October 31, 2008

Second-Quarter Consolidated Earnings Report for Fiscal 2009, Ending March 31, 2009This report is an English translation of the Second-Quarter Consolidated Earnings Report (Japanese) that was released inJapan on October 31, 2008.

Company name: Ryobi Limited
http://www.ryobi-group.co.jp
Stock listing: First Section, Tokyo Stock Exchange
Securities code: 5851
Representative: Susumu Yoshikawa, President and COO
Inquiries: Takao Tanaka, Director and Executive Corporate Officer, Finance Department
Tel: +81-3-3501-0511
Scheduled filing date of quarterly earnings report: November 12, 2008
Scheduled commencement date for dividend payments: December 1, 2008
(Millions of yen rounded down)
1. Consolidated Operating Results for the Second Quarter of Fiscal 2009
(April 1, 2008 to September 30, 2008)(1) Consolidated Operating Results (Cumulative)(% figures represent year-on-year increase or decrease)
Net Sales

Operating Income

Ordinary Income

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Second Quarter Fiscal 2009

103,941

―

4,080

―

4,110

―

2,325

―

Second Quarter Fiscal 2008

106,134

8.3

7,353

-9.5

7,350

-11.4

4,286

-21.5

Net Income
per Share

Net Income per
Share after Dilution
Yen

Yen

Second Quarter Fiscal 2009

13.94

—

Second Quarter Fiscal 2008

25.56

—

(2) Consolidated Financial Position
Total Assets

September 30, 2008
March 31, 2008

(Reference)
Shareholders’ equity:

Shareholders’Equity Ratio

Net Assets

Net Assets
per Share%

Millions of yen

Millions of yen

Yen

194,142

76,80939.1

455.05

195,971

77,71839.2

460.79Sept. 30, 2008:
Mar. 31, 2008:

75,887 million yen
76,844 million yen

2. Dividends
Dividends per Share
(Record Date)

Jun. 30

Sept. 30

Dec. 31Mar. 31Annual

Yen

Yen

Yen

Yen

Yen

Fiscal 2008

—

6.00

—

6.00

12.00

Fiscal 2009

—

6.00
—

6.00

12.00

Fiscal 2009 (Forecast)

Note: Revision to dividend forecast in the second quarter of the fiscal year ending March 31, 2009: No
1

3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending March 31, 2009 (April 1,2008 to March 31, 2009)(% figures represent year-on-year increase or decrease)
Operating
Net Income
Net Sales
Ordinary Income
Net Income
Incomeper Share
Full Fiscal Year

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

205,000

-5.2

7,000

-50.8

6,500

-53.2

3,700

-54.9

22.19

Note: Revisions to consolidated operating forecasts in the second quarter of the fiscal year ending March
31, 2009: No *Please refer to Cautionary Statement 1 listed below.
4. Other(1) Changes in Important Subsidiaries during the Period (Changes in Special Subsidiaries
Involving Changes in the Scope of Consolidation):No(2) Application of the Simplified Accounting Method and Special Accounting Practices in the
Preparation of Quarterly Consolidated Financial Statements:
Yes
Note: Please refer to “Qualitative Information / Financial Statements and Other” 4. Other on page
4 for details.
(3) Changes in Accounting Principles, Procedures and Presentation Methods in Connection with
the Preparation of Quarterly Consolidated Financial Statements
a. Changes accompanying revisions to accounting standards: Yes
b. Changes in items other than a. above: Yes
Note: Please refer to “Qualitative Information / Financial Statements and Other” 4. Other on page
4 for details.
(4) Number of Shares Issued and Outstanding (Common Stock)a. Total number of shares issued and outstanding (including treasury stock) as of theperiod-end:
Sept. 30, 2008 171,230,715 sharesMar. 31, 2008 171,230,715 sharesb. Total number of treasury stock as of the period-end:
Sept. 30, 2008 4,464,585 sharesMar. 31, 2008 4,462,347sharesc.

Average number of shares for the period (Cumulative total for the quarterly consolidated
period)Second quarter fiscal 2009 166,766,460 shares
Second quarter fiscal 2008 167,674,715 shares

Cautionary Statement Concerning Operating Results Forecasts and Other Special Items[Regarding the use of operating results forecasts]
1. Operating results forecasts for the full fiscal year have been revised since these were announced on
May 9, 2008. Please refer to “Qualitative Information / Financial Statements and Other,” on page 3, 3.
“Qualitative Information Concerning Forecasts of Consolidated Operating Results” on page 4 and the“Announcement Concerning Revisions to the Results Forecasts” announced (in Japanese only) on
October 10, 2008 for details.
In addition, the aforementioned forecasts were made based on information available to management asof the date of this report. Actual results could differ significantly from forecasts due to a variety offactors.
2. Effective from the fiscal year ending March 31, 2009, the Ryobi Group has applied the AccountingStandard for Quarterly Financial Reporting Statement No. 12 issued by the Accounting Standards
Board of Japan (ASBJ) on March 14, 2007 and the Guidance on Accounting Standard for Quarterly
Financial Reporting Guidance No. 14 issued by the ASBJ on March 14, 2007. Furthermore, quarterly
consolidated financial statements have been prepared in accordance with the Regulation for Quarterly
Consolidated Financial Reporting.

2

[Qualitative Information / Financial Statements and Other]
1. Qualitative Information Concerning Consolidated Operating Results for the Second
Quarter of Fiscal 2009
Regarding consolidated cumulative totals during the first half of fiscal 2009 (April 1, 2008 to
September 30, 2008), indications that the Japanese economy is slowing have increased due to suchfactors as the steep rise of crude oil and raw material prices, both of which remain at high levels, aswell as a decline in capital investment and consumer spending. In addition, the impact of the financial
crisis originating in the United States, drastic rises in the yen and plunging stock prices have, in asingle stroke, exacerbated deteriorating conditions in the business environment. With the financial
crisis spreading throughout the world, it is not only the United States economy being affected; rather,
there are strong indications that economies in such regions as Asia and Europe are falling into
recession.
Based on this situation, Ryobi Limited and its significant subsidiaries (“the Ryobi Group”) have,together with promoting aggressive sales activities, implemented various measures that include thedevelopment of new products responsive to users’ needs, reduction of costs and expenses, andenhanced operational efficiency. Despite these efforts, consolidated cumulative totals during the firsthalf experienced a decline in revenue and earnings compared with the corresponding period of theprevious fiscal year.
Consequently, net sales for the first half totaled ¥103,941 million, a 2.1% decrease compared with thecorresponding period of the previous fiscal year, while operating income dropped 44.5% to ¥4,080
million, ordinary income fell 44.1% to ¥4,110 million and net income for the half decreased 45.8% to¥2,325 million. Earnings declined due to such factors as declining sales accompanying deteriorating
market conditions, steep rises in raw material prices, fluctuations in currency exchange markets and theincreased burden of depreciation and amortization.
Examining sales by industry segment, the Die Castings Business increased 1.5% to ¥72,718 million,
the Printing Equipment Business decreased 13.4% to ¥17,984 million, and the Power Tools andBuilders’ Hardware Business dipped 3.6% to ¥13,238 million. Regarding operating income, the Die
Castings Business fell 28.4% to ¥2,476 million, the Printing Equipment Business dropped 62.8% to¥1,035 million, and the Power Tools and Builders’ Hardware Business decreased 49.0% to ¥568
million.
The Die Castings Business experienced gains in revenue as a result of steady sales to domestic
automobile manufacturers. However, earnings fell due to such factors as the increased burden of
depreciation and amortization. The Printing Equipment Business suffered from a decline in revenue
and earnings stemming from unfavorable export conditions primarily in Europe and North America,
despite experiencing a rise in domestic sales. The Power Tools and Builders’ Hardware Businessexperienced a drop in revenue and earnings due to such factors as severe sales competition and a slow
recovery in the construction market.
Moreover, because the Ryobi Group has applied the Regulation for Quarterly Consolidated Financing
Reporting effective from the fiscal year ending March 31, 2009, comparisons with the corresponding
period of the previous fiscal year and the rate of increase and decrease have been included as
references.

3

2. Qualitative Information Concerning Consolidated Financial Position for the End of
the Second Quarter of Fiscal 2009
Total assets as of September 30, 2008 stood at ¥194,142 million, a decrease of ¥1,829 million
compared with the end of the previous fiscal year. This was due to a reduction in current assets such as
finished products and purchased goods, and work in process, as well as an increase in fixed assets suchas property, plant and equipment.
Liabilities decreased ¥919 million to ¥117,333 million due to a decline in such areas as current
liabilities related to payment of capital investment liability. Interest-bearing debt, excluding discounted
notes receivable and lease obligations, increased ¥2,495 million to ¥47,653 million compared with theend of the previous fiscal year.
Net Assets dropped ¥909 million from the end of the previous term to ¥76,809 million. Contributing
factors include a declared increase of ¥2,325 million in quarterly net income and dividend payments of¥1,000 million. Also included is a decline in line with past goodwill adjustments as a result of unified
accounting procedures for subsidiaries outside Japan. Shareholders’ equity, subtracting minority
interests from net assets, amounted to ¥75,887 million and shareholders’ equity stood at 39.1%.

3. Qualitative Information Concerning Forecasts of Consolidated Operating Results for
the Fiscal Year Ending March 31, 2009
Operating results forecasts for the fiscal year ending March 31, 2009 remain unchanged since theOctober 10, 2008 announcement of revisions.
As a result of the expanding global financial uncertainty, fluctuations in currency exchange markets,and the sluggish United States economy, which is typified by the automobile manufacturing industry,the ongoing economic recession intensified in both the domestic and overseas economies.
Due to these factors, there are concerns that the situation may deteriorate further, extending beyond an
anticipated decline in the Die Castings Business’ sales to automobile manufactures in Japan and theUnited States, and a reduction in the Printing Equipment Business exports primarily to Europe andNorth America. Despite these severe operating conditions, the Ryobi Group is aiming to improve
results by focusing on such initiatives as expanding sales, improving productivity by reducing costs
and further enhancing operational efficiency.

4. Other(1) Changes in Important Subsidiaries during the Period (Changes in Special Subsidiaries
Involving Changes in the Scope of Consolidation):
None(2) Application of the Simplified Accounting Method and Special Accounting Practices in the
Preparation of Quarterly Consolidated Financial Statements:(Simplified Accounting Method)a. Calculation method for estimating future credit write-offs of normal receivables
Recognizing that no significant changes have arisen with regard to the estimated bad debt
write-off ratios at the end of the previous fiscal year, the actual bad debt write-off ratio as ofMarch 31, 2008 has been used to calculate estimated future credit write-offs of normal
receivables.
4b. Calculation method for depreciation and amortization of fixed assets
With respect to fixed assets that adopt the declining-balance method as a method for
determining depreciation, the amount of depreciation and amortization for the fiscal year
ending March 31 2009 is divided proportionally.
(Special Accounting Practices in the Preparation of Quarterly Consolidated Financial Statements)
Tax expenses are calculated by reasonably estimating the effective tax rate after the application of
tax accounting on income before income taxes and minority interests in the consolidated fiscal year,
including the second quarter of the fiscal year ending March 31, 2009, and multiplying income
before income taxes and minority interests for the second quarter of the fiscal year ending March
31, 2009 by said estimated effective tax rate. The adjusted amount for income tax is shown to
include income taxes.

(3) Changes in Accounting Principles, Procedures and Presentation Methods in Connection with
the Preparation of Quarterly Consolidated Financial Statements:(Changes Accompanying Revisions to Accounting Standards)
a. Effective from the fiscal year ending March 31, 2009, the Ryobi Group has applied the
Accounting Standard for Quarterly Financial Reporting Statement No. 12 issued by the
Accounting Standards Board of Japan (ASBJ) on March 14, 2007, as well as the Guidance on
Accounting Standard for Quarterly Financial Reporting Guidance No. 14 issued by the ASBJ
on March 14, 2007. Furthermore, quarterly consolidated financial statements have been
prepared in accordance with the Regulation for Quarterly Consolidated Financial Reporting.
b. In connection with inventories held for sale in the ordinary course of business, the Ryobi
Group had mainly adopted the average method. Effective from the first quarter of the fiscal
year ending March 31, 2009, the Ryobi Group has adopted ASBJ Statement No. 9“Accounting Standard for the Measurement of Inventories.” As a result, inventories are inprinciple stated at cost, cost being determined by the average method (with book values
written down due to decreased profitability of balance sheet inventories held for sale in theordinary course of business).
Taking into consideration this change in accounting standard on consolidated cumulative
totals during the first half of the fiscal year ending March 31, 2009, operating income,ordinary income, and income before income taxes and minority interests each declined by¥128 million.
c.

Practical solution on unification of accounting standards applied to foreign subsidiaries forconsolidated financial statements
From a consolidated account settlement perspective, the Ryobi Group has undertaken all
essential adjustments following adoption of the Practical Issues Task Force No. 18 “Practical
Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements” issued by the ASBJ on May 17, 2006 from the firstquarter of the fiscal year ending March 31, 2009.
Regarding the consolidated balance sheet for the quarter, taking into consideration this changein accounting standards, retained earnings decreased ¥785 million, but only had a slight
impact on consolidated operating income, ordinary income, and income before income taxes
and minority interests during the first half of the fiscal year ending March 31, 2009.

5

d. Application of accounting standards for lease transactions
From the first quarter of the fiscal year ending March 31, 2009, the Ryobi Group adopted the“Accounting Standard for Lease Transactions” (ASBJ Statement No. 13 issued on June 17,1993 and last revised on March 30, 2007) and the “Guidance on Accounting Standard forLease Transactions” (ASBJ Guidance No. 16 issued on January 18, 1994 and last revised on
March 30, 2007). Accordingly, the method of accounting for finance leases that do not transfer
ownership changed from treating such leases as rental transactions to treatment assale/purchase transactions, recognizing them as lease assets. Depreciation equivalent iscomputed on a straight-line method over the lease period without residual value.
Based on this change in accounting standards on consolidated cumulative totals during thefirst half of the fiscal year ending March 31, 2009, operating income and ordinary income,each increased by ¥34 million and ¥12 million respectively, while income before income taxes
and minority interests decreased by ¥93 million.
e.

Changes in the classification of die casting dies
Applying unified accounting procedures to subsidiaries outside Japan for the presentation ofquarterly consolidated financial statements in the first quarter of the fiscal year ending March
31, 2009, we revised the classification of Ryobi Limited and its subsidiaries’ die casting dies,
redistributing a portion of die casting dies from inventories to fixed assets.
This change in this accounting standard had no affect on operating income, ordinary income,and income before income taxes and minority interests during the first half of the fiscal year
ending March 31, 2009. Based on the consolidated balance sheets for the second quarter of thecurrent fiscal year finished products and purchased goods decreased ¥2,962 million at the
beginning of the fiscal year, while other fixed assets in property, plant and equipment
increased the same amount. Work in process decreased ¥3,055 million, while construction inprogress increased the same amount.

(Additional Information)
As a result of reviewing its use of assets and other factors in the wake of revisions to the
Corporate Tax Law, the Ryobi Group and its domestic subsidiaries have changed the useful life ofmachinery and equipment from 4 to 13 years to 4 to 12 years beginning from the first quarter ofthe fiscal year ending March 31, 2009.
Taking into consideration this change in accounting standards, operating income fell ¥435 million,
while ordinary income and income before income taxes and minority interests each decreased¥482 million respectively during the first half of the fiscal year ending March 31, 2009.

6

5. Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending
March 31, 2009(1) Second Quarter Consolidated Balance Sheets
September 30, 2008ASSETS
Current assets:
Cash and cash equivalents
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:
Goodwill
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

7(Millions of yen)March 31, 2008

10,837
41,687
3,014
16,09910,518
9,183
4,501
(39)
95,803

8,925
43,292
3,514
19,991
14,312
7,552
4,644
(61)
102,171

19,96827,282
21,6707,671
7,040
83,634

20,791
29,411
21,6992,621
2,639
77,163

118
1,277
1,395

946
1,308
2,254

9,709
3,660
(60)
13,30998,339194,142

10,6493,776(43)
14,38293,800195,971September 30, 2008
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

8(Millions of yen)March 31, 2008

42,626
23,404
5,306
1,575
2,102
11,061
86,076

43,57021,490
6,002
2,049
2,192
13,76089,066

18,942
6,514
5,799
31,256
117,333

17,6636,320
5,202
29,186
118,252

18,472
23,75039,773(1,426)80,56918,472
23,75039,234(1,425)80,031

2,477

3,094

(26)

(40)

626
(7,759)(4,682)922
76,809194,142626(6,867)(3,187)874
77,718
195,971(2) Second Quarter Consolidated Statements of Income (Cumulative)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Rental income
Exchange gain
Gain on sales scrap
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Cash discounts
Depreciation expenses
Miscellaneous expenses
Total non-operating expenses
Ordinary income
Extraordinary income
Gains on sale of fixed assets
Gains on sale of golf course membership
Reversal of allowance for doubtful accounts
Total extraordinary income
Extraordinary losses
Loss on sale or disposal of fixed assets
Cumulative effect of lease accounting standards application
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Gains on minority interests
Net income for the period

9(Millions of yen)First Half of the
Fiscal Year Ending March 31,
2009
103,941
87,58916,351
12,271
4,080
32
103
312
78
84
388
1,000
545
85
218
121
970
4,110
37
1
4
43
116
106
222
3,931
1,552
53
2,325

(3) Second Quarter Consolidated Statements of Cash Flows (Cumulative)(Millions of yen)First Half of the
Fiscal Year Ending March 31,
2009
Cash flows from operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Decrease in allowance for doubtful accounts
Decrease in reserve for bonuses
Increase in accrued severance indemnities
Interest and dividends income
Interest expenses
Loss on sale or disposal of fixed assets
Decrease in notes and accounts receivable
Increase in inventories
Decrease in other current assets
Decrease in notes and accounts payable
Other decreases 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 and equipment
Proceeds from sale of property, plant and equipment
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 deposit
Other
Net cash used in investing activities
Cash flows from financing activities:
Increase in short-term borrowings, net
Proceeds from long-term debt
Repayment of long-term debt
Acquisition of treasury stock
Proceeds from sale of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other
Net cash provided by financing activities
Foreign currency translation adjustments on cash and cash
equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of the period

10

3,931
7,189
(4)
(89)
193
(136)
545
79
1,363
(156)
79
(653)
(593)
59
11,806139(534)(1,998)9,412(9,407)
61
(690)
690
(66)
(559)
777
(95)
(9,290)2,132
4,293(3,572)(1)
0(1,000)
(0)
(228)
1,622
(115)
1,630
10,138
11,768Effective from the fiscal year ending March 31, 2009, the Ryobi Group has applied the AccountingStandard for Quarterly Financial Reporting “(Statement No. 12 issued by the Accounting Standards
Board of Japan (ASBJ)) on March 14, 2007 and the Guidance on Accounting Standard for Quarterly
Financial Reporting “(Guidance No. 14 issued by the ASBJ) on March 14, 2007. Furthermore, quarterly
consolidated financial statements have been prepared in accordance with the Regulation for Quarterly
Consolidated Financial Reporting.

(4) Notes Regarding Going Concern Assumptions
None.
(5) Segment Information[Industry Segment Information]
For the First Half of the Fiscal Year Ending March 31, 2009 (April 1, 2008 to September 30,
2008)(Millions of yen)
Die
Castings

Printing
Equipment

Power Tools
and Builders’Hardware

Total

Sales:(1) UnaffiliatedCustomers(2) Intersegment

72,71817,984

13,238

84

―

Total

72,802

Operating Income

2,476

Notes:
1.
2.

Eliminations

Consolidated

103,941―

103,941

0

84

(84)

―

17,984

13,238104,025(84)

103,941

1,035

568

4,079

0

4,080

Industry segments are classified on the basis of organization.
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[Geographical Segment Information]
For the First Half of the Fiscal Year Ending March 31, 2009 (April 1, 2008 to September 30,
2008)(Millions of yen)
Japan

The
Americas

Sales:(1) UnaffiliatedCustomers(2) Intersegment

87,36012,212

4,368

103,941―

103,941

1,707

―

3,607

5,315

(5,315)―

Total

89,068

12,212

7,975

109,256(5,315)

103,941

Operating Income

3,624

402

130

4,157

(77)

4,080

Other

Total

Eliminations

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:(1) The Americas: United States, Mexico(2) Other: United Kingdom, China
11

Consolidated

[Overseas Sales]
For the First Half of the Fiscal Year Ending March 31, 2009 (April 1, 2008 to September 30,
2008)(Millions of yen)
The Americas
Overseas Sales

Europe15,751

10,600

Other

Total

4,986

103,941

Consolidated Net Sales
Ratio of Overseas Sales toConsolidated Net Sales (%)

31,339

15.2

10.2

4.8

30.2

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:(1) The Americas: United States, Mexico, other(2) Europe: United Kingdom, Germany, other(3) Other: China, Australia, other
3. Overseas sales represent total sales outside Japan of the parent company and its consolidated
subsidiaries (excluding intra-group sales).
(6) Notes Regarding Substantial Changes in Shareholders’ Equity
None.

12

[Reference Material]
Financial Statements for the First Half of the Fiscal Year Ended March 31, 2008
(1) Consolidated Statement of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
RentalExchange gain
Gain on sales scrap
Cash dividends for group term insurance
Miscellaneous income
Non-operating expenses
Interest expenses
Cash discounts
Depreciation expenses
Miscellaneous expenses
Ordinary income
Extraordinary income
Gains on sale of fixed assets
Gains on sale of investment in securities
Reversal of allowance for doubtful accounts
Extraordinary losses
Loss on sale or disposal of fixed assets
Loss on sale of investment in securities
Loss on revaluation of investment in securities
Income before income taxes and minority interests
Income taxes, local taxes and business taxes
Adjusted amount for income taxes
Gains on minority interests
Interim net income

13First Half of the
Fiscal Year Ended March 31, 2008
Amount%(Millions of yen)
106,134
100.0
86,396
81.4
19,73718.6
12,383
11.7
7,353
6.9
876
0.8
59
90
226
34
76
108
281
879
0.8
530
87
77
183
7,350
6.9
18
0.0
8
0
9
157
0.1
80
75
0
7,211
6.8
2,856
2.7
56
0.1
11
0.0
4,286
4.0

(2) Consolidated Statement of Cash Flows(Millions of yen)First Half of the
Fiscal Year Ended March 31,
2008
Cash flows from operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Decrease in allowance of doubtful accounts
Increase in reserve for bonuses
Decrease in accrued severance indemnities
Interest and dividends income
Interest expenses
Loss on sale of investment in securities
Loss on revaluation of investment in securities
Loss on sale or disposal of fixed assets
Decrease in notes and accounts receivable
Increase in inventories
Increase in other current assets
Increase in notes and accounts payable
Other decreases 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 purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payment for purchase of marketable securities
Proceeds from sale of marketable securities
Payment for purchase of investment in securities
Proceeds from sale of investment in securities
Payment for time deposits
Proceeds from repayment of time deposit
Other
Net cash used in investing activities
Cash flows from financing activities:
Increase in short-term borrowings, net
Proceeds from long-term debt
Repayment of long-term debt
Acquisition of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Net cash provided by 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
Cash and cash equivalents at end of the period

14

7,211
4,890
(10)
55
(99)
(150)
530
75
0
72
177
(3,473)
(667)
412
(802)
(169)
8,052
179
(532)
(5,168)2,531(9,064)
31
(650)
650
(820)
186
(559)
577
(216)
(9,865)1,815
5,800(1,719)(403)(2,013)
(0)
3,479
80
(3,773)
17,611
13,838

(3) Segment Information[Industry Segment Information]
For the First Half of the Fiscal Year Ended March 31, 2008 (April 1, 2007 to September 30, 2007)(Millions of yen)
Die
Castings

Printing
Equipment

Power Tools
and Builders’HardwareSales:(1) UnaffiliatedCustomers(2) Intersegment

71,627

20,767

13,738

110

―

Total

71,738Operating Costs andExpenses
Operating Income

Notes:
1.
2.

Total

Eliminations

Consolidated

106,134―

106,134

1

111

(111)

―

20,767

13,739106,245(111)

106,134

68,281

17,985

12,624

98,891(111)

98,780

3,456

2,782

1,115

7,353

0

7,353

Industry segments are classified on the basis of organization.
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[Geographical Segment Information]
For the First Half of the Fiscal Year Ended March 31, 2008 (April 1, 2007 to September 30, 2007)(Millions of yen)
Japan

The
Americas

Sales:(1) UnaffiliatedCustomers(2) Intersegment

88,875

12,8304,427

106,134―

106,134

1,665

268

3,816

5,750

(5,750)―Total

90,541

13,0998,243

111,884(5,750)106,134

Operating costs
and expenses

83,853

12,656

8,028

104,538(5,757)

98,780Operating Income

6,687

443

215

7,346

7

7,353

Other

Total

Eliminations

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:(1) The Americas: United States, Mexico(2) Other: United Kingdom, China

15

Consolidated

[Overseas Sales]
For the First Half of the Fiscal Year Ended March 31, 2008 (April 1, 2007 to September 30, 2007)(Millions of yen)
The Americas
Overseas Sales

Europe17,983

11,883

Other

Total

5,639

106,134

Consolidated Net Sales
Ratio of Overseas Sales toConsolidated Net Sales (%)

35,505

17.0

11.2

5.3

33.5

Notes:
1. Country and regional segments are classified on the basis of geographic proximity.
2. Principal countries and regions:(1) The Americas: United States, Mexico, other(2) Europe: United Kingdom, Germany, other(3) Other: China, Australia, other
3. Overseas sales represent total sales outside Japan of the parent company and its consolidated
subsidiaries (excluding intra-group sales).

16