RS Innovation 2030
Long-Term Vision for Ryosan Company, Limited

May 14, 2020

Notes on Preparation of the Long-Term Vision
Ryosan Co., Ltd. (Ryosan) has issued its new Long-Term Vision covering thenext 10 years: RS Innovation 2030.
Since it suspended the 10th Medium-Term Business Plan in 2019, Ryosan has
been moving forward with preparing a roadmap for new growth. While theimpact of the COVID-19 pandemic is making the current business environment
more difficult to discern with each passing day, Ryosan considers that it needs
to summarize its views, to explain its long-term direction to shareholders andother stakeholders. To that end, Ryosan has prepared this Long-Term Vision.
Ryosan aims to publish the 11th Medium-Term Business Plan, which details
specific measures to promote innovation aimed at achieving this Long-TermVision, later this fiscal year.

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RS Innovation 2030
Long-Term Vision for Ryosan33

Long-Term Vision Positioning of RS Innovation 2030
 Ryosan has reviewed its past measures, as well as its strengths andweaknesses, and sets forth its direction from a long-term perspective.
 In FY2020, Ryosan is operating with readiness to pivot to crisis management.
 From FY2021, Ryosan will start implementing new measures towardsustainable growth.

• Changes in the business and industry
environments• Macroeconomic slowdown

10th Medium-TermBusiness PlanCounter
Measures forProfitability
Enhancement

FY202011th Medium-TermBusiness Plan

2020
Measures toimprove theoperating
constitution

2021
Managementwith
readiness topivot to crisis
response2030

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Strengths of Ryosan Value-added Ryosan Wishes to Emphasize
Strengths of Ryosan Front-line capability: DNA that focuses on
the business front lines on the customerside Engineering intuition that can read between
the lines of specifications, attained throughcontacts with a wide range of customers
and a wealth of experience Financial strength to make the abovepossible

 Confidence: Customers can placeorders with Ryosan withconfidence.
 Uniqueness: Ryosan offers value
other companies can’t.
 Speed: Ryosan responds swiftly.

Speed

Business front
focused DNA

Intuition
Uniqueness

Confidence

Financialbase55

Aspiration of the Group in 2030

A Company that creates confidence and the best fit forsociety in the electronics domain

The electronics domain

Ryosan responds to a wide range of needs on thefront lines of business, not limited to the supply ofsemiconductors and electronic components.

For society

Ryosan contributes to a wide variety ofstakeholders, including customers, suppliers,
employees and shareholders.

Creating confidence and best fit

From the latest technologies, Ryosan provides
service that is the best fit for the customer,
delivering new value-added.

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Basic Policy for Achieving the Target State: Three Innovations for Growth

Leveraging its DNA as a company that is focused on the customers’business front, Ryosan is positioning three innovations as pillars of growth:business, networks and channels.
Business Innovation

Ryosan will deliver new
business models andvalue-added throughbold risk-taking.
Network Innovation

Ryosan will strengthen
its supplier network inJapan and overseas toserve customers’ wideranging needs.

Channel Innovation

Ryosan will expand its
network of customers inJapan and overseas byreorganizing andstrengthening its sales
channels.

Challenge to reach net sales of ¥500 billion and ROE of 8%77

Implementation of Business Infrastructure to Achieve the Target: Five Innovations

Ryosan will strengthen five domains as its infrastructure supporting growth:Work Processes, Technical Capability (Knowledge), Personnel(Resources), Finance and Governance.
Work Processes
Ryosan will actively deploy
digital technology to build
business infrastructure to thehighest levels of cost-saving andquality.
Technical Capability (Knowledge)

Governance

Ryosan will cultivate a community ofknowledgeable staff who can
respond not only to the latest
customer needs but also electronics
needs in Japan and abroad.

Ryosan will implement a
management framework thatenables sustainablebusiness management andrisk-taking.

Personnel (Resources)

Finance

As Japan’s working population becomesincreasingly aged, Ryosan will pursue
optimization of its organization and personnel
systems with a globalized economy in mind.

Ryosan will select business
opportunities with an eye on the costs.
Ryosan will improve ROE, using
appropriate leverage as necessary.
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Contribution to SDGs
Ryosan aims to achieve sustainable growth together with customers, suppliers, employees, shareholders
and other stakeholders, by creating confidence and the best fit in the electronics domain. Ryosan believes
that many of its efforts contribute to the Sustainable Development Goals (SDGs).

GrowthStrategy
1 Business
Innovation

Overview
Delivering new businessmodels and value-added
through risk-taking

RelatedSDGs

SDG Target
Goal 8: Decent work and economic growth
Promote sustained, inclusive and sustainable economic
growth, full and productive employment and decent work
for all

Goal 9: Industry, Innovation, and Infrastructure
Build resilient infrastructure, promote inclusive andsustainable industrialization, and foster innovation

2 Network
Innovation

Strengthening its supplier
network to serve customers’
wide-ranging needs

Goal 12: Responsible consumption andproduction
Ensure sustainable consumption and production
patterns

Goal 17: Partnerships for the goals
Strengthen the means of implementation and revitalize
the global partnership for sustainable development.

3 Channel
Innovation

Expanding its network ofcustomers in Japan andoverseas by reorganizing
and strengthening its sales
channels

Goal 9: Industry, Innovation, and Infrastructure
Build resilient infrastructure, promote inclusive andsustainable industrialization, and foster innovation

Goal 17: Partnerships for the goals
Strengthen the means of implementation and revitalize
the global partnership for sustainable development

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