Supplementary Materials for
FY2022 Financial Results
FY2022: Fiscal year ended March 31, 2023

May 23, 2023
Ryosan Company, Limited

Financial Results for FY2022 andFY2023 Forecast of Business Results
FY2022 Overview
Management Integration with Ryoyo Electro

FY2023 Business Plan and Measures
Appendix
NoticeBusiness forecasts and other forward-looking statements contained in this document
are based on information currently possessed by Ryosan Company, Limited (Ryosan)
and on certain assumptions which Ryosan judges 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 (such as Japan and the rest of Asia) and rapidchanges in consumption trends and in product supply and demand• Sharp fluctuations in the dollar-yen exchange rate
• Sharp fluctuations in prices in capital markets, etc.

2Overview of Consolidated Business Results

Financial Resultsfor FY2022◼ In the full-year consolidated business results for FY2022, net sales were the highest since
FY2001, while results from gross profit to profit are Ryosan’s highest ever.
FY2021（単位：億円）(Unit: ¥bil)

Full-year
Business
Results

FY2022
April 27, 2023
Forecast

Full-year
Business
Results

Change(FY2022-2021)

Comparison
with Forecast

Net sales

272.6

326.0

325.6

＋19.4%-0.1%

Gross profit

24.9

－

32.8

＋31.7%－

Operating income

8.8

15.4

15.4

＋74.1%＋0.1%(% of net sales)（3.2%）（4.7%）（4.7%）（＋1.5pt）（＋0.0pt）

Ordinary income

8.0

13.4

13.3

＋65.3%-0.3%(% of net sales)（3.0%）（4.1%）（4.1%）（＋1.1pt）（＋0.0pt）

5.3

9.2

9.2

＋72.1%＋0.3%（2.0%）（2.8%）（2.8%）（＋0.8pt）（＋0.0pt）

EPS (¥)

228.75392.65393.70＋72.1%＋0.3%

US dollar average rate (¥)

112.38135.47＋20.5%

Profit(% of net sales)3Factors in Increase/Decrease of Net Sales and Operating Income

Financial Resultsfor FY2022◼ Net sales increased YoY by ¥53.0 bil, mainly due to growth of sales of products for the
consumer and industrial-equipment sectors, as the result of harvesting of products fromprevious investments and local measures in China and Hong Kong.
◼ Operating income increased YoY by ¥6.6 bil. Sales volume rose, yen depreciation had an
impact, and focused efforts were made to restrain SG&A expenses.
Net Sales (billions of yen)
OthersAutomotive +4.6
Information &+8.3
communications+5.7
Industrial equipment+19.2

Operating Income (billions of yen)
Increase in gross profit+7.9

325.6 +53.0

SG&A expenses-1.3

Increase
Managementin gross
expenses
profitImpact of
Impact of yen -0.3
margin depreciation
yen
Depreciation,
depreciation ＋0.7
-0.7
etc.
+3.5
-0.3 15.4 +6.6
Sales
increase+3.7

Consumer
+15.2

8.8

272.6

21年度

FY2021

コンシューマ

産業機器

情報通信

自動車

その他

22年度

FY2022

FY2021

FY20224

Financial Resultsfor FY2022

Segment Information◼ In the Device Business, net sales increased to ¥285.5 bil (up 18.6% YoY), mainly because
sales of products for the consumer and industrial-equipment sectors grew. Operating income
increased to ¥13.8 bil (up 83.1% YoY) amid yen depreciation and expanded sales.
◼ In the Solution Business, net sales increased to ¥40.0 bil (up 26.0% YoY) as a result of major
projects in the information & communications business and expansion in sales of products forinfrastructure. Operating income rose to ¥2.1 bil (up 49.8% YoY), lifted by increased sales ofvalue-added products.
（単位：億円）FY2021
Full-year
Business Results(Unit: ¥bil)
DeviceBusiness

Change(FY2022–2021)

285.5＋18.6%

7.58

13.88

＋83.1%（3.1%）（4.9%）（＋1.8pt）

Net sales

31.8

40.0

＋26.0%

Operating income

1.42

2.12

＋49.8%（4.5%）（5.3%）（＋0.8pt）

Adjustment

-0.14

-0.58

Net sales

272.6

325.6

＋19.4%

8.85

15.42

＋74.1%（3.2%）（4.7%）（＋1.5pt）

Operating income(% of net sales)

Total

Full-year
Business Results

240.8

Net sales(% of net sales)
Solution
Business

FY2022

Operating income(% of net sales)5Trend in Net Sales and Operating Margins by Quarter◼
◼

Financial Resultsfor FY2022

Quarterly net sales have stayed above ¥70 bil since Q4 FY2021. Net sales of ¥95.0 bil in Q2 FY2022 are Ryosan’shighest ever.
Operating margins stayed at 3% or higher in FY2022 as sales trended favorably and gross profit margins
improved.
Net Sales (Unit: ¥bil)

120

Devices

Solutions

8.0%

OP. Margin

95.0
6.9%
90

79.1
69.2

60

61.3

62.9

6.6

7.9

3.5%
30

11.8

54.6

9.2

76.2

72.6

7.8

9.5

7.9

81.6

6.0%

10.7

3.5%

4.6%

68.3

70.9

4.0%

2.8%
3.6%

3.1%
61.3

54.9

3.4%
69.8

83.2

63.0

0

2.0%

0.0%

Q1

Q2

Q3
FY2021

Q4

Q1

Q2

Q3

Q4

FY20226

Financial Resultsfor FY2022

Segment Trend Information◼ By application, sales in the industrial-equipment and consumer sectors increased as a share of total.
There are no major changes in regional trends to report. In sales by product, sales in theelectrotechnical-component sector decreased as a share of total device sales, while sales in the ITequipment sector increased due to the information & communications sector as share of total solution
sales.
By Application

By Product

5%

5%

13%

13%

OthersInformation &Communications

17%

20%

Industrial Equipment

20%

Consumer17%■ Devices ■ Solutions

6%

5%

Solutions

6%
3%

7%
3%

IT Equipment

21%
48%

42%

Automotive

7%
FY2021

Display Devices

17%

Electrotechnical
Components

7%

Memory61%

System LSIs/
Discrete
Semiconductors

FY2022

By Region
4%

4%

Others44%

45%

Asia ex-Japan

52%

51%

Japan

FY2021

FY202257%

FY2021

FY2022

7

Consolidated Balance Sheet/Consolidated Statement of Cash Flow◼
◼

Financial Resultsfor FY2022

Accounts receivable–trade increased amid sales expansion, but total assets decreased to ¥188.1 bil amid inventory reduction
and a decrease in accounts receivable–other.
Operating cash flow turned positive, reaching ¥19.5 bil, driven by factors in earnings expansion as well as the reductions ininventory and accounts receivable–other.

Consolidated Balance SheetFY2021
ended March 31, 2022

FY2022
ended March 31, 2023

Total assets

190.5

188.1

-2.4

Current assets

176.8

173.9

-2.9

Accounts receivable–trade

92.5

95.1

＋2.6

Inventories

52.6

47.6

-5.0

Accounts receivable–other

18.7

14.3

-4.4

Non-current assets

13.7

14.2

+0.5

Liabilities

95.8

85.4

-10.4

Accounts payable–trade

42.9

39.9

-3.0

Short-term loans payable, lease obligations
and commercial papers

43.3

33.8

-9.5

94.7

102.7

＋8.0

49.7%

54.6%

＋4.9pt（Unit: ¥ bil）

Net assets

Net assets to total assets (%)

ChangeConsolidated Statement of Cash Flow
（Unit：¥ bil）

FY2021

FY2022

ChangeCash flow from operating activities

-28.9

19.5

+48.5

Cash flow from investing activities

0.8

-0.4

-1.3

Cash flow from financing activities

18.9

-15.3

-34.3

Cash and cash equivalents at endof period

12.0

16.7

+4.7

8

FY2023 Forecast ofBusiness Results

Overview of Business Forecasts◼ Factoring in a change in conditions in the markets for consumer and information-andcommunications products, net sales are expected to be ¥270.0 bil in FY2023 (down 17.1% YoY).
◼ Operating income of ¥8.0 bil (down 48.1% YoY) is expected, due to factors such as reducing
sales in the Device Business and a decrease in gross profit margin in the Solution Business fromchanges in the product mix.
FY2022（単位：億円）(Unit: ¥bil)

H1

FY2023 Forecast

Full Year

H1

Full Year

Change(FY2023–2022)

Net sales

167.7

325.6

135.0

270.0

-17.1%

Gross profit

17.5

32.8

12.0

24.0

-26.8%

Operating income

9.0

15.4

4.0

8.0

-48.1%(% of net sales)（5.4%）（4.7％）（3.1%）（3.0%）（-1.7pt）

Ordinary income

6.5

13.3

3.0

7.0

-47.6%(% of net sales)（3.9%）（4.1%）（2.3%）（2.6%）（-1.5pt）

4.4

9.2

2.0

5.0

-45.8%（2.7%）（2.8%）（1.5%）（1.9%）（-0.9pt）

EPS (¥)

191.02393.7085.35

213.39-45.8%

US dollar average rate (¥)

133.97135.47130.00130.00-4.0%

Profit(% of net sales)

9FY2023 Forecast ofBusiness Results

Overview of Forecasts by Business Segment◼ In the Device Business, factoring in a change in conditions in the markets for consumer andinformation & communication products, net sales are forecasted to be ¥230.0 bil (down 19.5%
YoY), and operating income to be ¥7.0 bil (down 49.6% YoY).
◼ In the Solution Business, despite the wrap-up of major projects in information &communications in the previous fiscal year, net sales are forecasted to reach ¥40.0 bil, thanks（単位：億円）to acquisition of a new storage business. Operating income is expected to be 1.5 bil (down
29.5% YoY) as gross profit margin decreases due to changes in the product mix.
FY2022(Unit: ¥bil)

Change(FY2023–2022)

115.0

230.0

-19.5%

8.27

13.88

3.50

7.00

-49.6%（5.7%）（4.9%）（3.0%）（3.0%）（-1.7pt）

Net sales

21.4

40.0

20.0

40.0

-0.2%

Operating income

1.16

2.12

0.50

1.50

-29.5%（5.4%）（5.3%）（2.5%）（3.8%）（-1.6pt）

Adjustment

-0.43

-0.58

-0.00

-0.50

Net sales

167.7

325.6

135.0

270.0

-17.1%

9.00

15.42

4.00

8.00

-48.1%（5.4%）（4.7%）（3.0%）（3.1%）（-1.7pt）

Operating income(% of net sales)

Total

Full Year

H1

285.5

(% of net sales)
Solution
Business

Full Year

146.2

Net sales
DeviceBusiness

H1

FY2023 Forecast

Operating income(% of net sales)

10Financial Results for FY2022 andFY2023 Forecast of Business Results
FY2022 Overview
Management Integration with Ryoyo Electro

FY2023 Business Plan and Measures
Appendix

11

FY2022
Overview

The 11th Medium-Term Business Plan◼
◼
◼

The 11th Medium-Term Business Plan began in FY2021. The plan features six key measures, in line with Ryosan’s LongTerm Vision.
This Medium-Term Business Plan showed the shift of Ryosan’s management stance from a rigid defensive mode to an
active mode focused on transforming its business.
Ryosan has begun conferring in earnest in preparation for the upcoming management integration with Ryoyo Electro.

(Addition)

Management integration with Ryoyo Electro(Marketing)

Investments to transform
Ryosan’s line of business

Portfolio
diversification
Strengthening of local
business in China & HK

(Internal Control)

Raising efficiency of
existing businesses

Reinforcing thefoundations(Domestic)

Measures in the 11th
Medium-Term Business Plan

Harvesting of prior investment
products and making newinvestments(Overseas)
12

FY2022 Status Update on Key Measures
Measures

The 11th Medium-Term Business Plan

Portfolio diversification
Strengthening of local
business in China andHK
Harvesting of priorinvestment products
and making newinvestments
Investments totransform Ryosan’sline of business

Raising efficiency of
existing businesses
Reinforcing thefoundations

Details

FY2022
Overview

Actions performed in FY2022

・Expansion of non-automotive
business

・In H1, transfer of acquired territories was completed and businessexpanded in new territories.

・Reaching out to medium-sizedcustomers

・Marketing through non-face-to-face channels was shifted from theexperimental to the practical phase.
・Business synergies with partners in China were activated.

・Co-working with local partners
・Harvesting business fromprevious investments(additionally introduced
products)

・Ryosan invested in Yamasei Tech. Specific actions were examined with aview to synergy.
・Sales of products from previous investments expanded.

・Human resources at headquarters were expanded. Business negotiations
were carried out.

・Discovery of new products

・Entry into new businesses
grounded in customer needs

・Usage of digital technology

・Management information,
education, risk management
enhancement

・The integrated mechanical and electrical motor business leapfrogged tothe prototype-delivery stage.
・Ryosan invested in Priken. A cross-cell framework was discussed between
the two.
・Visualization of workload and work flow by area of responsibility was
conducted and work-related issues were identified.
・Management information was enhanced and the status of management
was visualized from multiple angles.
・Operation of a new personnel system began and thoroughgoing efforts
were made to entrench it.

・Educational programs were expanded and implemented.

Internal
Control

Governanceenhancement

・Strengthening management toattain Medium-Term Business
Plan

Corporate culture(Communication）

・Promotion toward activateinternal communication

・Enhanced KPI management framework and its monitoring.
・Budget processes were enhanced and resource allocation andmanagement functions were strengthened.

・Internal communication reviewed/modified .
・Meeting frameworks were reviewed and methods of operation were
improved.

13

Financial Results for FY2022 andFY2023 Forecast of Business Results
FY2022 Overview
Management Integration with Ryoyo Electro

FY2023 Business Plan and Measures
Appendix14

Positioning of the Management Integration with Ryoyo ElectroManagement Integration
with Ryoyo Electro

Aiming for net sales of ¥500 bil and 8% ROE
RS Innovation 2030

Integration with Ryoyo
ElectroNetwork innovation
Responding to a full range of customer
needs by strengthening Ryosan’s
domestic and overseas supplier
networkCreating fresh value throughthe interaction of products
and services

Business innovation

Expanding product lines
with minimal duplication ofhandled products whileadvancing cross-selling

Delivering fresh business models andvalue-added through proactive risktaking
Channel innovation
Filling out Ryosan’s domestic andoverseas customer network byrevamping and strengthening sales
channels

Broadening the customer
base to extend from major
companies to SMEs

15

Timeline and Plan

Management Integration
with Ryoyo Electro◼ To accelerate discussions on business synergy, Ryoyo Electro acquired shares in Ryosan.
◼ To put their alliance on a tangible footing, the two companies concluded a basic agreement on
management integration on May 15, 2023.
◼ Detailed discussions are under way with a view to achieving management integration by April
1, 2024.

Spring 2022

・Start of discussions regarding possibilities for synergies between
the two companies’ businesses

February 2023

・Acceleration of examination and discussion of the nature of thetwo companies’ alliance・Acquisition by Ryoyo Electro of a stake in Ryosan (18.71%)

March 2023

・Increase of Ryoyo Electro’s stake in Ryosan from 18.71% to20.08%, to increase assurance of achievement of new growth
opportunities for the two companies

May 2023

・Conclusion of basic agreement on management integration
between Ryosan and Ryoyo Electro; start of detailed discussions
toward management integration

April 1, 2024 (tentative)

Management integration

16

Management Integration

Objectives

with Ryoyo Electro◼ By leveraging their management resources to maximum effect, the two companies aim tocreate a new core group of electronics trading companies in Japan.
◼ Overlap of products handled and customer base is limited. The two companies will enhanceenterprise value through cross-selling of products handled and by building a business modelthat leads to fresh value creation.
◼ Ryosan and Ryoyo Electro envisage realizing a new kind of electronics trading company thatcreates solutions to the issues and needs of customers and the market as a whole.

Providing a wide range of products and services
Comparison of net
sales by businessComparison of net sales by applicationin the Device Business

12%

5%

11%

39%

16%
■Solution Business

20%

OthersInformation &9%Communications■Device Business

22%

28%

Industrial
Equipment

88%

PCs/peripherals
Communication
Industrial/otherConsumer

61%

Digital appliances

46%

Automotive

38%
Automotive
5%

RS
RyosanRyoyoREElectro

RyosanRyoyoREElectro
17Financial Results for FY2022 andFY2023 Forecast of Business Results
FY2022 Overview
Management Integration with Ryoyo Electro

FY2023 Business Plan and Measures
Appendix18

Business Planand Measures

Expected Business Environment◼ Growth in the semiconductor market lost momentum. Market conditions reversed as demand
softened.
◼ Consumption in the United States faltered. Although the rise in USD interest rates has
paused, rates remained at elevated levels.
◼ Against a background of geopolitical risk, prospects remain uncertain.
％

Growth Rate of the Semiconductor
Market (Japan), FY2023

Interest and Exchange Rates

6

4.0

4

3.0
2.0

3

1

160
140
120
100
80
60
40
20
0

5.0

5

2

Yen

％
6.0

1.0

WSTS (Japanese market)
Transition in growth ratefrom FY2022 to FY2023

0.0
A M J J A S O N D J F M A M J J A S O N D J F M
FY20210

FY2022SOFR

FY2020 H2 FY2021 H1 FY2021 H2 FY2022 H1 FY2022 H2

Exchange rate

Geopolitical Risk

Inflation Rate％
12

USD short-term
interest rates andexchange rates

10✓

Global economy is stalling as the conflict in Ukraine
lengthens✓

No apparent improvement in US-China relations✓

Loss of confidence in Western financial institutions
and fears of Asian contagion

8
6
4
2
0
Oct. 21Mar. 22Japan

Jun. 22

Sep. 22

Euro area

Dec. 22 Mar. 23
USA

China

Apr. 23

19

Business Planand Measures

Portfolio Diversification◼ Advancing the discovery of new customers (including reaching beyond core markets)
・ Ryosan is establishing a new department dedicated to marketing functions. Using online and othertechnologies, Ryosan is diversifying its points of contact with customers. Ryosan is preparing approaches
for leading customers to more value-added products through advancement of cross-selling and up-selling.
By applying expertise Company-wide, Ryosan expects to attract new customers and boost its sales
capabilities.
◼ Establishment of a service website using digital technologies (May 24, 2023 press release)• A website was established to enable customers to find the information they want quickly and in an easyto-understand fashion. Customer-originated information will be disseminated to build the Ryosan fan
base.

Advancing the discovery of new
customers

Posted content
Content that leads to solutions for customer needs

Customers

Online advertising

・Useful information

Direct-mail advertisingTechnological trends, market
trends, success/failure stories, casestudies in adoption/introduction,tech columns, etc.

Service website

Webinars

施策成果と今後の取り組み・Product information
Introduction to manufacturers,
product advantages, lineup of
products handled for each set, etc.
・Comparative information

Inside sales

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

20

Strengthening of Local Business in China & HK

Business Planand Measures◼ Maximization of synergies through Group-wide cooperation
・ Ryosan will strengthen its expansion of sales of general-purpose products by using Edal functions to maximum
advantage.
・ Ryosan will advance cooperation with Qingdao Sanyuan Taike Electronics Technology (China) in the solution
business focusing on the white-goods and automotive fields.
・ Ryosan will expand its solution business in the energy-storage-system field and in new fields.

Trend in net sales to local customers in the
China-HK region
Average annual
growth rate

（Unit：¥ bil）

+9.4%

（Unit：¥ bil）
Investment inYamasei Tech(local design house)

Absorption of Edal
as a consolidated
subsidiary

50

Trend in local-solution business in China and HK

10

Investment in
Qingdao Sanyuan
Taike Electronics(local SIer)

500

FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022FY2019FY2023

Strengthening of expansion of sales capabilities forFAE (focusing on analog products)

Solutions

DevicesAchievement of synergies using the strengths of
Edal and Ryosan

FY2020

FY2021

FY2022

FY2023(Forecast)(Forecast)

Expansion of sales to strategic customers (use ofdesign houses to strengthen technical support andsale of kits of semiconductors and electronic
components)
Expansion of solution business with local SIers(white goods, consumer electronics, other)21

Business Plan

Harvesting of Prior Investment Products and Making New Investments and Measures◼ Handling of products Ryosan has been investing in for many years (from foreign-affiliatedsemiconductor manufacturers) is significantly increasing. In FY2022 Ryosan reached the ¥30 bil level.
Beginning in FY2023, Ryosan is focusing on sales negotiations to push that figure still higher.
◼ Head-office reorganization and investment of resources in specialized functions are completed. By
strengthening in-house communication, Ryosan will uncover further new product lines, working
toward early commercialization.

Examples of new products

Net sales of products from previous investments（foreignaffiliated semiconductor manufacturers, etc.）（Unit：¥ mil）

500

400

Supplier

Sample productSupplier

Sample productCompany A

Optical modules

Company G

Memory modules

Company B

Optical sensors

Company H

Company C

Memory modules

3DCAD data
dissemination

Company I

BLDC motor drivers

Company D

Analog ICs

Company J

3D NAND

Company K

DRAM

Company E
Company F

300

Build-up circuitboardsWireless
communication ICs

Number of new suppliers recruited(Unit: No. of suppliers)

200
30
20

100

10
0
FY2020

FY2021

FY2022

FY2023

0
2020

2021

2022

2023

(Forecast)22

Investments to Transform Ryosan’s Line of Business (1/2)

Business Planand Measures◼ Entering new businesses based on customer needs
・ The integrated mechanical and electrical motor business has begun receiving orders for prototype
development. Ryosan is aiming for early commercialization.
・ Ryosan invested in Priken Co., Ltd., a manufacturer of printed circuit boards. Ryosan is fleshingout the details of cooperation toward cross-selling of various products handled by Ryosan.
Collaboration with Priken

Commercialization of motor business

Synergy◼

In motor evaluation at the customer
prototyping stage, Ryosan provides test
circuit boards and motor control switches

Designanddevelopment

Mass
production

Circuit-board
module business◼

At the customer mass
production stage,
switches are mounted
on mass-produced
circuit boards andmass-productionquality inverter
circuit-board modules
are provided.

Switch-andtool business

Motor control
switches arepackaged forcustomerdeveloped inverter
circuit boards andtools are provided.
Royalty business isenvisaged.

Target fields
Commercial
chillers

Pumps

Agricultural andconstruction equipment

Ventilators

Medicaldevices

AGVs

Technology

◼

Sales

Planning
andprototyping

PoC business

Details

Expansion of productlines (strengtheningof product lineup)

Promoting access to untapped areas withnew and existing customers and crossselling

Expansion ofcustomer base

Expansion of base among SMEs andindustrial fields

Deepening knowledgeof functions ofprocessing machinery

Absorption of expertise with a view toentering processing and manufacturingbusinesses

Characteristics of Priken• Specializes in multi-model, small-lot production and deliveryof prototypes on tight deadlines• Seamless provision of services from circuit design throughartwork simulation to circuit-board production and mounting• Wide-ranging product lineup
Wide range of processing-material options, including general
copper clad laminates, buildup circuit boards and metalbased circuit boards• A leader in testing boards for electronic components
23

Investments to Transform Ryosan’s Line of Business (2/2)

Business Planand Measures◼ Entering new businesses based on customer needs• Ryosan is moving toward launching an LCD business building the necessary manufacturer
functions. To serve customer demands, Ryosan is expanding from the module business into
the unit business.
• Delivery began in FY2022. Ryosan will expand sales by discovering further new customers andcontinuously invest management resources as a key pillar of the new business.
Target markets (examples)

Expansion of product lineup

Support for display diversification

Semi-custom models

Standard models

10.4-inch
LCD unit

Mounting of LCD: Use of LCD units

LCD

Serial IF

Touch-panel
controller

Touch panel

Participation in promising future markets
Rapid chargers

Microcontroller
ProcessorPowersource forbacklighting

Power source

Circuitboard

LCD unit

Unmannedconvenience stores

Microcontroller

Serial IF
Parallel IF

Circuitboard

Access gates

18.5-inch
LCD unit

Attraction of new customers
Elevators

5.7-inch
LCD unit

Automatedticket gates

Escalators

7.0-inch
LCD unit

24

Reinforcing the Foundations (Sustainability/TCFD/Human Capital)

Business Planand Measures◼

Ryosan is taking measures to achieve its Long-Term Vision, RS Innovation 2030.

◼

To respond to society’s demands for sustainability, Ryosan is enhancing transparency in its
activities. By disclosing non-financial information, Ryosan is conducting a continuous
dialogue with investors and other stakeholders.

Activities⚫ Establishment of a Sustainability Promotion Committee (tentative
name)⚫ Identification of risks and opportunities in key issues⚫ Drafting of basic policy, setting of indicators and targets

Strengthening of measures against global
warming (TCFD)

Extreme weather
Measures to alleviate climate-change
risk and environmental impact⚫

Impact of carbon taxes
Consideration of measures in response
to climate-change risk
Amount of electricity used
Recycling rate
GHG and CO2 emissions

Targets⚫
⚫
⚫

Strategy

Risk management Targets⚫

Strengthening of support for human capital⚫

Personnel education and training
Active investment in human capital toachieve the Long-Term Vision⚫

Environmental upgrading
Education from the perspectives of skills,
knowledge and compliance⚫
⚫
⚫

Women as share of management
Men’s rate of uptake of childcare leave
Male-female wage gap, etc.

25

Business Planand Measures

Financial Plan

◼ Management targets for the 11th Medium-Term Business Plan have been achieved ahead ofschedule.
◼ In view of near-term market conditions and the effects of policies, Ryosan expects to exceed
the Medium-Term Business Plan targets for FY2023.

Unit：¥ mil

FY2023Medium-Term Business
Plan Target

FY2023 Target

Net sales

263,000

270,000

Gross profit

21,30024,000Operating income

6,900

8,000

ROE

5.0%

5.0％
Transformationof enterpriseconstitution

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

Shift from rigid
defensivemode tooffensive mode

Creation ofbusinesses
and dramatic
improvementof earning
capability

26

Business Planand Measures

Forecast of Return to Shareholders◼ Dividend payout ratio is set at around 50%.
◼ Total dividend is set at ¥165 for FY2022 and forecast at ¥100 for FY2023.
Dividend per ShareDividend（¥）
Ordinary Dividend

Special Dividend

100

¥165
42%

Total Dividend：¥120
Dividend Payout Ratio：52%

¥100
47%

50

90

20

70

75
50

50

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

InterimYear-EndFY2022

FY202327

Financial Results for FY2022 andFY2023 Forecast of Business Results
FY2022 Overview
Management Integration with Ryoyo Electro

FY2023 Business Plan and Measures
Appendix28

Consolidated Business Results by Quarter
Net Sales
100.0

Operating Income(Unit: ¥bil)

75.0

61.3

(Unit: ¥bil)

95.0
79.1

62.9

76.2

72.6

69.2

81.6

Operating income

8.0

6.0

6.5
3.5% 3.1% 3.6%

4.0

25.0

2.1

2.0

8.0%

2.5

1.9

4.5%
3.4% 3.7

3.4%

2.6

2.8%
2.2 2.4

Q1

Q2

Q3

Q4

Q1

Q2

FY2021

Q3

4.0%

0.0%
Q1

Q4

Q2

Q3

Q4

Q1

Q2

FY2021

FY2022Q3Q4FY2022

Ordinary Income

Profit(Unit: ¥bil)(Unit: ¥bil)
Ordinary income

6.0% of net sales

3.6%
3.4%
2.9%
2.3
2.1%
2.2
1.8
1.6 1.6%
1.1

6.0%

5.7%
4.3%
5.4
4.0%
4.0%
3.3
3.3

Q3

FY2021

Q4

Q1

Q2

Q3

FY2022

Q4% of net sales

5.0%

4.0%
4.0%
3.0%
2.8%

4.0
3.0

2.6%

2.0

1.6

2.1%
1.3

3.7

2.5%

2.3

2.3

1.7

3.0%
2.0%

0.9% 0.9%
0.6 0.6

1.0
0.0%

Q2

Profit

5.0

2.0%

0.0
Q1

6.0%

2.0%

0.0

0.0

2.0

% of net sales

6.9%

50.0

4.0

Appendix

1.0%

0.0

0.0%
Q1

Q2

Q3

FY2021

Q4

Q1

Q2

Q3

Q4

FY202229

Segment Information by Quarter
Net Sales in the Device Business
100.0

Appendix

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

15.0(Unit: ¥bil)

83.2
80.0
60.0

69.8
54.6

54.9

68.3

63.0

61.3

70.9

9.2
9.0
6.0

20.0

3.0

0.0

7.9

Q2

Q3

7.8

0.0
Q1

Q2

Q3

Q4

Q1

Q2

FY2021Q3Q4Q1FY2022

Operating income

8.0%

0.80

(Unit: ¥bil)

5.6%

4.50

3.4%
3.00

2.9%

1.87 1.58

3.5%
2.9%
2.10 2.01 2.22

3.6% 4.4%

3.4%

3.11

Q2

Q3

FY2021

Q4

Q1

6.0%

0.60

4.0%

0.40

2.0%

0.20

0.0%

0.00

2.49

Q2

Q3

FY2022

Q4

4.4%
0.31

0.44

0.35

5.6%
0.67

6.0%

5.0%

5.3%
0.57

3.4% 0.49

4.0%

0.39
0.31
2.0%

0.00
Q1

Q3

% of net sales

5.2%

4.7%
6.05

Q2

FY2022

Operating income

7.3%

6.00

Q1

Operating Income in the Solution Business% of net sales(Unit: ¥bil)

Q4

FY2021

Operating Income in the Device Business

1.50

7.9

10.7

9.5

6.6

40.0

7.50

11.8

12.0

Q4

0.0%
Q1

Q2

Q3

FY2021

Q4

Q1

Q2

Q3

FY2022Q430

Consolidated Balance Sheet by Quarter

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

Inventories

Accounts receivable–other

Other current assets

Other liabilities
Short-term loans payable and commercial papers
Accounts payable–trade
Net assets

Non-current assets
250.0
200.0
150.0
100.0
50.0

Appendix

149.1
15.2
16.4
5.3
40.2
71.9

155.5
15.3
17.2
4.6
47.0
71.3

172.8
14.7
13.0
10.0
53.9
81.1

190.5
13.7
13.0
18.7

209.5
13.8
15.8
22.6

52.6

62.9

92.5

94.4

205.3
13.8
14.4
16.9
51.1

109.0

250.0
185.3

188.1

14.0
18.5
13.1

14.2
16.9
14.3

53.3

47.6

86.4

95.1

0.0

200.0
149.1
150.0
100.0

6.6
19.5
33.6

50.0

89.4

155.5
6.9
21.8

172.8

190.5

6.9

9.6
43.3

34.1

36.0

39.7

42.9

90.7

92.0

94.7

209.5

205.3

8.3

9.6

57.3

50.1

9.5
35.4

47.3

44.3

40.5

39.9

96.6

101.2

99.8

102.7

185.3

188.1
11.7
33.8

0.0
Jun. 30 Sep. 30 Dec. 31 Mar. 31 Jun. 30 Sep. 30 Dec. 31 Mar. 31
FY2021

FY2022

Jun. 30 Sep. 30 Dec. 31 Mar. 31 Jun. 30 Sep. 30 Dec. 31 Mar. 31
FY2021

FY202231