Shareholders Social Meeting
Ryosan Company, Limited

June 20, 2014

1. Introduction of the New Board Structure

2. 9th Medium-Term Management Plan

3. FY2014 Business Plan
NoticeBusiness forecasts and all statement related to the future contained in this presentation
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 of major factors:
・Economic conditions in key markets (Japan and the rest of Asia), rapid changes
in consumption trends and supply-demand balance for products
・Sharp fluctuations in the dollar-yen exchange rate
・Substantial fluctuation in prices in capital markets

An Electronics Systems Coordinator

11. Introduction of the New Board Structure

2. 9th Medium-Term Management Plan

3. FY2014 Business Plan

An Electronics Systems Coordinator

2New Board Structure (Directors)
Representative Director
Managing Director

Directors

President
Concurrently General Manager,
Corporate Planning Headquarters
General Manager,
Sales Planning and Control Headquarters
Concurrently General Manager,
3rd Domestic Marketing and Sales Headquarters
General Manager,
Engineering Headquarters
Concurrently General Manager,
1st Semiconductor Business Headquarters
General Manager,
1st Domestic Marketing and Sales Headquarters
Concurrently General Manager,
2nd Semiconductor Business Headquarters
General Manager,
International Marketing and Sales Headquarters
Concurrently General Manager,
Electronic Components Business Headquarters
General Manager,
2nd Domestic Marketing and Sales Headquarters
General Manager,
Production Headquarters
General Manager,
Finance and According Headquarters
General Manager,
Electronic Equipment Business Headquarters
General Manager,
Administrative Headquarters

Outside Director
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Naoto Mimatsu

Hiroyuki Kurihara

Toshifumi Sakata

Kazunori Sato

Koji Homma
Hiroshi Shibuya
Satoshi Takabayashi
Hidekazu Sano
Yasuo Yoshiizumi
Iwao Sakamoto
Masaaki Komatsu
3New Board Structure (Auditors)

Full-time Corporate Auditor

Harumitsu Seki

Full-time Corporate Auditor

Ken Honda

Corporate Auditors

Kotaro Nakano

Corporate Auditors

Toshiyuki Fujino

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Ryosan Company, Limited

9th Medium-Term Management Plan

5

Basic Stance

Basic stance of the 9th Medium-Term Management Plan

“Innovation”
and “growth”
Pursuing a business model shift which responds to changes in our business structureand sustainable independent growth
Universal Management PolicyPursuing management essence, advancing management innovation, and yielding
management results are the keys to conducting open and transparent corporate
management and business activities with abundant creativity.

6

Growth Strategies◆ Further promotion of multi-vendor support to respond to customers’
diversifying needs◆ Strengthening global support to expand overseas business◆ Strengthening system solution capabilities (capabilities in systemengineering plus embedded systems) to create new business models
7Further promotion of multi-vendor support to respond to customers’ diversifying needs

FuturePast

・NXP Semiconductors N.V.
・Macronix International Co., Ltd.
・Entropic Communications, Inc.
・Everspin Technologies, Inc.
・THine Electronics, Inc.

GYRONICS
PresentConsider M&A

・Winbond Electronics Corp.
・Micrel Inc.
・STMicroelectronics N.V.
・Applied Micro Circuits Corporation
・Atmel Corporation
・Faraday Technology Corporation

・ON Semiconductor corporation
・Yamaha Corporation

No. of supplier・・・・・・Customer needs for which response is possible

・Renesas Electronics Corporation8

Strengthening global support to expand overseas business

Germany
・Follow-up overseas shift ofJapanese clients

South Korea
・Design-in and sales for Korean
corporations

China/Hong Kong
・Design-in and sales for Chinese
corporations
・Follow-up overseas shift of Japaneseand American clients

United States・Follow-up overseas shift ofJapanese clients

Japan・Design-in and global expansion
support for Japanese clients

Taiwan・Design-in and sales for Taiwanese
corporations

India
・Design-in and sales for Indian
corporations

Shared Theme in All Countries
Singapore/Malaysia/Thailand
・Follow-up overseas shift ofJapanese and American clients・Develop unique semiconductor andelectronic component manufacturers

9Strengthening system solution capabilities to create new business models

Ryosan’s System SolutionSystems Technological Capability (Realization)

Embedded Systems Capability (Coordination)

・Enhance system technological capability in・Implement value-added proposals based on

growth fields and high-consumption fields

our core in-house technology (modules,boards, etc.)

・Accumulate element technology in theabove fields

Modulemanufacturers
Components
manufacturers

Material
manufacturers
System consignment manufacturers(design, manufacturing)

Etc.

Clients
10

Segment Strategies

Semiconductors
segment
strategy

Seeks to expand our business by strengthening design-in
activities for products of the major manufacturer RenesasElectronics and foreign semiconductor manufacturers.

Electroniccomponents
segment
strategy

Seeks to expand our business in fields such as car electronics

Electronicequipment
segment
strategy

Seeks to expand our business by strengthening our embedded system capability as abase for focusing on our system solution business which promotes module andcomponent business through new resources, as well as by strengthening our facilities
equipment business through advancement of the 3 business elements of hardware,materials and service.

and industry by augmenting sales promotion activities which
are aligned with supplier strategy.

11Segment Strategies

Ryosan products
segment
strategy

Technologystrategy

Although transfer of the heat sink production business to Sankyo
Tateyama, Inc. scheduled for September 1, 2014, Ryosan will continue
to focus on sales activities for heat sinks as an agent.

With a focus on semiconductor technology that we have accumulated over a
period of many years as a technological trading company, the Ryosan Group will
expand the field of technical support for electronic components and embedded
products, and shall strengthen system technological capability which supports
system solution capability.

12Infrastructure Strategies◆ Reinforcing management in terms of quality
・ Strengthen governance through outside directors and outside auditors.
・ Enhance global internal controls.
・ Strengthen CSR at group companies.
・ Enhance global risk response capability (legal and tax aspects).

◆ Strengthening of our management structure(Strengthening of consolidated management)

・ Develop global information system (sales, logistics, accounting).
・ Develop system to strengthen the profit/financial structure of group companies.
・ Increase efficiency of headquarters functions (Headquarters Management Division).
・ Utilize human resources through diversity management.

13

Basic Policy Regarding Redistribution of Profits to the Shareholders◆ Basic policy

・ Sustain stable and high dividends; seek resumption of 80 yen
dividends by FY2016.
・ Continue to consider share repurchases based on trends inconsolidated business performance, etc.
◆ Consolidated dividend payout ratio

・ 50% or higher each year.

141. Introduction of the New Board Structure

2. 9th Medium-Term Management Plan

3. FY2014 Business Plan

An Electronics Systems Coordinator

15

Overview of Consolidated Business Plan
FY2013Results

FY2014Of totalPlan

Of total

Net sales

2,383

Gross margin

186

7.8%

1868.2%(0.0)%

SG & A expenses

1345.6%1355.9%+0.3%

Operating income

512.2%

512.2%(0.9)%

Ordinary income

50

2.1%

53

2.3%

+4.9%

Net income

32

1.4%

34

1.4%

+5.5%

Earnings per share

2,270% Chg. YoY¥101.86
Results(4.8)%¥108.06
Of totalPlan

Of total% Chg. YoY

Domestic sales

1,246

52%

1,250

55%

+0.3%

Overseas sales

1,13748%

1,02045%(10.3)%An Electronics Systems Coordinator(Unit: 100 millions of yen)

16Overview of Business Plan by Segment
FY2013ResultsFY2014

Of total

Net Sales

1,615Operating income

32.0

Net Sales

543

Operating income

14.6

Net Sales

174

Operating income

7.0

Net Sales

50

PlanOf total

1,470% Chg. YoY(9.0)%

Semiconductors

2.0%

31.5

2.1%

560

(1.7)%+3.1%

Electronic Components

2.7%

15.5

2.8%

195

+5.7%
+11.4%

Electronic Equipment

Ryosan Products (Heatsinks)

Operating income

(0.5)

4.1%

5.5
45

‐

1.0(1.8)(2.5)

Net Sales

2,383

2,270

Operating income

51.4

Adjustments

2.8%(22.4)%(11.0)%

2.2%‐(4.8)%Total

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2.2%

51.0

2.2%

(0.9)%(Unit: 100 millions of yen)

17Plan for Redistribution of Profit to Shareholders
Current term net income
Total amount of dividends (figures inparenthesis are dividend payout ratio)(Unit: 100 millions of yen)

Purchase of treasury stock
Total payout ratio

5067%

141%
39

40

114%
36

162%

65%

30
30

19

17

41
17

20

27

28(67%)

18

1013(71%)

@¥80

32

@¥40

19(71%)@¥60

34
2218(65%)

(59%)

@¥60

@¥700FY2010

FY2011An Electronics Systems Coordinator

FY2012FY2013

FY2014 (Plan)
18