Shareholders Social Meeting

June 22nd, 2012
Ryosan Company, LimitedToday’s report
1. Introduction of the New Board Structure
2. Business Management Effort for Fiscal 2012
3. Forecasts of Results for Fiscal 201201

Introduction of the New
Board Structure

02

New board structure
Representative President
Director(Concurrent position held)

Naoto Mimatsu

General Manager, Corporate
Planning Headquarters

Director

General Manager, 2ndDomestic Marketing andSales Headquarters

Hiroshi Shibuya

Director

General Manager,Engineering Headquarters

Toshifumi Sakata

Director

General Manager, Electronic
Components BusinessHeadquarters

Tsuyoshi Koyama

Director

General Manager, Production Satoshi Takabayashi
Headquarters

Director

General Manager, 1stDomestic Marketing andSales Headquarters

Director

Director

General Manager,
International
Marketing and SalesHeadquarters

Koji Honma
Tetsuro Kanai

Hidekazu Sano
General Manager, Financeand Accounting Headquarters(Concurrent position held)
In charge of Administration

Director

General Manager,
Electronic Equipment
Business Headquarters

Director

General Manager, 1stHiroyuku Kurihara
Semiconductor BusinessHeadquarters(Concurrent position held)
General Manager, Sales
Administration
Headquarters

Director

General Manager, 2ndKazunori Sato
Semiconductor
Business Headquarters(Concurrent position held)
Deputy General Manager,Corporate PlanningHeadquarters

Yasuo Yoshiizumi

Outside Director

Masaaki Komatsu

Full-time Auditor

Harumitsu Seki

Full-time Auditor

Takeshi Honda

Outside Auditor

Kotaro Nakano

Outside Auditor

Toshiyuku Fujino
03

Business Management Effortfor Fiscal 201204

Partial Amendment of "8th Medium-Term Management Plan"
Withdrawal of "Business Goals of Achieving 300,000 million yen of Net Sales in FY2013"[Reason] A lack of awareness of changes in the business environment◆ The domestic business environment has undergone major structural changes since planning
・Diminishing competitiveness of Japanese companies due to the extreme appreciation of the yen

・The Great East Japan Earthquake and the floods in Thailand◆ Uncertainties are growing in an increasingly unpredictable global economy
・European sovereign crisis
・The slowdown in the Chinese economy

・The delay in the recovery of the US economy

Since the business environment is expected to change significantly in and after FY2012,
the Company gives the highest priority to rebuild the "sound business structure"aiming to restore 3% of operating income to net sales in FY2013, the last fiscal year ofthe plan.
05

Business Goals and Actual Results
3,500(¥ 100 million)

3,000
3,000
2,500

Gap

2,250

2,161

2,178

2,000

64258

54246

60
255

1,500

600

554

565

1,000

500

0100
350

750

1,800
1,237

1,323

1,370

FY2010FY2011FY2012(Forecasts)

Ryosan ProductsElectronicEquipment

Electronic
Components

Semiconductors

FY2013(Initial business goals)

06

Our Basic Stance

The Company addresses "Renovation ofManagement Structure"
to survive in a changing external environment.
・Rebuilding the sound business structure
・Building a far-sighted management system

07

Measures for this Financial Year
Laying the foundation◇Improvement in the profit structure◇Improvement in the financial structure

Reform of the management system◇Rejuvenation of Directors◇Enhancement in corporate governance08

Measures for this Financial Year
Laying the foundation~ Restructuring of the profit and financial structure◇Improvement in the profit structure
・The businesses transferred due to changes in business flowsof suppliers are highly unprofitable since the Company did notconduct sales activities with its own added value (technicalsupport) for them.
・The Company will improve future profitability by conducting
sales activities with technical support to the new commercialrights.

09Measures for this Financial Year
Laying the foundation~ Restructuring of the profit and financial structure◇Improvement in the financial structure
・Worsening of the financial structure due to increasing
inventories (due to the slowdown in the Chinese economy andthe launch of newly transferred businesses)

・The Company will improve months sales in inventory and cash
flows by reducing inventories to an adequate level through strict
control of delivery time.

10Measures for this Financial Year
Reform of the management system◇Rejuvenation of Directors
・Active promotion of potential younger members◇Enhancement in corporate governance・Appointment of independent outside directors(Supplementary information) "Renewal of the Board of Directors"◇The Company implemented "Renewal of the Board of Directors" inconsideration of "worsening business performance" and "reductionin the year-end dividend."
・The remuneration for officers (January-March 2012) was reduced.
・No Directors with title (Senior Managing Directors or ManagingDirectors) were placed this time.
11

Progress of Growth Strategies◇Strengthening our approach to developing
countries with rapid growth(1) Strengthening of measures to promote sales in theChinese market
・Establishment of the integrated sales promotion system inChina centering on the Shanghai office[Progress] Business, legal and tax matters have been considered and verified.
The optimum sales promotion system is under consideration.

(2) Making inroads into the Indian market
・Sales promotion activities, particularly to Indian localclients[Progress] Bangalore office (affiliated with Singapore RS) was established in June 2012.

It began full-scale operation.
12

Progress of Growth Strategies◇ Strengthening our business with globalizing
Japanese customers
Making inroads into the European market・Construction of a service/support system for Japanesecompanies making inroads to Europe[Progress] Ryosan Europe GmbH (Munich) was established in March 2012.
It began operation.

13

Progress of Growth Strategies◇ Strengthening our presence in growthfields (car electronics, social infrastructure, etc.)(1) Car electronics<Domestic>
・Expand sales to car navigation systems, car audio systems, in-vehicle LAN(vehicle body control/information), car-mounted cameras<Overseas>
・Expand sales to major Chinese automotive manufacturers, Chinese
manufacturers of in-vehicle electronic components, and major Korean
automotive manufacturers(2) Social infrastructure/Smart community
・Promote sales which include technical support
Expand sales to the fields of LTE (global standard for next-generation
mobile phones), smart meters, and solar power
14

Forecasts of Results for Fiscal 201215

Forecasts of Consolidated Results
Unit: ¥ 100 million

FY20112,500%%

2,250
181
135
46
54
35

7.7
6.1
1.6
2.1
0.9

¥55.90Earnings per share

Net sales

Of T otal

167
132
35
44
18

Gross Margin
SG&A expenses
Operating income
Ordinary incomeNet income(¥ 100 million)

Of T otal2,178

Net sales

FY2012 (Forecasts)(¥ 100 million)＋3.3%

8.0＋7.9%

6.0＋1.8%

2.0＋31.0%

2.4＋20.6%

1.6＋84.3%¥104.59

Operating income

80(¥ 100 million)

50

Net income

40

2,000

60
30

1,500
1,000% Chg. YoY

2,178

2,250

40

500

2000

FY2011FY2012(Forecasts)

2035461035180

FY2011FY2012(Forecasts)

FY2011FY2012(Forecasts)

16

Forecasts of Results by Business Segment
Unit: ¥ 100 million

FY2011FY2012 (Forecasts)
OP Margin(%)

Semiconductors
Electronic
Components
Electronic
Equipment
Ryosan Products(Heat sinks)

Sales
OperatingincomeSales
OperatingincomeSales
OperatingincomeSales
OperatingincomeUnallocable Operating expenses

Consolidated

Sales
Operatingincome1,32324554
182468542▲172,17835

OP Margin(%)

4.1

1,370
37565
20255
9605-

▲25

1.6

2,250
46

1.8

3.3

3.6% Chg. YoY＋ 3.5
2.7＋54.0＋ 2.0

3.5＋10.8＋ 3.4

3.5＋ 2.5＋10.1

8.3-＋127.3＋ 3.3

2.0＋31.0
17Forecasts of Sales by Business Segment【Forecasts of Sales for Semiconductors】(¥ 100 million)

Memories【Forecasts of Sales for Electronic Components】
Display Devices(¥ 100 million)

System LSIs

Power Supplies

Discrete

1,323

FY2011

Mechanical Components

1,370

FY2012 (Forecasts)◇Focused target markets

554565FY2011FY2012 (Forecasts)◇Focused target markets

・In-vehicle electrical components
・In-vehicle electrical components ・Social
・Social infrastructure ・Communication equipment infrastructure ・Information and telecommunications

18

Forecasts of Sales by Business Segment【Forecasts of Sales for Electronic Equipment】(¥ 100 million)【Forecasts of Sales for Ryosan Products】(¥ 100 million)

System Equipment

Domestic

Facilities Equipment246255

FY2011FY2012 (Forecasts)

Overseas6054

FY2011FY2012 (Forecasts)◇Focused target markets◇Focused target markets

・In-vehicle related ・Social infrastructure
・Environmental energy

Domestic ・Energy ・In-vehicle electrical components
・FA, servo ・Heavy electrical machineries
Overseas ・Air conditioners ・OA・In-vehicle electrical components

19Forecasts of Sales by Area
Unit: ¥ 100 million

FY2011FY2012 (Forecasts)% Of T otal

Consolidated net sales

JapanOverseas(Chinese Bloc)% Of T otal % Chg. YoY

2,178－2,250

1,492

68.51,533

68.1+2.7686

31.571731.9+4.6441

20.3

470

20.9+6.5－+3.320

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・ Plan to make a decision which considers factors such as trends inconsolidate performance21Performance & Forecast for Return of Profits(¥ 100 million)
Net income

80

Total amount ofdividends
Purchase oftreasury stock
Payout ratio

7060

4130504030

1728272020
100182013

@¥60

@¥80

@¥40

@¥60

FY2009FY2010FY2011FY2012(Forecasts)

FY2009Total payout ratio
DOE

35

72.1%
1.8%

FY201066.8%
2.3%

FY2011161.5%
1.2%
22

Disclaimer regarding handling of this data
Business forecasts and all statement related to the future contained in thispresentation 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 ofmajor factors:- Sudden changes of economic conditions of primary markets (Japan,Asia, etc.), of consumption trends, and supply/demand for products- Significant changes of yen rates against dollar and other currencies- Significant changes, etc. of the market prices in the capital market