Ryobi Limited

Financial Results Presentation for
the Six Months Ended June 30, 2023

August 9, 2023

Contents
1. Results for the Six Months Ended
June 30, 2023

3

2. Forecasts for the Fiscal Year Ending
December 31, 2023

12

3. Status by Business Segment & Topics

20(1) Die Castings(2) Builders’ Hardware(3) Printing Equipment

4. Sustainability, ESG/SDGs

37

5. Financial Strategy

41
2/48

1. Results for the Six Months
Ended June 30, 2023

1. Results for the Six Months Ended June 30, 2023

Highlights of Financial Results➢ Consolidated results: Sales and profit increased compared to theprevious corresponding period.
Die Castings• Sales increased both in Japan and overseas. Sales increased due to the recovery inautomobile production alongside improvements in semiconductor supply system.
Additionally, sales of overseas subsidiaries increased because the weakening yen
boosted translated sales figures at overseas subsidiaries.
• Growth in sales boosted profits, despite rising energy costs and other factors.
Builders’ Hardware• Sales increased both in Japan and overseas. Profits fell due to rising procurement costsof products produced overseas.
Printing Equipment• Sales increased both in Japan and overseas. Increased capital investment bygovernment subsidies in Japan and strong business overseas boosted sales.
• Profits fell due to factors such as the impact of soaring raw material prices, despite
efforts to improve productivity and cut fixed costs.

➢ FY2023 forecasts• Sales and profit increase from the previous fiscal year.
• Results are expected to exceed forecasts from the start of the year due to growth insales and profit during the six months ended June 30 and the prospect of future orders
received.
4/48

1. Results for the Six Months Ended June 30, 2023

Results Summary
Under the uncertain situation for various reasons, including the Ukraine conflict, rising resource and energy prices, andfluctuating prices and exchange rates accompanying global monetary tightening, both sales and profit increased fromthe previous corresponding period thanks to recovery in domestic and foreign automobile production.
(Unit: Billions of Yen)FY2022 2Q

FY2023 2Q
Change(Announced on Feb. 13) (vs. forecasts)
Forecasts*

Results

Results

ChangeNet sales

113.6

129.8

16.2
(14.3%)

129.0

0.8(0.6%)

Operatingincome

2.0

4.8

2.8
(136.7%)

2.5

2.3(93.9%)

Ordinary
income

3.1

6.1

3.0
(96.2%)

2.4

3.7(152.8%)4.3

2.5(139.7%)1.7

2.6(154.8%)Net income
attributableto owners ofparent1.8* Figures shown are from initial forecasts announced on February 13. Forecasts were revised with the Notice of Revisions to Business Forecasts and Dividend Forecasts
issued July 20.

5/48

1. Results for the Six Months Ended June 30, 2023

Analysis of Changes in Net Sales
Sales increased by 16.2 billion yen due to the weaker yen and an increase in die castings
production volumes.
(Unit: Billions of Yen)

Increase/decrease inproduction,etc.

Currency
effects

Raw material(aluminum) price

129.8

113.6

0

FY2022 2Q

FY2023 2Q

Exchange rates (average for the period)

USD

GBP

CNY

THB

FY2022 2Q¥121.19¥158.62¥18.76¥3.61

FY2023 2Q¥134.42¥164.96¥19.39¥3.92
6/48

1. Results for the Six Months Ended June 30, 2023

Analysis of Changes in Operating Income• Growth in sales boosted profits.
• Labor expenses increased due to an increasing in personnel at overseas subsidiaries.
• Other fixed costs rose both in Japan and overseas due to rising energy prices and other factors.

(Unit: Billions of Yen)
Labor
expenses
Sales
increase, etc.

(Breakdown of currency effects)
 Translation from overseas
subsidiaries+0.3
 Export/import effects
+0.1

-2.6
Depreciation
Other fixed
costs

+0.5

+7.1

-2.6
(Main breakdown of other fixed
costs)
 Utilities-0.9
 Repairs and maintenance -0.4

2.0

Currency
effects+0.4

4.8

FY2023 2Q

FY2022 2Q
Exchange rates (average for the period)

USD

GBP

CNY

THB

FY2022 2Q¥121.19¥158.62¥18.76¥3.61

FY2023 2Q¥134.42¥164.96¥19.39¥3.92
7/48

1. Results for the Six Months Ended June 30, 2023

Trends in Sales and Operating Income (Consolidated)
Sales and profitability in the second quarter grew from the first quarter thanks to therecovery in automobile production.
(Unit: Billions of Yen)

(Unit: Billions of Yen)

80

8
70.2
65.7
54.0

Sales

48.2

47.3

61.6

56.2

6

48.5
4.1

40

4
2.9

2.7
1.9

20

2

0.9

0.6
0.1

0

0
-1.2

(20)
1Q

2Q

-0.7

-1.0

-2.0
3Q

4Q

FY2021
Sales (left axis)

1Q

2Q

3Q

4Q

FY2022

1Q

2Q

FY2023Operating income (right axis)
8/48

Operating income

60

57.4

68.2

1. Results for the Six Months Ended June 30, 2023

Results by Business Segment
Die Castings:

Despite the effects of rising energy prices and other factors, recovery in automobile production led to higher sales
and profitability.
Builders’ Hardware: Domestic and overseas sales increased, but profitability declined due to higher procurement costs for overseas
production and other factors.
Printing Equipment: Domestic and overseas sales increased, but profitability declined due to rising raw material prices.
(Unit: Billions of Yen)FY2022 2Q

FY2023 2Q

Results

Results

Net sales

113.6

129.8

Die castings

98.2

113.6

Builders’
hardware

4.9

5.2

Printing
equipment

10.5

11.0

Operatingincome2.0

4.8

Die castings

1.2

4.4

Builders’
hardware0.1

0.1

Printing
equipment

0.7

0.4

Change16.2(14.3%)
15.4(15.7%)
0.3(6.7%)
0.5(4.8%)
2.8(136.7%)3.2(269.2%)-0.0(-18.4%)-0.4(-47.8%)

Forecasts*(Announced on Feb. 13)

Change(vs. forecasts)

0.8(0.6%)
1.2(1.0%)
0.0(0.3%)-0.4(-3.8%)

129.0
112.4
5.2
11.4
2.5

2.0
0.1
0.4

2.3
(93.9%)
2.4(118.6%)0.0(4.0%)-0.0(-2.8%)* Figures shown are from initial forecasts announced on February 13. Forecasts were revised with the Notice of Revisions to Business Forecasts andDividend Forecasts issued July 20.

9/48

1. Results for the Six Months Ended June 30, 2023

Consolidated Balance Sheet
Total assets increased by 11.1 billion yen compared to the end of the previous fiscal year, of which 10.4 billion yen
was due to the impact of foreign exchange fluctuations.
Cash and deposits decreased by 4.3 billion yen due to the impact of the holidays at the end of FY2022.
(Unit: Billions of Yen)

Current assets
Cash and deposits
Notes andaccounts
receivable – trade
Securities
Inventories
Other
Non-current assets
Property, plant andequipment
Intangible assets
Investments andother assets
Deferred assets
Total assets

ChangeCurrency
Translation
EffectFY2022

FY2023 2Q

145.3

147.9

2.5

4.6

27.3

22.2

-5.1

0.5

58.3

60.9

2.6

1.9

0.7
55.5

0.7
60.1

0.0
4.7

2.0

3.6
154.9
123.9

3.9
163.5
127.7

0.4
8.6
3.7

0.1
5.8
5.2

2.8

2.8

-0.1

0.1

28.2
300.3

33.1
311.4

4.9
11.1

0.6
10.4

Current liabilities
Notes andaccounts payable –trade
Short-termborrowings
Other
Non-current
liabilities
Long-term
borrowings
Other

Shareholders’ equity
Accumulated othercomprehensive
incomeNon-controllinginterests
Total net assets
Total liabilities andnet assets

FY2023 2Q

Change

114.7

112.7

-2.0

4.2

46.5

42.6

-4.0

0.9

46.5

48.2

1.7

1.9

21.7
41.9

21.8
43.3

0.2
1.5

1.4
0.8

27.9
14.0
116.1

28.0
15.4
119.7

0.1
1.4
3.5

0.6
0.2
-

18.3

26.2

7.9

5.3

9.3
143.7
300.3

9.5
155.4
311.4

0.2
11.7
11.1

5.3
10.4

USD

GBP

CNY

THB

FY2022¥132.70¥160.00¥19.01¥3.80

FY2023 2Q¥144.99¥182.95¥19.94¥4.07

Exchange rates (as of end of period)

Currency
Translation
EffectFY2022

10/48

1. Results for the Six Months Ended June 30, 2023

Change in Cash Flows
Of the −3.9 billion yen in free cash flow, −4.3 billion yen was due to the impact of the holidays at
the end of FY2022.
The 8.4 billion yen in investing cash flow consisted of capital investment to meet new orders.
(Unit: Billions of Yen)

Free CF −3.9
Operating CF +4.5

Investing CF−8.4

Financing CF−1.6

Depreciation
Net
incomebeforeincometax

26.1

FY2022
Balance

+6.0

+8.8

Other

Dividends,
etc.

-10.3

-0.9
Capitalinvestment

-7.7

Other

-0.7

Borrowing,
etc.

-0.7

Exchange
conversion

+0.4

21.0

FY2023 2Q
Balance11/48

2. Forecasts for the Fiscal YearEnding December 31, 2023

2. Forecasts for the Fiscal Year Ending December 31, 2023

Trends in Production Weight of Die Castings
Production is expected to increase because the automobile production recovers due to the improvement of thesemiconductor supply system.
Production in Japan is expected to increase in the second half.

Trends in Production Weight (FY2019 1Q – FY2023 4Q)
Consolidated (left axis)
U.K. (right axis)

Consolidated(Unit: t)Japan (right axis)
China (right axis)

Americas (right axis)
Thailand (right axis)

By Region(Unit: t)

80,00040,000Consolidated

60,00030,000Japan
Americas40,00020,000China

20,00010,000U.K.
Thailand

0

0
1Q

2Q

3Q

2019

4Q

1Q

2Q

3Q

4Q

1Q

2Q

2020

*Solid lines indicate actual results; dotted lines indicate forecasts.

3Q

2021

4Q

1Q

2Q

3Q

2022

4Q

1Q

2Q

3Q

4Q

0

2023
13/48

2. Forecasts for the Fiscal Year Ending December 31, 2023

Forecasts
Sales and profit are expected to increase year on year thanks to cost savings,
productivity improvements, and increased production volumes.
(Unit: Billions of Yen)FY2022
Results

Net sales

OperatingincomeOrdinary
incomeNet income
attributable toowners of parent

249.5

7.0

7.8

4.8

FY2023
Forecasts

270.0

10.5

12.0

8.4

Change20.5(8.2%)
3.5(50.7%)
4.2(54.0%)
3.6(75.6%)
14/48

2. Forecasts for the Fiscal Year Ending December 31, 2023

Forecasts by Business Segment
Die Castings:

Sales and profit are expected to increase year on year thanks to cost savings, productivity
improvements, and increased production volumes.
Builders’ Hardware: Sales are expected to increase. Profit is expected to increase despite continuing increases inprocurement costs.
Printing Equipment: Sales are expected to remain largely unchanged year on year. The high cost of raw materials is
expected to result in lower profit, despite efforts to control fixed costs.
(Unit: Billions of Yen)FY2022
Results

FY2023
Forecasts

Net sales

249.5

270.0

Die castings

215.7

235.7

Builders’
hardware

10.1

11.0

Printing
equipment

23.4

23.3

Operating income

7.0

10.5

Die castings

5.2

9.5

Builders’
hardware0.2

0.3

Printing
equipment

1.5

0.7

Change20.5(8.2%)
20.0(9.3%)
0.9(8.4%)-0.1(-0.5%)
3.5(50.7%)
4.3(81.5%)
0.1(32.3%)-0.8(-53.5%)15/48

2. Forecasts for the Fiscal Year Ending December 31, 2023

Trends in Sales and Operating Income (Die Castings)
Both sales and profits are expected to increase year on year as recovering automobile
production continues to boost performance in the second half of FY2023.
(Unit: Billions of Yen)

(Unit: Billions of Yen)

150

15
117.6

Sales

95.3

122.1

98.2

90.7

81.2

10

87.8

82.1

64.6

50

4.4

4.1

3.2
1.9

5.1

4.4

5

1.2

0

0
-0.4

-1.1

-3.5

-50
1H

2H

1H

Operating income

100

113.6

-5
2H

1H

2H

1H

2H

1H

2H
(Forecast)

FY2019FY2020

Sales (left axis)

FY2021

FY2022

Operating income (right axis)

FY202316/48

2. Forecasts for the Fiscal Year Ending December 31, 2023

Analysis of Changes in Operating Income Forecast
Mainly at overseas locations, Labor expenses and other fixed costs will increase due tothe expansion of production, but profit will be higher due to revenue growth both inJapan and overseas.
(Unit: Billions of Yen)

Depreciation

+0.3
Sales
increase,
etc.

Labor
expenses

+11.0

-4.0

Other fixed
costs

-3.8

10.5

7.0

FY2023
Forecast

FY2022
ResultExchange rates(average for the period)
FY2022 Result

USD

GBP

CNY

THB

¥130.52¥161.52

¥19.4

¥3.72

FY2023 Forecast

¥135

¥170

¥19.5

¥3.8

Annual impact of yen appreciation
on operating income(1% higher than forecasts)
USD- ¥100 million
GBP- ¥20 million
CNY+ ¥20 million
17/48

2. Forecasts for the Fiscal Year Ending December 31, 2023

Trends in Capital Expenditures and Depreciation
For FY2023, investment is expected to be 18.0 billion yen; depreciation is expected to
be 18.0 billion yen (no change from previous forecast).
(Unit: Billions of Yen)

25

24.8

25
Cumulative results through 2Q
Capital expenditures: 7.5
Depreciation:
8.8

20
17.4

15.4

15

18.6 18.3
17.2

16.4

20

18.0 18.0
15

13.0
24.1
10

10
14.5

16.5 15.4

16.4

17.5 17.5

17.1
14.7

12.5
5

5

0

Capital Depreciation
Expenditures

Capital Depreciation
Expenditures

Capital Depreciation
Expenditures

FY2019FY2020

FY2021

Die Castings

Builders’ Hardware

Capital Depreciation
Expenditures

Capital Depreciation
Expenditures

FY2022

FY2023
Forecast

Printing Equipment

0

Other
18/48

2. Forecasts for the Fiscal Year Ending December 31, 2023

Trends in Interest-Bearing Debt and D/E Ratio
Interest-bearing debt at the end of FY2023 is expected to be 70.0 billion yen (no change fromprevious forecast).
The target of D/E ratio is 0.5 times or lower.
(Unit: Billions of Yen)

(Unit: Times)

80

0.8
74.2

72.5

74.4

73.8

70.3

70.0

0.69

61.9

60

61.9

0.6

0.62

0.61

0.60
0.55
0.53
0.51

400

FY 3/2017

FY 3/2018

FY2018FY20190.50

FY2020Interest-Bearing Debt (left axis)

Borrowing dependence(Interest-bearing
debt/total assets)

FY2021

FY20220.4
0FY2023(Forecast)

D/E Ratio (right axis)

FY 3/2017

FY 3/2018

FY2018FY2019FY2020

FY2021

FY2022

FY2023(Forecast)

28.2%

25.8%

23.0%

23.5%

28.0%

26.4%

24.8%

23.3%
19/48

3. Status by Business Segment &TopicsAuto parts

Door closers

Auto parts
Offset printingpresses3. Status by Business Segment & Topics – (1) Die Castings

Trends in Production Weight of Die Castings
Production is expected to increase because the automobile production recovers due to the improvement of thesemiconductor supply system.
Production in Japan is expected to increase in the second half.

Trends in production weight (FY2019 1Q – FY2023 4Q)
Consolidated (left axis)
U.K. (right axis)

Consolidated(Unit: t)Japan (right axis)
China (right axis)

Americas (right axis)
Thailand (right axis)

By Region(Unit: t)

80,00040,000Consolidated

60,00030,000Japan
Americas40,00020,000China

20,00010,000U.K.
Thailand

0

0
1Q

2Q

3Q

2019

4Q

1Q

2Q

3Q

4Q

1Q

2Q

2020

*Solid lines indicate actual results; dotted lines indicate forecasts.

3Q

2021

4Q

1Q

2Q

3Q

2022

4Q

1Q

2Q

3Q

4Q

0

2023
21/48

3. Status by Business Segment & Topics – (1) Die Castings

Trends in Production Weight of Die Castings
Production is expected to return to FY2019 levels by the end of the period in all
regions.

Trends in production weight (FY2019 1Q – FY2023 4Q)(Unit: %)200

Consolidated

Japan

Americas

U.K.

China

ThailandThailand

China

150

Consolidated

100

50

Americas
U.K.

Japan

0
四半期

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Quarterly
averages

平均

2019

2020

2021

* Quarterly average for FY2019 set to 100%
* Solid lines indicate actual results; dotted lines indicate forecasts.

2022

2023

22/48

3. Status by Business Segment & Topics – (1) Die Castings

Die Castings – Summary –Forecasts of net sales and operating income

FY2023 regional conditions(Unit: Billions of Yen)

(Unit: Billions of Yen)

250

235.7

25

215.7

200

20
169.9

150

15
9.5

100

10

5.2
50

(Japan)Automobile production shows a recovering trend as
shortages of semiconductors and other components
are improving.
(Americas)
Growing sales attributable to higher production
volumes and the launch of new products.
Labor expenses are trending up due to increased
hiring and wage hikes.
(U.K.)
Growing sales attributable to recovering automobile
production (despite delays in the launch of new
products).
Energy prices remain high.
(China)Results indicate recovery starting in 2Q due torecovering automobile production.

5(Unit: Billions of Yen)

0

0
-1.5

(50)

-5
FY2021

Net sales (left axis)

FY2022

FY2023(Forecast)

Net sales

FY2021

FY2022

FY2023(Forecast)Japan
Americas
U.K.
China
Thailand

86.4
31.4
10.6
34.6
6.8

93.0
58.2
13.0
42.6
8.9

97.0
72.2
16.9
39.9
9.7

Operating income (right axis)
23/48

3. Status by Business Segment & Topics – (1) Die Castings

Die Castings – Japan –Business environment

Sales trend(Unit: Billions of Yen)
120
100

93.0

86.4

97.0

93.0

71.7

80

60
40
20

➢ Automobile production shows a recovering trendwith improving shortages of semiconductors andother components.
➢ While the trend of domestic electrification market is
HEVs, OEM is accelerating BEV development.
➢ OEMs appear to be focusing on R&D investments
while restraining investments in casting machinery
upgrades and making growing use of outsourcing.
➢ Demand for light weight components is growing(replacing iron with aluminum).

Main initiatives

0
FY2019FY2020

FY2021

FY2022

FY2023(Forecast)

RYOBI LIMITED
Hiroshima Plant
Hiroshima East Plant

RYOBI
MIRASAKA CO.

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

RYOBI LIMITED
Shizuoka Plant

RYOBI MITSUGI CO.

➢ Focus on securing orders for new products basedon development proposals for strategic products(lightweight and electrification components)➢ Building structures for production of strategic
products (e.g., investments for giga casting)

RYOBI LIMITED
Kikugawa Plant

RYOBI LIMITED
Hiroshima East
Plant

24/48

3. Status by Business Segment & Topics – (1) Die Castings

Die Castings – Americas –Business environment

Sales trend(Unit: Billions of Yen)
80

72.2
58.2

60

27.5

➢ Production is expected to trend upward thanks toprogress in resolving parts shortages.
➢ While the Inflation Reduction Act limits EV subsidies
to domestic vehicles, eligible vehicles are expected
to install most of our products.

43.9
40

➢ US new car sales in 2023 (January-June cumulative)
were up roughly 13%.

31.4

➢ Causes for concern include wage growth and risinglabor costs, worsening fundraising conditions due
to rapid interest rate hikes, and low demand forvehicle purchases.

200FY2019FY2020

FY2021

FY2022

FY2023(Forecast)Main initiatives➢ Efforts to achieve the smooth launch of new
products and improve productivity➢ Securing orders from major customers for strategic
products (lightweight and electrification
components)

RYOBI DIE CASTING(USA), INC.

RDCM, S. DE
R.L. DE C.V.
RYOBI DIE CASTING(USA), INC.

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

25/48

3. Status by Business Segment & Topics – (1) Die Castings

Die Castings – China –Business environment

Sales trend(Unit: Billions of Yen)
50

42.6
40

31.9

33.0

39.9

34.6

30
20

➢ While HEVs are given preferential treatment as low
emissions vehicles, BEVs are more popular due tovehicle purchase tax exemptions and ease ofobtaining license plates.
➢ Automobile production has trended toward recovery
since the zero-COVID policy was scrapped.
➢ While BEV and PHV sales are growing stability,
HEVs are struggling.

Main initiatives

100
FY2019FY2020

FY2021

FY2022

FY2023(Forecast)➢ Strengthening ties with leading customers andgrowing sales➢ Optimizing production structures in China andmaking effective use of existing facilities

RYOBI DIE CASTINGDALIAN CO., LTD.

RYOBI DIE CASTINGDALIAN CO., LTD.

RYOBI DIE CASTINGCHANGZHOU CO., LTD.

RYOBI DIE CASTINGCHANGZHOU CO., LTD.
26/48

3. Status by Business Segment & Topics – (1) Die Castings

Die Castings – U.K., Thailand –U.K.

Business environment

Sales trend(Unit: Billions of Yen)
20

16.9

15

11.4
10

13.0
9.5

10.6

5

RYOBI ALUMINIUMCASTING (UK), LIMITED

Main initiatives

0
FY2019ThailandFY2020

FY2021

FY2022

FY2023(Forecast)(Unit: Billions of Yen)

8.9

10

5.7
5

9.7

Main initiatives

FY2021➢ Securing new orders as main project forJapanese company➢ Improving productivity (establishingflexible production structures capable ofadapting to increased volumes, etc.)

4.3

FY2020➢ Automobile production is recovering
alongside progress of improving
semiconductor shortages.
➢ Thailand has relatively few competing die
castings businesses.

6.8

0
FY2019➢ Improving productivity (using
outsourcing)➢ Enhancing sales sections and securing
new orders (enhancing cooperation withJapan)

Business environment

Sales trend
15

RYOBI DIE CASTING(THAILAND) CO., LTD.

➢ Automobile production has grownmodestly across Europe as a whole
thanks to the ongoing easing of parts
supply issues.
➢ Efforts to reflect high energy costs in
product prices continue to grow.
➢ Policy interest rate hikes (concerns aboutslowing automobile sales)

FY2022

FY2023(Forecast)

27/48

3. Status by Business Segment & Topics – (1) Die Castings

Die Castings
Initiatives to achieve weight reductions and electrification – Giga casting efforts –We RYOBI are the first specialized manufacturer in Japan to adopt a 6000T-class die
casting machine.
◆ Accelerating the adoption of next-generation die casting technologies and the development of
products(To enable integrated casting of large structural components, achieving cost savings and CO2
emissions reductions)◆ Enhancing the prototyping services business for large structural components

Capital investment overview
Investment amount: Approx. 5 billion yen in total
Die casting machine (one 6000T-class unit) and accessory equipment
Die machining equipment, building and plant facilities, etc.
Products:
Large-scale aluminum die casting products (e.g., bodies, battery cases)
Location:
At the site of the Kikugawa Plant
Expected start operations: March 2025

Aichi Prefecture

Shizuoka Prefecture
Kikugawa
Shizuoka Plant

Kikugawa Plant

Kikugawa Plant

Location of the Kikugawa Plant

28/48

3. Status by Business Segment & Topics – (1) Die Castings

Die Castings
Initiatives to achieve weight reductions and electrification – External conditions for the Die Castings business –• New automobile sales is expected to increase up to around 2040.
• Surely proceed to BEV.
• Transmission and engine parts will shrink, but as body/chassis (weight reduction
parts), and electrification parts (for HEV & BEV) sales will increase, therefore we
expect demand of die casting will increase
Sales volume base

As of October 2022

Key countries: Japan, U.S.A., Europe, China, India

Outlook for Die Casting Demand(Total weight of Key countries)

Outlook for Power Train Mix(Number of automobiles sold of Key countries)
100

6
Unit: 1 million t (vertical axis)

Unit: 1 million vehicles (vertical axis)
5

FCV

80

Body/chassis
4

BEV

60

Electrification/
driveline parts

3
40
2
20

Transmission
components

Other

HEV&PHEVICE

1Engine components
0
2015

2020

2025

2030

2035

2040

0
2015

2020

2025

2030

2035

2040

29/48

3. Status by Business Segment & Topics – (1) Die Castings

Die Castings
Initiatives to achieve weight reductions and electrification – Exhibiting at the Automotive Engineering Exposition –We proposed a wide range of solutions to achieve lighter weight and electrification by
exhibiting numerous products, including parts developed for BEVs, body and chassis
components, and other mass-produced products.
Key products exhibited• Body and chassis parts to achieve lighter vehicle
weight (door frames)• Thick, high-strength products made using GD squeeze
casting (knuckles)• Products developed for BEVs (e.g., battery cases,
e-Axle cases, motor cases)

The Ryobi booth

Exhibit examples
Door frame hinge
part

1110mm
300mm
140mm

350mm

460mm
250mm
1140mm
195mm

Door frame

175mm

KnuckleBattery case
30/48

3. Status by Business Segment & Topics – (1) Die Castings

Die Castings
Initiatives to achieve weight reductions and electrification – Exhibiting at the Automotive Engineering Exposition –We exhibited examples of the developed products of electrification parts by using laser-welding
technology—something previously considered impossible.
We proposed large-scale parts as a solution to help reduce weight and cut costs without usinggiga casting technologies.
e-Axle caseBattery cases

Cooling circuit formed through two-piece joining

Welding multiple individual cases together

External weld

Internal
weld

Cooling circuit
Inner

Outer

340mm
500mm

1200mm
300mm

1800mm• Proposed integration by shifting from bolt-jointing
to laser-welding• Fewer parts to help reduce required materials andassembly work

• Proposed larger battery cases through laser welding• Large battery cases leading to increased battery
capacity
31/48

3. Status by Business Segment & Topics – (1) Die Castings

Die Castings
Initiatives to achieve weight reductions and electrification – Sales contribution of strategic products –• Orders for weight reduction and electrification components are steady.
• Weight reduction and electrification components accounted for approximately 78%
of new orders in the FY2022 (FY2020: 38%, FY2021: 55%).
• We expect these products to account for nearly 50% of net sales in 2027.

Trends in sales share by die casting parts category
Body/Chassis
Transmission
Other

Electrification
Engine■4.3%■2.9%■■Total

5.3%■■Total■■Total46%

7.2%■■Total

15.4%
FY2020

FY2021

10.3%
5.0%
FY2022■■Total

19%

10%
9%
FY2023(Forecast)

FY2027(Forecast)
32/48

3. Status by Business Segment & Topics – (2) Builders’ Hardware

Builders’ Hardware

Business environment➢ In Japan, the residential housing starts
is expected to reduce, while the market
for (non-residential) buildings is
expected to remain flat.

Forecast of sales and operating income(Unit: Billions of Yen)

(Unit: Billions of Yen)

12
9.6

1.2

11.0

10.1

0.8

8

➢ Surges in raw material prices➢ Growing demand for non-contact
devices in the living environment field4➢ Domestic demand for remodeling andrenovation is growing.

0

0.4
0.2

0.3

0.4

0
FY2021
Sales (left axis)

FY2022

FY2023
Forecast
Operating income (right axis)

Main initiatives
Performance summary➢ Expand share in the Japanese market.
➢ Expand sales of high-value-added
products (next-generation key
products).

➢ Expand sales in overseas markets.
➢ Promote supply chain management.

➢➢(FY2023 2Q)
Sales increased both in Japan and overseas.
Profit declined due to factors such as higher
procurement costs of overseas production.
(FY2023 full-year forecast)
Sales are expected to increase both in Japan andoverseas.
Profit is expected to increase due to higher sales.

33/48

3. Status by Business Segment & Topics – (2) Builders’ Hardware

Builders’ Hardware

Topics in the Builders’ Hardware business
In June 2023, we exhibited various products at the Building Materials Fair for Ideal Housing andArchitecture, including a conceptual model of the RUCAD electric door opening/closing equipment
and door closers for the European and North American markets.
Conceptual model with automatic closing
feature for use during power failures

Building Materials Fair for
Ideal Housing andArchitecture

The Ryobi boothApproximate
dimensions (cover)408 (W) × 71 (D) ×
109 (H) (mm)Remote control

Using
smartphones

Using smart
speakers

Linked to facialrecognition systems

Linked toelectric locks

Linked to motion
sensors

Using intercoms
with cameras

Using various
sensors

Crime
prevention

Illustration of linking to external devices

ブースの様子We exhibited the GP-18 pivot hinge in the GEOPRO
series. This product is designed for use with door
weights of up to 180 kg at commercial facilities.

Approximate dimensions (mm)108 (W) × 75 (D) × 35 (H)Entry/exit
control

Approximate dimensions (mm)200 (W) × 80 (D) × 120 (H)We exhibited door
closers and floor
hinges all over theworld.

34/48

3. Status by Business Segment & Topics – (3) Printing Equipment

Printing Equipment
Business environment➢ Demand for automation and labor savings due
to labor shortages and aging of printing press
operators➢ Steady sales of presses for package printing➢ Decrease in paper supply and sharp rise in
prices are leading to a shift away from printing.
➢ After the 2008 financial crisis and the COVID-19
pandemic, the number of printing equipment
manufacturers has decreased (to two Japaneseand three German companies).

Forecast of sales and operating income
30

3
23.4

20

➢ Collaboration with participating companies
and new businesses through alliances withfirms in the printing industry➢ Development of automation, labor-saving, andassistance functions for printing presses➢ Expanding orders for flagship models andimproving price competitiveness through cost
reductions➢ Strengthening sales of press models for
package printing➢ Reflecting higher raw material prices in selling
prices

23.3

18.4

2

1.5

10

0.7
(10.0)

0(10)(10.7)

1(10.6)

0-0.4
FY2021Main initiatives(Unit: Billions of Yen)

(Unit: Billions of Yen)FY2022

FY2023
Forecast-1

Sales (left axis)
Operating income (right axis)* Figures in parentheses indicate export components of sales.

Performance summary➢ (FY2023 2Q)
Overall, both domestic and overseas sales
remained flat. Profit declined due to theeffects of the higher cost of raw materials.
➢ (FY2023 full-year forecast)
Overall sales are expected to remain flat bothin Japan and overseas.
Profit is expected to continue to decline dueto the effects of continuing high raw material
prices and other factors.
35/48

3. Status by Business Segment & Topics – (3) Printing Equipment

Printing Equipment
Topics in the Printing Equipment business

Construction of third factory

Print China 2023

Striving to optimize production systems andimprove productivity by consolidating
scattered factories through additional factory
construction on land adjacent to the RMGT No.
1 and No. 2 factories.

In April 2023, we exhibited jointly with China
distributor DINGA at the Print China 2023
international printing exhibition held at the
Guangdong Modern International Exhibition
Center. We primarily exhibited package printing
products.

 Location:
Fuchu-shi, Hiroshima-ken
 Facility use: Assembly of sheetfed offset presses
 Construction started:
Jan. 2023
 Scheduled for completion: Oct. 2023
 Total floor area:
4,400 m2
(Total floor area: 1st factory 10,000 m2; 2nd factory 19,300 m2)

 Number of exhibitors: 1,200 companies
 Number of attendees: 190,000
 Models exhibited: RMGT1060 (compatible with up to
B1 paper size)
RMGT970 (compatible with up to
A1-plus paper size)
36/48

4. Sustainability, ESG/SDGs

Lightening the load worldwide

4. Sustainability, ESG/SDGs

Sustainability, ESG/SDGs
Initiatives to environment

Targets to reduce CO2 emissions by 2050
Achieve carbon neutrality by 2050
Curb CO2 emissions from domestic and overseas facilities by at least 47% from the
FY2018 level by 2030.*

Reduction targets for CO2 emissions by 2050
Previous reduction vision

47% reduction* Scope 1 + Scope 2

Major measures to becomecarbon neutral• Promote the introduction ofenergy-saving equipment.
• Use of renewable energy(solar, hydroelectric, etc.)• Control of combustion
process in melting ofaluminum alloys

2018

2030

425 k t-CO2

224 k t-CO2

2050* CO2 emissions shown are absolute amounts for Scopes 1 and 2.

• Switch to non-fossil energy(hydrogen, ammonia, etc.)

38/48

4. Sustainability, ESG/SDGs

Sustainability, ESG/SDGs
Sustainability topics
TCFD reporting (E)We initiated disclosures based on TCFD
recommendations in June 2023.
We will help realize a sustainable society by realizing
the opportunities identified and managing identified
risks and achieving carbon neutrality by 2050.

Constructing a new Head Office annex (E/S)
An eco-friendly office building with roots in thelocal community featuring advanced work spaces
suited to diverse work styles.

Green Star Award (E/S)
Ryobi Die Casting (Thailand)Co., Ltd. firstly received
Green Star Award from theIndustrial Estate Authority ofThailand.
The reason we received:
This award honors Ryobi Die
Casting (Thailand) initiatives
in areas such as tree planting
activities, blood drive
participation, and donations
to local elementary schools.

Health and production management* (S)We, Ryobi, has been recognized as “CertifiedHealth & Productivity Management” for four
years in a row.

* The Ministry of Economy, Trade and Industry is promoting “Health andProductivity Management,” considering health management of employees
from a corporate management perspective and implementing it strategically.

39/48

4. Sustainability, ESG/SDGs

Sustainability, ESG/SDGs
Sustainability topics
Board of Directors, Corporate Auditors (G)• Three members of the Board of
Directors (60%) are Outside
Directors.
• On March 29, 2023, Ms. Mami Ito(CEO & president of Nihon Dento
Kougyo Co., Ltd.) was appointed
our first female Outside(Independent) Director.

* Independent Outside
Director/Auditor

Representative
Director
Akira Urakami

Director
Tatsuyoshi
Mochizuki

Director *Satoshi Ohoka

Director *Masahiko
Ikaga

Director *Mami Ito

Standing
Corporate
AuditorTakashi Suzuki

Corporate
Auditor *Yoichi Arai

Corporate
Auditor *Takashi
Hatagawa

Skills matrix (G)• Shown at right table is the balanceof skills of the management
members.

• To effectively fulfill its roles andresponsibilities, the Board
membership balances diversity, anappropriate number of directors,
and the knowledge, experience,
and abilities offered by eachdirector.

Corporate Auditors

Board of Directors
Knowledge/
Experience

Internal Directors
Akira Urakami

Tatsuyoshi
Mochizuki

Outside Directors
Satoshi Ohoka Masahiko Ikaga

Mami Ito

Standing
Takashi Suzuki

Non-Standing
Yoichi Arai

Takashi Hatagawa

LawyerCorporate
manager

Corporate
Management
Global Business
MarketingTechnology
Finance & Accounting
HR Development
Risk management, Corporate
Governance & Compliance

Qualifications, etc.

Academic
expertCPA,
Corporate
manager

Corporate
manager

Note: The above skills matrix focuses on the four areas in which we have particularly highexpectations. It is not an exhaustive list of all specializations of each director.

40/48

5. Financial Strategy

5. Financial Strategy

Financial Strategy – Increasing corporate value –(Current circumstances)(Measures)• Due to slow business performance andother factors, our share price since
December 2019 has trended below 2,000
yen and PBR to less than 1.0.
• We acknowledge that investors do not
fully appreciate our growth potential.
• Our share price has risen since werevised our results forecasts on July 20.
PBR had recovered to 0.6 by the end of
July.

• The top priority is to achieve businessperformance recovery by steadily executing ourbusiness strategies.
• Targeting further improvements in profitability
will contribute to sustained growth in ROE andimproved PBR.
• We will also implement the following measures toachieve proper valuations of our shares and toenable sustained growth in corporate value:(Unit: yen)
5,000

Trends in share prices✓ Disclosing medium- and long-term strategies andplans✓ Creating further opportunities for dialogue withshareholders and investors on growth strategies

4,000
Net income(billion yen)

3,000

Dec.
2018

Dec.
2019

Dec.
2020

Dec.
2021

Dec.
2022

8.6

4.9

-0.7

-4.4

4.8

ROE (%)

7.4

4.1

-0.6

-3.7

3.7

PBR (times)

0.73

0.52

0.35

0.29

0.28

2,000

1,000

0

42/48

5. Financial Strategy

Financial Strategy – Cash allocation –Basic thinking on cash allocation
Operating CF

Investing CF(Cash generation)• We will aim to maximize cash flow fromour operating activities.
• We will start with efforts to grow sales by
securing strategic products, reducing
costs, and improving productivity,
thereby achieving rapid recovery inbusiness results. We will seek to further
improve profitability and generate CF
alongside the anticipated recovery inautomobile production.

(Investing in business growth)

Improving CCC* / optimizing asset
holdings

Financing CF(Basic fundraising policy)• We will fund investments to achieve future
growth in corporate value and in areas
such as maintaining and increasing
returns to shareholders from operating CF
while borrowing externally as needed.
• We will make proactive use of sustainablefinance based on eco-friendly investment.

• We will continue investing in strategic
products (lightweight and electrification
components) and in giga casting
capabilities in the Die Castings businessto drive growth in corporate value.
• We will invest in growth after ensuring
financial soundness.

Shareholder Returns• In returns to shareholders, we willprioritize maintaining the dividend
payout ratio and stable dividends.
• We may consider expanding the rate ofshareholder returns, depending on
circumstances.
• We may consider purchasing treasury
stocks depending on the circumstancesof capital investments for growth.

* Cash conversion cycle: Financial indicator showing the number of days required to recover accounts receivable-trade after
payment of accounts payable-trade

43/48

5. Financial Strategy

Financial Strategy – Shareholder returns –Trends in dividends per share and dividend payout ratio(Unit: Yen)

Dividend policy(Unit: %)

100

60
46.1

30.4

27.0

50
70

30

70

➢ Ryobi’s basic policy for profit distribution
is to maintain a stable return of profits toshareholders while securing funds for
growth investment along with a mediumto long-term improvement inconsolidated operating performance.
➢ Along with giving due consideration tomaintaining a stable stream of dividends,
the amount of shareholder returns isdetermined in light of prevailingconditions, with an eye to achieving adividend payout ratio of around 30%.

45

Status of dividends

200FY2019FY2020

FY2021Dividends per share (left axis)

Dividends per share(yen)
Dividend payout
ratio (%)

FY2022

FY2023
Forecast

00

Dividend payout ratio (right axis)➢ Dividends in FY2022 were five yen higher
than forecast, based on annual
performance, financial position, andother factors (annual dividends were 45
yen, up 25 yen from the previous year).
➢ Annual dividends of 70 yen per share areplanned for FY2023.

FY2019FY2020

FY2021

FY2022

FY2023
Forecast

70

0

20

45

70

46.1

-

-

30.4

27.0
44/48

About forward-looking statements
This document contains forward-looking statements regarding matters such as Ryobi’s businessplans, strategies, and operating results.
Such forward-looking statements reflect Ryobi’s judgements based on information available at thetime of preparation. They involve inherent risks and uncertainties.
Ryobi’s actual activities and operating results may differ from these forward-looking statements
due to economic conditions, the business environment, trends in market demand, trends inexchange rates, and other factors.

Unauthorized copying and replication are prohibited.
45/48

Appendix
Net sales forecast by region
Japan

China

(Unit: Billions of Yen)

RYOBI LIMITEDRYOBI MIRASAKA CO.
RYOBI MITSUGI CO.
TOKYO LIGHT ALLOY CO., LTD. etc.

RYOBI DIE CASTING DALIAN
CO., LTD.
RYOBI DIE CASTINGCHANGZHOU CO., LTD.

31.9 33.0 34.6 42.6 39.9
FY2019 FY2020 FY2021 FY2022 FY2023
Forecast

93.0

71.7 86.4 93.0 97.0

FY2019 FY2020 FY2021 FY2022 FY2023
Forecast

U.K.
RYOBI ALUMINIUM CASTING(UK), LIMITED

11.4

9.5

10.6 13.0 16.9

FY2019 FY2020 FY2021 FY2022 FY2023
Forecast

RYOBI DIE CASTING(USA), INC.

RDCM, S.
DE R.L. DE
C.V.
(Mexico)Americas

ThailandRYOBI DIE CASTING (THAILAND) CO., LTD.

5.7

4.3

6.8

8.9

9.7

FY2019 FY2020 FY2021 FY2022 FY2023
Forecast

43.9

58.2

72.2

27.5 31.4

FY2019 FY2020 FY2021 FY2022 FY2023
Forecast
47/48/48

Appendix
Capital expenditure forecast by region
Japan
RYOBI LIMITEDRYOBI MIRASAKA CO.
RYOBI MITSUGI CO.
TOKYO LIGHT ALLOY CO., LTD. etc.

China
RYOBI DIE CASTING DALIAN CO., LTD.
RYOBI DIE CASTING CHANGZHOU CO., LTD.

6.0

3.9

4.0

3.4

(Unit: Billions of Yen)

13.0

2.0

FY2019 FY2020 FY2021 FY2022 FY2023
Forecast

6.3

4.3

6.5

6.4

RYOBI DIE CASTING(USA), INC.

FY2019 FY2020 FY2021 FY2022 FY2023
Forecast

RDCM, S. DE
R.L. DE C.V.
(Mexico)U.K.

Americas

RYOBI ALUMINIUM CASTING(UK), LIMITED

0.3

0.3

1.0

1.2

Thailand

0.3

FY2019 FY2020 FY2021 FY2022 FY2023
Forecast

RYOBI DIE CASTING (THAILAND) CO., LTD.

1.2

2.3

1.1

1.2

1.0

3.6

3.7

FY2019FY20202.1
FY20215.2

4.5

FY2022

FY2023
Forecast

FY2019 FY2020 FY2021 FY2022 FY2023
Forecast

48/48/48