Ryobi Consolidated Financial Statements for Fiscal 2012

Ryobi Limited and Consolidated Subsidiaries
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012
These consolidated financial statements are based on the Japanese financial statements submitted to the Tokyo
Stock Exchange.

1. Consolidated Balance Sheets(Millions of yen)March 31, 2012

March 31, 2011ASSETS
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-

14,54834,232
9,012
12,1068,921
6,114
1,1943,518(37)
89,61018,69439,404
5,894
13,852
10,057
6,813
1,289
3,065
(42)
99,02918,474
21,19021,628
528
3,330
2,771
67,923

17,951
21,62921,697346
11,2872,757
75,669

992
992

1,642
1,642

8,358
1,338
2,429
(76)
12,05080,966
170,577

8,147
1,452
1,806
(53)
11,353
88,665
187,694

Ryobi Consolidated Financial Statements for Fiscal 2012

March 31, 2011
LIABILITIESCurrent liabilities:
Notes and accounts payable
Short-term borrowings
Current portion of long-term debt
Lease obligations
Income taxes payable
Accrued bonuses
Accrued bonuses to directors
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
Accumulated other comprehensive loss:
Unrealized gain on available-for-salesecurities
Deferred loss on derivatives under hedge
accounting
Land revaluation reserve
Foreign currency translation adjustments
Total accumulated other comprehensive loss
Minority interests
Total net assets
Total liabilities and net assets-2-(Millions of yen)March 31, 2012

28,35725,404
10,118
245
2,165
1,613
20
8,555
76,48032,42728,541
6,806
206
909
1,605
32
11,463
81,994

12,878
326
171
674
6,633
409
1,785
22,87999,36022,158
164
155
630
6,105
411
1,723
31,349113,344

18,472
23,75039,601(2,360)79,463

18,472
23,75042,810(2,360)82,672

1,871

1,969

(32)
626
(11,700)(9,235)989
71,217
170,577(36)
655(11,985)(9,396)
1,075
74,350187,694

Ryobi Consolidated Financial Statements for Fiscal 2012

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(1) Consolidated Statements of Income(Millions of yen)
Fiscal Year 2011
Fiscal Year 2012
Ended March 31, 2011
Ended March 31, 2012
Net sales
161,730
165,638
Cost of sales
132,728
135,938
Gross profit
29,001
29,699Selling, general and administrative expenses
20,71621,984
Operating income
8,285
7,715
Non-operating income
Interest income
33
22
Dividends income
120
144
Rent income
451
405
Gain on sale of scrap
137
161
Cash dividends for insurance
133
70
Miscellaneous income
300
269
Total non-operating income
1,176
1,074
Non-operating expenses
Interest expenses
1,094
1,020
Cash discounts
178
191
Loss on abandonment of inventories
96
187
Depreciation
196
117
Exchange losses
264
227
Miscellaneous expenses
190
96
Total non-operating expenses
2,022
1,839
Ordinary income
7,438
6,950Extraordinary income
Gain on sale of fixed assets
191
31
Gain on sale of investment in securities—
1
Reversal of allowance for doubtful accounts
1—
Gain on negative goodwill
22
1
Total extraordinary income
21634
Extraordinary losses
Loss on disposal of fixed assets
280
112
Loss on devaluation of investment insecurities
40
172
Special retirement expenses—
198
Loss on adjustment for changes of accounting
standard for asset retirement obligations
29—
Total extraordinary losses
349
484
Income before income taxes and minority interests
7,305
6,500
Income taxes
Current2,367
2,288
Deferred220(35)
Total income taxes
2,588
2,253
Income before gain on minority interests
4,717
4,247
Gain on minority interests
12368
Net income
4,594
4,179-3-Ryobi Consolidated Financial Statements for Fiscal 2012

(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
Land revaluation reserve
Foreign currency translation adjustments
Share of other comprehensive loss ofassociates accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Minority interests

Fiscal Year 2011
Ended March 31, 2011
4,717

(Millions of yen)
Fiscal Year 2012
Ended March 31, 2012
4,247

(282)

115

(0)
—
(1,183)(3)
43(285)(0)(1,466)
3,250

(0)
(130)
4,117

3,125
125

4,018
98

-4-

Ryobi Consolidated Financial Statements for Fiscal 2012

3. Consolidated Statements of Changes in Net Assets

Fiscal Year 2011
Ended March 31, 2011

(Millions of yen)
Fiscal Year 2012
Ended March 31, 2012

18,472

18,472—18,472—
18,472

23,75023,7500023,750——23,75035,00739,601

—
4,594
4,594
39,601

(970)
4,179
3,209
42,810(2,354)(2,360)(5)0(5)(2,360)(0)—(0)(2,360)74,874

79,463

—
4,594
(5)
0
4,588
79,463

(970)
4,179
(0)
—
3,208
82,672

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 stockTotal changes of items during the year
Balance at end of year
Retained earnings
Balance at beginning of year
Changes of items during the year
Dividends from surplus
Net income
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
Changes of items during the year
Dividends from surplus
Net income
Acquisition of treasury stock
Disposal of treasury stock
Total changes of items during the year
Balance at end of year

-5-Ryobi Consolidated Financial Statements for Fiscal 2012

Fiscal Year 2011
Ended March 31, 2011

(Millions of yen)
Fiscal Year 2012
Ended March 31, 2012

2,157

1,871

(285)
(285)
1,871

98
98
1,969

(32)

(32)

(0)
(0)
(32)

(3)
(3)
(36)

626

626

——
626

28
28
655

(10,517)(11,700)(1,183)(1,183)(11,700)

(285)
(285)
(11,985)(7,766)(9,235)(1,469)(1,469)(9,235)

(161)
(161)
(9,396)

887

989

101
1019898686
1,075

Accumulated other comprehensive loss
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 losses on derivatives under hedge
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 accumulated other comprehensive loss
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

-6-Ryobi Consolidated Financial Statements for Fiscal 2012

Fiscal Year 2011
Ended March 31, 2011

(Millions of yen)
Fiscal Year 2012
Ended March 31, 2012

67,995

71,217—4,594(5)0(970)
4,179(0)—(1,367)
3,221
71,217(75)
3,133
74,350Total net assets
Balance at beginning of year
Changes of items during the year
Dividends from surplus
Net income
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

-7-

Ryobi Consolidated Financial Statements for Fiscal 2012

4. Consolidated Statements of Cash Flows

Cash flows from operating activities:
Income before income taxes and minority
interests
Depreciation and amortization
Decrease in allowance for doubtful accounts
Increase (decrease) in reserve for bonuses
Decrease 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
Increase in notes and accounts receivable
Increase in inventories
Decrease (increase) in other current assets
Increase in notes and accounts payable
Other increases 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
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
Other
Net cash provided by (used in) financing activities
Foreign currency translation adjustments on cash
and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

-8-

Fiscal Year 2011
Ended March 31, 2011

(Millions of yen)
Fiscal Year 2012
Ended March 31, 2012

7,305
11,339
(44)
762
(354)
(153)
1,094
40
90
(3,461)
(985)
(814)
3,225
720
339
19,104157(1,108)(684)
17,4686,500
10,924
(18)
(7)
(528)
(167)
1,020
172
80
(5,433)(3,670)
452
4,256
1,686
(96)
15,173166(1,008)(3,401)
10,929(7,646)(17,961)324(3,837)3,837(19)(2,714)2,836(186)(7,406)69(1,340)
1,340
(22)
(2,445)2,445(419)(18,334)(5,238)
7,163(13,250)
(5)
0
—
(405)
(11,736)

3,449
16,302(10,191)
(0)
—
(970)
(260)
8,329

(159)
(1,834)
23,31921,485102
1,027
21,48522,513

Ryobi Consolidated Financial Statements for Fiscal 2012

5. Segment Information(1) Industry Segment Information
For the Fiscal Year Ended March 31, 2011
(Millions of yen)
Die
Castings

Printing
Equipment

Power Tools
and Builders’Hardware118,192

19,67923,858

161,730

Intersegment

115

—

2117

(117)

—

Total

118,307

19,67923,860161,847(117)

161,730

Operating Income(Loss)

7,291

(936)

1,930

8,285

0

8,285

Total Assets

99,06223,09823,800145,961

24,615

170,577

Depreciation andAmortization

9,928

699

711

11,339—11,339

Capital Expenditure

8,451

145

452

9,048

—

9,048

Total

Eliminations/ Corporate

Consolidated

Net Sales:
Unaffiliated Customers—

161,730

For the Fiscal Year Ended March 31, 2012
(Millions of yen)
Die
Castings

Printing
Equipment

Power Tools
and Builders’Hardware123,360

17,532

24,744

165,638

Intersegment

121

—

3125

(125)

—

Total

123,481

17,532

24,748

165,763(125)

165,638

6,079

(710)

2,346

7,714

0

7,715

117,757

23,344

26,178167,280

20,414

187,694

Depreciation andAmortization

9,699

593

631

10,924—

10,924

Capital Expenditure

19,425143

705

20,275—

20,275

Total

Eliminations/ Corporate

Consolidated

Net Sales:
Unaffiliated Customers

Operating Income(Loss)
Total Assets-9-—165,638

Ryobi Consolidated Financial Statements for Fiscal 2012(2) Information by Region
For the Fiscal Year Ended March 31, 2011
a. Net Sales(Millions of yen)JapanThe Americas

113,643

Other29,217

Total

18,870161,730

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

47,580

Asia

8,917

Other

8,229

Total

3,196

67,923For the Fiscal Year Ended March 31, 2012
a. Net Sales(Millions of yen)Japan

The Americas

114,124

Other

29,991

Total

21,522

165,638

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

45,520The Americas

Asia

8,817

18,531- 10 -

Other

2,800

Total

75,669