Ryosan Company, Limited

Shareholders Social Meeting

June 26, 2015
Naoto Mimatsu,President
An Electronics Systems Coordinator1Introduction of the New Board Structure

9th Medium-Term Management Plan (Revision)

FY2015 Business PlanNoticeBusiness forecasts and all statement related to the future contained in this presentation
are based on information currently possessed by the Company and on certain
assumptions which we judge 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

An Electronics Systems Coordinator

2Directors

Naoto Mimatsu

Representative Director

President

Senior Managing Director

General Manager, Corporate Planning Headquarters
Concurrently General Manager, Sales Planning and Control Headquarters
Concurrently General Manager, 3rd Domestic Marketing and Sales Headquarters

Hiroyuki Kurihara

Managing Director

General Manager, Engineering Headquarters
Concurrently General Manager, 1st Semiconductor Business Headquarters

Toshifumi SakataDirectorGeneral Manager, 1st Domestic Marketing and Sales Headquarters
Concurrently General Manager, 2nd Semiconductor Business Headquarters

Kazunori SatoGeneral Manager, International Marketing and Sales Headquarters
Concurrently General Manager, Electronic Components Business Headquarters

Koji Homma

General Manager, 2nd Domestic Marketing and Sales Headquarters

Hiroshi Shibuya

General Manager, Electronic Equipment Business Headquarters

Yasuo Yoshiizumi

General Manager, Administrative Headquarters

Iwao Sakamoto

General Manager, Finance and According Headquarters

An Electronics Systems Coordinator

Masahide Nishiura3

Outside Directors, Audit & Supervisory Board Members

Outside DirectorsFumiaki Sato

Hideki Kuwahata

Kosuke Nishimoto

Full-time Corporate Auditor

Harumitsu Seki

Takeshi Honda

Outside Auditor

Kotaro Nakano

Toshiyuki Fujino

An Electronics Systems Coordinator4Nomination and Remuneration Advisory Committee

Representative Director

Naoto Mimatsu

Director

Iwao Sakamoto

Outside Directors

Fumiaki Sato

Hideki Kuwahata

Kosuke Nishimoto

An Electronics Systems Coordinator

5

Introduction of the New Board Structure

9th Medium-Term Management Plan (Revision)

FY2015 Business Plan

An Electronics Systems Coordinator

6

Ryosan Company, Limited

9th Medium-Term Management Plan
FY2014〜FY2017

May 20, 2015Naoto Mimatsu,President
7

Management Environment and Issues to be Addressed◆ Management Environment (Electronics Industry)・ Expansion of horizontal specialization alliances & reduction of entry barriers
・ Slow growth of Japanese market & growing number of Japanese
corporations shifting production overseas/engaging in overseas procurement
・ Diversifying customer needs (from individual components to modules andOEM/ODM)◆ Issues to be Addressed・ Reconstructing our business portfolio
・ Expanding our corporate activities on a global scale
・ Revising our profit/financial structure

8Basic Stance

Basic stance of the 9th Medium-Term Management Plan

“Innovation” and“growth”
Pursuing a business model shift which responds to changes in our business structureand sustainable independent growth
Universal Management Policy
Pursuing management essence, advancing management innovation, and yielding
management results are the keys to conducting open and transparent corporate
management and business activities with abundant creativity

9Concrete Initiatives
１．Ideal state for Ryosan
Realizing electronics system coordination
・ Commercialization of system solution business・ Global distributor

２．Description of initiatives
・ Creating new business models（Strengthening system solution capability）
Reestablishmentof growth path・ Further promotion of multi-vendor support（Expanding new supplier and product in existing business）

・ Strengthening global support to expand overseas business（Aiming at being global distributor）

Projectbusiness
Expandingexisting business・ Proactive investment toward growth
Improvementof capital efficiency

・ Acquiring treasury stock10

Strengthening System Solution Capabilities to Create New Business Models

Project business

Customer needs

Ryosan’s System Solution
Systems Technological Capability （Realiation）

Embedded Systems Capability （Coordination）

・Enhance system technological capability ingrowth fields and high-consumption fields
・Accumulate element technology in theabove fields

・Implement value-added proposals based on
our core in-house technology (modules,boards, etc.)

System consignment manufacturers（design, manufacturing）
Material
manufacturers

Modulemanufacturers

Components
manufacturers

・ System consignment business independent from commercial right・ Accumulation of system technological capability focusing on each field such as in-vehicle electricalcomponents, home equipment, IoT equipment, medical and healthcare device
・ Acquisition of outside human resources with experience in system development

11Further Promotion of Multi-vendor Support to Respond toCustomers’ Diversifying Needs

Expandingexisting business

Project businesse.g.) Main suppliers of semiconductor

・NXP Semiconductors N.V.

FutureGYRONICS・Winbond Electronics Corp.
・Micrel Inc.
・STMicroelectronics N.V.
・Applied Micro Circuits Corporation
・Atmel Corporation
・Faraday Technology Corporation

PresentConsider M&A

・ON Semiconductor
・Yamaha Corporation
・Macronix International Co., Ltd.
・Entropic Communications, Inc.
・Everspin Technologies, Inc.
・THine Electronics, Inc.
・・Response capabilities of Ryosan to customer’s needs

・Renesas Electronics CorporationProduct line-up

Expansion of new suppliers and new products by business acquisition, alliance and etc.

12Expanding
existing business

Strengthening Global Support to Expand Overseas Business

Germany
・Follow-up overseas shift ofJapanese clients

China/Hong Kong
・Design-in and sales for Chinese
corporations
・Follow-up overseas shift of Japaneseand American clients

India
・Design-in and sales for Indian
corporations

South Korea
・Design-in and sales for Korean
corporations

United States・Follow-up overseas shift ofJapanese clientsJapan・Design-in and global expansion
support for Japanese clients

Taiwan・Design-in and sales for Taiwanese
corporationsShared Theme in All Countries

Singapore/Malaysia/Thailand
・Follow-up overseas shift ofJapanese and American clients・Develop unique semiconductor andelectronic component manufacturers

Considering business acquisition from and alliance with local companies

13Existing Business Strategy

・ Aim at business expansion by proactive design-in initiative

Semiconductors

and effective allocation of resources in our main businesswith Renesas Electronics and foreign semiconductor
companies

・ Aim at business expansion by proposals of kit and system

ElectronicComponentsthat consist of semiconductors and multiple electroniccomponents under market expansion strategy integrated withsuppliers・ Continue to deal with sales of heat sink as an agent

14Existing Business Strategy

We will aim at expansion of business through the following
strategies:

ElectronicEquipment

・ Expansion of OEM and ODM business, further cultivation ofexisting ICT clients, and exploring of new clients by coreresources in systems equipment business・ Promotion of 3 business elements of hardware, material, andservice in facilities equipment business・ Enhancement of global sales promotion capability of devices
by establishment of system solution, while expanding

Technology

technical support capability of mainly semiconductor
technology, which accumulated long time as a technology
trading company, into the fields of electronic components andembedded products

15

Project Business Strategy

System Solution Project・ Aim at braking away from existing business model by developing system
consignment business based on clients and market needs independent fromtrademark right and solution business in growth field

Analog Sensor Marketing Project・ Propose a kit consisted of competent I/O device (sensor / light / wireless, etc.)
and analog IC16

Infrastructure Strategies◆ Reinforcing management in terms of quality・ Implement and promotion of Ryosan spirits (reestablishment of vision, human resources development)・ Strengthen corporate governance(3 outside directors, establishment of the Remuneration Advisory Committee and the Nomination
Advisory Committee, etc.)
・ Enhance global internal controls
・ Strengthen CSR at group companies
・ Enhance global risk response capability (legal and tax aspects)◆ Strengthening of our management structure（Strengthening of consolidated management）

・ Develop global information system (sales, logistics, accounting)・ Develop system to strengthen the profit/financial structure of group companies・ Increase efficiency of headquarters functions (Headquarters Management Division)
・ Appropriate use of human resources regardless sex, ages, or nationality

17Basic Policy Regarding Redistribution of Profits to the Shareholders◆ Dividends
・ Aim at increasing payout ratio over 50%

FY2014

Target of FY2017年

80 yenOver 100 yen◆ Acquiring of treasury stock・ Plan to implement continuous acquiring of treasury stock basically 1 million
share per year18Business Objectives
Achieve 5% of ROE in FY2017 aiming at 8% of ROE(Unit: 100 millions of yen)

FY2014
Results

FY2017
Of totalTarget

Of total

Net sales

2,335

Gross margin

195

8.4%

235

8.7%

SG & A expenses

1355.8%140

5.2%

Operating income

592.5%

953.5%Net income

32

1.4%

602.2%

ROE

2,700

2.7%

5.0%

19

FY2017 Target by Business Segment(Unit: 100 millions of yen)

FY2014FY2017 target

Net sales

Operatingincome

Of total

Net sales

Operatingincome

Of total

Existing business

2,335

61.5

2.6%

2,500

86.0

3.4%

Semiconductors

1,512

34.8

2.3%

1,500

51.0

3.4%

Electronic Components

629

16.1

2.6%

700

20.3

2.9%

Electronic Equipment193

10.55.4%

300

14.7

4.9%

Project business

00*2―200

9.0

4.5%

2.5%

2,700

95.0

3.5%

*1Total

2,335

59.2

*1. The total amount of operating income in FY2014 indicates the figure after deduction of -220 million yen of operating income adjustment*2. Net sales of project business in FY2017 include 13 billion yen for system solution business and 7 billion yen for new products, etc.
20

Introduction of the New Board Structure

9th Medium-Term Management Plan (Revision)

FY2015 Business Plan

An Electronics Systems Coordinator

21

Overview of Consolidated Plan for FY2015◆ Both net sales and operating income are projected to be flat
(Unit: 100 millions of yen)

FY2014FY2015Results

Of total

2,335

Net sales

PlanOf total

2,350% Chg. YoY+0.6%

Gross margin

195

8.4%

190

8.1%

(2.7)%

SG & A expenses

135

5.8%

133

5.7%

(2.2)%

Operating income

59

2.5%

57

2.4%

(3.8)%

Ordinary income

54

2.3%

57

2.4%

+4.2%

Net income

32

1.4%

38

1.6%

+18.7%

Earnings per share (yen)101.80122.51+20.3%

Domestic sales

1,25854%

1,350

57%

+7.2%

Overseas sales

1,076

46%

1,000

43%

(7.1)%An Electronics Systems Coordinator

22Overview of Business Plan for FY2015 by Business Segment◆ Income and profit will increase in Electronic Components business and Electronic
Equipment business(Unit: 100 millions of yen)

FY2014FY2015Results

Of total

Semiconductors Net sales

1,512

Operatingincome34.8

Net sales

629

Operatingincome16.1

Net sales

193

Operatingincome10.5

Electronic
Components

Electronic
Equipment

Of total

1,400
2.3%

31.0

2.6%

17.0

13.0
(4.0)

Net sales

2,335

2,350

Operatingincome59.2

An Electronics Systems Coordinator

2.2%

2.5%

57.0

(11.0)%
+4.9%

2.6%

290
5.4%

% Chg. YoY(7.4)%

660(2.2)

Adjustments

Total

Plan

+5.1%
+49.5%

4.5%+23.5%+0.6%
2.4%(3.8)%
23Percentage of Net Sales by Product (Plan)◆ Net sales of memories will shrink and systems equipment will expand

FY2014

Systems
equipment
6%

FY2015 Plan

Memories
8%

Facilities
equipment
2%Electromechanicalcomponents
20%

System LSIs
42%

Power supplies
2%
Display devices
5%

Discretesemiconductors
15%

An Electronics Systems Coordinator

Facilities
equipment
1%
Systems
equipment11%

Electromechanicalcomponents
21%Power supplies
2%
Display devices
5%

Memories
4%

System LSIs
42%

Discretesemiconductors
14%24Percentage of Net Sales by Field (Plan)◆ Net sales of car electronics will continue to expand in FY2015

FY2014FY2015 Plan

Other
6%
Industrial
equipment
12%

Other
6%
Industrial
equipment
14%
Digital consumer
16%

Car electronics
40%

Information andcommunications
24%

An Electronics Systems Coordinator

Digital consumer
16%

Car electronics
42%

Information andcommunications
24%

25

Plan for Redistribution of Profit to Shareholders(Unit: 100 millions of yen)

◆ Dividends for FY2015 is planned to be 90 yen

Current term net income
Total amount of dividends (figures inparenthesis are dividend payout ratio)

Purchase of treasury stock
Total payout ratio

50141%
39
40

114%

120%

36

38

162%
30

1330

19

18

1720

32

28
1074%

18

13（71%）@¥40

19（71%）

@¥60

32

38
24

18（78%）

27（74%）

（59%）

@¥60

@¥80

@¥900FY2011

FY2012An Electronics Systems Coordinator

FY2013

FY2014FY2015 Plan26