable-trade¥

12,006¥

11,263$

107,810

Short-term borrowings

–

6,637

Income taxes payable

730

92

63,530883

Accrued consumption taxes

226

231

2,212

467

264

2,536

Other

1,123

1,335

12,785

Total current liabilities

14,554

19,825

189,755

Provision for bonuses

Non-current liabilities
Long-term borrowings

–

79

759

Deferred tax liabilities

827

919

8,797

Retirement benefit liability

182

212

2,029

Other

418

308

2,953

Total noncurrent liabilities
Total liabilities

1,427

1,518

14,53815,982

21,344204,293

130,858

Net assets
Shareholders´ equity
Share capital

13,672

13,672

Capital surplus

13,336

13,336

127,646

Retained earnings

35,33733,460320,254

Treasury shares(2,630)(24,461)(234,130)

Total shareholders' equity

59,71536,006344,627
20,284

Accumulated other comprehensive income
2,141

2,119

Deferred gains or losses on hedges

(0)

(0)

(4)

Foreign currency translation adjustment

79

(126)

(1,210)

Valuation difference on available-for-sale securities

Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Total Net assets
Total Liabilities and net assets

¥

97

(50)

(488)

2,317

1,941

18,582

102

43

420

62,13537,992363,630

78,117¥59,336$567,923

Ryoyo Electro
Annual Review
2021
Financial Review

Consolidated Statements of Income andConsolidated Comprehensive Statements of Income
Ryoyo Electro Corporation and Consolidated Subsidiaries For the years ended January 31, 2021 and 2020
Millions of yen
Consolidated Statement of Income
Net sales

Fiscal year ended
January 31, 2020¥

108,538

Thousands of U.S. dollars

Fiscal year ended
January 31, 2021¥

95,792

Fiscal year ended
January 31, 2021$

916,851

Cost of sales

98,17786,598828,851

Gross profit

10,361

9,194

88,000

Selling, general and administrative expenses
(0)

(0)

(8)

Salaries and bonuses

3,191

3,286

31,4602,335Provision of allowance for doubtful accounts
Provision for bonuses

434

244

Retirement benefit expenses

57

87

838

Rent expenses

362

410

3,931

264

219

2,103

Other

3,896

3,679

35,215

Total selling, general and administrative expenses

8,206

7,927

75,874

2,154

1,266

12,126

Depreciation

Operating profit
Non-operating income
Interest income

62

34

327

Dividend income

167

160

1,533

Purchase discounts

7

1

15

Gain on investments in investment partnerships

18

58

562

Other

16

81

779

Total non-operating income

272

335

3,216

Interest expenses

–

53

517

Sales discounts

5

37

356

Foreign exchange losses

181

61

587
313

Non-operating expenses

Commission expenses

20

32

Loss on abandonment of non-current assets

4

0

8

Commission for purchase of treasury shares

–

490

4,698

Other

26

20

199

Total non-operating expenses

239

697

6,678

2,187

905

8,663

Gain on sales of investment securities

430

597

5,717

Gain on contribution of securities to retirement benefit trust

700

47

451

9

–

–

1,140

644

6,168
1,678

Ordinary profit
Extraordinary income

Gain on liquidation of subsidiaries and associates
Total extraordinary income
Extraordinary losses

–

175

1,107

41

399

Loss on valuation of shares of subsidiaries and associates

–

136

1,310

Provision of allowance for doubtful accounts

–

47

456

Settlement package

–

119

1,141

Loss on sales of investment securities
Loss on valuation of investment securities

Total extraordinary losses

1,107

520

4,984

Profit before income taxes

2,219

1,028

9,847

Income taxes - current

771

62

597

Income taxes - deferred

145

160

1,534

916

222

2,131

1,303

806

Total income taxes
ProfitProfit attributable to owners of parent

¥

1,303

¥

806

7,716
$

7,716

Consolidated Comprehensive Statement of Income
Profit attributable to owners of parent

1,303

806

7,716

571

(21)

(208)

0

(0)

(2)

(110)

(151)

(1,450)Remeasurements of defined benefit plans, net of tax

(84)

(148)

(1,423)

Total other comprehensive income

377

(322)

(3,083)

1,680

484

4,632

1,680

484

4,632

–

–

–

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

Comprehensive income(Details)
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests19-20Consolidated Statements of Changes
in Net Assets
Ryoyo Electro Corporation and Consolidated Subsidiaries For the years ended January 31, 2021 and 2020
Millions of yen
Shareholders’ equity

From February 1,
2019 to January 31, 2020
Balance at the beginning of current period

Accumulated other comprehensive income

SharecapitalCapitalsurplusRetainedearnings

TreasurysharesTotalshareholders'equityValuationdifference
on available-for salesecurities¥13,672¥13,336¥35,827¥(2,690)¥60,145¥1,569Deferred
gains orlosses onhedges¥(0)RemeaForeignSharesurements
currencyof defined acquisitiontranslationrightsbenefitadjustment
plans
¥189

¥182

¥123

Total net
assets¥62,208

Changes during period
Dividends of surplus(1,718)(1,718)(1,718)

Profit attributable to owners of parent

1,303

1,303

1,303

Purchase of treasury shares

(1)

(1)

(1)

Exercise of share acquisition rights

(15)

36

20

20

Restricted stock payment

10

24

35

35

(69)

(69)

(69)

4

(4)

–

–

Increasing and decreasing by consolidated subsidiaries merging with unconsolidated subsidiaries
Transfer from retained earnings to capitalsurplus
Net changes in items other thanshareholders’ equity

–

571

0

(110)

(84)

(20)

Total changes during period

–

–

(490)

60

(429)

571

0

(110)

(84)

(20)

356
(73)

Balance at end of period¥13,672¥13,336¥35,337¥(2,630)¥59,715¥2,141

¥(0)

¥79

¥97

¥102

¥62,135

RemeaForeignSharesurements
currencyof defined acquisitiontranslationrightsbenefitadjustment
plans

Total net
assetsMillions of yen
Shareholders’ equity

From February 1,
2020 to January 31, 2021
Balance at the beginning of current period

Accumulated other comprehensive income

SharecapitalCapitalsurplusRetainedearnings

TreasurysharesTotalshareholders'equityValuationdifference
on available-for salesecurities¥13,672¥13,336¥35,337¥(2,630)¥59,715¥2,141

Deferred
gains orlosses onhedges
¥(0)

¥79

¥97

¥102

¥62,135

Changes during period
Dividends of surplus
Profit attributable to owners of parent(2,463)(2,463)

806

806

806

(21,960)(21,960)

Purchase of treasury shares(21,960)

Disposal of treasury shares(2,463)

0

0

0

0

Exercise of share acquisition rights

(43)

101

58

58

Restricted stock payment

29

Change in scope of consolidation
Transfer from retained earnings to capitalsurplus

27

56

(205)

(205)

13

(13)

–

Net changes in items other thanshareholders’ equity

56
(53)

(259)
–

–

(21)

(0)

(151)

(148)

(58)

(380)

Total changes during period––(1,877)(21,831)(23,709)

(21)

(0)

(205)

(148)

(58)

(24,143)

Balance at end of period¥13,672¥13,336¥33,460¥(24,461)¥36,006¥2,119¥(0)¥(126)¥(50)¥43¥37,992

RemeaForeignSharesurements
currencyof defined acquisitiontranslationrightsbenefitadjustment
plans

Total net
assetsThousands of U.S. Dollars
Shareholders’ equity

From February 1,
2020 to January 31, 2021
Balance at the beginning of current period

Accumulated other comprehensive income

SharecapitalCapitalsurplusRetainedearnings

TreasurysharesTotalshareholders'equityValuationdifference
on available-for salesecurities$130,858$127,646$338,221$(25,173)$571,553$20,492

Deferred
gains orlosses onhedges
$(2)

$757

$935

$977

$594,712

Changes during period
Dividends of surplus
Profit attributable to owners of parent(23,582)(23,582)

7,716

7,716

7,716

(210,190)(210,190)

Purchase of treasury shares(210,190)

Disposal of treasury shares(23,582)

0

0

0

0

Exercise of share acquisition rights

(414)

972

558

558

Restricted stock payment

281

Change in scope of consolidation
Transfer from retained earnings to capitalsurplus

133

260

541

(1,969)(1,969)(133)–

Net changes of items other thanshareholders’ equity

–

541
(516)

(2,485)
–

(208)

(2)

(1,450)(1,423)(557)(3,640)Total changes during period––(17,968)(208,958)(226,925)

(208)

(2)

(1,966)(1,423)(557)(231,082)

Balance at end of period$130,858$127,646$320,254$(234,130)$344,627$20,284$(4)$(1,210)$(488)$420$363,630

Ryoyo Electro
Annual Review
2021
Financial Review

Consolidated Statements of Cash Flows
Ryoyo Electro Corporation and Consolidated Subsidiaries For the years ended January 31, 2021 and 2020

Millions of yen
Consolidated Statement of Income

Fiscal year ended
January 31, 2020

Thousands of U.S. dollars

Fiscal year ended
January 31, 2021

Fiscal year ended
January 31, 2021

Cash flows from operating activities
Profit before income taxes¥

Depreciation

2,219

¥

1,028

$

9,847

275

241

2,310
410

Amortization of goodwill–

42

Loss (gain) on sales and retirement of non-current assets

6

0

5

Share-based remuneration expenses

27

51

493

Expenses for treasury shares

–

490

4,698

(18)

(58)

(562)

Foreign exchange losses (gains)

0

(26)

(254)

Increase (decrease) in provisions

203

(216)

(2,076)

Loss (gain) on investments in investment partnerships

Increase (decrease) in retirement benefit liability

(742)

(58)

(564)

Interest and dividend income

(229)

(194)

(1,860)

–

53

517

Loss (gain) on sales of investment securities

(429)

(422)

(4,039)Loss (gain) on valuation of investment securities

1,107

41

399

–

136

1,310

Interest expenses

Loss on valuation of shares of subsidiaries and associates
Settlement package
Decrease (increase) in trade receivables

–

119

1,141

(2,630)2,860

27,380Decrease (increase) in inventories

(506)

990

9,481

Increase (decrease) in trade payables

1,949

(991)

(9,489)

Increase (decrease) in accrued consumption taxes

(20)

(27)

(265)

Other, net

231

(153)

(1,470)Subtotal

1,444

3,908

37,412

230

201

1,930

Interest paid

(1)

(53)

(511)

Settlement package paid

–

(38)

(368)

Income taxes (paid) refund(208)(1,015)(9,719)Net cash provided by (used in) operating activities

1,463

3,003

28,744

Interest and dividends received

Cash flows from investing activities
Payments into time deposits

(100)

(21)

(205)

Proceeds from withdrawal of time deposits

100

21

205

Proceeds from sales of securities

500

–

–

Purchase of property, plant and equipment and intangible assets

(164)

(107)

(1,026)11

14

Purchase of investment securities(7,168)(2,484)(23,776)

Proceeds from sales of investment securities

128,330

Proceeds from sales of property, plant and equipment and intangible assets

5,740

13,407

Proceeds from redemption of investment securities

500

–

–

Purchase of shares of subsidiaries and associates

(59)

(98)

(946)

Proceeds from liquidation of affiliates
Loan advances to subsidiaries and associates

66

–

–

(220)

–

–

Proceeds from distributions from investment in partnerships

23

86

827

Purchase of insurance funds

(60)

(75)

(723)

Purchase of shares of subsidiaries resulting in change in scope of consolidation

–

(383)

(3,667)

Other, net

73

84

804

(766)

10,431

99,838Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings–

33,986325,293

Repayments of short-term borrowings–(27,353)(261,807)

Dividends paid
Purchase of treasury shares
Proceeds from sales of treasury shares
Repayments of lease obligations
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents(1,716)(2,458)(23,533)(1)(22,451)(214,888)

–

0

0

(26)

(36)

(350)

–

(14)

(136)

(1,743)(18,327)(175,421)

(47)

(64)

(619)

Net increase (decrease) in cash and cash equivalents(1,093)(4,958)(47,458)

Cash and cash equivalents at beginning of period

13,416

12,417

118,846

–

186

1,782

Increase in cash and cash equivalents resulting from inclusion of subsidiaries in consolidation
Increase in cash and cash equivalents resulting from merger with unconsolidated
subsidiaries
Cash and cash equivalents at end of period

–

94
¥

12,417

¥

7,644

–
$

73,169

21-22

Corporate Data / Investor Information
As of January 31, 2021

Company Name

Composition of Shareholders

Ryoyo Electro Corporation

Treasury stock

35.3%

Head Office

25.9%

1.3%

1-12-22 Tsukiji, Chuo-ku,
Tokyo 104-8408, Japan

Foreign corporations andother foreign investors

2.8%

Telephone

Other corporations

Financial institutions+81-3-3543-7711

15.2%

FAX
+81-3-3545-3507

Individuals and other

Securities companies

19.4%

Major Shareholders
Thousands of shares%

Mitsubishi Electric Corporation

2,246

12.96

SHC Corporation

2,118

12.22

The Master Trust Bank of Japan (Trust account)

1,414

8.16

Sheep Shokai Co.

523

3.02

Websitehttps://www.ryoyo.co.jp/en

Establishment
February 27, 1961

Custody Bank of Japan (Trust account)

509

2.94

CapitalNippon Life Insurance Company

409

2.36

¥13,672 million

Custody Bank of Japan (Trust account 6)

283

1.63

Ryoyo Electro Employee Stockholder Association

267

1.54

Authorized Shares

Custody Bank of Japan (Trust account 1)

245

1.42

119,628,800

Custody Bank of Japan (Trust account 5)

237

1.37

Shares Issued
26,800,000

Shareholders

Note: Calculations for the ownership percentages above do not account for the 9,463,367 shares of treasury stock.

Stock Price Chart
Stock Price

Nikkei Stock Average

yen

yen

4,000

40,0003,000

30,0002,000

20,000Tokyo Stock Exchange,

1,000

10,000First Section

Trading Volume

11,827

Stock Trading Unit
100 shares

Stock Listing

SharesTicker Code9,000,000

8068

6,000,000

Transfer Agent

3,000,000

Mitsubishi UFJ Trust andBanking Corporation0

4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3
2018

2019

2020

2021

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 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.

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