Ryosan Company, Limited
Counter Measures for Profitability
Enhancement: Progress Report
January 15, 2020

Blank Page

22

Counter Measures for Profitability Enhancement: Overview

Counter Measures for Profitability Enhancement: Individual
Measures(Attached) Results for FY2019 First Half and Business Plan for
Full Year FY2019
NoticeBusiness forecasts and all statements related to the future contained in this material
are based on information currently possessed by Ryosan Company, Limited (Ryosan)
and on certain assumptions which are judged to be rational. Actual business performance
may differ greatly depending on a variety of factors. The following is a list of major factors:
・Economic conditions in key markets (Japan and the rest of Asia), rapid changes
in consumption trends and supply-demand balance for products
・Sharp fluctuations in the dollar-yen exchange rate
・Substantial fluctuation in prices in capital markets

33

Counter Measures to Enhance Profitability: Background and Timeline
Background•
Ryosan’s
response
Published
May 2019

Ryosan decided to suspend the 10th Medium-TermBusiness Plan due to fundamental (non-seasonal)
business environment changes.

• Ryosan launched company-wide initiatives forprofitability enhancement in FY2019. Measures areunder way to reform the business portfolio, aiming for
ROE of 5% in FY2020.

Overview of Measures (Reviewed)

Growth strategy

Measures in Medium-term
Business Plan•

Solution Business•

Creation of new suppliers•

New business models•

Local overseas business

Financial strategy

Infrastructure
strategy

Issues• Drastic changes of the key suppliers’ marketing
policies.
• Requests for the inventory holdings from customers
and suppliers.
• Additional HR cost burden to attain the growthstrategies.
• Interest burden arising from the increase of US$ loan
amount.
• Global market slowdown including China.

Overview

Actions

Review

Profitability
enhancement(Reorganization)

Continue

Consideration ofstrategic investments

Review

Profitability
enhancement(Financial reform)•

Qualitative enhancementof corporate governanceContinue

Internal controls
ESG•

Strengthening ofmanagement infrastructure Reorganization
 Personnel system
renewal Optimization of control
functions

Review

Profitability
enhancement(Reorganization)

Schedule

Update on profitability enhancement initiatives,
including the governance framework, progress
and prospects.

May 2019• Suspension of
medium-termbusiness plan
• Publication of
measures toenhance profitability➤

January 2020
(Today)• Status update on
counter measures➤

FY2020• Publication of new
medium-termbusiness plan44

Project Governance StructureOverview

Measures to enhance profitability were launched under the direct supervision of the President.
The leaders of each project are the relevant directors or executive officers in charge.
Progress status is confirmed at Executive Officers’ Meetings and reported to all members of the Board of Directors.

Framework

Overview of measures to enhance profitability(Overseen by：Director, Senior Executive Officer, In charge of Profitability Enhancement)
Project name

Executive Officers’ Meeting(4 directors, relevant executive
officers, etc.)

Reorganization

All members of the Board of
Directors

I.

Withdraw from non-profitable businesses

II.

Optimize organizations

III.

Evaluate and concentrate on key projects
for Solution Business initiatives

IV.

Streamline control function

V.

Optimize headcounts

VI.
VII.
VIII.
Financial reform

Individual project advancement
meetings(Leaders: 2 directors, 5 executive officers)

Expand Renesas business through nonorganic approach
Introduce business model to change theengineering function to the profit center
Reduce inventory volume and minimize
US$ borrowing

IX.

Minimize head office space usage

X.

Dispose of non-working assets including
investment securities

LeaderSenior Executive Officer, President andRepresentative Director of SAXIS Company, Limited
Executive Officer, General Manager, Sales
Administration Headquarters
Executive Officer, General Manager, Solution
Business Headquarters
Director, Senior Executive Officer, General Manager,
Finance and Accounting Headquarters
Executive Officer, General Manager, Administrative
Headquarters
Executive Officer, General Manager, Administrative
Headquarters
Representative Director, President
Executive Officer, General Manager, Engineering
Headquarters
Senior Executive Officer, President andRepresentative Director of SAXIS Company, Limited
Director, Senior Executive Officer, General Manager,
Finance and Accounting Headquarters
Executive Officer, General Manager, Administrative
Headquarters
Director, Senior Executive Officer, General Manager,
Finance and Accounting Headquarters
Executive Officer, General Manager, Administrative
Headquarters

55

Objectives of Counter Measures for Profitability Enhancement

Overview

1) Improvement of business efficiency through withdrawal from non-profitable businesses, optimization oforganizations, etc.
2) Reduction of various operating costs through reduction of personnel and corporate assets as a result of
the above measures3) Strengthening of Renesas business and engineering business to strengthen profitability

Reorganization

Raising
efficiency

I. Withdraw from non-profitable businesses✔

II. Optimize organizations✔

III. Evaluate and concentrate on key projects with Solution
Business initiatives✔

IV. Streamline control function✔

V. Optimize headcounts
VI. Expand Renesas business through non-organic approach

Added
item

FinancialreformVII. Introduce business model to change the engineeringfunction to the profit center

Cost
reduction

Enhancementofprofitability

✔

1)

✔
✔

3)

✔

VIII. Reduce inventory volume and minimize US$ borrowing✔

IX. Minimize head office space usage✔

X. Dispose of non-working assets including investment
securities✔

XI. Revise cost structure

✔

2)

66

Counter Measures for Profitability Enhancement: Overview

Counter Measures for Profitability Enhancement: Individual
Measures*(Attached) Results for FY2019 First Half and Business Plan for
Full Year FY2019* Some counter measures cannot be covered today due to duty of confidentiality and timing of project implementation.

77

Individual Measures(Reorganization)

Withdraw from Non-profitable Businesses (I) As a result of changes in sales margins, settlement, logistics etc., profitability of some overseas
semiconductor supplier operations has deteriorated.
 Ryosan is limiting the scope of transactions by revising its commercial rights and decreasing costs by
reducing personnel assigned to overseas semiconductor supplier operations. At the same time, Ryosanis improving operating efficiency by introducing IT solutions systems and revising the sales organizations.
1) Profitability enhancement: Business plan of overseas semiconductor
manufacturer A (ex.)

FY18

FY19

Results

Plan

External business environment• Sales conditions

FY20
Comparison
with FY18

Plan

 Reduced margins• Settlement conditions
 Handling of unique settlement
procedures for overseas semiconductor
manufacturers

No. customers

14

12

6

–57%

No. personnel

32

24

9

–72%

2) Operating efficiency improvement• Logistical conditions
 Expansion of scope of costs owed by
RyosanIT initiative
Sales
promotion➤Orderacceptanceandplacement➤

Settlement

Sales promotion reorganization➤

Persons responsible forcustomers
Follow-up

A

B

C

Persons responsible forcustomers

A

B

C

X

X

X

X

Y

Y

Y

Y

Order
acceptance ➤ Input ➤forecast

1) Profitability enhancement
2) Operating efficiency improvement•

SpecialDelivery➤➤ Inventory
deadlines
pricesIT solutions have been developed toincrease the efficiency of processes thatconsist mainly of manual work.

Persons responsible for
products

Deterioration in profitability

88

Optimize Organizations (II), Evaluate and Concentrate on Key Projects with
Solution Business Initiatives (III), Streamline Control Function (IV)

Individual Measures(Reorganization) The corporate network has been simplified through reduction of leased properties at head office,consolidation of branches, reorganization of logistics centers, etc.
 ROI of Solution Business initiatives is being enhanced by reviewing all projects and by concentrating
resources on promising projects.
 Control functions have been streamlined through business process re-engineering, etc. and resources
will be shifted to sales departments and/or sections.
Network Optimization

Reassessment of Solution Business initiatives• Reduction of leased properties through revision of facility
usage to decrease leasing expenses• Consolidation of branches through business process
standardization and introduction of efficient customer
support structure.
• Reduction of logistics costs through revision of logistics
routes and reorganization of logistics centers in the
Chukyo and West Japan regions

FY19

FY20

Plan

Comparison with
FY2019Plan

Net sales (¥ Bil)

5.6

7.2

+29%

No. projects

24

15

–38%

No. personnel

34

26

–24%

Control Function Review
Trend in Number of Facilities
FY18
Results

FY19

Department
No. personnel
name

FY20

Plan

Plan

Comparison
with FY18

Next steps

Head-officerelated

5

5

3

–2 → Project IX

Branches

21

21

15

–6 → Project X

Logistics
bases

4

2

2

–2

Corporate
Planning

13

Administrative48

Finance andAccounting

18

Sales
Administration

6

Total

85

• Business process reengineering• Outsourcing• Mergers of HO
Departments

99

Optimize Headcounts (V) (Recruitment of Early Retirees)

Individual Measures(Reorganization)

1. Reasons for and Background to Recruitment of Early Retirees

With profitability declining as the business environment has been deteriorating, Ryosan has not
attained enough revenues to cover operating expenses. To promote further reductions in SG&A,
Ryosan is canvassing employees who are willing to take early retirement.
2. Overview of Early-retiree Recruitment System(1) Eligible persons: Full-time and temporary employees who will be 58 years of age or older asof March 31, 2020 (not including persons essential to Ryosan’s operations)(2) Number of persons to be recruited: About 80(3) Recruitment period: From February 3 to 14, 2020
(4) Retirement date: March 31, 2020
(5) Incentives: Retirees will be treated as retiring at the convenience of Ryosan. As such, early
retirees will receive a special supplement in addition to the prescribed retirement bonus. Allremaining leave will be paid. In addition, early retirees will receive assistance in finding new
employment from an outplacement company.
3. Future Prospects

Ryosan expects to appropriate the expenses for special supplements and outplacement incurred
through recruitment of early retirees as extraordinary losses in the accounts for the fiscal year
ending March 31, 2020 (FY2019). Impact on full-year business results is currently being
assessed and will be reported when the FY2019 accounts are published (it is not expected toconflict with the disclosure standards established by the Tokyo Stock Exchange).
1010Introduce Business Model to Change the Engineering Function
to the Profit Center (VII)

Individual Measures(Reorganization)

 As a result of reduction of technology bonuses and lowering of margin standards, Ryosan is having
difficulty covering the expenses of the engineering functions it holds as a technology trading company.
 Ryosan envisages turning the engineering function into profit centers by selling certain technologies in its
possession and switching to high-value-added services.
Initiatives by engineering function

Changes in business environment for technology trading companies• Technology bonuses from suppliers have been declining due topolicy changes.
Technology bonuses

MeasureSystemproposal(SIer function)

Contracted
development(ASIC/softwaredevelopment)•

Margins (covering tech staff costs) have been squeezed due tointensified market competition.
Sales margin at semiconductor
manufacturer B

14

15

16

17

18
Fiscal Year

Device support(FAE functions)No.
personnel

10

Details• Outside sales of technologies
developed in-house• Shift of resources to highvalue-added fields

45

25• Expansion of analyticalservices for ASIC
abnormalities• Introduction of fees for highvalue-added services• Direct marketing

Existing techsupport

50

Total

130

• Items related to existing
businesses, quality control,
etc.

11
11

Individual Measures(Financial Reform)

Reduce Inventory Volume and Minimize US$ Borrowing (VIII)

 Inventory, including inventory denominated in foreign currencies, has risen steeply, mainly due toexternal factors since FY2017. Relevant expenses have become a major factor suppressing profitability
for Ryosan.
 Ryosan has reduced inventories through measures such as reduction of unprofitable businesses(discussed earlier), strengthening internal controls over order acceptance and placement procedures andshifting some management duties overseas. Relevant costs are being reduced.
Trend in inventory value(Unit: ¥ Bil)

BackgroundOther
inventory• Demand for additional distribution stock in response to
the Kumamoto earthquake• Expansion of overseas semiconductor business

Foreigncurrencydenominatedinventory

Interest¥0.14 bilamount• Steep increase in inventory, including foreign-currencydenominated inventory
 Expansion of foreign exchange gains/losses Increase in interest burden due to increase inforeign-currency-denominated borrowings¥0.71 bil

¥0.68 bil (Plan)

Accounts
receivable

Liabilities denom inatedin foreign currencies

Accounts
payableForeigncurrency
borrowing↑

Inventory

Foreign exchange
gains or losses
due to revaluation

Revaluation at end of period• Reduction of foreign-currency-denominatedinventory held at head office (shift ofmanagement to overseas bases)

Assets denom inatedin foreign currencies

Revaluation at end of
period• Strengthening management of order acceptanceand placement processes¥0.39 bil

Methods of hedging exchange risk and their financial impact (Reproduction ofNovember 2018 presentation documents)

Rate at time ofbuying-in• Reduction of unprofitable transactions¥0.15 bil

Net sales
Cost of sales

Rate at time of sale
Rate at time of buying-in
Foreign exchange gains or losses at time
Gross profit
of sale due to difference between rate attime of sale and rate at time of buying-in
Foreign exchange gains or losses due toNon-operating revaluation of foreign currency borrowing
income/expenses equivalent to inventory at the end of the
month

↓

12
12

Expected Quantitative Effects

Individual Measures

 Despite some divergence from the expected scale of reduction, Ryosan has attained cost reduction ofroughly 80% of the plan.
 Ryosan expects to achieve its target for ROE in FY2020 through additional measures from Jan. 2020.
 Expected one-time expenses in FY2019 arising from these measures will be ¥900 million as was statedin the original plan.
FY2020 profit increase plan (expected)

Cost reduction effects in FY2020 (expected)(Unit: ¥Mil)(Unit: ¥Mil)

ROE5% Line
(Effective tax rate 30%)

15,8526,285

80% achievement oforiginal plan expected
3,934

14,5401313Counter Measures for Profitability Enhancement: Overview

Counter Measures for Profitability Enhancement: Individual
Measures(Attached) Results for FY2019 First Half and Business Plan for
Full Year FY2019

14
14

Financial Results for
FY2019 First Half

Consolidated Statements of OperationIn the consolidated first half of fiscal year 2019, both net sales and operating income declined against the same period of the previous
fiscal year (YoY). Ordinary income increased, due to the effect of revaluation of foreign-currency-denominated liabilities, appropriatedin the same period of the previous fiscal year, resulting in a foreign-exchange gain.
Reorganization of logistics facilities resulted in write-down expenses, causing extraordinary losses to reduce net profit growth.

H1 FY18

H1 FY19（単位：億円）(Unit: ¥Bil)

AmountAmountChangeInitial Plan

Comparison
with Initial Plan

Net Sales

128.9

116.4

-9.7%

115.0

+1.3%

Gross Profit

10.7

9.2

-13.6%

9.3-1.1%(% of Net Sales)(8.3%)(7.9%)(-0.4pt)(8.1%)(-0.2pt)

Operating Income

2.8

1.8

-34.8%

1.7+11.1%(% of Net Sales)(2.2%)(1.6%)(-0.6pt)(1.5%)(+0.1pt)

Ordinary Income

1.6

1.8

+15.9%

1.4+34.1%(% of Net Sales)(1.3%)(1.6%)(+0.3pt)(1.2%)(+0.4pt)

1.0

1.0

+2.3%

1.0

+8.1%

(0.8%)(0.9%)(+0.1pt)(0.9%)(0.0pt)EPS (¥)

43.62

46.15

+5.8%

42.68

+8.1%

US Dollar Average Rate (¥)

110.26108.63-1.5%

108.00+0.6%

Net Profit(% of Net Sales)15
15

Financial Results for
FY2019 First Half

Segment InformationIn the Semiconductors business, both sales and income declined, due to a downturn in the industrial equipment businessand a decrease in sales incentives.
The Electronic Components business was subject to falls in both sales and income, as the consumer business reversed
course and declined from an increasing trend of the first half of FY2018 and sales of value-added products for industrial
equipment trended downward.
In the Electronic Equipment business, handling of value-added products and the like resulted in a decline in sales and anincrease in income, in comparison both to the same period of the previous fiscal year and to the plan at start of the fiscalyear.

H1 FY18(Unit:（単位：億円）¥Bil)

Results

Electronic
Components

Electronic
Equipment

Total

Results

ChangeComparison
with Initial
Plan

Initial
Plan

77.0

69.2

-10.1%

69.5

-0.4%

Operating Income

1.3

0.8

-42.3%

0.9-10.4%(% of Net Sales)(1.8%)(1.2%)(-0.6pt)(1.3%)(-0.1pt)

40.4

38.0

-6.0%

35.5

+7.0%

Operating Income

1.4

1.1

-19.5%

0.9+32.9%(% of Net Sales)(3.7%)(3.1%)(-0.6pt)(2.5%)(+0.6pt)

Net Sales

11.5

9.2

-20.1%

10.0

-7.8%

Operating Income

0.1

0.1

+1.2%

0.1

+73.0%(% of Net Sales)(1.5%)(1.9%)(+0.4pt)(1.0%)(+0.9pt)

Net Sales

128.9

116.4

-9.7%

115.0

+1.3%

Operating Income

2.8

1.8

-34.8%

1.7+11.1%(% of Net Sales)(2.2%)(1.6%)(-0.6pt)(1.5%)(+0.1pt)

Net Sales

Semiconductors

H1 FY19

Net Sales1616Trend in Net Sales and Operating Margins by Quarter

Financial Results for
FY2019 First Half Net sales has trended below ¥60 bil per quarter since Q4 FY2018, under pressure from a downtrend indemand in the industrial equipment market.
 Operating margin declined to 1.4% in Q1 FY2019, due to a reduction in gross profit resulting from falling
net sales. A decrease in selling, general and administrative expenses supported a recovery in operating
margin to 1.8% in Q2 FY2019.
Net Sales (Unit: ¥Bil)
80
Semiconductors

58.9

64.7

66.2

6.5

6.4

5.5
18.4
40

2.6%

21.0

21.9

2.7%

Operating Margin
Electronic Components

64.1
7.8

20.4

2.6%

63.5

65.4

5.2

6.3

19.6
2.0%

34.9

37.0

37.8

1.2%
35.7

Q1

Q2

Q3

Q4

Electronic Equipment

Operating Margin

63.2
5.7

20.7

19.4

2.5%

2.3%

38.6

38.3

38.1

Q1

Q2

Q3

57.4

57.9

4.8

4.7

58.5
4.4

5.0%

4.0%

3.0%

17.6

1.6%

19.2

18.7

1.8%

2.0%

1.0%

1.4%

34.9

34.4

34.7

Q4

Q1

Q2

0

0.0%
FY17

FY18

FY19

17
17

Financial Results for
FY2019 First Half

Segment Trend Information

 In trends by region, no significant changes are recognized. In trends by application, only business related to invehicle electrical equipment held steady YoY, causing this segment to increase its share of net sales. Trends by
product indicated a solid trend in electromechanical components for in-vehicle electrical equipment.
By Region

By Product

4%

4%

5%

Others

39%

43%

43%

Asia

57%

53%

52%

H1 FY17H1 FY18

H1 FY19Japan■ Semiconductors ■ Electronic
Components■ Electronic Equipment

3%
4%

1%
7%
3%
4%

Facilities Equipment
Systems Equipment
Power Supplies
Display Devices

25%

24%

26%

Electromechanical
Components

3%

4%

4%

Memory

13%

17%

17%

Discrete
Semiconductors

42%

39%

38%

System LSIs

H1 FY18

H1 FY19

1%
9%

1%
8%

3%
4%

By Application
4%
15%

12%

OthersIndustrial
Equipment
Information &Communication

16%

Consumer

53%

In-Vehicle
Electrical
Equipment

8%

8%

14%

11%

14%

13%

18%

17%

49%

48%

H1 FY17H1 FY18

H1 FY19

H1 FY1718
18

Consolidated Balance Sheet / Consolidated Statements of Cash Flow

Financial Results for
FY2019 First Half As a result of payments such as ¥1.7 bil for the FY2018 year-end dividend, which included a special dividend,
net assets decreased to ¥86.4 bil.
 A decline of ¥4.9 bil in inventories, combined with the downturn in net sales and other factors, engendered a¥3.1 bil decrease in notes and accounts receivable–trade. As a result, cash flow from operating activities grew topositive ¥13 bil (¥4 bil increase YoY). Cash and cash equivalents at the end of the period reached ¥21.1 bil (¥4bil increase YoY).
(Unit: ¥Bil)

As of Mar. 31,
2019

As of Sept. 30,
2019

Increase andDecrease

Total Assets

146.5

141.4

-5.1

Current Assets

129.3

124.5

-4.8

Non-Current Assets

17.2

16.8

-0.4

Liabilities

58.7

54.9

-3.8

Net Assets

87.8

86.4

-1.4

59.9%

61.1%

+1.2ptNet Assets to Total Assets (%)(Unit: ¥Bil)

FY18 1H

Increase
and（単位：億円）Decrease

FY19 1H

Cash Flow from Operating Activities

9.0

13.0

+4.0

Cash Flow from Investing Activities

-0.2

-0.1

+0.1

Cash Flow from Financing Activities

-5.1

-6.1

-1.0

Cash and Cash Equivalents at the Endof the Period

17.1

21.1

+4.0
19
19

Business Plan for
Full Year FY2019

Business Objectives

 The forecast for full-year business results in FY2019 is unchanged from the forecast at the start of the fiscal year,
announced in May 2019.
 The USD exchange rate is changed from ¥108 to ¥105. The H2 forecast below for income does not include theeffect of currency-rate fluctuations.

FY18

FY19

（単位：億円）(Unit: ¥Bil)

Full
Year

1st
Half

Net Sales

249.6

Gross Profit

2nd Half
Plan

Full-Year
Plan

Change(FY19-18)

116.4

118.5

235.0

-5.9%

235.0

0.0%

20.6

9.2

10.0

19.3

-6.5%

19.3

0.0%

(% of Net Sales)(8.3%)(7.9%)(8.5%)(8.2%)(-0.1pt)(8.2%)(0.0pt)Operating Income

5.2

1.8

2.3

4.2

-19.8%

4.2

0.0%(% of Net Sales)(2.1%)(1.6%)(2.0%)(1.8%)(-0.3pt)(1.8%)(0.0pt)Ordinary Income

3.9

1.8

1.7

3.6

-9.4%

3.6

0.0%

(% of Net Sales)(1.6%)(1.6%)(1.5%)(1.5%)(-0.1pt)(1.5%)(0.0pt)

1.4

1.0

0.8

1.9

+28.4%

1.9

0.0%(0.6%)(0.9%)(0.7%)(0.8%)(+0.2pt)(0.8%)(0.0pt)EPS (¥)

62.07

46.15

34.94

81.09

+30.6%

81.09

0.0%

US Dollar Average Rate (¥)

110.91108.63105.00106.82-3.7%

108.00-1.1%

Net Profit(% of Net Sales)

InitialPlan

Comparison
with Initial Plan

20
20

Overview of Business Plan by Business SegmentsBusiness Plan for
Full Year FY2019

In H2 FY2019, the Company expects its Semiconductors and Electronic Equipment businesses to benefit from a recovery
in orders serving industrial equipment, with gradual increases in net sales and operating income. However, both sales andincome are forecast to decline for the Electronic Components business due to an expected drop in consumer goods orders
from the fiscal half-year under review.
In view of the results in H1, the forecast for the FY2019 full fiscal year is revised downward for the Semiconductors andElectronic Equipment businesses. However, figures for the Electronic Components business are revised upward. The totalof all forecasts by business segment is unchanged from the start of the period.

FY18
Full
Year

(Unit: ¥Bil)（単位：億円）Semiconductors

Total

2nd Half
Plan

Full-Year
Plan

Change(FY19-18)

InitialPlan

Comparison
with Initial Plan

150.1

69.2

72.2

141.5

-5.7%

142.0

-0.4%

Operating
Income

2.4

0.8

1.3

2.1

-12.8%

2.2-4.4%(1.6%)(1.2%)(1.9%)(1.5%)(-0.1pt)(1.6%)(-0.1pt)

Net Sales

77.4

38.0

36.4

74.5

-3.8%

71.5

+4.2%

Operating
Income

2.6

1.1

1.0

2.2

-15.1%

1.9+18.4%(3.4%)(3.1%)(2.9%)(3.0%)(-0.4pt)(2.7%)(+0.4pt)

Net Sales

22.1

9.2

9.7

19.0

-14.2%

21.5-11.6%

Operating
Income

0.3

0.1

0.2

0.4

+4.7%

0.4

0.0%

(% of Net Sales)(1.7%)(1.9%)(2.3%)(2.1%)(+0.4pt)(1.9%)(+0.2pt)

Net Sales

249.6

116.4

118.5

235.0

-5.9%

235.0

0.0%

Operating
Income

5.2

1.8

2.3

4.2

-19.8%

4.2

0.0%(2.1%)(1.6%)(2.0%)(1.8%)(-0.3pt)(1.8%)(0.0pt)(% of Net Sales)

Electronic
Equipment

1st
Half

Net Sales(% of Net Sales)

Electronic
Components

FY19(% of Net Sales)2121Business Plan for
Full Year FY2019

Plan for Return to Shareholders

 The FY2019 plan for return to shareholders is unchanged from the start of the period.
 The divided is planned as an ordinary dividend of ¥100. No acquisition of treasury
shares is planned.
Dividend per Share
Ordinary Dividend

Special Dividend

Dividend (yen)
150

150
140

Acquisition of Treasury Shares
Dividend Ratio

150

Dividend Ratio
250%

140

Year

242%
50

200%

50
50

100

50

100
150%

123%

117% 120%

50

79%
80

90

90

86%
100

100%

100

100
50%

0%

0
FY14

FY15

FY16

FY17

FY18

FY19
(Plan)

No. ofAcquired
Shares(Thousand)Amount(¥Bil)

FY12

1,000

1.9

FY13

1,000

1.9

FY14

450

1.8

FY15

1,550

4.6

FY16

1,370

4.4

FY17

3,610

15.9

FY18

1,050

4.2

FY19 (Plan)－－
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