品名

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Integrated Report

Head Office

762 Mesaki-cho, Fuchu-shi, Hiroshima-ken 726-8628, JapanTEL 81-847-41-1111

Tokyo Branch

5-2-8 Toshima, Kita-ku, Tokyo 114-8518, JapanTEL 81-3-3927-5541

https://www.ryobi-group.co.jp/
Ryobi Limited. All Rights Reserved.

June 2023©RYOBI LIMITED 2023 Printed in Japan品名2023̲統合報告書

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RYOBI INTEGRATED REPORT 2023

Table of Contents

Editorial policy
Ryobi has published this integrated report in order toinform our shareholders, investors, and other stakeholders about our financial and non-financial efforts forvalue creation, and for use as a communication tool.

03

Ryobi's core values

05

Message from top management

11

Ryobi by the numbers

Please note that the IFRS's International Integrated

Value creation story

Reporting Framework and the Ministry of Economy,
Trade and Industry's Guidance for Integrated Corporate

15

History of Ryobi's growth

Disclosure

17

Cultivated strengths: (1) Die casting technology (2) Global production structureandCompany-Investor

Dialoguesfor(3) Manufacturing capabilities cultivated through die casting

Collaborative Value Creation were used as references

23

Value creation processgroup, including Ryobi Limited and consolidated

25

Business environment awareness and materiality

subsidiaries (domestic and overseas), is referred to as

27

Medium-term objectives and our initiatives"Ryobi", and Ryobi Limited by itself as "Ryobi Limited".

31

Ryobi's challenge: Die Castings Business33

Initiatives for weight reduction and electrification of automobiles

during the editing process. In the report, the entire

Die cast products used in automobiles

Covered in this report
Period: January 2022 to December 2022
(Some sections include information fromJanuary 2023 or later.)
Scope: Ryobi Limited and 19 subsidiaries(As of December 31, 2022)

Ryobi's aluminum die castings contribute to solving environmental problems through vehicle weight
reduction and electric vehicle applications

Door closer to ensure quiet and secure closing

Ryobi's challenge: Builders' Hardware Business

37

Ryobi's challenge: Printing Equipment Business
ESG (Environmental, Social, and Governance)

Disclaimer regarding statements about
future outlook
This integrated report contains information on our
future outlook and plans.
These predictions involve risks and uncertainties, andactual results and performance may differ from thosedescribed in this integrated report.

35

High-precision, multi-functional offset printing press

41

Environmental initiatives

43

Achieving carbon neutrality

45

Social initiatives

49

Governance53

10-year financial highlights

55

Consolidated financial statements

59

Organization profileRYOBI
INTEGRATED REPORT 2023
01

Ryobi Integrated Report 2023

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Ryobi's core values

Create a Sound and Dynamic Corporation
through Technology, Trust and Challenge
Ryobi is committed to creating a sound and dynamic corporation through technology, trust, and challenge. Guided bythis corporate philosophy, we seek to establish ourselves as an indispensable entity by responding to the needs ofcustomers and society and by creating and providing innovative, top-quality products and services.

Structure of our corporate
philosophy

Create a higher standard of living

Corporate
MissionRyobi's corporate philosophy issupported by three elements:

and better quality of life by providing
advanced technology with a visionof the future"Corporate Mission","Management
Mission"and "Employees' Mission."

Corporate
Philosophy

Value the trust andRefine your intelligence

goodwill of society, andstrive to become a strong,
dynamic organization thatreflects the originality andand polish your mind to

Management
Mission

Employees’
Missionhave a wide perspective,
and challenge goals withenthusiasm

creativity of individual
employees

Charter of Corporate Behavior
The Ryobi Charter of Corporate Behavior establishes a set of principles that Group companies and employees must follow
in order to raise awareness of corporate ethics. With the purpose of realizing a “sound and dynamic corporation” as part ofits corporate philosophy, the Ryobi Group adheres to all laws and international rules in word and spirit. In addition, beyond
being an economic agent that conducts business rooted in common sense, while pursuing profits through fair competition,
the Group aims to become a trustworthy company that has a useful presence in society as a whole.
1. While taking the measures necessary to protect personal data, we shall make efforts to obtain consumer and user
trust by the development and provision of useful products and services in a safe and responsible manner.
2. We shall undertake fair, transparent, free competition and sound business transactions. We will also ensure thatinteractions with political organizations, governments and government agencies are sound and correct.
3. In addition to targeting stakeholders, we shall communicate with members of society who are not direct
stakeholders and disclose corporate information in a proactive and fair manner.
4. Recognizing that initiatives to alleviate environmental problems are necessary for the continuing survival ofcompanies, we shall take a proactive approach in preserving the global environment.
5. We shall actively undertake social contribution activities to fulfill our role as a good corporate citizen.
6. Along with ensuring a safe and comfortable work environment, we shall respect the diversity, character andindividuality of those we hire to build a workplace culture that promotes creativity and dynamism. This, as aconsequence, will improve the mental and physical well-being of employees.
7. We repudiate any connection between antisocial forces and groups that pose a threat to social order and security.
8. We shall follow international rules and regional laws when undertaking international business activities as well as
respect the cultures and customs of such regions and countries, making every effort to contribute to thedevelopment of these regions and countries.
9. With the intent of contributing to the realization of corporate ethics—recognizing the social desires andexpectations inherent in their roles—our management shall make efforts to ensure that business partners are fully
informed regarding those social desires and expectations and develop systems to realize this.
10. In cases where violations of this code in fact occur, our management shall assume responsibility in confirming theactual situation, investigate the causes and make efforts to prevent such violations from reoccurring. Disclosure ofthese events will also occur in a timely and accurate manner, the responsible parties will be identified anddisciplinary actions will be undertaken.

Code of Conduct
Charter of Corporate Behavior

Long-term vision

Code of Conduct

Corporate message

Combining die castings andfinished products to be chosen by

Beyond Ideals and Dreams

customers around the world
Ryobi's long-term vision outlines where our company
wants to be in the future. It represents an image that
we share throughout our organization, and indicatesthe direction for our efforts to resolve business issues.

03

Ryobi Integrated Report 2023

Our corporate message represents our corporate
philosophy condensed into one sentence, and servesto convey Ryobi's medium to long-term approachand direction to various stakeholders in an easily
understandable manner.

We abide by a code of conduct that each and every employee must observe in the course of his or her daily work.

Medium-term objectives
Lightening the load
worldwide

Lightening vehicle weight
Harnessing the properties of aluminum and die casting technologies
Doors that open and close safely and quietly with a light touch
Builders’ hardware that turns doors into universally accessible portals, not barriersLightening the workload for printing factories
Multi-functional printing equipment that supports customers’ switch to smart
factories
Lightening the impact on the environment
Doing our part in the global effort toward carbon neutrality and a circular
economyLightening workstyles
A variety of systems to support employees on their career paths

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Working towards sustainablegrowth based on appropriate
strategies at the turning point
for a new era.

Message from top management

From Akira Urakami to each of you
Post-COVID-19 Recovery
We have been implementing our medium-term measures forthe three years from 2022 based on our policy of identifying andpromoting the changes necessary for our sustainable growth as
a company.

Akira Urakami
President and CEO
Ryobi Limited

Although the easing by many countries of the various restrictions on movement and activities implemented due to the novel
coronavirus (COVID-19) pandemic in 2022 has resulted inprogress in the normalization of socioeconomic activities, theshortage of semiconductors and similar problems have brought
disorder to global supply chains, resulting in sluggish automobile production and there were also changes in the economic
environment during 2022 such as drastic price increases inenergy and raw materials.
Amidst such conditions, Ryobi has been carrying out marketing activities using the corresponding strengths of our die
castings, builders' hardware, and printing equipment businesses, as well as various other policies such as those to reduce
costs, increase productivity, and improve operational efficiency.
Especially in regards to the die castings business, we negotiated revisions of sales prices with our customers in order to offset
rising raw material prices, mainly secondary aluminum alloys, aswell as energy and other costs. The shift in exchange rates to a
weak yen has served as a tailwind for business resulting inincreased revenues for two years in a row.
Consolidated financial results for the fiscal year ended
December 31, 2022 consisted of 249.5 billion yen in sales for a
26% increase over the previous year while operating income
improved to 7.0 billion yen from the deficit of the previous year
for an overall increase in both sales and profits. Although wehave faced various challenges over the last few years startingwith the supply chain disorder caused by the COVID-19
pandemic in 2020 and followed by business shutdowns andproduction adjustment, as well as drastic increases in energy
and raw materials prices, and the posting of impairment losses
of a U.K. subsidiary, net income attributable to owners of parent
was achieved for the first time in three years. We have achieved
recovery including sales and net income attributable to ownersof parent even in comparison with the fiscal year ended
December 31, 2019 prior to the COVID-19 pandemic.
While in 2023 we are still facing concerning conditions including the continuing semiconductor shortage and supply restrictions due to disorder in the supply/demand balance, as well as
drastic increases in energy and raw materials prices, automobile production has been slowly recovering, and we believe that
production of our die castings business will also recover. For the
fiscal year ended December 31, 2023, we expect increases inboth revenue and profit with consolidated net sales expected toincrease 7% year on year to 266.0 billion yen, operating income
to increase 8% year on year to 7.5 billion yen, and net income
attributable to owners of parent of 5.5 billion yen.
Consolidated Financial Results(Unit: billions of yen)

Results for theyear ended
December 31,
2021

Results for theyear ended
December 31,
2022

Forecast for theyear ending
December 31,
2023*

Net sales

198.1

249.5

266.0

Operating income

-1.5

7.0

7.5

Ordinary income

0

7.8

7.4

-4.4

4.8

5.5

Net income attributableto owners of parent* Values announced on February 13, 2023

TOP
MESSAGE05

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Message from top management

Encouraging employees to challenge themselves to achieve new growth
Amid the great changes in our socio-economic environment,
Ryobi is focused on the realization of our corporate philosophy
that serves as a compass leading us to sustainable growth:"Create a sound and dynamic corporation through technology,
trust, and challenge." In order to achieve this, we arestrengthening efforts for employees to fully absorb the threeelements of our corporate philosophy: "Corporate Mission","Management Mission" and "Employees' Mission." Somethingthat I always realize when talking with employees, especially theyounger generation, is that there are a great number of them
who express a high level of agreement with our Corporate
Mission of "Create a higher standard of living and better qualityof life by providing advanced technology with a vision of the
future". Their passionate desire to do work that is useful to theworld, fully encouraged top management to realize both socialand corporate value. In particular, we would like our Employees'
Mission of "Refine your intelligence and polish your mind to havea wide perspective, and challenge goals with enthusiasm" toprovide inspiration to our employees to take on new challenges
that combine their own individual creativity and ingenuity.
Guided by this corporate philosophy, and to share the medium
to long-term vision and direction, we formulated our corporate

07

message in 2019: "Beyond Ideals and Dreams". This message
is used internally and externally to express our eagerness tolisten to the ideals and dreams of our various stakeholders,
including customers, shareholders, investors, employees, andbusiness partners, and our commitment to go beyond what isrequired of us.

Developing products in response to market challenges faced by both builders'
hardware and printing equipment businesses
We expect a gradual contraction in the builder's hardware
market due to the anticipated long-term downward trend in theconstruction of new housing in Japan. In contrast, we
anticipate the demand for remodeling and renovation of homes,
buildings, and other structures to remain stable.

However, the COVID-19 pandemic has led to massivechanges in consumer behavior and lifestyles, and an increase in
online shopping. This has resulted in the emergence of several
promising fields, such as the package printing market, which
continues to show strong performance.

Ryobi is currently promoting our medium-term theme of"Lightening the load worldwide" mainly through advertising andour website. It serves as a rallying cry to go "Beyond Ideals andDreams" that Ryobi is promoting for our current conditions. As
the electrification of automobiles continues due to the global
trend toward decarbonization, together with the increasing
demand for reducing automobile weight to improve fuel andelectricity consumption, Ryobi is striving to reduce automobile
weight by use of aluminum die castings that are lightweight andrecyclable. Our efforts for lightening are not only focused on
automobiles but rather we are also striving to reduce various
types of burdens affecting the environment and work and,moreover, seeking ways to lighten workstyles. Ryobi is currently
focused on being a company contributing to weight and burden
reduction in various manners by applying our manufacturing
prowess.

Ryobi has long enjoyed a consistent reputation as amanufacturer of door closers (a major product of this businesssegment) that securely and quietly shut doors at a safe speed,
and that have been fitted to a great number of doors. Moving
forward, we will continue to strive to develop products reflecting
the needs of our customers within Japan and abroad.

Ryobi's main strength in the printing equipment business is
our storehouse of advanced development capabilities thatenable us to meet the diverse needs of our customers.
Additionally, we utilize our sales network that covers not only
Japan but also more than 170 countries and regions in order toserve our customers across the globe.

With the spread of barrier-free and universal design in society,
Ryobi is focused on the development of door parts that allow
for easy opening and closing by anyone at any time. By
expanding the functional range of standard door closers thatcan only close an open door, we developed our automatic door
controller RUCAD with an added door opening function.
RUCAD enables easy door opening and closing even if bothyour hands are full. We are working to increase recognition in
the market in order to develop RUCAD as the second pillar of
the business field after our door closers. RUCAD was installed
to a mock door to provide an image of a future hotel room door
at the "ARCHITECTURE + CONSTRUCTION MATERIALS
2023", with the display receiving a great amount of praise fromexhibition visitors.

The printing industry is facing challenges such as personnel
shortages and skill succession, and the demand for printing
related equipment that contributes to labor savings is growing.
Ryobi is pursuing automation of printing processes while also
facilitating the reduction of workloads through labor saving andwork processes that do not require any special skills. At thesame time, we are working with other related companies toprovide proposals for converting entire factories into smart
factories, including pre and post-printing processes.

Die castings business responds to global shift to lighter weight electrified vehicles

We are striving to expand the sales within Japan ofhigh-performance products such as RUCAD as well as thestylish GEOPRO Series. Outside of Japan, we are working to
expand sales in the mid-level and luxury door closer market. On
the production side, automation of factories has resulted in ahigher level of production technology and increased
productivity. We aim to increase our presence in the industry
through these types of production and sales activities.

Changes in the business environment related to Ryobi
consist of the massive impacts from the shift to electrified
vehicles occurring in the automobile industry with the transition
to battery electric vehicles (BEV) accelerating daily. Ryobi has
predicted that BEV will make up 54% of new automobile sales
in major countries by 2035. The increased weight of BEV due tothe use of large-size batteries and electrical equipment
accompanying the increased production of BEV in order toachieve carbon neutral globally has increased the demands toreduce the weight of parts to improve electricity consumption(equivalent to fuel costs of a gasoline automobile) and provide
longer cruising ranges. To achieve this, Ryobi is promoting thesuperiority of aluminum die castings for their light weight anddurability as well as for excellent recyclability.

mass production of aluminum frame parts for weld jointing of
two-wheeled vehicles in 2003. In 2005, we started to apply thistechnology to products for four-wheeled vehicles. As we haveproduced more than 10 million body and chassis production
parts, we feel that these results and the corresponding
experience are strengths of Ryobi. Additionally, we started
production of automobile subframes in the U.S., China, andThailand at the same time in order to provide parts with stable
quality across the globe. We believe that the design andproduction technology we have accumulated through such
results can be used to satisfy the demands of the automobile
industry in its ongoing shift to electrification. We are currently
assembling parts as well as being able to provide modularizedparts to our customers.

We have prepared for the shift to electrification and the needs
for lighter automobiles by positioning electric car parts such as
structural parts (such as body and chassis), e-Axles cases andbattery cases as strategic products in a growing market, andpromptly started focusing on the required technicaldevelopment. Ryobi started to develop basis aluminum die
casting technology for structural parts in 1999 and initiated

The percentage of new orders, which lead to future sales, forstrategic products in 2022 increased 23 points from theprevious year to make for 78% of the new orders. Due to thesefactors, strategic products made for 15% of sales of the die
castings business in 2022 and is predicted to reach 24% in
2023 with it reaching nearly 40% in 2027.

Ryobi Integrated Report 2023

Our printing equipment business is facing a shrinking market
in the publication printing segment such as books andmagazines. The gradual lessening of the restrictions and othereffects of the COVID-19 pandemic has resulted in a trend
towards recovery of demand for promotional materials such as
fliers and posters.

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Message from top management"A safe, healthy, dynamic, and comfortable workplace environment" provides
the foundation of our sustainable growth
The act of creation springs from people’s ideals and dreams.
Ryobi aspires to embody these ideals and dreams through its products
and technologies.

Offsetprinting presses

Door closers

This is why we engage in manufacturing and strive toward innovation.
We believe that our manufacturing ideals can be reachedthrough the ceaseless pursuit of better solutions.
Ryobi will continue striving to realize what people

Automobile
parts

envision and, further, to create something that goesbeyond any ideals and dreams.

Automobile
parts

Door closers

Accelerated measures to achieve carbon neutrality
A major management issue facing sustainable growth isreducing the environmental burden, including carbon neutrality.
Of the aluminum alloy used as raw material for our die castproducts, approximately 97% consists of secondary alloys(recycled ingots) made by recycling various types of aluminum
scrap. Secondary alloys can be produced with only 3% of theCO2 emissions that are used to produce new aluminum ingots
from bauxite ore, a natural resource, giving them the advantage
of a small environmental burden.
One of Ryobi's materiality issues is addressing climate change
by implementing measures to reduce environmental burdens. We
started to formulate the "CO2 Output Reduction Roadmap"
based on technical trends, governmental energy policy, andsimilar items and mainly centered on our Environmental
Preservation Committee. The Ryobi Group is united in
implementing measure to achieve carbon neutrality by 2050.
An example of specific measures is the installation of aroof-mounted solar power system at the die castings production
plant of Ryobi Die Casting (Thailand) Co., Ltd. in September 2022with the system starting full-scale operation in February 2023. In
addition to this, Ryobi Limited and domestic group companies
have independently set carbon prices in order to promote

09

Ryobi Integrated Report 2023

investment in environmental measures and taking into accountinternal carbon pricing when determining the effectiveness ofcapital investments in energy conservation and renewable energy
in order to accelerate measures to reduce CO2 emissions. (P. 44)
Additionally, we utilized the framework of recommendations of
the TCFD (Task Force on Climate-related Financial Disclosures)for our information disclosure in June 2023 regarding the four
subjects pertaining to climate change-related risks and opportunities: Governance, Strategy, Risk management, and Metrics andtargets. (P. 29-30)

Amid the challenges in achieving sustainable growth, the first thatmust be addressed is the pursuit of human capital management.
Ryobi is focused on creating "a safe, healthy, dynamic, and comfortable workplace environment", and we have been continuously
implementing various measures.
In regards to safety, we feel that not only customers but society ingeneral will not allow a company to be lacking in safety awareness andtherefore all of our business activities are performed with priority placedon the safety of our employees and our local communities.
It is necessary to maintain a constant awareness of safety at
production sites, given their constantly changing conditions, in orderto reduce the risk of accidents. We believe that the most important
duty of our management personnel is to create sources of safety-focused culture. We are forging a solid culture of safety by constantly
communicating that "safety is more important than anything else"
directly to our employees and through other methods such as the
distribution of video messages.
We believe that good individual mental and physical health of ouremployees enables them to take full advantage of his or her uniquepersonality and abilities, thereby providing joy and well-being to theemployees and their families as well as helping to develop our business.
We also view increasing healthy life expectancy as an important issue.
Our efforts for employee health management consist of setting
indicators for monthly average overtime rate, paid leave utilization rate,stress check rate, and similar items, as well as performing appropriate
personnel distribution, designating a "No Overtime Day", encouraging
the taking of consecutive paid leave days, and training according to theresults of a stress check. These measures have resulted in Ryobi being
recognized as an outstanding organization under the Certified Healthand Productivity Management Outstanding Organizations Recognition
Program for the fourth consecutive year.
One issue in creating a comfortable workplace is firmly establishingchildcare leave. In order to encourage men to take childcare leave,
which remains at a lower level than women, we have been distributing
video messages to management personnel to promote understandingof the issue among management and supervisory personnel. We believethat management has an important mission in providing a safe andsecure environment so that both men and women can balancechildcare and their jobs without difficulty. At the same time, we regard
the promotion of women's career advancement as an important issue
also. In that regard, we are focused on creating a workplace environment in which employees can readily take on self-challenges such as
taking management training courses and promotion tests. The stratumof supervisory personnel aiming to join management has gradually
increased and you can truly sense the ongoing positive changes in our
workplaces.
In order to develop our human resources, we are instilling theimportance of maintaining a "Wide Perspective" to our employees as
indicated in the "Employees' Mission" of Ryobi's corporate philosophy.
This "Wide Perspective" not only refers to specialized fields but alsomeans having knowledge in a wide range of fields and maintaining atruly global viewpoint. Tangible measures for human resources development include the establishment of the "Career Development Program(CDP)" that enables employees to gain experience in various
departments and work tasks within the company. This programprovides the opportunity for employees to enhance their abilities by
gaining a wide range of knowledge, being exposed to diverse
viewpoints, and achieving a sense of balance needed for internal andexternal negotiations and coordination.
Ryobi will be commemorating our 80th anniversary on December
16, 2023. I would like to extend our sincere and deepest gratitude to
all the stakeholders who have supported us over these many years.
The Ryobi Group is further strengthening the bonds of trust withsociety through manufacturing that creates a higher standard of living
and better quality of life. Moreover, we are committed to developing
forward-looking technologies, products and services, and uniting our
employees to pave the way toward a better tomorrow in our aim to bea sound and dynamic corporation. As we continue to pursue theimprovement of corporate value based on our corporate philosophy,
we thank you for your continued understanding and unwavering
support of our company.

We identified the risks and opportunities in the following
assumed scenarios and studied corresponding countermeasures.
4 °C scenario: No climate change measures beyond thosecurrently enacted are implemented and the impacts of physicalrisks such as flooding become apparent.
2 °C and 1.5 °C scenarios: Climate change measures
beyond those currently enacted are implemented and theimpacts of transitioning to a carbon-free society become
apparent. Targets have been set and measures taken in orderto realize the identified opportunities and perform risk management in our goal to achieve carbon neutrality and the sustainable development of our company.

President and CEO
Ryobi Limited

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Ryobi by the numbers
Ryobi started out as a die casting manufacturer in December 1943, and while cultivating its own unique technologies, has supplied aActual results for 2022

variety of components mainly to the automotive industry. We have since expanded our operations by using these technologies andexperiences to manufacture finished products such as builders' hardware and printing equipment. Ryobi provides products andservices for both the Japanese market as well as various other countries and regions.

Financial indicators

Net sales

Ryobi's sales composition ratio and business domains
Builders' Hardware Business

Printing Equipment Business

Sales composition ratio

Sales composition ratio

4.1% 10.1

9.4% 23.4

billion yen

249.5 billion yen

7.0 billion yen

Ordinary income

Net income attributableto owners of parent

7.8 billion yen

4.8 billion yen

billion yen

Business domain

Business domain

Providing door closers to ensure quiet
and secure closing and other building
hardware. From houses to offices andcommercial facilities, we support safe
and comfortable door use.

High-precision, multi-functional offset printing presses that speedily produce beautiful printed materials such as catalogs, posters,
magazines, and packages. We offer innovative, high-quality
printing presses and services to customers around the world.

Ordinary income-to-total
asset ratio (%)

16.8 billion yen

Capital expenditures

Equity ratio

CO2 emissions

344 thousand t-CO /year

249.5

2

billion yen

86.5% 215.7

Ryobi Integrated Report 2023

99.5%

(Ryobi Limited and domestic group companies)

Number of employees

billion yen

Business domain

11

Waste recycling ratio

Domestic/
Overseas sales ratio

Die cast products are used in a variety ofindustries, including the manufacture ofautomobile parts such as transmission cases,
body chassis, and battery cases. We provide
high-quality products that meet the diverse
needs of our customers worldwide.

44.8%

Non-financial indicators

Fiscal year ended
December 31, 2022
Net sales

Sales composition ratio

Cash flows fromoperating activities

2.7%

18.6 billion yen

Die Castings Business

Operating income

Overseas

Domestic

54.0% 46.0%

7,375

Water consumption

1,241 thousand m /year
3(Ryobi Limited and domestic group companies)

Annual lost time incident
rate per 1,000 workers

3.3

Average employee tenure

19.0 years(Ryobi Limited)

Percentage of women in
managerial and supervisory
positions

Percentage of mid-career
workers in managerial
positions(Ryobi Limited)(Ryobi Limited)

15.5%

18.8%

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Value creation story
History of Ryobi's growth ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・p. 15-16
Cultivated strengths ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・p. 17-22
Value creation process ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・p. 23-24
Business environment awareness and materiality ・・・・・・・・・・・・・・・・・・・・・・・・・・p. 25-26
Medium-term objectives and our initiatives ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ p. 27-30
Ryobi's challenge: Die Castings Business ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・p. 31-32
Initiatives for weight reduction and electrification of automobiles ・・・・・・p. 33-34
Ryobi's challenge: Builders' Hardware Business ・・・・・・・・・・・・・・・・・・・・・・・・・・・・p. 35-36
Ryobi's challenge: Printing Equipment Business ・・・・・・・・・・・・・・・・・・・・・・・・・・・・p. 37-38

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VALUE
CREATION
STORY
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Value creation story

History of Ryobi's growth

1943

1950

1960

1970

Challenge to create
finished products based on
our cultivated technology

Challenge to create a verticallyintegrated system from scratchEver since our foundation, we
have recognized the need todiversify risks by doing
business with a variety ofindustries. Further expanding
this idea, we began manufacturing offset printing presses,
door closers, fishing tackle,
and power tools in the
1960s, using the technology
and experience accumulated
through die casting. This wasa major step forward for it as
a company with business inboth die casting and finishedproducts.

In December 1943, Yutaka Urakami founded Ryobi
Seisakusho Co., Ltd. in his hometown of Hiroshima
Prefecture. The opening ceremony was held in
February of the following year, and production of die
cast products began in a converted soy sauce
warehouse. Shortly thereafter, the company
established a vertically integrated system that enabled
in-house handling of all operations from die fabrication
to post-processing, and in 1947 began supplying
automobile
manufacturers.

Conditions atcompany
founding

1980

1990

2000

2010

Challenge to improve the Ryobi brand visibility / Challenge to expand globally

Ryobi Seisakusho was not yet widely known. To improve Ryobi's namerecognition, the company name was changed to the current Ryobi Limited in
1973, and a corporate identity system was introduced in 1975. Another development during this period was the establishment of sales and production facilities
for finished products in Europe, Australia, and Asia as we took up the challengeof global expansion.
1974 Founded Ryobi America Corporation
1982 Founded Ryobi Australia Pty. Ltd.
1983 Founded Ryobi France S.A.
1986 Acquired capital in Inertia Dynamics Corp. and started overseas
manufacturing
1988 Founded Ryobi Motor Products Corp. in the U.S. and acquired all assetsof the power tool division of Singer Co., followed by expansion of power
tool manufacturing in North America

2020 2022 (Year)

Challenging through selection and concentration

However, this strategy of broadening the business fields did not produce the expected results due to thecollapse of Japan’s economic bubble in the 1990's, and Ryobi suffered a serious setback. Consequently, in
2000, we announced the Sound Management Plan to restore our business operations.
By drastically cutting out unprofitable operations through selection and concentration, Ryobi formulated apolicy for concentrating resources on areas of strength.
2000 Transferred the North American power tool and garden equipment operations; transferred fishingtackle business2001 Transferred the European power tool operations
2002 Discontinued the golfing goods business
After completion of the plan, Ryobi established die casting production facilities in China, Mexico, and Thailand
from 2005, adding to production facilities in the U.S. and the U.K., in order to meet the needs of customers
looking to expand global business through locally procured components. Currently, we offer high-quality die
cast products in six overseas locations.
In 2014, to increase our presence in the printing equipment business, we integrated our business with the
sheet-fed offset printing press field operations of Mitsubishi Heavy Industries Machinery Systems, Ltd. toestablish a joint venture, RYOBI MHI Graphic Technology Ltd. Moreover, in 2018, power tools business weretransferred.

1994 Founded Ryobi Dalian Machinery Co., Ltd., presently
called KYOCERA RYOBI (Dalian) Machinery Co., Ltd.
In the die castings business, Ryobi became the first Japanese
die casting manufacturer to establish production facilities in the
U.S., responding to the increase in transactions with overseas
automobile manufacturers.
1985 Founded Sheller-Ryobi Corp., presently called Ryobi
Die Casting (USA), Inc.
1990 Founded Ryobi Aluminium Casting (UK), Limited in
Northern Ireland

Current Ryobi Die Casting (USA), Inc.

(Unit: billionsof yen)300
1973

1943 Founded Ryobi Seisakusho Co., Ltd.

1975

Introduced a corporate identity
system (CIS)

Changed company nameto Ryobi Limited
1966

200

1962

1966

Started zinc die casting production

Founded a production facility
in the U.K.
1989

Founded a production
facility in Mexico

1990

Established a production facility
in the U.S.

Began production
by low pressure
die casting

Net sales for fiscal year
ended March 31, 2018

1971

Startedmanufacturing
power tools

1982 1983

1974

Founded asales basein Australia

Started sales ofpower tools

2005

Acquired capital inTokyo Light Alloy Co., Ltd.

1986
Started manufacturing
overseas

Foundeda sales basein Europe

2007

2010 2011

Founded a
production facility
in Dalian, China

1966

Founded a
production facility
in Changzhou, China

Ryobi Integrated Report 2023

1987

1970

Transferred power tools businessTransferred North American operations
Started productionin Dalian, China

Started sales of electric automaticdoor controller RUCAD
2019

Constructed a new plant

2021

Installed automatic production line
for door closers in Japan

Started sales of A3-size
digital offset printing presses

1985

2008

Builders' Hardware
Business
p. 35-36

2014

Started sales of
Joint venture RYOBI MHI Graphic
products equipped
Technology Ltd. commenced
with LED-UV printing system operations
Started sales of B1-size
offset printing presses
2009

Printing Equipment
Business
p. 37-38

2011

Ended sales
Transferred font operationsof phototypesetters

Started sales of electronic
phototypesetters

1980

Die Castings Businessp. 31-34

Acquired Hoei
Industries Co., Ltd.,a manufacturer of forgedaluminum products
Developed the GD
squeeze casting
2018

1994

Started sales of
A2-size offset
printing presses

Started sales of manualphototypesetters
Started development and sales of fonts

1960

Acquired the power
tool division ofSinger Co. in the U.S.

2000

1999 2000

1970

1950

1994

1978

Started sales
Startedof own brandproduction of
products
A3-size offset
printing presses

This graph shows changes in net sales

1988

Started manufacturing
door closers in Taiwan

Started productionof door closers
1961

Net sales for the transitional fiscal
period ended December 31, 2018

Founded a
production facility
in Thailand
2017 2018

Founded a sales base in the U.S.
1968

100

15

Changed the fiscal year end
from March 31 to December 31

2002 Discontinued the golfing goods business

1985

1963

1943

Reviewed the corporate identity system (CIS) and adopted
a new corporate logo and colors

1961

Founded Tokyo Light Alloy
Co., Ltd.
Began sand casting andgravity die casting0

Changed the fiscal
year end from
November 30 toMarch 31Began manufacturing
golfing goods

Started manufacturing Started manufacturing
die cast products
plastic die cast products
1930

2018

1983

Shizuoka Plant started
operations as a production
facility in eastern Japan
1954

1994

2000 Transferred the fishing tackle business

Began manufacturing fishing tackle

1944

1988

1990

2000

2010

2020

(Year)

Ryobi Integrated Report 2023

16

品名

2023̲統合報告書

P17-18

日時

7/3

5校

作業者

井上

Value creation story

Cultivated strengths (1) Die casting technology

Beyond manufacturing with integrated die casting technology

Ryobi's casting methods

Ryobi has established a proprietary vertically integrated system for its die casting operations that covers everything from development
support for customers, prototyping, die design, and fabrication to casting, machining, assembly, and quality inspection.
At Ryobi, we continue to challenge conventions by developing various materials and new production methods that will define thefuture. Our product development is aimed at improving functionality and reliability, and we strive to contribute to the future of the
manufacturing industry by focusing on the mobility field.

To create a high-quality die cast product, it is vital that the casting remains free of any trapped air, as this will cause blow holes. This is
why Ryobi has developed an original vacuum exhaust valve (RSV: Ryobi Shut Valve) for use with our own vacuum die casting. All of ourcurrent products are manufactured with RSV-fitted dies to ensure consistent quality.
Lighter weight automobiles also require die cast products with welding capabilities. We have responded to this need by developing anairtight die sealing technology and a high-vacuum die casting, enabling high temperature heat treatments (T6 and T7) and welding thatwere previously considered impossible.
In recent years, we have developed technologies for smaller vacuum exhaust valves (new types of RSV) and lower casting pressure. This
allowed us to downsize our casting machines and establish a method for simultaneous multi-piece casting, resulting in cost reductions.
Another development is that of highly ductile aluminum die casting alloys. These materials enable the steel in body and chassis parts tobe replaced with aluminum, thereby contributing to weight reduction of automobiles.
We offer various alternatives to our die casting to optimally suit the needs of our customers. These include the gravity die casting suitedfor thick-walled products to ensure strength and rigidity, the separate injection process, the low-pressure die casting, and the new GD
squeeze casting.
Ryobi will continue to develop new production methods and new alloys that help make automobiles even lighter.

Processes of the vertically integrated system
Ryobi's proprietary vertically integrated system enables us to satisfy the various needs of our customers in a speedy and precise
manner. Production line automation, information and communications technologies, and quality assurance improvement have resulted
in stable quality, reduced delivery times, cost reductions and similar benefits.

Ryobi's casting methods❸
High

Die design

Use of CAE-based
analysis and evaluation
technologies topropose optimal
shapes for reducing
product weight andproviding more rigidity

Solidification
analysis using 3D
CAD is performed
to create theoptimum productshape and castingplan

Die fabrication
Manufacturinghigh-precision dies
based on die design
drawings by usingstate-of-the-art
machine tools andour own unique
technologies

Casting
Molten non-ferrous
metal, such as analuminum alloy, is
injected at highspeed and highpressure into a
precision die, where
it is instantly shaped
into the desired form

Machiningandassembly
Machining, surface
treatment andassembly of castproducts according
to customer needs
and requests

Qualityinspection
Precise quality
inspections including
the measurement of
product dimensions
using 3D measuring
instruments, X-ray/CT
inspections, andstrength tests

High-vacuum die casting
Strength and quality

Product
development
and prototyping

❹

❷

❶

Highly tough products; large, complexly shaped products

GD squeeze casting Thick-walled, high-strength products
Low-pressure die casting
Separate injection process (T-SIP)
Gravity die casting
Complexly shaped products; hollow products❻❺

Vacuum die casting
Large, complexly shaped products❼❽
Conventional high-pressure die casting
General products❶ Shock tower❷ Subframe❸ Knuckle❹ Differential retainer❺ Cylinder block❻ Motor case❼ Transmission case
❽ E-Axle caseThicknessHigh

Ryobi's measures for total optimization of production processes
Ryobi's unique GD squeeze casting

Improving inter-process linkage
Our die castings business is working to improve technical abilities and management level in each production process as we aim for total
optimization that provides seamless inter-process linkage. The initial period when mass production, such as for newly ordered products,
starts is especially prone to unstable quality such as product defects. As production quantity increases, small defects in each process
start to accumulate until they reach the level of obvious product fault. We created a new department in the Die Department in September
2022 to comprehensively manage all aspects from technical studies and process design before an order is placed to the start of mass
production and corresponding support in order to reduce such unstable inter-process elements. Creating systems and taking measuresin this way has reduced costs and improved productivity so that we can provide high-quality and stable supply across the globe.

There is a growing trend to replace conventional cast iron products with aluminum alloys in order to reduce vehicle weight. However,
because knuckles and similar chassis parts have thick-walled shapes to provide the required high level of strength and rigidity, they
are generally manufactured by gravity, low-pressure, or squeeze casting as opposed to die casting. A large problem with these typesof methods is their higher costs because of the small number of products that can be produced per hour. To resolve such issues,
Ryobi developed our unique new "GD squeeze casting" that is used in combination with gravity and squeeze casting. Parts madeusing the GD squeeze casting are already used by major automobile manufactures, for example, for the knuckles in the suspension
near the tires.

Standardizing technology and know-how
Ryobi has been standardizing the technology and know-how accumulated as a result of our production of numerous parts in order tomaintain and control die casting production with stable quality. Our die castings business has been required to create a stableproduction system in order to satisfy the needs of our customers that are constantly becoming more advanced and complex. For thisreason, we created the RYOBI Engineering Standard (RES) in order to accumulate and improve technology, maintain and improve
quality, standardization and similar positive actions. We have achieved stable production through the accumulation of technology toserve as assets for the entire company, and clearly stipulating work methods and quality standards.

17

Ryobi Integrated Report 2023

300 mm

140 mmKnuckle250 mmProducts manufactured using GD squeeze casting

Ryobi Integrated Report 2023

18

品名

2023̲統合報告書

P19-20

日時

6/21

7校

作業者

井上

Value creation story

Cultivated strengths (2) Global production structure

Production structure for customers worldwide

Business with customers worldwide

In 1985, Ryobi became the first Japanese die casting manufacturer to establish a production facility in the United States. Today, we haveproduction facilities in six countries around the world, including the U.K., China, Mexico, and Thailand, as we provide high-quality die castproducts to customers around the world.
Our dies are manufactured in Japan and supplied to our overseas group companies.
The Hiroshima Plant serves as our home factory and is a driving force for improving the productivity and quality of the entire group throughproduction line automation, information and communications technologies, and quality assurance improvement. Ryobi continues to deepenand expand its relationships with customers that include automobile manufacturers around the world.

The Ryobi Group is not dependent on any particular automobile manufacturer, but rather serves customers around the world on a
global basis.

Die castings business: production facilities

Aisin Corporation●

Subaru Corporation●

Hino Motors, Ltd.

●

Honda Motor Co., Ltd.

●

Isuzu Motors Limited●

General Motors●

BYD Company Limited●

Mazda Motor Corporation●

JATCO Ltd●

Daihatsu Motor Co., Ltd.

●

Hyundai Motor Company●●

Suzuki Motor Corporation●

Toyota Motor Corporation●

Ford Motor Company●

Stellantis NV●

Nissan Motor Co., Ltd.

●

Volkswagen AG●

Zhejiang Geely Holding Group●

Punch Powertrain PSA
e-Transmissions●

Mitsubishi Motors Corporationand others

Prime Planet Energy &Solutions, Inc.

Recognition received from customers around the world

U.K.

RYOBI
ALUMINIUM
CASTING (UK),
LIMITED

U.S.A.

●China

RYOBI DIECASTINGDALIAN
CO., LTD.

RYOBI DIE CASTING(USA), INC.
China

Japan
RYOBI LIMITED
Hiroshima Plant / Hiroshima East Plant /Shizuoka Plant / Kikugawa Plant

RYOBI DIECASTINGCHANGZHOU
CO., LTD.

Mexico

RDCM, S. DE R.L.
DE C.V.

Hiroshima East Plant

Ryobi has strengthened and upgraded its quality assurance structure, including acquisition of the ISO 9001 certification, which is theinternational standard for quality control and quality assurance systems, and the IATF 16949 certification, which is the quality
management system standard for the automotive industry. We also ensure competitive pricing by promoting productivity improvements
and global cost reductions. We have received recognition from customers around the world for our efforts in these areas.
Awards Received in 2022
Project Commendation fromToyota Motor Corporation
for Cost

Best Cooperation Award from
Volkswagen AutomaticTransmission (Dalian)

Suppliers' Award fromSAIC General Motors

Project Commendation fromToyota Motor Corporation forEngineering

RYOBI MIRASAKA CO.
ThailandRYOBI MITSUGI CO.

RYOBI DIE CASTING(THAILAND) CO., LTD.

TOKYO LIGHT ALLOY
CO., LTD.
IKUNO CO.
HOEI INDUSTRIESCO., LTD.

Global expansion of aluminum die-cast subframes

Overseas sales(Unit: billionsof yen)Changes in overseas sales, domestic sales, and overseas sales ratio

300

60%

Overseas sales
Domestic sales
Overseas sales ratio

250
200

50%
40%

Ryobi Integrated Report 2023

22
20

20

21

c.
De

20

c.

20

U.S.A.

366

4,238
China

De

19

c.

20
c.
De

De

18

8

20

01

c.

Thailand

2,102
19

De

01

ar
.2
M

01

ar
.2
M

01

ar
.2
M

ar
.2

01

At the end of December 2022, the Ryobi Group had 7,375
employees, of which 3,137 were in Japan and 4,238 overseas. The
number of employees at each overseas location is shown in thegraph on the right.

M

01

ar
.2
M

01

ar
.2
M

01

ar
.2
M

01

ar
.2
M

ar
.2
M

Number of employees at overseas
locations

7

0%
6

0
5

10%
4

20%

50
3

100

2

30%

1

150

0

By assisting local automobile manufacturers to
expand their production,
the ratio of overseas sales
to
total
sales
has
increased to 57%.

774
Mexico

556
U.K.

440

The increased environmental consciousness globally and carbon neutrality have resulted in a shift toward electrification and weight
reduction in order to improve fuel efficiency in automobiles all across the world. This has resulted in customers requiring provision oflighter weight parts with stable quality and the same specifications for every region.
Ryobi simultaneously started up three global production facilities including sites that had no experience producing body and chassis parts.
Ryobi initiated basic technicaldevelopment of aluminum die-cast
Global production
Measures for production evolution and global expansion(U.S., China, and Thailand)
body and chassis parts in 1999, and
21M subframe
U.S. production
started to provide subframes andSteeland aluminum
similar body and chassis parts to
13M subframe
18M subframe
Japan production
joints (bolts)
Two-cavity
castingvarious customers in Japan and the- Challenges for- Two-cavity casting to
05M subframe
08M base bracket
structural streamlining
handle large-scale
U.S. from 2004. Using ourand global expansion
production of large parts- Weight reduction- Bolt-securing of steel- Steel and aluminumof two-cavity casting- Weldable die-castplate press parts
knowledge and experiences we havejoints (FSW)- Steel and aluminummaterial- Scaffolding
joints (FSW)- Material technology
construction foraccumulated over many years, weand high-vacuum die
two-cavity casting
casting
have developed elemental die-castCustomer needs
technology in order to stably produce
Streamlining by
parts integration
parts of the same quality to satisfy
Production needs
ever more sophisticated specifica400,000 parts/year
Uniform quality andeasy to producetions. Expanding this globally tomultiple production facilities started in
Production scale:
25,000 parts/year
Three times or more2020 with the launch of the first facility
that of current scale(Global)followed by the three global produc400,000 parts/year
400,000 parts/yeartion facilities starting to perform
2005
2008
2013
2018
2021
full-scale manufacturing in 2022.
Ryobi Integrated Report 2023

20

品名

2023̲統合報告書

P23-24

日時

6/1

10校-K 作業者

井上

Value creation story

Cultivated strengths (3) Manufacturing capabilities cultivatedthrough die casting

Application from die casting technology to finished products(1963 to present)

Using precision die machining technology and other die casting technologies, Ryobi began manufacturing

In 1963, the company began manufacturing door closers,

offset printing presses, door closers, fishing tackle, power tools, and golfing goods. Our current businessusing the advanced casting and machining technologies cultivatedin our die casting operations.

activities span three fields: die castings, builders' hardware, and printing equipment.

Since then, we have been offering high-performance productswith original mechanisms. Our product development focuses onfunctionality and safety as well as barrier-free, inclusive design.
Ryobi produces door guards, hinges, and other builders'Fishing tackle

hardware for various building applications.

(1966 to 2000)
Reel bodies were manufactured
through die casting.
Precision machining technologies wereused for gears and spools.
In 2000, fishing tackle
business was transferred toJohshuya Co., Ltd.

Discontinued the
manufacture and sales ofgolfing goods in 2002.

In 2018, power tools
business was transferred to
Kyocera Corporation.

Golfing goods(1983 to 2002)

We developed golf clubs with

Power tools(1968 to 2018)(1961 to present)

integrally molded aluminumalloy heads.

In 1961, the company began manufacturing offset printingpresses by applying its precision machining technology fordie casting molds.
We strive to achieve high-accuracy, multi-coloring, and highly

Many power tool bodies wereadvanced functionality by accumulating the production

manufactured through die casting.

technologies that we use to assemble high-precision parts.
We offer a wide range of products, from small to large printingpresses, and develop and manufacture products thatprovides solutions for digitalizationand environment.

21

Ryobi Integrated Report 2023

Ryobi Integrated Report 2023

22

品名

2023̲統合報告書

日時P23-24

6/1

9校-K 作業者

井上

Value creation story

Value creation process

Corporate philosophy
Societal changes
Increased awareness of the global
environment● Increased uncertainty about the
global situation● Demographic changes● Increased awareness of human rights● Accelerated digitalization of society● Increased demand for transparent
management●●

Create a sound and dynamic
corporation throughtechnology, trust and challenge

Corporate Mission
Create a higher standard of living andbetter quality of life by providing advanced
technology with a vision of the future

Foundation for sustainablevalue creation / ESG

Foundations of our business*Figures are actual results for FY2022.

Financial capital● Total assets: 300.3 billion yen (end of fiscal year)● Cash flows from operating activities: 16.8 billion yen
Manufacturing capital
Established production facilities in Japan,
the U.S., Mexico, the U.K., China, and Thailand● Capital expenditures: 18.6 billion yen

Environment
p. 41-44

Strengths of the Ryobi Group●Management Mission●

Value the trust and goodwill of society, and strive to
become a strong, dynamic organization that reflects
the originality and creativity of individual employees

Societyp. 45-48

Business development

Addressing environmental issues
Supporting weight reduction andelectrification of automobiles● Achieving carbon neutrality● Effective use of resources●

Society

Die Castings
Business
p. 31-34

Human capital● Number of consolidated employees:
7,375 (end of fiscal year)

Social capital● Trusted relationship withshareholders, business partners,
and other stakeholders●

23

Oil (crude oil equivalent): 2,578 kl
Water consumption: 1,241 thousand m³

Ryobi Integrated Report 2023

Facilitating comfortable living andenriching people's lives● Contributing to the safety, security,and comfort of people's lives● Reducing workloads by providing automatedand labor-saving products and services
Creating an environment in which all
employees can play an active role
● Promoting diversity, equity, and inclusion

Commitment to challenge

Cultivated
Natural capitalstrengths (2)Energy consumption
Electricity: 152,263 thousand kWh
Global production
City gas: 8,532 thousand m³
structure
Liquefied natural gas (LNG): 2,880t
p. 19-20
Liquefied petroleum gas (LPG): 1,714t●

Value co-createdwith stakeholders
Environment●Intellectual capital● Development of materials, advanced casting,and machining technologies, as well as
collective strength and corporate agility.

Refine your intelligence and polish yourmind to have a wide perspective, andchallenge goals with enthusiasm

Governancep. 49-52

Having started out as a die casting manufacturer, Ryobi has
cultivated its own unique technologies to produce a variety ofcomponents mainly for the automotive industry.
We have since expanded our operations by using these technologies
and experiences to manufacture finished products such as builders'
hardware and printing equipment.

Cultivatedstrengths (1)Die casting
technology
p. 17-18

Employees’ Mission

Cultivatedstrengths (3)Manufacturing
capabilities
cultivated throughdie castingp. 21-22

Builders' Hardware
Business
p. 35-36

EconomyMaintaining stable prots and cash flow
Continuation of stable dividends

Printing Equipment
Business
p. 37-38

Ryobi Integrated Report 2023

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品名

2023̲統合報告書

P25-26

日時

6/15

2校

作業者

井上

Value creation story

Business environment awareness and materiality
Ryobi believes that in order to maintain sustainable growth and meet the expectations of customers, shareholders,investors, business partners, employees, local communities, and other stakeholders, we should identify the long-term

Materiality matrix

values we can provide to customers and society and incorporate these values into our management strategy.

Business environment awarenessSocietal changes
Increasedawareness of the
globalenvironment

Increased
uncertainty about
the global situation

Demographic
changes

Increasedawareness ofhuman rights

Accelerated
digitalization ofsociety

Increased demand
for transparent
management

25

Risks
●

Decreasing sales of engine
and transmission parts

Opportunities
Increasing sales oflightweight parts and electric
car parts● Improving the corporate
image by reducing theenvironmental impact●

Supply chain disruption● Soaring raw material prices
and sharp fluctuations inforeign exchange rates●

Difficulty in recruiting younger
generations● Aging employees● Decreasing business
opportunities and transaction
volume●Declining engagement
Outflow of human resources

●

●

●

●
●

●

Existing businesses
becoming obsolete

Shrinking number ofshareholders and investors● Scandals●

Ryobi Integrated Report 2023

Increasing corporate
credibility by improving
customer satisfaction

Increasing need forautomation and reduction ofhuman labor

Materiality
Supporting weight reductionand electrification of
automobiles● Responding to climatechange● Reducing the environmental
impact●Providing high-quality
products● Building an optimal supply
chain●

Promoting automation andreducing human labor● Improving production
efficiency●

Growing need for touchlessaccess● Improving labor productivity
and quality through the useof AI and loT technologies● Improving operational
efficiency through predictive
facility maintenance

●

●

●

Strengthening trust withstakeholders●

Promoting risk management●

Improving information disclosure●

Supporting weight reduction and electrification of
automobiles●

Responding to climate change●

Providing high-quality products●

Promoting automation and reducing human labor●

Improving production efficiency●

Strengthening corporate governance●

Creating a comfortable work environment●

Reducing the environmental impact●

Improving labor productivity●

Building an optimal supply chain●

Respect for human rights●●

Improving business operations through the use ofdigital technology

Promoting compliance●

Human resource development

Importance to Ryobi●

Internal revitalization
Securing skilled humanresources that wereconcentrated in urban areas●

Importance to stakeholders

We have identified materiality issues that are key to a sustainable society and we should first address.

Creating a comfortable work
environment● Respect for human rights● Human resource
development

Improving business
operations through the useof digital technology● Improving labor productivity

Strengthening corporate
governance● Promoting compliance● Promoting risk management● Improving information
disclosure●

Materiality identification process
To maintain awareness of the environment in which our business operates, we listened closely to the opinions of our
stakeholders as we conducted our materiality assessment. We will continue to review our materiality assessments
based on even more opinions from our stakeholders going forward.
STEP 1
Identification ofsocial issues

STEP 2
Prioritization

Not only did we study the ESG rating organization (FTSE) survey items, but we also recognizedchanges in society that surround Ryobi. Based on the risks and opportunities presented by theseexternal changes, related divisions led by our Corporate Planning Division identified social issues that
we believe we should address.

The social issues identified in STEP 1 were evaluated and prioritized (scored) from two perspectives:
importance to stakeholders and importance to Ryobi.

STEP 3
Confirmation ofvalidity

Our sales and procurement staff inquired with our business partners about their expectations andrequests for our company, and we then used their opinions to review and reassess our materiality
matrix (as prioritized in STEP 2), and confirm the validity of its content.

STEP 4
Verification anddecision

Finally, in the meeting of the Corporate Operating Committees, which was attended by ourmanagement and auditors, based on the prioritization made in the previous step, we discussed anddecided on the materiality issues that Ryobi should address, guided by our corporate philosophy
and corporate strengths.

Ryobi Integrated Report 2023

26

品名

2023̲統合報告書

P29-30

日時

6/15

5校

作業者

井上

Value creation story

Medium-term objectives and our initiatives
In considering our medium-term measures from 2022, Ryobi established "Lightening the load worldwide" as the theme
Materialityof the measures to represent our common sentiment across all departments and throughout the company.

Our approach

Related SDGs

This slogan expresses our desire to reduce the burden of the various issues that society faces.

Medium-term objectives●

Supporting weight reductionand electrification of
automobiles●

Expanding sales of lightweight parts (body andchassis) and electric car parts (die castings)[p. 31-34]●

Responding to climatechange●Reducing CO2 emissions (company-wide)[p. 43-44]●

Reducing the environmental
impact●Promoting the reduction and recycling of industrial
waste (company-wide) [p. 42]●

Providing high-quality
products●●

Building an optimal supply
chain

Further developing and implementing a supply
structure capable of meeting the needs ofcustomers worldwide (company-wide) [p. 19-20]●

Maintaining and improving good relationships withbusiness partners (company-wide) [p. 46]●

Establishing a consistent supply structure(company-wide)●

Expanding sales of door closer products with highadded value that support barrier-free and touchlessaccess (builders' hardware) [p. 35-36]●

Supporting customers' smart factory conversion(printing equipment) [p. 37-38]●

Promoting health and safety in the workplace aswell as mental and physical health (company-wide)[p. 45-46]●

Promoting diversity (company-wide) [p. 47]
Enhancing education and training programs(company-wide) [p. 48]

Lightening the load worldwide●

Promoting automation andreducing human labor●

Improving production
efficiency

Lightening vehicle weight
Harnessing the properties of aluminum and die casting technologies●

Creating a comfortable work
environment

Doors that open and close safely and quietly with a light touch●

Respect for human rights
Human resource
development●

Builders’ hardware that turns doors into universally accessible portals, not●barriers
Lightening the workload for printing factories
Multi-functional printing equipment that supports customers’ switch to smart
factories●

Improving business
operations through the use ofdigital technology●

Improving labor productivity●

Strengthening corporate
governance●●DX working group activities (company-wide)
Automating appearance inspections by using
image processing and AI technology (die castings)

Lightening the impact on the environment
Doing our part in the global effort toward carbon neutrality and a circular
economyLightening workstyles
A variety of systems to support employees on their career paths

Promoting compliance
Promoting risk management● Improving information
disclosure●●

Increasing transparent governance (company-wide)[p. 49-50]●

Enhancing disclosure of ESG-related information(company-wide)●

Ensuring information security (company-wide)[p. 52]●*Pages that contains more details are indicated by brackets [ ].

27

Ryobi Integrated Report 2023

Ryobi Integrated Report 2023

28

品名

2023̲統合報告書

P29-30

日時

6/22

9校-K 作業者

井上

Value creation story

Medium-term objectives and our initiatives

TCFD-related measures

Risks
Type

As people are becoming more aware of increasing climate change and natural disasters being urgent global issues, the importance of corporate actions to create a sustainable society to resolve climate change issues is growing by capitalizing on the opportunity of the adoption of
the Paris Agreement by the United Nations.
Ryobi has established "Lightening the load worldwide" for our medium-term objectives to express our desire to reduce the burden of thevarious issues that society faces as we implement various measures such as contributing to reducing the weight of automobiles by applying
our die cast technologies in order to achieve carbon neutrality and a circular economy. Additionally, we are utilizing the framework of recommendations of the TCFD (Task Force on Climate-related Financial Disclosures)for our climate-related financial disclosures. We have taken actions to realize theidentified opportunities and perform risk management according to the TCFD
recommendations as we pursue the goals of contributing to achieving carbon
neutrality and the sustainable development of our company.

Cause

Policies andregulations

Transition
risks

Supervise/Advise

2 °C and 1.5 °C scenarios: Climate change measures
beyond those currently enacted are implemented andthe impacts of transition risk become apparent.

President and CEO
Ryobi Risk
Management
Committee
ReportCooperate

Instruct

ReportInstruct

Each Division andGroup Companies
Risk Management

Opportunity
Management

Small

Increased transportation costs due to introduction of carbon tax

Medium Small

Decreasing transportation costs by improving efficiency such as selecting production facilities
appropriate to demand and improving packaging yield rate
Expanding sales of lightweight parts (body and chassis) and electric car parts: Set targets and shift
product composition to obtain a 41% sales composition ratio of lightweight parts (body andchassis) and electric car parts as strategic parts by 2027.

Decreased sales of die cast products because of decreased
aluminum demand due to change to low carbon materials (plastic,
low-carbon steel, bio-materials)

Large

Large

Research and development of environmentally friendly products

Drastic price increases and increased procurement costs due toincreased demand of raw materials——- Selecting suppliers appropriate to demand and performing risk management in relation to
procurement of raw materials- Weight reduction and materials replacement during product design, improving materials recycling
rate, reduction in raw materials used by decreasing product defect rate

Decreased printing equipment business sales due to the accelerationof digitalization caused by drastic price increases of printing materials
and reduced energy consumption

Medium Medium with other companies

Acute

Decreased sales because of supply chain disruptions and reduced
productivity of production facilities due to disasters caused byabnormal weather (typhoons, flooding, heavy rain, etc.)

Medium Medium - Improving business continuity plans (BCPs)

Chronic

Increased energy costs because of increased use of electricity due torising temperatures

Medium Medium Mainly by countermeasures for "Increased energy costs due to introduction of carbon tax"

Automation of printers, labor savings, and shift to smart factories through equipment collaboration- Performing flood risk analysis and monitoring at all production facilities, establishing flood control
plans and manuals, and carrying out flooding drills- Strengthening supply chains by decentralizing and diversifying suppliers

Cause

Financial Impacts

Opportunities

Products andservices

Impact Severity*
1.5, 2 °C 4 °C

Countermeasures

Medium Small

Implementing use of renewable energy (such as solar and hydroelectric equipment) in factories- Increased sales of die cast products due to increased demand of
ZEV and low carbon vehicles (batteries and lightweight parts) andongoing replacement of materials to sustainable aluminum die
castings- Increased sales of die cast products because of the expansion ofdiversified needs for parts through multi-material connecting
technology (i.e. use of aluminum and other lightweight materials)

Large

Large

Strengthening product development towards increasing sales of lightweight parts (body andchassis) and electric car parts

Increased sales of electric automatic door controllers due to increased
demand for highly airtight buildings

Small

Small

Strengthening marketing and product development towards increasing sales of electric automaticdoor controllers

Increased demand for digital printers and accessories business fromthe accelerating transition to digital printing

Medium Medium other companies

Increased sales of die cast products by incorporating needs for large
integrated aluminum products

Responding to digitalization through product development using the strengths of collaboration with——

Accumulation of technologies for lower casting pressure and downsizing casting machines fororders of integrated aluminum products* Medium-term impacts estimated for 2030

Risk management

Main Reference Scenarios
PhysicalRepresentative Concentration Pathway (RCP 6.0, 8.5), IPCC*1

Transition

Stated Policies Scenario (STEPS), IEA*2

PhysicalRepresentative Concentration Pathway (RCP 1.9, 2.6), IPCC*1

Transition

Sustainable Development Scenario (SDS), IEA*2Net Zero Emissions by 2050 Scenario (NZE), IEA*2

The table on the next page shows the important short, medium and long-term climate-related risks and opportunities identified by Ryobi, andthe medium-term impacts and corresponding strategic responses in the future.

Ryobi Integrated Report 2023

Large

Reduced costs to introduce renewable energy in production facilities
Energy sources due to decreasing prices of renewable energy equipment and like

Corporate
OperatingCommittees*1: IPCC: Intergovernmental Panel on Climate Change*2: IEA: International Energy Agency

29

Increased energy costs due to introduction of carbon tax

Opportunities
Type

In accordance with the framework advocated by the TCFD, we identified the risks and opportunities related to climate change among our die
castings, builders' hardware, and printing equipment businesses. In order to analyze these risks and opportunities, we have assumed a 2 °C
scenario and 1.5 °C scenario to make transitional impacts apparent, and a 4 °C scenario to make physical impacts apparent, and thenperformed corresponding scenario analysis.

4 °C scenario: No climate change measures beyond
those currently enacted are implemented and theimpacts of physical risks become apparent.

Small* Medium-term impacts estimated for 2030

ReportStrategy

Set Scenarios and Social Aspects

Large

Large

MarketBoard of Directors

Increased raw materials costs due to introduction of carbon tax

Countermeasures
Weight reduction and materials replacement during product design, improving materials recycling
rate, reduction in raw materials used by decreasing product defect rate
- Implementing energy conservation measures such as improving combustion efficiency andtransitioning to non-fossil fuels- Production energy reduction by making smaller die cast products, improving production efficiency andprocesses by using digital technology, improving production technology, and selecting optimal materials- Implementing use of renewable energy (such as solar and hydroelectric equipment) in factories- Introduction of internal carbon pricing and energy efficiency evaluation when determining capital
expenditures

Large

Technology

Physicalrisks

Impact Severity*
1.5, 2 °C 4 °C

Policies and regulations Decreased sales of die cast products for ICE (engine blocks,
Technology
transmission cases, etc.) due to transition to ZEV and low carbon
vehiclesMarketGovernance
Under the supervision of our Board of Directors, the Ryobi Risk Management
Committee performs risk management related to climate change while the
Corporate Operating Committees are tasked with opportunity management
by establishing management strategy and managing progress.
The Ryobi Risk Management Committee, chaired by the President and CEO,has been established in accordance with our risk management regulations inorder to supervise and manage risk. The Committee performs tasks such as
evaluating and managing risk related to climate change, planning responses,
and monitoring the progress of implemented measures. It gives an annual
report regarding risks and response status, including climate change, to theBoard of Directors, and is creating a system where climate-change related
risk and similar issues are being integrated into the management according
to the supervision and advice of the Board.
The Corporate Operating Committees meet once a month or more with the
President and CEO serving as the chair of all meetings. Among these,management strategy planning meetings are held once or more a year andmanagement strategy progress meetings are held once or more a quarter,
both with the participation of members of the Board of Directors, at whichclimate-change issues are considered as an important element in thecomprehensive discussions and decisions made in these meetings.

Financial Impacts

Guided by our basic risk management policy, the Ryobi Risk Management Committee identifies major risks, including climate-related and medium
to long-term risks, that require the involvement of our management, presents response policies, and instructs the applicable departments andgroup companies to take appropriate measures. A review of risk identification and evaluation is performed once a year across the entire group forthe corresponding risks and a report made to this Committee. If any of the identified major risks poses a critical situation that requires urgent
action, our risk management framework, headed by the crisis task force, is mobilized in accordance with crisis management regulations.

Metrics and targets
1. Metrics for evaluating risks related to carbon tax
We are utilizing the "Scope 1 +2 Emissions" as metrics in order toevaluate the risks and opportunities related to carbon tax
introduction, identified as a climate-related risk. One of Ryobi'smateriality issues is addressing climate change, and the company
aims to achieve carbon neutrality by 2050.
■ CO2 reduction targets and results for 2022
Ryobi has implemented various energy conservation measures to reduce
CO2 emissions as we aim to achieve carbon neutrality by 2050 bymoving forward with our implementation of energy-saving equipment
and the use of renewable energy (solar power, hydroelectric power, etc.).
- Long-term target: Achieve carbon neutrality by 2050
- Medium-term target: Reduce CO2 emissions to at least 47% of
FY2018 levels by 2030 (both in Japan and overseas).
- Results for the year ended December 31, 2022: 19.0% reduction

2. Metrics for evaluating risks and opportunities related
to transitioning to ZEV and low-carbon vehicles
We are utilizing the "Sales composition ratios of lightweight parts(body and chassis) and electric car parts" as metrics in order toevaluate risks and opportunities related to the transition to ZEV andlow-carbon vehicles, identified as climate related risks. Note that
consolidated net sales of our die castings business are 86.5% outof total sales (fiscal year ended December 31, 2022), making it anessential business segment for Ryobi.
■ Target for sales composition ratio of lightweight parts (bodyand chassis) and electric car parts and results for 2022
- Target for the fiscal year ending December 31, 2027: 41%- Results for the fiscal year ended December 31, 2022: 15.4%

Ryobi Integrated Report 2023

30

品名

2023̲統合報告書

P31-32

日時

6/15

9校

作業者

井上

Value creation story

Ryobi's challenge
Business environment awareness

Die Castings Business
Lightening vehicle weight

Become a world-renowned
global supplier in themobility industry with ourcore of die castings business

Tatsuyoshi Mochizuki
Director and Corporate Officer
In charge of Die Castings Business

Domestic/Overseas sales ratio and sales ratio byproduct (Fiscal year ended December 31, 2022)

Sales composition ratio

Die Castings Business

86.5%(215.7 billion yen)

Consolidated net
sales for fiscal year
ended December 31,
2022

Domestic/Overseas
sales ratio

249.5

billion yen

Domestic

43%

Overseas

Engine parts

15%

Body andchassis parts

5%

53%

Sales in 2022 increased 27% from the previous year to215.7 billion yen, due to a slight increase in production
output (weight), shifting the increases in the cost of raw
materials (aluminum) to the selling price, and an increasein yen-equivalent sales of overseas subsidiaries due tothe effects of the weak yen. Operating income increased
due to increased revenues even with various negative
factors such as the drastic increase in energy prices.
In 2023, we expect the impact of the shortage ofsemiconductors and similar issues on automobile
production to recover moderately, and forecast net salesof 231.7 billion yen, up 7% from the previous year, andan operating income of 6.5 billion yen for a 24% increaseover the previous year.

215.7
169.9

Overseas

18%

Domestic

2021

2022

2023
Forecast

97.3

BEV
2050
73%

40

Internal
Combustion
Engine20

0
2015

HEV＆PHV

2025

2035

2045 2050(Year)*Major countries/regions: Europe, Japan, U.S., China, India
Our forecast as of October 2022
*FCV: Fuel cell vehicle BEV: Battery electric vehicle
HEV: Hybrid electric vehicle PHV: Plug-in hybrid vehicle●

Our global production structure●

Access to a variety of production methods●

Our R&D department capable of developing new production methods and production technologies●

Access to a great number of large casting machines●

Close collaboration with customers enabling us to proactively make technical suggestions

6.5

We will increase the composition ratio of strategic product sales such as body and chassis parts and electric car parts to
41% in FY2027 (from 15.4% in FY2022) by expanding the ratio of such parts in new orders.
● Our high-vacuum die casting method and GD squeeze casting (p. 18) will lead to further expansion of orders for lightweightand electric car parts.

-1.4
2021

Weight of die castings used by part in major countries
2022

2023
Forecast

Body and chassis parts

Transmission parts Engine parts(Millions 6
of tons)

Composition ratio of sales for mass-produced productsElectric car parts

Body and chassis parts, electric car parts

Other

Other

(Billions of yen)

Total number of cars in major countries

300

5
Body and chassis parts

3

Capital expenditures(Unit: billions of yen)Overseas11.0

Overseas

8.2

Domestic

4.3

2021

Ryobi Integrated Report 2023

2035
54%

Our vertically integrated system that covers all operations from product development, prototyping, die design, and fabrication

4

31

60

●

5.2

Capital expenditures are being used for new product support, andmaintenance and upgrading of existing equipment both in Japan and overseas.
Overseas capital expenditures are especially being directed to the U.S. due tothe expected growth for body and chassis parts, and electric car parts.

FCV(Unit: billions of yen)

134.4

Domestic

Capital expenditures (2021 to 2023)

Total number of cars in major countries

80

Our initiatives for weight reduction and electrification of automobiles

Domestic

93.0

HEV＆PHV Internal Combustion Engine

Overseas

122.7

86.8

Other

Operating income (loss)

231.7

Overseas

83.1

FCV BEV

to casting, machining, and assembly

9%(Unit: billions of yen)100

Our strengths●

Net sales(1 million/year)

57%

Electric
car parts

Financial results for 2022 andforecast for 2023

The automotive industry, Ryobi's main customer base, is said to beundergoing a once-in-a-century transformation. The development of
CASE (Connected, Autonomous, Shared, and Electric) needs andestablishment of CO2 emission-reducing fuel efficiency regulations
mean that the demand for Ryobi's current mainstay products, such asengine blocks and transmission cases, is expected to decline.
At the same time, we believe that the range of application of aluminum
die castings, such as body and chassis parts, will continue to grow, due
to the expected increased demand for electric car parts such as battery
cases and the shift to lightweight parts because of the continuing
electrification of automobiles and increase in the number of electricvehicles (FCV, BEV, PHV, and HEV) among worldwide automobile sales.
Ryobi is predicting that battery electric vehicles (BEV) will account for
54% of new vehicle sales in major countries by 2035 and that this will
increase to 73% by 2050.

Transmission parts

Sales ratio
by product

Automobile sales by power unit in major countries

Overseas

7.8200Transmission
parts

2

Domestic

2022

2023
Forecast

6.5

6.4

100

0

92.8%

84.6%

76%

67%

Other

1

2015

Domestic

Electric car parts

7.2%

Engine parts
2025

2035

2045

2050
(Year)

15.4%

2021

*Major countries/regions: Europe, Japan, U.S., China, India Our forecast as of October 2022

2022

24%

33%

2023
Forecast

2024
Forecast

59%

41%
2027
Forecast

Ryobi Integrated Report 2023

32

品名

2023̲統合報告書

P33-34

日時

6/21

8校

作業者

井上

Value creation story

Ryobi's challenge

Die Castings
Business:

Initiatives for weight reduction and electrification of automobiles

Ryobi's aluminum die castings contribute tosolving environmental problems through vehicle
weight reduction and electric vehicle applications.

Steel plate press parts are widely used today as parts with high energy absorption performance in a collision in order to improve the collisionsafety of automobiles. Aluminum die castings, produced using secondary aluminum alloys as the main raw materials, have not conventionallybeen used for parts requiring this ductility due to the properties of the alloys and fabrication methods. Under these circumstances, Ryobi
developed highly ductile alloys, and matched these with optimal high vacuum and heat treatment technology used during casting to developfunctional parts(*) with high energy absorption performance that do not rupture when deformed. We will continue to focus on development toexpand the range and possible applications of die castings in order to satisfy our customers' needs for lighter weight parts.

Before collision

Cross car beam

n
io
ct
re ad
Di f loo

The increased global environmental consciousness and carbon neutrality have resulted in a shift toward electrification and weight reductionin order to improve fuel efficiency in automobiles. Amid these developments, aluminum die castings have attracted attention. Since FCV, BEV,
PHV, and HEV weigh more than conventional gasoline-powered vehicles, there are growing requirements to make cars more lightweight.
Aluminum has a specific gravity of 2.7 g/cm3, which is about one-third of the weight of iron at 7.8 g/cm3. Replacing iron with aluminum die
castings will result in a lighter car body, which in turn leads to lower electric consumption and reduced CO2 emissions. Ryobi's aluminum die
castings contribute to the realization of a sustainable society by reducing automobile weight and expanding its application for electricvehicles.

Challenge to expand the range of application of aluminum die castings

Die cast products by Ryobi contributing to reducing weight and electrification of vehicles

After collision

Roof post
Rear-end
post

n
io
ct
re ad
Di f loo

Shock tower

Shock-absorbingpart(*)

Image of deformation upon collision

E-Axle case
Hinge pillar

Development of electric car parts using connecting technology

Kickdown rail
Rear subframe

E-Axle case

The demand for e-Axles (in which electric power train functions such as drive motors, inverters, and reducers are unitized) is predicted to
expand greatly in the future due to being main parts required for motor-powered vehicles such as electric cars to be able to operate. E-Axle

Battery case

cases, with their complex water-cooled cooling circuits for cooling the motor, are mostly produced using sand and die castings. Even if using

Tunnel top

Front
subframe

aluminum die castings, which provide better productivity than sand castings, for production, there are still issues such as increased labor time
Side member
Knuckleand costs from the increased number of parts
used for securing, such as bolts and O rings, dueExternal welding

to the use of bolts as the most common method
for securing inner and outer parts used to form
coolant

Development of body and chassis parts using analysis technology

connecting

33

Ryobi Integrated Report 2023

and

Ryobi

is

integrating

Internal
weldingdeveloping

technology

forconnecting two-piece parts by using laser
welding.

Ryobi has experience in mass production of body and chassis parts for various customers with over 10 million produced globally,
providing us with extensive expertise and know-how gained from all our production activities over the years. Combining analysis
technology, such as solidification and molten metal flow analysis, with this extensive expertise enables us to rapidly develop andproduce the required parts including those with complex shapes.
Additionally, we can produce products with stable quality by performing thermal deformation
analysis during casting to predict deformation and manufacture appropriate dies.
Door frame hinge
We have recently developed aluminum die casting door frame hinges. Although steel plate
partpress parts are generally used for door frame hinges due to the high rigidity required andbecause the internal/external pressure difference increases when driving at high speeds,
using die casting to form complex shapes in one piece increases rigidity beyond thatprovided when simply assembling and connecting steel plate press parts together.
We will continue to provide stable-quality body and chassis parts to meet the lightweightneeds of our customers.

channels.

Althoughitwasclaimedthat

conventional die casting cannot be usedbecause gas emitted from melted base metal
during welding causes internal defects, thefurtherdevelopment

of

laser

Inner

Outer

Cooling circuit

Cooling circuit formed by connecting two pieces

connecting
1200 mmtechnology has led to the creation of a method inwhich the internal gas is not released, thereby
solidly establishing connecting technology of die
cast parts by use of laser welding.
As on-board battery capacity is continuing to1800 mmincrease in order to extend the cruising range ofelectric vehicles, the use of laser welding
connecting technology will enable the production

Example of multiple pieces connect by weldingof even larger battery cases.

Ryobi Integrated Report 2023

34

品名

2023̲統合報告書

P35-36

日時

6/15

8校

作業者

井上

Value creation story

Ryobi's challenge
Our strengths

Builders' Hardware BusinessHigh market share in the domestic door closer market
Ability to closely respond to customer needs and develop
products and services to match these needs● Factory automation and reduction of human labor●●

Doors that open and close safely and quietly with a light touch

Provide more convenience while
addressing the needs of society in ourrole as market leader in the door
closer industry

Taichi Shimizu

Product lineup not only providing comfort and functionality but
also contributing to the overall design of spaces where used
● Consistent supply capabilities using domestic andoverseas production facilities●

Our efforts to provide products that support safe and comfortable door use

Corporate Officer
Divisional General Manager
of Builders' Hardware Division

Although we expect that the domestic market for builders'Approx. dimensions:
W330 x D40

hardware will shrink moderately, we have been increasing

Domestic/Overseas sales ratio and sales ratio byproduct (Fiscal year ended December 31, 2022)

Sales composition ratio
Builders' Hardware
Business

4.1%(10.1 billion yen)

Consolidated net
sales for fiscal year
ended December 31,
2022

Domestic/Overseas
sales ratio

249.5

billion yen

Domestic

86%

Overseas

14%

Installed productour market share through our ability to closely respond to
customer needs, and develop products and services to

GC-6V concealed door closer

match these needs. Some examples of our recent
development efforts are the "GC-6V" concealed door closer
and "GP-18" pivot hinge of the GEOPRO Series. Concealed
door closers are completely embedded in the door.
Development of GC-6V succeeded in creating a concealed

Approx. dimensions:
W120 x D50

door closer that maintains a stable closing speed andSales ratio
by product

Door closers

73%

Other architectural
hardware27%

strong closing force in a compact size. It can be installed tovarious types of doors from thin doors to large doors
weighing 180 kg. The excellently designed GP-18 pivot

Approx. dimensions:
W200 x D40

hinge can readily support large doors. As the number offacilities equipped with large doors is expected to increaseamid the growing projects to redevelop areas around train

Financial results for 2022 andforecast for 2023
Sales in 2022 increased 6% from the previous year to
10.1 billion yen, due to an increase in both domestic andinternational sales. Despite our efforts to reduce costs

Net sales

9.6
Overseas

1.3(Unit: billions of yen)

10.1
Overseas

1.4

Chinese yuan.

(Unit: billions of yen)

11.0

93
8.3

Domestic

2021

2022

8.7

GP-18 pivot hingeon expanding use of our flagship GEOPRO Series bypenetration into overseas markets by establishing new

1.7

sales agents to break into these regions. Additionally, weare developing high value-added products that match our

0.4
Domestic
Domestic

stations and reconstruct office buildings, Ryobi is focusedenhancing its product lineup. We are aiming for brandOverseas

and expenses, operating income decreased because ofhigher procurement costs due to the appreciation of the

Operating income

Domestic

0.2

9.3

0.3

customers' needs to strengthen our sales base in overseas
markets.

Approx. dimensions:
W304 x D50

Door closers for overseas markets

In 2023, we expect sales to increase both domesticallyand internationally, and forecast an 8% year-on-yearincrease in sales to 11.0 billion yen, and operating

2023
Forecast

2021

2022

2023
Forecast

income to increase 32% year-on-year to 0.3 billion yen.

Business environment awarenessBecause of the long-term decline in the construction of new housing in Japan, we expect that the domestic market for builders'
hardware will shrink moderately. However, as we enter an age in which rebuilding and remodeling are necessary due to the aging of
numerous homes and buildings, and similar reasons, we expect demand within the remodeling and renovation markets will remain
stable. Additionally, declining birthrates and aging populations mean that the demand for barrier-free facilities will likely increase. This
trend encourages us to further develop and offer a diverse range of products that support safe and comfortable door use, and tocontinue to satisfy the demands of the market.

35

Ryobi Integrated Report 2023

Approx. dimensions:
W331 x D78

Exhibit at ARCHITECTURE + CONSTRUCTION MATERIALS 2023
Ryobi had an exhibit at the "ARCHITECTURE + CONSTRUCTION MATERIALS
2023" held from February 28 to March 3, 2023 at the Tokyo Big Sight.
The Ryobi booth spotlighted the convenience and functionality of our RUCAD
electric automatic door controller through demonstrations of opening doors using
other devices that can be linked with the RUCAD such as voice sensors that arecapable of responding to "I'm home" and similar phrases, facial recognition
systems that can identify human faces, and card key systems in which doors arelocked/unlocked by use of a card. There was also a demonstration of door
opening in which sensors installed to a door respond when a cleaning robot is
nearby to open the door. The booth additionally featured exhibits of the RUCAD
concept model being considered for future market introduction and new door
closers built-in equipped with Ryobi's original functions.

Ryobi's booth at ARCHITECTURE +CONSTRUCTION MATERIALS 2023

Ryobi Integrated Report 2023

36

品名

2023̲統合報告書

P37-38

日時

6/21

9校

作業者

井上

Value creation story

Ryobi's challenge
Our strengths

Printing Equipment BusinessBroad domestic customer base
Sales network covering more than 170 countries● Wide variety of products from small to large format to meet ourcustomers' needs

Lightening the workload for printing factories

Contribute to the creation of acolorful and prosperous society byproviding products and services
that meet customer needs

Printing Equipment
Business

9.4%(23.4 billion yen)

Consolidated net
sales for fiscal year
ended December 31,
2022

RYOBI MHI Graphic Technology Ltd.
President

Domestic/Overseas
sales ratio

249.5

billion yen

Financial results for 2022 andforecast for 2023
Sales in 2022 increased 27% from the previous year to23.4 billion yen, due to an increase in both domestic andinternational sales. Operating income increased due toincreased revenues even with various negative factors
such as the increase in raw materials prices.
In 2023, we expect sales to remain level both domesticallyand internationally, and forecast a 0.5% year-on-year
decrease in sales to 23.3 billion yen, and operating income
to decrease 54% year-on-year to 0.7 billion yen due tofactors such as the drastic increase in raw materials costs.

Sales ratio
by product

Domestic

54%

Overseas

Sheet-fed offset printing presses

Net sales(Unit: billions of yen)

74%

Services, other

26%

RMGT smart factory solution concept
We visualize andoptimize printing
companies' production
processes by use of IoT
and DX technology.

23.4

23.3

Overseas

Overseas

10.7

10.6

Automation andlabor-savings

Visualization and analysis ofprinting conditions
Improving inter-process linkage

Automation of printing processes andreduced workloads
Automation of printing pre andpost-processes and reduced workloads

We perform thoroughpreventive maintenanceand can perform recovery
support rapidly andremotely in case of
accidents and breakdowns.

We are creating a comfortable
work environment and reducing
the burden on the environment
through printing materials andequipment that are human andenvironmentally friendly.

MaintenanceOverseas

10.0

Domestic

8.4

2021

Domestic

Domestic

2022

2023
Forecast

12.7

12.7

1.5

0.7

We reduce work load andimprove productivity with
devices to assist
operators in allprocesses.

Inter-process
linkage(Unit: billions of yen)

18.4

High development capability to meet customer needs
Strong collaboration with peripheral equipment
manufacturers

Ryobi helps customers create workflows that connect a network of devices and processes necessary for the production of
printed materials, from front end to back end, while visualizing and optimizing the production process. In this way, we help
convert printing companies into smart factories. We also support the implementation of automated guided vehicles (AGV) to
reduce labor-intensive paper transport.

Operating income (loss)

Preventive maintenance
Remote support system

Environment

Reducing the environmental impact
Improving the work environment
Supporting to improve the operating environment

-0.4
2021

2022

2023
Forecast

The transition to digital media has decreased the printing of publications such as magazines and books. Although the commercial
printing business, such as fliers, advertising mail, and pamphlets, which are readily impacted by business sentiment, has been
improving since the decline suffered during the COVID-19 pandemic thanks to the easing of restrictions, we expect that digitalization
will continue to cause a long-term decline in the field. However, the package printing market for product boxes and similar items
remains strong. This field consists of a large amount of high value-added printing that requires presses and equipment with special
specifications. We have also seen a recent trend in the printing market toward high-mix, small-lot production with short delivery times,
placing a heavy burden on printing operators. Amid a decline in the number of skilled workers that makes it increasingly difficult tomaintain printing quality and productivity, there is growing demand not only for automated and labor-saving printing presses but also
their application to all areas of printing company plants.

Ryobi Integrated Report 2023●

46%

Business environment awareness

37

●

●

Our efforts in providing products and services that meet customer needs

Katsushi Hirokawa

Domestic/Overseas sales ratio and sales ratio byproduct (Fiscal year ended December 31, 2022)

Sales composition ratio●

Exhibit at International Graphic Arts Show (IGAS) 2022
Ryobi had an exhibit at the International Graphic Arts Show (IGAS)
2022 held from November 24 to 28, 2022 at the Tokyo Big Sight.
Ryobi exhibited our RMGT 970 model, an A1-plus size offset
printing press that can be used for package printing. The Ryobi
booth also featured demonstrations about applying automation to
all printing processes, including pre and post processes, toexpress the concept of a smart factory in which printing presses,
and equipment used in pre and post-printing processes areconnected to a network and automated guided vehicles in orderto optimize all production processes of a printing plant and reduce
the environmental impact and the burden on operators.

Demonstration of the RMGT 970 model

Ryobi Integrated Report 2023

38

品名

2023̲統合報告書

P39-40

日時

6/1

1校-K 作業者

井上

ESG (Environmental, Social, and Governance)
Environmental initiatives ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・p. 41-42
Achieving carbon neutrality ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・p. 43-44
Social initiatives ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・p. 45-48
Governance ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・p. 49-52

39

Ryobi Integrated Report 2023

ENVIRONMENTSOCIAL
GOVERNANCE
Ryobi Integrated Report 2023

40

品名

2023̲統合報告書

P41-42

日時

6/15

7校

作業者

井上

ESG (Environmental, Social, and Governance)

Environmental initiatives

Promoting environmental protection

Protection of water resources

Basic approachAs efforts to protect the global environment increasingly gain attention and support, we at Ryobi consider it one of ourcore business duties to reduce the environmental impact of our operations and protect the environment.
Guided by the Ryobi Group Environmental Policy, the Environmental Preservation Committees at each of our groupcompanies and locations set targets and implement initiatives to conserve energy and resources, reduce waste, lower
greenhouse gas emissions, and more. Ryobi has established an environmental management system that we maintainand operate, and we have an ISO 14001 certification as well.

The Ryobi Group Environmental Policy

Chaired by our President and CEO, the Ryobi
Environmental Preservation Committee aims to
reduce the environmental impact of our businessactivities and to contribute to the development oflocal communities. The committee is leading efforts
to conserve energy and resources, reduce waste,
lower greenhouse gas emissions, and more.

Chairperson
President and CEO, Ryobi Limited

ISO 14001 governing body

Head office
departments

Secretariat

Quality assurance andresearch & development
departments

Production
Sales
departments departments

Groupcompanies

CO2 emissions per unit of
raw material production

Production using environmentally friendly materials
10

9.24

(Unit: t-CO2/tonne)

8
6
4
2
0

Ryobi Integrated Report 2023

1,113

2020

2021

1,241

1,000
500
0

2022

Promotion of industrial waste reduction and recycling
Ryobi has set a target to maintain a waste recycling
rate of 99% or more. We are working to reduce theamount of waste sent to landfills by utilizing acomprehensive waste separation system. In FY2022,
the amount of hazardous waste generated by Ryobi
in Japan was 17.8 tonnes for a waste recycling rate of
99.5%.

Hazardous and non-recyclable waste generated,
and waste recycled (Japan)(Unit: tonnes)(Unit: tonnes)

200

20,00015,605.1
150

12,260.3
89.7

100
50

15,000

109.9
66.9

35.6

44.0

14,613.7

5,000

17.8

0

2020
2021
Hazardous waste generated (left axis)
Non-recyclable waste generated (left axis)
Waste recycled (right axis)

10,0002022

0Prevention of air pollution
Our measures to reduce emissions of hazardous
substances into the atmosphere include switchingfrom heavy fuel oil to LNG and other fuels. In FY2022,
our emissions of volatile organic compounds (VOCs)
in Japan totaled 5.1 tonnes.
Concentrations of nitrogen oxides (NOx) and sulfur
oxides (SOx) are measured periodically in accordancewith the Air Pollution Control Law, but total annual
amounts are not calculated.

VOC emission (Japan)(Unit: tonnes)

10
8
6

4.7

5.8

5.1

4
2
0

2020

2021

2022

Measures to preserve biodiversity

In January 2022, Ryobi announced its commitment to achieve carbon neutrality by 2050. See p. 43-44 for more
information on our measures to achieve carbon neutrality.

41

1,152

*This data was compiled in accordance with the PRTR Law, and the data period
is from April to March.

CO2 emission reductions

Secondary aluminum alloys, the main raw material of aluminum die
castings, can be produced with only 3% of the CO2 emissions used in
the production of new aluminum ingots made by extracting alumina
from bauxite ore and performing electrolytic refining on this alumina.
97.8% of the raw materials used by Ryobi to create aluminum die
castings consist of secondary aluminum alloys.

(Unit: thousand m3)

1,500

Waste recycled

Ryobi Environmental Preservation Committee

Organization chart

Water consumption (Japan)

Hazardous and non-recyclable
waste generated

The Ryobi Group will, through the initiatives listed below, strive to avoid and mitigate various risks associated with theoperating environment and work to reduce the environmental impact of its business activities, thereby helping realize
a sustainable society.
1. Identify and counter risks arising from changes in the operating environment.
2. Endeavor to reduce environmental footprints associated with each stage of a product's life cycle and prevent
environmental pollution attributable to such life cycle. Specifically, the Group will:(1) Work to reduce CO2 emissions.
(2) Conserve energy and resources.
(3) Reduce or recycle industrial waste.
(4) Enforce rigorous measures to prevent environmental pollution.
(5) Reduce environmental footprints associated with procured goods.
(6) Furnish proposals on and otherwise promote environmentally friendly products and services.
3. Comply with environmental laws, regulations, ordinances, and agreements as well as relevant requests frominterested parties.
4. Strive to ensure that the Group’s entire workforce is highly conscious of the need for concerted efforts to improvethe environment, to this end providing all Group members with robust education on the subject and otherwise
helping them raise their environmental awareness.
5. Strive to preserve biodiversity and otherwise give back to regional communities through environmental protection efforts.
6. Constantly endeavor to improve the environmental management system to achieve the goals of initiatives listed
above by formulating environmental targets, executing measures to achieve such targets, and implementing
revisions based on the results of such measures.
7. Ensure that this environmental policy is understood by all Group members and publicly disclosed to external stakeholders.

Ryobi has set a target of reducing water consumption
by 1% in comparison with the previous year. We
actively work to reduce the company's water intake
through optimal water management. This means we
use recycled industrial water and respond quickly to
any water leaks by checking flow meters. We are also
performing proper management of wastewater
treatment equipment and wastewater quality, as well
as taking measures to prevent water pollution ofdischarge destinations such as rivers.

0.31
New aluminum
ingotsSecondaryaluminum alloys

Plastic garbage flowing into ocean areas via rivers isseverely impacting ecosystems. Ryobi is carrying out
activities such as cleaning up rivers and beaches near
our offices as part of our efforts to actively engage withbiodiversity starting with areas close to our company.
Additionally, Ryobi employees are visiting nearby
nursery schools to hold workshops teaching children
about the importance of nature and providing themwith opportunities to get close to nature throughfirst-hand experience of releasing young fishes intorivers.

River clean-up activity
Ryobi Integrated Report 2023

42

品名

2023̲統合報告書

P43-44

日時

6/21

作業者

8校

井上

ESG (Environmental, Social, and Governance)

Environmental initiatives

Achieving carbon neutrality

One of Ryobi's materiality issues is addressing
climate change, and the company aims to

In accordance with the framework advocated by the TCFD, Ryobi has identified the risks and opportunities related toclimate change among our die castings, builders' hardware, and printing equipment businesses. In order to reduce
financial impacts identified as risks, we have set targets for CO2 reduction and are establishing a road map to achievethem.
Ryobi Die Casting (Thailand) Co., Ltd. installed a roof-mounted solar power system at their die castings production
plant and have started full-scale operation of the system. It is expected to reduce CO2 by approximately 1,500 tonnes
annually.
Ryobi is also replacing the engine-type forklifts used to transport melted secondary aluminum alloys and products withelectric ones.
Additionally, Ryobi Limited and domestic group companies have independently set CO2 prices internally and started
introduction of an internal carbon pricing system to serve as criteria for investment decisions. Introduction of this internalcarbon pricing system serves to promote renewed individual awareness of each employee, as we are also introducing
equipment contributing to reduced energy use and recyclable energy devices such as solar power generators.

achieve carbon neutrality by 2050.
CO2 emissions reduction target●

Achieve carbon neutrality by 2050.

●

Reduce CO2 emissions to at least 47% of FY2018 levels by 2030*

Initiatives(both in Japan and overseas).

Internal carbon pricing system*CO2 reductions represent the absolute emissions for Scope 1 and Scope 2.

CO2 emission reduction target for 2050
Traditional reduction image

47% reduction

Operation starts

From January 2023

Applicable scope

Capital expenditures expected to reduce
CO2 emissions

Operation method

The amount of CO2 reduced is converted
to a cost by applying the internal carbon
price and then used as one of thestandards for deciding investment.

Solar panels installed at Ryobi Die Casting(Thailand) Co., Ltd.

*Scope 1 + Scope 2

Hydroelectric power generation by Ikuno Co.
2018

2050

2030

425 thousand t-CO2

224 thousand t-CO2

Results

Targets

Actual CO2 emissions in 2018, and from 2020 to 2022
2018

2020

(Unit: t-CO2)

2021

2022

Scope 1

143,625

108,292

114,865

117,834

Scope 2281,841

233,195

230,523

226,588

Scope 1 + 2

425,466

341,487345,388344,422─-19.7%-18.8%-19.0%

Reduction ratecompared to 2018

Ikuno Co., a Ryobi Group company that manufactures secondary aluminum alloys, uses water from the river that runs
near its plant to generate 40 to 50% of its total electricity consumption. This is an example of how clean energy use
contributes to the reduction of our CO2 emissions.

Power-transmission line
Hydraulicsteel pipe

HeadracechannelPlant* From FY2022, the calculation of CO2 emissions in Japan has included that for previous years also,so the calculation method was changed to that of post-adjustment emissions.

CO2 emissions in 2022 were 19.0% less than 2018 for a total of 344 thousand tonnes of CO2. In comparison with 2021,
CO2 emissions decreased while consolidated sales increased.

43

Ryobi Integrated Report 2023

Power plant

Dam

Ryobi Integrated Report 2023

44

品名

2023̲統合報告書

P45-46

日時

6/21

7校

作業者

井上

ESG (Environmental, Social, and Governance)

Social initiatives
At Ryobi, we foster diversity in our human resources, and we strive to create a safe, healthy, dynamic, and comfortableworkplace environment, where all employees can achieve their full potential.
We also make sure that we maintain good relationships with business partners and local communities, and try to
improve them wherever we can.

Promotion of safety and health in the workplace as well as
mental and physical health
Basic approach
Ryobi is continuously developing initiatives to establish and maintain a safety-focused culture. We also work to createa work environment where each and every employee can enjoy good mental and physical health.

Basic policy

SloganWe strive to create a safe and healthy workplace for our
employees. To this end, we conduct various activities tofoster a "safety-focused culture" where everyone puts
safety first, and to improve people's mental andphysical health.
*"Safety-focused culture" is a workplace culture where theorganization and individuals have been cultivated toconsider safety to be the top priority and where theynaturally comply with rules and regulations.

Let's increase our awareness ofdanger and safety together!
Let's strive for mental and physicalhealth together!

Organization chart

General Safety and Health Committee

Ryobi has established a General Safety and HealthCommittee chaired by the President and CEO. The
committee is leading efforts to create a safe,
healthy, dynamic, and comfortable workplace.

Promotion of mental and physical health
In 2018, we announced our Health Declaration based on our corporate philosophy as we believe that measures tomaintain and promote employees' health provide organizational vitality and higher productivity, resulting in improved
business performance and corporate value. Based on this declaration, we are strengthening the system to encourage
employees and their family to maintain and improve mental and physical health, and working to create an environment
where everyone can work with health and vitality.
・ Mental health support
Ryobi's efforts to support mental health include providing various formsof training courses on the subject, encouraging self-care by taking a
stress check, and implementing measures in order to improve workplaceenvironment based on the results of organizational examination.
・ Physical health support
Measures Ryobi has implemented in order to prevent illness and diseasesuch as lifestyle diseases and cancer include encouraging general healthand cancer exams, and providing secondary checkups and healthguidance after general exams. We are also encouraging employees toimprove their lifestyle habits (diet, exercise, sleep, and stopping smoking)in order to maintain and improve their health.
・ Reducing long working hours
Our efforts to create an environment in which employees can work in comfort
include periodic monitoring in each workplace of the number of employees
working long hours, reviewing personnel distribution to make sure it isappropriate, and designating every Friday as a "No Overtime Day".
・ Encouraging employees to use paid leave
Our efforts regarding work/life balance consist of setting annual paid
leave utilization targets, and encouraging the taking of consecutive paid
leave days by combining annual paid leave with major national holidays,
summer break, end-of-year/New Year's holidays, and similar periods.
Health management indicators (KPI)

Chairperson
President and CEO, Ryobi Limited

Targets
Secretariat

Head office
departments

Qualityassurance andresearch &development
departments

Sales
departments

Production
departments

In 2023, Ryobi Limited wasofficially recognized as an
outstanding organization under the
Certified Health and Productivity
Management Outstanding
Organization Recognition Program
implemented by the Ministry of
Economy, Trade and Industry, andthe Japan Health Council. This is
the fourth consecutive year inwhich we received this recognition.

Group
companies

Results for 2020 Results for 2021 Results for 2022

Periodic health exam rate

100%

100%

100%

100%

Rate for re-examination after health exam

85% or more

86.0%

83.5%

86.8%

Stress check rate

99% or more

99.0%

98.6%

98.3%

Overtime hours (monthly average)

20 hours or less13.2 hours

17.2 hours

14.8 hours

Paid leave usage rate

60% or more

51.0%

59.6%

68.7%

Promotion of safety and health in the workplace
In order to eliminate occupational accidents asmuch as possible, Ryobi investigates the amount,details and causes of such occupational accidents
in order to horizontally deploy countermeasuresthroughout the Ryobi Group to serve as recurrence
prevention. We also perform risk assessment toprevent unforeseen occupational accidents, anduse the corresponding results as a basis for
fundamental safety improvement measures, as wellas implementing activities such as health and safety
education by job level, mock simulations, andhazard prediction training in order to improve healthand safety knowledge.

45

Ryobi Integrated Report 2023

Annual lost time incident rate per 1,000 workers

8

4.7
3.5

4

0

Basic approach

6.1

6

2

Maintaining favorable relationships with suppliers

Ryobi Limited
Domestic group companies
Overseas group companies

1.3

1.5

1.5
0.6

2020

2.8
0.0

2021

2022

Building sound and favorable relationships with suppliers is one of action principles that we outline in the Ryobi Codeof Conduct. In March 2022, Ryobi announced a Declaration of Partnership Building and we are refreshing our efforts toensure that our workforce is fully aware of the matter. We
distributed a survey for business transaction optimization to ourbusiness partners in February 2023. We are using their ideas andopinions to make improvements and even further strengthen
cooperation with our suppliers.

Ryobi Integrated Report 2023

46

品名

2023̲統合報告書

P47-48

日時

6/21

8校

作業者

井上

ESG (Environmental, Social, and Governance)

Social initiatives

Promoting diversity, equity, and inclusion

Enhancing education and training programs

Basic approach

Basic approach

As stated in our corporate philosophy, "Value the trust and goodwill of society, and strive to become a strong, dynamic organizationthat reflects the originality and creativity of individual employees". Guided by this approach, we aim to create an environment where
employees with diverse personalities and abilities can fully take advantage of their unique strengths.

Training programs

Through our training programs, Ryobi
Limited hopes to aid employees in refining
their intelligence and polish their mind tohave a wide perspective, and continuously challenge goals with enthusiasm.

Ryobi Limited mainly carries out training by job level and selective training. The objectives oftraining by job level are to improve job performance and recognition in regards to skills and tasks
that are commonly required for each job level from new employee to management personnel.
Selective training consists of providing educational opportunities to highly motivated employees
so that they can play a more active role in their own work and achieve personal growth.

Childcare support
Management
Management skills
development courses
improvement

Basic training

40%
Men

20%
0%

2%

2%

2020

2021

Mid-career level

21%
2022

Young
employee level

Promotion of women's career advancement
Ryobi Limited has set the targets indicated below for the hiring and promotion of women to be attained by 2024 in order tocreate a workplace conducive to the participation of female employees. Corresponding measures we are implementing in
relation to these targets include career path training for female employees, and training to encourage women to revise their
way of thinking about management roles as well as increasing the placement of women in production and technicalworkplaces.
・ The percentage of women among newly hired graduates will be at least 30% every year. (Actual results for 2022: 32%)
・ We will have at least seven women in managerial positions. (End of December 2022: Six persons)・ At least 18% of female employees will be in managerial or supervisory positions. (End of December 2022: 15%)

Training for improving
back-step skills

Basic management
training

Assessment
workshops,
etc.

TWI training
Training for new supervisors
Training for mid-career employees(7th to 10th years)
Training for young employees(3rd to 5th years)
Follow-up training for new employees

3rd year regularmeeting

New employee training ● Legal training: Basic courses for new employees● Safety and health: Safety education and mental health training
Education before entering company

Training to promotewomen's careeradvancement(Management
personnel)

Practical
management training
Management skills
improvement training
Self-confidence andcommunication training

CDP menu
Careerassessment
review, etc.

Training topromotewomen's
careeradvancement(Corresponding
personnel)

Self-development
Language classes

60%

RMS training
BBS training

Global overseas support

Correspondence courses

100%Management skills
improvement
menu

Overseas language classes

100%

Training related to women's
career advancement

Training before overseas assignment (language and cross-cultural adaptation)

100%

CDP

Management personnel:
Language preparation program

80%

Women

Career design training

100%

Training for mid-career employeesChildcare leave usage rate

Management level

In accordance with the revised Child Care and Family Care Leave Act
enacted on October 1, 2022, Ryobi Limited revised our childbirth andchildcare systems to introduce childcare leave at birth for male employees(allows a maximum of four weeks of leave during the eight weeks afterchildbirth). In order to encourage men to take childcare leave, which
remains at a lower level than women, we have been distributing messages
starting from top management personnel to promote understanding of theissue not only for personnel eligible to take such leave but also among theirworkplace supervisors and co-workers. In addition to systemic revisions,
we are also working to create an environment in which employees can feelsecure in their work and daily life while also caring for their children.

Global operations
development for
new employees
menu

TOEIC
Cross-cultural
adaptation training
Languageclasses in Japan

Self-development support
Ryobi Limited actively encourages and supports various ways for employees to develop their abilities so they can challengethemselves in achieving their personal dreams. For example, we provide subsidies for correspondence courses, incentives foracquiring qualifications indicated by the company, and language classes (English and Chinese) taught by native instructors.

Work support for people with disabilities
Ryobi Limited helps people with disabilities* find positions and departments thatmatch their individual abilities, so they can flourish and experience high job
satisfaction. Our new hires include graduates from special needs schools. After
starting their employment, their workplace supervisor works closely together
with a disability counselor to monitor their work conditions and development. We
also hold regular meetings during the first three years of employment to identify
any problems and provide appropriate support that the employee may need inorder to provide them with a sense of fulfillment and purpose in their work. As ofthe end of December 2022, Ryobi Limited achieved an employment rate ofpeople with disabilities of 2.7%, which is above the statutory rate of 2.3%.

Active social contributions

Employment rate of people with disabilities
3%
2%

2.3%

2.5%

Basic approach

2.7%

Aiming to make the world more prosperous for all of society, Ryobi actively engages in social contribution activities.

1%0%

Initiatives for social contributions
2020

2021

2022

* Qualifying persons with disabilities as based on the Act to Facilitate the Employment of Persons with Disabilities

Employment options for senior employees
We offer career design education for employees reaching the retirement age for their position, allowing them to continue
their career in a fulfilling new way. To help these employees choose the next step in their working life, they attend an
information session a year and a half prior to retirement where they are informed about retirement benefits, public pension,
and wage for re-employment.
We have implemented a re-employment plan for employees who have reached the retirement age, offering options forflexible employment ranging from full time to half-day and half-week (3-day), selected to best suit their lifestyle.

Aluminum can collection campaign
Ryobi encourages our employees to bring aluminum cans from home, which we then sell to aluminum recycling companies. The proceeds
are donated to the Ryobi Social Contribution Foundation, a non-profit organization (NPO) that uses them to donate goods to andsubsidize activities of social welfare corporations and similar organizations. In 2022, our donations totaled approximately 870,000 yen.
●

Green Star Award received from the Industrial Estate Authority of Thailand
Ryobi Die Casting (Thailand) Co., Ltd. received the Green Star Award from the Industrial Estate Authority of Thailand (IEAT) for the firsttime in January 2023. This award is based on an evaluation of corporate environmental measures andsocial contribution activities by surveying 20 items such as work environment and wastewater treatment,
and is presented to companies that satisfy the corresponding standards. Activities of Ryobi Die Casting(Thailand) Co., Ltd., such as participation in tree-planting activities and blood donation drives held by the
IEAT, and donations to local elementary schools were evaluated, resulting in the company being one of only
five from among 464 eligible companies to be selected for this award.
●Awards ceremony

47

Ryobi Integrated Report 2023

Ryobi Integrated Report 2023

48

品名

2023̲統合報告書

P49-50

日時

6/27

7校

作業者

井上

ESG (Environmental, Social, and Governance)

GovernanceCorporate governanceCompensation of directors and corporate auditors

Basic approach
At Ryobi, we aim to be a company that grows and develops itself while fulfilling the social responsibilities rooted in our corporate philosophy. We
believe it is vital to engage in corporate activities that make our customers, shareholders, investors, business partners, employees, local communities,
and other stakeholders pleased to be associated with Ryobi. To achieve this, we are working to further improve the efficient and sound managementof our operations. We also strive to make our management more transparent by disclosing accurate corporate information promptly.

Organization chart(a) Bonuses reflecting company-wide profitability indicators (performance-based pay): The amount to be paid is determined based on the following formula. (Calculation method of performance-based pay)
Formula: standard amount of performance-based pay by position (table 1) x profit ratio (table 2)

Our Board of Directors chaired by the President and CEO, serve to make major corporate decisions and supervise the execution of operations,while the corporate operating committees, attended by corporate officers, mainly serve to assess the progress of operations. Both types ofmeetings are held at least once a month. To serve as an advisory body to the Board of Directors, we have also established the Nomination andCompensation Advisory Committee, in which independent outside officers constitute the majority. The Committee reviews both the appointment
and dismissal of directors and corporate officers, as well as succession plans for the CEO and other officers. It reports its findings to the Boardof Directors in a timely manner. It also deliberates on the compensation of directors and corporate auditors. These results are also reported backto the Board of Directors. The Personnel and Organization Committee is responsible for HR matters. These include the assignment anddevelopment of human resources as well as the optimization of organizational functions. At Ryobi, we consider compliance to be the observanceof laws, social norms, internal regulations, business standards, and other rules that govern our corporate activities. We are committed tomaintaining strict compliance and raising awareness of corporate ethics. As a way to further promote compliance, we have established the Ryobi
Compliance Committee, which has set out a Charter of Corporate Behavior and Code of Conduct, etc. to ensure observance of the laws,
fairness, and high ethical standards in our corporate activities. We are committed to further improving our CSR management, and to achieve thisgoal, our Ryobi CSR Promotion Committee and the departments and committees responsible for environmental conservation, social
contribution, compliance, information disclosure, and the like work together across the board to promote CSR initiatives.
General Meeting of Shareholders
Appoint / Dismiss
Nomination and Compensation
Advisory Committee
Personnel andOrganization Committee

Consult
AdviseBoard of Directors

Report(Five Directors threeof whom areoutside directors)

Ryobi CSR Promotion
Committee

ReportRyobi Compliance
Committee
Ryobi Risk
Management Committee

Appoint / Dismiss

Audit

ReportBoard of Corporate
Auditors

Appoint /Supervise

Appoint / Dismiss

The table on the right shows the skills andexpertise of the directors and corporate
auditors of Ryobi Limited. Please note thatthe skills matrix does not list all of each
person's qualifications, but only up to four
items that are particularly relevant.

Position

AmountPresident and CEO

18.2 million yen

Director and Corporate
Executive Officer

9.8 million yen

Director and Corporate Officer

4.9 million yen

Table 2_Profit ratio (*1)
Return on
assets(*2)

Formula used to calculate profit multiplying factor
Less than 50% of
operating profit
target achieved

5% or more
3% or more
but lessthan 5%Less than 3%

No payment

50% or more but less than 100% of
operating profit target achieved

100% or more of operating profit
target achieved

2.1 x percentage of operating profit
target achieved(*3) - 0.55

3.0 x percentage of operating profit
target achieved(*3) - 1.9

1.75 x percentage of operating profit
target achieved(*3) - 0.375

2.5 x percentage of operating profit
target achieved(*3) - 1.5

1.4 x percentage of operating profit
target achieved(*3) - 0.2

2.0 x percentage of operating profit
target achieved(*3) - 1.1*1: The profit ratio is determined by the formula for calculating the return on total assets.
*2: Return on assets = Net income attributable to owners of the parent ÷ consolidated total assets*3: Percentage of operating income target achieved = consolidated operating income ÷ consolidated operating income forecast (as stated in the summary of financial statements for the previous fiscal year) (Consolidated
operating profit for the current fiscal year was 6,969 million yen and consolidated operating income forecast was 5,300 million yen.)*4: Operating income (absolute amount) is used to evaluate profitability, and return on assets (ROA) is used to evaluate the balance between assets and revenues.
Notes(1) The performance-based pay is as stipulated in Article 34, Paragraph 1, Item 3 of the Corporation Tax Act, and is payable to directors who are executive officers as stipulated in the same item. Outside directors andcorporate auditors are not included.
(2) The "indicators on profits of the business year" as stipulated in Article 34, Paragraph 1, Item 3 (a) of the Corporation Tax Act shall be consolidated operating income based on the Annual Securities Report.
(3) The "defined amount" stipulated in Article 34, Paragraph 1, Item 3 (a) (1) of the Corporation Tax Act regarding the maximum amount of performance-based pay to be paid is 420 million yen.

・Determination of directors' compensation
Ryobi Limited, being a company with a board of corporate auditors, has established a Nomination and Compensation Advisory Committee as
an advisory body to the Board of Directors to ensure fairness, objectivity, and transparency for directors' compensation. This committee
deliberates on such compensation and results are reported back to the Board of Directors. The Board of Directors then determines thecompensation based on these results.

Instruct

Corporate Operating Committees

Skills matrix for directors
and corporate auditors

Table 1_Standard amount of performancebased pay by position(b) Bonuses reflecting the degree to which targets have been met for the entire company or for each director's area of responsibility (excluding outside directors):
For each director (excluding outside directors), Ryobi sets performance targets for the entire company or for the director's area of responsibility based mostly on achievement of medium- to long-term goals. The bonuses
are determined according to how many targets are met. We do not give compensation directly linked to medium- to long-term business results or stock compensation such as stock options, but we use these bonuses toprovide incentives to directors (excluding outside directors) to achieve medium- to long-term business results.

Independent
Auditors

ReportCooperate

Business Audit OfficeInstruct

Cooperate

Internal Audit

Knowledge /Experience

Board of Directors
Internal Directors
Akira Urakami

Tatsuyoshi
Mochizuki

Corporate Management○○

Global Business○○

Marketing○

Risk management, Corporate
Governance & Compliance
Qualifications, etc.

○

Standing

Non-Standing

Masahiko
Ikaga

Mami Ito

Takashi Suzuki

Yoichi Arai

○

○

○

○
○

Takashi
Hatagawa

○

○

○

○

Finance & Accounting

Corporate Auditors

Outside Directors
Satoshi Ohoka○

Technology

HR Development

Evaluation of the effectiveness of the Board of Directors

Accounting Audit

Each Division andGroup Companies

Ryobi Integrated Report 2023

Cooperate(Three Corporate
Auditors two of whom
are outside auditors)

President and CEO

Report49

・Compensation structure
The directors' compensation (not applicable to outside directors) consists of a base compensation and performance-based compensation thatvaries depending on the business performance. The amount of performance-based compensation differs depending on the degree to which targets
are met. Performance targets are set for the entire company or for each director's area of responsibility, and are based mostly on company-wide
profitability indicators and the achievement of medium- to long-term goals. Compensation for outside directors, standing corporate auditors, andoutside corporate auditors consists of a base compensation only, in accordance with their responsibilities. The base compensation is based on
criteria specific for each position. Performance-based compensation consists of (a) bonuses reflecting company-wide profitability indicators(performance-based pay) and (b) bonuses reflecting the degree to which targets have been met for the entire company or for each director's areaof responsibility (excluding outside directors) (bonuses excluded from deductible expenses). The standard bonus payment ratio is 7:3.

○
○
○

○

○

○
○

○

○

○

○

Academic
expertCPA
Corporate
manager

Corporate
manager

LawyerCorporate
manager

Ryobi Limited has regularly evaluated its Board of Directors inorder to raise the board's effectiveness and increase ourcorporate value. In FY2022, based on the advice of an externalorganization, we held a survey to assess the structure andoperation of the Board of Directors, its management andbusiness strategies, corporate ethics and risk management,
performance monitoring and management evaluation/compensation, and communication with shareholders and otherstakeholders. The survey results were then analyzed, evaluated, and discussed by the Board of Directors. The outcomesfor its effectiveness are shown on the right.

・ The agenda for the Board of Directors is set as isappropriate for the circumstances.
・ The board adequately verifies whether or notcross-shareholdings should be held.
・ The board confirms that an internal control system is being
properly created.
・ The board has created a system to hold dialogs withshareholders and institutional investors in order to feed theopinions expressed in these dialogs back to the board so that theboard can use these opinions as a basis for their discussions.

Based on the above, we have concluded that Ryobi's Board of Directors is adequately managed and that its effectiveness is generally ensured.
The survey results also revealed several issues of the board's effectiveness that can be improved. These include better orientation for directors,
appropriate allocation of digital management resources, and reviewing how information regarding deliberations of the Nomination andCompensation Advisory Committee is reported to the Board of Directors. We will continue to work on these issues to maintain and improvethe effectiveness of our Board of Directors.

Ryobi Integrated Report 2023

50

品名

2023̲統合報告書

P51-52

日時

6/15

3校

作業者

井上

ESG (Environmental, Social, and Governance)

GovernanceCompliance

Risk management

Basic approach

Basic approach

At Ryobi, we believe that in order for a company to be trusted by society on a lasting basis, it is important to have a system in place

Ryobi believes that companies committed to creating sustainable value should understand exactly what risks pose potential obstacles

that ensures appropriate behavior, to prevent violations of laws and ethics, and to not tolerate violations when they come to light. To

and what the impact of these risks could be. Companies should take countermeasures in advance to avoid crises and minimize losses

this end, we have established the Ryobi Charter of Corporate Behavior (p. 04), which lists the universal rules to be observed in thewhen crises do occur.

course of Ryobi's corporate activities, and the Ryobi Code of Conduct, which clarifies the standards of conduct to be observed byeach and every director and employee while they perform their daily duties. These two documents help raise awareness and ensurethat all employees have a thorough understanding of our rules.

Risk management promotion framework
The Ryobi Risk Management Committee, chaired by the President and CEO, has been established in accordance with our risk

Organization chart

management regulations and serves to oversee and manage any risks that Ryobi faces. Guided by our basic risk management policy,

In order to encourage compliance, Ryobi has established a framework to promote compliance, headed by the Ryobi Compliance
Committee, has set up a compliance suggestion desk, and takes other such measures.

the Ryobi Risk Management Committee identifies major risks that require the involvement of our management, presents response
policies, and instructs the applicable departments and group companies to take appropriate measures. If any of the identified majorrisks poses a critical situation that requires urgent action, our risk management framework, headed by the crisis task force, ismobilized in accordance with crisis management regulations.

Compliance help desk
Concrete initiatives
Ryobi Compliance Committee・Responding to natural disasters and accidents
To minimize the impact of natural disasters and accidents on ourCompliancesuggestions

Ryobi's compliance promotion structure
Compliance representative

All group companies
Compliance committee

Compliancesuggestions

business activities, we strive to reduce risks through various
measures, including the development of a crisis management
system and a business continuity plan (BCP). We are working to
improve the earthquake-resistance of our buildings, and weCompliance promotion officer
Employees

conduct periodic natural disaster and accident drills. In addition to

All group companies

these initiatives, we are equipped with tools for emergency

Compliance promotion structure
Employees

communication and maintain a stockpile of emergency foods and

Implementation and promotion of compliance
We offer security training aimed at specific compliance levels for
new employees, employees appointed to new positions,general employees, and managers and supervisors. We arealso expanding our range of activities to raise complianceawareness by providing law-specific training on individual
topics such as power harassment.
Also, as a tool for promoting compliance, all employees receive
our Compliance Handbook, which contains the Ryobi Charterof Corporate Behavior and the Ryobi Code of Conduct, as well
as a pocket edition for quick reference.

other supplies.

Evacuation drill for natural disasters

・Ensuring information security
At Ryobi, we recognize the importance of electronic information and the legal and social responsibility of handling such information.
We are committed to maintaining and improving electronic information security by providing security education for new employees andsupervisors, and in this way, ensure the proper use and safety of electronic information assets.
We are additionally implementing measures to prevent cyber attacks, computer virus infections, and information leakage bystrengthening network traffic monitoring, and establishing a framework so that personal computers, smartphones, tablets, and similar
devices that are not under the company's control cannot be connected to the company's internal network if brought into thecompany.
In order to improve security levels across the entire supply chain, including partner companies, we are implementing cyber security
measures as activities based on our Declaration of Partnership Building. We have started activities to raise awareness about cybersecurity that exceed the bounds of our group, specifically including introducing examples of malware infection accidents, holding
briefing sessions about basic cyber security countermeasures, and assistance in introducing security countermeasures.

Consultation and reporting desk
Ryobi has established a compliance help desk as an internal whistleblower system, which serves as an internal and external (bylawyers) consultation service, thus creating a system for anonymous reporting. Our whistleblower system is available not only to Ryobi
employees, but to our business partners as well.

51

Ryobi Integrated Report 2023

Ryobi Integrated Report 2023

52

品名

2023̲統合報告書

P53-54日時

6/23

3校-入稿 作業者

井上

10-year financial highlights
Unit: millions of yen
Fiscal year ended
March 31, 2014

Business results
Net sales
199,697
Operating income (loss)
7,665
Ordinary income (loss)
7,264
Net income (loss) attributable to owners of parent
4,132
Comprehensive income
14,863Financial position
Net assets
96,433
Total assets
244,976
Interest-bearing debt
85,357Per share information
Net assets per share (yen)2,828.69
Basic income per share (yen)127.65
Dividends per share (yen)
35.0
Financial indicators
Equity ratio (%)
37.4
Return on equity (%)
4.9
Price-earnings ratio (%)
12.3
Ordinary income-to-total asset ratio (%)
3.2
Debt equity ratio (times)
0.93
Payout ratio (consolidated)(%)
27.4
Cash flow
Cash flows from operating activities
16,404
Cash flows from investing activities(21,096)
Cash flows from financing activities(934)
Free cash flow
(4,692)
Cash and cash equivalents at end of period
17,711
Capital expenditures, depreciation and amortization
Capital expenditures
16,228Depreciation and amortization
13,141
Segment information
Die castings
Net sales
154,480
Operating income (loss)
6,250
Total assets
175,041
Power tools and builders' hardware
Net sales
25,960Operating income (loss)
1,103
Total assets
25,866
Printing equipment
Net sales
19,027
Operating income (loss)
305
Total assets
23,797
Sales by regionJapan
119,278
U.S.A.
30,273
China
24,083
Other
26,062
Overseas sales ratio (%)
40.3

Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2018

227,163
9,122
8,399
3,809
13,934

254,508
12,832
12,132
9,305
4,014

241,251
12,62412,013
8,348
6,944

247,192
13,212
13,0307,844
10,007

216,187
13,57913,965
8,588
3,172

220,519
8,495
8,734
4,913
5,700

170,973(1,789)(35)(697)(2,451)

198,073(1,524)4(4,397)
6,131

249,521
6,969
7,791
4,784
12,215

107,403
267,854
86,503

110,107265,197
81,881

115,428
262,869
74,161

123,796
272,743
70,331

125,521268,982
61,912

129,575
263,179
61,908125,930
258,660
72,475

131,717
279,42273,769143,723
300,285
74,3583,144.44
117.6740.0

3,201.77
287.4745.0

3,342.96
257.9050.0

3,585.22
242.3560.0

3,605.47
265.3270.0

3,723.34
151.7970.0

3,619.16(21.54)0.0

3,797.69(135.87)
20.0

4,154.04
147.80
45.0

38.0
3.9
15.0
3.3
0.85
34.0

39.1
9.1
7.7
4.6
0.79
15.7

41.2
7.9
9.4
4.5
0.69
19.4

42.5
7.0
11.6
4.9
0.61
24.8

43.4
7.4
9.9
5.2
0.53
26.4

45.8
4.1
12.9
3.3
0.51
46.1

45.3
(0.6)
−
(0.0)
0.62
−

44.0
(3.7)
−
0.0
0.60
−

44.8
3.7
7.8
2.7
0.55
30.4

18,331(15,019)(4,876)
3,312
16,60922,784(14,817)(4,456)
7,967
19,85018,552(15,142)(6,660)3,410
16,17023,558(11,427)(6,496)
12,131
21,931

24,664(17,547)(9,139)
7,117
19,63230,326(26,278)(2,268)4,048
21,356

11,795(17,567)
9,718(5,772)
25,405

14,900(12,162)(1,936)
2,738
27,388

16,787(15,860)(2,856)926
26,09915,592
14,26916,243
15,725

16,85615,02018,841
16,01019,987
12,531

24,83915,37017,392
16,402

13,07017,24018,64618,327

173,329
6,672
193,066

198,809
10,534
192,307

186,377
9,761
186,479

196,377
10,561
206,225

188,403
12,580207,661

185,938
7,659
202,898

145,869(1,612)
202,516

169,898(1,449)214,262

215,726
5,232
234,174

26,236812
27,347

27,076430
26,94926,174
1,481
25,963

23,113
1,466
10,403

7,885
372
10,362

10,712697
10,292

9,406
799
9,931

9,574
362
10,606

10,145226
11,28327,3801,625
24,70628,383
1,848
24,75828,4591,360
25,15027,473
1,177
24,53819,704603
24,96923,661
144
23,017

15,513(944)
19,996

18,393(417)
22,24023,417
1,506
23,028126,019
34,23829,741
37,16444.5

128,161
42,752
38,13145,46349.6

125,131
35,562
38,19142,36648.1

127,13135,84743,71340,50048.6

97,74633,21640,89744,326
54.8

116,571
29,85234,30139,79447.1

91,08817,242
34,26428,37746.7

103,649
20,81438,60535,00347.7

114,726
36,95145,002
52,84054.0

Note 1) Effective October 1, 2017, five shares of common stock were consolidated into one share. Net assets per share, basic income per share, and dividends per share arecalculated on the assumption that this reverse stock split was implemented at the beginning of the fiscal year ended March 31, 2014.
Note 2) The power tools and builders' hardware business transferred its power tool operations to Kyocera Corporation in the fiscal year ended March 31, 2018. Therefore, theﬁgures for the power tools and builders' hardware business were replaced with those of the builders' hardware business after the fiscal year ended December 31, 2018.
Note 3) Effective from the fiscal year ended December 31, 2018, the closing date was changed from March 31 to December 31. As a result of this change, in the fiscal year ended
December 31, 2018, we had irregular account periods from April 1, 2018 to December 31, 2018 for domestic consolidated companies, and from January 1, 2018 to
December 31, 2018 for overseas consolidated companies.

53

Ryobi Integrated Report 2023

Fiscal year ended
Fiscal year ended
Fiscal year ended
Fiscal year ended
December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021

Fiscal year ended
December 31, 2022

Note 4) Price-earnings ratio and payout ratio (consolidated) for the fiscal years ended December 31, 2020 and 2021 are not shown due to loss attributable to owners of parent.
Note 5) Sales by region are based on the locations of customers and are classified by country or region.

Ryobi Integrated Report 2023

54

品名

2023̲統合報告書

P55-56日時

6/23

3校-入稿 作業者

井上

Consolidated financial statements
Consolidated Balance Sheet
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance 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
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Bond issuance costs
Total deferred assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Common stock
Additional paid in capital
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

55

Ryobi Integrated Report 2023

Unit: millions of yen
December 31, 2021

December 31, 2022

28,53844,327740
19,603
14,81318,092
3,505(30)
129,591

27,33958,337650
18,104
16,82920,5263,586(32)145,341

32,79351,314
15,598
11,733
5,718
117,158

32,71656,196
15,77813,084
6,183
123,959

3,159
3,159

2,803
2,803

15,772
6,916
3,879
3,006
(62)
29,512
149,830

14,826
6,439
4,053
2,923
(63)
28,179154,94300279,422−−300,285

41,60636,4981,500
13,005636
387−
17,131
110,765

46,54639,942
−
6,545
879
549
36
20,199114,698

22,765
2,948
510
7,872
2,842
36,939147,705

27,869
3,242
510
7,183
3,056
41,863
156,561

18,472
21,87571,587(346)
111,588

18,472
21,892
76,118(346)
116,136

5,503
811
4,288
734
11,337
8,790
131,717
279,422

5,649
811
11,675
186
18,323
9,263
143,723
300,285

Consolidated Statement of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Rental income
Foreign exchange gains
Dividend income of insurance
Share of profit of entities accounted for using equity method
Usage income of trademark
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on abandonment of inventories
Depreciation and amortization
Share of loss of entities accounted for using equity method
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on disposal of non-current assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Loss on valuation of investment securities
Loss on sale of investment securities
Compensation expenses
Total extraordinary losses
Net income (Loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income (Loss)
Net income attributable to non-controlling interests
Net income (Loss) attributable to owners of parent

Unit: millions of yen

Fiscal year ended
December 31, 2021

Fiscal year ended
December 31, 2022

198,073
179,600
18,472
19,996(1,524)

249,521
221,275
28,245
21,276
6,969

164
366
164
200
145
59
270
378
833
2,582

123
413
156
321
41
−
342
66
823
2,289

894
31
16
−
112
1,054
4

1,025
44
13
225
156
1,466
7,791

4
0
5

23
−
23

203
4,134
2
−
−
4,339
(4,329)
1,001
(969)
31
(4,361)36(4,397)

170
−
4
250
430
855
6,960
1,345
374
1,720
5,240
455
4,784

Consolidated Statement of Comprehensive Income

Net income (Loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

Unit: millions of yen

Fiscal year ended
December 31, 2021

Fiscal year ended
December 31, 2022

(4,361)

5,240

771
0
7,821
1,618
281
10,492
6,131

137
−
7,251
(549)
136
6,975
12,2156,087
43

11,769445

Ryobi Integrated Report 2023

56

品名

2023̲統合報告書

P57-58日時

6/23

2校-入稿 作業者

井上

Consolidated financial statements
Consolidated Statement of Changes in Equity

Consolidated Statements of Cash Flows

Fiscal year ended December 31, 2021

Common stock
Balance at beginning of period
Amount of cumulative impact due to changes in accounting policy
Balance at beginning of period reflecting changes in accounting policy
Changes during period
Dividends of surplus
Net income (Loss) attributable to owners of parent
Purchase of treasury stock
Change in ownership interest of parent due totransactions with non-controlling interests
Net changes in items other than shareholders' equity
Total changes during period
Balance at end of period

Additionalin capital

Retained earnings

Total
shareholders'equityTreasury stock

18,472

21,861

76,309(346)

18,472

21,861

76,309(346)

116,295−
116,295(0)(323)(4,397)(0)(323)(4,397)14−
18,47214

14
21,875(4,721)
71,587(0)(346)(4,707)
111,588

Accumulated other comprehensive income
NonValuation difference
Foreign currency Remeasurements Total accumulated controllingon available-for-sale Revaluationtranslationof defined benefit other comprehensive interests
reserve for land adjustment
securities
plans
incomeBalance at beginning of period
Amount of cumulative impact due to changes in accounting policy
Balance at beginning of period reflecting changes in accounting policy
Changes during period
Dividends of surplus
Net income (Loss) attributable to owners of parent

4,733

810

(3,814)

(877)

852

8,782

4,733

810

(3,814)

(877)

852

8,782

Total net
assets125,930−
125,930(323)(4,397)(0)

Purchase of treasury stock
Change in ownership interest of parent due totransactions with non-controlling interests
Net changes in items other than shareholders' equity
Total changes during period
Balance at end of period

14
770
770
5,503

0
0
811

8,102
8,102
4,288

1,611
1,611
734

10,485
10,485
11,3378
8
8,790

Fiscal year ended December 31, 2022

10,494
5,786
131,717

Unit: millions of yen
Shareholders' equity

Balance at beginning of period
Amount of cumulative impact due to changes in accounting policy
Balance at beginning of period reflecting changes in accounting policy
Changes during period
Dividends of surplus
Net income attributable to owners of parent

Common stock

Additional paidin capital

18,472

21,875

18,472

21,875

Total
shareholders'equityRetained earnings

Treasury stock

71,587718
72,305

(346)
(346)

(971)
4,784
17
−
18,472

17
21,892

(0)
(346)

3,813
76,118

5,503

811

4,288

734

11,337

8,790

5,503

811

4,288

734

11,3378,790

57

Ryobi Integrated Report 2023

3,830
116,136

Cash flows from operating activities
Net income (Loss) before income taxes
Depreciation
Impairment losses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Subsidy income
Share of loss (profit) of entities accounted for using equity method
Loss (gain) on disposal of non-current assets
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in trade payables
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Subsidies received
Income taxes refund (paid)
Net cash provided by operating activities
Cash flows from investing activities
Purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of securities
Proceeds from sale of securities
Purchase of investment securities
Proceeds from sale of investment securities
Payments into time deposits
Proceeds from withdrawal of time deposits
Other, net
Net cash used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Redemption of bonds
Purchase of treasury stock
Dividends paid
Other, net
Net cash 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

Fiscal year ended
December 31, 2022

(4,329)17,240
4,134
(3)
(3)
33
(530)
894
(378)
(59)
198
−
2
(2,520)(9,214)(208)
11,934(1,253)(424)
15,510
613
(904)
455
(773)
14,9006,960
18,327
−
2
161
(319)
(537)
1,025
(66)
225
147
250
4
(12,038)(1,538)
(14)
4,074
1,038
246
17,947600(1,011)
86(835)
16,787(11,851)520(1,300)
1,330
(15)
13
(2,404)
2,404(859)(12,162)(16,879)76(1,300)
1,300
(11)
750
(2,404)
2,404
202(15,860)

9,325
1,866
(8,050)(4,600)
(0)
(328)
(150)
(1,936)
1,182
1,983
25,40527,3882,039
11,110(13,365)(1,500)
(0)
(973)
(167)
(2,856)640(1,289)27,38826,099Total net
assets131,717718
132,435
(971)
4,784
(0)

Purchase of treasury stock
Change in ownership interest of parent due totransactions with non-controlling interests
Net changes in items other than shareholders' equity
Total changes during period
Balance at end of period(0)17

Accumulated other comprehensive income
NonValuation difference
Foreign currency Remeasurements Total accumulated controllingon available-for-sale Revaluationtranslationof defined benefit other comprehensive interests
reserve for land adjustment
securities
plans
incomeBalance at beginning of period
Amount of cumulative impact due to changes in accounting policy
Balance at beginning of period reflecting changes in accounting policy
Changes during period
Dividends of surplus
Net income attributable to owners of parent

111,588718
112,306
(971)
4,784

(0)

Purchase of treasury stock
Change in ownership interest of parent due totransactions with non-controlling interests
Net changes in items other than shareholders' equity
Total changes during period
Balance at end of period

Fiscal year ended
December 31, 2021

Unit: millions of yen
Shareholders' equity

Unit: millions of yen

17
146
146
5,649

−
−
811

7,387
7,387
11,675

(547)
(547)
186

6,985
6,985
18,323

472
472
9,263

7,458
11,288
143,723

Ryobi Integrated Report 2023

58

品名

2023̲統合報告書

P59-60

日時

6/19

6校

作業者

井上

Organization profile
Corporate information (as of December 31, 2022)

Changes in share price over the past 5 years (January 2018 to December 2022)(Unit: Yen)

Company name

RYOBI LIMITED

Location of Head Office

762 Mesaki-cho, Fuchu-shi, Hiroshima-ken 726-8628, Japan

Phone number+81-847-41-1111

Established

December 16, 1943

Capital18,472 million yen

Major products

・Die cast products

5,000

4,000

3,000

・Builders' hardware (door closers, hinges, architectural hardware, etc.)
・Printing equipment (offset printing presses, peripherals, etc.)
2,000

Fiscal year

From January 1 to December 31

Stock exchange listing

Tokyo Stock Exchange: Prime Market

Stock code

5851

Transfer agent

Mitsubishi UFJ Trust and Banking Corporation

Independent auditor

Deloitte Touche Tohmatsu LLC

1,000

0
2018

2019

2020

Management members (As of May 31, 2023)

Stock information (as of December 31, 2022)

Board of Directors Asterisk (*) indicates outside director

Number of sharesauthorized

100,000 thousand shares

Number of sharesissuedNumber ofshareholders
Akira Urakami
President and CEO

Satoshi Ohoka
Director*

Corporate Auditors

Tatsuyoshi Mochizuki
Director and Corporate
Officer

Masahiko Ikaga
Director*

Mami Ito
Director*

32,646 thousand shares
9,758(increased by 1,003 since the end of the fiscal year)

Share breakdown by owner
Individuals and others(including 277 thousand
shares of treasury stock)

Asterisk (*) indicates outside auditor

9,384 shareholders,
8,345 thousand shares
25.56%

Financial institutions
29 shareholders,
14,576 thousand shares
44.65%

9,758

shareholders

Takashi Suzuki
Standing Corporate
AuditorYoichi Arai
Corporate Auditor*

Other
32,646
institutions
thousand shares
174 shareholders,
3,161 thousand shares
9.68%

Takashi Hatagawa
Corporate Auditor*

Corporate Officers
Taichi Shimizu
Koji Urakami

59

Kazuhiko Fujii
Tadashi Takeguchi

Ryobi Integrated Report 2023

Hiromu Arihiro
Osamu Suemori

Hideki Tanifuji

Foreign investors
135 shareholders,
6,064 thousand shares
18.57%

Securities
company

36 shareholders,
500 thousand shares
1.53%

2021

2022

Principal shareholders
Principal shareholders

Investment in
Ryobi Limited
Number of Investment
shares held
ratio
(in thousands)(%)

The Master Trust Bank of Japan, Ltd.
(trust account)

3,328

10.28

Ryokokai Shareholding Association

2,055

6.34

Custody Bank of Japan, Ltd.
(trust account)

1,985

6.13

Meiji Yasuda Life Insurance Company

1,860

5.74

The Dai-ichi Life Insurance Company,
Limited

1,613

4.98

CREDIT SUISSE AG HONG KONG
TRUST A/C CLIENT

1,467

4.53

Nippon Life Insurance Company

1,248

3.85

The Urakami Scholarship Foundation

1,162

3.58

MUFG Bank, Ltd.

1,043

3.22

700

2.16

Sumitomo Mitsui Trust Bank, Limited(Note) Ryobi Limited holds 277 thousand shares of treasury stock.
Investment ratio above is calculated excluding treasury stock.

Ryobi Integrated Report 2023

60

品名

2023̲統合報告書

P61-62

日時

6/15

5校

作業者

井上

Organization profile
RYOBI LIMITED

Network❸❶❹❶ Head Office❷ Tokyo Branch❸ Toranomon Office❹ Osaka Branch
Sales Offices (7 locations across Japan)
a Sapporob Sendaic Hamamatsud Nagoyae Toyama
f Hiroshima
g Fukuoka❺ Hiroshima Plant❻ Hiroshima East Plant❼ Shizuoka Plant❽ Kikugawa Plant

❶⑦

❷

❺

❻

❺❼

❷

❼

❻

a

Domestic group companies① RYOBI MIRASAKA CO.

❶❺❻①②⑥⑦⑧⑨Die casting manufacturingb② RYOBI MITSUGI CO.

e

Plastic molding and die casting manufacturingfg③ TOKYO LIGHT ALLOY CO., LTD.

⑤ HOEI INDUSTRIES CO., LTD.

❸ RYOBI ALUMINIUM CASTING (UK), LIMITEDDie casting manufacturing and sales⑥ RYOBI MHI GRAPHIC TECHNOLOGY LTD.

Ryobi Integrated Report 2023③

Aluminum forged product manufacturing and sales
Printing equipment and related productmanufacturing and sales❶❷❸⑦ ASAHI SANGYO CO.
Insurance agency

①

②

③

⑥

⑧ RYOBI LAND DEVELOPMENT LTD.
Golf course management❻ RYOBI DIE CASTING (THAILAND) CO., LTD.
Die casting manufacturing and sales

61

❼

c❽

Secondary aluminum alloy bullion manufacturing
and sales❷ RDCM, S. DE R.L. DE C.V.
Die casting manufacturing❼ RYOBI (SHANGHAI) SALES, LTD.
Die casting and die sales⑤d❷❸④ IKUNO CO.

❶ RYOBI DIE CASTING (USA), INC.
Die casting manufacturing and sales❺ RYOBI DIE CASTING CHANGZHOU CO., LTD.
Die casting manufacturing and sales❹

Cast aluminum and die casting manufacturing
and sales

Overseas group companies❹ RYOBI DIE CASTING DALIAN CO., LTD.
Die casting and die manufacturing and sales④⑨ RYOBI LIFE SERVICES LTD.
Nursery school management❹❺❻

Ryobi Integrated Report 2023

62