July 11, 2016

For Immediate Release

Ryosan Company, Limited
Representative: Naoto Mimatsu,President &Representative Director
Listing Code No.: 8140
Listing: First Section, Tokyo Stock Exchange
Inquiries: Norihiko Takahashi
General Manager
Corporate Planning Headquarters
Corporate Strategy Office
TEL: +81-3-3862-3816

Notice Concerning Additional Measures to Improve Capital Efficiency
Included in the 9th Medium-Term Management Plan
Ryosan Co., Ltd. (“the Company”) announces a list of additional measures to improveits capital efficiency as described in its 9th Medium-Term Management Plan. The
announcement follows a decision made at the Board Meeting held on July 11, 2016.
Details
1. Background
The Company listed change and growth as the basic principles in its 9th Medium-Term
Management Plan. Based on these principles, the Company decided to proceed withmeasures to improve capital efficiency and re-design the road map for business growth,
as its most important business issues.
One of the core principles of the Company’s management is stable capital distribution.
Accordingly, the Company ‘aims at increasing payout ratio over 50%’ and ‘plans toimplement continuous acquiring of treasury stocks basically 1 million shares annually’.
As the result, the average dividend ratio for the last two years has risen to more than70%; this includes the commemorative dividend of 50 yen per share marking the 30thanniversary of the Company’s listing on the First Section of the Tokyo Stock Exchange.
In the 9th Medium-Term Management Plan, the Company aspires to attain 5% ROE byexpanding sales and boosting margins, following the re-design of the road map forstrategic growth. To ensure that it meets this target, and in consideration of changes in1the current business environment, the Company has decided to introduce additional
measures to enhance capital efficiency.
At the last Shareholders’ Meeting, the Company obtained approval to change to acompany with an Audit & Supervisory Committee and introduce a system of Executive
Officers. In this new structure, the Company will strengthen and optimize its
management framework in accordance with the key disciplines specified in theCorporate Governance Code. The Company will continue enhancing capital efficiency
as one of its most important management priorities and will strive to attain the newROE target of 8% for the next Medium-Term Management Plan starting from FY2018.
2. Initiatives to Boost Capital Efficiency
The Company has decided to expand measures to enhance its capital efficiency. They
consist of 1) increasing the ordinary dividend ratio, 2) issuing special dividends and 3)
expanding the stock buyback program.
1) Regular dividend: 90 yen (FY2016), 100 yen (FY2017)2) Special dividend: 50 yen or more p.a.
3) Stock buyback: 50 billion yen or more p.a.
Capital Distribution (Actual/Plan) during the 9th Mid-Term Business Plan (renewed)
FY2014FY2015FY2016FY2017（Act.）（Act.）（Plan）（Plan）
Dividend p.s.
¥90
¥140
¥140
¥150
（Regular ¥90）
（Regular ¥90）
（Regular ¥90）
（Regular ¥100）（Special ¥50）
（Special ¥50）
（Special ¥50）
Stock
¥1.3bil.
¥4.7bil.
¥7.5bil.
¥7.5bil.
Purchase（0.45 mil. shares） （1.55 mil. shares） （3 mil. shares）*（3mil. shares）** Calculated as ¥2,500 p.s.

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