RYOBI̲05本文0721̲C1/C4＿初 05.8.26 2:36 PM ページ 1

762, Mesaki-cho, Fuchu,
Hiroshima 726-8628, Japan
Telephone: 81-847-41-1111
http://www.ryobi-group.co.jp/

RYOBI LIMITED ANNUAL REPORT 2005

ANNUAL REPORTFor the year ended March 31, 2005

2005
This annual report was printed by a Ryobi printing press using 100% recycled paper and soybean ink.

Printed in Japan
Copyright©2005 Ryobi Limited. All Rights Reserved.

PROFILE

Since its establishment as a die casting manufacturer in December 1943, Ryobi Limited has accumulated innovative technologies by making components for automobiles, electronics,
telecommunications and other industries. Ryobi has leveraged these technologies and drawn on its
experience to diversify into the manufacture of printing equipment, power tools and builders’ hardware. Ryobi is all around you, making an enjoyable, comfortable daily lifestyle possible.

66.8%
DIE CASTINGSNet Salesby Segment
for Fiscal 2005

Ryobi is a world-leading die casting
manufacturer that supplies its products tovarious industries, including cylinder blocks andtransmission cases to the automobile industry.

15.7%
POWER TOOLS AND
BUILDERS’ HARDWARE
Ryobi offers an extensive range of power
tools and lawn and garden equipment for
both professional and do-it-yourself needs,
and builders’ hardware such as door
closers to enhance safety and comfort inhomes and offices.

17.5%

Ryobi offers high-precision, multi-functional offset
printing presses, and develops total printing systems
for all stages of printing from prepress, to press, andpost-press.

PRINTING EQUIPMENTCONTENTSCONSOLIDATED FINANCIAL HIGHLIGHTS 1CORPORATE SOCIAL RESPONSIBILITY 5

A MESSAGE FROM THE MANAGEMENT 2
FINANCIAL SECTION 6

TOPICS 4

CORPORATE INFORMATION 27

Forward-Looking Statements
Items containing forward-looking statements such as performance forecasts, future trends, and strategies are based upon management's assumptions inlight of the information available as of the end of the fiscal year under review and may contain various risks and uncertainties. The Ryobi Group cautions thatits actual actions and performance may differ significantly from these forward-looking statements due to numerous factors outside of Group's control suchas, but not limited to: including general economic conditions, the business environment, trends in market demand and foreign exchange rates.

CONSOLIDATED FINANCIAL HIGHLIGHTS(For the years ended March 31, 2005, 2004 and 2003)

Thousands of
U.S. dollars(Note 2)Millions of yen

2005

2004

2003

2005

Net sales ................................................................................

¥157,964¥155,251¥156,458$1,470,938

Operating income..................................................................

10,834

10,347

8,452

100,885

Net income ............................................................................

6,581

12,812

4,471

61,281

Total assets............................................................................

¥157,420¥160,574¥165,487$1,465,872

Total shareholders’ equity.....................................................

55,29450,04038,366514,890

For the fiscal period:

As of fiscal year-end:

U.S. dollars(Note 2)Yen

Per share data:
Net income ................................................................................

¥ 39.33¥ 76.40¥ 26.26

Cash dividends ..........................................................................

7.50

7.50

—

$

0.366
0.070

Notes: 1. Net income per share figures are based on the weighted-average number of shares outstanding each year.
2. Yen amounts have been translated into U.S. dollars, solely for the convenience of the reader at ¥107.39=US$1, the exchange rate prevailing on March 31, 2005.

NET SALESOPERATING INCOME

NET INCOME

Millions of yen

Millions of yen

Millions of yen

250,000

12,00015,000240,074

10,000200,000

10,347

10,13912,812
12,000184,282

8,452
156,139 156,458 155,251 157,964

150,000

10,834

8,000

7,303

9,000

6,364
6,000

6,581

100,000

6,000
4,000

50,00004,471
3,000 2,831

2,000

2000

2001

2002

2003

2004

2005

0

2000

2001

2002

2003

2004

RYOBI LIMITED ANNUAL REPORT 2005

2005

0

2000

2,907
2,081

2001

2002

2003

2004

2005

1

A MESSAGE FROM THE MANAGEMENT

Hiroshi Urakami

Susumu Yoshikawa

Chairman and CEO

President and COO

CREATE A SOUND AND DYNAMICCORPORATION THROUGH TECHNOLOGY,
TRUST AND CHALLENGE

Guided by its corporate philosophy, “Create a sound and dynamic corporation through technology, trust and challenge,” the Ryobi Group aims to establish itself as an indispensable
part of society by creating innovative, top-quality products and services that meet the needsof customers and society at-large. While developing its die casting business in tandem with
its finished products, Ryobi continues to make every effort to ensure that its customers,
shareholders, business partners and employees find their association with Ryobi to be a
rewarding experience.
During fiscal 2005, ended March 31, 2005, the Japanese economy showed signs of arecovery on the back of increases in capital expenditures and solid exports to Europe, the2

RYOBI LIMITED ANNUAL REPORT 2005

United States, and Asia. Despite these positive factors, however, uncertainties remained
about economic prospects due to high raw material prices and the appreciation of the yen
against the U.S. dollar.
Under these circumstances, the Ryobi Group implemented various measures including
advancing aggressive marketing activities, developing new products responsive to customer
needs, cutting costs and expenses, and increasing operational efficiency.
During fiscal 2005, the Company achieved growth in revenues and operating income,while net income decreased. Consolidated net sales increased 1.7% compared with the previous fiscal year to ¥158.0 billion. Domestic net sales rose 2.7% to ¥114.7 billion, while
overseas net sales edged down 0.6% to ¥43.2 billion. Operating income rose 4.7% to ¥10.8
billion, while net income dropped 48.6% to ¥6.6 billion.
Decreased sales in the Die Castings Business were offset by sales growth in the Printing
Equipment Business and the Power Tools and Builders’ Hardware Business. As a result of
the growth of net sales, cost-cutting efforts and other factors, Ryobi achieved record operating income for the third consecutive year. The primary reason for the decrease in net income
was the lack of income from the sale of marketable securities as the Company recorded during the previous fiscal year.
In accordance with its corporate philosophy, Ryobi aims to continually create value andto realize a better society by carrying out its social responsibilities. These efforts form thefoundation of our management. Social responsibility is comprised not only of offering usefulproducts and services, but also includes an array of other activities such as proactive disclosure of information, compliance with statutory regulations, concern for the environment, andsocial contribution activities. In order to achieve growth and development while fulfilling oursocial responsibilities, Ryobi establishes and implements corporate governance tailored toits unique characteristics as a company, which is one of its most important management
activities.
Ryobi will continue to expand and intensify its efforts to be a sound and dynamic corporation, and we ask for your continued understanding and support.

June 2005

Hiroshi Urakami

Susumu Yoshikawa

Chairman and CEO

President and COO

RYOBI LIMITED ANNUAL REPORT 2005

3

TOPICSDIE CASTINGS
Our lightweight aluminum die cast products offer exceptional durability and have superior recycling properties.
Ryobi’s products are used in the manufacturing of a variety
of automobile components that aim for high fuel-efficiency
by being lighter in weight. For example, conventional automobile subframes made of steel have been changed to die
cast products through Ryobi’s state of the art technology,

Automobile subframe

and made approximately 10 kg lighter.

PRINTING EQUIPMENT
The Company announced the development of the RYOBI
920 Series of the A1-size, high-speed, multicolor offset
printing presses. These models are equipped with a combination of superior printing functions and highproductivity, and have optimal specifications for widelyHigh-speed multicolor offset printing press RYOBI 924

used paper sizes mainly in China, but also in other Asian
countries. The RYOBI 920 Series debuted to high acclaim
at China’s largest printing technology exhibition, CHINA
PRINT 2005, held in May 2005.
Ryobi’s exhibit at
CHINA PRINT 2005

POWER TOOLS AND BUILDERS’ HARDWARE
Maneuverable Ryobi blower vacuums accomplish bothblower and vacuum functioning in one unit, and utilize
easy fingertip lever switches for switching from one function to the other. The vacuum boasts superior suction
strength and reduces the size of vacuumed leaves to onetenth of their original size. The RESV-2000 released in 2004
has a nozzle that can be extended up to 10 cm, and isreceiving high praise for its ability to be adjusted to theheight of the user, offering more comfortable operability.

Blower vacuum RESV-2000

Door closers are the core product of our Builders’Hardware Business, with an abundant lineup ranging fromclosers for office buildings to homes. Included in this lineup is the compact D-1650, which meets the strictest
standard in the United States for durability, and the D-3550
Series, also recognized for meeting the highest durability
standards in the United States and Europe.
4

RYOBI LIMITED ANNUAL REPORT 2005

Door closer D-3550

ESTABLISHMENT OF DIE CASTINGS BUSINESS SUBSIDIARY IN CHINA
Ryobi established subsidiary Ryobi Die Casting Dalian Co., Ltd. in April 2005 in China for the manufacturing and sales of
die and die cast products. Production operations are scheduled to begin in November 2006. In recent years, global automobile manufacturers have continued to set up operations in China, and the demand for production of die cast products
in China is increasing rapidly. With its operations expanding from Japan to the United States, Europe, and China, Ryobi
is redoubling its efforts to meet demand for die cast products from its customers around the globe.

CORPORATE SOCIAL RESPONSIBILITY

The Ryobi Group’s corporate philosophy, “Create a sound and dynamic corporation throughtechnology, trust and challenge,” guides us not only in offering manufacturing and services, butalso indicates our determination to grow and develop while fulfilling our social responsibilities.
PROTECTION OF THE ENVIRONMENT AND
SOCIAL CONTRIBUTION ACTIVITIESThe Board of Directors is primarily responsible for decision-making related to important matters and oversight ofthe execution of operations. The Corporate Operating

NPO: Ryobi Social Contribution Foundation
Ryobi established the Ryobi Social Contribution Foundationin 2004, a nonprofit organization (NPO) dedicated toenhancing and expanding the scale and content of ourenvironmental protection and social contribution activities.
To commemorate the establishment of the foundation lastyear, it donated wheelchairs and folding beds to local

Committee, composed primarily of corporate officers,
reviews the progress of the execution of operations. Boththe Board of Directors and the Corporate Operating
Committee meet on a monthly basis. Moreover, theCompany has established a Compensation Committee tomake decisions regarding remuneration of Directors, aswell as established a Personnel and Organizationsocial welfare facilities.

Committee to nominate Directors and corporate officers
for optimizing the placement and nurturing of personnel,

ISO14001 Certification Received
Within the Ryobi Group, 17 facilities in 13 companies haveand the functionality of the organization.

acquired ISO 14001 certification, the international standard
for environment management systems, as of June 30,
2005. Each company and facility constructs an environmental management system, sets targets and objectives toreduce environmental impact, and works to conserve energy and resources, reduce waste, and promote recycling.

Compliance Structure
The Ryobi Compliance Committee was established toassure that corporate activities are conducted equitably,
ethically, and in compliance with statutory regulations,according to the Company’s Code of Conduct and corresponding Standards of Conduct.

CORPORATE GOVERNANCE

Risk Management StructureManagement Structure

In order to prevent the occurrence of risk and to ensure

Ryobi has adopted the corporate auditor system. As of

rapid response to the occurrence of risk, risk management

June 29, 2005, the Board of Directors consisted of nine

regulations and a manual for management of individual

members and the Corporate Auditors consisted of fourrisks has been drawn up. A permanent office for risk man-members, two of whom were outside corporate auditors.

agement has been established, and formulates

In addition, the Company introduced a corporate officer

countermeasures for instances when risk occurs to ensure

system from June 2000, which currently consists of 14 cor-

timely and appropriate response.

porate officers. All Directors concurrently hold positions ascorporate officers.
RYOBI LIMITED ANNUAL REPORT 2005

5

FINANCIAL SECTIONFISCAL PERIOD COMPARATIVE SUMMARY
RYOBI LIMITED AND CONSOLIDATED SUBSIDIARIES(For the years ended March 31)

Millions of yen

2005

2004

2003

2002

2001

2000

Net sales ..............................................

¥157,964¥155,251¥156,458¥156,139¥184,282¥240,074

Cost of sales ........................................

125,157

123,749

126,536

126,113

144,567

190,214Gross profit ..........................................

32,80731,50229,92230,026

39,71549,860expenses.............................................

21,973

21,155

21,47023,662

29,57642,557

Operating income ...............................

10,834

10,347

8,452

6,364

10,1397,303

Income taxes .......................................

3,902

3,608

1,504

2,188

(1,150)(11,231)

Net income ..........................................

6,581

12,812

4,471

2,081

2,907

2,831

Total assets..........................................

¥157,420¥160,574¥165,487¥165,401¥193,001¥238,080

Total shareholders’ equity ..................

55,29450,04038,36633,37929,50133,360Interest-bearing debt ..........................

44,502

53,63869,731

77,76396,899126,828

For the fiscal period:

Selling, general and administrative

As of fiscal year-end:

Yen

Per share data:
Net income ..........................................

¥ 39.33¥ 76.40¥ 26.26¥ 12.19¥ 17.04¥ 16.59

Shareholders’ equity ...........................

330.62299.05227.84195.55172.81

195.51

Cash dividends ....................................

7.50

7.50

—

—

—

—

4.1

5.5

3.0

%

Other data:
Operating income margin ..................

6.9

6.7

Net income margin .............................

4.2

8.3

2.9

1.3

1.6

1.2

Return on assets (ROA) ......................

4.1

7.9

2.7

1.2

1.3

1.2

Return on equity (ROE) .......................

12.5

29.0

12.5

6.6

9.2

8.6

Shareholders’ equity ratio...................

35.1

31.2

23.2

20.2

15.3

14.0

Asset turnover ratio (times) ................

0.99

0.95

0.95

0.87

0.85

1.02

5.4

Millions of yen

Capital expenditure .............................

¥ 7,595¥ 5,773¥ 4,117¥ 3,943¥ 4,541¥ 8,672

Depreciation and amortization ...........

5,439

5,201

5,631

6,198

7,002

9,492

Free cash flow .....................................

8,076

15,773

12,027

12,58428,032

15,225

Number of employees (Persons).......

5,334

5,364

5,669

6,090

6,480

8,354

Notes: 1. Net income per share figures are based on the weighted average number of shares outstanding each year.
2. Cash dividends per share are the amounts applicable to the respective years, including dividends to be paid after the end of the year.

6

RYOBI LIMITED ANNUAL REPORT 2005

MANAGEMENT’S DISCUSSION AND ANALYSISANALYSIS OF FINANCIAL POSITION AND OPERATING RESULTS(1) Summary of significant accounting policies
The consolidated financial statements of the Ryobi Group have been prepared in conformity with accounting principles generally accepted in Japan. The financial statements of overseas subsidiaries have been prepared in conformity with accounting
principles generally accepted in each country.
(2) Analysis of operating results for the fiscal year ended March 31, 2005
Net sales
Ryobi’s consolidated net sales increased year on year. Despite a drop in sales in the Die Castings Business, sales were up in
both the Printing Equipment and Power Tools and Builders’ Hardware Businesses.
Although sales of die castings to domestic automobile manufacturers increased year on year, this was offset by the
decline in sales at Ryobi’s U.S.-based subsidiaries due to the yen’s appreciation against the U.S. dollar. In the Printing
Equipment Business, domestic and export sales of medium-size offset printing presses (for B2, A2 and B3 paper sizes) werestrong. Despite a decline in domestic sales of power tools, robust export of power tools and growth in domestic sales ofbuilders’ hardware contributed to an overall rise in Power Tools and Builders’ Hardware Business sales.
For the fiscal year under review, consolidated net sales were adversely affected by approximately ¥1,400 million, compared with the previous fiscal year, due to movements in foreign currency exchange rates applied to consolidation. On a
year-on-year basis, the yen appreciated against the U.S. dollar to the tune of 7.9%, while the yen depreciated 3.6% against thesterling pound. Accounting for these factors, Ryobi's consolidated net sales edged up 1.7% compared with the previous fiscal
year to ¥157,964 million.
Operating income
Ryobi enjoyed an increase in earnings for the fiscal year ended March 31, 2005, underpinned by an increase in sales andefforts to reduce input costs.
By business segment, earnings in the Printing Equipment and Power Tools and Builders' Hardware Businesses increased
year on year. In the Die Castings Business, however, Ryobi was unable to fully pass on the increase in raw material costs tosales prices. This in turn contributed to a drop in die casting profits.
Despite this drop, operating income rose 4.7% year on year to ¥10,834 million, the third consecutive increase and a record
result for Ryobi.
NET SALESOPERATING INCOME

Millions of yen

Millions of yen

250,000

12,000240,074

10,83410,000200,000

10,347

10,139184,282
8,452
156,139

156,458

155,251

157,9648,000

150,000

7,303
6,364

6,000
100,000
4,000

50,000

0

2,000

2000

2001

2002

2003

2004

2005

0

2000

2001

2002

2003

RYOBI LIMITED ANNUAL REPORT 2005

2004

2005

7

Net income

NET INCOME

In the fiscal year under review, interest expense fell ¥282 million year on year mainly attributable to the drop in

Millions of yen

15,000interest-bearing debt (excluding discounted notes receivable)
by ¥9,136 million.

12,812
12,000Net income for the fiscal year was also impacted by theabsence of gains in sales of available-for-sale securities. In the

9,000

previous fiscal year, these gains totaled a substantial ¥8,236
million.

6,581
6,000

As a result of these factors, consolidated net income for

4,471

the period amounted to ¥6,581 million, a decrease of 48.6%
compared with the previous fiscal year.

3,000

0

2,907

2,831

2,081

2000

2001

2002

2003

2004

2005

Operating results by business segment
Die Castings
Sales in the Die Castings Business edged down 0.8% year on year to ¥105,491 million, while operating income was ¥5,669 million, a drop of 7.8%. The ratio of operating income to sales was 5.4%, as compared with 5.8% in the previous fiscal year.
In the fiscal year under review, overall sales declined. The steady sale of products to domestic automobile manufacturers
was more than offset by a decrease in sales at Ryobi’s U.S.-based subsidiaries, which was attributable to the appreciation of
the yen against the U.S. dollar. Despite efforts to curtail costs and improve productivity, the division experienced a decline inearnings due to the increase in raw material costs.

NET SALESBY BUSINESS SEGMENT

OPERATING INCOMEBY BUSINESS SEGMENT

Millions of yen

Millions of yen

250,000

12,0007,293
10,0001,866

200,000

104,094

2,521
50,834150,000

25,403

8,000

909
1,569
794
24,77923,79925,04632,77823,17322,741
22,69324,349

1,154

2,024

2,113

743
1,581

1,778
6,000

2,272

3,051

6,149

5,669

555
638

1,289

5,509

5,670

(342)

(89)

(98)

2002

2003

2004

27,6944,000

100,000

8,099
5,736

2,000
50,000 103,284

107,754

99,099107,762

106,309

105,491
0

(602)
0

2000

2001

DIE CASTINGS

2002

2003

PRINTING EQUIPMENT

POWER TOOLS AND BUILDERS’ HARDWARE

8

2004

2005

-2,000(1,355)2000
DIE CASTINGS

OTHER

2001

PRINTING EQUIPMENT

POWER TOOLS AND BUILDERS’ HARDWARE

RYOBI LIMITED ANNUAL REPORT 2005

OTHER

2005

Printing Equipment
Sales in the Printing Equipment Business climbed 13.7% year on year to ¥27,694 million. Operating income surged 34.3% to¥3,051 million for a ratio of operating income to sales of 11.0%, up from 9.3% in the previous fiscal year.
Robust sales were bolstered by a strong performance in domestic and export markets of medium-size offset printingpresses (for B2, A2 and B3 paper sizes). The significant growth in earnings is in line with the increase in sales and the results ofsuccessful initiatives to reduce costs.
Power Tools and Builders’ Hardware
In the Power Tools and Builders’ Hardware Business, sales rose 4.1% compared with the previous fiscal year to ¥24,779 million, while operating income increased 4.4% to ¥2,113 million. The ratio of operating income to sales for the segment was
8.5%, on par with the previous fiscal year.
Despite a decline in domestic sales of power tools, results were buoyed by the export of power tools and sales in Japan ofbuilders’ hardware. As a result, the Power Tools and Builders’ Hardware Business reported an overall increase in operating
results. On the earnings front, profits increased year on year, reflecting the rise in segment sales and improved manufacturing
efficiency.
(3) Analysis of capital resources and liquidity
Total assets, total liabilities and shareholders’ equity
Total assets as of March 31, 2005 declined ¥3,154 million compared with the end of the previous fiscal year to ¥157,420 million. The major components were a reduction in cash and cash equivalents as well as deferred tax assets. Total liabilities fell
¥8,586 million to ¥101,202 million, primarily reflecting the reduction of interest-bearing debt. Excluding discounted notes
receivable, interest-bearing debt as of the fiscal year-end was ¥44,502 million, down ¥9,136 million, or 17.0%. Total shareholders’ equity amounted to ¥55,294 million as of March 31, 2005, an increase of ¥5,254 million. This increase essentially reflected
the net income for the period. Accounting for all these factors, the shareholders’ equity ratio was 35.1%.

TOTAL ASSETS &TOTAL SHAREHOLDERS’ EQUITYOPERATING INCOME MARGIN &NET INCOME MARGIN

Millions of yen%%

250,000

10

30

238,0808.3
200,000

165,401 165,487

6.9
160,574 157,420

150,000

20

6.7

6

5.5
15

5.4
100,000

12.5

4

12.5

4.2

4.1

10

50,04050,00033,36029,50133,3792

38,3662.9

3.0

55,294

1.6

2000

2001

2002

2003

2004

2005

0

2000

8.6

9.2
7.9
6.6

5

1.3

2.7

1.2
0

29.0

25

8

193,001

ROE & ROA

2001

2002

TOTAL ASSETSOPERATING INCOME MARGIN

TOTAL SHAREHOLDERS’ EQUITYNET INCOME MARGIN

2003

2004

RYOBI LIMITED ANNUAL REPORT 2005

2005

0

1.2

1.3

1.2

2000

2001

2002

ROE

ROA

2003

4.1

2004

2005

9

Liquidity
The Ryobi Group’s free cash flow (the sum total of net cash from operating activities and net cash from investing activities)
declined ¥7,697 million, from ¥15,773 million in the previous fiscal year to ¥8,076 million. The principal components were proceeds from sale of investments in securities of ¥2 million, a substantial decline from ¥8,536 million in the previous fiscal year,
and the increase in purchase of property, plant and equipment by ¥1,669 million, representing capital expenditure towardmachinery and equipment.
The Ryobi Group has positioned adequate cash flows as critical to its financial strategy. In principle, the Ryobi Group utilizes cash generated from operating activities as the primary source for its capital expenditure while taking into consideration
overall investment efficiency. In the event of a cash surplus, the Ryobi Group applies excess funds to the reduction of interestbearing debt.
Major cash flow indicators and trends are summarized in the following table:
2005

2004

Shareholders’ equity ratio (%).........................................................................................

35.1

31.2

Shareholders’ equity ratio at fair market value (%)........................................................

51.8

42.7

Interest-bearing debt – Repayment years......................................................................

3.1

4.6

Interest coverage ratio (%)..............................................................................................

19.5

11.2

Notes: Shareholders’ equity ratio: Shareholders’ equity / total assets
Shareholders’ equity ratio at fair market value: Shareholders’ equity at fair market value / total assets
Interest-bearing debt – Repayment years: Interest-bearing debt / net cash from operating activities
Interest coverage ratio: Net cash from operating activities / interest payment
1. Each of the indicators identified in the preceding table is calculated based on figures from Ryobi’s consolidated financial statements.
2. Fair market value is calculated using the closing market price of Ryobi’s publicly listed shares as of the fiscal year-end multiplied by the number of common sharesissued and outstanding (excluding treasury stock).
3. Interest-bearing debt includes all liabilities, which incur interest in connection with liabilities listed on Ryobi’s consolidated balance sheet.
4. Net cash from operating activities is taken from Ryobi’s consolidated statements of cash flows.
5. Interest payment is the amount of interest paid and is taken from Ryobi’s consolidated statements of cash flows.

CASH FLOWCAPITAL EXPENDITURE &DEPRECIATION AND AMORTIZATIONSHAREHOLDERS’ EQUITY RATIO &INTEREST-BEARING DEBT

Millions of yen

Millions of yen

Millions of yen%

20,00010,000150,000

40

15,15915,000 13,960 14,774

13,137
13,25814,187
11,660

9,492
8,672

8,000

10,00035.1

126,828
7,595

120,000

31.2

32

7,002
5,000

4,113

0

-10,000(6,111)(7,368)77,763

3,943

4,000

20.2

4,117

14.0

(10,399)

69,731
53,63815.3

1644,502830,0002,000(15,990)

24

23.2

60,000(8,024)(17,670)-20,000(32,598)
2000

2001

2002

2003

2004

2005

0

2000

2001

2002

2003

2004

2005

0

2000

2001

2002

CASH FROM OPERATING ACTIVITIESCAPITAL EXPENDITURE

SHAREHOLDERS’ EQUITY RATIOCASH FROM INVESTING ACTIVITIESDEPRECIATION AND AMORTIZATIONINTEREST-BEARING DEBT

CASH FROM FINANCING ACTIVITIES

10

5,439

90,0004,541(3,132)-15,000-35,000

5,631 5,773
5,201

(553)

-5,00096,899

6,198
6,000

1,265

RYOBI LIMITED ANNUAL REPORT 2005

2003

2004

0
2005

(4) Strategies and operating outlook by business segment
Business segment strategy
Die Castings
Ryobi is planning increase sales in the Die Castings Business through the development of high-quality, high-value-added products, efforts to reinforce R&D capabilities and optimal application of its Japan, U.S. and Europe manufacturing structure. Ryobi
will also increase efforts to promote a global die casting strategy. In April 2005, Ryobi established a subsidiary in China to further expand its business in the region. Moreover, Ryobi will endeavor to curtail costs by enhancing manufacturing and sales
efficiency on both a global and Group-wide basis.
In the automobile-related sector, Ryobi will bolster its technical capabilities in response to demands for more lightweightchassis and aluminum die cast components for automobile frames. At the same time, Ryobi will strengthen its abilities toaddress calls for large orders and production with processing needs.
In addition, Ryobi will work to uncover new opportunities and cultivate demand in fields unrelated to the automobile sector
including the electronics and communications industries, and fields with requirements for high recyclability.
Printing Equipment
In recent years, the Ryobi Group has focused efforts on its medium-size offset printing presses (for B2, A2 and B3 paper sizes).
In the Printing Equipment Business, Ryobi will continue activities in this area and, at the same time, reinforce efforts toward
new product development. Ryobi is dedicated to better addressing the needs of its customers and will work to enhance product precision and functionality with additional features such as multicolor presses.
Ryobi will also pursue additional cost reductions by shrinking production lead times, improving operations and enhancing
efficiencies in both production and marketing.
In response to increased demand for medium-size offset printing presses, Ryobi will upgrade and expand its manufacturing capabilities.
Power Tools and Builders’ Hardware
In the power tools business, which includes electric power tools, lawn and garden and other equipment, Ryobi will step up
marketing efforts and improve its product development capabilities. Ryobi will concentrate on improving productivity at its
China-based Dalian subsidiary, and reinforce overall manufacturing with the aim of increasing price competitiveness.
In the builders’ hardware business, Ryobi will promote the development of high-value-added products and work to
improve productivity at its subsidiary in Dalian, China and affiliated company in Taiwan. Through these measures, Ryobi anticipates a significant improvement in price competitiveness.
Ryobi Group’s Forecasts
Ryobi expects growth in sales and profits for the fiscal year ending March 31, 2006 based on the following factors. Despite an
expected sales decrease in the Die Castings Business at our U.S.-based subsidiaries, overall sales are forecast to rise, underpinned by growth in the Printing Equipment Business and in the Power Tools and Builders’ Hardware Business. Profits are
expected to edge upward, supported by the increase in sales.
Millions of yen

Net Sales..........................................................................................................................................
Operating Income ...........................................................................................................................
Net Income......................................................................................................................................

¥160,000 (+1.3%)
11,200 (+3.4%)
6,600 (+0.3%)

Note: Numbers in parentheses are comparison data from the prior fiscal year.

Forward-Looking Statements
Items containing forward-looking statements such as performance forecasts, future trends, and strategies are based upon management's assumptions inlight of the information available as of the end of the fiscal year under review and may contain various risks and uncertainties. The Ryobi Group cautions thatits actual actions and performance may differ significantly from these forward-looking statements due to numerous factors outside of Group's control suchas, but not limited to: including general economic conditions, the business environment, trends in market demand and foreign exchange rates.

RYOBI LIMITED ANNUAL REPORT 2005

11

C O N S O L I D AT E D B A L A N C E S H E E T S
RYOBI LIMITED AND CONSOLIDATED SUBSIDIARIES(As of March 31, 2005 and 2004)

Thousands of
U.S. dollars(Note 1)Millions of yen

ASSETS
Current assets
Cash and cash equivalents ...........................................................
Time deposits (Note 7) ..................................................................
Notes and accounts receivable (Note 7)
Trade ..........................................................................................
Unconsolidated subsidiaries and affiliates ...............................
Other ..........................................................................................
Allowance for doubtful accounts ..............................................
Inventories (Note 4) .......................................................................
Deferred tax assets (Note 10) .......................................................
Prepaid expenses and other .........................................................
Total current assets ...................................................................

Property, plant and equipment (Notes 5, 6 and 7)
Land ...............................................................................................
Buildings and structures ...............................................................
Machinery and equipment ............................................................
Construction in progress ..............................................................
Total ...........................................................................................
Accumulated depreciation ............................................................
Net property, plant and equipment ...........................................

Investments and other assets
Investments in securities (Note 3) ................................................
Investments in and advances to unconsolidated subsidiaries
and affiliates .................................................................................
Intangible fixed assets ..................................................................
Deferred tax assets (Note 10) .......................................................
Other .............................................................................................
Allowance for doubtful accounts ..................................................
Total investments and other assets ..........................................
Total ...........................................................................................
See notes to consolidated financial statements.

12

RYOBI LIMITED ANNUAL REPORT 2005

2005

2004

2005

¥ 15,303
2,736¥ 17,595
2,738$ 142,499
25,477

38,270
119
1,535
(101)
27,5282,129
228
87,74737,713
136
1,213
(133)
27,2672,896
263
89,688356,365
1,108
14,294(941)
256,337
19,8252,123
817,087

19,55738,381
81,039962
139,939(85,102)54,837

19,407
38,23980,539775
138,960(85,254)
53,706

182,112357,398754,624
8,958
1,303,092(792,458)
510,634

9,428

9,615

87,792

340
1,638
1,120
2,494
(184)
14,836¥157,420

320
1,607
3,214
2,756
(332)
17,180¥160,574

3,166
15,253
10,42923,224(1,713)
138,151$1,465,872

Thousands of
U.S. dollars(Note 1)Millions of yen

LIABILITIES AND SHAREHOLDERS’ EQUITY

2005

2004

2005

¥ 19,806
11,033¥ 22,222
10,428$ 184,431
102,738

30,236
416
5,494
4,372
490
4,533
76,38029,565
353
4,539
4,800
498
5,604
78,009281,553
3,874
51,15940,711
4,563
42,210711,239

Long-term liabilities
Long-term debt (Note 7) ................................................................
Accrued severance indemnities (Note 8) ......................................
Other long-term liabilities (Note 10) ..............................................
Total long-term liabilities ............................................................

13,663
6,879
4,280
24,82221,0986,921
3,760
31,779127,228
64,05639,855
231,139

Minority interests ...........................................................................

924

746

8,604

18,472
23,58818,503626
3,029(8,094)

18,472
23,524
13,176626
3,125(8,205)172,009219,648
172,297
5,829
28,206(75,370)(830)
55,294¥157,420(678)
50,040¥160,574(7,729)514,890$1,465,872

Current liabilities
Short-term borrowings (Note 7) ....................................................
Current portion of long-term debt (Note 7) ...................................
Notes and accounts payable
Trade ..........................................................................................
Unconsolidated subsidiaries and affiliates ...............................
Other ..........................................................................................
Accrued expenses ........................................................................
Income taxes payable ...................................................................
Other current liabilities (Note 10) ..................................................
Total current liabilities ................................................................

Commitments and contingent liabilities (Notes 12, 13 and 14)
Shareholders’ equity (Notes 9 and 16)
Common stock
Authorized: 500,000,000 shares
Issued: 171,230,715 shares ......................................................
Capital surplus ...............................................................................
Retained earnings .........................................................................
Land revaluation reserve (Note 6) .................................................
Unrealized gain on available-for-sale securities ............................
Foreign currency translation adjustments ....................................
Treasury stock (3,986,172 shares in 2005; 3,898,652 sharesin 2004) .........................................................................................
Total shareholders’ equity .........................................................
Total ...........................................................................................

RYOBI LIMITED ANNUAL REPORT 2005

13

C O N S O L I D AT E D S TAT E M E N T S O F I N C O M E
RYOBI LIMITED AND CONSOLIDATED SUBSIDIARIES(For the years ended March 31, 2005 and 2004)

Thousands of
U.S. dollars(Note 1)Millions of yen

Net sales ..........................................................................................
Cost of sales ...................................................................................
Gross profit ................................................................................
Selling, general and administrative expenses .............................
Operating income ......................................................................
Other income
Interest and dividends ..................................................................
Gain on sales of investments in securities ...................................
Other .............................................................................................
Total other income .....................................................................
Other expenses
Interest ..........................................................................................
Loss on disposal of property, plant and equipment .....................
Impairment loss on fixed assets (Note 5) .....................................
Other .............................................................................................
Total other expenses .................................................................
Income before income taxes and minority interests ...................
Income taxes (Note 10)
Current ..........................................................................................
Deferred ........................................................................................
Total income taxes .....................................................................
Minority interests ...........................................................................
Net income ......................................................................................

2005

2004

2005

¥157,964
125,157
32,807
21,973
10,834¥155,251
123,749
31,502
21,155
10,347$1,470,938
1,165,444
305,494
204,609
100,885

139
0
1,669
1,808

247
8,236
1,280
9,763

1,294
0
15,542
16,836

720
518
—
761
1,999
10,643

1,002
624
689
1,266
3,581
16,529

6,705
4,824
—
7,086
18,615
99,106

712
3,190
3,902

917
2,691
3,608

6,630
29,70536,335

160
6,581

109
¥ 12,812¥$

U.S. dollars(Note 1)Yen

Per share of common stock (Note 2(n))
Net income ....................................................................................
Cash dividends applicable to the year ..........................................
See notes to consolidated financial statements.

14

RYOBI LIMITED ANNUAL REPORT 2005

¥

39.33
7.50

1,490
61,281

¥

76.40
7.50

$

0.366
0.070

C O N S O L I D AT E D S TAT E M E N T S O F S H A R E H O L D E R S ’ E Q U I T Y
RYOBI LIMITED AND CONSOLIDATED SUBSIDIARIES(For the years ended March 31, 2005 and 2004)

Millions of yen
Issuednumber ofshares ofcommon stock(thousands)

Commonstock

CapitalsurplusRetainedearnings

Balance at March 31, 2003 .......... 171,231 ¥ 18,472 ¥ 23,517 ¥365
Net income .................................
———
12,812
Bonuses to directors andstatutory auditors ......................
—
—
—
(1)
Unrealized gain on
available-for-sale securities
decrease ....................................
————
Foreign currency translation
adjustments ..............................
————
Disposal of treasury stock(18,410 shares) ..........................
——
7—
Repurchase of treasury stock(1,072,644 shares) .....................
————
Balance at March 31, 2004 .......... 171,231
18,472
23,524
13,176
Net income .................................
—
—
—
6,581
Cash dividends, ¥7.50 per share ..
———(1,254)
Unrealized gain on
available-for-sale securities
decrease ....................................
————
Foreign currency translation
adjustments ..............................
————
Disposal of treasury stock(332,532 shares) ........................
——
64—
Repurchase of treasury stock(414,181 shares) ........................
————
Other net increase in treasury
stock (5,871 shares) ..................
————
Balance at March 31, 2005 .......... 171,231 ¥ 18,472 ¥23,588 ¥18,503

Land
revaluation
reserve

Unrealized
Foreign
gain oncurrency
available-fortranslation-sale securities adjustments

Treasury
stock

¥ 626
—

¥3,666—¥(7,843)—¥ (437)
—

—

—

—

—

—

(541)

—

—

—

—

(362)

—

—

—

—

3

—
626
—
—

—
3,125
—
—

—
(8,205)
—
—

(244)
(678)
—
—

—

(96)

—

—

—

—

111

—

—

—

—

41

—

—

—

(184)

—
¥ 626

—
¥3,029—¥(8,094)(9)¥(830)

Thousands of U.S. dollars (Note 1)

Balance at March 31, 2004 ..........
Net income .................................
Cash dividends, $0.07 per share ..
Unrealized gain on
available-for-sale securities
decrease ....................................
Foreign currency translation
adjustments ..............................
Disposal of treasury stock(332,532 shares) ........................
Repurchase of treasury stock(414,181 shares) ........................
Other net increase in treasury
stock (5,871 shares) ..................
Balance at March 31, 2005 ..........

$172,009 $219,052 $122,693 $5,829——
61,281——— (11,677)—$ 29,100 $ (76,404) $ (6,313)
—
—
—
—
—
—

—

—

—

—

(894)

—

—

—

—

—

—

—

1,034

—

—

596

—

—

—

—

382

—

—

—

—

—

—

(1,714)———$172,009 $219,648 $172,297—$5,829——(84)$ 28,206 $ (75,370) $(7,729)

See notes to consolidated financial statements.

RYOBI LIMITED ANNUAL REPORT 2005

15

C O N S O L I D AT E D S TAT E M E N T S O F C A S H F L O W S
RYOBI LIMITED AND CONSOLIDATED SUBSIDIARIES(For the years ended March 31, 2005 and 2004)

Thousands of
U.S. dollars(Note 1)Millions of yen

2005

2004

¥ 10,643¥ 16,529

(962)
5,444
—
484
0

(1,087)
5,231
689
615
(8,236)(8,958)50,694
—
4,507
0

(888)
(278)
885
(688)
(453)
14,187(3,787)
1,690(1,335)440
911
11,660(8,269)(2,589)8,241(6,407)(4,218)132,107

Investing activities
Purchase of property, plant and equipment .................................
Proceeds from sale of property, plant and equipment .................
Proceeds from sale of investments in securities .........................
Other .............................................................................................
Net cash provided by (used in) investing activities ...........

(6,586)526
2(53)(6,111)(4,917)
388
8,536
106
4,113

(61,328)
4,898
19
(494)
(56,905)

Financing activities
Proceeds from long-term debt ..................................................
Repayments of long-term debt .................................................
Decrease in short-term borrowings, net ...................................
Acquisition of treasury stock .....................................................
Cash dividends paid ..................................................................
Other ..........................................................................................
Net cash used in financing activities .................................

3,600(10,333)(2,311)(184)(1,254)
83(10,399)

5,059(15,265)(5,287)
(243)
—
(254)
(15,990)

33,523(96,219)(21,520)(1,713)(11,677)
772(96,834)

Foreign currency translation adjustments on cash and cash
equivalents .....................................................................................

31

(33)

289

Net decrease in cash and cash equivalents .................................

(2,292)(250)(21,343)

Cash and cash equivalents at beginning of year .........................

17,595

17,845

163,842

Cash and cash equivalents at end of year ....................................

¥ 15,303¥ 17,595$ 142,499

Additional cash flow information
Interest paid ...............................................................................

¥

¥

$

Operating activities
Income before income taxes and minority interests ....................
Adjustments for :Income taxes - paid ...................................................................
Depreciation and amortization ..................................................
Impairment loss on fixed assets ...............................................
Loss on sales or disposals of property, plant and equipment ..
Gain on sales of investments in securities ...............................
Changes in assets and liabilities
Increase in notes and accounts receivable ...........................
Decrease (increase) in inventories .........................................
Increase (decrease) in notes and accounts payable ............
Increase (decrease) in accrued expenses ............................
Other, net ...................................................................................
Net cash provided by operating activities .........................

16

RYOBI LIMITED ANNUAL REPORT 2005

729

1,039

2005

$

99,106

6,788

N OT E S T O C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S
RYOBI LIMITED AND CONSOLIDATED SUBSIDIARIESFor the years ended March 31, 2005 and 2004

1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements havebeen prepared in accordance with the provisions set forth in
the Japanese Securities and Exchange Law and its related
accounting regulations, and in conformity with accounting
principles generally accepted in Japan, which are different
in certain respects as to application and disclosure requirements of International Financial Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications and rearrangements have been madeto the consolidated financial statements issued domesticallyin order to present them in a form which is more familiar toreaders outside Japan. In addition, certain reclassifications
have been made in the 2004 consolidated financial statements to conform to the classifications used in 2005.
The notes to the consolidated financial statements include
information which is not required under accounting principles generally accepted in Japan but is presented herein
as additional information.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which Ryobi Limited (“the Company”) is incorporated and operates. The
translations of Japanese yen amounts into U.S. dollar
amounts are included solely for the convenience of readers outside Japan and have been made at the rate of ¥107.39
to $1, the approximate rate of exchange at March 31, 2005.
Such translations should not be construed as representations that the Japanese yen amounts could be converted
into U.S. dollars at that or any other rate.
2. Summary of Significant Accounting Policies(a) Consolidation
The consolidated financial statements include the accountsof the Company and its significant subsidiaries (“the Ryobi
Group”). Under the control or influence concept, those companies in which the Company, directly or indirectly, is able
to exercise control over operations are fully consolidated,
and those companies over which the Ryobi Group has theability to exercise significant influence are accounted forby the equity method.
(i) Consolidated subsidiaries
The major consolidated subsidiaries are listed below:
Tokyo Light Alloy Co., Ltd. (Japan)
Ryobi Holdings (USA), Inc.
Ryobi Die Casting (USA), Inc.
(ii) Affiliates
The major affiliate accounted for by the equity method is
Ryobi-Tech Corporation (Taiwan).
The number of consolidated subsidiaries and affiliates
accounted for by the equity method as of March 31, 2005
and 2004 was as follows:

2005

2004

Consolidated subsidiaries ...........................

14

15

Affiliates .......................................................

3

3

The number of unconsolidated subsidiaries and affiliates
not accounted for by the equity method as of March 31,
2005 and 2004 was as follows:
2005

2004

Unconsolidated subsidiaries .......................

3

3

Affiliates .......................................................

00

The investments in such unconsolidated subsidiaries arestated at cost. If the equity method of accounting had been
applied to the investments in these companies, the effecton the accompanying consolidated financial statements
would not be material.
All significant inter-company transactions, account balances and unrealized profits among the companies havebeen eliminated.
The excess of the cost of an acquisition over the fair valueof the net assets of the acquired subsidiary at the date ofacquisition is being amortized over a period of 5 years.
(b) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, deposits with banks and financial institutions which are unrestricted as to withdrawal or use, and which have original
maturities of three months or less.
(c) Inventories
Inventories are valued at cost for the Company and domestic subsidiaries and the lower of cost or market for foreignsubsidiaries. Cost is determined by methods according to
the classification of inventories as follows:(i) Finished products and work in process
The average method for the Company and domestic
subsidiaries.
Foreign subsidiaries mainly adopt the first-in first-out
method.
(ii) Raw materials, supplies and purchased goods
Die castings ............. Average method
Others ...................... Last purchase invoice pricemethodForeign subsidiaries mainly adopt the first-in first-out
method.
(d) Marketable and investment securities
Marketable and investment securities are classified and accounted for, depending on management’s intent, as follows:i) trading securities, which are held for the purpose of earning capital gains in the near term are reported at fair value,
and the related unrealized gains and losses are included inincome, ii) held-to-maturity debt securities, which are expected
to be held to maturity with the positive intent and ability tohold to maturity are reported at amortized cost, and iii) avail-

RYOBI LIMITED ANNUAL REPORT 200517

able-for-sale securities, which are not classified as either of
the aforementioned securities, are reported at fair value, withunrealized gains and losses, net of applicable taxes, reported
in a separate component of shareholders’ equity.
Non-marketable available-for-sale securities are stated atcost determined by the moving-average method.
For other than temporary declines in fair value, investment
securities are reduced to net realizable value by a charge toincome.
(e) Property, plant and equipment
Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment of the Company andits consolidated domestic subsidiaries is primarily computedby the declining-balance method at rates based on the estimated useful lives of the assets, while the straight-line
method is principally applied to the property, plant andequipment of consolidated foreign subsidiaries. The range
of useful lives is from 3 to 50 years for buildings and structures, and from 2 to 20 years for machinery and equipment.
(f) Long-lived assets
In August 2002, the Business Accounting Council issued aStatement of Opinion, “Accounting for Impairment of Fixed
Assets,” and in October 2003 the Accounting Standards
Board of Japan (ASB) issued ASB Guidance No.6, “Guidance
for Accounting Standard for Impairment of Fixed Assets.”
These new pronouncements are effective for fiscal years
beginning on or after April 1, 2005 with early adoption permitted for fiscal years ending on or after March 31, 2004.
The Ryobi Group adopted the new accounting standard
for impairment of fixed assets from the year ended March
31, 2004. The Ryobi Group reviews its long-lived assets for
impairment whenever events or changes in circumstanceindicate the carrying amount of an asset or asset group
may not be recoverable. An impairment loss would be recognized if the carrying amount of an asset or asset groupexceeds the sum of the undiscounted future cash flows
expected to result from the continued use and eventual
disposition of the asset or asset group. The impairment
loss would be measured as the amount by which the carrying amount of the asset exceeds its recoverable amount,which is the higher of the discounted cash flows from thecontinued use and eventual disposition of the asset or the
net selling price at disposition.
(g) Accrued severance indemnities and pension plan
The Company and domestic consolidated subsidiaries havea contributory or a non-contributory funded pension planand unfunded pension plans, which cover substantially allof their employees. Certain foreign consolidated subsidiaries have defined benefit pension plans.
Effective April 1, 2000, the Ryobi Group adopted a new
accounting standard for employees’ retirement benefits andaccounted for the liability for retirement benefits based on
the projected benefit obligations and plan assets at the balance sheet date. The amount of the transitional obligation18of ¥9,092 million ($84,663 thousand), determined as of the
beginning of this fiscal year, is amortized over ten years.
Unrecognized prior service cost is amortized at the beginning of this fiscal year by using straight-line method over
employees’ remaining service period or shorter period (primarily 15 years). Unrecognized net actuarial loss is amortized from the next fiscal year by using the straight-line
method over the employees’ remaining service period orless (primarily 15 years).
(h) Leases
All leases are accounted for as operating leases. Under
Japanese accounting standards for leases, finance leases
that deem to transfer ownership of the leased property to
the lessee are to be capitalized, while other finance leases
are permitted to be accounted for as operating lease transactions if certain “as if capitalized” information is disclosed
in the notes to the lessee’s financial statements.
(i) Income taxes
The Ryobi Group adopted an accounting method forinterperiod allocation of income taxes based on the asset
and liability method.
Deferred income taxes are recorded to reflect the impact
of temporary differences between assets and liabilities recognized for financial reporting purposes and such amounts
recognized for tax purposes. These deferred taxes aremeasured by applying currently enacted tax laws to thetemporary differences.
(j) Appropriation of retained earnings
Appropriations of retained earnings at each year end arereflected in the financial statements for the following year
upon shareholder’s approval.
(k) Translation of foreign currency accounts
All current and non-current receivables and payables denominated in foreign currencies are translated into Japanese yen at the exchange rates at the balance sheet date.
The foreign exchange gains and losses from translations
are recognized in the income statement to the extent thatthey are not hedged by forward exchange contracts.
(l) Translation of foreign currency financial statements(accounts of foreign subsidiaries)
The balance sheet accounts of the consolidated overseas
subsidiaries are translated into yen at the current exchange
rates as of the balance sheet date except for shareholders’equity, which is translated at the historical exchange rate.
Differences arising from such translation are shown as “Foreign currency translation adjustments” in a separate component of shareholders’ equity.
Revenue and expense accounts of the consolidated overseas subsidiaries are translated into yen at the average exchange rate.
(m) Derivative and hedging activities
The Ryobi Group uses derivative financial instruments tomanage its exposure to fluctuations in foreign exchange
and interest rates. Foreign exchange forward contracts and

RYOBI LIMITED ANNUAL REPORT 2005

interest rate swaps are utilized by the Ryobi Group to reduce foreign currency exchange and interest rate risks. The
Ryobi Group does not enter into derivatives for trading or
speculative purposes.
Derivative financial instruments and foreign currencytransactions are classified and accounted for as follows: a)
all derivatives be recognized as either assets or liabilities
and measured at fair value, and gains or losses on derivative translations are recognized in the income statement
and b) for derivatives used for hedging purposes, if derivatives qualify for hedge accounting because of high correlation and effectiveness between the hedging instruments
and the hedged items, gains or losses on derivatives aredeferred until of maturity of the hedged transaction.
The interest rate swaps which qualify for hedge accounting and meet specific matching criteria are not remeasured
at market value but the differential paid or received under
the swap agreements are recognized and included in interest expense or income.
(n) Per share information
Basic net income per share is computed by dividing net
income available to common shareholders, by the weightedaverage number of common shares outstanding for theperiod, retroactively for stock splits.
Diluted net income per share is not calculated because
no dilutive instruments were issued and outstanding forthe years ended March 31, 2005 and 2004.
Cash dividends per share presented in the accompanying consolidated statements of income are dividends applicable to the respective years including dividends to be
paid after the end of the year.

Thousands of U.S. dollars

2005
Cost

Unrealized
gain

Unrealized
loss

Fair value

Corporate shares ..

$28,001$47,453$(65)$75,389

Bonds ..................

931

—

(9)

922

Others ..................

93

—

(0)

93

Total .........................

$29,025$47,453$(74)$76,404

Available-for-sale:

Available-for-sale securities whose fair value was notreadily determinable as of March 31, 2005 and 2004 was
as follows:
Thousands of
U.S. dollars

Millions of yen

2005

2004

2005

Corporate shares ..........................

¥1,223¥1,224$11,388

Bonds ...........................................

—

1

—

Total .................................................

¥1,223¥1,225$11,388

Available-for-sale:

Proceeds from sales of available-for-sale securities for theyears ended March 31, 2005 and 2004 were ¥2 million ($19
thousand) and ¥8,536 million, respectively. Gross realized
gains and losses on these sales, computed on the movingaverage cost basis, were ¥0 million ($0 thousand) and ¥0
million ($0 thousand), respectively, for the year ended March
31, 2005 and ¥8,236 million and ¥0 million, respectively, forthe year ended March 31, 2004.
The book value of bonds by contractual maturity for securities classified as available-for-sale at March 31, 2005
and 2004 are as follows:

3. Marketable Securities and Investments in Securities
Information regarding each category of the securities classified as trading, held-to-maturity and available-for-sale atMarch 31, 2005 and 2004 was as follows:

Thousands of
U.S. dollars

Millions of yen

Due in one year or less .....................

2005

2004

¥

¥

—

—

2005
$

—

Due after one year through five

Millions of yen

2005
Cost

Unrealized
gain

Unrealized
loss

Fair value

Corporate shares ..

¥3,007¥5,096¥(7)¥8,096

Bonds ..................

100

—

(1)

99

Others ..................

10

—

(0)

10

Total .........................

¥3,117¥5,096¥(8)¥8,205years ...............................................

100

Total .................................................

¥ 100

1
¥

1

931
$

931

Available-for-sale:

4. Inventories
Inventories at March 31, 2005 and 2004 consisted of thefollowing:

Millions of yen
Millions of yen

Unrealized
gain

Unrealized
loss

Fair value

Available-for-sale:
Corporate shares ..

¥3,119¥5,323

2005

2004

2005

Finished products and purchased

2004
Cost

Thousands of
U.S. dollars¥(62)¥8,380

Others ..................

10

—

(0)

10

Total .........................

¥3,129¥5,323¥(62)¥8,390goods .............................................

¥12,283¥12,711$114,378

Work in process ...............................

10,0599,475

93,668Raw materials and supplies ..............

5,186

5,081

48,291

Total .................................................

¥27,528¥27,267$256,337

RYOBI LIMITED ANNUAL REPORT 2005

19

5. Long-lived Assets
The Ryobi group reviewed its long-lived assets for impairment as of the year ended March 31, 2004 and, as a result,recognized an impairment loss of ¥689 million ($6,416 thousand) as other expense on unoccupied land due to a decline of fair value. The carrying amount of the land waswritten down to the recoverable amount. The recoverable
amount of the land was measured at net selling price determined based on the tax purpose valuation, and considering their materiality.
No impairment loss was recognized for the year end
March 31, 2005.
6. Land Revaluation
Under the “Law of Land Revaluation” a subsidiary elected a
one-time revaluation of its own-use land to a value basedon real estate appraisal information as of March 31, 2002.
The resulting land revaluation excess represents unrealized appreciation of land and is stated, net of income taxes,
as a component of shareholders’ equity. There is no effecton the consolidated statement of income. Continuous readjustment is not permitted unless the land value subsequently declines significantly such that the amount of thedecline in value should be removed from the land revaluation excess account and related deferred tax liabilities.
The details of the one-time revaluation as of March 31,
2002 were as follows:

Millions of yen

Thousands of
U.S. dollars

Land before revaluation ....................

¥ 275$ 2,561

Land after revaluation ........................

1,981

18,447

Millions of yen

2005
insurance companies with interest
rates ranging from 1.19% to 4.75%:

Secured ........................................... ¥ 1,553 ¥ 1,583 $ 14,462
Unsecured .......................................

23,14329,833

Other ...............................................

—

110

—

Total .................................................

24,696

31,526229,966(11,033)(10,428)(102,738)

Less: Current portion ........................
Long-term debt less current portion ..

215,504¥ 13,663 ¥ 21,098 $ 127,228

The aggregate annual maturities of long-term debt at
March 31, 2005 were as follows:

Millions of yen

Thousands of
U.S. dollars

2006 ....................................................

¥11,033$102,738

2007 ....................................................

6,290

58,572

2008 ....................................................

3,557

33,122

2009 ....................................................

1,305

12,152

2010 ....................................................

2,416

22,4972011 and thereafter ..........................

95

885

Total ....................................................

¥24,696$229,966

Years Ending March 31

The assets of the Ryobi Group pledged as collateral for
short-term borrowings and long-term debt with banks andother financial institutions at March 31, 2005 and 2004 wereas follows:

Millions of yen

income taxes of ¥675 million

Thousands of
U.S. dollars

2005

2004

2005
$ 34,808

Net book value of property:($6,286 thousand) and attribution ofminority interest of ¥405 million¥ 626$ 5,829

As of March 31, 2005, the carrying amount of the land
after the above one-time revaluation exceeded the market
value by ¥562 million ($5,233 thousand).
7. Short-term Borrowings and Long-term Debt
The annual weighted average interest rates applicable toshort-term borrowings were 1.3% and 1.1%, at March 31,
2005 and 2004, respectively.
Commercial paper included short-term borrowings totaling ¥1,967 million ($18,316 thousand) and ¥2,024 million,
at March 31, 2005 and 2004, respectively.
Long-term debt at March 31, 2005 and 2004 consisted of
the following:

20

2005

Loans principally from banks andLand revaluation reserve, net of($3,771 thousand) ............................

2004

Thousands of
U.S. dollars

Buildings and structures ................

¥ 3,738¥ 3,662

Machinery and equipment ............

2,017

1,395

18,782Land .............................................

2,867

2,858

26,697

Time deposit .................................

108

108

1,005

Notes and accounts receivable ......

2,311

2,546

21,520Total .................................................

¥11,041¥10,569$102,812

8. Accrued Severance Indemnities and Pension Plan
The Company and its certain consolidated subsidiaries haveseverance payment plans for employees. Under most circumstances, employees terminating their employment areentitled to retirement benefits determined based on the rateof pay at the time of termination, years of service and certain
other factors. Such retirement benefits are made in the formof a lump-sum severance payment from the Company orfrom certain consolidated subsidiaries and annuity paymentsfrom a trustee. Employees are entitled to larger payments if
the termination is involuntary, by retirement at the mandatory retirement age, by death, or by voluntary retirement at
certain specific ages prior to the mandatory retirement age.

RYOBI LIMITED ANNUAL REPORT 2005

The liabilities for employees’ retirement benefits at March
31, 2005 and 2004 consisted of the following:Thousands of
U.S. dollars

Millions of yen

2005
Projected benefit obligation ..............

2004

2005

¥ 30,962 ¥ 29,923 $ 288,314

Fair value of plan assets ....................

(18,177)(17,197)

Unrecognized prior service cost ........

2,883

3,101

(169,262)
26,846

Unrecognized actuarial loss ..............

(5,694)(5,152)(53,022)

Unrecognized transitional obligation ..

(3,103)(3,754)(28,895)

Prepaid pension cost ........................

8

—

75

Net liabilities ..................................... ¥ 6,879 ¥ 6,921 $ 64,056

The components of net periodic retirement benefit costs forthe years ended March 31, 2005 and 2004 were as follows:
Thousands of
U.S. dollars

Millions of yen

Service cost .....................................

2005

2004

2005

¥1,009¥1,289$ 9,395

Interest cost .....................................

668

821

6,220

Expected return on plan assets .........

(562)

(492)

(5,233)

Amortization of prior service cost ......

(219)

(20)

(2,039)

Recognized actuarial loss ..................

445

747

4,144

Amortization of transitional obligation ..

651

641

6,062

Net periodic retirement benefit costs ...

¥1,992¥2,986$18,549

Assumptions used for the years ended March 31, 2005
and 2004 were set forth as follows:
2005

2004

Discount rate ................................................

2.5%

2.5%

Expected rate of return on plan assets .......

3.5%

3.5%

Amortization of prior service cost ............... Primarily

Primarily

15 years

15 years

gain / loss .................................................... Primarily

Primarily

15 years

15 years

10 years

10 years

Recognition period of actuarial

Amortization of transitional obligation ........

9. Shareholders’ Equity
Japanese companies are subject to the Japanese Commercial Code (the “Code”).
The Code requires that all shares of common stock are recorded with no par value and at least 50% of the issue priceof new shares is required to be recorded as common stockand the remaining net proceeds as additional paid-in capital,
which is included in capital surplus. The Code permits Japanese companies, upon approval of the Board of Directors, toissue shares to existing shareholders without consideration
as a stock split. Such issuance of shares generally does notgive rise to changes within the shareholders’ accounts.

The Code also provides that an amount at least equal to
10% of the aggregate amount of cash dividends and certain
other appropriations of retained earnings associated withcash outlays applicable to each period shall be appropriatedas a legal reserve (a component of retained earnings) until
such reserve and additional paid-in capital equals 25% ofcommon stock. The amount of total additional paid-in capital and legal reserve that exceeds 25% of the common stock
may be available for dividends by resolution of the shareholders. In addition, the Code permits the transfer of a portion of additional paid-in capital and legal reserve to the common stock by resolution of the Board of Directors.
The Code allows Japanese companies to repurchase treasury stock and dispose of such treasury stock by resolution of
the Board of Directors. The repurchased amount of treasury
stock cannot exceed the amount available for future dividends
plus amount of common stock, additional paid-in capital or
legal reserve to be reduced in the case where such reduction
was resolved at the general shareholders meeting.
In addition to the provision that requires an appropriation
for a legal reserve in connection with the cash payment,
the Code imposes certain limitations on the amount of retained earnings available for dividends. The amount of retained earnings and capital surplus available for dividends
under the Code was ¥16,338 million ($152,137 thousand)as of March 31, 2005, based on the amount recorded in
the parent company’s general books of account.
Dividends are approved by the shareholders at a meeting
held subsequent to the fiscal year to which the dividends
are applicable. Semiannual interim dividends may also be
paid upon resolution of the Board of Directors, subject tocertain limitations imposed by the Code.
10. Income Taxes
The Company and its domestic subsidiaries are subject toJapanese national and local income taxes which, in theaggregate, resulted in normal effective statutory tax rates
of 39.5% and 40.9% for the years ended March 31, 2005
and 2004, respectively.
The tax effects of significant temporary differences andtax loss carryforwards which resulted in deferred tax assets
and liabilities at March 31, 2005 and 2004 were as follows:

RYOBI LIMITED ANNUAL REPORT 2005

21

Millions of yen

2005

2004

Thousands of
U.S. dollars

Thousands of U.S. dollars

2005

2005

Deferred tax assets:

Acquisition
cost

Accumulated
depreciation

Net leased
property$28,429

Accrued severance cost ................... ¥ 2,464 ¥ 2,350 $ 22,944

Machinery and equipment ..

$47,593$19,164

Tax loss carryforwards ......................

154,521

Other assets ......................

15,681

11,118

4,563

Total ...................................

$63,274$30,282$32,992

16,594

20,567

Other ...............................................

2,918

2,828

27,172

Valuation allowance ..........................

(15,768)(16,404)(146,829)

Deferred tax assets .......................... ¥ 6,208 ¥ 9,341 $ 57,808
Deferred tax liabilities:
Unrealized gain on available-for-salesecurities ........................................ ¥ (2,012) ¥ (2,083) $ (18,735)
Other ...............................................

(2,263)(2,095)(21,073)

Deferred tax liabilities ....................... ¥ (4,275) ¥ (4,178) $ (39,808)
Net deferred tax assets .................... ¥ 1,933 ¥ 5,163 $ 18,000

The reconciliation between the normal effective statutory
tax rate for the years ended March 31, 2005 and 2004 andthe actual effective tax rates reflected in the accompanying consolidated statements of income was as follows:
2005

2004

Normal effective statutory tax rate .............

39.5%

40.9%

Valuation allowance .....................................

(4.1)(18.2)

Other, net ......................................................

1.3

(0.9)

Actual effective tax rate ...............................

36.7%

21.8%

11. Research and Development Costs
Research and development costs were ¥1,554 million($14,471 thousand) and ¥1,505 million for the years ended
March 31, 2005 and 2004, respectively.
12. Leases
Lease expenses on such finance lease contracts withoutownership transfer amounted to ¥1,074 million ($10,001
thousand) and ¥923 million, for the years ended March 31,
2005 and 2004, respectively.

Depreciation expense and interest expense, which are notreflected in the accompanying statements of income, computed by the straight-line method and the interest method
were ¥1,074 million ($10,001 thousand) and ¥923 million forthe years ended March 31, 2005 and 2004, respectively.
Future minimum lease payments of the Ryobi Group asof March 31, 2005 and 2004 under noncancelable financeleases that do not transfer ownership of leased assets tothe lessee were as follows:

Millions of yen

Thousands of
U.S. dollars

2005

2004

2005

Current .............................................

¥ 867

¥ 986

$ 8,073

Non-current ......................................

2,676

2,981

24,919Total .................................................

¥3,543¥3,967$32,992

Future minimum lease payments of the Ryobi Group asof March 31, 2005 and 2004 under noncancelable operating leases are as follows:

Millions of yen

Thousands of
U.S. dollars

2005

2004

2005

Current .............................................

¥ 525

¥ 553

$4,889Non-current ......................................

491

1,012

4,572

Total .................................................

¥1,016¥1,565$9,461

13. Contingent Liabilities
The Ryobi group had the following contingent liabilities at
March 31, 2005 and 2004.

Millions of yen

Millions of yen

2005

Thousands of
U.S. dollars

2005

2004

2005

¥ 668

¥ 577

$ 6,220

Acquisition
cost

Accumulated
depreciation

Net leased
property

Trade notes discounted ....................

Machinery and equipment ..

¥5,111¥2,058¥3,053

Guarantees and similar items

Other assets ......................

1,684

1,194

490

bank loans ....................................

189

209

1,760

Total ...................................

¥6,795¥3,252¥3,543leases ...........................................

2,685

2,548

25,003

Total .................................................

¥3,542¥3,334$32,983

Millions of yen

2004

22

Acquisition
cost

Accumulated
depreciation

Net leased
property

Machinery and equipment ..

¥4,876¥1,731¥3,145

Other assets ......................

1,686

864

822

Total ...................................

¥6,562¥2,595¥3,967

14. Derivatives
The Ryobi Group enters into foreign exchange forward contracts and interest rate swaps to hedge risk and reduce
exposure to fluctuations in market values of foreign exchange rates and interest rates associated with certain assets and liabilities.

RYOBI LIMITED ANNUAL REPORT 2005

All derivative transactions are related to qualified hedges
of interest and foreign currency exposures incorporated withits business. Market risk of these derivatives is basicallyoffset by opposite movements in the value of hedged assets. The Ryobi Group does not hold or issue derivatives
for speculative or trading purposes.
Market risk is the exposure created by potential fluctuations
in market conditions, including interest or foreign exchange
rates. The Ryobi Group does not anticipate any losses arisingfrom credit risk because the counterparties to these derivatives are limited to major international financial institutions.
The execution of derivatives is controlled by the Finance
Department of the Company, and by the Finance Divisionof consolidated subsidiaries. Derivative transactions havebeen made in accordance with internal policies which regulate the authorization and credit limit amounts.
The Ryobi Group had the following derivatives contracts
outstanding as of March 31, 2005 and 2004.

Millions of yen

2004
Contract
amountFair value

Unrealized
gain (loss)

¥ 100

¥

¥

Interest swap:
Fixed rate payment, floating
rate receipt ....................

(2)

(2)

Thousands of U.S. dollars

2005
Contract
amountFair value

Unrealized
gain (loss)

$ 931

$

$

Interest swap:
Fixed rate payment, floating
rate receipt ....................

(19)

(19)

Note: Derivatives which qualify for hedge accounting were excluded from the market
value information in 2005 and 2004.

Millions of yen

2005
Contract
amountFair value

Unrealized
gain (loss)

¥ 100

¥

¥

Interest swap:
Fixed rate payment, floating
rate receipt ....................

(2)

(2)

15. Segment Information
The segment information classified by industry and geographical market area is presented below with respect to theyears ended March 31, 2005 and 2004.
(a) Industry segment information
The Ryobi Group operates in four industry segments according to the product groups which are:—Die castings (“Die castings”)—Printing equipment (“Printing equipment”)—Electric power tools, lawn and garden equipment and builders’ hardware (“Power tools and builders’ hardware”)—Other products such as office equipment manufacturing, etc. (“Other”)
Millions of yen

2005
Die castings

Printing equipment

Power tools andbuilders’ hardware

Eliminations /corporate

Unaffiliated customer ......................................................

¥105,491¥27,694¥24,779

Intersegment ..................................................................

225

—

2

(227)

—

Total ...................................................................................

105,716

27,69424,781(227)

157,964

Operating costs and expenses ...........................................

100,047

24,643

22,668(228)

147,130

Consolidated

Net sales:¥—¥157,964

Operating income ..............................................................

¥

5,669

¥ 3,051¥ 2,113¥1¥ 10,834

Total assets ........................................................................

¥ 84,370¥24,809¥23,953¥ 24,288¥157,420

751

—

5,439

514

—

¥ 7,595

Depreciation and amortization ............................................
Capital expenditure .............................................................

4,170
¥

6,467

518
¥

RYOBI LIMITED ANNUAL REPORT 2005

614

¥

23

Millions of yen

2004
Die castings

Printing equipment

Power tools andbuilders’ hardware

Other

Eliminations /corporate

Consolidated

Unaffiliated customer ...........................

¥106,309¥24,349¥23,799¥794—¥155,251

Intersegment .......................................

271

—

10

—

¥

(281)

—

Total ........................................................

106,580

24,34923,809794(281)

155,251

Operating costs and expenses ................

100,431

22,077

21,785892(281)

144,904

Net sales:

Operating income (loss) ...........................

¥

6,149

¥ 2,272¥ 2,024¥ (98)¥

0¥ 10,347

Total assets .............................................

¥ 81,214¥23,794¥24,408¥869¥30,289¥160,574

Depreciation and amortization .................

3,905

501

782

13

—

5,201

Impairment loss on fixed assets ...............

—

—

—

—

689

226

¥ 31

—

Capital expenditure ..................................

¥

5,017

¥

499

¥

689
¥

5,773

Thousands of U.S. dollars

2005
Die castings

Printing equipment

Power tools andbuilders’ hardware

Eliminations /corporate

Consolidated

Unaffiliated customer ......................................................

$982,317$257,883$230,738

Intersegment ..................................................................

2,095

—

19

$

(2,114)$1,470,938—

Total ...................................................................................

984,412257,883

230,757(2,114)

1,470,938

Operating costs and expenses ...........................................

931,623

229,472

211,081(2,123)

1,370,053

Operating income ..............................................................

$ 52,789$ 28,411$ 19,676$

9$ 100,885

Total assets ........................................................................

$785,641$231,018$223,047$226,166$1,465,872

Depreciation and amortization ............................................

38,830

4,824

6,993

—

Capital expenditure .............................................................

$ 60,220

5,718$ 4,786

Net sales:

$

$

—

—

50,647$70,724

Note: The Other segment business was discontinued at March 31, 2004.

The amounts of corporate assets as of March 31, 2005 and 2004 included in the “Eliminations or corporate assets”
were ¥24,317 million ($226,438 thousand) and ¥30,324 million, respectively, which mainly consist of cash, securities andlong-term investment assets (investments in securities).
(b) Geographical segment information
Millions of yen

2005
Eliminations /corporate

Japan

North America

Other

Consolidated

Unaffiliated customer ......................................................

¥133,909¥17,384¥ 6,671

Intersegment ..................................................................

2,128

—

4,672

(6,800)—Total ...................................................................................

136,037

17,384

11,343(6,800)157,964

Net sales:

24¥

Operating costs and expenses ...........................................

127,410

16,46010,109Operating income ..............................................................

¥ 8,627¥924¥ 1,234¥

Total assets ........................................................................

¥109,803¥12,285¥12,662

RYOBI LIMITED ANNUAL REPORT 2005—

¥157,964(6,849)147,13049¥ 10,834¥ 22,670¥157,420Millions of yen

2004
Eliminations /corporate

Japan

North America

Other

Consolidated

Unaffiliated customer ......................................................

¥127,415¥20,940¥ 6,896—¥155,251

Intersegment ..................................................................

2,247

—

4,532

(6,779)—Total ...................................................................................

129,662

20,94011,428(6,779)155,251

Operating costs and expenses ...........................................

121,984

19,691

10,027(6,798)144,904

Net sales:¥

Operating income ..............................................................

¥

7,678

¥ 1,249¥ 1,401¥19¥ 10,347

Total assets ........................................................................

¥105,654¥13,838¥12,225¥ 28,857¥160,574

Eliminations /corporate

Consolidated$—$1,470,938(63,321)—

Thousands of U.S. dollars

2005
Japan

North America

Other

Unaffiliated customer ......................................................

$1,246,941$161,877$ 62,120Intersegment ..................................................................

19,816—43,505

Total ...................................................................................

1,266,757

161,877

105,625(63,321)1,470,938

Operating costs and expenses ...........................................

1,186,423

153,273

94,134(63,777)

1,370,053

8,604$ 11,491$

456$ 100,885$114,396$117,907$211,100$1,465,872

Net sales:

Operating income ..............................................................

$

80,334

Total assets ........................................................................

$1,022,469

The amounts of corporate assets as of March 31, 2005
and 2004 included in the “Eliminations or corporate assets”
were ¥24,317 million ($226,438 thousand) and ¥30,324
million, respectively, which mainly comprise cash, securities and long-term investment assets (investments in securities).
(c) Export sales and sales by overseas subsidiaries
Export sales of the companies (i.e., export amounts madeby the Company and its domestic subsidiaries) plus thesales by overseas consolidated subsidiaries for the years
ended March 31, 2005 and 2004 are presented below:$

16. Subsequent Event
On June 29, 2005, the shareholders of the Company authorized the following appropriation of retained earnings
for the year ended March 31, 2005.

Cash dividends ..................................

Millions of yen

Thousands of
U.S. dollars¥1,254$11,677

Thousands of
U.S. dollars

Millions of yen

2005

2004

2005

Export sales and sales by overseas
subsidiaries:
North America ..............................

¥20,712¥25,333$192,867

Europe .........................................

15,45013,199143,868

Other ............................................

7,083

4,975

65,956

Total .................................................

¥43,245¥43,507$402,691

Percentage of such sales against
consolidated net sales:
North America ..............................

13.1%

16.3%

Europe .........................................

9.8

8.5

Other ............................................

4.5

3.2

Total .................................................

27.4%

28.0%

RYOBI LIMITED ANNUAL REPORT 2005

25

26

RYOBI LIMITED ANNUAL REPORT 2005

CORPORATE INFORMATIONCORPORATE DATAHead Office762, Mesaki-cho, Fuchu, Hiroshima 726-8628, Japan
Telephone: 81-847-41-1111

Company NameRYOBI LIMITED
Established
December 16, 1943
Major Products
Die cast products
Printing equipment(offset printing presses, page layout software, etc.)
Power tools(electric power tools, lawn and garden equipment, etc.)
Builders’ hardware(door closers, hinges, architectural hardware, etc.)

Tokyo Branch
5-2-8, Toshima, Kita-ku, Tokyo 114-8518, Japan
Telephone: 81-3-3927-5541
Toranomon Office
Toranomon Central Building
1-7-1, Nishi-Shinbashi, Minato-ku, Tokyo 105-0003, Japan
Telephone: 81-3-3927-5541

MANAGEMENT MEMBERS(As of June 29, 2005)

BOARD OF DIRECTORS
Chairman and Representative Director
Hiroshi Urakami

CORPORATE OFFICERS
Chief Executive Officer

Hiroshi Urakami

Chief Operating Officer

Susumu Yoshikawa

President and Representative Director
Susumu Yoshikawa

Executive Corporate Officers

Takao Tanaka
Takashi Yokoyama
Mikio Kamura
Shiro Muroya

Corporate Officers

Koji Ishii
Akira Urakami
Kenjiro Suzuki
Kuniyuki Ito
Naomichi Honkawa
Kazuaki Danjo
Shoji Osawa
Hideki Domoto

Directors

CORPORATE AUDITORSStanding Corporate Auditor
Corporate Auditors

Takao Tanaka
Takashi Yokoyama
Mikio Kamura
Shiro Muroya
Koji Ishii
Akira Urakami
Kenjiro Suzuki
Shozo Kobayashi
Satoshi Ohoka
Hiroaki Takahashi
Kunihiro Toyota

MAJOR CONSOLIDATED SUBSIDIARIES
Ryobi Imagix Co. (Japan)
Ryobi Sales Co. (Japan)
Ryobi Mirasaka Co. (Japan)
Ryobi Mitsugi Co. (Japan)
Tokyo Light Alloy Co., Ltd. (Japan)
lkuno Co. (Japan)
Ryobi Power Tool Co. (Japan)
Ryobi Die Casting (USA), Inc. (U.S.A.)
Ryobi Aluminium Casting (UK), Limited (U.K.)
Ryobi Dalian Machinery Co., Ltd. (P.R.C.)
Ryobi Finance Corporation (U.S.A.)

Printing equipment and related product sales
Power tools and lawn and garden equipment sales
Die casting manufacturing
Die casting manufacturing
Cast aluminum and die casting manufacturing and sales
Secondary aluminum alloy bullion manufacturing and sales
Power tools and lawn and garden equipment manufacturing and sales
Die casting manufacturing and sales
Die casting manufacturing and sales
Power tools, lawn and garden equipment and builders’ hardware manufacturing and sales
Financial operations

SHAREHOLDER INFORMATION
Number of Shares Issued(As of March 31, 2005)

171,230,715
Listing
Common Stock—Tokyo

Transfer Agent
The Mitsubishi Trust and Banking Corporation
4-5, Marunouchi 1-chome, Chiyoda-ku,
Tokyo 100-8212, Japan

RYOBI LIMITED ANNUAL REPORT 2005

27

762, Mesaki-cho, Fuchu,
Hiroshima 726-8628, Japan
Telephone: 81-847-41-1111
http://www.ryobi-group.co.jp/

RYOBI LIMITED ANNUAL REPORT 2005

This annual report was printed by a Ryobi printing press using 100% recycled paper and soybean ink.

Printed in Japan
Copyright©2005 Ryobi Limited. All Rights Reserved.