SEMIANNUAL REPORT(Unaudited)
For the six months ended September 30, 2007

2007

A MESSAGE FROM THE MANAGEMENT
Guided by its corporate philosophy, “Create a sound and dynamic corporation through technology, trust andchallenge,” the Ryobi Group seeks to establish itself as an indispensable existence by responding to the needsof customers and society, through innovative, top-quality products and services. Aiming to be a company that
continuously grows and develops by maintaining an optimal mix of die castings and finished products, Ryobi
makes every effort to reinforce market competitiveness and improve its earnings power.
With regard to corporate social responsibility (CSR), the Ryobi Group considers the implementation of its
corporate philosophy as CSR promotion itself. Moreover, Ryobi is aggressively promoting various CSR endeavors
including environmental protection initiatives, social contribution activities and compliance with relevant laws
and regulations.

BUSINESS DEVELOPMENT
With the aim of sustained growth and development for
the future, the Ryobi Group will reinforce market competitiveness and strengthen earnings power— essential
factors. Along with offering Ryobi’s proprietary technology, products and services, we are implementing various
initiatives for becoming a “company with even greater
presence” in each of our business fields. Furthermore,
we are aggressively pushing ahead to reduce costs
and improve productivity in each business segment.
Trends in business development for these segments
are as follows:
1) DIE CASTINGS
Ryobi aims to strengthen and expand relationships
with automobile manufacturers by utilizing its knowhow as a world-leading die casting manufacturer witha production structure operating in Japan, the UnitedStates, Europe and China. Redoubling efforts to promote
its global die castings business strategy, Ryobi established a production base in Mexico in April 2007, with
operations scheduled to commence in October 2008.
Our aluminum die castings are lightweight, have excellent durability and are superior in terms of recyclability.
In addition to the automobile field, these die castings
have increasingly attracted attention in fields such as
electronics and telecommunications as an effective technology for the protection of the environment, including
the conservation of energy and resources.

1

ryobi semiannual report 2007

2) PRINTING EQUIPMENT
Ryobi is striving to enhance multicolor performance
precision, offer increasingly advanced functionality andfurther consolidate its reputation in world markets. To
achieve these goals, we are moving forward with thedevelopment of new products and the strengtheningof production and marketing capabilities. Through thedevelopment of products in response to advancements
in IT and digitization, and the creation of environmentallyfriendly products, we are working to expand our lineup inline with market needs. In response to increased demand
for medium-size offset printing presses, a second facility
was established at our Hiroshima East Plant in April 2006,
and it was then doubled in size with the construction of a
new addition. Ryobi will work to optimize its production
through the first and the second facilities while implementing initiatives to further enhance productivity andpromoting additional sales activities.
3) POWER TOOLS AND BUILDERS’ HARDWARE
In the Power Tools Business, which includes lawn andgarden equipment, Ryobi focuses on the concept of
producing compact and lightweight tools. Utilizing
manufacturing collaboration between Japan and Dalian,
China, the Company delivers products in response to theneeds of professionals and DIY enthusiasts alike. We
continue to further strengthen competitiveness by focusing efforts on bolstering product planning and marketing
capabilities while improving productivity.

In the Builders’ Hardware Business, our mainstay
door closers are manufactured primarily at our subsidiary
in Dalian, China. Ryobi is aiming to improve its earnings
power by focusing on developing unique products, reducing costs through productivity enhancements andreinforcing price competitiveness.
PERFORMANCEIn the six-month period ended September 30, 2007,
consolidated net sales increased 8.3% compared tothe same period of the previous fiscal year to ¥106,134
million, with domestic net sales rising 4.3% to ¥70,628
million and overseas net sales growing 17.4% to ¥35,506
million.
On the earnings front, operating income decreased
9.5% to ¥7,354 million, and interim net income fell 21.5%
to ¥4,286 million.
Consolidated net sales increased across each of theCompany’s Die Castings, Printing Equipment, and Power
Tools and Builders’ Hardware Businesses, for a fourthconsecutive interim period of increased revenue.
Although the Company targeted higher profits
through such efforts as increasing sales, stringently
reducing costs and improving productivity, interim profits dropped because of an increased financial burden
associated with depreciation expenses, among otherfactors.
By segment, net sales in the Die Castings Businessrose 8.3% to ¥71,628 million while operating income
decreased 21.2% to ¥3,457 million, resulting in a ratioof operating income to net sales of 4.8% compared with
6.6% in the same period last year. Sales to domestic
and American automobile manufacturers solidified andcontributed to higher revenues. Despite increasing sales
and cutting costs, profit decreased due to downward
pressure on product prices, inflated raw material costs
and increased depreciation expenses. Die castings
are an effective technology that realizes environmental protection and the conservation of resources andenergy—important global concerns—and, therefore,
continuous growth for this product is expected. We willcontinue to pursue activities geared toward the nonautomobile segment as well as expanding automobile

applications, while simultaneously giving more attention
to enhancing productivity and reducing costs.
Net sales in the Printing Equipment Business increased 11.5% to ¥20,768 million, and operating income
rose 3.7% to ¥2,782 million, resulting in a ratio of operating income to net sales of 13.4% compared with 14.4%
in the corresponding period of the previous fiscal year.
Although sales in Japan were down, strong exports
to Europe, the Americas and Asian countries pushed
up overall results. Increased profits are attributable to
the rise in exports as well as to the implementation of
cost-cutting measures. With the aim of increasing earnings still further, Ryobi will continue to actively develop
products that fully consider user needs, enhance sales
promotion, reduce costs and increase productivity.
In the Power Tools and Builders’ Hardware Business,
net sales increased 4.1% to ¥13,738 million, and operating income rose 5.0% to ¥1,115 million, resulting in a ratioof operating income to net sales of 8.1% compared with
8.0% in the same period last year. Amid intensifying competition, sales of both power tools and builders’ hardware
grew and overall profits were up. We will continue toleverage our overseas production capabilities with theaims of reducing costs and raising production efficiency
to deliver unique and price-competitive products.
Ryobi is committed to consistently strengthening andenhancing measures designed to create a sound anddynamic corporation. We thank you for your continued
support and understanding.
December 2007

Hiroshi Urakami
Chairman and CEO

Susumu Yoshikawa
President and COO

ryobi semiannual report 2007

2

CONSOLIDATEDBALANCE SHEETS
Ryobi Limited and Consolidated Subsidiaries(As of September 30 and March 31, 2007) (Unaudited)		Millions of yen

September 30
2007

Thousands of
U.S. dollars*

March 312007

September 30
2007

ASSETS
Current assets
Cash and cash equivalents..........................................................
¥ 13,839¥ 17,612$
Time deposits.............................................................................. 		 2,283		 2,301		
Notes and accounts receivable, less allowances....................... 		 50,544		 49,813		
Inventories................................................................................... 		 41,993		 38,398		Prepaid expenses and other........................................................ 		 2,015		 2,450		     Total current assets.......................................................... 		 110,674		110,574		

119,891
19,778437,876363,796
17,457
958,798

Net property, plant and equipment............................................. 		 77,186		 73,029		 668,682
Investments and other assets
Investments in securities............................................................ 		 13,253		 12,897		 114,814
Investments in and advances to unconsolidated subsidiaries
159		
360		
1,377
and affiliates............................................................................... 		
Intangible fixed assets................................................................. 		 2,111		 1,990		 18,288
Deferred tax assets..................................................................... 		 1,726		 1,472		 14,953
Other............................................................................................ 		 2,223		 2,207		 19,259     Total investments and other assets................................. 		 19,472		 18,926		 168,691
     Total.................................................................................
¥ 207,332¥202,529$1,796,171
LIABILITIES AND EQUITYCurrent liabilities
Short-term borrowings................................................................
¥ 21,757¥ 19,751$ 188,487
Current portion of long-term debt............................................... 		 6,231		 4,363		 53,981
Notes and accounts payable....................................................... 		 60,802		 61,282		 526,743
Accrued expenses....................................................................... 		 4,928		 4,946		 42,693
Income taxes payable.................................................................. 		 2,695		 5,093		 23,347
Other current liabilities................................................................ 		 3,149		 3,623		 27,280     Total current liabilities...................................................... 		 99,562		 99,058		 862,531
Long-term liabilities
Long-term debt............................................................................ 		 16,539		 14,217		 143,282
Accrued severance indemnities.................................................. 		 6,450		 6,549		 55,878
Other long-term liabilities............................................................ 		 6,665		 6,947		 57,741     Total long-term liabilities.................................................. 		 29,654		 27,713		 256,901
EquityCommon stock   Authorized: 500,000,000 shares   Issued: 171,230,715 shares..................................................... 		 18,472		 18,472		 160,028
Capital surplus............................................................................. 		 23,750		 23,750		 205,752
Retained earnings........................................................................ 		 36,317		 34,044		 314,624
Unrealized gain on available-for-sale securities.......................... 		 4,878		 5,144		 42,259
Deferred loss on derivatives under hedge accounting............... 		
(23)		
(25)		
(199)
Land revaluation reserve............................................................. 		
626		
626		
5,423
Foreign currency translation adjustments.................................. 		 (5,704)		 (6,464)		 (49,415)
Treasury stock............................................................................. 		 (1,136)		
(732)		
(9,842)     Total.................................................................................. 		 77,180		 74,815		 668,630
Minority interests........................................................................ 		
936		
943		
8,109
     Total equity....................................................................... 		 78,116		 75,758		 676,739
     Total.................................................................................
¥ 207,332¥202,529$1,796,171*U.S. dollar amounts in this report, solely for the convenience of the reader, are translated from yen at the rate of ¥115.43 = US$1, the exchange rate
prevailing on September 30, 2007.

3

ryobi semiannual report 2007

CONSOLIDATEDSTATEMENTS OF INCOME
Ryobi Limited and Consolidated Subsidiaries(Six months ended September 30, 2007 and 2006) (Unaudited)		Millions of yen

September 30
2007

Thousands of
U.S. dollars*

September 30
2006

September 30
2007

Net sales.........................................................................................
¥106,134¥97,974$919,466
Cost of sales................................................................................... 		 86,397		78,116		748,479     Gross profit....................................................................... 		 19,737		19,858		170,987
Selling, general and administrative expenses............................. 		 12,383		11,729		107,277     Operating income............................................................. 		 7,354		 8,129		 63,710
Other income
Interest and dividends................................................................. 		
150		 110		 1,299
Gain on sales of investment securities....................................... 		
0		 771		
0
Other............................................................................................ 		
744		 916		 6,446     Total other income............................................................ 		
894		 1,797		 7,745
Other expenses
Interest........................................................................................ 		
530		 380		 4,592
Other............................................................................................ 		
507		 1,192		 4,392     Total other expenses........................................................ 		 1,037		 1,572		 8,984
Income before income taxes and minority interests.................. 		 7,211		 8,354		 62,471
Income taxes.................................................................................. 		 2,914		 2,876		 25,245
Minority interests.......................................................................... 		
11		
17		
95
Net income.....................................................................................
¥ 4,286¥ 5,461$ 37,131

CONSOLIDATEDSTATEMENTS OF CASH FLOWS
Ryobi Limited and Consolidated Subsidiaries(Six months ended September 30, 2007 and 2006) (Unaudited)		Millions of yen

September 30
2007

Thousands of
U.S. dollars*

September 30
2006

September 30
2007

Net cash provided by operating activities...................................
¥ 2,532¥ 9,134$ 21,935
Investing activities
Purchase of property, plant and equipment............................... 		 (9,064)		 (5,995)		 (78,524)
Other............................................................................................ 		 (801)		 1,972		 (6,939)
     Net cash used in investing activities............................. 		 (9,865)		 (4,023)		 (85,463)
Financing activities
Proceeds from long-term debt.................................................... 		 5,800		 4,056		 50,247
Repayments of long-term debt................................................... 		 (1,719)		 (4,654)		 (14,892)
Increase (decrease) in short-term borrowings, net..................... 		 1,816		 (1,053)		 15,732
Cash dividends paid.................................................................... 		 (2,014)		 (1,681)		 (17,448)
Other............................................................................................ 		 (404)		
(4)		 (3,499)
     Net cash provided by (used in) financing activities..... 		 3,479		 (3,336)		 30,140
Foreign currency translation adjustments on cash and cash
equivalents.................................................................................... 		
80		
19		
693
Net increase (decrease) in cash and cash equivalents............... 		 (3,774)		 1,794		 (32,695)
Cash and cash equivalents at beginning of year........................ 		17,612		16,097		152,577
Cash and cash equivalents at end of the period.........................

¥13,838¥17,891$119,882

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

¥

¥

$

532

373

4,609

ryobi semiannual report 2007

4

INDUSTRYSEGMENT INFORMATION(Six months ended September 30, 2007 and 2006)			
Die castings
Printing equipment

Millions of yen
2007Power tools andbuilders’ hardware

Eliminations

Consolidated

Net sales:¥71,628¥20,768¥13,738¥ —¥106,134
Unaffiliated customers...........
Intersegment..........................		 111		—		1		 (112)		
—Total........................................		71,739		20,768		13,739		 (112)		106,134
Operating costs and expenses...		68,282		17,986		12,624		 (112)		 98,780
Operating income......................
¥ 3,457¥ 2,782¥ 1,115¥0¥ 7,354

			Die castings
Printing equipment

Millions of yen
2006Power tools andbuilders’ hardware

Eliminations

Consolidated

Net sales:
Unaffiliated customers...........
¥66,161¥18,618¥ 13,195¥ —¥97,974
Intersegment..........................		 113		—		1		(114)		
—Total........................................		66,274		18,618		13,196		(114)		97,974
Operating costs and expenses...		61,889		15,936		12,134		(114)		89,845
Operating income......................
¥ 4,385¥ 2,682¥ 1,062¥ 0¥ 8,129
Thousands of U.S. dollars*
2007			
Power tools andDie castings
Printing equipmentbuilders’ hardware

Eliminations

Consolidated

Net sales:$620,532$179,918$119,016$ —$ 919,466
Unaffiliated customers...........
Intersegment..........................		
962		
—		
9		(971)		
—Total........................................		621,494		179,918		119,025		(971)		919,466
Operating costs and expenses...		591,545		155,817		109,365		(971)		855,756
Operating income......................
$ 29,949$ 24,101$ 9,660$
0$ 63,710

5

Ryobi semiannual report 2007

GEOGRAPHICALSEGMENT INFORMATION(Six months ended September 30, 2007 and 2006)
Japan

The Americas

Millions of yen
2007
Other

Eliminations

Consolidated

Net sales:¥ 88,876¥ 12,830¥4,428¥—¥ 106,134
Unaffiliated customers...........
Intersegment..........................		 1,665		 269		3,816		 (5,750)		
—Total........................................		90,541		13,099		8,244		 (5,750)		106,134
Operating costs and expenses...		83,853		12,656		8,028		 (5,757)		 98,780
Operating income......................
¥ 6,688
¥ 443
¥ 216
¥
7
¥ 7,354Japan

The Americas

Millions of yen
2006
Other

Eliminations

Consolidated

Net sales:
Unaffiliated customers...........
¥82,498¥11,432¥4,044¥—¥97,974
Intersegment..........................		 1,279		 284		2,993		(4,556)		
—Total........................................		83,777		11,716		7,037		(4,556)		97,974
Operating costs and expenses...		77,282		10,679		6,504		(4,620)		89,845
Operating income......................
¥ 6,495¥ 1,037¥ 533¥
64¥ 8,129Japan

The Americas

Thousands of U.S. dollars*
2007
Other

Eliminations

Consolidated

Net sales:$ 769,956$111,150$38,360$—$ 919,466
Unaffiliated customers...........
Intersegment..........................		 14,424		 2,330		33,059		(49,813)		
—Total........................................		784,380		113,480		71,419		(49,813)		919,466
Operating costs and expenses...		726,440		109,642		69,548		(49,874)		855,756
Operating income......................
$ 57,940$ 3,838$ 1,871$
61$ 63,710

EXPORT
SALES AND SALES BY OVERSEAS SUBSIDIARIES(Six months ended September 30, 2007 and 2006)
		
Millions of yen
2007
2006

Thousands of
U.S. dollars*
2007

The Americas.............................
¥ 17,983¥ 14,078$ 155,791
Europe........................................		 11,883		 10,285		 102,946
Other..........................................		 5,640		 5,892		 48,861
Total............................................
¥ 35,506¥ 30,255$ 307,598

Percentage against
consolidated net sales
2007
2006

17.0%
11.2%
5.3%
33.5%

14.4%
10.5%
6.0%
30.9%

Ryobi semiannual report 20076

Corporate information
CORPORATE DATA
Company NameRYOBI LIMITED

Head Office
762 Mesaki-cho, Fuchu-shi, Hiroshima-ken 726-8628, Japan
Tel. 81-847-41-1111

Established
December 16, 1943
Major Products
Die cast products
Printing equipment(offset printing presses, peripherals, 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
Tel. 81-3-3927-5541
Toranomon Office
Toranomon Central Building
1-7-1 Nishishinbashi, Minato-ku, Tokyo 105-0003, Japan
Tel. 81-3-3927-5541

MANAGEMENT MEMBERS
Board of Directors

Corporate Officers

Chairman and Representative Director
Hiroshi Urakami
President and Representative Director
Susumu Yoshikawa
Directors
Takao Tanaka
Takashi Yokoyama
Mikio Kamura
Shiro Muroya
Koji Ishii
Akira Urakami
Kenjiro Suzuki
Outside Director
Satoshi Ohoka

Chief Executive Officer
Chief Operating Officer
Executive Corporate Officers

Corporate Officers

Hiroshi Urakami
Susumu Yoshikawa
Takao Tanaka
Takashi Yokoyama
Mikio Kamura
Shiro Muroya
Koji Ishii
Kenjiro Suzuki
Kuniyuki Ito
Naomichi Honkawa
Kazuaki Danjo
Shoji Osawa
Hideki Domoto

Corporate Auditors
Standing Corporate Auditor
Outside Corporate Auditors
Corporate Auditor

Shozo Kobayashi
Kunihiro Toyota
Tairo Katoh
Tsuyoshi Mifune

SHAREHOLDER INFORMATION
Number of Shares Issued (As of September 30, 2007)
171,230,715
Listing Common Stock—Tokyo

Transfer Agent
Mitsubishi UFJ Trust and Banking Corporation
1-4-5, Marunouchi, Chiyoda-ku,
Tokyo 100-8212, Japan
This semiannual report was printed by a Ryobi printingpress using recycled paper and soybean ink.

Head Office

762 Mesaki-cho, Fuchu-shi, Hiroshima-ken 726-8628, Japan
Tel. 81-847-41-1111
Tokyo Branch 5-2-8 Toshima, Kita-ku, Tokyo 114-8518, Japan
Tel. 81-3-3927-5541
http://www.ryobi-group.co.jp/

Printed in Japan
Copyright©2007 Ryobi Limited.
All Rights Reserved.