Ryobi Consolidated Financial Statements for Fiscal 2011

Ryobi Limited and Consolidated Subsidiaries
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2011

1. Consolidated Balance Sheets
March 31, 2010ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable
Marketable securities
Finished products and purchased goods
Work in process
Raw materials and supplies
Deferred tax assets
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets:
Property, plant and equipment:
Buildings and structures (net)
Machinery and equipment (net)Land
Leased assets (net)
Construction in progress
Other fixed assets (net)Total property, plant and equipment
Intangible fixed assets:
Other intangible fixed assets
Total intangible fixed assets
Investments and other assets:
Investment in securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets-1-(Millions of yen)March 31, 201115,154
31,244
10,362
12,569
8,120
5,815
1,320
2,499
(40)
87,047

14,54834,232
9,012
12,106
8,921
6,114
1,194
3,518
(37)
89,61019,14824,023
21,667
896
5,101
3,000
73,837

18,474
21,19021,628
528
3,330
2,771
67,923

1,077
1,077

992
992

8,804
1,274
1,992
(117)
11,95386,868173,916

8,358
1,338
2,429
(76)
12,05080,966
170,577

Ryobi Consolidated Financial Statements for Fiscal 2011

March 31, 2010
LIABILITIESCurrent liabilities:
Notes and accounts payable
Short-term borrowings
Current portion of long-term debt
Lease obligations
Income taxes payable
Accrued bonuses
Accrued bonuses to directors
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for revaluation
Accrued severance indemnities
Liabilities from application of equity method
Other long-term liabilities
Total long-term liabilities
Total liabilities:
NET ASSETS
Shareholders’ equity:
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive loss:
Unrealized gain on available-for-salesecurities
Deferred loss on derivatives under hedge
accounting
Land revaluation reserve
Foreign currency translation adjustments
Total accumulated other comprehensive loss
Minority interests
Total net assets
Total liabilities and net assets-2-(Millions of yen)March 31, 2011

25,47531,50913,364
402
342
850
—
6,855
78,801

28,35725,404
10,118
245
2,165
1,613
20
8,555
76,48016,364
566
330
674
6,988
412
1,781
27,118105,920

12,878
326
171
674
6,633
409
1,785
22,87999,36018,472
23,75035,007(2,354)74,874

18,472
23,75039,601(2,360)79,463

2,157

1,871

(32)
626
(10,517)(7,766)887
67,995
173,916(32)
626(11,700)(9,235)989
71,217
170,577

Ryobi Consolidated Financial Statements for Fiscal 2011

2. Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(1) Consolidated Statements of Operations(Millions of yen)
Fiscal Year 2010
Fiscal Year 2011
Ended March 31, 2010
Ended March 31, 2011
Net sales
125,940
161,730
Cost of sales
108,081
132,728
Gross profit
17,85929,001
Selling, general and administrative expenses
18,784
20,716
Operating income (loss)
(925)
8,285
Non-operating income
Interest income
9733
Dividends income93120
Rent income
488
451
Exchange gain
328—
Gain on sale of scrap
109
137
Cash dividends for insurance—
133
Miscellaneous income
433
300
Total non-operating income
1,552
1,176
Non-operating expenses
Interest expenses
1,285
1,094
Cash discounts
151
178
Loss on abandonment of inventories
4896
Depreciation
332
196
Exchange losses—
264
Miscellaneous expenses
121
190
Total non-operating expenses
1,939
2,022
Ordinary income (loss)(1,312)
7,438
Extraordinary income
Gain on sale of fixed assets
13
191
Reversal of allowance for doubtful accounts—1
Gain on negative goodwill—
22
Total extraordinary income
13216
Extraordinary losses
Loss on disposal of fixed assets
139
280
Loss on devaluation of investment insecurities
340
Loss on adjustment for changes of accounting
standard for asset retirement obligations—
29
Total extraordinary losses
143
349
Income (loss) before income taxes and minority
interests(1,442)
7,305
Income taxes
Current
475
2,367
Deferred(354)220
Total income taxes
120
2,588
Income before gain on minority interests—
4,717
Gain on minority interests
38
123
Net income (loss)(1,601)
4,594

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Ryobi Consolidated Financial Statements for Fiscal 2011

(2) Consolidated Statements of Comprehensive Income

Income before gain on minority interests
Other comprehensive loss
Unrealized gain on available-for-salesecurities
Deferred loss on derivatives under hedge
accounting
Foreign currency translation adjustments
Share of other comprehensive loss ofassociates accounted for using equity method
Total other comprehensive loss
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Minority interests

Fiscal Year 2010
Ended March 31, 2010—(Millions of yen)
Fiscal Year 2011
Ended March 31, 2011
4,717—(282)——(0)(1,183)———(0)(1,466)
3,250

—
—

3,125
125

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Ryobi Consolidated Financial Statements for Fiscal 2011

3. Consolidated Statements of Changes in Net Assets

Fiscal Year 2010
Ended March 31, 2010

(Millions of yen)
Fiscal Year 2011
Ended March 31, 2011

18,472

18,472—
18,472—
18,472

23,75023,750——23,7500023,75036,60835,007(1,601)(1,601)35,0074,594
4,594
39,601(2,354)(2,354)(0)—(0)(2,354)(5)0(5)(2,360)76,47674,874(1,601)(0)—(1,601)
74,8744,594(5)04,588
79,463

Shareholders' equity
Common stock
Balance at beginning of year
Changes of items during the year
Total changes of items during the year
Balance at end of year
Capital surplus
Balance at beginning of year
Changes of items during the year
Disposal of treasury stock
Total changes of items during the year
Balance at end of year
Retained earnings
Balance at beginning of year
Changes of items during the year
Net income (loss)
Total changes of items during the year
Balance at end of year
Treasury stockBalance at beginning of year
Changes of items during the year
Acquisition of treasury stock
Disposal of treasury stock
Total changes of items during the year
Balance at end of year
Total shareholders' equity
Balance at beginning of year
Changes of items during the year
Net income (loss)
Acquisition of treasury stock
Disposal of treasury stock
Total changes of items during the year
Balance at end of year

-5-Ryobi Consolidated Financial Statements for Fiscal 2011

Fiscal Year 2010
Ended March 31, 2010

(Millions of yen)
Fiscal Year 2011
Ended March 31, 2011

1,088

2,157

1,068
1,068
2,157(285)
(285)
1,871

(35)

(32)

3
3(32)

(0)
(0)
(32)

626

626

—
626

—
626

(10,982)(10,517)464
464(10,517)(1,183)(1,183)(11,700)(9,303)(7,766)

1,536
1,536
(7,766)(1,469)(1,469)(9,235)

833

887

54
54
887

101
101
989

Accumulated other comprehensive loss
Unrealized gain on available-for-salesecurities
Balance at beginning of year
Changes of items during the year
Net changes of items other thanshareholders' equity
Total changes of items during the year
Balance at end of year
Deferred losses on derivatives under hedge
accounting
Balance at beginning of year
Changes of items during the year
Net changes of items other thanshareholders' equity
Total changes of items during the year
Balance at end of year
Land revaluation reserve
Balance at beginning of year
Changes of items during the year
Total changes of items during the year
Balance at end of year
Foreign currency translation adjustments
Balance at beginning of year
Changes of items during the year
Net changes of items other thanshareholders' equity
Total changes of items during the year
Balance at end of year
Total accumulated other comprehensive loss
Balance at beginning of year
Changes of items during the year
Net changes of items other thanshareholders' equity
Total changes of items during the year
Balance at end of year
Minority interests
Balance at beginning of year
Changes of items during the year
Net changes of items other thanshareholders' equity
Total changes of items during the year
Balance at end of year

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Ryobi Consolidated Financial Statements for Fiscal 2011

Fiscal Year 2010
Ended March 31, 2010

(Millions of yen)
Fiscal Year 2011
Ended March 31, 2011

68,00667,995(1,601)(0)—4,594(5)01,591(10)67,995(1,367)
3,221
71,217

Total net assets
Balance at beginning of year
Changes of items during the year
Net income (loss)
Acquisition of treasury stock
Disposal of treasury stock
Net changes of items other thanshareholders' equity
Total changes of items during the year
Balance at end of year

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Ryobi Consolidated Financial Statements for Fiscal 2011

4. Consolidated Statements of Cash Flows

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

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Fiscal Year 2010
Ended March 31, 2010

(Millions of yen)
Fiscal Year 2011
Ended March 31, 2011

(1,442)
12,429
(3)
(24)

7,305
11,339
(44)
762

371
(191)
1,285
3
126
(4,983)
2,774
(184)
5,234
296
(166)
15,524190(1,323)
1,917
16,308(354)(153)1,094
40
90(3,461)
(985)
(814)
3,225
720
339
19,104157(1,108)(684)
17,468(8,169)(7,646)32(1,840)1,840(52)(2,715)
3,719(116)(7,301)324(3,837)3,837(19)(2,714)2,836(186)(7,406)(1,471)
10,558(6,538)
(0)
—
(401)
2,146

(5,238)
7,163(13,250)(5)0(405)(11,736)

81
11,23512,084
23,319(159)(1,834)
23,31921,485

Ryobi Consolidated Financial Statements for Fiscal 2011

5. Segment Information(1) For the Fiscal Year Ended March 31, 2010 (April 1, 2009 to March 31, 2010)
a. Industry Segment Information(Millions of yen)
DieCastings

Printing
Equipment

Power Tools
and Builders’Hardware

86,13918,101

21,699125,940

124

—

2126

(126)

—

86,263

18,101

21,701126,066(126)

125,940

87,07819,492

20,419126,991(126)

126,865(815)(1,391)

1,281

(925)

0(925)

Total Assets

97,227

24,90822,961145,097

28,818173,916

Depreciation andAmortization

10,860819

748

12,429—12,429

Capital Expenditure

6,425

120

512

7,058

—

7,058

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

Total

Eliminations/ Corporate—

Consolidated

125,940

Notes:
Main products of each industry segment:
Die Castings: die cast product and aluminum cast for automobile parts and others
Printing Equipment: offset printing presses, peripherals, etc.
Power Tools and Builders’ Hardware: power tools, lawn and garden equipment, door closers,etc.
b. Overseas Sales(Millions of yen)
The Americas
Overseas Sales

Europe17,644

Other5,352

Total

8,671

125,940

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

31,66814.0

4.2

Note: Net sales are classified by country and region based on customer location.

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6.9

25.1

Ryobi Consolidated Financial Statements for Fiscal 2011

(2) For the Fiscal Year Ended March 31, 2011 (April 1, 2010 to March 31, 2011)
a. Industry Segment Information(Millions of yen)
Die
Castings

Printing
Equipment

Power Tools
and Builders’Hardware118,192

19,67923,858

161,730

115

—

2117

(117)

—

118,307

19,67923,860161,847(117)

161,730

Operating Income(Loss)

7,291

(936)

1,930

8,285

08,285

Total Assets

99,06223,09823,800145,961

24,615

170,577

Depreciation andAmortization

9,928

699

711

11,339—11,339

Capital Expenditure

8,451

145

452

9,048

—

9,048

Net Sales:(1) UnaffiliatedCustomers(2) Intersegment
Total

Total

Eliminations/ Corporate—

Consolidated

161,730

Notes:
Main products of each industry segment:
Die Castings: die cast product and aluminum cast for automobile parts and others
Printing Equipment: offset printing presses, peripherals, etc.
Power Tools and Builders’ Hardware: power tools, lawn and garden equipment, door closers,etc.
b. Information by Region(a) Net Sales(Millions of yen)JapanThe Americas

113,643

Other29,217

Total

18,870161,730

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

47,580The Americas

Asia

8,917

8,229

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Other

3,196

Total

67,923