Ryobi Limited

Financial Results Presentation
for the Six Months
Ended June 30, 2024
August 8, 2024

Contents
1. Results for the Six Months Ended
June 30, 2024

3

2. Forecasts for the Fiscal Year Ending
December 31, 2024

12

3. Status by Business Segment & Topics

19(1) Die Castings(2) Builders’ Hardware(3) Printing Equipment

4. Initiatives to improve corporate value
and market valuation

33

2/46

1. Results for the Six Months
Ended June 30, 2024

1. Results for the Six Months Ended June 30, 2024

Highlights of Financial Results➢ Consolidated results:

Sales and profits increased compared to the previous corresponding period

Die Castings• Sales increased both in Japan and overseas. Although some automotive manufacturers suspended
production and shipments, sales increased thanks to recovering domestic and overseas automotive
production and higher yen-based sales of overseas subsidiaries due to the weak yen.
• Growth in sales boosted profits, despite increasing labor costs and other factors.

Builders’ Hardware• Sales increased both in Japan and overseas.
Profits fell due to rising procurement costs of overseas production.

Printing Equipment• Sales increased both in Japan and overseas.
Profits were slightly higher due to the impact of rising raw material prices.

➢ FY2024 Forecasts• Sales are expected to increase thanks to the recovery in automotive production.
Sales to set another record high, exceeding 300 billion yen for the first time.
• Despite the impact of increasing labor costs, remaining high energy and rising raw material prices, higher
sales will bring growth in operating income. (No changes from the last announcement on February 13th.)➢ Shareholder Returns• For FY2024, the interim dividend is 42.5 yen per share and the year-end dividend is to be 42.5 yen per
share for an annual dividend of 85 yen per share.
• 5 yen higher than in the previous year, 5 yen higher than in the initial forecast.
4/46

Results Summary

1. Results for the Six Months Ended June 30, 2024

• Both sales and profits increased from the previous corresponding period
thanks to recovering in domestic and overseas automotive production.
• Under the uncertain situation, sales activities, measures intended to lower
costs, improved productivity and business efficiency were promoted.
(Unit: Billions of Yen)FY2023 2Q

FY2024 2Q
ChangeForecasts

Change(vs. forecasts)

Results

Results

Net sales

129.8

144.6

Operatingincome

4.8

5.2

0.3
(7.1%)

5.6−0.4(−7.3%)

Ordinary
income

6.1

6.7

0.6
(10.2%)

5.5

1.2(21.6%)Net income
attributable toowners ofparent

4.3

4.8

0.4
(10.2%)

4.0

0.8(19.3%)

14.8(11.4%)(Announced on Feb. 13)

150.0

−5.4
(−3.6%)

5/46

1. Results for the Six Months Ended June 30, 2024

Analysis of Changes in Net Sales

Sales increased by 14.8 billion yen due to an increase in die casting production
volume and the impact of the weak yen.
(Unit: Billions of Yen)

Increase inproduction,
etc.
+8.3

Currency
effects+8.2
Raw material(aluminum) price
−1.7

144.6
129.8

0

FY2023 2Q

FY2024 2Q

Exchange rates (average for the period)

USD

GBP

CNY

THB

FY2023 2Q¥134.42¥164.96¥19.39¥3.92

FY2024 2Q¥151.20¥191.15¥20.93¥4.20
6/46

1. Results for the Six Months Ended June 30, 2024

Analysis of Changes in Operating Income• Growth in sales boosted profits, despite increasing labor costs in Japan,
Americas and Europe.
• Sales increase, etc. includes recovery of energy costs and other factors.
(Unit: Billions of Yen)

Sales
increase, etc.

Labor
expenses

−2.9

+4.1

(Breakdown of currency effects)• Translation from overseas subsidiaries +0.5
• Export/import effects−0.3
Depreciation

Currency
effects−0.1+0.2
Other fixed
costs

−0.8
4.8

(Main breakdown of other fixed costs)• Repairs and maintenance −0.3
• Supplies expenses
−0.2

5.2

FY2024 2Q

FY2023 2Q
Exchange rates (average for the period)

USD

GBP

CNY

THB

FY2023 2Q¥134.42¥164.96¥19.39¥3.92

FY2024 2Q¥151.20¥191.15¥20.93¥4.20
7/46

1. Results for the Six Months Ended June 30, 2024

Trends in Sales and Operating Income (Consolidated)• Sales in the second quarter grew from the first quarter thanks to the recovery in automotive production.
• Profits decreased due to higher labor costs and exhibition expenses in Printing equipment.

79.5

80

Sales

60

57.4

68.2

73.4

69.9

74.7

8

61.6

56.2

6
4.1

40

3.6

3.7

2.9

2.7

4
2.7

2.5

1.9

20

2

0.9

0

0
-0.7

-2

(20)
1Q

2Q

3Q

4Q

FY2022
Sales (left axis)

1Q

2Q

3Q

4Q

FY2023

1Q

2Q

FY2024

Operating income (right axis)
8/46

Operating income

65.7

70.2

(Unit: Billions of Yen)

1. Results for the Six Months Ended June 30, 2024

Results by Business Segment
Die Castings:

Higher sales and higher profits thanks to the recovery in automotive production
and the impact of the weak yen.
Builders’ Hardware: Sales increased, but profits declined due to higher procurement costs foroverseas production and other factors.
Printing Equipment: Sales increased, but profits were slightly higher due to the impact of rising raw
material prices.
(Unit: Billions of Yen)FY2023 2Q
Results

Results

Net sales

129.8

144.6

Die castings

113.6

127.2

Builders’
hardware

5.2

5.3

Printing
equipment

11.0

12.0

Operatingincome4.8

5.2

Die castings

4.4

4.9

Builders’
hardware

0.1

−0.1

Printing
equipment

0.4

0.4

FY2024 2Q
Forecasts
Change(Announced on Feb. 13)

14.8(11.4%)
13.6(12.0%)
0.1(2.5%)
1.0(9.6%)
0.3(7.1%)
0.5(11.5%)
−0.2
(—)
0.0
(2.1%)

150.0
132.2
5.3

12.5
5.6
5.5
0.1
0.1

Change(vs. forecasts)−5.4(−3.6%)−5.0(−3.8%)
0.0(0.9%)−0.5(−3.9%)−0.4(−7.3%)−0.6(−11.4%)
−0.2
(—)
0.3
(297%)
9/46

1. Results for the Six Months Ended June 30, 2024

Consolidated Balance Sheet• Total assets increased by 16.1 billion yen compared to the previous year, of which 16.2 billion yen
was due to the impact of foreign exchange fluctuations.
• Of the 17.2 billion yen increase in total net assets, 11.4 billion yen is due to foreign exchange
fluctuations.

(Unit: Billions of Yen)FY2023

FY2024 2Q

156.6

159.4

2.8

6.9

27.6

30.6

3.0

1.0

64.3

60.1

−4.2

2.9

0.7

0.7

0.0

—

Inventories

59.9

64.2

4.2

2.9

Other

4.1

3.9

−0.2

0.1

Non-current assets
Property, plant andequipment

162.2

175.5

13.3

123.4

130.1

Intangible assets

2.6

Current assets
Cash and deposits
Notes andaccounts
receivable – trade
Securities

Investments andother assets
Deferred assets
Total assets

ChangeCurrency
Translation
EffectCurrency
Translation
EffectFY2023

FY2024 2Q

Change

117.9

115.4

−2.5

4.0

50.9

49.5

−1.5

1.3

46.2

42.4

−3.8

2.3

20.8

23.6

2.8

0.4

40.2

41.6

1.4

0.9

24.0

23.6

−0.5

0.6

9.3

Other
Non-current
liabilities
Long-term
borrowings
Other

16.2

18.0

1.9

0.2

6.7

8.1

Shareholders’ equity

124.7

128.1

3.4

1.0

2.6

0.0

0.1

26.6

40.4

13.8

10.3

36.1

42.8

6.7

1.1

9.4

9.5

0.1

—

—

—

—

—

160.7

177.9

17.2

11.4

318.8

335.0

16.1

16.2

318.8

335.0

16.1

16.2

Current liabilities
Notes andaccounts payable –trade
Short-termborrowings

Accumulated othercomprehensive
incomeNon-controllinginterests
Total net assets
Total liabilities andnet assets

USD

GBP

CNY

THB

FY2023¥141.83¥180.68¥19.93¥4.13

FY2024 2Q¥161.07¥203.48¥22.04¥4.36

Exchange rates (as of end of period)

10/46

1. Results for the Six Months Ended June 30, 2024

Change in Cash Flows• Operating CF exceeded Investing CF, resulting in positive free CF.
• Free cash flow is applied to repayments of borrowings, dividend payments,and other disbursements/expenses.
(Unit: Billions of Yen)

Free CF +11.1
Operating CF +17.8

Investing CF−6.7

Financing CF
−9.3

Other

+1.6
Depreciation

26.4

Net
incomebeforeincometax+9.5

Capitalinvestment

−6.4

Other

Dividends,
etc.

−0.3

−1.7
Borrowing,
etc.

−7.6

Exchange
conversion

+1.0
29.3

+6.7

FY2023
Balance

FY2024 2Q
Balance11/46

2. Forecasts for the Fiscal YearEnding December 31, 2024

2. Forecasts for the Fiscal Year Ending December 31, 2024

Forecasts• No changes from the last announcement on February 13th.
• Sales are expected to increase thanks to the recovery in automotive production.
• Operating income is expected to increase due to higher sales. Ordinary income andnet income figures are expected to decrease due to lower foreign exchange gains
and other factors.
(Unit: Billions of Yen)FY2023

FY2024

Results

Forecasts

ChangeNet sales

282.7

305.0

22.3
(7.9%)

Operatingincome

12.2

13.0

0.8
(6.4%)

Ordinary
income

13.9

12.8

−1.1
(−7.7%)

9.0−1.1(−11.0%)Net income
attributable toowners ofparent

10.1

13/46

2. Forecasts for the Fiscal Year Ending December 31, 2024

Forecasts by Business Segment
Die Castings:
Builders’ Hardware:
Printing Equipment:

Automotive production is expected to maintain its current course of recovery in thesecond half. Profits are expected to increase due to the higher sales.
Higher sales both in Japan and overseas. Reversing course from losses
sustained in the first half to profits due to higher sales. Profits are expected toincrease.
Higher sales both in Japan and overseas. Profits are expected to decrease due tothe effects of rising raw material prices and exhibition expenses.
(Unit: Billions of Yen)FY2023Results

FY2024
Forecasts

Net sales

282.7

305.0

Die castings

247.6

267.7

10.8

11.0

24.1

26.3

Operating income

12.2

13.0

Die castings

10.9

12.2

0.2

0.3

1.1

0.5

Builders’
hardwarePrinting
equipment

Builders’
hardwarePrinting
equipment

Change22.3(7.9%)
20.1(8.1%)
0.2(1.6%)
2.2(9.2%)
0.8(6.4%)
1.3(11.8%)
0.1(74.3%)−0.6(−56.0%)14/46

2. Forecasts for the Fiscal Year Ending December 31, 2024

Trends in Sales and Operating Income (Die Castings)• Full-year sales are expected to increase both in Japan and overseas due to the continued recovery
in automotive production.
• Full-year sales are expected to reach record high due in part to new product launches and otherfactors.
(Unit: Billions of Yen)

134.0
117.6

Sales

100

81.2

82.1

87.8

140.5
127.2

113.6

98.2

10
7.3

6.5

64.6

50

4.1
1.9

4.9

4.4

5

1.2

0

0
−0.4

-50

15

−1.1

−3.5
1H

Operating income

150

-5
2H

1H

2H

1H

2H

1H

2H

1H

2H
(Forecast)

FY2020

FY2021

Sales (left axis)

FY2022

FY2023Operating income (right axis)

FY202415/46

2. Forecasts for the Fiscal Year Ending December 31, 2024

Analysis of Changes in Operating Income Forecast• Labor expenses will increase in Japan and overseas.
• Other fixed costs also will increase due to increased semi-variable costs resulting from increased
production volume.
• Operating income is expected to increase due to continued efforts for cost reduction andproductivity improvement, despite increased expenses.
(Unit: Billions of Yen)

Sales
increase,
etc.

Labor
expenses

Depreciation

−0.5

−5.5

+9.0

Other fixed
costs

−2.2
(Main breakdown of other fixed costs)• Utilities−0.8• Supplies expenses−0.4• Repairs and maintenance −0.4

12.2

13.0

FY2024
Forecast

FY2023ResultExchange rates(average for the period)
FY2023 Result

USD

GBP

CNY

THB

¥140.69¥174.49¥19.83¥4.03

FY2024 Forecast

¥145

¥190

¥20.5

¥4.0

Annual impact of yen appreciation on
operating income (1% higher than forecasts)
USD− ¥50 million
GBP− ¥10 million
CNY+ ¥20 million
THB− ¥10 million
16/46

2. Forecasts for the Fiscal Year Ending December 31, 2024

Trends in Capital Expenditures and Depreciation• For FY2024, investment is expected to be 24.0 billion yen; depreciation is expected to be 19.0
billion yen.
• Increased from the previous year due to investments to expand production capacity andintroduce new technologies in Japan (various equipment relating to giga casting machine, andnew building for head quarter, etc.) and overseas.
Cumulative results through 1st half
Capital Expenditures ：7.9
Depreciation：9.5

30(Unit: Billions of Yen)

24.0

25
20

17.4

17.2

16.4

15

16.5 15.4

5

25

19.0

18.5
13.9

13.0

10

0

18.6 18.3

16.4
12.5

20.3

18.2

11.9

Capital Depreciation
Expenditures

Capital Depreciation
Expenditures

Capital Depreciation
Expenditures

Capital Depreciation
Expenditures

FY2020

FY2021

FY2022

FY2023

FY2024

Builders’ Hardware

Printing Equipment

10
5

Capital Depreciation
Expenditures

Die Castings

20
15

17.6

17.5 17.5

30

Other

0

Forecast
17/46

2. Forecasts for the Fiscal Year Ending December 31, 2024

Trends in Interest-Bearing Debt and D/E Ratio• Interest-bearing debt at the end of FY2024 is expected to be 70.0 billion yen (no change fromprevious forecast).
• D/E ratio is expected to remain below 0.5 times.
(Unit: Billions of Yen)

(Unit: Times)

80

0.8
72.5

70.3

61.9

60

74.4
70.2

70.0

61.9
0.62

0.61

0.53

73.8

0.6
0.60
0.55

0.51
0.46

400

FY 3/2018

FY2018FY2019FY2020

FY2021

Interest-Bearing Debt (left axis)

Borrowing dependence(Interest-bearing
debt/total assets)

FY2022

FY2023

0.44

0.4
0

FY2024(Forecast)

D/E Ratio (right axis)

FY 3/2018

FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024(Forecast)

25.8%

23.0%

23.5%

28.0%

26.4%

24.8%

22.0%

21.4%
18/46

3. Status by Business Segment & Topics

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

Trends in Production Weight of Die Castings (Results/Forecasts)• Americas and U.K. are expected to see a year-on-year increase in FY2024.
• While lower than initial forecast, production is expected to exceed 270,000 tons
(consolidated) for this year.
Consolidated(Unit: t)Consolidated (left axis)
U.K. (right axis)

Japan (right axis)
China (right axis)

Americas (right axis)
Thailand (right axis)

80,000

By Region(Unit: t)

40,000Consolidated

60,00030,000Japan
Americas40,000China

20,000U.K.

020,00010,000Thailand1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2019

2020

2021

2022

2023

0

0

2024

*Solid lines indicate actual results; dotted lines indicate forecasts.
20/46

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

Trends in Production Weight of Die Castings (Initial forecast and Results/Forecasts)• Forecasts indicate figures short of those assumed in plans for Japan and China and slightly
short of figures targeted in plans for other regions.
Consolidated(Unit: t)Consolidated(left axis)

Japan(right axis)

Americas(right axis)

U.K.(right axis)

China(right axis)

Thailand(right axis)

80,000

By Region(Unit: t)

40,000Initial forecast

Results and Forecasts

60,00030,00040,00020,00020,00010,000

0

1Q

2Q

3Q
2023

4Q

1Q

2Q

3Q

4Q

0

2024

*Solid lines indicate actual results; dotted lines indicate forecasts; lighter shades of the same color indicate initial forecasts.

21/46

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

Die Castings – Summary –Forecasts of net sales and operating income(Unit: Billions of Yen)

300

30

267.7
247.6

250

25

215.7

200

20

150

15
10.9

12.2

100

50

10
5.2

5

0

0
FY2022

Net sales (left axis)

FY2023

FY2024(Forecast)

Operating income (right axis)

FY2024 regional conditions(Japan)The pace of recovery in automotive production has
been slow due to quality and other problems at
automotive manufacturers. Sales growth issluggish.
(Americas)
The momentum for BEVs has slowed; additionally,
HEVs are gaining in popularity.
The introduction of new products led to growth insales.
Decision made to expand Mexico-based factory.
(U.K.)The momentum for BEVs has slowed; additionally,
HEVs are gaining in popularity.
Production (by weight) has picked up since thesecond half due to the launch of production of new
products.
(China)The struggle involving Japanese and western
automotive manufacturers owing to the advance ofChinese-owned automotive manufacturers.
(Unit: Billions of Yen)

Net sales

FY2022

FY2023

FY2024(Forecast)Japan
Americas
U.K.
China
Thailand

93.0
58.2
13.0
42.6
8.9

102.0
74.1
16.6
44.8
10.0

101.7
90.0
23.0
43.0
10.0
22/46

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

Die Castings

Initiatives to achieve weight reductions and electrification – External conditions for the Die Castings business –• New automobile sales is expected to increase up to around 2040.
• Surely proceed to BEV (projected percentage of BEV in 2040: 67%).
• The growth of BEVs has slowed; HEVs remain strong. HEVs will continue to have a significant
presence in the 2030s.
• Production of weight reductions (body/chassis) parts and electrification parts grow, alongside salesof existing parts for internal combustion vehicles (ICE; engine and transmission parts), resulting inincreased demand for die castings.
As of October 2023

Outlook for Die Casting Demand(Total weight of Key countries)

Outlook for Power Train Mix(Number of Automobiles sold of Key countries)
100

6
Unit: 1 million t (vertical axis)

Unit: 1 million vehicles (vertical axis)
5

FCV

80

Body/chassis
4

BEV

60

67%

3

40
2
20

26%

0
2015

2020

2025

2030

2035

Transmission
components
Other

HEV&PHEVICEElectrification/
driveline parts2040

Key countries: Japan, Europe, U.S.A., China, India

1

Engine components
0
2015

2020

2025

2030

2035

2040
23/46

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

Die Castings
Outlook on Die Casting Demand- Our opportunities in the shift to electrification -• Aluminum die casting products are used regardless of power source.
• Currently, HEVs account for the highest proportion of aluminum die castings.
• The continuing strength of HEVs is a tailwind for Ryobi.
Use of aluminum die casting by power source
ICE

HEV/PHEVBEV

Main Die Casting Products

Transmission parts• Transmission caseEngine parts• Cylinder block

Electrification/
Drive parts• Battery Case, eAxle case
• Inverter/converter case

Body/Chassis parts• Subframe• Suspension housing

Volume of use for die casting by power source（Kg / unit）Ryobi’s forecastPowersource

ICE

HEV

PHEV

BEV
A-B*

BEV
C-D*

BEV
E-F*

FY2024

64

70

77

31

42

57

FY2035

64

68

76

33

53

65

FY2040

62

67

76

32

59

68

• Volume of use in HEVs/PHEVs is higher than in ICE
vehicles.
• In the C-D segment of BEVs, figures relative to 2022
are projected to be +14 kg in 2035 and +20 kg in 2040.
* A-B segment
C-D segment
E-F segment：Small & Compact size
：Medium size
：Executive & Full size
24/46

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

Die Castings – Making automobiles lighter –Initiatives to achieve weight reductions and electrification – Winning businesses for strategic products –Winning businesses of strategic products are steady.
Automobile models equipped with our body/chassis and electrification parts

BEV

Foreign OEMs

Foreign OEMs
Adopted for 11 models produced by four companies, including the above (within the past 1 year)

HEV, PHEVTOYOTA Lexus RX Hybrid

TOYOTA RAV4 Hybrid

Geely Lynk&Co06 PHEVSUZUKI SPACIA

Adopted for 9 models produced by four companies, including the above (within the past 1 year)

Products for which mass production began recently

Products for which plans for mass production are in place(within the past 1 year)

25/46

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

Die Castings

Initiatives to achieve weight reductions and electrification – Sales contribution of strategic products –• Sales of strategic products (electrification and weight reductions (body/chassis)
parts) show solid growth.
• Sales of strategic products to grow to 43% of net sales in 2027.
• Electrification and body/chassis components accounted for approximately 91% of
new businesses in the forecast FY2024.
(New businesses received: FY2020: 38%, FY2021: 55%, FY2022: 77%, FY2023: 85%)
Trends in sales and share by die casting parts category
Body/Chassis
Transmission
Other

Electrification
Engine

■4.3%
■2.9%

■■Total43%■■Total■■Total■■Total

5.3%

7.2%
FY2020

FY2021■■Total

15.4%
10.3%
5.0%
FY202224%■■Total

17.4%
9.2%
8.1%
FY202316%
8%
FY2024(Forecast)

FY2027(Forecast)
26/46

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

Die Castings

Initiatives to achieve weight reductions and electrification – Exhibiting at the Automotive Engineering Exposition –Exhibited at the Automotive Engineering Exposition (held at Pacifico Yokohama) in May 2024,
attracting numerous enquiries and reactions.
✓ Exhibited: A number of mass-produced products of electrification parts and weight reduction
parts.
✓ Also presented: giga casting-based prototyping services.
The Ryobi booth

Key products exhibited• Products for electric vehicles for which development
has been proposed (e.g., battery case, eAxle case,motor case)• Body/chassis products for needs of weight reduction(e.g., suspension housing)• Introduction of giga casting machine and presentationof prototyping services

Exhibit examples

350mm

450mm
1,220ｍｍ
260mm
150ｍｍ
1,800ｍｍ

Battery case

Rear suspension housing

Front suspension housing

27/46

Die Castings

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

Initiatives to achieve weight reductions and electrification – Giga casting efforts –Development of giga casting prototyping business system.
✓ Construction of new plant in line with plans for launching prototyping services in March
2025.
✓ Acquiring giga casting prototyping technologies and establishing business foundations.
Image of completed casting machine

Image of completed plantArea of new plant 3,159㎡

Status of plant construction

Finishing plant

Die and casting plant
28/46

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

Builders’ Hardware

Business environment➢ In Japan, the market for residential
housing and (non-residential) buildings
is almost flat.
➢ Increase procurement cost due tostrengthening of the Chinese yuan.
➢ Growing demand for non-contact
devices in the living environment field.
➢ Domestic demand for remodeling andrenovation is growing.

Main initiatives➢

Improve profitability in the Japanese market.

➢

Expand sales of high-value-added products(next-generation key products).

➢

Expand sales in overseas markets.

➢

Take preventive measures against possible
defectiveness and promote quality stabilization.

➢

Promoting stronger collaboration andoptimization within the business unit by making
Chinese manufacturing company a whollyowned subsidiary.

Forecast of net sales and operating income(Unit: Billions of Yen)

12

10.1

10.8

8
0.2
4
0

FY2022

Net sales (left axis)

0.6

11.0
0.3

0.2

FY2023

FY2024
Forecast
Operating income (right axis)

0.4

0.2
0

Performance summary➢ (FY2024 2Q)
Sales increased both in Japan andoverseas.
Profits declined due to rising procurement
costs of overseas production, despite
efforts to improve productivity and reduce
expenses.
➢ (FY2024 forecast)
Sales are expected to increase both inJapan and overseas. Profits are expected
to increase due to higher sales.
29/46

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

Builders’ Hardware

Topics in the Builders’ Hardware business• In May 2024, we exhibited at the Building Materials Fair for Ideal Housing and Architecture.
• Various products were displayed, including the RUCAD electric door opening/closing
equipment and the GEOPRO series door closers.
The Ryobi booth

Exhibited four cases involving RUCAD
adoption to support safe and comfortable
door opening/closing.
RU-02065.5mmSummary of the Fair
 Dates: May 30 - May 31, 2024
 Number of attendees : 15,000
 Models exhibited:
The RUCAD electric door opening/closing equipment RU-020
The GEOPRO series
Concealed-in door closers GCC-4V
Door closers, pivot hinge, etc.

59mm

More compact body among existing
concealed-in products.
Can be mounted in doors with smallinternal mounting space.
GCC-4V

42mm

286mm
32mm

30/46

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

Printing Equipment
Business environment

Forecast of net sales and operating income(Unit: Billions of Yen)

➢ Demands for automation and labor savings due
to labor shortages and aging of printing press
operators.
➢ Steady sales of presses for package printing.
➢ Decrease in supply and sharp rise in prices of
paper are leading to going down in printing
production volume.
➢ Continuation of rising prices of procurement
items.

Main initiatives➢ Development of automation, labor-savings,
and assist functions for printing presses.
➢ Expanding sales of products that meetcustomer needs (publication printing,package printing).
➢ Reflecting higher raw material prices in selling
prices.
➢ Development of new businesses throughalliances with companies related to printing
industry.

30
23.4
20

1.5

24.1

3
2

1.1

10
0

26.3

0.5
(10.7)(10.6)FY2022

FY2023(12.9)

1
0

FY2024
Forecast
Net sales (left axis) Operating income (right axis)* Figures in parentheses indicate export components of sales.

Performance summary➢ (FY2024 2Q)
Sales increased both in Japan and overseas.
Profits were slightly higher due to growth insales, despite the impact of rising raw material
prices and other factors.
➢ (FY2024)
Sales are expected to increase both in Japanand overseas. Profits are expected to decrease
due to the effects of rising raw material prices
and other related factors.
31/46

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

Printing Equipment

Topics in the Printing Equipment business• We exhibited at drupa 2024 (May-June 2024 in Düsseldorf, Germany).
• Exhibition and demonstration for package and commercial printing.
RMGT booth

Summary of the Exhibition
 Dates: May 28 - June 7, 2024 (11 days)
 Number of attendees: 170,000
 Number of exhibitors:1,643 companies
 Models exhibited:
RMGT1060(Proposal of labor saving process for the packaging field)
Based on the concept of expanding the automation of
package printing, promoted high productivity through thenon-stop operation for continuous jobs.

RMGT booth

RMGT970(Proposal of skillless printing for the commercial printing field)
Based on the concept of improving the productivity ofcommercial printing through the automated operations,promoted the improved utilization and skillless operation.

Drying equipment using electron beam
Environmentally-friendly device for curing ink exhibited as areference.
32/46

4. Initiatives to improve corporate value
and market valuation

4. Initiatives to improve corporate value and market valuation

Current state analysis
Return on capital (ROE)• ROE is lower than the cost of capital (cost of equity capital of about 8-9%*) and the equity spreadremain negative.
• Despite our recovery from the low business performance due to COVID-19, improvements in
profitability are still needed.

Market’s valuation (PER)• Stock prices, which rose in 2023 due to better business performance and reports of venture into
giga casting, are currently flagging.
• P/E ratio remains low, at around 8. Expectations for our profit growth are low.
• Explanations of specific cash allocations, measures to enhance shareholder returns, and othermatters are inadequate.
(Unit: yen)

3,000

Trends in share prices

2,803
2,634

(Unit: times)

2,658

1,000

0.5

7.6

10

0.57

0.52

2,000

PER

10.3 9.9

0.72 0.73

1,954

12.7

15

1

2,292

1,250

(Unit:
Trends in ROE and PER
ROE: %PER times)

Trends in PBR

8.0

8.2

0.46
0.35

1,147
1,096

0.29 0.28

5

7

7.4

7.1
4.1

0.0

0
-0.6

0

ROE

0

* Calculated by CAPM, i.e., risk free rate + β(beta) x risk premium

-5

0.0

5.6

3.7
-3.7

34/46

4. Initiatives to improve corporate value and market valuation

Policy and measure for improvement
Policy for improvement• With the Die Castings business as our core business, we will continue to invest
in future growth areas to strengthen earning power.
• We will formulate medium- to long-term business strategies to enhance corporate
value, disclose specific initiatives, and thereby seek to improve the market’svaluation.

Disclosure of next medium-term management plan

To clearly indicate to the market the direction of
earnings power enhancements and growth strategies.
Next medium-term management plan
➢ To be announced in February 2025.
➢ To achieve the desired vision looking ahead to 2035, we will formulate a mediumterm management plan with 2025 to 2027 as the period set for strengthening our
foundations.
35/46

4. Initiatives to improve corporate value and market valuation

Proposed measures to improve PBRPBR = ROE (return on capital) × PER (growth potential)

Strengthening
earning power

Measurestoimprove
ROE

Improving
asset
efficiency
Promotingfinancialstrategy

Measurestoimprove
PER

EnhancingIR activities
Reducing
capital costs• Continue to invest in growth areas and seek to increase new
businesses for strategic products (for electrification andweight reduction) and improve profitability.
• Maximize profits by reducing costs through productivity
improvements.

• Reduce cross-shareholdings.
• Review returns to shareholders.
✓ Review dividend payout ratio✓ Implement flexible purchases of treasury stock• Demonstrate financial and nonfinancial KPIs and explain our direction
and management’s intention to the market in a plain manner.
• Expand adoption into ESG indices through improvement in FTSE
Score and other aspects.
• Consider introduction of stock remuneration program and othermeasures.
• Strengthen dissemination of information within capital markets.
Introduction of research reports.
36/46

Cash allocation

4. Initiatives to improve corporate value and market valuation

Key measures
Cumulative operating
cash flow

Strengthening
theproduction
structure

Growthinvestments

Approximately
75.0 billion yen

Strengthening
managementfoundations

Shareholder
returns

2022-2024(Forecast)

Strategic investments(including renewal investments)• Expanding investment toaccommodate growing
demand for strategic
products• Research investments to
expand applications• Investments in DX andhuman capital• Reductions and repayments
of interest-bearing debt

• Comprehensive examination ofenhancements of the return policy✓ Review dividend payout ratio✓ Implement flexible purchases of treasurystock

2025 Medium-Term
Management Plan projection(2025-2027)

Cash inflows:• Strengthened earnings power through improved
profitability and cost reductions in each business• Improvements in CCC through inventory reductions andother measures• Sale of cross-shareholdings and non-current assets

Cash outflows:• Implementation of growth investments and infrastructuredevelopment centered on core Die Castings business• Enhanced shareholder returns, including reviews ofdividend payout ratios and implementation of flexible
treasury stock purchases
37/46

4. Initiatives to improve corporate value and market valuation

Shareholder returns
Trends in dividends per share anddividend payout ratio

Dividend policy(Unit: %)(Unit: Yen)

100

60

30.4

30.6

25.6

50

30
85

80
45
20

0

FY2020

FY2021

FY2022

FY2023

FY2024
Forecast

0

Dividends per share (left axis)

Dividend payout ratio (right axis)

Dividends per
share (yen)Dividend payout
ratio (%)

FY2020

FY2021

FY2022

FY2023

FY2024
Forecast

0

20

45

80

85

−

−

30.4

25.6

30.6

➢ (FY2024)✓ Ryobi’s basic policy for profit distribution is tomaintain a stable return of profits toshareholders while securing funds for growthinvestment along with a medium- to long-term
improvement in consolidated operating
performance.
✓ Along with giving due consideration tomaintaining a stable stream of dividends, theamount of shareholder returns is determinedin light of prevailing conditions, with an eye toachieving a dividend payout ratio of around30%.
➢ (Subsequent period and beyond)✓ Plans to announce in next medium-term
management plan.

Status of dividends➢ (FY2023)✓ Annual dividends were 80 yen (30 yen higher
than forecast, up 35 yen from the previousyear).
➢ (FY2024)✓ We will strive to increase shareholder value
over the medium to long term as well as
enhance opportunities to return profits toshareholders.
✓ Dividends are planned to be increased by 5
yen from the forecast, for an annual dividendof 85 yen.
38/46

About forward-looking statements
This document contains forward-looking statements regarding matters such as Ryobi’s businessplans, strategies, and operating results.
Such forward-looking statements reflect Ryobi’s judgements based on information available at thetime of preparation. They involve inherent risks and uncertainties.
Ryobi’s actual activities and operating results may differ from these forward-looking statements
due to economic conditions, the business environment, trends in market demand, trends inexchange rates, and other factors.

Unauthorized copying and replication are prohibited.
39/46

Appendix

Die Castings
Trends in sales by region
Japan

China

RYOBI LIMITEDRYOBI MIRASAKA CO.
RYOBI MITSUGI CO.
TOKYO LIGHT ALLOY CO., LTD. etc.

RYOBI DIE CASTING DALIAN
CO., LTD.
RYOBI DIE CASTINGCHANGZHOU CO., LTD.

33.0 34.6 42.6

44.8 43.0

FY2020 FY2021 FY2022 FY2023 FY2024
Forecast

71.7

86.4 93.0 102.0 101.7

FY2020 FY2021 FY2022 FY2023 FY2024
Forecast

U.K.
RYOBI ALUMINIUM CASTING(UK), LIMITED

9.5

23.0
16.6
13.0
10.6

FY2020 FY2021 FY2022 FY2023 FY2024
Forecast(Unit: Billions of Yen)

RYOBI DIE CASTING(USA), INC.

RDCM, S.
DE R.L. DE
C.V.
(Mexico)Americas

ThailandRYOBI DIE CASTING (THAILAND)
CO., LTD.

4.3

6.8

8.9 10.0 10.0

FY2020 FY2021 FY2022 FY2023 FY2024
Forecast

58.2

74.1

90.0

27.5 31.4
FY2020 FY2021 FY2022 FY2023 FY2024
Forecast
41/46

Appendix

Die Castings
Trends in capital expenditure by region
Japan
RYOBI LIMITEDRYOBI MIRASAKA CO.
RYOBI MITSUGI CO.
TOKYO LIGHT ALLOY CO., LTD. etc.

China
RYOBI DIE CASTING DALIAN
CO., LTD.
RYOBI DIE CASTINGCHANGZHOU CO., LTD.

3.9

4.0

3.4

1.1

(Unit: Billions of Yen)

1.1

FY2020 FY2021 FY2022 FY2023 FY2024
Forecast

10.8
6.3

4.3

6.5

5.0

RYOBI DIE CASTING(USA), INC.

FY2020 FY2021 FY2022 FY2023 FY2024
Forecast

RDCM, S. DE
R.L. DE C.V.
(Mexico)Americas

U.K.
RYOBI ALUMINIUM CASTING(UK), LIMITED

0.3

1.0

1.2

0.2

0.2

FY2020 FY2021 FY2022 FY2023 FY2024
Forecast

ThailandRYOBI DIE CASTING (THAILAND)
CO., LTD.

2.3

1.1

1.2

0.6

1.3

3.7
FY20202.1
FY2021

5.2

4.1

FY2022

FY2023

6.9
FY2024
Forecast

FY2020 FY2021 FY2022 FY2023 FY2024
Forecast

42/46

Appendix

Die Castings – Japan –Business environment

Sales trend(Unit: Billions of Yen)
120
100
80

86.4

93.0

102.0

101.7

71.7

60
40
20

➢ The pace of recovery in automotive production has
been slow due to quality and other problems at
automotive manufacturers. Sales growth has beensluggish.
➢ BEV sales volume has grown but continues to lag
behind other countries.
➢ The momentum for BEVs has slowed while HEVs
were gaining in popularity.
➢ Demand for light weight components is growing(replacing iron with aluminum).

Main initiatives

0
FY2020

FY2021

FY2022

FY2023

FY2024(Forecast)

RYOBI LIMITED
Hiroshima Plant
Hiroshima East Plant

RYOBI
MIRASAKA CO.

TOKYO LIGHT
ALLOY CO., LTD.
HOEI INDUSTRIESCO., LTD.

RYOBI LIMITED
Shizuoka Plant
RYOBI MITSUGI CO.

➢ Increasing new businesses for strategic products(weight reduction and electrification parts).
➢ Building structures for production of strategic
products.
➢ Tackling giga casting.

RYOBI LIMITED
Kikugawa Plant

RYOBI LIMITED
Hiroshima East
Plant

43/46

Appendix

Die Castings – Americas –Business environment

Sales trend(Unit: Billions of Yen)
100

90.0
58.2

60
40

➢ Strong sales of small trucks and SUVs in the US.
The momentum for BEVs has slowed while HEVs were
gaining in popularity.

74.1

80

27.5

➢ Production is on the increase, with problems such asparts shortages and logistics stagnation stemming fromthe effects of COVID-19 nearly resolved.

➢ Labor costs remaining high due to wage hikes.

31.4➢ An interest rate reduction phase will begin in 2024 andappetite for automobile purchases will increase due toimproved financing environment.

FY2021➢ Smooth launch of new products and improving
productivity.

20

Main initiatives

0
FY2020

FY2022

FY2023

FY2024(Forecast)➢ Expanded building and augmented casting and otherequipment at Mexico-based factory in response toincreased demand for electric vehicle parts in North
America.

➢ Responding to rising labor expenses, etc. (review of
production processes, etc.)
RYOBI DIE CASTING(USA), INC.

RDCM, S. DE
R.L. DE C.V.
RYOBI DIE CASTING(USA), INC.

RDCM, S. DE
R.L. DE C.V.

44/46

Appendix

Die Castings – China –Business environment

Sales trend(Unit: Billions of Yen)
50
40

42.6
33.0

44.8

43.0

34.6

30
20

➢ Chinese-owned automotive manufacturers have
improved their brand image by introducing high end
models of new energy vehicles.
➢ Market scale: expanding for new energy vehicles,
shrinking for ICE vehicles.
➢ Exemptions from purchase taxes and favorable
policies for number plate acquisition for new energy
vehicles have been extended (bringing pricecompetitiveness to levels comparable to ICE
vehicles).

10

Main initiatives

0
FY2020

FY2021

FY2022

FY2023

FY2024(Forecast)➢ Strengthening ties with leading customers andgrowing sales.
➢ Optimizing production structures in China andmaking effective use of existing facilities(promoting
transfers of idle equipment).
RYOBI DIE CASTINGDALIAN CO., LTD.

RYOBI DIE CASTINGDALIAN CO., LTD.

RYOBI DIE CASTINGCHANGZHOU CO., LTD.

RYOBI DIE CASTINGCHANGZHOU CO., LTD.
45/46

Appendix

Die Castings – U.K., Thailand –U.K.

Business environment

Sales trend(Unit: Billions of Yen)

23.0

25
20

16.6

15
10

9.5

10.6

13.0

5

RYOBI ALUMINIUMCASTING (UK), LIMITED

Main initiatives

0
FY2020ThailandFY2021

FY2022

FY2023

FY2024(Forecast)(Unit: Billions of Yen)

15

8.9

10

10.0

10.0

4.3

➢ Securing new orders as main project forJapanese company.
➢ Improving productivity (improvement in
defect rates).

0
FY2020➢ Declining EV sales (due to lower
subsidies).
➢ Rise of Chinese-owned EV manufacturers.
➢ Sluggish sales of pickup trucks (financial
institutions tightening loan approval
standards).

Main initiatives

6.8

RYOBI DIE CASTING(THAILAND) CO., LTD.

➢ Improving productivity (reducing cost
ratios).
➢ Promoting price negotiations(rectification).

Business environment

Sales trend

5➢ The momentum for BEVs has slowed
while HEVs were gaining in popularity.
➢ Increased appetite for automobilepurchases due to lower policy rates.
➢ Automobile sales volumes haverecovered marginally in Europe in parallelwith the recovery from the semiconductor
supply shortage.

FY2021

FY2022

FY2023

FY2024(Forecast)

46/46