Ryobi Consolidated Financial Statements for the Fiscal Period Ended Dec. 31, 2018

Ryobi Limited and Consolidated Subsidiaries
Consolidated Financial Statements for the Transitional Fiscal Period Ended December
31, 2018
These consolidated financial statements are based on the Japanese financial statements submitted to the Tokyo
Stock Exchange.

Note: Due to a change in the Company’s fiscal year-end, the most recent full fiscal period comprised only thenine months ended December 31, 2018 (hereinafter the “transitional fiscal period”). Moreover, the Company’s
consolidated operating results for the transitional fiscal period ended December 31, 2018 as presented below
include the contributions of domestic consolidated subsidiaries for the nine months of April through December
2018 as well as those of overseas consolidated subsidiaries for the 12 months of January through December
2018.

1. Consolidated Balance Sheets(Millions of yen)March 31, 2018
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Bond issuance cost
Total deferred assets
Total assets-1-December 31, 201823,172
63,246690
16,713
13,21813,8863,558(53)134,432

20,79158,358770
17,04914,006
15,842
3,711(260)
130,269

30,93347,665
16,915
8,625
3,684
107,823

32,30546,821
18,2899,928
4,946
112,291

3,052
3,052

3,504
3,504

20,262
2,721
4,050
393
(65)
27,362
138,238

17,726
1,732
3,069
401
(66)
22,862
138,65872
72
272,74354
54
268,982

Ryobi Consolidated Financial Statements for the Fiscal Period Ended Dec. 31, 2018

(Millions of yen)March 31, 2018
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive incomeValuation difference on available-for-salesecurities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets-2-

December 31, 2018

45,891
30,956
7,386
1,077
1,926
57
16,530103,826

45,196
24,774
7,481
772
762
45
21,884
100,917

8,400
23,588
1,907
507
8,023
2,693
45,120148,946

8,400
21,256
1,331
507
8,369
2,678
42,542
143,460

18,472
21,786
68,509(345)
108,421

18,472
21,82074,831(346)
114,777

6,988
737
1,370
(1,468)5,127808(1,530)(2,478)

7,628
7,746
123,796
272,743

1,927
8,816
125,521268,982

Ryobi Consolidated Financial Statements for the Fiscal Period Ended Dec. 31, 2018

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(1) Consolidated Statements of Income(Millions of yen)
Fiscal year ended
March 31, 2018

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rent income
Dividend income of insuranceShare of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Sales discounts
Loss on abandonment of inventories
Foreign exchange losses
Depreciation
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets
Gain on sales of investment securities
Gain on bargain purchaseTotal extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment loss
Loss on valuation of investment securities
Loss on sales of investment securities
Loss on transfer of businessTotal extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-3-

Nine-month transitional
fiscal period ended
December. 31, 2018247,192
208,834
38,35825,145
13,212

216,187
184,581
31,60518,026
13,579

81
374
420
107

87
393
354
128

－
688
1,671

42
855
1,862

1,158
132
109
114
72

1,134
760
29
40

77
189
1,853
13,030－203
1,476
13,965

276
39－
316

18
12646
676

262－
20
1
306
590
12,757
2,490
1,810
4,300
8,456
611
7,844

184
2,109－－－
2,293
12,348
1,942
1,376
3,318
9,030
442
8,588

Ryobi Consolidated Financial Statements for the Fiscal Period Ended Dec. 31, 2018

(2) Consolidated Statements of Comprehensive Income(Millions of yen)
Fiscal year ended
March 31, 2018

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to：owners of parent
non-controlling interests-4-

Nine-month transitional
fiscal period ended
December. 31, 2018

8,456

9,030

372－
8522,013)
702,900)

3271,013)

0)
1,550
10,0071)5,857)
3,172

9,458
548

2,887
284

Ryobi Consolidated Financial Statements for the Fiscal Period Ended Dec. 31, 2018

3. Consolidated Statements of Cash Flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on disposal of non-current assets
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Gain on bargain purchase
Loss (gain) on transfer of business
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of securities
Proceeds from sales of securities
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Proceeds from transfer of business
Payments into time deposits
Proceeds from withdrawal of time deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Purchase of treasury shares
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-5-

Fiscal year ended
March 31, 2018

Nine-month transitional
fiscal period ended
December 31, 201812,757
16,010－4)(40)237455)
1,158

12,34812,531
2,109
219
1,255)
19480)
1,1347714)
38)
20－3068,234)
1,713)
133
7,539
1881,599)
26,328455
1,164)
2,060)
23,558

(42)
165
12)
－(646)－
4,545
3,626)
186662)
1,857
475)
27,917498
1,140)
2,610)
24,664

18,356)943
1,340)
1,340
67)
60

15,608)10680)
680
42)
28

－
6,727
2,656)
2,774
854)
11,427)

1,058)－
1,223)
1,223
877)
17,547)

4,219)
13,76815,884)1,490
1)1,618)
32)
6,496)
127
5,760
16,17021,931

5,339)
5,734
7,245)－0)2,260)
27)
9,139)
278)
2,299)
21,931
19,632Ryobi Consolidated Financial Statements for the Fiscal Period Ended Dec. 31, 2018

4. Segment Information(1) Industry Segment Information
For the fiscal year ended March 31, 2018
(Millions of yen)
DieCastings

Power Tools
and Builders’HardwarePrinting
Equipment

196,377

23,11327,473

116

5

Total

196,494

Operating income

Eliminations/ Corporate

Consolidated

227—

247,192—

47(170)—23,11927,473

275(170)

247,192

10,561

1,466

1,177

7(0)

13,212

Total Assets

206,225

10,40324,538

1,358

30,218272,743

Depreciation

15,020

626

344

18

—

16,010Capital Expenditure

18,282

438

101

19

—

18,841OtherNet Sales:
Unaffiliated customers
Intersegment

For the nine-month transitional fiscal period ended December 31, 2018
(Millions of yen)
Die
Castings

Builders’
HardwarePrinting
Equipment

Eliminations/ Corporate

Consolidated

188,403

7,885

19,704

193—

216,187

106

—

—

44

(150)

—

Total

188,509

7,885

19,704237(150)

216,187

Operating income

12,580

372

603

22

0

13,579Total Assets

207,661

10,362

24,9691,592

24,395

268,982

Depreciation

12,215

94

209

10

—

12,531

Capital Expenditure

19,533

223

211

19

—

19,987

OtherNet Sales:
Unaffiliated customers
Intersegment-6-Ryobi Consolidated Financial Statements for the Fiscal Period Ended Dec. 31, 2018(2) Information by Region
For the fiscal year ended March 31, 2018
a. Net sales(Millions of yen)Japan

U.S.A.

127,131

China

35,847

Other

43,713

Total

40,500247,192

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

41,289U.S.A.

Mexico11,593

12,181

China

Other

Total

30,868

11,891

107,823

For the nine-month transitional fiscal period ended December 31, 2018
a. Net sales(Millions of yen)Japan

U.S.A.

97,746

China

33,216

Other

40,897

Total

44,326

216,187

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

50,912

U.S.A.

11,012

Mexico12,130-7-

China

28,589

Other

9,647

Total

112,291