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/
July 2022©RYOBI LIMITED 2022 Printed in Japan

Table of Contents

Editorial policy
This integrated report was created to inform our shareholders, investors, and other stakeholders about our
financial and non-financial efforts for value creation.
Going forward, we will use this integrated report as oneof our communication tools to further enhance thedisclosure of information to our stakeholders. Please
note that the Value Reporting Foundation's (VRF)International Integrated Reporting Framework and theMinistry of Economy, Trade and Industry's Guidance forIntegrated Corporate Disclosure and Company-Investor
Dialogues for Collaborative Value Creation were used
as references during the editing process.
In the report, the entire group, including Ryobi Limited
and consolidated subsidiaries (domestic and overseas),
is referred to as "Ryobi", and Ryobi Limited by itself as"Ryobi Limited".

03

Ryobi's core values

05

Message from top management

11

Ryobi by the numbers

13

History of Ryobi's growth

15

Value creation process

17

Cultivated strengths: (1) Die casting technology (2) Global production structure(3) Manufacturing capabilities cultivated through die casting
Value creation story

Die cast products used in automobiles

25

Business environment awareness and materiality

27

Medium-term objectives and our initiatives

29

Ryobi's challenge: Die Castings Business

31

Ryobi's challenge: Addressing global environmental issues
Aluminum die casting contributes to solving global environmental problems by reducing

Covered in this report
Period: January 2021 to December 2021
(Some sections include information fromJanuary 2022 or later.)weight and recycling resources
Door closer to ensure quiet and secure closing

33

Ryobi's challenge: Builders' Hardware Business

35

Ryobi's challenge: Printing Equipment Business

Scope: Ryobi Limited and 19 subsidiaries(As of December 31, 2021)

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.

High-precision, multi-functional offset printing press

39

Environmental initiatives

41

Declaration of carbon neutrality

43

Social initiatives

47

Governance51

10-year financial highlights

53

Consolidated financial statements

57

Organization profileRYOBI
INTEGRATED REPORT 2022
01

Ryobi Integrated Report 2022

Ryobi Integrated Report 202202

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
Ryobi's corporate philosophy issupported by three elements:"Corporate Mission","Management
Mission"and "Employees' Mission."

Corporate Mission

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

Corporate
Value the trust andgoodwill of society, andstrive to become astrong, dynamic
organization that reflects
the originality andcreativity of individual
employees

Philosophy
Management

Employees'

MissionMissionRefine yourintelligence andpolish your mind tohave a wide
perspective, andchallenge goals withenthusiasm

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

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

Long-term vision03

Corporate message

Medium-term objectives Lightening vehicle weight

Harnessing the properties of aluminum and die casting technologies

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

Combining die castings andfinished products to be chosen bycustomers around the world

Beyond Ideals and Dreams

Ryobi's long-term vision outlines where our company

Our corporate message represents our corporate

Lightening the impact on the environment

wants to be in the future. It represents an image thatphilosophy condensed into one sentence, and serves

we share throughout our organization, and indicates

to convey Ryobi's medium to long-term approach

Doing our part in the global effort toward carbon neutrality and a circular
economythe direction for our efforts to resolve business issues.

and direction to various stakeholders in an easily

Lightening workstyles

understandable manner.

A variety of systems to support employees on their career paths

Ryobi Integrated Report 2022

Lightening the load
worldwide

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

Ryobi Integrated Report 2022

04

Going "Beyond Ideals and Dreams"in the decarbonization era throughconsistent engagement andlightweighting technology.

Message from top management

From Akira Urakami
to each of you
Introduction
The Ryobi Group has published this Ryobi Integrated Report
2022 to proactively disclose both the financial aspects of its

customers and society and by creating and providing
innovative, top-quality products and services.

corporate activities as well as its ESG and other non-financial

Guided by this corporate philosophy, and to share theinitiatives. We hope to help as many people as possible

medium- to long-term vision and direction within the entire

understand the medium- to long-term growth potential andgroup, we formulated a new corporate message in 2019:

strengths of the Ryobi Group.

"Beyond Ideals and Dreams". This message is used internallyThis integrated report serves as a tool to communicate withand externally to express our eagerness to listen to the ideals

our various stakeholders, including shareholders and investors,

and dreams of our various stakeholders, including customers,

as we strive to further improve our sustainable enterprise value.

shareholders, investors, employees, and business partners,

In a period of global uncertainty, we aim to be a company thatcan both solve social issues and grow our business―goals weand our commitment to go beyond what is required of us.
We intend to realize this philosophy by demonstrating its
spirit to stakeholders through a wide range of corporate

are determined to achieve.

activities, from our products and services to human resource
development systems and business practices. We will continue
to expand our initiatives and activities to inform all those

Realizing our corporate philosophy

involved through various touchpoints. We believe that by

Becoming an indispensable entity

fosteringunderstanding

and

the

resulting

sense

of

commonality, we can ensure trust in the Ryobi Group going"Create a sound and dynamic corporation throughforward.

technology, trust, and challenge." This corporate philosophy is

Under the guidance of our corporate philosophy andthe foundation for our corporate activities and represents thecorporate message, we will make every effort to develop

beliefs and ideals of the entire group, as well as our basic

ourselves as both a die casting specialist and producer ofapproach to management. We seek to establish ourselves as

finished products, and make sure that all those involved will findan indispensable entity by responding to the needs oftheir association with the Ryobi Group rewarding.

Offsetprinting presses

Door closers           
   
   

Akira Urakami
President and CEO
Ryobi Limited

Message fromtop management05

Ryobi Integrated Report 2022 

Automobile
parts

Automobile
parts
Door closers 
 
      

Ryobi Integrated Report 2022

06

Message from top management

Die Castings Business

Strengthening our strategic product range for lightweight, next-generation automobiles
As the mitigation of climate change and carbon neutrality
have become global issues, one environmental change that will
help decarbonize society is the electrification of automobiles.
This development will have a significant impact on the die
casting business―a core activity of the Ryobi Group.
We estimate that battery electric vehicle (BEV) will account for
about 30% of new vehicle sales in major countries by 2030,
rising to about 70% by 2050. While automobiles with an internal
combustion engine consist of around 30,000 components,
some predict that for BEV, these will be reduced to 20,000. As
a supplier of aluminum die cast products such as engine blocks
and transmission cases, Ryobi could be faced with reduced
demand due to this development. At the same time, thenumber of hybrid vehicles (HVs) and plug-in hybrid vehicles(PHVs) is expected to increase gradually throughout the 2030s,
and the market for combustion engine vehicles will continue tostay strong in emerging countries in Asia, the Middle East, andLatin America. Looking at this trend, we believe that the overall
demand for die cast products and applicable parts will increase
toward 2035-40.

Medium-term management plan from 2022
Our medium-term management plan for the three years from2022 is based on our policy of identifying and promoting thechanges (functions and capabilities to be strengthened) necessary
for our sustainable growth as a company. We recognize thatsociety expects companies to provide products and services that
help solve social issues and to increase not just economic value,
but social value as well.
In order to be a sustainable company in a world with rapidly
shifting values, we have reviewed our ESG perspectives todetermine which social issues need to be solved and what
measures we should take to achieve these solutions. First, we
identified materiality (key issues); this includes social issues,
stakeholder expectations, and the current and future businessenvironment. We then aim to reduce risks and create new
business opportunities.
The Ryobi Group's objectives for the medium-term is "lightening
the load worldwide", and our actions for solving the issues wehave identified embody these objectives in order to reduce CO2
emissions and contribute to a circular economy, we are making
automobiles lighter, and in turn, this makes the material and mental
burden on our stakeholders lighter.
In the environmental area (E), we aim to expand the applicationof weight-reducing aluminum die cast products for the automotive
industry, where there is a growing trend toward electrification. This

07

Ryobi Integrated Report 2022

will contribute to the reduction of CO2 emissions and realization ofa decarbonized society. We will also step up our efforts to reduce
the environmental impact of our business operations and achievecarbon neutrality by conserving energy and resources, andreducing and recycling industrial waste.
In the social area (S), we are working to establish a "safety
culture" that prioritizes safety in all aspects of our corporate
activities, to create a safe and comfortable work environment for all
our employees across the entire group. We invest in the development of our core personnel, so they can lead the way toward
future groundbreaking developments. We also work to improve
our work environment and review systems to allow employees'
diverse personalities and abilities to flourish.

The use of electric vehicles will spawn demand for lower
electricity consumption and longer cruising ranges, whichmeans that cars will need to become increasingly lighter. Steelis estimated to account for about 70% of automobile weight.
The development of so-called "material substitution", wheresteel is replaced with interchangeable lightweight materials, isconsidered an opportunity to accelerate the transition towardaluminum die castings. This is due to the fact that aluminum islightweight, with a relative density of about 1/3 that of steel.
Another advantage is the fact that aluminum die castings use
secondary alloys as raw materials, which are part of an existing

recycling system. The use of these resource-recycling materials
contributes to the realization of a circular economy.
The Ryobi Group strategically positions products for electricvehicles, such as battery cases and E-Axle cases as well as
body and chassis products, as a growing market for die
casting, and we will make these 41% of our total die castingsales by 2027 (from 7.2% in 2021).
We also continue to actively promote our products to designand development engineers at trade shows and in our sales
activities. At the Automotive Engineering Exposition 2022 in
Yokohama, we drew much attention as we highlighted theenvironmental performance and weight-reducing technology ofaluminum die casting, and how it contributes to achievingcarbon neutrality.
There are two important trends in the die casting technology
for the electrification of automobiles: the creation of larger parts
and integrated molding. An important feature of aluminum die
casting is the ability to form complex shapes in one piece. Thisfeature has enabled a growing trend toward large-scale
integrated molding through die casting, which has the added
benefit of reducing both the necessary number of parts andhuman labor. This reduces the need for manual assembly,
resulting in lower costs, as well as leads to fewer CO2 emissions
as vehicles become lighter.
Ryobi has expertise in large parts, as shown by our trackrecord of mass production of subframes and body chassis
products in particular. Currently, we recommend our customers
to replace steel plate part material such as battery cases andrear body parts. This has produced positive outcomes andresulted in new orders.

In the governance area (G), we strive to ensure continuous andconsistent business activities by strengthening our organizational
infrastructure through the promotion of risk management andcompliance for dealing with frequent natural disasters and cyberattacks.
Our ESG and CSR are subject to external institutional evaluation. We have been participating in the CDP (Carbon Disclosure
Project) since 2017, and we achieved a "B-" rating in 2021 for ourefforts in the areas of climate change and water security. In
addition, we received a Bronze rating in the 2021 Sustainability
Survey by EcoVadis, a French CSR evaluation agency.

Ryobi Integrated Report 2022

08

Message from top management

Builders' Hardware Business

Printing Equipment Business

A commitment to "challenge" inherited from past generations

For safe and comfortable door use

Supporting smart factory construction

Aiming to be a sound and dynamic corporation

As we strive to realize an inclusive society in which citizens
are free and independent while still supporting one another, we
see a growing trend in barrier-free and other inclusive designprinciples. The Barrier-Free Act (Act on Promotion of SmoothTransportation, etc. of Elderly Persons, Disabled Persons, etc.),
which went into effect in 2006, promotes barrier-free streets
and buildings to allow the elderly and people with disabilities toremain mobile with minimal physical or mental obstacles. As amanufacturer of builders' hardware, we believe that this is anarea we should focus our attention on.

Commercial printing, which has a particularly large impact on
the sheet-fed offset printing press sector, has seen a shrinking
market in recent years due to the spread of ICT, such as
smartphones, tablet devices, social media, and cloud services.
At the same time, the evolution of network infrastructure has led
to major changes in consumer behavior and lifestyles, including
an increase in the number of online shoppers. This has resulted
in the emergence of several promising fields, such as the
package and label printing market, which continues to show
strong performance.

From our founding in 1943 to the present day, the Ryobi Grouphas gone through several major turning points. These turning
points have always come about through our efforts to challenge

Our main products, door closers, contribute to the realizationof a barrier-free and inclusive society through their application inhouses, condominiums, and commercial facilities, allowing forsafe and comfortable door use. Capable of shutting doors
securely and quietly at a safe speed, Ryobi's door closers arewidely used and have earned a long-standing, consistent
reputation as products that support safety and comfort in an
unobtrusive way.

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. The decline in thenumber of skilled workers makes it increasingly difficult tomaintain printing quality and productivity. Ryobi Group
company RYOBI MHI Graphic Technology Ltd. (RMGT) aims tosolve this problem by utilizing automated equipment for printingpresses, digital control system-driven automatic printing quality
management, and other systems that do not require special
skills.

Our automatic door controller RUCAD, launched in 2019, is a
popular product that assists wheelchair users and people withdisabilities, as well as users who do not have a free hand toopen or close doors. RUCAD extends the functionality of
conventional door closers and is a strategic product with a wide
range of applications, from single-family houses, hotel rooms,
and offices. A touchless access model is also available to meetneeds brought about by the COVID-19 pandemic.

09

Ryobi Integrated Report 2022

To optimize automation and minimalize human laborthroughout the printing plant, we support the building of smart
factories. This includes connecting various machines andsystems through a network, and the use of automated guided
vehicle (AGV) robots to transport paper. Guided by its corporate
message "IRODORI - Coloring the World Together", RMGT
actively collaborates with related companies such as peripheral
equipment manufacturers.

the status quo. This tradition and spirit of "challenge"―ourcorporate philosophy―has been handed down from generation
to generation as an essential set of values.
The name RYOBI evokes an image and perceptions that varyfrom generation to generation and region to region. Currently,
Ryobi is active in three business fields: die casting, builders'
hardware, and printing equipment. In the past, we were also
involved in the manufacture of fishing gear, power tools, andgolfing goods. Although the trademarks and operations ofthese latter activities have now either been transferred or
discontinued, our history has laid the foundation for what we
consider an indispensable asset: the trust and appreciation that
we receive from society today. Throughout our history, Ryobi
has taken up numerous challenges, and the knowledge andinnovation gained through trial and error continue to be passedon as the tradition and spirit that our company values. In the
future, too, we will continue to turn challenges into assets
through repeated PDCA cycles, and in this way, pave the way
for development and innovation.
A major, high-priority issue that manufacturing companies
face is the safety of employees and our various partners. This isfollowed by other important topics such as productivity
improvement, development of forward-looking technology,
QCD, and marketing. Another issue that cannot be overlookedby companies wanting to be future-proof is balancing

economic value and social value. At Ryobi, we look at all ofthese issues as opportunities to challenge the status quo. As
we take on these challenges, we are committed to earn theappreciation of our customers as well as various otherstakeholders.
Ryobi has grown into one of the world's leading die casting
manufacturers. We currently have production facilities in six
countries and are a global supplier of die cast products forautomobile manufacturers around the world. We also continue
to hold a large share of Japanese market for door closers andother builders' hardware, and our sheet-fed offset printingpresses are now used in more than 170 countries and regions.
In a constantly changing and competitive businessenvironment, Ryobi will continue to take up new challenges,
and ensure sustained future growth. In order to live up to ourimage of a sound and dynamic corporation, we are committed
to developing forward-looking technologies, products, andservices, as we pave the way toward a better tomorrow.
We thank you for your continued understanding and supportof the Ryobi Group.
July 2022

President and CEO
Ryobi Limited

Ryobi Integrated Report 202210

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 2021

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

4.8% 9.6

9.3% 18.4

billion yen

198.1 billion yen-1.5 billion yen

Ordinary profit

Profit attributableto owners of parent

0.0 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.

Operating profit-4.4 billion yen

Ordinary profit-to-total
asset ratio(%)

Cash flows from operating
activities

0.0%

14.9 billion yen

Capital expenditures

Equity ratio

13.1 billion yen

44.0%

Net sales for the year ended December 31, 2021 increased 16% from the previous year to 198.1 billion yen due to the economic
recovery after the COVID-19 pandemic, partly resulted from increased vaccination rates and the continued recovery of overseas

For the year ended
December 31, 2021
Net sales

economies. Although operating loss and ordinary profit improved due to the increase in sales, loss attributable to owners of parent
was posted for the second consecutive year due to a 4.1 billion yen impairment loss on fixed assets at a U.K. subsidiary.

198.1

Non-financial indicators

billion yen
Die Castings Business

Domestic/Overseas sales ratio

Sales composition ratio

85.8% 169.9
Business domain

Ryobi Integrated Report 2022

347 thousand t-CO /year
2

Percentage of women in
managerial and supervisory
positions(Ryobi Limited)billion yen

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.

11

CO2 emissions

Overseas

Domestic

47.7% 52.3%

14.0%

Waste recycling ratio

99.2%

Average employee
tenure(Ryobi Limited)

19.0 years

For the fiscal year ending December 31, 2022, we expect consolidated net sales to increase 21% year-on-year to 240 billion yen,operating profit to 5.3 billion yen, ordinary profit to 5.4 billion yen, and profit attributable to owners of parent to 3.8 billion yen, assumingthat automobile production and sales will improve as the economy gradually recovers.

Ryobi Integrated Report 2022

12

History of Ryobi's growth

1943

1950

1960

Challenge to create a verticallyintegrated system from scratch
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.

1970

Challenge to create
finished products based on
our cultivated technology
Ever since our foundation, we
have recognized the need todiversify risks by doing business with a variety of industries. Further expanding thisidea, 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.

1980

1990

2000

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

Ryobi Seisakusho was not yet widely known. To improve Ryobi's name recognition, the company name was changed to the current Ryobi Limited in 1973, anda 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 challenge of 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
1994 Founded Ryobi Dalian Machinery Co., Ltd., presently called KYOCERARYOBI (Dalian) Machinery Co., Ltd.

20102020 2022 (Year)

Challenging through selection and concentration

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

However, this strategy of broadening the business fields did not produce the expected results, and Ryobi suffereda 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 a policy
for concentrating resources on areas of strength.
2000 Transferred the North American power tool and garden equipment operations; transferred fishing tackle
business
2001 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 castproducts 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.

Current Ryobi Die Casting(USA), Inc.

(Unit: billionsof yen)300

1973 1975

1943 Founded Ryobi Seisakusho Co., Ltd.

Introduced a corporate identity
system (CIS)

Changed company nameto Ryobi Limited
1966

200

Started manufacturing
die cast products

1962

Changed the fiscal year end
from March 31 to December 31
Net sales for the year
ended March 31, 20181989

Founded a
production facility
Founded a productionin Thailand
facility in Mexico
2005 20072010 20112017

Founded a production facility
in the U.K.
1990

Established a production facility
in the U.S.

Began production
by low pressure
die casting

Founded a
production facility
in Dalian, China

Acquired capital inTokyo Light Alloy Co., Ltd.

Founded a
production facility
in Changzhou, China

1971

1982 1983

1974

Founded asales basein Australia

Started sales ofpower tools

Foundeda sales basein Europe

1963

100

1986
Startedmanufacturing
overseas

1966

1978

Startedproduction of
A3-sizeoffset printingpressesStarted salesof own brandproducts

Started sales of
A2-size offset
printing presses

1950

Started sales of manualphototypesetters
Started development and sales of fonts

Ryobi Integrated Report 2022

1960

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

2000

1970

Transferred power tools businessStarted productionin Dalian, China

Started sales of automaticdoor controller RUCAD

1994

2019

2000

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. 33-34

2014

Started sales of
products equippedwith LED-UV printing system
Started sales of B1-size
offset printing presses
2009

Joint venture RYOBI MHI Graphic
Technology Ltd. commenced
operations

Printing Equipment
Business
p. 35-36

2011

Ended sales
Transferred font operationsof phototypesetters

Started sales of electronic
phototypesetters

1980

Die Castings Businessp. 29-32

Acquired Hoei
Industries Co., Ltd.,a manufacturer offorged aluminum products

2018Transferred North American operations

1999

1970

*This graph shows changes in net sales.

1994

1987

Started productionof door closers

0

1988

Started manufacturing
door closers in Taiwan

1961

2018

Developed the GD squeeze casting

Founded a sales base in the U.S.
1968

Net sales for the transitional
fiscal period ended
December 31, 20182002 Discontinued the golfing goods business

1985

1966 Started zinc die casting production

Startedmanufacturing
power tools

13

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

1961

Founded Tokyo Light Alloy Co., Ltd.
Began production by sandcasting and gravity die casting

1943

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

Started manufacturing
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 2022

14

Value creation process

Strengths of the Ryobi Group

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

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 thesetechnologies and experiences to manufacture finished products
such as builders' hardware and printing equipment.

Create a sound anddynamic corporation throughtechnology, trust and challenge

Business development
Corporate message

Beyond Ideals
and Dreams

Cultivatedstrengths (1)Die casting
technology

Foundations of our business*Figures are actual results for FY2021.

Die Castings Businessp. 29-32

p. 17-18

Value co-created withstakeholders

Financial capital
Total assets: 279,422 million yen (end of fiscal year)
Cash flows from operating activities:
14,900 million yen
Manufacturing capital● Established production facilities in Japan,
the U.S., Mexico, the U.K., China, and Thailand● Capital expenditures: 13,070 million yen
Intellectual capital
Development of materials, advanced casting, andmachining technologies, as well as collective
strength and corporate agility.
Human capital● Number of consolidated employees:
7,243 (end of fiscal year)

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

Commitment to challenge

Builders' Hardware
Business
p. 33-34

Society
Cultivatedstrengths (2)Global production
structurep. 19-20

Cultivatedstrengths (3)Manufacturing
capabilities cultivatedthrough die castingp. 21-22

Facilitating comfortable living andenriching people's lives
Contributing to the safety, security,and comfort of people's lives● Reducing workloads by providing
automated and labor-saving products
and services●

Printing Equipment
Business
p. 35-36

Creating an environment in which all
employees can play an active role

Social capital
Trusted relationship with shareholders,business partners, and other stakeholders
Natural capital● Energy consumption
Electricity: 156,422 thousand kWh
City gas: 8,064 thousand m³
Liquefied natural gas (LNG): 3,147 t
Liquefied petroleum gas (LPG): 1,596 t
Oil (crude oil equivalent): 5,269 kl● Water consumption: 1,113 thousand m³

15

Ryobi Integrated Report 2022●

Foundation forsustainable value
creation / ESG

Promoting diversity, equity, and inclusion

EconomyEnvironment
p. 39-42

Societyp. 43-46

Governancep. 47-50

Maintaining stable profits and cashflow
Continuation of stable dividends

Ryobi Integrated Report 2022

16

Cultivated strengths (1) Die casting technology

Contributing to the future of the manufacturing industry

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 expanding functionality and improving reliability, and we strive to contribute to the futureof 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 our current
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 an airtightdie sealing technology and a high-vacuum die casting, enabling high temperature heat treatments (T6 and T7) and welding that werepreviously 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 to be
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 suited forthick-walled products to ensure strength and rigidity, the separate injection process, the low-pressure die casting, and the new GD squeeze
casting (p. 32).
Ryobi will continue to develop new production methods and new alloys that help make automobiles even lighter.

Processes of the vertically integrated system
Product development and prototyping●

Ryobi practices "concurrent engineering", which means we dispatch our engineers to customers,
and these engineers can provide support from the early stages of product development by offeringvarious technical suggestions. In addition, we help our customers find the optimal shape for lighteror more rigid products through CAE-based analysis and evaluation technologies, including
structural analysis and molten metal flow and solidification analysis.

Ryobi's casting methods❸
High

Die design

Die fabrication
We design dies using CAD/CAM systems and create automatic machining programs for die
machining equipment.
● We manufacture high-precision dies using state-of-the-art machine tools and our own unique
technologies that involve automatic machining programs based on die design drawings.
●

High-vacuum die casting
Strength and quality

Solidification analysis using 3D CAD is performed to create the optimum product shape andcasting plan.
● Designers, die engineers, and casting engineers work as a team to analyze dies.
●❹
GD squeeze casting Thick-walled, high-strength products❷❶

Highly tough products; large, complexly shaped products

Low-pressure die casting
Separate injection process (T-SIP)
Gravity die casting
Complexly shaped products; hollow products❻
Vacuum die casting❺

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 caseThickness

Casting●

A molten aluminum alloy is injected at high speed and high pressure into the die of the castingmachine, where it is instantly shaped into form.

Machining and assembly●

At Ryobi, we have expanded the application of die castings to electric car parts and body and chassis parts. Because conventional
die cast parts are not capable of absorbing the energy of a collision, we have participated in the development of functional parts that
can absorb the collision energy by deforming and prevent rupture (see diagram below 1). When conventional die cast products do notmeet certain requirements, we respond to our customers' needs by selecting the optimal alloy technology, casting technology, andheat treatment technology that we have cultivated through our experience in the field.

Example of die casting using a combination of proprietary alloys,
our high-vacuum die casting method, and heat treatment technology
Aluminum shock-absorbing part

Before collision

Cross car beam

n e
io ur
ct s
re es
Di f proCast products are then machined, surface-treated, and assembled as requested bycustomers.

High

Steering column
Dash panel

Quality inspection

Shockabsorbing part
*1

17

Ryobi Integrated Report 2022

After collision
n e
io ur
ct s
re es
Di f pro

We conduct precise quality inspections at each step of the process, including the measurement of product dimensions using 3D measuring instruments, X-ray/CT inspections, andstrength tests.
● We have promoted the implementation of automation and labor reduction, and introduced an
automatic appearance inspection system to improve quality by eliminating inconsistencies inaccuracy caused by manual inspections.
●

Cross car beam
Image of deformation upon collision

Ryobi Integrated Report 2022

18

Die Casting Global Operations

Cultivated strengths (2) Global production structure

Production structure for customers
worldwide

U.K.
RYOBI ALUMINIUMCASTING(UK), LIMITEDIn 1985, Ryobi became the first Japanese die casting manufacturer to establish a
production facility in the United States. Today, we have production facilities in six
countries around the world, including the U.K., China, Mexico, and Thailand, as we
provide high-quality die cast products 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 through production line automation,
information and communications technologies, and quality assurance improvement. Ryobi continues to deepen and expand its relationships with customers that
include automobile manufacturers around the world.

U.S.A.

China

RYOBI DIE CASTING(USA), INC.

RYOBI DIE CASTINGDALIAN CO., LTD.

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

China
RYOBI DIE CASTINGCHANGZHOU CO., LTD.

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

Hiroshima East Plant

RYOBI MIRASAKA CO.
RYOBI MITSUGI CO.

Overseas sales

ThailandBy contributing local automobile manufacturers expand
their production, the ratio ofoverseas sales to total sales
has increased to approximately 50%.

(Unit: billionsof yen)RYOBI DIE CASTING(THAILAND) CO., LTD.

60.0%

Overseas sales
Domestic sales
Overseas sales ratio

250
200

IKUNO CO.
HOEI INDUSTRIES CO., LTD.

Changes in overseas sales, domestic sales, and overseas sales ratio

300

TOKYO LIGHT ALLOY CO., LTD.

50.0%
40.0%
30.0%

100

20.0%

50

10.0%

0

0.0%
M
ar
.2

01
0
M
ar
.2
01
1
M
ar
.2
01
2
M
ar
.2
01
3
M
ar
.2
01
4
M
ar
.2
01
5
M
ar
.2
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6
M
ar
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M
ar
.2
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8
De
c.
20
18
De
c.
20
19
De
c.
20
20
De
c.
20
21

150

Business with customers worldwide

Recognition received from customers around the world
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 for the year ended December 31, 2021
The Ryobi Group is not dependent on any particular automobile manufacturer, but rather serves customers around the world on a
global basis.
●

Aisin Corporation●

Zhejiang Geely Holding Group

●

Nissan Motor Co., Ltd.

●

Honda Motor Co., Ltd.

●

Isuzu Motors Limited●

Subaru Corporation●

Hino Motors, Ltd.

●

Mazda Motor Corporation●

JATCO Ltd●

General Motors●

Hyundai Motor Company●

Mitsubishi Motors Corporation●

Suzuki Motor Corporation●

Daihatsu Motor Co., Ltd.

●

Ford Motor Company

and others●

Stellantis NV●

Toyota Motor Corporation●

Volkswagen AG

Number of employees atoverseas locations
At the end of December 2021, the Ryobi Group had 7,243
employees, of which 3,203 were in Japan and 4,040 overseas. The
number of employees at each overseas location is shown in thegraph on the right.

Number of employees at overseas locations
Thailand

359

4,040
China

2,065
19

Ryobi Integrated Report 2022

U.S.

676

Mexico

524
U.K.

416

Quality Excellence Award from Aisin (China) for 2020
Global Special Award 2020 from JATCO Ltd● Supplier of the Year 2020 and Supplier Quality Excellence Award 2020 from General Motors● Cost Improvement Excellence Award and Project Commendation "Engineering Division" from Toyota Motor Corporation● Certificate of Appreciation for Excellent Quality from Nissan Motor Co., Ltd.
● 2020 Excellence in Quality and Delivery Award from Honda North America● Silver Award for Outstanding Supplier of the Year 2020 from SAIC-GM● Quality Gold Award 2020 from the Yantai Dongyue Plant of SAIC-GM●●

Sharing our corporate philosophy
Ryobi's corporate philosophy is the foundation for all of our ideas and actions.
Bearing this in mind, we revised the Ryobi Group's Corporate Philosophy
Employee Guidebook in March 2019, in which we explain the concepts andstructure behind our corporate philosophy and provide guidelines for Ryobi's
sustainable growth. We have since used this guidebook to share our values with
our employees. The guidebook has been translated into various languages so
we can share our corporate philosophy with our overseas group companies.

Ryobi Group's Corporate Philosophy Employee
Guidebook in various languages

Ryobi Integrated Report 2022

20

Cultivated strengths (3) Manufacturing capabilities cultivated through die casting

Application from die casting technology to finished products

Discontinued the

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

manufacture and salesof golfing goods(1983 to 2002)

offset printing presses, door closers, fishing tackle, power tools, and golfing goods. Our current businessin 2002.

activities span three fields: die castings, builders' hardware, and printing equipment.
We developed golf clubs with integrally
molded aluminum alloy heads.

Fishing tackle(1966 to 2000)
Reel bodies were manufactured

Power tools

through die casting.

(1968 to 2018)

Precision machining technologies
In 2000, fishing tackle

were used for gears and spools.

business was transferred

Many power tool bodies were

to Johshuya Co., Ltd.

manufactured throughIn 2018, power tools

die casting.

business was transferred
to Kyocera Corporation.

Builders' hardware(1963 to present)

21

Die

castings(1943 topresent)

Printing equipment(1961 to present)

In 1963, the company began manufacturing door closers,

In 1961, the company began manufacturing offset printing

using the advanced casting and machining technologies

presses by applying its precision machining technology

cultivated in our die casting operations.

for die casting molds.

Since then, we have been offering high-performance

We strive to achieve high-accuracy, multi-coloring, and highly

products with original mechanisms.

advanced functionality by accumulating the production technologies

Our product development focuses on functionality and safetythat we use to assemble high-precision parts.

as well as barrier-free, inclusive design.

We offer a wide range of products, from small to

Ryobi produces door guards, hinges, and otherlarge printing presses, and develop and manufacturebuilders' hardware for various

products that provides solutions

building applications.

for digitalization and environment.

Ryobi Integrated Report 2022

Ryobi Integrated Report 2022

22

Value creation story
Business environment awareness and materiality ......................................... p. 25-26
Medium-term objectives and our initiatives ................................................... p. 27-28
Ryobi's challenge: Die Castings Business..................................................... p. 29-30
Ryobi's challenge: Addressing global environmental issues .......................... p. 31-32
Ryobi's challenge: Builders' Hardware Business........................................... p. 33-34
Ryobi's challenge: Printing Equipment Business ............................................ p. 35-36

VALUE CR EATION STORY
23

Ryobi Integrated Report 2022

Ryobi Integrated Report 2022

24

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

Societal changes
Increasedawareness of the
global environment

Increased
uncertainty about
the global situation

Demographic
changes

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

●

●
●

●

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

Importance to stakeholders

Business environment awareness●Promoting risk management●

Improving information disclosure●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●●

Promoting compliance

Promoting automation andreducing human labor● Improving production
efficiency

Improving business operations through the useof digital technology●●

Supporting weight reduction and electrification●

Human resource development

Importance to Ryobi

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.

Increasedawareness ofhuman rights

Accelerated
digitalization ofsociety●●

Existing businesses
becoming obsolete

Internal revitalization● Securing skilled humanresources that wereconcentrated in urban areas●

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

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

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

STEP 1
Identification ofsocial issues

STEP 2
Prioritization

STEP 3
Increased demand
for transparent
management

Shrinking number ofshareholders and investors● Scandals●●

Strengthening trust withstakeholders

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

Confirmationof validity

STEP 4
Verificationand decision

25

Ryobi Integrated Report 2022

Not only did we study the ESG rating organization (FTSE) survey items, but we also
recognized changes in society that surround Ryobi. Based on the risks and opportunities presented by these external 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.

Our sales and procurement staff inquired with our business partners about their expectations and requests for our company, and we then used their opinions to review andreassess our materiality matrix (as prioritized in STEP 2), and confirm the validity of its
content.
Finally, in the medium-term management plan meeting, which was attended by ourmanagement and auditors, based on the prioritization made in the previous step, we
discussed and decided on the materiality issues that Ryobi should address, guided byour corporate philosophy and corporate strengths.

Ryobi Integrated Report 2022

26

Value creation story

Medium-term objectives and our initiatives
Ryobi has formulated a medium-term management plan for 2022. The medium-term objectives that represent the goal
Materiality

we share across all departments and throughout the company is "lightening the load worldwide". This slogan expresses

Our approach

Related SDGs

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

Medium-term objectives

Expanding sales of lightweight parts (body andchassis) and electric car parts (die castings) [p. 30]● Reducing CO2 emissions (company-wide) [p. 41]● Promoting the reduction and recycling of industrial
waste (company-wide) p. 40]●

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●●

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

Improving business
operations through the use ofdigital technology● Improving labor productivity●

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

Lightening the load worldwide
Further developing and implementing a supply
structure capable of meeting the needs ofcustomers worldwide (company-wide) [p. 19]● Maintaining and improving good relationships withbusiness partners (company-wide) [p. 44]● 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. 34]● Supporting customers' smart factory conversion(printing equipment) [p. 36]

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

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

Promoting health and safety in the workplace aswell as mental and physical health (company-wide)[p. 43]● Promoting diversity (company-wide) [p. 45]● Enhancing education and training programs(company-wide) [p. 46]

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●●

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 economy●

Lightening workstyles
A variety of systems to support employees on their career paths

Increasing transparent governance (company-wide)[p. 47]● Enhancing disclosure of ESG-related information(company-wide)● Ensuring information security (company-wide)[p. 50]*Pages that contains more details are indicated by brackets [ ].

27

Ryobi Integrated Report 2022

Ryobi Integrated Report 2022

28

Value creation story

Ryobi's challenge

Die Castings Business
Lightening vehicle weight

Actual results for 2021 and forecast for 2022
Net sales

Sales in 2021 increased 16% from the previous
year to 169.9 billion yen due to the normalizationof economic activities resulted from increased
COVID-19 vaccination rates, despite the global
shortage of semiconductors and supply shortagesof automotive parts that affected automobile
production. Higher revenues resulted in improved
operating loss.
In 2022, we expect automobile production torecover moderately, and forecast net sales of
208.1 billion yen, up 22% from the previous year,
and an operating profit of 4.6 billion yen.

Operating profit (loss)(Unit: billions of yen)

(Unit: billions of yen)

208.1

185.9

169.9
145.9

7.7
4.6
-1.6 -1.4

2019

2020

2021

2022
Forecast

2019

2020

2021

2022
Forecast

Our strengths●

Our vertically integrated system that covers all operations from product development, prototyping, die design, andfabrication to casting, machining, and assembly

Become a world-renowned global supplier in the mobility industry
with our core of die castings business●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

Our goals
To provide even better strategic products for automobile weight reduction and electrification, in order to contribute to asustainable global environment

Sales composition ratio

Our initiatives to reduce the weight of and electrify automobiles

Die Castings Business

85.8
169.9

FY 2021
consolidated
net sales

Tatsuyoshi Mochizuki
Director and Corporate Officer
In charge of Die Castings Business198.1 billion yen%

billion yen●

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 7.2% in FY2021) by increasing the composition ratio of new orders for such parts.

●

Our high-vacuum die casting method and GD squeeze casting (p. 18) will lead to further expansion of orders for lightweightand electric car parts.

Body and chassis parts, electric car parts

22.3%

Business environment awarenessThe automotive industry, Ryobi's main customer base, is said to be undergoing a once-in-a-century transformation. The developmentof CASE (Connected, Autonomous, Shared, and Electric) needs and establishment of CO2 emission-reducing fuel efficiency
regulations mean that the demand for Ryobi's current mainstay products, such as engine blocks and transmission cases, is expected
to decline.
At the same time, we expect a steady increase in the demand for lightweight parts and electric car parts, due to fuel efficiency
regulations requiring ever lighter cars and a shift to electrification.

29

Ryobi Integrated Report 2022

Composition ratio of sales formass-produced products

Composition ratio of new orders

66.3%

Other

14.7%

Body and chassis parts, electric car parts

19.8%
94.7%

59.2%
77.7%

33.7%

40.8%

2020

2021

85.3%

2023
Forecast

92.8%

86%

78%

14%

22%

2022
Forecast

2024
Forecast

80.2%
5.3%

2022
Forecast

Other

2024
Forecast

2020

7.2%
2021

59%

41%
2027
Forecast

Ryobi Integrated Report 202230

Ryobi's challenge

Die Castings
Business:

Value creation story

Addressing global environmental issues

Aluminum die casting contributes to solving
global environmental problems by reducing
weight and recycling resources.

Weight-reducing die cast products by Ryobi
Shock tower

Roof post

Rear-end post
The global trends of CO2 emission reduction and carbon neutrality have resulted in a shift toward electrification and weight reduction in order toimprove fuel efficiency in automobiles. Since electric vehicles (FCV, BEV, PHV, and HV) weigh more than conventional gasoline-powered vehicles,
there is a growing need to make cars more lightweight. Secondary aluminum alloys are the main raw material for aluminum die castings, and thisis a resource-recycling, sustainable material with low CO2 emissions during production. Ryobi's aluminum die castings contribute to therealization of a sustainable society by reducing automobile weight and recycling resources.

Hinge pillar
Kickdown rail

Helping solve global environmental problems through weight reduction
Faced with a global trend toward carbon neutrality, die casting businesses arelargely characterized by the ongoing electrification of automobiles, and battery
electric vehicle (BEV) sales are expected to rapidly take up a larger percentage ofglobal automobile sales. By 2030, battery electric vehicle will account for 33% of
new vehicle sales in major countries. In 2050, this number is expected toincrease to 73%.
In order for battery electric vehicle to achieve a cruising range equivalent to thatof gasoline-powered vehicles, a major challenge is to improve electricity
consumption. Light yet strong aluminum die castings help make this possible.
Aluminum has a specific gravity of 2.7. This means it has about 1/3 of the weightof iron, which has a specific gravity of 7.8. In other words, if you create two
objects of the same volume in aluminum and in iron, you would find that theweight of the aluminum object is about 1/3 that of the iron one. Therefore,
replacing iron with aluminum die castings will result in a lighter car body, which inturn leads to lower electric consumption and reduced CO2 emissions.
At Ryobi, we are engaged in joint research with customers and are developing
new technologies and production methods for die cast body and chassis parts,
and are actively incorporating these into our sales activities.

Rear subframe

Automobile sales in major countries
Tunnel top
FCV(Per 10,000/year)

10,000BEV

HV & PHVInternal
Combustion Engine

Total number of cars in major countries
FCV

8,000
2030
33%

6,000

BEV

Internal
Combustion
Engine0
2015

Side member
Battery case

2050
73%

4,000
2,000

Front
subframe

KnuckleRyobi's unique GD squeeze casting

HV & PHV

2025

2035

2045 2050(Year)
Our forecast as of October 2021

*Major countries/regions: Europe, Japan, U.S., China, India*FCV: Fuel cell vehicle, BEV: Battery electric Vehicle,
HV: Hybrid vehicle, PHV: Plug-in hybrid vehicle

The GD squeeze casting is our proprietary casting method that combines the advantages of gravity casting and squeeze casting. There is a growing
trend to replace conventional cast iron products with aluminum alloys in order to reduce vehicle weight. However, as conventional die castings do not
result in sufficient strength and rigidity in thick-walled shapes and parts with large variations in thickness, we use gravity casting, low-pressure casting,and squeeze casting suited for thick-walled products (p. 18). The drawbacks of these methods are the lower hourly production rate and higher cost. This
is why we have developed the GD squeeze casting, which excels in the manufacture of thick-walled products with high strength and ductility. Parts madeusing the GD squeeze casting are already used by major automobile manufactures, for example, for the knuckles in the suspension near the tires.

Contributing to solving global environmental problems through resource recycling

31

Ryobi Integrated Report 2022

CO2 emissions per unit of
raw material production

Percentage of secondary
aluminum alloys used by Ryobi
New aluminum ingots

1.9%

Secondary aluminum alloys

98.1%

CO2 emissions per unit of production

Secondary aluminum alloys comprise the main raw
material for aluminum die castings and are resource-recycling materials. After aluminum die cast products
used in automobiles and other vehicles are disposed ofand recycled, they can be reused to make secondary
aluminum alloys.
Aluminum die castings are also highly recyclable. The
quality of products made from recycled secondary
alloys is virtually identical to those before recycling.
98% of the raw materials used to create aluminum die
castings by our domestic group companies originatesfrom recycled secondary alloys. Secondary alloys canbe produced with only 3% of the CO2 emissions thatare used to produce new aluminum ingots from bauxite
ore.

Aluminum scrap

Melt scrap

Composition adjustment(Unit: t-CO2/t)

10
8

9.24

Aluminum die castings,
excellent for recycling

6

Reverberatory
furnace

Spectroscopic
analysis

Structuralobservation

Finished products

4
2
0

0.31
New aluminum
Secondaryingotsaluminum alloys

CO2 emissions generated by secondary alloy
production are only 3% of those generated
by new aluminum ingots production.

Ingot casting

Used by the Ryobi Group

Secondary aluminum alloys are recycled from a variety of aluminum scrap, including aluminum cans, automobile license plates and wheels, aluminumsashes, and cooking pots. Ikuno Co. is a manufacturer of secondary aluminum alloys. The secondary alloys that Ikuno manufactures are transformed
into high-quality die cast products at the various Ryobi Group factories in Japan.

Ryobi Integrated Report 2022

32

Value creation story

Ryobi's challenge

Builders' Hardware Business
Doors that open and close safely and quietly with a light touch

Actual results for 2021 and forecast for 2022
Net sales

Sales in 2021 increased 2% from the previous
year to 9.6 billion yen, due to a slight increase inboth domestic and international sales. Operating
profitwassignificantly

affectedby

Operating profit(Unit: billions of yen)

10.7

higher(Unit: billions of yen)

9.4 9.6 9.4
0.7

procurement costs due to the appreciation of the

0.8

Chinese yuan. Despite our efforts to reduce costs

0.4

and expenses, operating profit decreased.
In 2022, we expect the yuan to continue to

0.3

appreciate, and forecast net sales of 9.4 billion
yen, down 2% from the previous year, and an
operating profit of 300 million yen.

2019

2020

2021

2022
Forecast

2019

2020

2021

2022
Forecast

Our strengths●●●

High market share in the domestic door closer market
Ability to closely respond to customer needs and develop
products and services to match these needs●●

Products with excellent design and functionality
Consistent supply capabilities through domestic
and overseas production facilities

High productivity through factory automation and reductionof human labor

Our goals

Provide more convenience while addressing the needs of society
in our role as market leader in the door closer industry
Sales composition ratio

Builders' Hardware
Business

4.8%
9.6 billion yen

FY 2021
consolidated
net sales

198.1 billion yen

Taichi Shimizu
Corporate Officer
Divisional General Manager
of Builders' Hardware Division

To contribute to comfortable living by providing safe and user-friendly builders' hardware for use around doors

Our efforts in product development to support safe and comfortable door use
Ryobi has long enjoyed a consistent reputation as a manufacturer of door closers that securely and quietly shut doors at a safe
speed, and a large number of doors are fitted with our products. We aim to further deepen the trust of our customers bydeveloping new products and services as we continue to expand the sales of our door closers.
Our automatic door controller RUCAD is a prominent example of a product that assists users who do not have a free hand or
cannot open or close doors for other reasons. We will continue to develop various strategic products that contribute to thebarrier-free society that increasingly takes form.

Business environment awarenessBecause of the long-term decline in the construction of new housing, we expect the mainstay domestic market for builders' hardware
will shrink moderately. The market for buildings in particular is expected to be affected by reduced demand for office space as remote
work becomes more commonplace. At the same time, declining birthrates and aging populations mean that the demand for
barrier-free facilities will likely increase in the future. This trend encourages us to further develop and offer a diverse range of products

Automatic door controller RUCAD

Addresses various needs by its ability to link with external systems

that support safe and comfortable door use.

33

Ryobi Integrated Report 2022

Ryobi Integrated Report 2022

34

Value creation story

Ryobi's challenge

Printing Equipment Business
Lightening the workload for printing factories

Actual results for 2021 and forecast for 2022
Sales in 2021 increased 19% from the previous
year to 18.4 billion yen, due to increased overseas
exports, in particular to China and Korea, despite adecrease in domestic sales. The operating loss
improved from the previous year due to increased
revenue and cost reductions.
In 2022, we expect sales to increase both
domestically and internationally, and forecast a
22% year-on-year increase in sales to 22.5 billion
yen, and an operating profit of 400 million yen.

Net sales

Operating profit (loss)(Unit: billions of yen)

23.7
15.5

(Unit: billions of yen)

22.5

18.4

0.1 -0.9 -0.4

2019

2020

2021

2022
Forecast

2019

2020

2021

0.4

2022
Forecast

Our strengths
Broad domestic customer base
Sales network covering more than 170 countries● Wide variety of products from small to large format
●

●

●

●

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

Our goals
To contribute to the creation of a colorful and prosperous society by strengthening our ability to deliver products and services
that optimize the entire printing process

Contribute to the creation of a colorful and prosperous society
by providing products and services that meet customer needs
Sales composition ratio

Our efforts in providing products and services that meet customer needs
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.

RMGT smart factory solution concept

Printing Equipment
Business

9.3%
18.4 billion yen

FY 2021
consolidated
net sales

Katsushi Hirokawa
President
RYOBI MHI Graphic Technology Ltd.

198.1 billion yen

Automation support

Data linkage between devices
to streamline production
Image area ratio
data export

As people move away from traditional paper usage, the commercial printing market continues to shrink. At the same time, the market forhigh value-added printing, especially packaging printing, remains strong. We expect to see a further decrease in skilled labor in theprinting industry and growing recognition of the need to improve conditions in the workplace. Ryobi must therefore improve our products'
appeal through the development of functionality that supports automation and reduces the need for human labor.

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Ryobi Integrated Report 2022

Operating rate datacollection and analysis

Job data
importing and sorting

Remote diagnosis
of printing presses

Business environment awareness

Visualization support

Improved productivity throughvisualization and analysis ofoperating conditions

Paper transport instructions
Press Information Edge, a platform forconnecting a network of printing presses

Remote support
Improved operating rate by
reducing machine downtime

Automated guided vehicle (AGV)

Support for labor-saving
efforts (robot use)

Human labor reduction in
paper transport operations

Ryobi Integrated Report 2022

36

ESG (Environmental, Social, and Governance)
Environmental initiatives.............................................................. p. 39-40
Declaration of carbon neutrality .................................................. p. 41-42
Social initiatives .......................................................................... p. 43-46
Governance................................................................................ p. 47-50

37

Ryobi Integrated Report 2022

ENVIRONMENTSOCIAL
GOVERNANCE
Ryobi Integrated Report 2022

38

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
our core business duties to reduce the environmental impact of our operations and protect the environment.
Ryobi has established an environmental management system that we maintain and operate, and we have an ISO
14001 certification as well. Guided by the Ryobi Group Environmental Policy, the Environmental Preservation
Committees at each of our group companies and locations set targets and implement initiatives to conserve energy
and resources, reduce waste, lower greenhouse gas emissions, and more.

The Ryobi Group Environmental Policy
The Ryobi Group will, through the initiatives listed below, strive to avoid and mitigate various risks associated with the operating
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 from interested 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. 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.
6. Give back to regional communities through environmental protection efforts.
7. Ensure that this environmental policy is understood by all Group members and publicly disclosed to external stakeholders

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

Changes in water consumption

Ryobi actively works to reduce the company's water
consumption through optimal water management.
This means we use recycled industrial water andrespond quickly to any water leaks by checking flow
meters.

(Unit: thousand m3)

1,500

1,181

1,152

1,113

2019

2020

2021

1,000
500
0

Promotion of industrial waste reduction and recycling
Ryobi is working to reduce the amount of waste sent
to landfills by utilizing a comprehensive waste
separation system. In FY2021, the amount of
hazardous waste generated by Ryobi in Japan was
35.6 tonnes.

Waste emissions(Unit: tonnes)

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

20,00015,605.1150

50
015,00012,260.3
89.7

88.1

100

Hazardous waste generated (left axis)(Unit: tonnes)

18,326.3

200

47.8

44.0

2019

109.9
10,000

35.6

2020

5,000
0

2021

Prevention 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 FY2021,
our emissions of volatile organic compounds (VOCs)
in Japan totaled 5.8 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.

Chairperson
President and CEO

Changes in VOC emission(Unit: tonnes)

10
8

7.6
5.8

4.7

6
4
2
0

2019

2020

2021

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

Vice chairperson

Environmental protection activities
Committee members
ISO 14001 governing body

Secretariat

Subcommittees
Ryobi Limited / Ryobi Mirasaka Co. / Ryobi Mitsugi Co. /Tokyo Light Alloy Co., Ltd.
Ikuno Co. / Hoei Industries Co., Ltd. / RYOBI MHI Graphic Technology Ltd.
Overseas Group Companies

CO2 emission reductions
In January 2022, Ryobi announced its commitment to achieve carbon neutrality by 2050. See p. 41-42 for more
information on our carbon neutrality.

39

Ryobi Integrated Report 2022

Ryobi helps protect local environments throughgreening activities on its premises and by cleaning up
each location's surrounding area.

Environmental protection achievements
Number ofactivities
in 2021

Total
number ofparticipants

Head Office, Hiroshima Plant,
Hiroshima East Plant

3

340

Tokyo Branch

6114

Ryobi Mirasaka Co.

2

103

Ryobi Mitsugi Co.

2448

Tokyo Light Alloy Co., Ltd.

10

100

Ryobi Integrated Report 2022

40

ESG (Environmental, Social, and Governance)

Environmental initiatives

Declaration of carbon neutrality
CO2 emission reduction target for 2050
Traditional reduction image

One of Ryobi's materiality issues is addressing

47% reduction

climate change, and the company aims to*Scope 1 + Scope 2

34%

achieve carbon neutrality by 2050.

reduction

2013

CO2 emissions reduction target

2018

2030

345 thousand 430 thousand
t-CO2
t-CO2

Achieve carbon neutrality by 2050.
● Reduce CO emissions to at least 47% of FY2018 levels by 2030*
2(both in Japan and overseas).
●*CO2 reductions represent the absolute emissions for Scope 1 and Scope 2.
We plan to reduce emissions by 34% or more compared to FY2013 (46% or more in Japan, 25% or more overseas)

2050

226 thousand t-CO2

Actual CO2 emissions in 2021
Japan

Overseas(Unit: t-CO2)

Total

Scope 145,70675,106

120,812

Scope 2

79,341147,054226,395

Scope 1 + 2

125,047

222,160

347,207

Initiatives

Hydroelectric power generation by Ikuno Co.

Ryobi has implemented various energy conservation measures to reduce CO2 emissions. These include improving
combustion efficiency and replacing the fuels for our aluminum melting furnaces, preventing heat radiation in castingmachine holding furnaces, improving compressor efficiency, and reducing air leakage. We aim to achieve carbon
neutrality by 2050 by moving forward with our implementation of energy-saving equipment and the use of renewableenergy (solar panels, hydroelectric power, etc.).

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.

Major initiatives

Reductions achieved

Replaced heavy oil A with city gas as the fuel for the melting furnaces at our Shizuoka Plant

3,936 t-CO2/year

Replaced heavy oil A with liquefied natural gas (LNG) as the fuel for the melting
furnaces at Ryobi Mirasaka Co.

3,792 t-CO2/year

Introduced solar power generation at Ryobi Die Casting (Thailand) Co., Ltd.

1,498 t-CO2/year

Improved combustion efficiency by controlling the ratio of gas to air in the melting
furnaces of the Shizuoka Plant

379 t-CO2/year

Power-transmission line
Hydraulicsteel pipe

Power plant

Headracechannel

Plant

Dam

Our initiatives for information disclosure following TCFD
recommendations

Solar panels installed at Ryobi Die Casting (Thailand) Co., Ltd.
(image of completed installation)

41

Ryobi Integrated Report 2022

Combustion management screen of
our aluminum melting furnaces

As of 2022, Ryobi has established a new environmental policy and set environmental targets. To help promote further
decarbonization and contribute to the realization of a sustainable society, we are currently preparing for the information
disclosure, as is recommended by the TCFD (Task Force on Climate-related Financial Disclosures).
Ryobi Integrated Report 2022

42

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 to fostera "safety-focused culture" where everyone puts safety first,
and to improve people's mental and physical health.

Let's increase our awareness of danger and safety
together!

*"Safety-focused culture" is a workplace culture where the organizationand individuals have been cultivated to consider safety to be the top
priority and where they naturally comply with rules and regulations.

Promotion of safety and health in the workplace・Mutually pointing out issues by implementing safety patrols inwhich all employees participate
・Risk reduction activities
Improving support for workers who experience problems
Implementing fundamental safety improvement measures
・Stimulating communication in the workplace by using a safety
activity board
・Increasing knowledge about safety and health
Different levels of safety training
Simulation-based training

Simulation-based training for slip prevention

Lost time incident rate
At Ryobi, we want to eliminate occupational
accidents as much as possible. Therefore, we focus
on preventing accidents from recurring and improving essential safety practices. We find out the
number of accidents that result in downtime,
conduct a detailed analysis of these accidents andtheir causes, and horizontally deploy countermeasures throughout the Ryobi Group.

Lost time incident rate
Ryobi Limited(Unit: Annual rate per 1,000 workers )Domestic group companies
Overseas group companies

8
6
4
2
0

2019

2020

2021

*Annual rate per 1,000 workers = number of accidents ÷ number of employees x 1,000

Promotion of mental and physical healthOrganization chart
Ryobi has established a General Safety and Health Committee chaired by the President and CEO. The committee isleading efforts to create a safe, healthy, dynamic, and comfortable workplace.

Chairperson
President and CEO, Ryobi Limited

Vice chairpersons
Secretariat
Safety and Environment
Section, Ryobi Limited・Physical health support
Promoting a healthier lifestyle (including exercise,healthy diet, adequate sleep/rest), reducing tobaccouse, preventing passive smoking, etc.
・Mental health support
Establishing consultation services (industrial physicians,
in-house counselors, external consultation offices, etc.)
and providing mental health education, etc.
・Creating a safe and secure work environment
Supporting work-life balance at times of childbirth,childcare, elderly care, or medical treatment, etc.

In 2022, Ryobi Limited wasofficially recognized as an
outstanding organization
under the Certified Health andProductivity Management
Outstanding Organization
Recognition Program
implemented by the Ministry of
Economy, Trade and Industry,
and the Japan Health Council.
This is the third consecutive
year in which we received thisrecognition.

Maintaining and improving good relationships with business partners
Industrial
physician43

Ryobi Integrated Report 2022

Safety and Health Committees
Ryobi Limited / Ryobi Mirasaka Co.
Ryobi Mitsugi Co. / Tokyo Light Alloy Co., Ltd.
Ikuno Co. / Hoei Industries Co., Ltd.
RYOBI MHI Graphic Technology Ltd.
Ryobi Land development Ltd.

Ryobi Labor
Union

Basic approach
In March 2022, Ryobi issued a Declaration of Partnership Building, with which we officially endorsed the goals of theCouncil on Promoting Partnership Building for Cultivating the Future - a joint initiative by the Cabinet Office, the Ministryof Economy, Trade and Industry, and other organizations.
Building good and strong relationships with our business partners is one of the standards of conduct that we outline in
the Ryobi Code of Conduct. The Declaration of Partnership Building serves as a company-wide reminder and catalyst
for further strengthening cooperation with our business partners in the supply chain, and aims to improve the reciprocal
relationship with our partners and ensuing mutual prosperity.

Ryobi Integrated Report 2022

44

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

Ryobi Limited is committed to human resource development and offers career planning tailored to employees' individual talents andambitions.

Training program

employees with diverse personalities and abilities can fully take advantage of their unique strengths.

We provide extensive follow-up support until the third year of employment, and from the fifth year
onward, education is provided according to each job level.

Concrete initiatives

Training courses
Training camps

Interculturalcommunication

・Teamwork practice
・Cutter boat rowing
・Zen meditation

Promotion of women's career advancement
Ryobi Limited works to create an environment to promote women's participation in the workplace.
We have set targets to fully achieve this goal by December 2024.
・ The percentage of women among newly hired graduates will be at least 30% every year.
・ We will have at least seven women in managerial positions. (As of June 2022, there are five.)
・ At least 18% of female employees will be in managerial or supervisory positions.
(This was 8% in April 2019 and 14% in December 2021.)

Work support for people with disabilities
Ryobi Limited helps people with disabilities find positions and departments that match theirindividual abilities, so they can flourish and experience high job satisfaction.
Our new hires include graduates from special needs schools. After starting their employment, theirworkplace 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. After a fixed period of time and based on the wishes of the employee and an evaluation by
the workplace supervisor, the employee is hired full-time with a wage structure equal to that ofworkers without disabilities, giving them a sense of fulfillment and purpose.

・English class with a native speaker
・Cross-cultural training
・Overseas study tour

Business section survey
Researching roles andresponsibilities for each section

Until start of
employment● Orientation

for new graduate
hires

・Introductory gathering
・Dormitory and factory tours
・Meeting with elder employees

3rd year

Manufacturing training
On-site manufacturingexperience

Start of employment

On-the-job training

1st year

2nd year・Follow-up interview
with HR・Follow-up interview
with HR● Welcoming ceremony● New employee training
・Explanation of the company system
・Business etiquette and other training● Follow-up training

for new employees

・Start on-the-job training bysenior employees

・Follow-up interview
with HR

5thandyearbeyond● Training for

mid-career
employees● Training by job

level● Training foryoung
employees

Examples・Training for new
supervisors
・Basic management
training
・BBS training(Business Behavior
Survey)Self-development support
We provide subsidies for correspondence courses, incentives for acquiring
language-related qualifications, and language classes (English and Chinese) taught bynative instructors.

Language classes (Chinese)

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

Initiatives for social contributions

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 thenext 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 forre-employment.
We have implemented a re-employment plan for employees who have reached the retirement age,offering options for flexible employment ranging from full time to half-day and half-week (3-day),selected to best suit their lifestyle.

Aluminum can collection campaign

At our various factories and locations, including at our Head Office in Fuchu City, Hiroshima Prefecture, we encourage 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). In 2021, our donations
totaled approximately 700 thousand yen.
●

Activities of the NPO Ryobi Social Contribution Foundation

The Ryobi Social Contribution Foundation, a non-profit organization, donates goods,
subsidizes activities, and dispatches volunteers to social welfare corporations, non-profit
organizations, and volunteer groups.
●

Field trip and factory tour

We accept requests for factory tours from nearby schools and for school excursions.
In 2021, we welcomed 262 students from three different schools.

45

Ryobi Integrated Report 2022

Junior high school students touring one ofour die casting factories
Ryobi Integrated Report 2022

46

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
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

ReportCooperate

Board of Corporate
Auditors

Appoint / Dismiss

Independent
Auditors

President and CEO
Corporate Operating Committees

Cooperate

Internal Audit

Board of Directors
Internal Directors
Tatsuyoshi
Mochizuki

Corporate Management

○

○

○

Global Business

○

○

○

Marketing○47

Ryobi Integrated Report 2022

○

○

○

Non-Standing
Yoichi Arai○

Takashi
Hatagawa

○
○

○
○
○

Finance & AccountingStanding

Satoshi Ohoka Yuji Yamamoto Masahiko Ikaga Takashi Suzuki○

Technology

Corporate Auditors

Outside Directors

Akira Urakami

HR Development

President and CEO

18.2 million yen

Director and Corporate
Executive Officer

9.8 million yen

Director and Corporate Officer

4.9 million yen

Return on
assets(*2)

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

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

100% or more of operating profit
target achieved

No payment

2.1 x percentage of operating profit
target achieved (*3) - 0.55
1.75 x percentage of operating profit
target achieved (*3) - 0.375

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

5% or more
3% or more
but lessthan 5%Less than 3 %*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 loss for the current fiscal year was 1,524 million yen and consolidated operating income forecast was 5,500 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.

Evaluation of the effectiveness of the Board of Directors

Skills matrix for directors and corporate auditors
Knowledge /Experience

AmountAccounting Audit

Each Division andGroup Companies

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

Table 2_Profit ratio (*1)

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

Business Audit OfficeInstruct

Table 1_Standard amount of performancebased pay by position

・Determination of directors' compensation

ReportCooperate
Report(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)(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 to provide incentives to directors (excluding outside directors) toachieve medium- to long-term business results.

(Three Corporate
Auditors two of whom
are outside auditors)

Appoint /Supervise・Compensation structure
The directors' compensation (not applicable to outside directors) consists of a base compensation and performance-based compensation that varies
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 area of
responsibility (excluding outside directors) (bonuses excluded from deductible expenses). The standard bonus payment ratio is 7:3.

○

○

○
○

○

Risk management, Corporate
Governance & Compliance

○

○

○

○

○

Qualifications, etc.

Academic
expertCPA
Corporate
manager

CPA
Corporate
manager

LawyerCorporate
manager

Since FY2020, Ryobi has regularly evaluated its Board of
Directors in order to raise the board's effectiveness andincrease our corporate value. In FY2020, based on theadvice of an external organization, we held a survey toassess the structure and operation of the Board of Directors,
its management and business strategies, corporate ethics
and risk management, performance monitoring andmanagement evaluation/compensation, and communication
with shareholders and other stakeholders. The survey results
were then analyzed, evaluated, and discussed by the Boardof Directors. The outcomes for its effectiveness are shown on
the right.

・The Board of Directors is a well-balanced governing bodywith a sufficient proportion of independent outside directors.
・The agenda for the Board of Directors is set as is appropriate
for the circumstances.
・The board adequately monitors the progress of the management strategy.
・The board adequately verifies whether or not cross-shareholdings should be held.
・The board verifies that its whistle-blowing system (compliance help desk) is functioning effectively.

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,
improving the content of materials distributed prior to the Board of Directors, and reviewing how materials are distributed. We will continue towork on these issues to maintain and improve the effectiveness of our Board of Directors.

Ryobi Integrated Report 2022

48

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 placethat ensures appropriate behavior, to prevent violations of laws and ethics, and to not tolerate violations when they come to light. To
this end, we have established the Ryobi Charter of Corporate Behavior (p. 04), which lists the universal rules to be observed in thecourse 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.

Ryobi believes that companies committed to creating sustainable value should understand exactly what risks pose potential obstacles
and what the impact of these risks could be. Companies should take countermeasures in advance to avoid crises and minimize losses
when crises do occur.

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

All group companies
Compliance promotion structure
Employees

conduct periodic natural disaster and accident drills. In addition tothese initiatives, we are equipped with tools for emergency
communication and maintain a stockpile of emergency foods andother supplies.

Evacuation drill for natural disasters

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.

・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.

・Preventing the spread of the novel coronavirus (COVID-19)
Ryobi has established a task force to prevent the spread of the novel coronavirus (COVID-19), headed by the President and CEO,which cooperates with our group companies in monitoring the situation and responding to new developments.
To prevent infection, we encourage our employees to wear masks, wash their hands, and gargle, and we make sure our offices are

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.

49

Ryobi Integrated Report 2022

properly ventilated and equipped with acrylic screens.
We also established a new way of working such as implementing a remote work system, set up satellite offices to allow employees tocommute closer to home, and encouraged staggered work shifts.

Ryobi Integrated Report 202250

10-year financial highlights
Unit: millions of yen
Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2018

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

Fiscal year ended
December 31, 2021

166,566
3,307
2,980
2,009
6,869

199,697
7,665
7,264
4,132
14,863

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

79,767214,725
79,101

96,433244,976
85,357

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
279,42273,7692,423.50
62.10
30.0

2,828.69
127.6535.0

3,144.44
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

36.5
2.6
18.2
1.5
1.01
48.3

37.4
4.9
12.3
3.2
0.93
27.4

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
̶

6,766
(24,308)
Cash flows from financing activities
16,599
Free cash flow
(17,542)
Cash and cash equivalents at end of period
21,844
Capital expenditures, depreciation and amortization
Capital expenditures
27,517
Depreciation and amortization
10,932
Segment information

16,404(21,096)(934)(4,692)
17,711

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

16,22813,141

15,592
14,26916,243
15,725

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

24,83915,37017,392
16,402

13,07017,240126,673
2,242
150,281

154,480
6,250
175,041

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

24,3091,776
25,98525,9601,103
25,866

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

15,584(711)
17,47719,027305
23,797

27,3801,625
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)
22,240112,306
23,832
12,64917,77932.6

119,278
30,27324,08326,06240.3

126,019
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
20,81438,60535,003
47.7

Business results
Net sales
Operating profit (loss)
Ordinary profit (loss)
Profit (loss) attributable to owners of parent
Comprehensive income

Financial position
Net assets
Total assets
Interest-bearing debt

Per share information
Net assets per share (yen)Basic income per share (yen)Dividends per share (yen)Financial indicators
Equity ratio (%)
Return on equity (%)
Price-earnings ratio (%)
Ordinary profit-to-total asset ratio (%)
Debt equity ratio (times)
Payout ratio (consolidated)(%)

Cash flow
Cash flows from operating activities
Cash flows from investing activities

Die castings
Net sales
Operating profit (loss)
Total assets
Power tools and builders' hardware
Net sales
Operating profit (loss)
Total assets
Printing equipment
Net sales
Operating profit (loss)
Total assets

Sales by region
Japan
U.S.A.
China
Other

Overseas sales ratio (%)

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, 2013.
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.

51

Ryobi Integrated Report 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 202252

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
Other
Total current liabilities
Non-current liabilities
Bonds payable
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
Share capital
Capital surplus
Retained earnings
Treasury shares
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

53

Ryobi Integrated Report 2022

Unit: millions of yen
December 31, 2020

December 31, 2021

26,56640,157759
15,353
12,32013,7143,379(32)
112,218

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

32,74150,334
15,964
14,323
5,595
118,959

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

3,482
3,482

3,159
3,159

14,396
4,478
2,967
2,212
(63)
23,991
146,432

15,772
6,916
3,879
3,006
(62)
29,512
149,8308
8258,66000279,422

29,11525,595
4,600
7,110
476
390
16,601
83,89041,60636,4981,500
13,005636
387
17,131
110,765

1,500
33,670
2,085
510
8,055
3,017
48,839132,730

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

18,472
21,861
76,309(346)
116,295

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

4,733
810(3,814)
(877)
852
8,782
125,930
258,660

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

Consolidated Statement of Income

Unit: millions of yen

Fiscal year ended
December 31, 2020
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating 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
Foreign exchange losses
Depreciation and amortization
Other
Total non-operating expenses
Ordinary profit (loss)
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
Loss on sale of shares of subsidiaries and associates
Total extraordinary losses
Loss before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Loss
Profit (loss) attributable to non-controlling interests
Loss attributable to owners of parent

170,973
153,882
17,09018,879(1,789)198,073
179,600
18,472
19,996(1,524)

104
339
198
̶
128
71
247
1,451
624
3,166

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

967
68
225
29
121
1,412
(35)

894
31
̶
16
112
1,054
4

23
̶
23

4
0
5

97
1,228
85
0
78
1,490
(1,501)
1,080(1,758)
(678)
(823)
(126)
(697)

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

Consolidated Statement of Comprehensive Income

Unit: millions of yen

Fiscal year ended
December 31, 2020
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

Fiscal year ended
December 31, 2021

Fiscal year ended
December 31, 2021

(823)

(4,361)(763)
0(1,238)350
23(1,627)(2,451)

771
0
7,821
1,618
281
10,492
6,131(2,245)
(205)

6,087
43

Ryobi Integrated Report 2022

54

Consolidated financial statements
Consolidated Statement of Changes in Equity

Consolidated Statements of Cash Flows

Shareholders' equity
Share capital Capital surplus
Balance at beginning of period
Changes during period
Dividends of surplus
Loss attributable to owners of parent
Purchase of treasury share
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

21,854

18,472Retainedearnings
78,139Total
Treasury share shareholders'equity(346)
118,120(1,132)
(697)

(0)

6
6
21,861

̶
18,472(1,132)
(697)
(0)
6

(0)
(346)

(1,830)76,309(1,824)116,295

Accumulated other comprehensive income

Balance at beginning of period
Changes during period
Dividends of surplus
Loss attributable to owners of parent
Purchase of treasury share
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

Valuationdifference on
available-forsale securities

Revaluation
reserve for
land

5,443

809

Foreigncurrencytranslation
adjustment(2,626)

Remeasurements Total accumulated
otherof defined benefit
comprehensive
plansincome2,400(1,226)

Noncontrollinginterests

Total net
assets

9,054 129,575(1,132)
(697)
(0)
6

0
0
810

(710)
(710)
4,733

(1,187)(1,187)(3,814)(1,548)(1,548)
852

348
348
(877)

(272) (1,821)(272) (3,645)
8,782 125,930
Unit: millions of yen

Fiscal year ended December 31, 2021
Shareholders' equity

Share capital Capital surplus
Balance at beginning of period
Changes during period
Dividends of surplus
Loss attributable to owners of parent
Purchase of treasury share
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

21,861

18,472Retainedearnings

Total
Treasury share shareholders'equity76,309(346)

116,295(0)(323)(4,397)(0)(323)(4,397)14
14
21,875

̶
18,472

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

Accumulated other comprehensive income

Balance at beginning of period
Changes during period
Dividends of surplus
Loss attributable to owners of parent
Purchase of treasury share
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

55

Ryobi Integrated Report 2022

Fiscal year ended
December 31, 2020

Unit: millions of yen

Fiscal year ended December 31, 2020

Valuationdifference on
available-forsale securities

Revaluation
reserve for
land

4,733

810

Foreigncurrencytranslation
adjustment(3,814)Remeasurements Total accumulated
otherof defined benefit
comprehensive
plansincome(877)

852

Noncontrollinginterests

Unit: millions of yen

Cash flows from operating activities
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
Loss (gain) on sale of shares of subsidiaries and associates
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 (used in) 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
Proceeds from sale of shares of subsidiaries and associates
Payments into time deposits
Proceeds from withdrawal of time deposits
Other, net
Net cash provided by (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 shares
Dividends paid
Other, net
Net cash provided by (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, 2021

(1,501)
16,402
1,228
(14)
(185)
131
(443)
967
(1,451)
(71)
75
0
85
78
819
3,382
(524)
(6,477)72(213)
12,360
463
(958)
1,267
(1,338)
11,795(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)
14,900(20,291)
1,148(1,330)
1,340
(32)
15
2,630
(2,404)2,404(1,049)(17,567)(11,851)520(1,300)
1,330
(15)
13
̶
(2,404)
2,404(859)(12,162)

2,315
18,670(7,606)(2,300)(0)(1,135)
(225)
9,718
103
4,048
21,35625,4059,325
1,866(8,050)(4,600)
(0)
(328)
(150)
(1,936)
1,182
1,983
25,40527,388

Total net
assets8,782 125,930(323)(4,397)
(0)
14

770
770
5,503

0
0
811

8,102
8,102
4,288

1,611
1,611
734

10,485
10,485
11,337

8 10,494
5,786
8
8,790 131,717

Ryobi Integrated Report 2022

56

Organization profile
Corporate information (as of December 31, 2021)

Changes in share price over the past 5 years (January 2017 to December 2021)(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
・Builders' hardware (door closers, hinges, architectural hardware, etc.)
・Printing equipment (offset printing presses, peripherals, etc.)

3,000

Fiscal year

From January 1 to December 31

2,000

Stock exchange listing

Tokyo Stock Exchange, First Section(Transferred to Prime Market as of April 4, 2022)

Stock code

5851

Transfer agent

Mitsubishi UFJ Trust and Banking Corporation

Independent auditor

Deloitte Touche Tohmatsu LLC

5,000

4,000

1,000

0
2017

2018

2019

2020

2021

Stock information (as of December 31, 2021)
Number of shares authorized 100,000,000 shares

Investment in Ryobi Limited
Principal shareholders

Number of shares issued

32,646,143 shares

Number of shareholders

8,755 (increased by 628 since the end of the fiscal year)
Share breakdown by owner

Individuals and others(including 277 thousand shares of treasury stock)8,373 shareholders,
7,645 thousand shares, 23.41%
Other institutions
170 shareholders,
3,187 thousand shares, 9.76%

Foreign investors
143 shareholders,
6,304 thousand shares, 19.31%

8,755

shareholders

32,646thousand shares

Financial institutions
31 shareholders,
15,162 thousand shares, 46.45%
Securities company
38 shareholders,
348 thousand shares, 1.07%

Number of shares
held (in thousands)

Investment
ratio (%)

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

3,541

10.93

Ryokokai Shareholding Association

1,933

5.97

Meiji Yasuda Life Insurance Company

1,860

5.74

Custody Bank of Japan, Ltd. (trust account)

1,713

5.29

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.

57

Ryobi Integrated Report 2022

Ryobi Integrated Report 2022

58