Ryobi Consolidated Financial Statements for the Second Quarter of Fiscal 2011

Ryobi Limited and Consolidated Subsidiaries
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending
March 31, 2011

1. Consolidated Balance Sheets
September 30, 2010ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable
Marketable securities
Finished products and purchased goods
Work in process
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets:
Property, plant and equipment:
Buildings and structures (net)
Machinery and equipment (net)Land
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
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets-1-(Millions of yen)March 31, 2010

13,38636,413
11,65912,074
8,527
5,937
3,625
(33)
91,59215,154
31,244
10,362
12,569
8,120
5,815
3,820
(40)
87,047

18,264
23,135
21,644
3,718
3,774
70,53619,14824,023
21,667
5,101
3,897
73,837

962
962

1,077
1,077

7,624
4,391
(112)
11,903
83,402
174,994

8,804
3,266
(117)
11,95386,868173,916

Ryobi Consolidated Financial Statements for the Second Quarter of Fiscal 2011

September 30, 2010
LIABILITIESCurrent liabilities:
Notes and accounts payable
Short-term borrowings
Current portion of long-term debt
Income taxes payable
Accrued bonuses
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt
Accrued severance indemnities
Other long-term liabilities
Total long-term liabilities
Total liabilities:
NET ASSETS
Shareholders’ equity:
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments:
Unrealized gain on available-for-salesecurities
Deferred loss on derivatives under hedge
accounting
Land revaluation reserve
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets-2-(Millions of yen)March 31, 2010

29,791
23,052
15,659
714
1,358
8,266
78,84225,47531,50913,364
342
850
7,258
78,801

16,2086,845
3,599
26,653
105,496

16,364
6,988
3,765
27,118105,920

18,472
23,75037,637(2,355)77,504

18,472
23,75035,007(2,354)74,874

1,532

2,157

(32)
626
(11,074)(8,948)942
69,498
174,994(32)
626(10,517)(7,766)887
67,995
173,916

Ryobi Consolidated Financial Statements for the Second Quarter of Fiscal 2011

2. Consolidated Statements of Operations

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividends income
Rent income
Exchange gain
Gain on sale of scrap
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Cash discounts
Exchange losses
Depreciation
Miscellaneous expenses
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sale of fixed assets
Reversal of allowance for doubtful accounts
Gain on negative goodwill
Total extraordinary income
Extraordinary losses
Loss on disposal of fixed assets
Loss on devaluation of investment insecurities
Loss on adjustment for changes of accounting
standard for asset retirement obligations
Total extraordinary losses
Income (loss) before income taxes and minority
interests
Income taxes
Income before gain on minority interests
Gain (loss) on minority interests
Net income (loss)-3-

Six Months Ended
September 30, 2009
56,09250,125
5,966
9,280(3,313)(Millions of yen)
Six Months Ended
September 30, 2010
80,34065,607
14,732
10,189
4,543

79
57
242
160
52
202
794

14
69
243
—
68
317
713

677
80
—
158
74
992
(3,511)

560
93
157
115
1591,085
4,170

12——
12186
99205

70

99

—

198

—
70

29
327

(3,568)(690)—(15)(2,862)

4,048
1,352
2,696
66
2,630

Ryobi Consolidated Financial Statements for the Second Quarter of Fiscal 2011

3. Consolidated Statements of Cash Flows

Cash flows from operating activities:
Income (loss) before income taxes and minority
interests
Depreciation and amortization
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in reserve for bonuses
Increase (decrease) in accrued severance
indemnities
Interest and dividends income
Interest expensesLoss (gain) on sale or disposal of fixed assets
Decrease (increase) in notes and accounts
receivable
Decrease (increase) in inventories
Increase 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) refund
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
OtherNet 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
Other
Net cash provided by (used in) financing activities
Foreign currency translation adjustments on cash
and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of yearCash and cash equivalents at end of the period-4-

Six Months Ended
September 30, 2009

(Millions of yen)
Six Months Ended
September 30, 2010

(3,568)
5,749

4,048
5,180

5(8)

(11)
507

284
(136)
677
57(142)
(83)
560
(87)

612
2,215
(62)
273
640
(69)
6,671
139(705)
2,140
8,246

(5,375)
(167)
(157)
4,472
935
380
10,058
87
(550)
(342)
9,253

(5,486)(3,524)31(40)
40(9)(1,349)2,367(185)(4,631)

287
(690)
690
(9)
(1,389)1,390(235)(3,480)887
6,976(3,020)
(0)
(189)
4,653

(8,389)6,186(3,763)(0)(204)(6,171)

156
8,424
12,08420,509(70)(468)
23,31922,851

Ryobi Consolidated Financial Statements for the Second Quarter of Fiscal 2011

4. Segment Information
Industry Segment Information
For the Six Months Ended September 30, 2009
(Millions of yen)

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

Die
Castings

Printing
Equipment

Power Tools
and Builders’Hardware36,266

8,569

11,25656,092

56—

136,322

8,569(3,311)(782)

TotalEliminations/ Corporate

Consolidated—

56,09257(57)—

11,25756,149(57)

56,092781(3,312)(0)(3,313)For the Six Months Ended September 30, 2010
(Millions of yen)

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

Die
Castings

Printing
Equipment

Power Tools
and Builders’Hardware58,284

9,957

12,09880,34063—

158,347

9,957

3,931

(547)

Total

Eliminations/ Corporate

Consolidated—

80,340

64

(64)

—

12,09980,405(64)

80,340

1,159

4,543

04,543

Notes:
1. Industry segments are classified on the basis of organization.
2. Main products of each industry segment:
Die Castings: die cast product and aluminum cast
Printing Equipment: offset printing presses, peripherals, etc.
Power Tools and Builders’ Hardware: power tools, lawn and garden equipment, door
closers, hinges and architectural hardware-5-