Ryobi Consolidated Financial Statements for Fiscal 2015

Ryobi Limited and Consolidated Subsidiaries
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2015
These consolidated financial statements are based on the Japanese financial statements submitted to the Tokyo
Stock Exchange.

1. Consolidated Balance Sheets
March 31, 2014ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable
Marketable securities
Finished products and purchased goods
Work in process
Raw materials and supplies
Deferred tax assets
Other current assets
Allowance for doubtful accounts
Total current assetsFixed assets:
Property, plant and equipment:
Buildings and structures (net)
Machinery and equipment (net)Land
Construction in progress
Other fixed assets (net)Total property, plant and equipment
Intangible fixed assets:
Other intangible fixed assets
Total intangible fixed assets
Investments and other assets:
Investment in securities
Net defined benefit asset
Deferred tax assets
OtherAllowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets-1-(Millions of yen)March 31, 2015

18,41948,096
1,493
15,84012,401
11,229
1,184
5,041
(79)
113,626

17,84852,7381,393
18,013
13,927
13,5231,201
4,950(73)123,522

31,286
48,64523,224
4,523
3,572
111,253

32,85654,73823,322
5,176
4,184
120,278

2,467
2,467

2,689
2,689

11,858
1,424
3,874
554
(83)
17,628131,349
244,976

14,958
1,850
4,079
547
(71)
21,364
144,332
267,854

Ryobi Consolidated Financial Statements for Fiscal 2015

March 31, 2014
LIABILITIESCurrent liabilities:
Notes and accounts payable
Short-term borrowings
Current portion of long-term debt
Income taxes payable
Accrued bonuses
Accrued bonuses to directors
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt
Deferred tax liabilities
Deferred tax liabilities for revaluation
Net defined benefit liability
Other long-term liabilities
Total long-term liabilities
Total liabilities:
NET ASSETS
Shareholders’ equity:
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income :Unrealized gain on available-for-salesecurities
Deferred loss on derivatives under hedge
accounting
Land revaluation reserve
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeMinority interests
Total net assets
Total liabilities and net assets-2-(Millions of yen)March 31, 2015

35,171
37,277
12,159
1,753
1,569
42
11,654
99,62740,99437,802
10,622
1,866
1,637
41
14,454
107,419

35,920
1,203
630
7,567
3,592
48,914
148,542

38,077
2,258
534
8,466
3,694
53,032
160,451

18,472
23,757
46,661(2,334)86,556

18,472
23,75747,529(2,334)87,425

4,160

6,308

(24)
655
763
(544)

(18)
719
7,084
267

5,010
4,866
96,433244,976

14,362
5,615
107,403
267,854

Ryobi Consolidated Financial Statements for Fiscal 2015

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(1) Consolidated Statements of Income(Millions of yen)
Fiscal Year 2014
Fiscal Year 2015
Ended March 31, 2014
Ended March 31, 2015
Net sales
199,697
227,163
Cost of sales
169,539
194,142
Gross profit
30,15833,021
Selling, general and administrative expenses
22,49323,898Operating income
7,665
9,122
Non-operating income
Interest income
4145
Dividends income
174
240
Rent income
309
496
Exchange gain
449
194
Subsidy income
327—Gain on sale of scrap
305
308
Cash dividends for insurance
111
126
Miscellaneous income
320436
Total non-operating income
2,041
1,847
Non-operating expenses
Interest expenses
1,706
1,881
Cash discounts
207
215
Loss on abandonment of inventories
275
26
Depreciation
32
204
Miscellaneous expenses
219
243
Total non-operating expenses
2,442
2,571
Ordinary income
7,264
8,399
Extraordinary income
Gain on sale of fixed assets
228
Gain on negative goodwill
07
Total extraordinary income
2216
Extraordinary losses
Loss on disposal of fixed assets
194
105
Impairment loss on fixed assets
1,611—
Loss on devaluation of golf club membership45—
Total extraordinary losses
1,850
105
Income before income taxes and minority interests
5,436
8,310
Income taxes
Current
2,356
2,868
Deferred(1,274)
1,063
Total Income taxes
1,081
3,931
Income before gain on minority interests
4,355
4,378
Gain on minority interests222568
Net income
4,132
3,809

-3-

Ryobi Consolidated Financial Statements for Fiscal 2015

(2) Consolidated Statements of Comprehensive Income

Income before gain on minority interests
Other comprehensive income
Unrealized gain on available-for-salesecurities
Deferred loss on derivatives under hedge
accounting
Land revaluation reserve
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Minority interests-4-Fiscal Year 2014
Ended March 31, 2014
4,355

(Millions of yen)
Fiscal Year 2015
Ended March 31, 2015
4,378

1,424

2,318

26
—
9,056
—
10,50814,863

596
6,321
813
9,556
13,934

14,495367

13,161773

Ryobi Consolidated Financial Statements for Fiscal 2015

3. Consolidated Statements of Changes in Net Assets
For the Fiscal Year Ended March 31, 2014
(Millions of yen)
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

Treasury stock

Total shareholders'equity

18,472

23,75743,364(2,333)

83,260

Balance at
beginning of year
Cumulative effectsof changes inaccounting policies—

Restated Balance

18,472

23,75743,364(2,333)

83,260Changes of items
during the year
Dividends fromsurplus

(971)

(971)

Net income

4,132

4,132

Acquisition oftreasury stock
Change of scopeof consolidation
Net changes of
items other thanshareholders’equityTotal changes of
items during theyear
Balance at end ofyear

(0)

(0)

135

135

——

3,296

(0)

3,296

18,472

23,757

46,661(2,334)86,556

Accumulated other comprehensive loss

Balance at
beginning of year

Unrealized
gain onavailablefor-salesecurities

Deferred
losses onderivatives
under hedge
accountingLand
revaluation
reserve

Foreigncurrencytranslation
adjustments

2,880

(51)

655(8,293)

Remeasurementsof defined benefit
plans

—

Total
accumulated
othercomprehensive
loss

Minority
interests

Total net
assets(4,808)1,316

79,767

Cumulative effects
of changes inaccounting policies

Restated Balance—
2,880(51)655(8,293)—(4,808)1,316

79,767

Changes of items
during the year
Dividends fromsurplus(971)

Net income

4,132

Acquisition oftreasury stock
Change of scopeof consolidation
Net changes of
items other thanshareholders’equityTotal changes ofitems during theyear
Balance at end ofyear

(0)
135

1,280

26

—

9,056(544)

9,819

3,550

13,369

1,280

26

—

9,056(544)

9,819

3,550

16,666

4,160(24)655763(544)

5,010

4,866

96,433-5-Ryobi Consolidated Financial Statements for Fiscal 2015

For the Fiscal Year Ended March 31, 2015
(Millions of yen)
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

Treasury stock

Total shareholders'equity

18,472

23,757

46,661(2,334)86,556

Balance at
beginning of year
Cumulative effects
of changes inaccounting policies(1,645)

Restated Balance

18,472

23,75745,015(1,645)(2,334)

84,911

Changes of items
during the year
Dividends fromsurplus(1,294)(1,294)

Net income

3,809

3,809

Acquisition oftreasury stock
Change of scopeof consolidation
Net changes of
items other thanshareholders’equityTotal changes of
items during theyear
Balance at end ofyear

(0)

(0)
———

2,514

(0)

2,514

18,472

23,75747,529(2,334)87,425

Accumulated other comprehensive loss

Balance at
beginning of year

Unrealized
gain onavailablefor-salesecurities

Deferred
losses onderivatives
under hedge
accountingLandrevaluation
reserve

Foreigncurrencytranslation
adjustments

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
loss

Minority
interests

Total net
assets

4,160

(24)

655

763(544)

5,010

4,866

96,433(5)(1,650)4,861

94,783Cumulative effects
of changes inaccounting policies

Restated Balance

4,160

(24)

655

763(544)5,010

Changes of items
during the year
Dividends fromsurplus(1,294)

Net income

3,809

Acquisition oftreasury stock
Change of scopeof consolidation
Net changes of
items other thanshareholders’equityTotal changes of
items during theyear
Balance at end ofyear

(0)
—

2,147

564

6,321

812

9,351

754

10,105

2,147

564

6,321

812

9,351

754

12,620

6,308

(18)

719

7,084

267

14,362

5,615

107,403-6-Ryobi Consolidated Financial Statements for Fiscal 2015

4. Consolidated Statements of Cash Flows

Cash flows from operating activities:
Income before income taxes and minority
interests
Depreciation and amortization
Impairment loss on fixed assets
Increase (decrease) in allowance for doubtfulaccounts
Increase in reserve for bonuses
Decrease in accrued severance indemnities
Increase in net defined benefit liability
Interest and dividends income
Interest expenses
Loss on sale or disposal of fixed assets
Increase in notes and accounts receivable
Increase in inventories
Decrease in other current assets
Increase in notes and accounts payable
Other increases in current liabilities
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Payment for purchases of property, plant andequipment
Proceeds from sale of property, plant andequipment
Payment for purchases of marketable securities
Proceeds from sale of marketable securities
Payment for purchase of investment in securities
Payment for time deposits
Proceeds from repayment of time deposits
Other
Net cash used in investing activities
Cash flows from financing activities:
Increase (decrease) in short-term borrowings, net
Proceeds from long-term debt
Repayment of long-term debt
Acquisition of treasury stock
Cash dividends paid
Other
Net cash used in financing activities
Foreign currency translation adjustments on cash
and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Net increase in cash and cash equivalents from newly
consolidated subsidiary
Net increase in cash and cash equivalents from newly
corporate division
Cash and cash equivalents at end of year
-7-

Fiscal Year 2014
Ended March 31, 2014

(Millions of yen)
Fiscal Year 2015
Ended March 31, 2015

5,436
13,141
1,611

8,310
14,269—72
263(5,903)
6,814
(215)
1,706
171
(4,304)(2,017)
1,082
1,291
675
(1,525)18,300216(1,775)(336)
16,404

(17)
68—
805
(286)
1,881
96
(2,918)(4,328)
546
5,099
902
(1,745)22,683286(1,786)(2,852)
18,331(20,819)(14,262)

191(1,340)1,340(30)(2,775)2,775(437)(21,096)39(1,340)1,340(45)(3,309)2,939(381)(15,019)

2,193
7,211
(9,287)
(0)
(968)
(82)
(934)

(1,666)
10,547(12,429)(0)(1,294)(33)(4,876)

1,086(4,539)21,844462(1,102)
17,711

98—

309
17,711—
16,609Ryobi Consolidated Financial Statements for Fiscal 2015

5. Segment Information(1) Industry Segment Information
For the Fiscal Year Ended March 31, 2014
(Millions of yen)
DieCastings

Power Tools
and Builders’HardwarePrinting
Equipment

Other

Total

Unaffiliatedcustomers

154,480

25,96019,027229

199,697

Intersegment

128

7

—

30166

(166)

—

Total

154,608

25,96719,027259

199,864(166)

199,697

Operating income

6,250

1,103

305

6

7,665

(0)

7,665

175,041

25,866

23,7971,358

226,064

18,912244,976

11,994

696

432

18

13,141—

13,141

15,353611

24913

16,228—

16,228Eliminations/ Corporate

Consolidated

Net Sales:

Total assets
Depreciation andamortization
Capitalexpenditure—

199,697

For the Fiscal Year Ended March 31, 2015
(Millions of yen)
DieCastings

Power Tools
and Builders’HardwarePrinting
Equipment

Other

Total

Unaffiliatedcustomers

173,329

26,23627,380216

227,163Intersegment

144

7

—

43196

(196)

—

Total

173,474

26,244

27,380260

227,360(196)

227,163

Operating income

6,672

812

1,625

11

9,122

(0)

9,122

193,066

27,347

24,706

1,408

246,528

21,326

267,854

13,193

688

374

12

14,269—14,269

14,778

627

166

20

15,592—

15,592Eliminations/ Corporate

Consolidated

Net Sales:

Total assets
Depreciation andamortization
Capitalexpenditure-8-—

227,163

Ryobi Consolidated Financial Statements for Fiscal 2015(2) Information by Region
For the Fiscal Year Ended March 31, 2014
a. Net sales(Millions of yen)Japan

U.S.A.

119,278

China

30,27324,083

Other

Total

26,062

199,697

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

45,694

China

7,265

42,019

Other

Total

16,273111,253

For the Fiscal Year Ended March 31, 2015
a. Net sales(Millions of yen)Japan

U.S.A.

126,019

China

34,23829,741

Other

Total

37,164

227,163

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

45,002

U.S.A.

China

8,106

45,978-9-

Other

21,190Total

120,278