Ryobi Consolidated Financial Statements for the Fiscal 2010

Ryobi Limited and Consolidated Subsidiaries
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2010

1. Consolidated Balance Sheets
March 31, 2009ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable
Marketable securities
Finished products and purchased goods
Work in process
Raw materials and supplies
Deferred tax assets
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets:
Property, plant and equipment:
Buildings and structures (net)
Machinery and equipment (net)Land
Leased assets (net)
Construction in progress
Other fixed assets (net)Total property, plant and equipment
Intangible fixed assets:
Other intangible fixed assets
Total intangible fixed assets
Investments and other assets:
Investment in securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets-1-(Millions of yen)March 31, 2010

13,767
26,203
1,516
14,102
8,252
6,864
424
4,569
(46)
75,65515,154
31,244
10,362
12,569
8,120
5,815
1,320
2,499
(40)
87,047

20,14825,282
21,643
1,266
6,090
4,247
78,67919,14824,023
21,667
896
5,101
3,000
73,837

1,187
1,187

1,077
1,077

6,993
2,756
2,041
(115)
11,67591,543
167,198

8,804
1,274
1,992
(117)
11,95386,868173,916

Ryobi Consolidated Financial Statements for the Fiscal 2010

March 31, 2009
LIABILITIESCurrent liabilities:
Notes and accounts payable
Short-term borrowings
Current portion of long-term debt
Lease obligations
Income taxes payable
Accrued bonuses
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for revaluation
Accrued severance indemnities
Liabilities from application of equity method
Other long-term liabilities
Total long-term liabilities
Total liabilities:
NET ASSETS
Shareholders’ equity:
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments:
Unrealized gain on available-for-salesecurities
Deferred loss on derivatives under hedge
accounting
Land revaluation reserve
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets-2-(Millions of yen)March 31, 2010

20,16632,912
6,559
393
170
875
8,023
69,101

25,47531,50913,364
402
342
850
6,855
78,801

19,084
970
384
674
6,617
421
1,938
30,09099,192

16,364
566
330
674
6,988
412
1,781
27,118105,920

18,472
23,75036,608(2,354)76,476

18,472
23,75035,007(2,354)74,874

1,088

2,157

(35)
626
(10,982)(9,303)833
68,006167,198(32)
626(10,517)(7,766)887
67,995
173,916

Ryobi Consolidated Financial Statements for the Fiscal 2010

2. Consolidated Statements of Operations

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividends income
Rent income
Exchange gain
Gain on sale of scrap
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Cash discounts
Loss on abandonment of inventories
Depreciation
Exchange losses
Miscellaneous expenses
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sale of fixed assets
Other
Total extraordinary income
Extraordinary losses
Loss on sale or disposal of fixed assets
Loss on devaluation of investment insecurities
Impairment loss
Cumulative effect of lease accounting
standards application
Total extraordinary losses
Income (loss) before income taxes and minority
interests
Income taxes
Current
Deferred
Total income taxes
Gain on minority interests
Net income (loss)

Fiscal Year 2009
Ended March 31, 2009
176,340
152,358
23,981
22,176
1,804(Millions of yen)
Fiscal Year 2010
Ended March 31, 2010
125,940
108,081
17,85918,784
(925)

53
170
567
—
125
1,087
2,004

97
93
488
328
109
433
1,552

1,159
159
30
450
283
155
2,239
1,570

1,285
151
48
332
—
121
1,939
(1,312)

46
1
48

13
—
13

221

139

317
85

—

106
731

—
143

887

(1,442)

414
313
727
0
160

475
(354)
120
38
(1,601)-3-

3

Ryobi Consolidated Financial Statements for the Fiscal 2010

3. Consolidated Statements of Changes in Net Assets

Fiscal Year 2009
Ended March 31, 2009

(Millions of yen)
Fiscal Year 2010
Ended March 31, 2010

18,472

18,472—
18,472—
18,472

23,75023,750(0)(0)
23,750——23,75039,23436,608(785)—(2,001)160(1,840)36,608—(1,601)(1,601)35,007(1,425)(2,354)

(929)
0
(929)
(2,354)(0)—(0)(2,354)80,031

76,476(785)—(2,001)160(929)
0(2,770)76,476—(1,601)(0)—(1,601)
74,874

Shareholders' equity
Common stock
Balance at beginning of year
Changes of items during the year
Total changes of items during the year
Balance at end of year
Capital surplus
Balance at beginning of year
Changes of items during the year
Disposal of treasury stock
Total changes of items during the year
Balance at end of year
Retained earnings
Balance at beginning of year
Effect of changes in accounting policies
applied to foreign subsidiaries
Changes of items during the year
Dividends from surplus
Net income (loss)
Total changes of items during the year
Balance at end of year
Treasury stock
Balance at beginning of year
Changes of items during the year
Acquisition of treasury stock
Disposal of treasury stock
Total changes of items during the year
Balance at end of year
Total shareholders' equity
Balance at beginning of year
Effect of changes in accounting policies
applied to foreign subsidiaries
Changes of items during the year
Dividends from surplus
Net income (loss)
Acquisition of treasury stock
Disposal of treasury stock
Total changes of items during the year
Balance at end of year

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Ryobi Consolidated Financial Statements for the Fiscal 2010

Fiscal Year 2009
Ended March 31, 2009

(Millions of yen)
Fiscal Year 2010
Ended March 31, 2010

3,094

1,088

(2,005)(2,005)
1,088

1,068
1,068
2,157

(40)

(35)

4
4
(35)

3
3
(32)

626

626

—
—
626

—
—
626

(6,867)(10,982)(4,114)(4,114)(10,982)464
464(10,517)(3,187)(9,303)(6,116)(6,116)(9,303)

1,536
1,536
(7,766)

874

833

(40)
(40)
833

54
54
887

Valuation and translation adjustments
Unrealized gain on available-for-salesecurities
Balance at beginning of year
Changes of items during the year
Net changes of items other thanshareholders' equity
Total changes of items during the year
Balance at end of year
Deferred gains or losses on derivatives underhedge accounting
Balance at beginning of year
Changes of items during the year
Net changes of items other thanshareholders' equity
Total changes of items during the year
Balance at end of year
Land revaluation reserve
Balance at beginning of year
Changes of items during the year
Net changes of items other thanshareholders' equity
Total changes of items during the year
Balance at end of year
Foreign currency translation adjustments
Balance at beginning of year
Changes of items during the year
Net changes of items other thanshareholders' equity
Total changes of items during the year
Balance at end of year
Total valuation and translation adjustments
Balance at beginning of year
Changes of items during the year
Net changes of items other thanshareholders' equity
Total changes of items during the year
Balance at end of year
Minority interests
Balance at beginning of year
Changes of items during the year
Net changes of items other thanshareholders' equity
Total changes of items during the year
Balance at end of year

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Ryobi Consolidated Financial Statements for the Fiscal 2010

Fiscal Year 2009
Ended March 31, 2009

(Millions of yen)
Fiscal Year 2010
Ended March 31, 2010

77,71868,006(785)—(2,001)
160
(929)
0

—
(1,601)(0)—(6,156)(8,926)68,0061,591(10)67,995

Total net assets
Balance at beginning of year
Effect of changes in accounting policies
applied to foreign subsidiaries
Changes of items during the year
Dividends from surplus
Net income (loss)
Acquisition of treasury stock
Disposal of treasury stock
Net changes of items other thanshareholders' equity
Total changes of items during the year
Balance at end of year

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Ryobi Consolidated Financial Statements for the Fiscal 2010

4. Consolidated Statements of Cash Flows

Cash flows from operating activities:
Income (loss) before income taxes and minority
interests
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful
accounts
Decrease in reserve for bonuses
Increase in accrued severance indemnities
Interest and dividends income
Interest expenses
Loss on devaluation of investment in securities
Loss on sale or disposal of fixed assets
Decrease (increase) in notes and accounts
receivable
Decrease in inventories
Decrease (increase) in other current assets
Increase (decrease) in notes and accounts payable
Other increases (decreases) in current liabilities
Other
SubtotalInterest and dividends received
Interest paid
Income taxes (paid) refund
Net cash provided by operating activities
Cash flows from investing activities:
Payment for purchases of property, plant andequipment
Proceeds from sale of property, plant andequipment
Payment for purchases of marketable securities
Proceeds from sale of marketable securities
Payment for purchase of investment in securities
Payment for time deposits
Proceeds from repayment of time deposits
Other
Net cash used in investing activities
Cash flows from financing activities:
Increase (decrease) in short-term borrowings, net
Proceeds from long-term debt
Repayment of long-term debt
Acquisition of treasury stock
Proceeds from sale of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other
Net cash provided by financing activities
Foreign currency translation adjustments on cash
and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

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Fiscal Year 2009
Ended March 31, 2009

(Millions of yen)
Fiscal Year 2010
Ended March 31, 2010

887
15,35885(1,442)
12,429—57(1,316)
296
(224)
1,159
317
174

(3)
(24)
371
(191)
1,285
3
126

16,228
5,841
498(22,419)(3,355)(40)
13,550227(1,100)(4,553)
8,122(4,983)
2,774
(184)
5,234
296
(166)
15,524190(1,323)
1,917
16,308(17,132)(8,169)121(1,340)1,340(105)(2,485)1,685(171)(18,088)32(1,840)1,840(52)(2,715)
3,719(116)(7,301)

13,1108,850(5,956)(929)
0(2,001)(0)(451)
12,622(1,471)
10,558(6,538)
(0)
—
—
—
(401)
2,146

(711)
1,945
10,13812,084

81
11,23512,084
23,319

Ryobi Consolidated Financial Statements for the Fiscal 2010

5. Segment Information(1) Industry Segment Information
For the Fiscal Year Ended March 31, 2009 (April 1, 2008 to March 31, 2009)(Millions of yen)
Die
Castings

Printing
Equipment

Power Tools
and Builders’Hardware122,774

29,43624,129176,340

144

—

0

145

(145)

—

Total

122,918

29,43624,130176,485(145)

176,340

Operating Costs andExpenses

122,460

28,88023,334

174,675(139)

174,535

458

555

796

1,810

(5)

1,804

Total Assets

96,09527,84023,562

147,498

19,700167,198

Depreciation andAmortization

13,559978820

15,358—15,358

Impairment Loss

85

—

—

85

—

85

14,613316

657

15,587—

15,587

Net Sales:(1) UnaffiliatedCustomers(2) Intersegment

Operating Income

Capital Expenditure

Total

Eliminations/ Corporate—

Consolidated

176,340

For the Fiscal Year Ended March 31, 2010 (April 1, 2009 to March 31, 2010)(Millions of yen)
Die
Castings

Printing
Equipment

Power Tools
and Builders’Hardware

86,13918,101

21,699125,940

124

—

2

126

(126)

—

86,263

18,101

21,701126,066(126)

125,940

87,07819,492

20,419126,991(126)

126,865(815)(1,391)

1,281

(925)

0

(925)

Total Assets

97,227

24,90822,961145,097

28,818173,916

Depreciation andAmortization

10,860819

748

12,429—12,429

Capital Expenditure

6,425

120

512

7,058

—

7,058

Net Sales:(1) UnaffiliatedCustomers(2) Intersegment
Total
Operating Costs andExpenses
Operating Income(Loss)

Total

Eliminations/ Corporate—

Consolidated

125,940

Notes:
1. Industry segments are classified on the basis of organization.
2. Main products of each industry segment:
Die Castings: die cast product and aluminum cast
Printing Equipment: offset printing presses, peripherals, etc.
Power Tools and Builders’ Hardware: power tools, lawn and garden equipment, door
closers, hinges and architectural hardware-8-

Ryobi Consolidated Financial Statements for the Fiscal 2010

(2) Geographical Segment Information
For the Fiscal Year Ended March 31, 2009 (April 1, 2008 to March 31, 2009)(Millions of yen)

Net Sales:(1) UnaffiliatedCustomers(2) Intersegment
Total
Operating Costs andExpenses
Operating Income(Loss)
Total Assets

Eliminations/ Corporate

Japan

The
Americas

Other

Total

147,866

21,277

7,195

176,340

—

3,311

—

7,096

10,407(10,407)—

151,178

21,277

14,292

186,748(10,407)

176,340

148,202

21,662

14,952

184,816(10,281)

174,535

2,975

(384)

(659)

1,931

(126)

1,804

119,966

17,916

15,372

153,255

13,943

167,198

Consolidated

176,340

For the Fiscal Year Ended March 31, 2010 (April 1, 2009 to March 31, 2010)(Millions of yen)
Eliminations/ Corporate

Japan

The
Americas

Other

Total

106,841

14,7494,348

125,940

—

1,799

—

5,932

7,732

(7,732)—

Total

108,641

14,74910,281

133,672(7,732)125,940

Operating Costs andExpenses

109,451

14,795

10,306

134,554(7,688)

126,865

(809)

(45)

(25)

(881)

(43)

(925)

115,039

17,29419,001

151,334

22,581

173,916

Net Sales:(1) UnaffiliatedCustomers(2) Intersegment

Operating Loss
Total Assets

Consolidated

125,940

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:(1) The Americas: United States, Mexico(2) Other: United Kingdom, China-9-

Ryobi Consolidated Financial Statements for the Fiscal 2010

(3) Overseas Sales

For the Fiscal Year Ended March 31, 2009 (April 1, 2008 to March 31, 2009)(Millions of yen)
The Americas
Overseas Sales

Europe27,362Other

15,597

Total

8,628

176,340

Consolidated Net Sales
Ratio of Overseas Sales toConsolidated Net Sales (%)

51,587

15.5

8.9

4.9

29.3

For the Fiscal Year Ended March 31, 2010 (April 1, 2009 to March 31, 2010)(Millions of yen)
The Americas
Overseas Sales

Europe17,644

Other

5,352

Total

8,671

125,940

Consolidated Net Sales
Ratio of Overseas Sales toConsolidated Net Sales (%)

31,668

14.0

4.2

6.9

25.1

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:(1) The Americas: United States, Mexico, other(2) Europe: United Kingdom, Germany, other(3) Other: China, Australia, other
3. Overseas sales represent total sales outside Japan of the parent company and its
consolidated subsidiaries (excluding intra-group sales).

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