May 12, 2017

For Immmediate Release

Ryosann Compaany, LimiitedRepresenntative: Naotoo Mimatsu,
Repreesentative Diirector, Presiident
Listing CodeC
No.: 81140
Listing: FirstF
Sectionn, Tokyo Stoock Exchange
Inquiries:: Norihiko Takahashi
TGeneral Manager
M
Corporate Strategy Off
ffice
TEL: +81--3-3862-38166

Notice Concern
ning the SecondSR
Round of AdditionaA
al Measurres to Imp
prove
Caapital Effiiciency In
ncluded inn the 9th MediumM
Term Bu siness Plaan

Ryosan Coompany, Lim
mited ("the Coompany") annnounces that the Board of Directors hheld on May 12, 2017,resolved a second roundd of measures to improve capital efficiency as followws.
1.

Backgground
In itss 9th Medium
m-Term Busiiness Plan (FFY2014-FY20017), the Co
ompany estabblished a fun
ndamental
stancee focused onn “innovationn” and “growwth. On that basis, the Company
C
deccided to procceed withmeasuures to “imprrove capital efficiency”
eannd “reestablissh a growth path” as its momost importantt businessprioriities. Total retturn ratio for the past two years was 24
45% on average.
In Juuly 2016, as one of its measures
mto sstrengthen ROOE, the Commpany annouunced increasses to thedivideend (to ¥1400 in FY2016 and to ¥1500 in FY2017)) and a decision to purchaase 3 millionn treasury
sharess per year.
The nnumber of trreasury sharees acquired inn FY2016 wasw less than the initial pplan. Althoug
gh current
businness performaance is impro
oving, the Coompany has decided
dthat additional mmeasures are neededntoachievve the target ROE of 5%. The Compaany implements the (secoond round of)) measures too improve
capitaal efficiency basedbon the following thrree pillars andd aims at achievement of iits targets.
((1) Increasee of the amou
unt for acquisiition of treasu
ury shares (4..5 million shaares per year))((2) Extensioon of the period of implem
mentation (by one year)((3) Cancellaation of treasu
ury shares (byy a total of 3 million sharees)
Even after these additional
ameaasures, the C
Company rem
mains committted to its basiic strategy off boosting
profittability by “reeestablishing a growth paath” and “impproving capitaal efficiency. ” To pave the way forFY20017, the last year
yof the 9tth Medium-T
Term Businesss Plan, the CompanyCwilll ensure that presently
impleemented meassures achievee their intendeed results andd will move forwardfwithh constructionn of a newgrowtth scenario. TheT new sceenario will aiim at ROE ofo 8% for thee new mediuum-term busiiness plan
coverring the period starting in FY2018.
F1

2.

Basic policy (content changed)
By FY2018, the Company shall implement measures to improve capital efficiency, whose main points
are (1) repurchase 4,500,000 shares, and (2) annual dividend of 150 yen or more.
Moreover, the Company shall cancel 3 million treasury shares on May 31, 2017.
Current state

After the change

Dividend per share

FY2017
Annual dividend of 150 yen ormore(Regular dividend: 100 yen)(Special dividend: 50 yen ormore)

FY2017-2018
Annual dividend of 150 yen ormore(Regular dividend: 100 yen)(Special dividend: 50 yen ormore)

Acquisition of treasure shares

FY2017
3 million shares per year

FY2017-2018
4,500,000 shares per year

Cancellation of treasure shares

No plans

FY2017
3 million shares2