Ryobi Limited and Consolidated Subsidiaries
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2009

1. Consolidated Balance Sheets
March 31, 2008ASSETS
Current assets:
Cash and cash equivalents
Notes and accounts receivable
Marketable securities
Inventories
Finished products and purchased goods
Work in process
Raw materials and supplies
Deferred tax assets
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets:
Property, plant and equipment:
Buildings and structures (net)
Machinery and equipment (net)Land
Leased assets (net)
Construction in progress
Other fixed assets (net)Total property, plant and equipment
Intangible fixed assets:
Goodwill
Other intangible fixed assets
Total intangible fixed assets
Investments and other assets:
Investment in securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets-1-(Millions of yen)March 31, 2009

8,925
43,292
3,514
41,855
—
—
—
1,604
3,040
(61)
102,171

13,767
26,203
1,516—
14,102
8,252
6,864
424
4,569
(46)
75,655

20,791
29,411
21,699
—
2,621
2,639
77,163

20,14825,282
21,643
1,266
6,090
4,247
78,679

946
1,308
2,254

—
1,187
1,187

10,649
1,711
2,064
(43)
14,38293,800195,971

6,993
2,756
2,041
(115)
11,67591,543
167,198

Ryobi Consolidated Financial Statements for Fiscal 2009

March 31, 2008
LIABILITIESCurrent liabilities:
Notes and accounts payable
Short-term borrowings
Current portion of long-term debt
Lease obligations
Income taxes payable
Accrued bonuses
Accrued bonuses to directors
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for revaluation
Accrued severance indemnities
Liabilities from application of equity method
Other long-term liabilities
Total long-term liabilities
Total liabilities:
NET ASSETS
Shareholders’ equity:
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments:
Unrealized gain on available-for-salesecurities
Deferred loss on derivatives under hedge
accounting
Land revaluation reserve
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets-2-(Millions of yen)March 31, 2009

43,57021,490
6,002
—
2,049
2,192
42
13,71889,066

20,16632,912
6,559
393
170
875
—
8,023
69,101

17,663
—
1,698
674
6,320
411
2,418
29,186
118,252

19,084
970
384
674
6,617
421
1,938
30,09099,192

18,472
23,75039,234(1,425)80,031

18,472
23,75036,608(2,354)76,476

3,094

1,088

(40)
626
(6,867)(3,187)874
77,718
195,971(35)
626(10,982)(9,303)833
68,006167,198

Ryobi Consolidated Financial Statements for Fiscal 2009

2. Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Rental income
Gain on sales scrap
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Cash discounts
Loss on abandonment of inventories
Depreciation expenses
Exchange losses
Miscellaneous expenses
Total non-operating expenses
Ordinary incomeExtraordinary income
Gains on sale of fixed assets
Gain on sale of investment in securities
Other
Total extraordinary income
Extraordinary losses
Loss on sale or disposal of fixed assets
Loss on sale of investment in securities
Loss on revaluation of investment
in securities
Loss on impairment
Cumulative effect of lease accounting
standards application
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Current
Deferred
Total income taxes
Gains (losses) on minority interests
Net income

Fiscal Year 2008
Ended March 31, 2008
216,180
177,529
38,651
24,416
14,235(Millions of yen)
Fiscal Year 2009
Ended March 31, 2009
176,340
152,358
23,981
22,176
1,804

108
154
541
155
742
1,701

53
170
567
125
1,087
2,004

1,120
163
101
256
150
268
2,061
13,876

1,159
159
30
450
283
155
2,239
1,570

18
0
—
18

46—
148

176
75

221
—

3—

317
85

—
256
13,639

106
731
887

5,316
125
5,442
(10)
8,207

414
313
727
0
160

-3-Ryobi Consolidated Financial Statements for Fiscal 2009

3. Consolidated Statements of Changes in Net Assets

Fiscal Year 2008
Ended March 31, 2008

(Millions of yen)
Fiscal Year 2009
Ended March 31, 2009

18,472

18,472—
18,472—
18,472

23,75023,7500023,750(0)(0)
23,75034,04339,234—(785)(3,016)
8,207
5,191
39,234(2,001)160(1,840)36,608(731)(1,425)(693)
0(693)(1,425)(929)
0(929)(2,354)75,53480,031—(785)(3,016)
8,207
(693)
0
4,497
80,031(2,001)160(929)
0(2,770)
76,476

Shareholders' equity
Common stock
Balance at beginning of year
Changes of items during the year
Total changes of items during the year
Balance at end of year
Capital surplus
Balance at beginning of year
Changes of items during the year
Disposal of treasury stock
Total changes of items during the year
Balance at end of year
Retained earnings
Balance at beginning of year
Effect of changes in accounting policies
applied to foreign subsidiaries
Changes of items during the year
Dividends from surplus
Net income
Total changes of items during the year
Balance at end of year
Treasury stock
Balance at beginning of year
Changes of items during the year
Acquisition of treasury stock
Disposal of treasury stock
Total changes of items during the year
Balance at end of year
Total shareholders' equity
Balance at beginning of year
Effect of changes in accounting policies
applied to foreign subsidiaries
Changes of items during the year
Dividends from surplus
Net income
Acquisition of treasury stock
Disposal of treasury stock
Total changes of items during the year
Balance at end of year

-4-

Ryobi Consolidated Financial Statements for Fiscal 2009

Fiscal Year 2008
Ended March 31, 2008

(Millions of yen)
Fiscal Year 2009
Ended March 31, 2009

5,144

3,094

(2,050)(2,050)3,094(2,005)(2,005)
1,088(25)

(40)

(14)
(14)
(40)

44(35)

626

626

——
626

—
—
626

(6,464)(6,867)

(402)
(402)
(6,867)(4,114)(4,114)(10,982)(719)(3,187)(2,467)(2,467)(3,187)(6,116)(6,116)(9,303)

942

874

(68)
(68)
874

(40)
(40)
833

Valuation and translation adjustments
Unrealized gain on available-for-salesecurities
Balance at beginning of year
Changes of items during the year
Net changes of items other thanshareholders' equity
Total changes of items during the year
Balance at end of year
Deferred gains or losses on derivatives underhedge accounting
Balance at beginning of year
Changes of items during the year
Net changes of items other thanshareholders' equity
Total changes of items during the year
Balance at end of year
Land revaluation reserve
Balance at beginning of year
Changes of items during the year
Net changes of items other thanshareholders' equity
Total changes of items during the year
Balance at end of year
Foreign currency translation adjustments
Balance at beginning of year
Changes of items during the year
Net changes of items other thanshareholders' equity
Total changes of items during the year
Balance at end of year
Total valuation and translation adjustments
Balance at beginning of year
Changes of items during the year
Net changes of items other thanshareholders' equity
Total changes of items during the year
Balance at end of year
Minority interests
Balance at beginning of year
Changes of items during the year
Net changes of items other thanshareholders' equity
Total changes of items during the year
Balance at end of year

-5-Ryobi Consolidated Financial Statements for Fiscal 2009

Fiscal Year 2008
Ended March 31, 2008

(Millions of yen)
Fiscal Year 2009
Ended March 31, 2009

75,757

77,718—(785)(3,016)8,207(693)
0(2,001)160(929)
0(2,536)
1,961
77,718(6,156)(8,926)68,006

Total net assets
Balance at beginning of year
Effect of changes in accounting policies
applied to foreign subsidiaries
Changes of items during the year
Dividends from surplus
Net income
Acquisition of treasury stock
Disposal of treasury stock
Net changes of items other thanshareholders' equity
Total changes of items during the year
Balance at end of year

-6-Ryobi Consolidated Financial Statements for Fiscal 2009

4. Consolidated Statements of Cash Flows

Cash flows from operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Loss on impairment
Increase in allowance for doubtful accounts
Decrease in reserve for bonuses
Increase (decrease) in accrued severance
indemnities
Interest and dividends income
Interest expenses
Loss on sale of investments in securities
Loss on revaluation of investment in securities
Loss on sale or disposal of fixed assets
Decrease in notes and accounts receivable
Decrease (increase) in inventories
Decrease (increase) in other current assets
Decrease in notes and accounts payable
Other decreases in current liabilities
OtherSubtotal
Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Payment for purchases of property, plant andequipment
Proceeds from sale of property, plant andequipment
Payment for purchases of marketable securities
Proceeds from sale of marketable securities
Payment for purchase of investment in securities
Proceeds from sale of investment in securities
Payment for time deposits
Proceeds from repayment of time deposit
Other
Net cash used in investing activities
Cash flows from financing activities:
Increase in short-term borrowings, net
Proceeds from long-term debt
Repayment of long-term debt
Acquisition of treasury stock
Proceeds from sale of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other
Net cash provided by financing activities
Foreign currency translation adjustments on cash
and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of the year

-7-

Fiscal Year 2008
Ended March 31, 2008

(Millions of yen)
Fiscal Year 2009
Ended March 31, 2009

13,63910,057—4(127)

887
15,35885
57(1,316)

(229)
(262)
1,120
75
3158
3,688
(3,574)(65)(6,209)(1,084)(189)
17,006291(1,136)(8,326)
7,834

296
(224)
1,159
—
317
174
16,228
5,841
498(22,419)(3,355)(40)
13,550227(1,100)(4,553)
8,122(17,487)(17,132)

72(690)690(1,052)
186(1,134)
1,134(369)(18,649)

121(1,340)
1,340
(105)
—
(2,485)1,685(171)(18,088)

1,891
9,600
(4,404)(693)
0(3,016)
(0)
—
3,376

13,1108,850(5,956)(929)
0(2,001)(0)(451)
12,622(34)(7,473)
17,611
10,138(711)
1,945
10,13812,084

Ryobi Consolidated Financial Statements for Fiscal 2009

5. Segment Information(1) Industry Segment Information
For the Fiscal Year Ended March 31, 2008 (April 1, 2007 to March 31, 2008)(Millions of yen)
DieCastings

Printing
Equipment

Power Tools
and Builders’Hardware148,595

40,963

26,621

216,180207—1209(209)

—

Total

148,80340,963

26,623

216,390(209)

216,180

Operating Costs andExpenses

141,158

36,022

24,974202,154(209)

201,945

Operating Income

7,645

4,940

1,649

14,235(0)

14,235120,047

31,77725,093

176,919

19,052

195,971

Depreciation andAmortization

8,389

903

764

10,057—

10,057

Capital Expenditure

12,054

2,501

785

15,341—

15,341Net Sales:(1) UnaffiliatedCustomers(2) Intersegment

Total Assets

Total

Eliminations/ Corporate—

Consolidated

216,180

For the Fiscal Year Ended March 31, 2009 (April 1, 2008 to March 31, 2009)(Millions of yen)
DieCastings

Printing
Equipment

Power Tools
and Builders’Hardware122,774

29,43624,129176,340

144

—

0145

(145)

—

Total

122,918

29,43624,130176,485(145)

176,340

Operating Costs andExpenses

122,460

28,88023,334

174,675(139)

174,535

458

555

796

1,810

(5)

1,804

Total Assets

96,09527,84023,562

147,498

19,700167,198

Depreciation andAmortization

13,559978820

15,358—15,358Loss on impairment

85

—

—

85

—

85

Capital Expenditure

14,613316

657

15,587—

15,587

Net Sales:(1) UnaffiliatedCustomers(2) Intersegment

Operating Income

Total

Eliminations/ Corporate—Consolidated

176,340

Notes:
1. Industry segments are classified on the basis of organization.
2. Main products of each industry segment:
Die Castings: die cast product and aluminum cast
Printing Equipment: offset printing presses, peripherals, etc.
Power Tools and Builders’ Hardware: power tools, lawn and garden equipment, doorclosers, hinges and architectural hardware-8-

Ryobi Consolidated Financial Statements for Fiscal 2009(2) Geographical Segment Information
For the Fiscal Year Ended March 31, 2008 (April 1, 2007 to March 31, 2008)(Millions of yen)

Net Sales:(1) UnaffiliatedCustomers(2) Intersegment
Total
Operating Costs andExpenses
Operating Income(Loss)
Total Assets

Eliminations/ CorporateJapan

TheAmericas

Other

Total

182,723

25,151

8,305

216,180

—

4,954

264

7,283

12,502(12,502)—

187,677

25,416

15,589228,683(12,502)

216,180

173,913

24,73415,802

214,449(12,504)

201,945

13,764682(212)

14,233

1

14,235

143,405

19,973

17,108

180,486

15,485

195,971

Consolidated

216,180

For the Fiscal Year Ended March 31, 2009 (April 1, 2008 to March 31, 2009)(Millions of yen)

Net Sales:(1) UnaffiliatedCustomers(2) Intersegment
Total
Operating Costs andExpenses
Operating Income(Loss)
Total Assets

Eliminations/ CorporateJapanThe
Americas

Other

Total

147,866

21,277

7,195

176,340

—

3,311

—

7,096

10,407(10,407)—

151,178

21,277

14,292

186,748(10,407)

176,340

148,202

21,662

14,952

184,816(10,281)

174,535

2,975

(384)

(659)

1,931

(126)

1,804

119,966

17,916

15,372

153,255

13,943

167,198

Consolidated

176,340

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:(1) The Americas: United States, Mexico(2) Other: United Kingdom, China-9-Ryobi Consolidated Financial Statements for Fiscal 2009(3) Overseas Sales

For the Fiscal Year Ended March 31, 2008 (April 1, 2007 to March 31, 2008)(Millions of yen)
The Americas
Overseas Sales

Europe35,237

Other

22,191

Total

11,540216,180

Consolidated Net Sales
Ratio of Overseas Sales toConsolidated Net Sales (%)

68,969

16.3

10.3

5.3

31.9

For the Fiscal Year Ended March 31, 2009 (April 1, 2008 to March 31, 2009)(Millions of yen)
The Americas
Overseas SalesEurope

27,362Other

15,597

Total

8,628

176,340

Consolidated Net Sales
Ratio of Overseas Sales toConsolidated Net Sales (%)

51,587

15.5

8.9

4.9

29.3

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:(1) The Americas: United States, Mexico, other(2) Europe: United Kingdom, Germany, other(3) Other: China, Australia, other
3. Overseas sales represent total sales outside Japan of the parent company and its
consolidated subsidiaries (excluding intra-group sales).

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