Ryobi Limited
Financial Results Presentation
for the Six Months
Ended June 30, 2022
August 5, 2022

Contents
1. Results for the Six Months Ended
June 30, 2022

3

2. Forecasts for the Fiscal Year Ending
December 31, 2022

13

3. Status by Business Segment & Topics

21(1) Die Castings(2) Builders’ Hardware(3) Printing Equipment(4) Integrated Report(5) Sustainability ESG/SDGs

4. Shareholder Returns

40
2/43

1. Results for the Six Months Ended
June 30, 2022

Highlights of Financial Results

1. Results for the Six Months
Ended June 30, 2022

 Consolidated results: Sales and profitability increased compared to the previous
corresponding period
Die Castings• Sales increased both in Japan and overseas Although there was no recovery in terms
of production volume (weight) due to the impact on automobile production of the global
shortage of semiconductors and other components and the lockdown in Shanghai,
China, sales increased due to offsetting of higher raw material prices with an upwardrevision of sales prices, as well as the increase in sales at overseas subsidiaries due tothe weaker yen• Profitability increased as a result of the benefit of increasing sales
Builders’ Hardware
Sales increased both in Japan and overseas Profitability declined due to higher
procurement costs caused by the appreciation of the Chinese yuan
Printing Equipment• Sales increased both in Japan and overseas Profitability increased as government
subsidies promoted capital investment in Japan and business remained strong inEurope and the U.S.
• Profitability increased as a result of the benefit of increasing sales and cost reductions
 FY2022 forecasts : Revenue and earnings increase compared to the previous year
• In the die castings segment, in the second half of 2022, automotive production is
expected to recover from the impact of shortages of semiconductors and othercomponents and the lockdown in Shanghai, China• Offsetting of higher raw material prices with an upward revision of sales prices is
expected to continue in the 3rd quarter and beyond
4/43

1. Results for the Six Months
Ended June 30, 2022

Trends in the Production weight of Die Castings

Production has been showing signs of recovery since the second half of 2021, but fell
year-on-year due to shortages of semiconductors and other components and the
lockdown in Shanghai, China

Trends in the Production weight(FY2019 – 2Q of FY2022)
Consolidated(left axis)
Americas(right axis)
China(right axis)

Consolidated(Unit︓t)80,000Japan(right axis)
Europe(right axis)
Thailand(right axis)

By Region(Unit︓t)40,00060,00030,00040,00020,00020,00010,000

0

0
1Q

2Q

3Q

4Q

2019

1Q

2Q

3Q

4Q

1Q

2Q

2020

3Q

4Q

2021

1Q

2Q

2022
5/43

1. Results for the Six Months
Ended June 30, 2022

Results Summary

Production volume (weight) decreased due to lower automobile production, but sales
increased year-on-year due to higher raw material prices and the weaker yen; Profitability
increased due to offsetting of higher raw material prices with an upward revision of sales
prices, as well as foreign exchange gains(Unit: Billions of Yen)FY2021 2Q

FY2022 2Q

Results

Results

ChangeNet sales

95.6

113.6

18.0
(18.9%)

Operatingprofit- 0.6

2.0

Ordinary
Profit0.1

3.1

Profitattributable toowners ofparent

0.2

1.8

2.7
(－)

3.0
※ ※(－)

1.6(700.6%)

Forecasts

Change(Announced on 2/14)(Announced on 2/14)

114.8

1.8

1.8

1.2

- 1.2
(- 1.0%)0.2(13.8%)

1.3(71.7%)

0.6(50.6%)※Since the year-on-year rate of ordinary profit from the corresponding period of the previous fiscal year is over 1,000%, “-” is indicated.

6/43

1. Results for the Six Months
Ended June 30, 2022

Analysis of Changes in Net sales

Sales increased by 18.0 billion yen due to higher raw material prices and the weaker yen
despite a year-on-year decrease in die castings production volume(Unit: Billions of Yen)

95.6

Increasedecrease inproduction
etc.

Currency
effectRaw material(Aluminum)
price

+6.3

+12.7

113.6

- 1.0

FY2021 2Q

FY2022 2Q

Exchange rates

USD

GBP

CNY

THB

FY2021 2Q¥107.31¥149.00¥16.58¥3.50

FY2022 2Q¥121.19¥158.62¥18.76¥3.61(average during the period)

Analysis of Changes in Operating profit

7/43

1. Results for the Six Months
Ended June 30, 2022

Operating profit increased due to benefit of increasing sales despite an increase in
fixed costs(Unit: Billions of Yen)

Increase inproduction
etc.
+6.2

Labor
expenses

Depreciation

-2.1

-0.5
Other fixed
cost
-1.0

2.0

-0.6
-1

FY2021 2Q

FY2022 2Q

8/43

1. Results for the Six Months
Ended June 30, 2022

Trends in Sales and Operating profit (Consolidated)

An operating loss was recorded in the second quarter (April-June 2022) due to the rapid
decline in automobile production volume(Unit: Billions of Yen)

(Unit: Billions of Yen)

60

57.4

54.0
46.2

48.7

48.2

47.3

48.5

4

31.5

2.7

Sales

20

2

1.2

0

0.6

0.5

0.2

0.1
-0.7

-1.0

-1.2

(20)

0

-2

-3.8

(40)
1Q

2Q

Operating profit

40

44.6

6

56.2

-4
3Q

4Q

1Q

FY2020
FY2020

2Q

3Q

4Q

1Q

FY2021

Sales (left axis)

Result by Business Segment

2Q

FY2022
FY2022

Operating profit (right axis)

9/43

1. Results for the Six Months
Ended June 30, 2022

Die Castings: Sales and profitability increased due to higher raw material prices and the weak yen despite adecrease in production volume

Builders’ Hardware: Sales increased, but profitability decreased due to the appreciation of the Chinese yuan
Printing Equipment: Profitability increased due to benefit of increasing sales in Japan and overseas(Unit: Billions of Yen)FY2021 2Q

FY2022 2Q

Results

Results

Net sales

95.6

113.6

Die
castings

82.1

98.2

Builders’
hardware

4.5

4.9

Printing
equipment

8.8

10.5

Operatingprofit

- 0.6

2.0

Die
castings

- 0.4

1.2

Builders’
hardware0.2

0.1

Printing
equipment

- 0.5

0.7

Change18.0(18.9%)
16.0(19.5%)
0.4(8.1%)
1.6(18.6%)
2.7
(－)
1.6
(－)
- 0.1
(- 45.4%)
1.2(－)

Forecasts

Change(Announced on 2/14)(Announced on 2/14)

114.8
100.0
4.5
10.3
1.8
1.6
0.1
0.1

- 1.2
(- 1.0%)- 1.8(- 1.8%)0.4(8.6%)
0.2(1.5%)
0.2(13.8%)- 0.4(-26.0%)0.0(27.0%)
0.6(644.0%)10/43

1. Results for the Six Months
Ended June 30, 2022

Consolidated Balance Sheet

Total assets increased by 22.2 billion yen year-on-year, of which 18.0 billion yen was due to theimpact of foreign exchange fluctuations
Cash and deposits decreased by 4.0 billion yen due to the impact of holidays at the end of FY2021(Unit: Billions of Yen)

Current assets

FY2021

FY2022 2Q

ChangeCurrency
Translation
Effect

129.6

141.2

11.6

7.1

Current liabilities

FY2021

FY2022 2Q

ChangeCurrency
Translation
Effect

110.8

110.6

-0.1

5.2

41.6

41.6

-0.0

1.2

Cash anddeposits

28.5

22.8

-5.7

0.8

Notes andaccounts
payable—trade

Notes andaccounts
receivable—trade

44.3

54.4

10.1

2.8

Short-termborrowings

51.0

47.9

-3.1

3.0

Securities

0.7

0.7

-0.1

0.0

Other

18.2

21.2

3.0

1.0

Inventories

52.5

58.7

6.2

3.3

Non-current liabilities

36.9

45.1

8.2

1.3

Long-term
borrowings

22.8

30.6

7.9

1.0

Other

14.2

14.5

0.3

0.3

3.5

4.6

1.1

0.2

Non-current assets

149.8

160.4

10.6

10.9

Property, plantand equipment

117.2

126.9

9.7

9.7

Shareholders’ equity

111.6

113.8

2.2

0.1

11.3

23.0

11.6

11.4

Other

Intangible assets

3.2

3.1

-0.1

0.2

Accumulated othercomprehensive
incomeInvestments andother assets

29.5

30.4

0.9

1.0

Non-controllinginterests

8.8

9.1

0.3

-

0.0

-

0.0

-

Total net assets

131.7

145.8

14.1

11.5

Total liabilities andnet assets

279.4

301.6

22.2

18.0

Deferred assets
Total assets

279.4

301.6

22.2

Exchange rates

18.0
USD

(as of fiscal-year end)

GBP

CNY

THB

Dec. 31 2021

¥115.02¥155.24¥18.06¥3.43

Jun. 30 2022

¥136.68¥165.71¥20.38

¥3.85

11/43

1. Results for the Six Months
Ended June 30, 2022

Changing in Cash Flows

Of the -7.2 billion yen in free cash flow, -4.0 billion yen was due to the impact of holidays at the endof FY2021
Capital investment was made to meet new orders for lighter weight and electrification products(Unit: Billions of Yen)

Free CF -7.2
Investment CF
Sales CF +0.5
-7.7

Depreciation

Capitalinvestment

+9.0

27.4
Profitbefore
tax
+3.0

-8.0
Other

Borrowing
etc.

-11.4

+0.8
Other
+0.3

FY2021
BalanceFinance CF+0.4

Exchange
conversion

Dividends
etc.

21.6

+1.0

-0.4

FY2022 2Q
Balance12/43

2. Forecasts for the Fiscal Year Ending
December 31, 2022

2. Forecasts for the Fiscal YearEnding December 31, 2022

Forecasts
Revenue and earnings increase year on year

(Unit: Billions of Yen)FY2021

Forecasts(Announced on 8/4)

Results

Net sales

FY2022

198.1

248.0

Operating profit

- 1.5

6.4

Ordinary profit

0.0

7.6

Profit attributable toowners of parent

- 4.4

5.1

Change49.9(25.2%)
7.9
(－)
7.6
※ (－)

9.5
(－)

※Since the year-on-year rate of ordinary profit from the corresponding period of the previous fiscal year is over 1,000%, “-” is indicated.

14/43

2. Forecasts for the Fiscal YearEnding December 31, 2022

Forecasts by Business Segment

Die Castings: Sales and profitability increase due to expecting recover of automotive production and offsetting of
higher raw material prices with an upward revision of sales prices

Builders’ Hardware: Sales increase, but profitability decrease due to the appreciation of the Chinese yuan
Printing Equipment: Profitability increase due to benefit of increasing sales in Japan and overseas(Unit: Billions of Yen)FY2021

FY2022
Forecasts(Announced on 8/4)

Results
Net sales

198.1

248.0

Die castings

169.9

215.0

Builders’
hardware

9.6

10.0

Printing
equipment

18.4

23.0

Operating profit

- 1.5

6.4

Die castings

- 1.4

5.4

Builders’
hardware0.4

0.3

Printing
equipment

- 0.4

0.7

Change49.9(25.2%)
45.1(26.5%)
0.4(4.4%)
4.6(25.0%)
7.9

(－)
6.8
(－)

- 0.1
(- 17.1%)
1.1
(－)

15/43

2. Forecasts for the Fiscal YearEnding December 31, 2022

Trends in the Production weight of Die Castings

In the second half of 2022, production is expected to recover from the impact of the shortages ofsemiconductors and other components and the lockdown in Shanghai, China, to be at the samelevel as in 2019

Trends in the Production weight(FY2019 – FY2022)
Cosolidated(left axis)
Americas(right axis)
China(right axis)

Consolidated（Unit︓ｔ）

80,000Japan(right axis)
Europe(right axis)
Thailand(right axis)

By Region（Unit︓ｔ）

40,00060,00030,00040,00020,00020,00010,000

0

1Q

2Q

3Q

FY2019

4Q

1Q

2Q

3Q

FY2020

4Q

1Q

2Q

3Q

FY2021

4Q

1Q

2Q

3Q

4Q

0

0

FY202216/43

2. Forecasts for the Fiscal YearEnding December 31, 2022

Trends in Sales and Operating profit (Die Castings)

In the second half of 2022, both revenue and earnings are expected to increase as automobile
production recovers and higher material prices are offset with an upward revision of sales prices(Unit: Billions of Yen)

Forecast 3〜4Q
Sales︓116.8
Operating profit︓4.2(Unit: Billions of Yen)

75

50

39.2

39.0

42.0

41.4

40.2

46.3

49.5

48.7

5.0

2.2

Sales

1.1

0.8

0.2

2.5

0.9

0

-0.1
-1.2

-1.0

-1.0

-2.5

-25

Operating profit

25.5

25

0

42.2

7.5

-3.7

-5.0

-50
1Q

2Q

3Q

4Q

1Q

2Q

FY2020'20/12期

3Q

4Q

1Q

FY2021'21/12期

Sales(left axis)

2Q

3Q

4Q

FY2022'22/12期

Operating profit(right axis)

17/43

2. Forecasts for the Fiscal YearEnding December 31, 2022

Analysis of Changes in Operating Profit Forecast

An increase in production will be accompanied by an increase in labor and other fixed costs,
mainly at overseas locations, but earnings will be higher due to revenue growth both in Japanand overseas(Unit: Billions of Yen)

Sales
Increase
etc.

Labor
expenses

Depreciation

-4.0

-0.8

+14.0

Other fixed
cost
-1.3

6.4

-1.5

-2

FY2021ResultExchange rates

FY2022
Forecast
USD

GBP

CNY

THB

FY2021¥109.46¥150.64¥16.96¥3.44

FY2022 (Forecast)¥125.00¥156.00¥19.00¥3.60(average during the period)

Annual impact of yen appreciation
on operating income (1% higher
than forecasts)
USD
GBP
CNY

- ¥40 million- ¥10 million+ ¥10 million
18/43

2. Forecasts for the Fiscal YearEnding December 31, 2022

Trends in Capital Expenditure and Depreciation
For FY2022, investment is expected to be 17.0 billion yen and depreciation is expected to be 18.0
billion yen (no change from the previous forecast)(Unit: Billions of Yen)

30

Result of 2Q
Expenditure:8.8
Depreciation:9.0

24.8

25

23.0

20

17.4
15.4

14.6

15

17.2

17.0

16.4

15.3

18.0

13.0
24.1

22.1

10

16.4

14.5

13.7

16.5 15.4

12.5

5

17.3

0

FY2018(Adjusted)

FY2019Die Castings

FY2020

FY2021

Builders' Hardware

Printing Equipment

Other

FY2022
Forecast
19/43

2. Forecasts for the Fiscal YearEnding December 31, 2022

Trends in Interest-Bearing Debt and D/E Ratio
Interest-bearing debt at the end of FY2022 is expected to be 73.0 billion yen(no change from the previous forecast)(Unit: Billions of Yen)

(Unit: Times)

100.0

1.0

80.0

74.2

60.0

0.69

70.3
61.9

0.53

73.8

0.62

0.60

73.0

0.6
0.52

0.51

0.4
0.2

20.0
0.0

0.8

61.9

0.61

40.0

72.5

FY Mar.
2017

FY Mar.
2018

FY2018FY2019Interest-Bearing Debt(left axis)

Borrowing dependence(Interest-bearing
Debt/total assets)

FY2020

FY2021

FY2022
Forecast

0.0

D/E Ratio(right axis)

FY Mar.
2017

FY Mar.
2018

FY2018FY2019FY2020

FY2021

FY2022
Forecast

28.2%

25.8%

23.0%

23.5%

28.0%

26.4%

24.9%
20/43

3. Status by Business Segment& Topics

3. Status by Business Segment & Topics- (1) Die Castings

Die Castings

Outlook on Die Casting Demand- Growth arising from the use of alternative materials employing parts unification • Long-term automobile sales forecast has not changed despite geopolitical risks such as theRussia-Ukraine conflict• Transmission and engine parts sales will shrink• Body/Chassis, and electrification parts sales will increase

Sales volume base100

①Iron→Aluminum

As of Oct. 2021
Key countries: Japan, U.S.A, Europe, China, India

Outlook on Power Train Mix(Number of automobiles soldof Key countries)

6

Unit: 1 million vehicles

Outlook on Die Casting Demand（Total weight of Key countries）
Unit: 1 million t

90

Body/Chassis parts, Battery cases✔Creating new markets✔Superiority: Sheet metal, Cast iron vs

Aluminum Die Casting・Environmental performance,
Molding performance, Material property

5

80
70

EV

4
Body

60
50

3

Chassis parts

Battery Case

②ICE parts→Electrification parts
eAxle, Inverter case etc.

40
30
20

HV&PHVEngine parts

2✔Demand will increase in the short term
to compensate for ICE-related decline

1

10
0

0
2015 2020 2025 2030 2035 2040 2045 2050

eAxle

Inverter case

HV
Transmission

22/43

3. Status by Business Segment & Topics- (1) Die Castings

Die Castings

Initiatives for Weight Reduction and Electrification - Advantages of Aluminum Die casting -◆◆Characteristics of aluminum die casting(Comparison of material properties with those of steel) Lightweight

Approx. 20% to 40% lighter than steel→ Contributes to a reduction in CO2 emissions
when driving

 Excellent corrosion
resistanceNo painting required for general use areas
Even when painting is required, lower-grade paintcan be used

 Excellent thermal
conductivity

Advantage in heat dissipation design

 Less than half the energy
required to melt aluminum
than steel

Low CO2 emissions with recycled ingots

 Realization of resource
recycling

Sustainable materials

Resin trends: Although effective in reducing weight, there are concerns
in heat dissipation, rigidity, cost, and recyclability
23/43

3. Status by Business Segment & Topics- (1) Die Castings

Die Castings

Initiatives for Weight Reduction and Electrification - Advantages of Aluminum Die casting -◆Specific examples of weight reduction through the use of alternative
materials and unification (already commercialized)(Knuckle)(Battery case)

Sand mold cast iron

Aluminum

Weight: 4.8kg

Weight: 2.6kg

Advantages such as weight reduction, fewer parts,
and improved recyclability by switching from steel toaluminum die casting
Construction
Aluminum
Steel plate
methodDie casting
Quality decreases
each time materials
are recycled

Recyclable with little
quality deterioration

Weight*1

Heavy

Light (1/3 of Iron)

CO2
emissionswhen running

Much

LittleSucceeded in reducing the weight of knuckles
by approx. 46% by using Ryobi’s proprietary
GD squeeze casting method*＊GD Squeeze Casting︓

Recycle andquality

Ryobi’s unique method in which inclined casting is
combined with pressurization
Excellent productivity and dimensional accuracy*1Compare with same volume

24/43

3. Status by Business Segment & Topics- (1) Die Castings

Die Castings

Initiatives for Weight Reduction and Electrification- Exhibited at Automotive Engineering Exposition -Ryobi exhibited many products developed for electric vehicles and mass-produced products such as
bodies and chassis to realize carbon neutrality, and made various proposals that contribute toweight reduction①①eAxle case②

②Battery case
Perforated plate for PHV
Laser welding type③

③eAxle case
（Cut model）④④Taper less
Motor case

⑧PCU case for BEV⑦⑨Trans Axle case for HV⑤Door window
plate⑩Battery case for HV⑨⑥FrontSub frame⑥⑤⑦Cowl top

⑧

⑩

25/43

3. Status by Business Segment & Topics- (1) Die Castings

Die Castings

Initiatives for Weight Reduction and Electrification - Strategic Product Sales Mix Weight-reduction and electrification components accounted for approximately 75% of new orders
in the second quarter of 2022
Orders are steady and expected to become a pillar of future earnings

Sales mix of Body/Chassis and Electrification parts
Body/Chassis parts

Electrification parts

Transmission parts

Engine parts

Others■4.3%■2.9%■■Total

5.3%

7.2%

■■Total14%

FY2020■■Total■■TotalFY2021

7.0%
7.0%
FY2022
Forecast■■Total

22%

12%

41%

10%
FY2024
Forecast

FY2027
Forecast
26/43

3. Status by Business Segment & Topics- (1) Die Castings

Die Castings

Initiatives for Weight Reduction and Electrification- Effect to Sales of Body/Chassis and Electrification parts •Given the stagnant automobile production from 2020 due to the COVID-19 pandemic and semiconductor
shortages, the production volume of the two OEMs will remain flat (compared with 2019)
However, Ryobi sales to the two companies in 2022 are expected to be approximately 2 to 3 times higher thanin 2019
A switch to aluminum was proposed several years prior to the start of mass production, guest engineers weredispatched, prototypes were presented, and the environmental performance of die castings and Ryobi
development capabilities were promoted to win orders••

Unit: %

Trend in production volume of
OEM A company andour sales volume for A company

Trend in production volume of
OEM B company andour sales volume for B company

Unit: ％

300

300

250

250

200

200

150

150

100

100

50

50

0

0
FY 2019
ResultFY 2020
ResultFY 2021
ResultFY 2022
Forecast

FY 2019
ResultFY 2020
ResultFY 2021
ResultFY 2022
Forecast

Production volume of A company

Production volume of B company

Sales volume for A company

Sales volume for B company※ Both production units and sales are indexed with 2019 as 100%
※ Sales figures are based on 2019 and exclude the effects of raw materials and foreign exchange fluctuations 27/43
3. Status by Business Segment & Topics- (1) Die Castings

Die Castings

Initiatives for Weight Reduction and Electrification - Orders Received for Strategic Products -Orders for strategic products remain steadyModels equipped with Ryobi body, chassis, and electrification parts

Toyota Voxy

Mitsubishi Outlander PHEVSAIC-General Motors
Velite 6 PHEV

Toyota LexusRX

Toyota MIRAI FCVSuzuki Spacia

Toyota Aqua

Mazda MX-30 EV

Geely XingYue L Hybrid

Current mass-production initiatives (within 1 year)

Body/Chassis parts

Honda CIVIC

STELLANTIS Peugeot 308
PHEV

Honda Honda e

Subaru Impreza Hybrid

Toyota CH-R

Planned future production initiatives

Product description

Product description

Front door frame

Sub frame

Cowl top panel
Sub frame

Steering parts
Body/Chassis parts

Motor caseElectrification parts

Nissan Maria

Toyota Land Cruiser 300

Shock tower
Steering knucke

Binding plate

Cowl top panel

Battery case

Motor housing

Defarensial retainer

Motor end cover
Converter caseElectrification parts

Inverter case
HEV transmission case
HEV converter housing
PHV transmission caseBattery case28 /43

3. Status by Business Segment & Topics- (2) Builders’ Hardware

Builders’ Hardware

Outlook on the Domestic Builders’ Hardware Market
New residential housing starts and non-residential floor space are both expected toremain at around 850 thousand units and 46 million m2, respectively, from 2022 onward(Unit: Thousands)(Unit: Million of m2)

1,200

60
53

51

52
49

1,000
974

48
44

953

946

884

800

866
812

46

46

46

850

850

850

50

40

New residential housing starts(left axis)
600

400
0

30

Floor space of newly constructed buildings(non-residential purpose)(right axis)

FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022 FY2023 FY2024
Forecast Forecast Forecast

20
0

Source: Ministry of Land, Infrastructure, Transport and Tourism (figures for 2022 and later are Ryobi’s forecasts
29/43

3. Status by Business Segment & Topics- (2) Builders’ Hardware

Builders’ Hardware

Situation of Market Share
Market share in domestic

Source: Ryobi’s forecast

100%
75%

Competitor B
50%
25%

60

60

61

61

62

66

68

74

Competitor A
Ryobi

0%
FY Mar. FY Mar. FY Mar. FY Mar. FY2018 FY2019 FY2020 FY 2021
2015
2016
2017
2018
Examples of properties westarted to deliver in FY2022
Orders received in FY2022••

In March 2021, Competitor B
withdrew from the door closer
business, enabling us to further
increase our sales share
Ryobi’s share in the building
market is over 80% in the Tokyo
metropolitan area and over 60% in
the Kansai area. We areleveraging our high market shareto secure stable sales

Shinagawa development project

Mita 3&4 development project

JP tower OSAKA Umeda
Tranomon &Azabudai project
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Builders’ Hardware

3. Status by Business Segment & Topics- (2) Builders’ Hardware

Initiatives of Sales / Manufacturing
Initiatives to improve profitability• Expand share in the Japanese market
Almost 100% share in the detached house market→ Overall market share of 85%
Aiming for 70% share in the building market• Expand sales of high-value-added products
Propose next-generation core products• Promote production in optimal locations

We are promoting an increase in production in Japan to reduce the risk of high costs
associated with the appreciation of the Chinese yuan, and to ensure a stable supply of
products to customers
We plan to approximately double production of door closers at our automatedproduction facilities in Japan• Further improve productivity

Promote in-house production (in-house production of currently outsourced processed
products)
Promote labor reduction (renewal of assembly and inspection lines)• Revise sales prices

Although we are making efforts to reduce costs to absorb the sharp rise in raw
material prices, we have implemented price revisions (price increases) due to being
unable to absorb the entire cost increase on our own• Expand sales in overseas markets

Retention of spec-in sales in priority markets
Development of new markets
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Builders’ Hardware

3. Status by Business Segment & Topics- (2) Builders’ Hardware

Initiatives to Expand Sales of Strategic Products-Improve recognition of strategic products and enhance functionsExhibited in June 2022 at KENTEN 2022, a general exhibition ofbuilding materials and housing equipment, and introduced strategic
products
RUCAD: electrically operated door controller (equippedwith batteries) linked to external systems

GC-6V is capable of easily opening andsecurely closing even a large door

GCA-4V has a “delayed action”
function which causes the door to startclosing slowly

Enables contactless door opening and closing in avariety of situations by linking to IC cards and facerecognition devices etc.

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3. Status by Business Segment & Topics- (3) Printing Equipment

Printing Equipment

Forecast of the Global Sheet-fed Printing Press Market (All Size)(Unit: Billions of Yen)

600

500

400

504

492

202

212

501

222

517
492

229
230

300

480

377
230

501

235

184

200
302

280

279

288

262

100

250

266

2021

2022
Forecast

193
Digital Press
Sheet-fed Offset Press

0

2015

2016

2017

2018

2019

2020

2023
Forecast

Source: Estimated by RYOBI MHI Graphic Technology Ltd. based on
financial results materials disclosed by manufactures (as of Jul. 2022)

Printing Equipment

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3. Status by Business Segment & Topics- (3) Printing Equipment

Initiatives of Sales / Manufacturing
Initiatives for improving printing press functionality, relationships withcustomers, and profitability• Automation by linking to peripheral equipment
Link to AGV and peripheral equipment systems

Link to post-press equipment• Development of automation, labor-saving, and assistance functions
for printing press
Develop automatic operation functions
Utilize “AI”

• Strengthening of relationship with customers and distributors

Improve customer satisfaction and hold technical exchange meetings
Develop new customers• Appropriately management parts inventory and enhance response
to procurement risks

Multiple purchasing and in-house production of parts and equipmentwith production risks• Development of functions for package printing• Cost reduction of core models
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Printing Equipment

3. Status by Business Segment & Topics- (3) Printing Equipment

Initiatives to Expand the Peripheral Equipment BusinessTranscending the scope of printing equipment manufacturing, we offer proposals for the overall
optimization of printing factories.
We help create “smart factory” via collaboration with peripheral equipment manufacturers.

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Printing Equipment

3. Status by Business Segment & Topics- (3) Printing Equipment

Establishment of a Consortium for Smart Printing Factories
We plan to establish a consortium with peripheral equipment manufacturers, aiming
to achieve sustainable growth by, for example, converting printing factories into
smart factories•

New values will be provided to the printing
industry, not just by RMGT, but throughcollaboration and co-creation that transcends
barriers between printing companies andother companies providing printing materials,
printing equipment, and peripheral
equipment•

All companies participating in the consortium
will aim to continue to grow sustainably as“companies that will continue to be neededby society”
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3. Status by Business Segment & Topics- (4) Integrated Report

Integrated Report

Ryobi Integrated Report 2022
Ryobi Integrated Report 2022 is published to proactively disclose ESG and othernon-financial initiatives, and to help stakeholders understand our medium- to longterm growth potential and strengths〔Main contents〕
・Top Message
・Value creation process
・Strengths cultivated・Medium-term themes and Ryobi initiatives
・Ryobi’s Challenge
・ESG (Environment, Social, Governance)
・Finance Information

Posting in our website (Japanese only)
https://www.ryobi-group.co.jp/ir/library/integrated.html
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3. Status by Business Segment & Topics- (5) Sustainability ESG/SDGs

Sustainability ESG/SGDs

Initiative to Environment
FY2022 Environmental Targets
・Achieve carbon neutrality by 2050
・Curb CO2 emissions from domestic and overseas
bases by 47% from the FY2018 level by 2030 ※Target curb the volume of CO2 emission by 2050

Major measures to become carbon neutral•

Recognize the energy consumption
structure and promote theintroduction of energy-saving
equipment•

Use of renewable energy (solar,hydro-electric, etc.)•

Switch to low-carbon fuels (from fueloil to LNG, etc.)•

Switch to non-fossil energy(hydrogen, ammonia, etc.)

Traditional reduction image

47% reduction※Scope1 + Scope 2

34%
reduction

2013

2018

345kt-CO2 430kt-CO2

2030

226kt-CO2※ CO2 emissions are absolute amounts for Scopes 1 and 2
Reduce by 34% or more compared with FY2013(Domestic: 46% or more. Overseas: 25% or more)

2050

We are developing a CO2
emissions reduction roadmap to
become carbon neutral by 2050
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3. Status by Business Segment & Topics- (5) Sustainability ESG/SDGs

Sustainability ESG/SGDs

Initiative to Environment –Initiatives for reducing CO2 emissionsReduce CO2 emissions by converting the fuelused in aluminum melting furnaces at our
Shizuoka Plant

Optimize combustion conditions by adjustingburner opening and airflow in aluminum
melting furnaces

•
•

•
•

Switch from fuel oil to city gas
CO2 emissions Approx. -4,000t-CO2/year(12,600t-CO2 → 8,600t-CO2 -31.7%)
Image of Melting furnaces

Amount of fuel oil used Approx. -9,800ℓ/year
CO2 emissions Approx. -27t-CO2/year

Image of CO2 emission concentration measurement

Exhaust gas
flow in furnaces

Measurement
position

Atmosphericliberation

Remainaluminumin melting
room
MeltingburnerComparison of CO2 emission by fuel100%

OutletRetentionburner80%
60%

Weekendremainaluminum inretention
room

40%
20%

Measuring
device0%
Heavy oil City Gus

LNG

LPG

Kerosene※Compare CO2 emissions of individual fuels with A-fuel oil as 100%

4. Shareholder Returns

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4. Shareholder Returns

Shareholder Returns
Trends in Dividends per Share and Dividend Payout Ratio(Unit: Yen)

(Unit: %)

100

60
46.1
26.4
24.8
25.4

50
60

70

30

Status of Dividends

20
FY Mar.
2018

FY2018FY2019Dividends per share(left axis)

Dividends
per share
Dividend
payout ratio Along with giving due consideration to maintaining
a stable stream of dividends, the amount ofshareholder returns is determined in light ofprevailing conditions, with an eye to achieving adividend payout ratio of around 30%.

70
40

0

Dividend Policy Ryobi’s basic policy for profit distribution is tomaintain a stable return of profits to shareholders
while securing funds for growth investment alongwith a medium- to long-term improvement inconsolidated operating performance.

FY2020

FY202100

FY2022
Forecast

Dividend payout ratio(right axis)

 Dividends for FY2021 were resumed inconsideration of the return to profitability interms of operating income and free cash
flow, as well as the continuation of stabledividend payments (20 yen per shareannually).
 Dividends of 40 yen per share (annual
dividend) are planned for FY2022.

FY
Mar. 2018

FY2018FY2019FY2020

FY2021

FY2022
Forecast

FY2023
Forecast

¥60

¥70

¥70

¥0

¥20

¥40

24.8%

26.4%

46.1%

－

－

25.4%

Dividend
payoutratio ofaround 30%
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Disclaimer
This material contains future projections regarding such factors as Ryobi’s business plans,
strategies, and operating results.
Said projections reflect Ryobi’s judgements based on information available at the timeof preparation, and therefore, involve inherent risks and uncertainties.
Ryobi’s actual endeavors and operating results may differ from these projections due
to economic conditions, the business environment, trends in market demand, changes inexchange rates, and other factors.

The unauthorized copying or replication of the content, text, or images presented in this pamphlet is strictly prohibited.
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