Shareholders Social Meeting

June 21st, 2013
Ryosan Company, LimitedToday’s report
1. Introduction of the New Board Structure

2. Business Management Effort for Fiscal 2013
3. Fiscal 2013 Performance Plan1

1. Introduction of the New
Board Structure2New board structure
Representative PresidentDirector(Concurrent position held)

Naoto Mimatsu

Director

General Manager, 1stDomestic Marketing and Sales
Headquarters(Concurrent position held)
General Manager, 2nd
Semiconductor
Business Headquarters

Kazunori SatoDirector

General Manager, Finance andAccounting Headquarters(Concurrent position held)
In charge of Administration

Hidekazu SanoDirector

General Manager, Electronic
Equipment Business
Headquarters

Yasuo Yoshiizumi

General Manager, Corporate
Planning Headquarters

ManagingDirector

General Manager, Sales
Administration Headquarters(Concurrent position held)
General Manager, 3rdDomestic Marketing and Sales
Headquarters(Concurrent position held)
General Manager, 1stSemiconductor Business
Headquarters

Hiroyuki Kurihara

General Manager, 2ndDomestic Marketing and Sales
Headquarters

Hiroshi Shibuya

General Manager, Engineering
Headquarters

Toshifumi Sakata

General Manager, Electronic
Components Business
Headquarters

Tsuyoshi Koyama

Director

General Manager, Production
Headquarters

Director

General Manager, International Koji Honma
Marketing and Sales
Headquarters

DirectorDirector
DirectorDirector (Outside)

Masaaki Komatsu

Auditor (Full-time)

Harumitsu Seki

Auditor (Full-time)

Takeshi Honda

Satoshi Takabayashi Auditor (Outside)

Kotaro Nakano

Auditor (Outside)

Toshiyuku Fujino

32. Business Management Effortfor Fiscal 20134

Recognition of Current Situations
External environment◇Changes in the global economic and industrial structure◇Structural changes in the semiconductor industry
・New restructuring of semiconductor manufacturers
・Clear demonstration of the survival of the fittest insemiconductor trading companies

Themes at the Company◇Sluggish net sales◇Stagnating profit rate (gross margin, operating income)5Our Basic Stance and Specific Efforts[Our Basic Stance]

Seek sustainable growth and sound management[Specific Efforts]
Cultivation of businesses to serve as 2nd and 3rd pillars

Enhanced action as a technology trading company

Enhanced action in each business segment
Further improvement of corporate structure
6Cultivation of Businesses to Serve as 2nd and 3rd Pillars◇Further strengthening of overseas semiconductor
device business・Implement projects for developing new resources
Objective: Discover new resources for sustainable growth of our company

Goal: ・Quick contribution to performance through new resources which can bedeployed throughout entire group
・Determine whether the new resources can be used to expand ourcompany’s business・Further strengthening of overseas semiconductor device business
Objective: Re-challenge the overseas semiconductor device business as a
growth strategy
Goal: Seek net sales of tens of billions of yen through subsidiaries (Saxis,Gyronics) which mainly conduct business in overseas semiconductors*Add the above strategy to the Growth Strategy section ofthe 8th Medium-Term Management Plan

7

Addition/Editing of Growth Strategy in 8th Medium-Term Management Plan

1. Further strengthening of overseas semiconductor
Additiondevice business
2. Strengthening approach to developing countries of quick
growth (China and India)

3. Strengthening dealing with globalizing Japanese customers

4. Strengthening exploitation in growing fields (car electronics,social infrastructure, etc.)
8Enhanced Action as a Technology Trading Company◇Medium-term themes
・Expanding the strongest areas and enhancing the system technical capabilities
・Extending the technology for growth markets and expanding globally◇Efforts in FY2013～Strengthening technology that sells out～

◇Strengthening system technical abilities (including elementaltechnology) and proposal abilities◇Strengthening development abilities through commissioned
development (ASIC/software development)◇Strengthening technical support abilities (device appliedtechnical abilities) for complementing suppliers◇Global expansion of in-house technology to growth markets
Promoting design-in for the Korean, Chinese and Indian markets
9Enhanced Action in Semiconductors Business◇Medium-term themes[Domestic suppliers]
Heighten ability to respond to changes in the business structure of major
suppliers, achieve reconstruction of profit structure and business growth[Overseas suppliers]
Expand business by enhancing functions for responding to the expectations ofoverseas suppliers◇Efforts in FY2013[Domestic suppliers]
・Intensive strategy for the growth fields of in-vehicle electrical components
・Exploiting and capturing new markets (Smart grids and LED lightening, etc.)
・Sales promotion to overseas local clients in cooperation with local design
houses (China, Korea)[Overseas suppliers]
Increase the number of personnel at Saxis and Gyronics, enhance sales system
10Enhanced Action in the Electronic Components Business◇Medium-term themes
Improve product lineup and expand into overseas markets◇Efforts in FY2013
・Improving the product lineup

Increase sales of LED, optical input devices, sensors, etc.

・Enhanced expansion into overseas markets

Establish new division dedicated to Chinese electronic components,expand local business・Enhanced development of growth fields

In-vehicle electrical components, social infrastructure, informationand telecommunications, digital consumer devices
11Enhanced Action in the Electronic Equipment Business◇Medium-term themes
Increase business scale through a growth field strategy and actions
for new business models◇Efforts in FY2013
・Introducing new business models
Commissioned processing service, materials (such as noise suppressionsheet) sales, etc.

・Improving the product lineup
Develop new business through Taiwanese and Chinese suppliers, mid-sized
venture companies manufacturing facilities equipment, etc.

・Exploiting markets and clients in growth areas
Environmental energy, Social infrastructure, next-generation semiconductors

・Response to globalization
Platform business in China, sale of materials to Taiwanese corporations, etc.
12

Enhanced Action in the Ryosan Products Business◇Medium-term themes
Expand business and enhance earnings power◇Efforts in FY2013
・Efficient business expansion by capturing strategic markets

Specialize in strategic markets such as heavy electrical machinery,industry/FA, environment/energy, in-vehicle technology, medicine, etc.;
concentrate resources and expand high added-value business・ Business expansion by introducing new products and technologies
Improve functions of liquid cooling and wave cooler, launch newindustrial products・Thorough implementation of unified management

Revise systems and management methods, enhance unification, clarify
responsibility, and increase speed

・Reconstruction of production system

Construct an optimal production map and a business system which focuseson 5 years into the future
13

Further Improvement of Corporate Structure◇Improvement in the profit structure
・Worsening profit structure due to restructuring of businessstructure by major suppliers and stagnation of the Japaneseelectronics industry
・Continuously challenge for improvement in the profit rate
➥Secure an appropriate gross profit margin by implementing sales
activities with added value such as technical support◇Improvement in the financial structure
・Proper adjustment of turnover months for inventories:
Target of less than 1 month➥Reduce excess inventory through strict enforcement of detailed
control for delivery dates
14

Further Improvement of Corporate Structure◇Maintain small governmental involvement anddevelop infrastructure for making all groupcompanies into consolidated subsidiaries
・Name and business activities of main companies to be made into
consolidated subsidiaries
Company NameBusiness Activities

EC Ryosan Company, Limited

Commission sales of electronic components

RYOSAN TECHNOLOGIES USA INC.

Sales of semiconductors and electronic components

DALIAN F.T.Z RYOSAN INTERNATIONAL TRADING CO., LTD.

Sales of semiconductors and electronic components

SHEN LING ELECTRONICS (SHENZHEN) CO., LTD.

Commission sales of semiconductors and electroniccomponents

RYOSAN EUROPE GMBH

Sales of semiconductors and electronic components

RYOSAN ELECTRONICS (FOSHAN) CO., LTD.

Manufacture and sales of heat sinks

153. Fiscal 2013 Performance Plan

16

Consolidated Performance Plan
Unit: ¥ 100 million

FY2012FY2013 (Plan)

Of T otal

Net sales% Chg. YoY%2,065

Of T otal(5.2)%

2,150% Chg. YoY%＋4.1%

Gross Margin166

8.1(0.6)%

176

8.2＋5.6%

SG&A expenses

1296.3(2.0)%

1306.0＋0.1%

Operating income

36

1.8＋4.6%

462.1＋25.2%

Ordinary income41

2.0(8.1)%

482.2＋16.7%

Net income

28

1.4＋48.2%

30

1.4＋6.6%

Earnings per share¥84.40¥92.41
17

Net Sales Plan for Semiconductors Business(¥ 100 million)

Memories

1,600

System LSIs
Discrete

1,400

1,380
1,311
92110

1,200

1,000

800

858

910

362360FY2012FY2013 (Plan)

600

400

200018Net Sales Plan for Electronic Components Business(¥ 100 million)

Display Devices

600

Power Supplies
Mechanical Components

510530500

1101304005045300200335

370

1000FY2012

FY2013 (Plan)

19

Net Sales Plan for Electronic Equipment Business(¥ 100 million)

System Equipment

250

200

Facilities Equipment

195

190

150

164

155

3135FY2012

FY2013 (Plan)

10050020

Net Sales Plan for Ryosan Products Business
Domestic(¥ 100 million)
6050Overseas

4850

4030

353620101314FY2012FY2013 (Plan)

021

Net Sales Plan for Domestic/Overseas
Overseas (Other thanJapanese companies)
Overseas (Shifting toJapanese companies)(¥ 100 million)
2,500

Domestic

2,150
2,065
2,000

1,500

193

230

559

570

1,312

1,350

FY2012FY2013 (Plan)

1,000

500

022

Implementing Financial Strategies Aimed to Improve Corporate Value

1. Fundamental policy
・Maintain stable and high dividends

2. Establishment of basic management indices(1) Yearly: consolidation dividend payout ratio on consolidated basis of 50%or more

(2) FY2013 Goal: dividend on equity (DOE) of 2.5% or more

3. Stock repurchase・Repurchase 1 million shares each year from FY2011 to FY201323Trends in Net Income, Total Amount of Dividends, and Purchase of Treasury Stock
Net income(¥ 100 million)(42%)

Total amount of dividends

85%

Purchase of Treasury Stock70

Total payout ratio

(71%)

60

（128%

57

5050

(66%)

(71%)

66%

(71%)

140%

161%

39

284067

(72%)

2272%

20
3928

27120%

35
1917174130

2828

18100(64%)

30273020） Dividend payout ratio

131918

@¥80

@¥80

@¥60

@¥80

@¥40

@¥60

@¥60

FY2007

FY2008FY2009FY2010FY2011FY2012FY2013(Plan)<<Trends in Purchase of Treasury Stock>>
FY2007

FY2008FY2009FY2010FY2011FY2012FY2013

Amount(\ 100 million)

28.8

22.5

―

―

17.2

19.8

17.9

Number of stocks(10,000 shares)

100.0

100.0

―

―

100.0

100.0

100.024