May 11, 2012

Consolidated Earnings Report for Fiscal 2011, Ended March 31, 2012
Company name:Securities code:
Representative:
Inquiries:

Ryosan Company, Limited
Stock listing: First Section, Tokyo Stock Exchange
8140(URL http://www.ryosan.co.jp)
Naoto Mimatsu, President
Harumitsu Seki
Senior Managing Director and General Manager
Financing and Accounting Headquarters
TEL: +81-3-3862-2591
Scheduled date of the Annual General Meeting of Shareholders
June 22, 2012
Scheduled payment date of for fiscal year-end dividend:
June 6, 2012
Scheduled filing date of the Annual Securities Report:
June 25, 2012
(Millions of yen rounded down)

1. Consolidated results for the fiscal year ended March 31, 2012 (April 1, 2011 to March 31, 2012)(1) Consolidated operating results(% figures represent year-on-year increase or decrease)
Net sales

Operating income

Millions of yen%

Millions of yen

Ordinary income%

Net income

Millions of yen%

Millions of yen

Fiscal 2011
217,8870.8
3,511(42.2)
4,476(35.0)
Fiscal 2010
216,154
11.2
6,078
27.0
6,883
29.6
(Note) Comprehensive income
FY2011:1,812 million yen (-43.0%)
FY2010:3,181 million yen (8.1%)
Net income
Net income per
Ordinary income
Return on equity
per shareshare after dilution
to net assets
Yen

Yen

%

Fiscal 2011
55.90
－
1.6
Fiscal 2010
119.85－
3.5(Reference) Equity in earnings (losses) of non-consolidated subsidiaries and affiliates:
FY2011 － million yen,
FY2010 － million yen

%

1,899
4,130

(54.0)
44.0

Operating income
to net sales

%

%

2.7
4.2

1.6
2.8

(2) Consolidated financial position
Total assets
March 31, 2012
March 31, 2011
(Reference) Shareholders equity:
March 31, 2012:

Net assets tototal assets

Net assets

Net assets
per share

Millions of yen

Millions of yen%

Yen

167,079
163,479

115,691
117,78069.2
72.0

3,457.13
3,413.87

115,691 million yen,March 31, 2011:

117,660 million yen(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal 2011
Fiscal 2010

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at the end of the period

Millions of yen

Millions of yen

Millions of yen

Millions of yen(8,356)(7,797)

(936)
(474)

419
929

34,113
43,2392. Dividends(Record date)Fiscal 2010
Fiscal 2011
Fiscal 2012
(Forecast)End of
1Q－－－

Dividends per share (Yen)End of
End of
End of
2Q
3Q
4Q
40.00
－
40.00
20.00
－
20.00
30.00

－

30.00

Annual
80.00
40.00
60.00

(Millions of yen rounded down unless otherwise stated)
Dividends to net
Dividends
Payout ratio
assets ratio(Full fiscal year)(consolidated) %(consolidated) %
2,757
66.8
2.3
1,347
71.6
1.2
57.4

3. Forecast of results for the fiscal year ending March 31, 2013 (April 1, 2012 to March 31, 2013)(% figures for the full fiscal year represent year-on-year increase or decrease,% figures for the interim period are the increase / (decrease) for the corresponding period of the previous fiscal year)
Net Income
Net Sales
Operating Income
Ordinary Income
Net Income
per Share
Interim period
Full Fiscal Year

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

110,000
225,000

2.8
3.3

1,900
4,600

20.7
31.0

2,300
5,400

9.7
20.6

1,500
3,500

32.5
84.3

44.82
104.59※ Notes(1) Transfer of major subsidiaries during term (transfer of specified subsidiaries in line with changes in the consolidated range): No(2) Restatement of changes in accounting principles/changes and revisions in accounting estimate
1. Changes in accordance with revisions to accounting standards and related practices of accounting principles: No
2. Changes in items of accounting principles other than 1. above: No
3. Changes in accounting estimate: No
4. Restatement of revisions: No(3) Number of shares issued and outstanding (Common stock)
1. Total number of shares issued and outstanding (including treasury stock) as of the period-end:
March 31, 2012: 34,500,000 shares

March 31, 2011: 34,500,000 shares

2. Total number of treasury stock as of the period-end:
March 31, 2012: 1,035,425 shares

March 31, 2011: 34,704 shares

3. Average number of shares outstanding during the period
March 31, 2012: 33,982,029 shares

March 31, 2011: 34,465,693 shares(Reference) Overview of non-consolidated operating results
1. Non-consolidated results for the fiscal year ended March 31, 2012 (April 1, 2011 to March 31, 2012)(1) Non-consolidated operating results(% figures represent year-on-year increase or decrease)
Net sales
Millions of yen

Fiscal 2011
Fiscal 2010%

160,606
161,035

Millions of yen

(0.3)
6.2

Net income
per share
Fiscal 2011
Fiscal 2010

Operating income

Ordinary income
%

2,022
3,368

(40.0)
16.1

Millions of yen

4,649
5,239

Net income%(11.3)
11.9

Millions of yen

%

2,157
3,168

(31.9)
17.3

Net income pershare after dilution
Yen

Yen

63.49
91.94

－
－

(2) Non-consolidated financial position
Total assets

Net assets tototal assets

Net assets

Net assets
per share

Millions of yen

Millions of yen%

Yen

March 31, 2012
142,909
March 31, 2011
141,931(Reference) Shareholders equity:
March 31, 2012: 106,687 million yen,

106,687
108,26974.7
76.3

3,188.08
3,141.41

March 31, 2011:108,269 million yen

Presentation concerning implementation status of auditing procedures
Financial results for the fiscal year ending March 31, 2012 are not the subject of an auditing procedure based on the Financial
Instruments and Exchange Act, and at the point in time when these financial results were disclosed, auditing procedures for financial
statements based on the Financial Instruments and Exchange Act had not been completed.

Caution with respect to forward-looking statements:
For the outlook for the next fiscal period, please refer to “1. Results of Operations (1) Analysis of Operating Results for Fiscal 2011
(Outlook for the Next Fiscal Period)” on page 3 of this document.

○Table of contents of the appendix
1. Results of Operations ....................................................................................................................................................................... 2(1)Analysis of Operating Results for Fiscal 2011 ....................................................................................................................... 2(2)Analysis of Financial Condition ............................................................................................................................................. 4(3)Basic Policy Regarding the Allocation of Profits/Dividends for Fiscal 2011 and Fiscal 2012 ............................................... 5(4)Business Risks ....................................................................................................................................................................... 5
2. The Ryosan Group ........................................................................................................................................................................... 7
3. Management Policies ....................................................................................................................................................................... 9(1)Fundamental Management Policies........................................................................................................................................ 9(2)Targeted Management Indicators ........................................................................................................................................... 9(3)Medium - and Long-term Management Strategies ................................................................................................................. 9(4)Issues to be Addressed ........................................................................................................................................................... 10
4. Consolidated Financial Statements .................................................................................................................................................. 11(1) Consolidated Balance Sheets ................................................................................................................................................ 11(2) Consolidated Statements of Income and Consolidated Comprehensive Statements of Income ............................................ 13(Consolidated Statements of Income) ................................................................................................................................. 13(Consolidated Comprehensive Statements of Income) ....................................................................................................... 14(3)Consolidated Statements of Changes in Net Assets ............................................................................................................... 15(4)Consolidated Statements of Cash Flows ................................................................................................................................ 17(5)Notes Regarding Going Concern ........................................................................................................................................... 18(6)Changes in Accounting Procedures ........................................................................................................................................ 18(7)Changes in Disclosure Method .............................................................................................................................................. 18(8)Additional Information .......................................................................................................................................................... 18(9)Notes on Consolidated Financial Statements(Notes on Consolidated Balance Sheets) ............................................................................................................................ 19(Notes on Consolidated Statements of Income) .................................................................................................................. 19(Notes on Consolidated Comprehensive Statements of Income) ........................................................................................ 20(Segment Information)........................................................................................................................................................ 21(Tax-effect Accounting) ...................................................................................................................................................... 23(Per Share Information) ...................................................................................................................................................... 24(Important Subsequent Events) ........................................................................................................................................... 24
5. Other ................................................................................................................................................................................................ 25(1) Manufacturing, New orders and Sales ................................................................................................................................ 25(2) Geographical Segment Information .................................................................................................................................... 26(3) Changes of Directors........................................................................................................................................................... 27-1-

1. Results of Operations(1) Analysis of Operating Results for Fiscal 2011 (the Fiscal Year Ended March 31, 2012)(Operating Results for Fiscal 2011)
1) Overview
In the fiscal year ended March 31, 2012, the global economy continued to remain in a serious condition due toEuropean sovereign crisis and slowing economies in emerging countries including China, where the economy had
been moving strong. The electronics industry, in which we are engaged in, faced a severe environment including adecline in demand for semiconductors and electronic components and a slowdown of production activities caused
by impacts of a series of natural disasters.
To increase sales under such circumstances, the Ryosan Group has powerfully promoted growth strategies with
our 8th Medium-Term Management Plan; “strengthening our approach to developing countries with rapid growth(China and India)”, “strengthening our business with globalizing Japanese customers” and “strengthening ourpresence in growth fields (car electronics, social infrastructure, etc.)”, and has also strived towards “improving
profitability.”
As a result of the above, due to the contribution made by the expansion of commercial rights of the Renesas
Electronics business, the Ryosan Group reported an increase in net sales of 217,887 million yen (up 0.8 % from theprevious corresponding period) for the consolidated fiscal year under review. However, in terms of income,
operating income came to 3,511 million yen (down 42.2%), ordinary income to 4,476 million yen (down 35.0%)
due to an increase in business costs that were required in order to strengthen the Renesas Electronics businessduring its initial phase. Net income came to 1,899 million yen (down 54.0%) for results for fiscal year underreview due to an increase in tax expenses resulting from a disposal of deferred tax assets following factors
including promulgation of Revision of the Corporation Tax Act and Restoration Funding Bill.

2) Business Segment Informationa. Semiconductors
We sell memories, system LSIs and discrete semiconductors, and develop system LSIs. In this consolidated fiscal
year, sales of system LSIs for in-vehicle electrical components, etc. increased, with net sales of 132,372 million
yen (up 6.9% from the previous year), however, decreased in operating income of 2,402 million yen (down
47.6%).
b. Electronic Components
We sell display devices, power supplies and electromechanical components. In this consolidated fiscal year, salesof electromechanical components for game console, etc. decreased, with net sales of 55,403 million yen (down
7.7% from the previous year) and operating income of 1,805 million yen (down 19.7%).
c. Electronic Equipment
We sell systems equipment and facilities equipment. In this consolidated fiscal year, sales of system equipment
for in-vehicle electrical components, etc. decreased, with net sales of 24,658 million yen (down 4.6% from theprevious year) and operating income of 878 million yen (down 3.2%).
d. Ryosan Products
We produce and sell heat sinks (devices that dissipate the heat generated by semiconductors). In this consolidated
fiscal year, sales of heat sinks for flat screen TVs, etc. decreased, with net sales of 5,452 million yen (down 15.8%
from the previous year) and operating income of 220 million yen (down 54.6%).
The aforementioned amounts do not include consumption and other taxes.

-2-

(Outlook for the Next Fiscal Period)
1) Projected Operating Results
Looking ahead, the US economy is predicted to gradually head for recovery; however, the uncertainty
surrounding the global economy is most likely to remain due to factors including the Chinese economy, growing
remarkably as a major player so far, beginning to show a decline in its rate of growth, weakened European
economies with prolonged financial crisis, and sluggish Japanese economy led by the prolonged appreciation of
the yen. Against the backdrop of this forecasted operating environment, the Ryosan Group will continue topromote and pursue two key initiatives of our 8th Medium-Term Management Plan: "Construction of amanagement structure strong enough to survive in the global age" and "Exploitation of emerging markets to
support future growth."
On this basis, operating forecasts for the fiscal year ending March 31, 2013 are as follows:

Net sales
Operating income
Ordinary income
Net income

Millions of yen
225,000
4,600
5,400
3,500

YoY change [%]Increase 3.3
Increase 31.0
Increase 20.6
Increase 84.3

2) Projected Operating Results by Business Segment
a. Semiconductors
In the Semiconductors segment, Ryosan is projecting increased sales of system LSIs for in-vehicle electricalcomponents and digital cameras, etc. Sales in this segment are expected to come to 137,000 million yen (up3.5% from the previous year), with an expected operating income of 3,700 million yen (up 54.0%).
b. Electronic Components
In the Electronic Components segment, Ryosan is projecting increased sales of display devices for digital
cameras and electromechanical components for game console, etc. Sales in this segment are expected to come to56,500 million yen (up 2.0% from the previous year), with an expected operating income of 2,000 million yen(up 10.8%).
c. Electronic Equipment
In the Electronic Equipment segment, Ryosan is projecting increased sales of system equipment for tablet PCs,etc. Sales in this segment are expected to come to 25,500 million yen (up 3.4% from the previous year), with an
expected operating income of 900 million yen (up 2.5%).
d. Ryosan Products
Increased sales of heat sinks for FA equipment, etc, are projected in the Ryosan Products segment. As a result,segment sales are expected to come to 6,000 million yen (up 10.1% from the previous year), with an expected
operating income of 500 million yen (up 127.3%).
* The aforementioned forecasts are subjected to certain risks and uncertainties. Accordingly, actual results may
differ materially from forecasts for a variety of factors.
* Principal among these factors is the following:- Economic trends in the Ryosan Group’s major markets (Japan, Asia and other markets); rapid changes in
consumer trends and sudden shifts in supply and demand dynamics- Significant fluctuations in the dollar/yen exchange rate
- Major shifts in capital markets.

-3-(2) Analysis of Financial Condition(Analysis of Assets, Liabilities, Net Assets and Cash Flows)
1) Status of Assets, Liabilities and Net Assets as of March 31, 2012
a. Assets
Total assets as of March 31, 2012 stood at 167,079 million yen, an increase of 3,599 million yen compared withthe end of the previous fiscal year. This was mainly due to a decrease of 9,126 million yen in cash and deposits,
but an increase of 12,413 million yen in trade notes and accounts receivable.
b. Liabilities
Total liabilities increased by 5,689 million yen compared with March 31, 2011 to reach 51,388 million yen. Thiswas primarily attributable to short-term loans payable in foreign currency increasing by 4,229 million yen etc.
c. Net Assets
Net assets decreased by 2,089 million yen compared with March 31, 2011 to reach 115,691 million yen. This was
mainly due to acquisition of treasury stock of 1,720 million yen. The ratio of net assets to total assets fell from
72.0% at the end of the previous fiscal year to 69.2% as of March 31, 2012.

2) Status of Cash Flows
Cash and cash equivalents as of March 31, 2012 stood at 34,113 million yen; a decrease of 9,126 million yen
compared with the end of the previous fiscal year.
a. Cash Flows from Operating Activities
Regarding cash flow from operating activities in this consolidated fiscal year, however net income before income
taxes being 4,321 million yen, funds in total decreased by 8,356 million yen. This is due to accounts payable andinventories increasing by 12,427 million yen and 1,683 million yen respectively. Net cash provided by operating
activities in the previous consolidated fiscal year was 7,797 million yen in outlays.
b. Cash Flows from Investing Activities
Net cash used by investing activities resulted in a total of 936 million yen in outlays due to outflows of 169 million
yen for purchases of property, plant, and equipment and 332 million yen for purchases of intangible fixed assets,
and additionally, of 303 million yen for a purchase of insurance funds. Net cash used in investing activities in theprevious consolidated fiscal year was 474 million yen in outlays.
c. Cash Flows from Financing Activities
Regarding cash flow from financing activities in this consolidated fiscal year, however dividend paid andacquisition of treasury stock being 2,056 million yen and 1,720 million yen respectively, funds increased by 419
million yen due to an increase in short-term loans in foreign currency of 4,319 million yen etc. Net cash used infinancing activities in the previous consolidated fiscal year resulted in positive 929 million yen.

-4-

(Reference) Trends in cash flow-related indicators
Fiscal 2007
Net assets to total assets (%)
Net assets to total assets (%)(Market capitalization basis)
Cash flow to Interest-bearing
Liabilities (Years)
Interest coverage ratio (Times)

Fiscal 2008

Fiscal 2009

Fiscal 2010

Fiscal 2011

68.3

78.1

72.5

72.0

69.2

48.0

47.4

50.8

42.2

33.3

0.5

0.3

0.9

_

_

37.4

107.3

101.4

_

_

Net assets to total assets: Net assets / Total assets
Net assets to total assets (Market capitalization basis): Market capitalization / Total assets
Cash flow to Interest-bearing liabilities: Interest-bearing liabilities / Cash flow
Interest coverage ratio: Cash flow / Interest expense*All indicators have been calculated from consolidated financial figures.
*Market capitalization was calculated based on the number of shares issued and outstanding less treasury stock.
*Cash flow refers to cash flows from operating activities as shown on the consolidated statements of cash flows.
Interest-bearing liabilities comprise all debt on which interest was paid in the liabilities section of the consolidatedbalance sheets. Interest expense represents interest paid as shown on the consolidated statements of cash flows.

(3) Basic Policy Regarding the Allocation of Profits / Dividends for Fiscal 2011 and Fiscal 2012
【Basic Policy Regarding the Allocation of Profits】
Ryosan recognizes that the return of profits to shareholders is an important business priority. At the same time, theCompany works to increase consolidated basic net income per share. Accordingly, Ryosan’s fundamental policy is
to continue high dividend payout in profits returned to shareholders, and the Company is targeting a consolidated
dividend payout ratio of 50% or more. With regard to purchasing of own shares, the Company plans to makedecisions in an integrated manner, with consideration given to trends in consolidated results and other matters.
【Dividends for Fiscal 2011 and Fiscal 2012】
For the fiscal year ended March 31, 2012, Ryosan has declared a fiscal year-end ordinary dividend of ¥20 per share.
Together with the interim ordinary dividend, the Company will pay an ordinary dividend payment for the full fiscal
year of ¥40 per share.
Given its anticipation of a recovery in consolidated earnings, Ryosan is forecasting an increase in its full fiscal year
ordinary dividend payment to ¥60 per share for the fiscal year ending March 31, 2013. Ryosan is anticipating thepayment of an interim ordinary dividend for fiscal 2012 of ¥30 per share, as well as fiscal year-end ordinary
dividend payment of ¥30 per share.

(4) Business Risks
The Ryosan Group, its performance, share price, and financial position, are subject to a variety of potential risks,some of which are detailed briefly as follows.
Forward-looking statements contained in this section represent judgments of Ryosan Group’s management based on
information available as of the end of fiscal 2011 (March 31, 2012).

1) Sudden Changes in the Economic Environment
The Ryosan Group’s consolidated revenues are derived from the level of demand generated by customers of device
manufacturers. Against this backdrop, the Group’s performance is necessarily impacted by changes in economic
conditions in those countries and regions in which Ryosan’s principal clients operate. As a result, Ryosan’s performanceand its financial position can be expected to deteriorate in the event of economic downturn and a resulting slowdown indemand in its principal markets, such as Japan, Asia and other regions.

-5-2) Contracts with Suppliers
The Ryosan Group has concluded agency agreements with several suppliers inside and outside Japan. We havemaintained good business relations with them, but if it becomes difficult to continue these agreements due to therestructuring of suppliers’ businesses, including M&A etc, and the revision of sales channel strategies, this may cause
adverse effects on the business performance and financial status of Ryosan Group.

3) Exchange Rate Fluctuation
The Ryosan Group engages in the manufacture and sale of products across a number of regions including Japan, Asia andother countries. In preparing consolidated financial statements, sales, expenses, assets and liabilities, denominated inforeign currencies are translated into yen as of the Company’s balance sheet date. In principle, appreciation of the yen
against major currencies impacts negatively on Ryosan’s performance, while a weak yen impacts favorably. As a result,
Ryosan’s consolidated operating results and financial position are subject to fluctuations in foreign exchange rates.

4) Overseas Business Risk
The Ryosan Group does not operate in Japan alone. It also operates overseas, mainly in Asia. As a result it is exposed to
the following risks. The materialization of any of the following risks could adversely affect the Ryosan Group’s operating
results and its financial position.
a. Unforeseen changes in statutory and regulatory requirements and adverse changes in tax requirementsb. Inadequate and insufficient local infrastructure in the countries in which the Ryosan Group operatesc. Development of adverse political factors
d. Social unrest arising out of war, acts of terrorism and other developments5) Capital Market Volatility
As a part of its business activities the Ryosan Group holds shares in certain financial institutions, customers and suppliers,
and is therefore susceptible to stock price fluctuations. Ryosan does not, however, adopt specific methods as a hedge
against movements in stock prices. Accordingly, Ryosan’s performance and financial position are subject to substantialchanges in stock markets.

6) Liability for Retirement Benefits
Ryosan accounts for retirement benefit expenses and the liability for retirement benefits using certain assumptions andan expected rate of return applicable to the Group’s pension plan assets for actuarial projections. In the event that theactual obligation differs from the projected obligation or there is a change in the assumptions leading to the calculationof the projected obligation, the difference in retirement benefit expenses and the liability for retirement benefits are
accrued and amortized over a generally accepted period. As a result, any significant decline in the discount rate andexpected rate of return applicable to the Group’s pension plan assets can impact its performance and financial position.

7) Natural Disaster
The suspension of sales and production due to facility damage or power or water supply shortages caused by suchnatural disasters as earthquakes or typhoons or accidental disasters such as fire may adversely affect the businessshowings and financial standings of the Group. Also, if partners are damaged and the purchase and sale of merchandise
is interrupted, the business showings of the Group may be adversely affected.

-6-2. The Ryosan GroupThe Ryosan Group comprises Ryosan Company, Limited (“Ryosan” or “the Company”), 12 consolidated subsidiaries
and 8 non-consolidated subsidiaries.
Ryosan operates as a trading house that specializes in semiconductors, electronic components and electronicequipment, which it sells to manufacturers of electronic equipment and other customers both domestically andoverseas. Ryosan also develops, manufactures and sells its own-brand products.
The following table provides an overview of industry segments and the activities of Ryosan and its
consolidated subsidiaries.
Development andSegment
Main Products
Sales Companies
Manufacturing Companies
Ryosan Company, Limited
Memories
System LSIs
CentrAct Corporation
Semiconductors
Discretesemiconductors
Saxis Company, Limited

Electronic
Components

Display devices
Power supplies
Electromechanicalcomponents

Electronic
Equipment

Systems equipment
Facilities equipment

Gyronics Company, Limited
HONG KONG RYOSAN
LIMITEDSINGAPORE RYOSANPRIVATE LIMITEDRYOTAI CORPORATIONRYOSAN IPC (MALAYSIA)
SDN. BHD.
KOREA RYOSANCORPORATION

Ryosan Products

Ryosan Company, Limited

Heat sinks(devices that dissipate
ZHONG LING
the heat generated by INTERNATIONAL TRADING
semiconductors)(SHANGHAI) CO., LTD.

RYOSAN ENGINEERING(M) SDN.BHD.
RYOSAN ENGINEERING(THAILAND) CO., LTD.

RYOSAN (THAILAND)
CO., LTD.

Information about Ryosan’s principal non-consolidated subsidiaries is as follows:(Non-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 Sales of semiconductors and electronic components
CO., LTD.
Commission sales of semiconductors and electronic
SHEN LING ELECTRONICS (SHENZHEN) CO., LTD.
components
RYOSAN EUROPE GMBH

Sales of semiconductors and electronic components

RYOSAN ELECTRONICS (FOSHAN) CO., LTD.

Manufacture and sales of heat sinks-7-

The Group’s organization chart is provided as follows
Sale

Sale

※RYOSAN ELECTRONICS(FOSHAN) CO., LTD
Provision of Finished Products

Provision of
Merchandise

HONG KONG RYOSAN
LIMITED

Sale

Provision of
Merchandise
Provision of
Merchandise
Provision ofservices
CentrAct Corporation

Intermediarysales

Provision of
MerchandiseIntermediarysales
Gyronics Company, Limited

Provision ofservices※EC RYOSAN COMPANY,
LIMITEDIntermediarysalesIntermediarysales

Provision of
Merchandise

Provision of
Merchandise
Provision of
MerchandiseSale※DALIAN F.T.Z RYOSANSale

INTERNATIONAL TRADING
CO., LTD.

※SHEN LING
ELECTRONICS (SHENZHEN)
CO., LTD.

Provisionof services

Provisionof services
KOREA RYOSANCORPORATIONRYOTAI CORPORATION

Sale

Sale

RYOSAN (THAILAND)
CO., LTD.

Sale

SINGAPORE RYOSANPRIVATE LIMITED

Sale

Overseas Customers

Customers in Japan

Provision ofservices

Intermediary sales

Saxis Company, Limited

Intermediary sales

Intermediarysales

RYOSAN COMPANY, LIMITED

Provision ofservices

ZHONG LING
INTERNATIONAL TRADING(SHANGHAI) CO., LTD.

Provision of
Finished Products
Provision of
Merchandise
Provision of
MerchandiseRYOSAN ENGINEERING(THAILAND)CO.,LTD.

SaleRYOSAN IPC(MALAYSIA)
SDN. BHD.

Sale

Provision of
Finished Products
RYOSAN ENGINEERING(M) SDN. BHD.
Provision of
Merchandise※RYOSAN TECHNOLOGIESUSA INC.

Sale

Sale
※RYOSAN EUROPE GMBH

Note: Companies identified with an asterisk are non-consolidated subsidiaries not accounted for by the equity method.
All other companies are consolidated subsidiaries.
-8-3. Management Policies(1) Fundamental Management Policies
Since our establishment, we have always been highly conscious of the fact that the corporation is a public
institution. In addition, we now no longer see ourselves simply as a trading company, but as an electronic systems
coordinator, providing a vital link between our customers’ needs and electronics technology. We aim to achieve
consistent long-term growth by stressing this social consciousness and our new role as a systems coordinator.
Three functions are vital to fulfilling our ambition of becoming an electronics system coordinator—the Information
Function (supplying data), the Solutions Function (supplying technology), and the Distribution Function (supplying
logistics). By constantly enhancing these three functions, Ryosan will raise customer satisfaction and increase its
existence value.

(2) Targeted Management Indicators
The Ryosan Group has adopted net income per share and consolidated dividend payout ratio as key management
indicators. Guided by these benchmarks, the Company aims to secure financial soundness while at the same time
pursuing further improvements in its corporate value.
In line with our 8th Medium-Term Management Plan, which covers the period from fiscal 2011 through to fiscal
2013, the Company aims to improve net income per share and has set itself the target of securing “consolidated
dividend payout ratio of more than 50%”, “dividend on equity (DOE) of more than 2.5% (fiscal 2013)”.

(3) Medium- and Long-Term Management Strategies
The Ryosan Group is confronted with an operating environment characterized by increasingly intense globalization
and rapid change. Against this backdrop, demands for the corporate sector to more adequately fulfill their corporatesocial responsibility (CSR) have also risen.
Under these circumstances, the Ryosan Group formulated its 8th Medium-Term Management Plan, which covered
the period from fiscal 2011 through to fiscal 2013. In line with its ongoing “Basic Stance,” Ryosan continues tofocus on the acceptance and evolution of global diversity as well as the pursuit of sound management under thegrowing uncertainty of the corporate environment.
To implement this basic stance, we will powerfully promote three kinds of basic strategies - Growth Strategies,
Segment Strategies, and Infrastructure Strategies. The basic strategies are outlined below.
1. Growth Strategies
 Strengthening approach to developing countries of quick growth (China and India) Strengthening dealing with globalizing Japanese customers
 Strengthening exploitation in growing fields (car electronics, social infrastructure, etc.)
We will be committed to these three growth strategies.
2. Segment Strategies
 Strategy for semiconductor business Strategy for electronic components business Strategy for electronic equipment business Strategy for Ryosan Products businessWe will strengthen these four segment strategies in terms of quality.
3. Infrastructure Strategies
 Strengthening business infrastructure (organization and system)
 Strengthening the cultivation of human resources Implementing financial strategies aimed to improve corporate value Improving information system Reinforcing management in terms of quality
 Strengthening Ryosan (RS) Culture
We will be committed to these six infrastructure strategies.
-9-(4) Issues to be Addressed
In the electronics industry, in which we are engaged, along with worldwide structural changes in economies andindustries under way, a global competition has been intensified. Under such circumstances, the industry is actively
reorganizing itself through movements including capital and business alliance as a matter of business survival andwithdrawals from unprofitable businesses.
Under this environment, the Ryosan Group intends to take seriously the changes in business structures of each of
our suppliers and clients and to quickly respond to those changes. In order for that, we understand that our urgent
tasks include further promoting our long-held “Global Sales Network” and “Technical Support System” as well asworking through “Renovation of Management Structure” and accomplishing “Improvement of Profit Structure andFinancial Strength”.
The environment and market structure surrounding Ryosan Group has changed significantly due to the rise of
emerging countries, including China. In response to this situation, the Company recognizes that in addition toaccelerating overseas business with the Japanese companies that form the core of our business, it must alsosignificantly increase our business with foreign companies. To this end, Ryosan intends to pursue an expansion ofoverseas business by building new sales bases in Germany and India while re-constructing sales bases in China.
In addition, in order to further strengthen our corporate governance, we intend to appoint directors from outside ofour company and renovate our management structure.
In any case, the Ryosan Group is committed to firmly raising its presence and value by overcoming these challenges
and to ensure that the Group generates performance improvements that accurately reflect this value. In this manner,
Ryosan places the utmost importance on addressing the expectations and needs of all stakeholders including
shareholders.

- 10 -

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
Fiscal Year Ended
March 31, 2011
(As of March 31, 2011)

Fiscal Year Ended
March 31, 2012
(As of March 31, 2012)ASSETS
Current assets
Cash and deposits

43,24034,114

Trade notes and accounts receivable

68,70981,123Merchandise and finished products

22,60924,308Work in process

129

147

Raw materials and stored goods

224

177

Accrued income

4,483

2,989

Deferred tax assets

400

276

Other current assets

288

1,109

Allowance for doubtful accounts

(63)

(93)

140,021

144,153

Buildings and structures

10,752

10,715

Accumulated depreciation(6,106)(6,253)

Buildings and structures (net)

4,645

4,461

Land

8,126

8,121

Lease assets

615

603

Accumulated depreciation

(359)

(381)

Lease assets (net)

255

221

Other fixed assets

4,357

4,393

Accumulated depreciation(3,702)(3,872)654

520

13,682

13,325701

930

Investment securities

3,156

3,084

Long-term deposits

3,000

3,000

Deferred tax assets

1,571

958

Other

2,447

2,719

Allowance for doubtful accounts

(975)

(957)

Allowance for loss on investments

(127)

(136)

Total Investments and other assets

9,072

8,669

23,45722,925

163,479

167,079

Total current assets
Fixed assets
Property, plant and equipment

Other fixed assets (net)Total property, plant and equipment
Intangible fixed assets
Investments and other assets

Total fixed assets
Total assets- 11 -

(Millions of yen)
Fiscal Year Ended
March 31, 2011
(As of March 31, 2011)

Fiscal Year Ended
March 31, 2012
(As of March 31, 2012)

LIABILITIESCurrent liabilities
Trade accounts payable

31,21933,549

Short-term bank loans

7,621

11,850

Lease obligations

116

112

Other Payable

1,637

1,761

995

1,091

Accrued income taxes

1,402

338

Other current liabilities

107

193

Total current liabilities

43,10048,896

194

155

2,327

2,275

Other long-term liabilities

76

60

Total long-term liabilities

2,597

2,491

45,69851,388

Common stock

17,69017,690Additional paid-in capital

19,114

19,114Retained earnings

83,606

83,449Treasury stock(85)(1,806)

120,325

118,447

Net unrealized gain on other marketable securities

295

331

Gain (loss) on deferred hedges(6)2Foreign currency translation adjustments(2,954)(3,090)Total other accumulated comprehensive incomes(2,665)(2,756)120－

Total net assets

117,780

115,691

Total liabilities and net assets

163,479

167,079

Accrued expenses

Long-term liabilities
Lease obligations
Employees’ retirement benefits

Total liabilities
NET ASSETS
Shareholder’s equity

Total shareholders’ equity
Other accumulated comprehensive incomes

Minority interests- 12 -

(2) Consolidated Statements of Income and Consolidated Comprehensive Statements of Income(Consolidated Statements of Income)(Millions of yen)

Net sales
Cost of Sales
Gross Profit
Selling, general and administrative expenses
Packing and freight expenses
Provision of allowance for doubtful accounts
Directors’ remuneration
Employees’ salaries
Bonuses
Retirement benefit expenses
Employee benefits
Depreciation and amortization
OthersTotal selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Gain on foreign exchange
Commission fee
Proceeds from transfer of goodwill
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expense
Loss on foreign exchange
Compensational expenses
Miscellaneous expenses
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of property, plant and equipment
Gain on reversal of allowance for doubtful accounts
Total extraordinary gains
Extraordinary losses
Loss on sales and disposal of property, plant and equipment
Impairment loss
Loss on devaluation of investment securities
Provision of allowance for investment loss
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before Minority interest in income
Minority interests in income
Net income- 13 -

Fiscal Year Ended Mar. 31, 2011
(Apr. 1, 2010 to Mar. 31, 2011)

Fiscal Year Ended Mar. 31, 2012
(Apr. 1, 2011 to Mar. 31, 2012)

216,154
197,125
19,028217,887
201,117
16,769

686
－
518
3,490
1,141
386
760
676
5,287
12,949
6,078

717
11
437
3,821
1,006
432
834
542
5,453
13,258
3,511

107
153
150
－
219
318
949

93
274
－
549
－
241
1,159

88
－
39
17
145
6,883

168
8
－
17
194
4,476

1
162
164

－
－
－

7
11
81
37
138
6,909
2,502
268
2,771
4,137
6
4,130

7
－
138
9
155
4,321
1,663
755
2,419
1,902
2
1,899

(Consolidated Comprehensive Statements of Income)(Millions of yen)

Income before Minority interest in income
Other comprehensive income
Net unrealized gain on other marketable securities
Gain (loss) on deferred hedges
Foreign currency translation adjustments
Total other comprehensive income
Comprehensive Incomes(Details)
Comprehensive incomes relating to shareholders of parental company
Comprehensive incomes relating to minority shareholders- 14 -

Fiscal Year Ended Mar. 31, 2011
(Apr. 1, 2010 to Mar. 31, 2011)

Fiscal Year Ended Mar. 31, 2012
(Apr. 1, 2011 to Mar. 31, 2012)

4,137

1,902

(143)
(13)
(798)

35
9
(133)

(955)
3,181

(89)
1,812

3,178
2

1,808
4

(3) Consolidated Statements of Changes in Net Assets(Millions of yen)

Shareholders’ equity
Common stock
Balance as of the end of the previous period
Increase (decrease) during the period
Total increase (decrease) during the period
Balance as of the end of the period
Additional paid-in capital
Balance as of the beginning of the period
Increase (decrease) during the period
Disposal of treasury stock
Transfer to additional paid-in capital from retained earnings
Total increase (decrease) during the period
Balance as of the end of the period
Retained earnings
Balance as of the beginning of the period
Increase (decrease) during the period
Appropriation of earnings as cash dividends
Net income for the period
Change of scope of consolidation
Transfer to additional paid-in capital from retained earnings
Total increase (decrease) during the period
Balance as of the end of the period
Treasury stock
Balance as of the beginning of the period
Increase (decrease) during the period
Acquisition of treasury stock
Disposal of treasury stock
Total increase (decrease) during the period
Balance as of the end of the period
Total shareholders’ equity
Balance as of the beginning of the period
Increase (decrease) during the period
Appropriation of earnings as cash dividends
Net income for the period
Acquisition of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Transfer to additional paid-in capital from retained earnings
Total increase (decrease) during the period
Balance as of the end of the period- 15 -

Fiscal Year Ended Mar. 31, 2011
(Apr. 1, 2010 to Mar. 31, 2011)

Fiscal Year Ended Mar. 31, 2012
(Apr. 1, 2011 to Mar. 31, 2012)

17,69017,690－17,690－17,69019,114

19,114(0)
0－
19,114－－－
19,114

82,136

83,606(2,757)
4,130
96
(0)
1,469

(2,056)
1,899
－
－
(157)

83,606

83,449

(83)

(85)

(1)
0
(1)

(1,720)－(1,720)(85)(1,806)

118,857

120,325(2,757)
4,130
(1)
0
96
－
1,468

(2,056)
1,899(1,720)－－－(1,878)120,325

118,447

(Millions of yen)

Other accumulated comprehensive incomes
Net unrealized gain on other marketable securities
Balance as of the beginning of the period
Increase (decrease) during the period
Net changes in items excluding shareholders’ equity
during the period
Total increase (decrease) during the period
Balance as of the end of the period
Gain (loss) on deferred hedges
Balance as of the beginning of the period
Increase (decrease) during the period
Net changes in items excluding shareholders’ equity
during the period
Total increase (decrease) during the period
Balance as of the end of the period
Foreign currency translation adjustments
Balance as of the beginning of the period
Increase (decrease) during the period
Net changes in items excluding shareholders’ equity
during the period
Total increase (decrease) during the period
Balance as of the end of the period
Total other accumulated comprehensive incomes
Balance as of the beginning of the period
Increase (decrease) during the period
Net changes in items excluding shareholders’ equity
during the period
Total increase (decrease) during the period
Balance as of the end of the period
Minority interests
Balance as of the beginning of the period
Increase (decrease) during the period
Purchase of shares of consolidated subsidiaries
Net changes in items excluding shareholders’ equity during
the period
Total increase (decrease) during the period
Balance as of the end of the period
Total net assets
Balance as of the beginning of the period
Increase (decrease) during the period
Appropriation of earnings as cash dividends
Net income for the period
Acquisition of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Purchase of shares of consolidated subsidiaries
Transfer to additional paid-in capital from retained earnings
Net changes in items excluding shareholders’ equity during
the period
Increase (decrease) during the period
Balance as of the end of the previous period- 16 -

Fiscal Year Ended Mar. 31, 2011
(Apr. 1, 2010 to Mar. 31, 2011)

Fiscal Year Ended Mar. 31, 2012
(Apr. 1, 2011 to Mar. 31, 2012)

439

295

(143)

35

(143)

35

295

331

7

(6)

(13)

9

(13)

9

(6)

2

(2,160)(2,954)

(794)

(135)

(794)

(135)

(2,954)(3,090)(1,713)(2,665)

(951)

(90)

(951)
(2,665)(90)(2,756)

120

120

－

(103)

0

(17)

0
120

(120)
－

117,263

117,780(2,757)
4,130
(1)
0
96
－
－

(2,056)
1,899(1,720)
－
－
(103)
－

(951)

(107)

517
117,780(2,089)115,691

(4) Consolidated Statements of Cash Flows(Millions of yen)

Operating activities
Income before income taxes
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in employees’ retirement benefits
Increase (decrease) in allowance for loss on investments
Interest and dividend income
Interest expense(Gain) loss on sales and disposal of property, plant and equipment(Gain) loss on devaluation of investment securities
Other income (loss)(Increase) decrease in accounts receivable(Increase) decrease in inventories
Increase (decrease) in accounts payable
Increase (decrease) in other assets and liabilities
SubtotalInterest and dividends received
Interest paid
Income taxes (paid) refund
Net cash provided by operating activities
Investing activities
Net decrease (increase) in time deposits
Purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchases of intangible fixed assets
Purchases of investment securities
Proceeds of sale of investment securities
Purchase of affiliate company shares
Capital stock paid-in
Increase in loans
Proceeds from collection of loans
Purchase of insurance funds
Proceeds from cancellation of insurance funds
Net cash used in investing activities
Financing activities
Increase (decrease) in short-term borrowings, net
Payment of refund of lease obligations
Repurchase of treasury stock
Proceeds from retirement of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders

Fiscal Year Ended Mar. 31, 2011
(Apr. 1, 2010 to Mar. 31, 2011)

Fiscal Year Ended Mar. 31, 2012
(Apr. 1, 2011 to Mar. 31, 2012)

6,909
827
11
(167)
93
37
(260)
88
6
81
(538)
(1,448)(8,345)(2,370)(595)(5,673)

4,321
680
－
11
(57)
9
(368)
168
7
138
(9)
(12,427)(1,683)2,417
940(5,849)263(83)(2,303)368(169)(2,705)(7,797)(8,356)

－
(255)
9
(223)
－
－
－
(5)
(1)
2
－
－
(474)

(0)
(169)
10
(332)
(57)
6
(115)
(53)
(25)
3
(303)
100

3,780
(90)
(1)
0
(2,757)
(2)

4,319
(115)
(1,720)－(2,056)
(6)

929

419

(936)

Net cash used in financing activities
Effect of foreign currency translation adjustments on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

(291)

(253)

(7,633)(9,126)

Cash and cash equivalents at the beginning of the period
Increase in cash and cash equivalents from newly consolidated subsidiary
Cash and cash equivalents at the end of the period

50,458414
43,23943,239－34,113- 17 -

(5) Notes Regarding Going Concern
Not applicable.

(6) Changes in Accounting Procedures
Not applicable.

(7) Changes in Disclosure Method(Notes on Consolidated Balance Sheets)
Changes in Presentation of Income Tax Refund Receivable“Income Tax Refund Receivable” individually listed in the previous consolidated fiscal year is included in “Accrued
Income” under Current Assets in the consolidated fiscal year under review due to its low significance in volume.
To reflect this change, the consolidated balance sheet for the previous consolidated fiscal year has been modified forrecycling.
As a result, 10 million yen in “Income Tax Refund Receivable” listed in the consolidated balance sheet for theprevious consolidated fiscal year is included in “Accrued Income”.
For the consolidated fiscal year under review, “Income Tax Refund Receivable” is 13 million yen.
Changes in Presentation of “Other Payable”“Other Payable” was previously included in “Other Current Liabilities” under Current Liabilities in consolidatedbalance sheets. Due to a growing significance in volume, we decided to individually list it under “Other Payable”
from the consolidated fiscal year under review.
To reflect this change, the consolidated balance sheet for the previous consolidated fiscal year has been modified forrecycling.
As a result, 1,745 million yen listed in “Other Current Liabilities” under Current Liabilities in the consolidatedbalance sheet for the previous consolidated fiscal year are listed as “Other Payable” of 1,637 million yen and “Other
Current Liabilities” of 107 million yen.

(8) Additional Information
For the accounting changes and error corrections implemented after the start of the consolidated fiscal year underreview, the Accounting Standard for Accounting Changes and Error Corrections (ASBJ Accounting Standard No. 24,
December 4, 2009) and the Accounting Standard for Changes and Error Corrections and its Implementation
Guidance (ASBJ Accounting Standard No. 24, December 4, 2009) have been applied.

- 18 -

(9) Notes on Consolidated Financial Statements(Millions of yen, figures less than ¥1 million have been omitted, unless otherwise stated)(Notes on Consolidated Balance Sheets)
As of March 31, 2011
1.

Accumulated depreciation of tangible fixed assets

2.

3.

4.

5.

As of March 31, 2012

10,16910,507

Non-consolidated subsidiary and affiliated company
shares and other- Investment securities (shares)- Other (equity)

52
255

52
308

Assets pledged as collateral- Investment securities

61

58

146

207

34,500,000 common shares
34,704 common shares

34,500,000 common shares
1,035,425 common shares

Guarantee contingent liabilities
The unpaid balance of debt financing provided to
non-consolidated subsidiaries by financial institutions
guaranteed by the Company
Number of shares issued and outstanding
Number of treasury stock held by the Company(Notes on Consolidated Statements of Income)Fiscal 2010

Fiscal 2011

(April 1, 2010 to March 31, 2011)(April 1, 2011 to March 31, 2012)

615

498

1.

Research and development expenditure included inselling, general and administrative expenses

2.

Breakdown of gain on sales of property, plant andequipment- Other

1－

Breakdown of loss on sales an disposal of property, plantand equipment- Loss on disposal of buildings and structures- Other

0
7

2
5

Total

7

7

3.

- 19 -

(Notes on Consolidated Comprehensive Statements of Income)Fiscal 2011 (April 1, 2011 to March 31, 2012)
Adjustments from recycling and tax effects in Other
Comprehensive Income
Increase (decrease) during the period
Adjustments from recycling(122) million yen
138 million yen

Before tax effects adjustments
Tax effect15 million yen
19 million yen

Net unrealized gain on other marketable securities

35 million yen

Gain (loss) on deferred hedges
Increase (decrease) during the period

9 million yen

Foreign currency translation adjustments
Increase (decrease) during the period(133) million yen

Total other comprehensive Income(89) million yen- 20 -

(Segment Information)
1. Overview of our Reporting Segments
Ryosan Group’s reporting segments are created from financial information sorted by business segment, and the Chief
Executive Officer periodically conducts performance evaluations.
Ryosan Group has set up business headquarters at our head office for each merchandises and products, and we expand
our business activities by having each business headquarter formulates comprehensive strategies for the products thatthey handle, for both within Japan and overseas.
Therefore, with our business headquarters serving as our foundation, Ryosan Group has four reporting segments:“Semiconductors”, “Electronic components”, “Electronic equipment” and “Ryosan products”.
Main products of each business segment are as follows:
Semiconductors:
Memories, system LSIs, discrete semiconductors
Electronic components:
Display devices, power supplies, electromechanical components
Electronic equipment:
Systems equipment, facilities equipment
Ryosan products:
Heat sinks (devices that dissipate the heat generated by semiconductors)
2. Information Concerning Sales and Income or Loss Amount by Reporting Segment
For the consolidated fiscal year ended March 31, 2011
(April 1, 2010 to March 31, 2011)(Millions of yen, figures less than ¥1 million have been omitted)

Reportable Segment
Adjusted
amountConsolidated
incomestatement
amountSemiconductors

Electronic
components

Electronicequipment

Ryosanproducts

Total

123,786

60,03425,8596,474

216,154―

216,154

―

―

―

―

―

―

―

123,786
4,589

60,034
2,246

25,859
907

6,474
486

216,1548,229―(2,150)216,154
6,078

Sales and operating income
Sales:
Sales to external
Customers
Internal sales between
segments, or exchange
Total
Segment income (loss)(Notes)1. The adjustment of -2,150 million yen to segment earnings represents corporate expenses that are not allocated to eachreportable segment.
2. Segment income has been adjusted with operating income in consolidated statements of income.
3. Segment asset is not shown in this reporting segment as it is not subject to CEO’s performance evaluation.
For the consolidated fiscal year ended March 31, 2012
(April 1, 2011 to March 31, 2012)(Millions of yen, figures less than ¥1 million have been omitted)

Reportable Segment
Adjusted
amountConsolidated
incomestatement
amountSemiconductors

Electronic
components

Electronicequipment

Ryosanproducts

Total

132,372

55,40324,6585,452

217,887―

217,887

―

―

―

―

―

―

―

132,372
2,402

55,403
1,805

24,658
878

5,452
220

217,887
5,306―(1,795)

217,887
3,511

Sales and operating income
Sales:
Sales to external
Customers
Internal sales between
segments, or exchange
Total
Segment income (loss)(Notes)1. The adjustment of -1,795 million yen to segment earnings represents corporate expenses that are not allocated to eachreportable segment.
2. Segment income has been adjusted with operating income in consolidated statements of income.
3. Segment asset is not shown in this reporting segment as it is not subject to CEO’s performance evaluation.

- 21 -

[Related Information]
For the consolidated fiscal year ended March 31, 2011
(April 1, 2010 to March 31, 2011)
1. Information on Products and Services
As in the Reporting Segment

2. Information by region(Sales)(Millions of yen)

Japan
Asia
Total
142,332
73,821
216,154(Note) Sales amounts are based on the customer’s address and classified by country or region.
(Property, plant and equipment)(Millions of yen)

Japan

Asia
13,302

Total
13,682379

3. Information on each important customer
Among the sales to the external customers, there are no sales to the specific customers that constitute more than 10% of
the sales in the consolidated statements of income. Therefore, this information is not presented.
For the consolidated fiscal year ended March 31, 2012
(April 1, 2011 to March 31, 2012)
1. Information on Products and Services
As in the Reporting Segment

2. Information by region(Sales)(Millions of yen)

Japan
Asia
Total
149,265
68,621
217,887(Note) Sales amounts are based on the customer’s address and classified by country or region.
(Property, plant and equipment)(Millions of yen)

Japan

Asia
12,951

Total
13,325374

3. Information on each important customer(Millions of yen)

Customer Name
Mitsubishi Electric Corporation

Net Sales
31,303- 22 -

Related Segments
Semiconductors, Electronic
Components

(Tax-effect Accounting)
1. Breakdown of major causes of occurrence in deferred tax assets and deferred tax liabilities

Fiscal 2010

（Millions of yen unless otherwise stated)
Fiscal 2011

(Apr. 1, 2010 to Mar. 31, 2011)(Apr. 1, 2011 to Mar. 31, 2012)

Sub-total deferred tax assets
Valuation reserve
Total deferred tax assets

79
265
274
126
213
940
204
159
307
2,572
(394)
2,177

71
98
174
110
209
743
467
238
271
2,385
(966)
1,418

(Deferred tax liabilities)
Net unrealized gain on other marketable securities
OthersTotal deferred tax liabilities
Total

(141)
(83)
(224)
1,953

(109)
(91)
(201)
1,217

(Deferred tax assets)
Loss on valuation of inventories
Amount exceeded amortization of software and other
Investment securities
Golf membership rights
Accrued bonuses
Employees’ retirement benefits
Allowance for doubtful accounts

Loss brought forward of subsidiaries
Other

Note: An amount of (18) million yen included in net deferred tax assets for the fiscal year ended March 31, 2011, 18 million yen isincluded in other long-term liabilities in the long-term liabilities of the Company’s consolidated balance sheet.
An amount of (17) million yen included in net deferred tax assets for the fiscal year ended March 31, 2012, 1million yen isincluded in other current liabilities and 16 million yen in other long-term liabilities in the long-term liabilities, respectively, of theCompany’s consolidated balance sheet.

2. Breakdown of major differences between the statutory tax rate and the effective tax rate after adoption oftax-effect accounting
Fiscal 2010
(April 1, 2010 to March 31, 2011)

Fiscal 2011
(April 1, 2011 to March 31, 2012)

Effective tax rate
(Adjustment)
Items not included in calculations of losses(e.g. entertainment expenses)
Items not included in gross profits (e.g.
dividends)
Equal percent residential tax
Elimination of dividends received fromconsolidated subsidiaries
Foreign withholding taxes
Change in valuation allowance
Difference in corporate tax rates from foreignsubsidiaries
Decrease in deferred tax assets at the end of
period by changes in tax rates
Other
Contribution percentage of corporate and othertaxes after tax effect accounting is applied

Information on the difference between the statutory tax rate and theeffective tax rate is not presented for the fiscal year since thedifference between the statutory tax rate and the effective tax rate
was less than 5/100 and therefore considered immaterial.

- 23 -

(%)
40.7

4.7
(2.9)
0.9
1.0
1.3
8.5
(3.3)
3.5
1.6
56.0

3. Effects by Changes in Corporate Tax Rates and Others“Reform bill for partial revision of income tax law, etc. in response to the changing economic
structure” (Bill No.114, 2011) and “Special measures to secure the funds to realize the restorationof the damages following the Great East Japan Earthquake” (Bill No. 117, 2011) were promulgatedon December 2, 2011, and lowering of corporate tax rates and taxation of restoration surtax are
implemented for the consolidated fiscal year starting April 1, 2012. As a result, the previous 40.7%
effective tax rates used to calculate deferred tax assets and deferred tax liabilities will be 38.0 % for
temporary differences expected to be eliminated during the fiscal years starting April 1, 2012
through April 1, 2014 and 35.6% for temporary differences to be eliminated for the fiscal years
starting April 1, 2015 and after. With these changes in corporate tax rates, the deferred tax assets(the net balance of differed tax assets minus differed tax liabilities) decreased by 123 million yen,and net unrealized gain on marketable securities and income tax-deferred increased by 26 million
yen and 150 million yen respectively.

(Per Share Information)(Yen unless otherwise stated)

1. Net assets per share
2. Net income per share

Fiscal 2010
(April 1, 2010 to March 31, 2011)

Fiscal 2011
(April 1, 2011 to March 31, 2012)

3,413.87
119.85

3,457.13
55.90

Notes:
1. Net income per share for the fiscal years ended March 31, 2008 and March 31, 2009 are calculated on thefollowing basis:(Millions of yen unless otherwise stated)

Net income
Net income applicable to common stock
Average number of shares for the period

Fiscal 2010
(April 1, 2010 to March 31, 2011)

Fiscal 2011
(April 1, 2011 to March 31, 2012)

4,130
4,130
34,465 thousand shares

1,899
1,899
33,982 thousand shares(Important Subsequent Events)
Not applicable.

- 24 -

5. Other(1) Manufacturing, New orders and Sales
1) Manufacturing(Millions of yen, figures less than 1 million yen have been omitted)
Fiscal 2010
(April 1, 2010 to March 31, 2011)
Heat sinks

Fiscal 2011
(April 1, 2011 to March 31, 2012)
5,409

4,406

2) New Orders(Millions of yen, figures less than 1 million yen have been omitted)
Fiscal 2010
(April 1, 2010 to March 31, 2011)

Fiscal 2011
(April 1, 2011 to March 31, 2012)

Semiconductors
Electronic components
Electronic equipment
Ryosan products

128,755
61,371
28,305
6,616

132,982
53,876
21,772
5,312

Total

225,048

213,944- 25 -

(2) Geographical Segment Information
Fiscal 2010, the fiscal year ended March 31, 2011
(April 1, 2010 to March 31, 2011)(Millions of yen, figures less than ¥1 million have been omitted)
Japan
I Sales and operating income
Sales:(1) Sales to external
Customers(2)Internal sales between
segments, or exchange
Total
Operating income

Asia

Total

Eliminations
or corporate

Consolidated

150,473

65,680216,154―

216,154

10,562392

10,954(10,954)―

161,035
4,104

66,072
1,799

227,108
5,904(10,954)(174)

216,154
6,078

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia :
Hong Kong, China, Taiwan, Thailand, Singapore and others

Fiscal 2011, the fiscal year ended March 31, 2012
(April 1, 2011 to March 31, 2012)(Millions of yen, figures less than ¥1 million have been omitted)
Japan
I Sales and operating income
Sales:(1) Sales to external
Customers(2)Internal sales between
segments, or exchange
Total
Operating income

Asia

Total

Eliminations
or corporate

Consolidated

153,560

64,326

217,887―

217,887

7,046

1,249

8,295

(8,295)―

160,606
2,445

65,575722

226,182
3,167(8,295)(343)

217,887
3,511

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:
Asia :
Hong Kong, China, Taiwan, Thailand, Singapore and others- 26 -

(3) Changes of Directors (As of June 22, 2012)
1. Directors to be retired
Name

New position

Harumitsu Seki

Auditor (Full-time)

Isao Hayashi

AdvisorItsuto Hamasaki

To be retired

Takeshi Honda

Auditor (Full-time)

Current position
Senior Managing Director
General Manager, Finance and Accounting
Headquarters
Managing Director
General Manager, Electronic Components
Business Headquarters
Managing Director
General Manager, Electronic Equipment
Business Headquarters
Director
General Manager, Administrative
Headquarters

2. Newly-Appointed Director
Name
Hidekazu Sano

Yasuo Yoshiizumi

Hiroyuki Kurihara

Kazunori Sato

Masaaki Komatsu

New position

Current position

Director
General Manager, Finance andAccounting Headquarters (in chargeof administration)
Director
General Manager, Electronic
Equipment Business Headquarters
Director
General Manager, 1st Semiconductor
Business Headquarters concurrenyly
General Manager, Sales
Administration Headquarters
Director
General Manager, 2nd Semiconductor
Business Hedquarters concurrenyly
Duputy General Manager,
Corporate Planning Headquarters
Director (outside)

Duputy General Manager, Finance andAccounting Headquarters
Duputy General Manager, Electronic
Equipment Business Headquarters
Duputy General Manager, 1st
Semiconductor Business Headquarters
concurrenyly
Duputy General Manager,
Sales Administration Headquarters

General Manager, 2nd Semiconductor
Business Headquarters
Shiseido Company, Limited
Corporate Adviser

3. Other personnel changes
Name
Hiroshi Shibuya

Tsuyoshi Koyama

Koji Honma

New position

Current position

Director
General Manager, 2nd Domestic
Marketing and Sales Headquarters
Director
General Manager, Electronic
Components Business Headquarters

Managing Director
General Manager, 1st Semiconductor
Business Headquarters
Director
General Manager, 2nd Domestic Marketingand Sales Headquarters
Director
General Manager, 1st Domestic Marketingand Sales Headquarters concurrenyly
General Manager, Sales Administration
Headquarters

Director
General Manager, 1st Domestic
Marketing and Sales Headquarters- 27 -

4. Retiring Auditors
Name

New position

Current position

Naotsugu Kasuya

To be retired

Auditor (Full-time)

Yukio Tanaka

To be retired

Auditor (Full-time)

Tsuneo Sato

To be retired

Auditor5. Candidates for Newly Appointed Auditors
Name

New position

Harumitsu Seki

Auditor (Full-time)

Takeshi Honda

Auditor (Full-time)

Toshiyuki Fujino

AuditorCurrent position
Senior Managing Director
General Manager, Finance and Accounting
Headquarters
Director
General Manager, Administrative
Headquarters
Fujino Law Office
Lawyer- 28 -