Ryobi Consolidated Financial Statements for Fiscal 2014

Ryobi Limited and Consolidated Subsidiaries
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2014
These consolidated financial statements are based on the Japanese financial statements submitted to the Tokyo
Stock Exchange.

1. Consolidated Balance Sheets
March 31, 2013ASSETS
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 assetsFixed assets:
Property, plant and equipment:
Buildings and structures (net)
Machinery and equipment (net)Land
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
OtherAllowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets-1-(Millions of yen)March 31, 2014

17,846
39,6896,197
14,163
10,063
7,665
1,005
6,134
(19)
102,746

18,41948,096
1,493
15,84012,401
11,229
1,184
5,041
(79)
113,626

24,99636,38022,3099,955
3,238
96,88031,286
48,64523,224
4,523
3,572
111,253

1,642
1,642

2,467
2,467

9,649
2,071
1,804
(68)
13,456111,979
214,725

11,858
3,874
1,979
(83)
17,628131,349
244,976

Ryobi Consolidated Financial Statements for Fiscal 2014

March 31, 2013
LIABILITIESCurrent liabilities:
Notes and accounts payable
Short-term borrowings
Current portion of long-term debt
Income taxes payable
Accrued bonuses
Accrued bonuses to directors
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt
Deferred tax liabilities
Deferred tax liabilities for revaluation
Accrued severance indemnities
Net defined benefit liability
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
Accumulated other comprehensive income(loss) :Unrealized gain on available-for-salesecurities
Deferred loss on derivatives under hedge
accounting
Land revaluation reserve
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive
income (loss)
Minority interests
Total net assets
Total liabilities and net assets-2-(Millions of yen)March 31, 2014

30,53932,201
8,734
386
1,302
—
14,42487,58835,171
37,277
12,159
1,753
1,569
42
11,654
99,627

38,165
402
630
5,876
—
403
1,891
47,369134,958

35,920
1,203
630
—
7,567
—
3,592
48,914
148,542

18,472
23,75743,364(2,333)
83,26018,472
23,757
46,661(2,334)86,556

2,880

4,160

(51)
655
(8,293)
—(24)
655
763
(544)

(4,808)1,316
79,767214,725

5,010
4,866
96,433244,976

Ryobi Consolidated Financial Statements for Fiscal 2014

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(1) Consolidated Statements of Income(Millions of yen)
Fiscal Year 2013
Fiscal Year 2014
Ended March 31, 2013
Ended March 31, 2014
Net sales
166,566
199,697
Cost of sales
141,620
169,539
Gross profit
24,94630,158Selling, general and administrative expenses
21,63922,493Operating income
3,307
7,665
Non-operating income
Interest income
3241
Dividends income
147
174
Rent income
380
309
Exchange gain
332
449
Subsidy income—327
Gain on sale of scrap
172
305
Cash dividends for insurance
124
111
Miscellaneous income
485
320
Total non-operating income
1,676
2,041
Non-operating expenses
Interest expenses
1,369
1,706
Cash discounts
197
207
Loss on abandonment of inventories
140275
Depreciation
86
32
Miscellaneous expenses
208
219
Total non-operating expenses
2,002
2,442
Ordinary income
2,980
7,264
Extraordinary income
Gain on sale of fixed assets
522
Gain on negative goodwill
60
Total extraordinary income
1222
Extraordinary losses
Loss on disposal of fixed assets
317
194
Impairment loss on fixed assets
17
1,611
Loss on devaluation of investment insecurities
44—
Loss on devaluation of golf club membership—45
Total extraordinary losses
379
1,850
Income before income taxes and minority interests
2,613
5,436
Income taxes
Current
793
2,356
Deferred(376)(1,274)
Total Income taxes
416
1,081
Income before gain on minority interests
2,196
4,355
Gain on minority interests
187222
Net income
2,009
4,132-3-Ryobi Consolidated Financial Statements for Fiscal 2014

(2) Consolidated Statements of Comprehensive Income

Income before gain on minority interests
Other comprehensive income
Unrealized gain on available-for-salesecurities
Deferred loss on derivatives under hedge
accounting
Foreign currency translation adjustments
Share of other comprehensive income ofassociates accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Minority interests-4-

Fiscal Year 2013
Ended March 31, 2013
2,196

(Millions of yen)
Fiscal Year 2014
Ended March 31, 2014
4,355

989

1,424(14)
3,692

26
9,056

5
4,672
6,869

—
10,50814,8636,598
271

14,495367

Ryobi Consolidated Financial Statements for Fiscal 2014

3. Consolidated Statements of Changes in Net Assets
For the Fiscal Year Ended March 31, 2013
(Millions of yen)
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

Treasury stock

Total shareholders'equity

18,472

23,75042,810(2,360)82,672

Balance at
beginning of year
Changes of items
during the year
Dividends fromsurplus
Net income
Acquisition oftreasury stock
Disposal oftreasury stock
Net changes of
items other thanshareholders’equityTotal changes of
items during theyear
Balance at end ofyear(1,456)(1,456)

2,009

2,009

7(0)

(0)

2734

—

7553

26

587

18,472

23,75743,364(2,333)

83,260

Accumulated other comprehensive loss

Balance at
beginning of year
Changes of items
during the year
Dividends fromsurplus

Unrealized
gain onavailablefor-salesecurities

Deferred
losses onderivatives
under hedge
accountingLandrevaluation
reserve

Foreigncurrencytranslation
adjustments

1,969

(36)

655

(11,985)

Remeasurementsof defined benefit
plans

—

Total
accumulated
othercomprehensive
loss

Minority
interests

Total net
assets(9,396)

1,075

74,350(1,456)

Net income
Acquisition oftreasury stock
Disposal oftreasury stock
Net changes of
items other thanshareholders’equityTotal changes ofitems during theyear
Balance at end ofyear

2,009
(0)
34910

(14)

—

3,692

—

4,588

240

4,828910(14)—

3,692—

4,588

240

5,416

2,880(51)655(8,293)—(4,808)

1,316

79,767-5-Ryobi Consolidated Financial Statements for Fiscal 2014

For the Fiscal Year Ended March 31, 2014
(Millions of yen)
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

Treasury stock

Total shareholders'equity18,472

23,75743,364(2,333)

83,260

Balance at
beginning of year
Changes of items
during the year
Dividends fromsurplus
Net income
Acquisition oftreasury stock
Change of scopeof consolidation
Net changes ofitems other thanshareholders’equityTotal changes of
items during theyear
Balance at end ofyear

(971)

(971)

4,132

4,132
(0)

(0)

135

135

—

—

3,296

(0)

3,296

18,472

23,757

46,661(2,334)86,556

Accumulated other comprehensive loss

Balance at
beginning of year
Changes of items
during the year
Dividends fromsurplus

Unrealized
gain onavailablefor-salesecurities

Deferred
losses onderivatives
under hedge
accountingLandrevaluation
reserve

Foreigncurrencytranslation
adjustments

2,880

(51)

655

(8,293)Remeasurementsof defined benefit
plans—

Total
accumulated
othercomprehensivelossMinority
interests

Total net
assets(4,808)1,316

79,767(971)

Net income
Acquisition oftreasury stock
Change of scopeof consolidation
Net changes of
items other thanshareholders’equityTotal changes of
items during theyear
Balance at end ofyear

4,132
(0)
135

1,280

26

—

9,056(544)

9,819

3,550

13,369

1,280

26

—

9,056(544)

9,819

3,550

16,666

4,160

(24)

655

763

(544)

5,010

4,866

96,433-6-Ryobi Consolidated Financial Statements for Fiscal 2014

4. Consolidated Statements of Cash Flows

Cash flows from operating activities:
Income before income taxes and minority
interests
Depreciation and amortization
Impairment loss on fixed assets
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in reserve for bonuses
Decrease in accrued severance indemnities
Increase in net defined benefit liability
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
Increase in inventories
Decrease (increase) in other current assets
Increase (decrease) in notes and accounts payable
Other increases (decreases) in current liabilities
OtherSubtotal
Interest and dividends received
Interest paid
Income taxes paid
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
OtherNet cash used in investing activities
Cash flows from financing activities:
Increase in short-term borrowings, net
Proceeds from long-term debt
Repayment of long-term debt
Acquisition of treasury stock
Cash dividends paid
OtherNet cash provided by (used in) financing activities
Foreign currency translation adjustments on cash
and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Net increase in cash and cash equivalents from newly
consolidated subsidiary
Net increase in cash and cash equivalents from newly
corporate division
Cash and cash equivalents at end of year-7-

Fiscal Year 2013
Ended March 31, 2013

(Millions of yen)
Fiscal Year 2014
Ended March 31, 2014

2,613
10,932
17

5,436
13,141
1,611(8)
(303)
(229)
—
(180)
1,369
44
312

72
263
(5,903)
6,814
(215)
1,706
—
171

685
(185)
(1,909)(2,514)
(803)
12
9,851
181
(1,300)(1,966)
6,766(4,304)(2,017)
1,082
1,291
675
(1,525)18,300216(1,775)(336)
16,404(23,832)(20,819)

191(1,340)1,340(23)(2,775)2,650(518)(24,308)

191(1,340)1,340(30)(2,775)2,775(437)(21,096)

2,197
22,687(6,699)(0)(1,451)(134)
16,5992,193
7,211(9,287)
(0)
(968)
(82)
(934)

272
(669)
22,513

1,086(4,539)21,844—98—
21,844309
17,711

Ryobi Consolidated Financial Statements for Fiscal 2014

5. Segment Information(1) Industry Segment Information
For the Fiscal Year Ended March 31, 2013
(Millions of yen)
Die
Castings

Power Tools
and Builders’HardwarePrinting
Equipment

Total

126,673

24,30915,584

166,566

Intersegment

132

1—

133

(133)

—

Total

126,805

24,31015,584

166,700(133)

166,566

Operating income (loss)

2,242

1,776(711)

3,307

(0)

3,307

150,281

25,985

17,477

193,745

20,980214,725

Depreciation andamortization

9,766

656

510

10,932—

10,932

Capital expenditure

26,545842

130

27,517—27,517

Eliminations/ Corporate

Consolidated

Net sales:
Unaffiliated customers

Total assets—

166,566

For the Fiscal Year Ended March 31, 2014
(Millions of yen)
Die
Castings

Power Tools
and Builders’HardwarePrinting
Equipment

Other

Total

Unaffiliatedcustomers

154,480

25,96019,027229

199,697

Intersegment

128

7—

30166(166)

—

Total

154,608

25,96719,027259

199,864(166)

199,697

Operating income

6,250

1,103

305

6

7,665

(0)

7,665

175,041

25,866

23,7971,358

226,064

18,912244,976

11,994

696

432

18

13,141—

13,141

15,353

611

249

13

16,228—

16,228Eliminations/ Corporate

Consolidated

Net Sales:

Total assets
Depreciation andamortization
Capitalexpenditure-8-—

199,697

Ryobi Consolidated Financial Statements for Fiscal 2014(2) Information by Region
For the Fiscal Year Ended March 31, 2013
a. Net sales(Millions of yen)JapanThe Americas

112,306

Other31,022

Total

23,237

166,566

Note: Net sales are classified by country and region based on customer location.
b. Property, plant and equipment(Millions of yen)JapanThe Americas

46,817

Asia

11,396

Other

34,948

Total

3,717

96,880For the Fiscal Year Ended March 31, 2014
a. Net sales(Millions of yen)Japan

The Americas

119,278

Other

39,624

Total

40,794

199,697

Note: Net sales are classified by country and region based on customer location.
b. Property, plant and equipment(Millions of yen)Japan

45,694The Americas

Asia

13,23947,169

-9-

Other

5,149

Total

111,253