762, Mesaki-cho, Fuchu,
Hiroshima 726-8628, Japan
Telephone: 81-847-41-1111
http://www.ryobi-group.co.jp/

RYOBI LIMITED ANNUAL REPORT 2002

PRINTED IN JAPAN©RYOBI LIMITED 2002

Ryobi Limited is one of the world’s top-ranked manufacturers of die casting products. The
Company has used its accumulated expertise in die casting technology to diversify into the fields
of printing equipment, power tools and builders’ hardware. Guided by its corporate philosophy,“Create a sound and dynamic corporation through technology, trust and challenge,” Ryobi seeks
to respond to the needs of its customers and society at large with innovative, top-quality
products and services, and thereby become an indispensable company. The Ryobi Group isintensely involved in the development of environmentally friendly products and otherenvironmental protection activities. As of June 2002, we had acquired ISO 14001 certification—
the international standard for environmental management systems—at 16 facilities of 12 Group
companies. Through the conservation of resources and energy, reduction of industrial waste
generation and reuse of resources, the Ryobi Group is contributing to the prevention ofenvironmental pollution.

CONSOLIDATED FINANCIAL HIGHLIGHTS

1

MESSAGE FROM THE MANAGEMENT

2SOUND MANAGEMENT PLAN

4

REVIEW OF OPERATIONS

6

FINANCIAL SECTION

11

CORPORATE INFORMATION

29

Cautionary Notes : Forward-Looking Statements
This annual report contains information about forward-looking statements related to such matters as the Company’s plans, strategies and business results.
These forward-looking statements represent judgments made by the Company based on information available at present and are inherently subject to avariety of risks and uncertainties. The Company’s actual activities and business results could differ significantly from the forward-looking statements due tochanges including, but not limited to, those in the economic environment, business environment, demand and exchange rates.

RYOBI LIMITED ANNUAL REPORT 2002

1

C O N S O L I D A T E D

F I N A N C I A L

H I G H L I G H T S(For the years ended 31st March 2002, 2001 and 2000)
Thousands of
U.S. Dollars(Note 2)Millions of Yen

2002

2001

2000

2002

For the fiscal period:
Net sales ...............................................................................................

¥156,139¥184,282¥240,074$1,171,775

Operating income ..................................................................................

6,364

10,1397,303

47,760Net income............................................................................................

2,081

2,907

2,831

15,617

Total assets...........................................................................................

¥165,401¥193,001¥238,080$1,241,283

Total shareholders’ equity..................................................................

33,37929,50133,360250,499

As at fiscal year-end:

U.S. Dollars(Note 2)Yen

Per share data:
Net income—Primary .........................................................................

¥ 12.19¥ 17.04¥ 16.59

Cash dividends .....................................................................................

—

—

—

$

0.091
—

Notes: 1. Net income per share figures are based on the weighted average number of shares outstanding each year.
2. Yen amounts have been translated into U.S. dollars, solely for the convenience of the reader at ¥133.25=US$1, the exchange rate prevailing on 31st March 2002.

NET SALESO P E R AT I N G I N C O M E

NET INCOME (LOSS)(Millions of yen)

(Millions of yen)

(Millions of yen)

300,000

12,0004,000

250,000

242,774
232,997

2,831

10,139240,074

2,907

10,000

2,081

8,999
2,000

1,437
200,000

8,000

184,282

7,303
6,817
6,364

156,139150,000

6,000

100,000

4,000

50,000

2,000

0

0

0

-2,000-3,086

98

99

00

01

02

-4,000

98

99

00

01

02

98

99

00

01

RYOBI LIMITED ANNUAL REPORT 2002

02

1

M E S S A G E

F R O MT H E

M A N A G E M E N T

Create a sound and dynamic corporationt h r o u g h t e c h n o l o g y, t r u s t a n d c h a l l e n g e .
Guided by its corporate philosophy, “Create a sound and dynamic corporation
through technology, trust and challenge,” Ryobi seeks to respond to the needs of
its customers and society at large with innovative, top-quality products andservices, and thereby become an indispensable company.
Ryobi is exerting its utmost efforts to ensure that everyone connected with
the Company in any capacity—not only customers, but also shareholders, businessassociates and employees—regards his association with us to be rewarding.
Ryobi has made concerted efforts to optimize the scale and reinforce thestructure of each of its businesses to promote a high-earnings structure. The
Company is undertaking a sweeping review of its businesses and earnings
structures in line with the Sound Management Plan, which was announced on
29th March 2000.
The objective of the plan is to build a stable, high-earnings structure througha decisive review of unprofitable businesses while considering such measures assale of businesses. Consequently, the scope of the view covers our power tool andfishing tackle businesses and a sweeping review has been conducted.

RYOBI LIMITED ANNUAL REPORT 2002

2

Ryobi will continue to maximize the allocation of management resources in its
fields of strength—die casting and printing equipment businesses.
In our die casting business, we aim to strengthen and expand relationships
with automobile manufacturers by utilizing our know-how as a world-leading die
casting manufacturer and our three-region structure of Japan, the United States andEurope. We will also aggressively work to expand sales in other fields such as
electronics and communications.
In its printing equipment business, the Company is striving to increase theprecision of multicolor rendering, offer increasingly advanced functionality, andfurther consolidate its reputation in world markets. To achieve these goals, Ryobi ispressing forward with the development of new products, the enhancement of
production capacity and the strengthening of marketing capabilities.
Vigorous marketing programs are underway in each business area. In
addition, the Company is developing new products inspired by customer
preferences and requirements, reducing costs, and enhancing operational efficiency.
During fiscal 2002, ended 31st March 2002, consolidated net sales declined
15.3% to ¥156.1 billion compared with the previous fiscal year. Domestic net sales
fell 12.1% to ¥103.9 billion, and overseas net sales dropped 21.0% to ¥52.2
billion. Operating income fell 37.2% to ¥6.4 billion, and net income decreased
28.4% to ¥2.1 billion.
The contraction in net sales was the result of a falloff in the domestic die
casting business, and of the sale of our North American lawn and garden
equipment and fishing tackle businesses.
We request the continued understanding and support of our shareholders,customers and business associates as we optimize the scale and strengthen the
structure of our businesses, and continually endeavor to achieve improved
performance based on the Sound Management Plan.
June 2002

Hiroshi Urakami
President

RYOBI LIMITED ANNUAL REPORT 2002

3

S O U N D

M A N A G E M E N T

P L A NWe initiated the Sound Management Plan, which was announced on 29th March 2000, to undertake the sweeping
review of unprofitable businesses and to maximize management resources in such fields of strength as die casting andprinting equipment businesses. Other measures include bolstering efforts to reduce interest-bearing debt, lower costs
and increase business efficiency, and establishing a stable, high-earnings structure.
Direction and progress of each business segment is explained as follows.

BUSINESSSEGMENTDIRECTIONAND

PROGRESSDIE CASTINGS

In our die casting business, we aim to strengthen and expand relationships with automobile manufacturers by utilizing our knowhow as a world-leading die casting manufacturer and our three-region structure of Japan, the United States and Europe. We will
also aggressively work to expand sales in other fields such as electronics and communications.
Our aluminum die castings are lightweight, have excellent durability and are superior in terms of recyclability. These die
castings have also attracted attention in all fields as an effective technology for the protection of the environment, including theconservation of energy and resources.

PRINTING EQUIPMENT

In its printing equipment business, the Company is striving to increase the precision of multicolor rendering, offer increasingly
advanced functionality, and further consolidate its reputation in world markets. To achieve these goals, Ryobi is pressing forwardwith the development of new products, the enhancement of production capacity and the strengthening of marketing capabilities.
By responding to advancements in information technology (IT) and digitization, as well as by expanding from small-size printingpresses to medium-size printing presses, we are developing a total printing system from prepress to press.

POWER TOOLS

We have carried out an extensive review of unprofitable operations of our power tool business. As part of this review, we have
implemented measures that include the sale of businesses. To this end, in August 2000 we sold the four companies that carried out
our power tool business in North America to Hong Kong-based TechTronic Industries Co., Ltd., while in August 2001 we sold our two
power tool sales companies in Europe, also to TechTronic Industries. Subsequently, in March 2002 we sold our two power tool sales
companies in Oceania to TechTronic Industries. In our North American lawn and garden equipment business, in June 2000 we soldfour companies to MTD Products Inc of the United States.
In our power tool business in Japan, we are strengthening our cross-sectional Group management, streamlining ourorganization, reducing staff and are consolidating and eliminating models as part of efforts to raise profitability and strengthen ourcompetitiveness. Most notably, we are making progress in building a cost-competitive production structure through measures that
include speeding up the transfer of production to a manufacturing subsidiary in Dalian, China.
In our builders’ hardware business, we aim to improve profitability by focusing on developing unique products and transferring
the production of door closers—a mainstay product—to our manufacturing subsidiary in Dalian, China, a move that will enable the
manufacture of cost-competitive products by taking advantage of strengths in overseas manufacturing.

OTHERSIn September 2000, we sold our fishing tackle business to Johshuya Co., Ltd. of Japan. At the end of May 2002, we discontinued
our sporting goods business.

INTEREST BEARING DEBT( C O N S O L I D AT E D )C A P I TA L E X P E N D I T U R E S &D E P R E C I AT I O N A N D A M O R T I S AT I O N( C O N S O L I D AT E D )(Billions of yen)(Billions of yen)
180
150

18

130.0

133.4

15

13.9

14.4

126.8

120

12

96.9
90

9.2
77.8

9

60

6

30

3

0

7.8

8.7

9.5
7.0

6.2

4.5

3.9

01

02

0

98

99

00

01

02

98

99

00

Capital Expenditures
Depreciation and Amortisation

RYOBI LIMITED ANNUAL REPORT 2002

4

ROE & ROA

NET INCOME (LOSS) PER SHARENET ASSETS PER SHARE(%)( Ye n )( Ye n )

15

30

300

10

8.6

9.2

20

16.59

250

17.04

6.6

215.59

12.19
5

10

3.9
1.2

0.6

1.3

1.2

-5

-10

0

150,

-10

100

-18.02

-20

-8.9

-15

50

-30

98

99

00

01

195.55190.04 195.51

200

172.81

-1.3

0

8.39

02

0

98

99

00

01

02

98

99

00

01

02

ROE
ROA

RETURN ON SALESASSET TURNOVER

FINANCIAL LEVERAGE(%)( Ti m e s )( Ti m e s )

3

1.2

7.5

2

1.1

7.0

7.2
6.9

1.6

6.8
1.3

1.2

1.03

1.02

1.00

1

1.0

6.5

6.3

0.6

0

0.9

-1

0.8

5.5

0.7

5.0

0.87

6.0

5.7
0.85

-1.3
-2

-3

0

98

99

00

01

02

0

98

99

00

01

02

98

99

00

01

02

Examining financial and management indicators for the fiscal year ended 31st March 2002, which was the second year of ourSound Management Plan, total consolidated assets declined as the result of the securitization of non-consolidated tradereceivables, the sale of power tool sales subsidiaries in Europe and Oceania, and other factors. As a result of the drop in income
accruing from the contraction of net sales, return on equity (ROE), return on assets (ROA), and return on sales (ROS) figures
trended downward.
At the same time, however, shareholders’ equity increased 13%, net assets per share rose ¥22.74 to ¥195.55, and therepayment of interest-bearing debt allowed a dramatic improvement in financial leverage, which dropped 1.2 times to 5.7 times
year-on-year.
To achieve the goals of the Sound Management Plan, the Company continues to optimize the scale and strengthen the
structure of each of its business operations, with a focus on improved performance.

Aiming for target indicesin the fiscal year ending 31st March 2004

➟ ROA and ROS: 3.2%

RYOBI LIMITED ANNUAL REPORT 2002

5

R E V I E W

O F

D I E

O P E R A T I O N S

C A S T I N G S

The earnings pillar driving growth at Ryobi
REVIEW

As one of the world’s leading die casting manufacturers, Ryobi supplies die casting products
to a variety of fields including automobile, electronics and communications. Our die castingproducts for automobiles, including cylinder blocks and transmission cases, are employed inapproximately 2,000 parts of more than 100 automobile models in Japan and overseas.
Our aluminum die castings are lightweight, have excellent durability and are superior
in terms of recyclability. These die castings have also attracted attention in all fields as aneffective technology for the protection of the environment, including the conservation ofenergy and resources. In addition to aluminum die casting products, Ryobi is focusing
efforts on even lighter-weight magnesium die casting products.
The secret behind our die castings, highly evaluated for their technologicalcapabilities and high quality, lies in our integrated manufacturing system, from die design
and fabrication to casting, machining and assembly, which allows a rapid and precise
response to customer needs. We are concentrating efforts on making new die castingproducts and increasing the quality of various functional die casting products through suchinnovative technology as Ryobi New Casting (RNC), a new die casting production systemthat enables the manufacture of high-strength and high-quality die casting products.
Ryobi has acquired ISO 9000 series certification, the international standard for
quality control and quality assurance systems; and ISO 14001 certification, theinternational standard for environmental management systems, which demonstrates thecomprehensiveness and effectiveness of the Company’s systems.

V6 CYLINDER BLOCK FOR AUTOMOBILE DIESEL ENGINESDie casting products contribute to the achievement of lighter automobiles. In
particular, this V6 cylinder block, manufactured using the Company’s proprietaryprocessing methods, has superior strength and is particularly well regarded bycustomers.

RYOBI LIMITED ANNUAL REPORT 2002

6

NET SALESO P E R AT I N G I N C O M E(Millions of yen)

(Millions of yen)

110,000

105,000

Ryobi Die Casting (USA), Inc. Acquires ISO 14001 Certification

9,000

107,7548,099

104,264 104,803

Ryobi Die Casting (USA), Inc. acquired ISO 14001
certification, the international standard forenvironmental management systems, in June 2002.
This certification demonstrates that complete andeffective environmental protection systems are inplace, including resource and energy conservation,
reduction of waste generation and recycling. All of
Ryobi’s significant domestic and overseas die casting
facilities have now acquired ISO 14001 certification.

7,500

103,284

6,113
99,099100,000

5,736

6,000

5,509
4,803

95,0004,500

90,0003,000

85,000

1,500

0

0

98

99

00

01

02

PERFORMANCE

98

99

00

01

02

In the fiscal year ended 31st March 2002, net sales in die castings were ¥99.1 billion,
down 8.0% from a year earlier. Operating income dropped 32.0% to ¥5.5 billion, while
the ratio of operating income to net sales fell from 7.5% in the previous term to 5.6%.
Assisted by the effects of currency exchange rates, overseas net sales in thissegment increased, but not enough to offset the decline in domestic sales to theautomobile industry, which is a mainstay customer, as well as the electronics andcommunications industries caused by the contraction of demand in information
technology (IT) fields.

OUTLOOK

Ryobi is using the knowledge and expertise accumulated through its businesses as oneof the world’s top manufacturers of die casting products, as well as its three-region
structure of Japan, the United States and Europe, to broaden and deepen ties with theworld’s automobile manufacturers. The Company is strengthening development oftechnology for highly strong, thin-wall die castings and of new alloys. In addition, Ryobi
is working to expand sales in non-automobile industries, including those for mobile
telephone-related components, frames for next-generation large-screen plasma televisions,and video camera components for the electronics and communications fields.

CHASSIS AND STAND FOR LARGE-SCREEN PLASMA TELEVISIONSDie casting products are being used in frames of large-screen plasma televisions.
This is the result of the introduction of our state-of-the-art 2500t die casting machine,which makes possible the production of large, lightweight products.

RYOBI LIMITED ANNUAL REPORT 2002

7

P R I N T I N G

E Q U I P M E N T

Aiming to increase revenues by expanding new fields

REVIEW

Ryobi already boasts the largest share of the market for small offset printing presses.
We provide high-quality, easy-to-use products as a comprehensive manufacturer ofprinting systems by participating in the market for medium-size offset printing presses
and digital offset printing presses and developing prepress systems.
Advancing product development with an emphasis on increasing speed,automation and labor-saving functions, our offset printing presses have received highappraisal in countries worldwide, including Japan. In prepress systems, we respond to
demands in the printing industry through the development of high-performance
multi-function editing workstations and original fonts.
All production facilities in this segment have achieved ISO 9000 seriescertification, the international standard for quality control and quality assurance
systems, and all significant facilities have acquired ISO 14001 certification, theinternational standard for environmental management systems. Further, theCompany’s research and development (R&D) efforts are directed at the developmentof environmentally friendly products.

RYOBI 755 (TYPE 5-D)
The new RYOBI 750 series, which is capable of handling
paper up to size B2, incorporates many automaticmechanisms and offers productivity gains together withhigh print quality. This series is equipped with control
systems that reduce the number of test sheets and solution
consumed, which makes it environmentally friendly.

RYOBI LIMITED ANNUAL REPORT 2002

8

NET SALESO P E R AT I N G I N C O M E(Millions of yen)

(Millions of yen)

30,0003,000

RYOBI 3404DI Receives Annual Machinery and Industrial DesignAwards and Good Design Awards.
2,553

25,40325,00020,00023,173 22,693
18,9232,500

20,6792,000

15,0001,500

10,000

1,000

1,938
1,778

743
5,000

638

500

0

The RYOBI 3404DI has been awarded the Distinctive Merit Award at the 31st Annual
Machinery and Industrial Design Awards sponsored by the Nikkan Kogyo Shimbun, aJapanese newspaper focusing on businessand technology. This product also won theGood Design Award 2001 from the Japan
Industrial Design Promotion Organization. The
RYOBI 3404DI received favorable evaluations
for its functions, performance, suitability formarket needs and environmental friendliness.

0

98

99

00

01

02

PERFORMANCE

98

99

00

01

02

In the fiscal year ended 31st March 2002, net sales of printing equipment declined
2.1% to ¥22.7 billion, and operating income dropped 14.1% to ¥0.6 billion comparedwith fiscal 2001. The ratio of operating income to net sales contracted to 2.8% from
3.2% in the previous fiscal year.
Sluggish economic conditions domestically and abroad prevented growth in net
sales, while increased market competition put pressure on profits. However, theCompany began full-scale marketing of its next-generation digital offset printing pressin Japan, the United States and Europe, and it quickly won high acclaim in themarketplace.

OUTLOOKAs with die casting business, the Company will maximize the allocation ofmanagement resources in the printing equipment business to expand its primary sourceof earnings. For that reason, the Company is strengthening development andmarketing of digital offset printing presses and medium-size offset printing presses—
growth areas in which Ryobi is competitive. The Company is also seeking further
reductions in costs, and is enhancing the procurement from overseas in order to
respond to changes in exchange rates.

RYOBI 3404DI
The RYOBI 3404DI digital offset printing press allows the input
of print data directly to the printing plate mounted in the press
for printing. This printing press combines high productivity withsuperior operability and print quality, which allows the quickcompletion of color print jobs.

RYOBI LIMITED ANNUAL REPORT 2002

9

NET SALESO P E R AT I N G I N C O M E(Millions of yen)

(Millions of yen)
3,000

120,000

107,239
99,864

P O W E R
T O O L S

104,094

100,000

2,500

80,0002,000

60,0001,500

50,83440,000

1,866

1,176
32,778

1,154

1,000

555
500

20,000

371

0

0

98

99

00

01

02

98

99

00

01

02

Building a structure that creates steady profits
REVIEW

Ryobi boasts a comprehensive lineup of power tools and lawn and garden equipment powered by electricalcurrent(corded), batteries(cordless), engines and compressed air. The Company’s products are widely used
and appreciated by professionals and amateurs alike, and meet any need in serious home construction andimprovement, hobbies and gardening. In addition to creating products that are highly functional, light,
compact and safe, this segment stresses product ease of use in its R&D.
The segment is also engaged in the field of builders’ hardware, marketing its mainstay door closers fora wide range of residential and buildings, as well as hinges and a broad lineup of other architecture hardware.
These products contribute to the safety and comfort of both residential and business environments.
The Company’s major facilities for power tools and builders’ hardware have acquired ISO 9000 seriescertification, the international standard for quality control and quality assurance systems, as well as ISO
14001 certification, the international standard for environmental management systems. R&D is directed
toward the development of environmentally friendly products.

PERFORMANCEIn the fiscal year ended 31st March 2002, net sales in the power tools dropped 35.5% to ¥32.8 billion, andoperating income plunged 70.2% to ¥0.6 billion. The ratio of operating income to net sales declined to
1.7% compared with 3.7% in the previous fiscal year.
The difference in year-on-year performance for this segment is partially due to the inclusion in fiscal
2001 of the sale of our North American lawn and garden equipment business. The domestic market
environment continues to be harsh due to a decline in housing construction.

OUTLOOK

The power tools business is improving profitability by accelerating the shift to manufacturing costcompetitive products at its subsidiary in Dalian, China, as well as by stressing the development oflightweight, compact and easy-to-use products. The business is also bolstering the profitability of its
domestic power tool operations, and strengthening its competitiveness in this market.
Further, the builders’ hardware business is shifting production of door closers, its principal product,
to Dalian and will expand to utilize the advantage of overseas production to manufacture cost-competitive
products. Another measure directed at the improvement of profitability is strengthening the development
and sale of builders’ hardware with unique products.

W-146D CIRCULAR SAW
The W-146D professional electric
circular saw features a high-intensity
light emitting diode (LED) light sourcefor high efficient working underpoorly illuminated conditions, and islightweight, compact and userfriendly.

D3550 DOOR CLOSER
D3550 series door closers meet thestrictest standard in the U.S. (ANSI
A156.4 Grade 1) and standard in Europe(EN 1154, including 1634 Part 1). This
series has an operating life in excess
of 2 million cycles, and is equippedwith a closing power adjustment.

RYOBI LIMITED ANNUAL REPORT 2002

10

F I N A N C I A LS E C T I O N

F I S C A L P E R I O D C O M PA R AT I V E S U M M A R Y
RYOBI LIMITED AND CONSOLIDATED SUBSIDIARIES(For the years ended 31st March)Millions of Yen

For the fiscal period:
Net sales ............................................
Cost of sales ......................................
Gross profit ........................................
Selling, general and administrative
expenses ...........................................
Operating income .............................
Income taxes .....................................
Net income (loss) ..............................
As at fiscal year-end:
Total assets ........................................
Total shareholders’ equity ...............

2002

2001

2000

1999

1998

1997

¥ 156,139
126,11330,026¥184,282
144,567
39,715¥240,074
190,21449,860¥242,774
200,494
42,280¥232,997
189,916
43,081¥208,198
169,568
38,63023,662
6,364
2,188
2,081

29,576
10,139(1,150)2,907

42,557
7,303(11,231)2,831

35,4636,817
1,719(3,086)34,082
8,999
3,066
1,437

31,7436,887
3,421(3,775)¥ 165,401
33,379¥193,001
29,501¥238,080
33,360¥233,654
32,540¥239,219
36,916¥225,504
36,767¥ (18.02)
3.75¥¥ (22.05)
7.50

Yen

Per share data:
Net income (loss)—Primary ...........
Cash dividends ..................................

¥

12.19
—

¥ 17.04—¥ 16.59
—

8.39
7.50

Notes: 1. Net income (loss) per share figures are based on the weighted average number of shares outstanding each year.
2. Cash dividends per share are the amounts applicable to the respective years, including dividends to be paid after the end of the year.

RYOBI LIMITED ANNUAL REPORT 2002

11

M A N A G E M E N T ’ S D I S C U S S I O N A N D A N A LY S I S

OPERATING PERFORMANCE

Consolidated net sales for the fiscal year ended 31st March 2002, declined 15.3% to ¥156,139 million. Of this,domestic sales decreased 12.1% to ¥103,907 million and overseas sales also decreased 21.0% to ¥52,231
million. A significant portion of the decline in sales is attributable to the company‘s decision to sell the North
American lawn and garden business and fishing tackle business.
Operating income declined by 37.2% to ¥6,364 million, resulting in the narrowed operating income ratio by
1.4%, as compared with prior year performance.
Net sales and operating income by business segment are discussed below.
Die Castings

Net sales in the Die Castings segment decreased 8.0% to ¥99,099 million, with operating income of ¥5,509
million declining by 32.0% compared with prior year performance. The decrease was mainly due to a slump
in sales in the domestic automobiles and information technology industries.
Printing Equipment

Net sales in the Printing Equipment segment decreased 2.1% to ¥22,693 million, with operating income of¥638 million representing are 14.1% decline from the prior year. The intensive price competition in the marketplace narrowed the margin level of this business segment.
Power Tools

Net sales in the Power Tools segment was reduced by 35.5% to ¥32,778 million, with operating income of¥555 million resulting in a significant decline of 70.2% from the prior year. The significant decline was mainly
due to the North American lawn and garden business, which was sold during the prior year.
Other

Net sales in Other segment slipped 37.8% to ¥1,569 million, with an operating loss of ¥342 million. The significant decline was due to the fishing tackle business segment, which was sold during the prior year.

NET SALES(Millions of yen)

300,000

250,000

232,997242,774 240,074

208,198
200,000

184,282
156,139150,000

100,000

50,000

0

97

98

99

00

01

02

RYOBI LIMITED ANNUAL REPORT 2002

12

LIQUIDITY AND FINANCIAL POSITION

Net cash provided by operating activities during this fiscal year decreased ¥1,637 million to ¥13,137 million.
Net cash used in investing activities was ¥553 million mainly for the purchases of property, plant andequipment.
Net cash used in financing activities decreased ¥14,928 million to ¥17,670 million. The cash used includes
the repayment of ¥14,672 million for domestic convertible bond, which matured on March 29, 2002. As aresult, the Ryobi Group reduced the interest-bearing debts which include bank loans, commercial papers
and bonds 19.7% to ¥77,763 million.
In the aggregate, the consolidated cash flow of the Ryobi Group recorded a net decrease in cash andcash equivalents of ¥4,790 million and resulted in ¥13,879 million at the end of fiscal year, after necessary
adjustment for exchange rate changes.
Total assets decreased 14.3% to ¥165,401 million, resulting from the securitisation of non-consolidated
trade receivables and the sale of overseas power tool sales companies during the fiscal year.
Total shareholders’ equity improved by 13.1% to ¥33,379 million. As a result, the equity ratio rose to 20.2%
from 15.3% a year earlier.

O P E R AT I N G I N C O M E(Millions of yen)

12,000

10,13910,000

8,999
8,000

7,303
6,887

6,817
6,364

6,000

4,000

2,000

0

97

98

99

00

01

02

RYOBI LIMITED ANNUAL REPORT 2002

13

C O N S O L I D AT E D B A L A N C E S H E E T S
RYOBI LIMITED AND CONSOLIDATED SUBSIDIARIES(As at 31st March 2002 and 2001)

Millions of Yen

ASSETS

Thousands of
U.S. Dollars(Note 1)

2002

2001

2002

¥ 13,879
2,715¥ 18,669
2,561$ 104,158
20,37531,625
78
1,509
(113)
30,0262,018
988

44,764
301
2,236
(413)
34,226
1,187
929

237,336585
11,325(848)
225,336
15,144
7,415

Total current assets ............................................................................................

82,725

104,460

620,826

Property, plant and equipment (Note 6)
Land ................................................................................................................................
Buildings and structures ............................................................................................
Machinery and equipment .........................................................................................
Construction in progress ............................................................................................

20,13738,90685,737744

20,661
38,68086,634
1,169

151,122
291,977
643,430
5,583

Total .......................................................................................................................
Accumulated depreciation .........................................................................................

145,524(86,895)

147,144(86,191)

1,092,112(652,120)

Net property, plant and equipment ..................................................................

58,62960,953439,992

Investments and other assets
Investments in securities (Notes 3 and 6) ...............................................................
Investments in and advances to unconsolidated subsidiaries and affiliates ....
Intangible fixed assets ................................................................................................
Deferred tax assets (Note 9) ......................................................................................
Other ..............................................................................................................................
Allowance for doubtful accounts ..............................................................................

10,876
342
2,109
7,594
3,494
(368)

10,922617
2,253
10,556
4,218(978)81,621
2,567
15,82756,991
26,221(2,762)

Total investments and other assets .................................................................

24,047

27,588

180,465

Total ..............................................................................................................................

¥165,401¥193,001$1,241,283

Current assets
Cash and cash equivalents ........................................................................................
Time deposits (Note 6) ................................................................................................
Notes and accounts receivable (Note 6)
Trade ..........................................................................................................................
Unconsolidated subsidiaries and affiliates .........................................................
Other ..........................................................................................................................
Allowance for doubtful accounts .........................................................................
Inventories (Note 4) .....................................................................................................
Deferred tax assets (Note 9) ......................................................................................
Prepaid expenses and other ......................................................................................

See notes to consolidated financial statements.

RYOBI LIMITED ANNUAL REPORT 2002

14

Thousands of
U.S. Dollars(Note 1)Millions of Yen

LIABILITIES AND SHAREHOLDERS’ EQUITY

2002

2001

2002

¥ 28,963
22,297¥ 34,440
23,959$ 217,358
167,332

29,616
260
1,573
5,392
205
—
7,122

37,317
421
2,350
7,909
133
1,810
7,428

222,259
1,951
11,80540,465
1,539—
53,449Total current liabilities ........................................................................................

95,428

115,767

716,158

Long-term liabilities
Long-term debt (Note 6) ..............................................................................................
Accrued severance indemnities (Note 7) ................................................................
Other long-term liabilities (Note 5) ............................................................................

27,202
5,111
3,658

39,594
4,116
3,090

204,143
38,35627,452

Total long-term liabilities ...................................................................................

35,97146,800269,951

Minority interests (Note 5) .............................................................................................

623

933

4,675

Shareholders’ equity (Notes 5 and 8)
Common stock
Authorised: 500,000,000 shares
Issued: 171,230,715 shares ............................................................................
Additional paid-in capital ...........................................................................................
Land revaluation reserve (Note 5) ............................................................................
Deficits ...........................................................................................................................
Unrealised gain on available-for-sale securities ...................................................
Adjustments on foreign currency statement translation ......................................
Treasury stock (532,672 shares in 2002, 521,337 shares in 2001) ..........................

18,472
23,517610(4,106)
2,641(7,689)(66)

18,472
23,517—(5,652)
2,229(9,001)(64)

138,626
176,488
4,578(30,814)
19,820(57,704)(495)

Total shareholders’ equity .................................................................................

33,37929,501

250,499

Total .......................................................................................................................

¥165,401¥193,001$1,241,283

Current liabilities
Short-term borrowings (Note 6) ................................................................................
Current portion of long-term debt (Note 6) ..............................................................
Notes and accounts payable
Trade ............................................................................................................
Unconsolidated subsidiaries and affiliates ...........................................
Other ............................................................................................................
Accrued expenses .......................................................................................................
Income taxes payable .................................................................................................
Accrued loss on disposal of business segment .....................................................
Other current liabilities ...............................................................................................

Commitments and contingent liabilities (Note 11)

RYOBI LIMITED ANNUAL REPORT 2002

15

C O N S O L I D AT E D S TAT E M E N T S O F I N C O M E
RYOBI LIMITED AND CONSOLIDATED SUBSIDIARIES(For the years ended 31st March 2002 and 2001)
Thousands of
U.S. Dollars(Note 1)Millions of Yen

2002

2001

2002

Net sales ...........................................................................................................................
Cost of sales .....................................................................................................................

¥156,139
126,113¥184,282
144,567$1,171,775
946,439

Gross profit ...............................................................................................................
Selling, general and administrative expenses .........................................................

30,026
23,662

39,71529,576225,336
177,576

Operating income ....................................................................................................
Other income
Interest and dividends ................................................................................................
Gain on sales of investments in securities ..............................................................
Foreign exchange gain ...............................................................................................
Other ..............................................................................................................................

6,364

10,13947,760

323
753
424
1,421

460
660
736
1,294

2,424
5,651
3,182
10,664

Total other income ...................................................................................................
Other expenses
Interest ..........................................................................................................................
Loss on disposal of property, plant and equipment ...............................................
Loss on disposal of business segment .....................................................................
Early retirement benefits ............................................................................................
Other ..............................................................................................................................

2,921

3,150

21,921

2,379
678
205
565
1,502

3,677
568
5,709
158
1,386

17,854
5,088
1,538
4,240
11,272

Total other expenses ...............................................................................................

5,329

11,49839,992

Income before income taxes and other items ...........................................................
Income taxes (Note 9)
Current ...........................................................................................................................
Deferred ........................................................................................................................

3,956

1,791

29,689

281
1,907

278
(1,428)2,109
14,311

Total income taxes ..................................................................................................

2,188(1,150)16,420Minority interests ...........................................................................................................

(313)

(34)

Net income .......................................................................................................................

¥ 2,081¥ 2,907¥ 12.19
11.59—

15,617

U.S. Dollars(Note 1)Yen

Per share of common stock
Net income ...........................................................................................................
Fully diluted net income .....................................................................................
Cash dividends applicable to the year ............................................................

(2,348)$¥ 17.04
15.72
—

$

0.091
0.087
—

See notes to consolidated financial statements.

RYOBI LIMITED ANNUAL REPORT 2002

16

C O N S O L I D AT E D S TAT E M E N T S O F S H A R E H O L D E R S ’ E Q U I T Y
RYOBI LIMITED AND CONSOLIDATED SUBSIDIARIES(For the years ended 31st March 2002 and 2001)
Millions of Yen
Number of
Shares ofCommon Stock(Thousands)

Adjustments
Unrealised gain on
on foreign
available-for-sale currency statement Treasury
securities
translationstock

Balance at 31st March 2000 ......................
Net income ................................................
Bonuses to directors and statutory
auditors .....................................................
Unrealised gain on available-for-salesecurities increased ...............................
Adjustments on foreign currency
statement translation decreased .........
Treasury stock increased, net(78,832 shares) .........................................

—

Balance at 31st March 2001 ......................
Net income ................................................
Bonuses to directors and statutory
auditors .....................................................
Transfer to land revaluation reserve ....
Land revaluation reserve ........................
Unrealised gain on available-for-salesecurities increased ...............................
Adjustments on foreign currency
statement translation increased ..........
Treasury stock decreased, net(11,335 shares) .........................................

171,231
—
—
—
—

—

—

—

—

—

—

—

(2)

Balance at 31st March 2002 ......................

171,231¥18,472¥23,517¥610¥(4,106)¥2,641¥(7,689)¥(66)

Balance at 31st March 2001 ......................
Net income ................................................
Bonuses to directors and statutory
auditors .....................................................
Transfer to land revaluation reserve ....
Land revaluation reserve ........................
Unrealised gain on available-for-salesecurities increased ...............................
Adjustments on foreign currency
statement translation increased ..........
Treasury stock decreased, net(11,335 shares) .........................................

$138,626—$176,488—$ ——$(42,417)
15,617$16,728—$(67,550)—$(480)
—

—
—
—

—
—
—

—
—
4,578

(37)
(3,977)
—

—
—
—

—
—
—

—
—
—

—

—

—

—

3,092

—

—

—

—

—

—

—

9,846

—

—

—

—

—

—

—

(15)

Balance at 31st March 2002 ......................

$138,626$176,488$4,578$(30,814)$19,820$(57,704)$(495)

CommonStock

Additional
Paid-in
CapitalLand
Revaluation
reserve

Deficits

171,231—¥18,472—¥23,517—¥——¥(8,555)
2,907

¥ —
—

—

—

—

—

(4)

—

—

—

—

—

—

—

—

—

—

—

—

—

—

10

18,472—

23,517———(5,652)
2,081

2,229
—

(9,001)
—

(64)
—

—
—
—

—
—
—

—
—
610

(5)
(530)
—

—
—
—

—
—
—

—
—
—

—

—

—

—

—

412

—

—

—

—

—

—

—

—

1,312

—

¥

—
—

¥(74)
—

—

—

—

—

2,229

—

—

—

—

(9,001)—Thousands of U.S. Dollars (Note 1)

See notes to consolidated financial statements.

RYOBI LIMITED ANNUAL REPORT 2002

17

C O N S O L I D AT E D S TAT E M E N T S O F C A S H F L O W S
RYOBI LIMITED AND CONSOLIDATED SUBSIDIARIES(For the years ended 31st March 2002 and 2001)
Thousands of
U.S. Dollars(Note 1)Millions of Yen

2002

2001

2002

¥ 3,956¥ 1,791$ 29,689

(118)
6,195
205
498
(750)

130
8,052
5,709
344
(660)

(886)
46,492
1,538
3,737(5,629)10,443
1,115(5,667)(1,920)
(820)

(809)
(456)
181
(620)
1,112

78,371
8,368(42,529)(14,409)(6,153)

Net cash provided by operating activities ...................................................

13,137

14,774

98,589Investing activities
Purchase of property, plant and equipment ............................................................
Proceeds from sale of property, plant and equipment ..........................................
Proceeds from sale of investments in securities ...................................................
Proceeds from disposal of business segment ........................................................
Payments for disposal of business segment ...........................................................
Other ..............................................................................................................................

(4,020)
1,295
1,134
750
(247)
535

(5,322)794
878
18,645(1,516)(221)(30,169)
9,719
8,510
5,629
(1,854)
4,015

Net cash provided by (used in) investing activities ...................................

(553)

13,258(4,150)Financing activities
Proceeds from long-term debt ..................................................................................
Repayments of long-term debt ..................................................................................
Decrease in short-term borrowings, net .................................................................
Other ..............................................................................................................................

10,616(24,421)(3,381)(484)

16,677(20,314)(28,666)(295)

79,670(183,272)(25,373)(3,632)

Net cash used in financing activities ...........................................................

(17,670)(32,598)(132,607)

Foreign currency translation adjustments on cash and cash equivalents ..........

296

153

2,221

Net decrease in cash and cash equivalents .............................................................

(4,790)(4,413)(35,947)

Cash and cash equivalents at beginning of year ......................................................

18,66923,082

140,105

Cash and cash equivalents at end of year .................................................................

¥ 13,879¥ 18,669$ 104,158

Additional cash flow information
Interest paid .............................................................................................................

¥ 2,405¥ 4,063$ 18,049

Operating activities
Income before income taxes and other items ........................................................
Adjustments for:
Income taxes—returned (paid) ............................................................................
Depreciation and amortisation .............................................................................
Loss on disposal of business segment ................................................................
Loss on sales or disposals of property, plant and equipment ..........................
Gain on sales of investments in securities .........................................................
Changes in assets and liabilities
Decrease (increase) in notes and accounts receivable ................................
Decrease (increase) in inventories ....................................................................
Increase (decrease) in notes and accounts payable .....................................
Decrease in accrued expenses ..........................................................................
Other, net ...................................................................................................................

See notes to consolidated financial statements.

RYOBI LIMITED ANNUAL REPORT 2002

18

N O T E S T O C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S
RYOBI LIMITED AND CONSOLIDATED SUBSIDIARIESFor the years ended 31st March 2002 and 2001

1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements have been prepared in accordance with the provisions set forth in the Japanese Securities and Exchange Law and its related accounting regulations, andin conformity with accounting principles and practices generally accepted in Japan.
In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to the consolidated
financial statements issued domestically in order to present them in aform which is more familiar to readers outside Japan. In addition, thenotes to the consolidated financial statements include information
which is not required under accounting principles generally acceptedin Japan but is presented herein as additional information.
The consolidated financial statements are not intended to present
the financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted incountries and jurisdictions other than Japan.
The consolidated financial statements are stated in Japanese yen,
the currency of the country in which Ryobi Limited (“the Company”) is
incorporated and operates. The translations of Japanese yen amounts
into U.S. dollar amounts are included solely for the convenience of readers outside Japan and have been made at the rate of ¥133.25 to $1, theapproximate rate of exchange at 31st March 2002. Such translations
should not be construed as representations that the Japanese yenamounts could be converted into U.S. dollars at that or any other rate.
Certain reclassifications have been made in the 2001 consolidated
financial statements to conform to the classifications used in 2002.
2. Summary of Significant Accounting Policies(a) Principles of consolidation
The consolidated financial statements include the accounts of the Company and its significant subsidiaries (“the Ryobi Group”). Under thecontrol or influence concept, those companies in which the Parent,
directly or indirectly, is able to exercise control over operations are
fully consolidated, and those companies over which the Ryobi Group
has the ability to exercise significant influence are accounted for by
the equity method.
(i) Consolidated subsidiaries
The major consolidated subsidiaries are listed below:
Tokyo Light Alloy Co., Ltd. (Japan)
Ryobi North America, Inc. (U.S.A.)
Ryobi Die Casting (U.S.A.), Inc.
(ii) Affiliate
The major affiliate accounted for under the equity method is listed
below:
Ryobi - Tech Corporation (Taiwan)

The number of consolidated subsidiaries and affiliates accounted
for under the equity method as at 31st March 2002 and 2001 was asfollows:
2002

2001

Consolidated subsidiaries .......................................

15

20

Affiliates ......................................................................

3

3

The number of unconsolidated subsidiaries and affiliates not accounted for under the equity method as at 31st March 2002 and 2001
was as follows:
2002

2001

Unconsolidated subsidiaries ...................................

4

6

Affiliates ......................................................................

00

The investments in such unconsolidated subsidiaries and affiliates
not accounted for under the equity method are carried at cost. If theequity method of accounting had been applied to the investment inthese companies, the effect on the accompanying consolidated financial statements would not be material.
All significant inter-company transactions, account balances andunrealised profits among the companies have been eliminated.
The excess of the cost of an acquisition over the fair value of the net
assets of the acquired subsidiary at the date of acquisition is being
amortised over a period of 5 years.
(b) Cash and Cash equivalents
Cash and cash equivalents consist of cash on hand, deposits with banks
and financial institutions which are unrestricted as to withdrawal oruse, and which have original maturities of three months or less.
(c) Inventories
Inventories are valued at cost for the Company and domestic subsidiaries and the lower of cost or market for foreign subsidiaries. Cost isdetermined by methods according to the classification of inventories
as follows:(i) Finished products and work in process
Inventories held by the Company and domestic subsidiaries:
Die castings ...................... Retail method
Dies .................................... Specific identification method
Printing equipment .......... Average method
Foreign subsidiaries mainly adopt first-in first-out method.
(ii) Raw materials, supplies and purchased goods
Last purchase invoice price method for the Company and domestic subsidiaries.
Foreign subsidiaries mainly adopt first-in first-out method.
(d) Marketable securities and investments in securities
Marketable and investment securities are classified, depending on
management’s intent, as follows:I) trading securities, which are held for the purpose of earning capitalgains in near term are reported at fair value, and the related unrealised

RYOBI LIMITED ANNUAL REPORT 2002

19

gains and losses are included in income statement, II) held-to-maturity debt securities, which are expected to be held to maturity with thepositive intent and ability to hold to maturity are reported at amortisedcost, and III) available-for-sale securities, which are not classified aseither of the aforementioned securities, are reported at fair value, withunrealised gains and losses, net of applicable taxes, reported in a separate component of shareholders’ equity.
Non-marketable available-for-sale securities are stated at cost determined by the moving-average method.
For other than temporary declines in fair value, investment securities are reduced to net realisable value by a charge to income.
(e) Depreciation and amortisation
Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment of the Company and its consolidated domestic subsidiaries is computed by the declining-balance method at rates
based on the estimated useful lives of the assets, while the straightline method is principally applied to the property, plant and equipmentof consolidated foreign subsidiaries. The range of useful lives is from 3
to 50 years for buildings and structures, and from 2 to 20 years formachinery and equipment.
Amortisation of intangible fixed assets, which consists of mainly
goodwill for foreign subsidiaries, is computed by the straight-line
method, over a period ranging from 5 to 40 years.
(f) Accrued severance indemnities and pension plan
The Company and domestic consolidated subsidiaries have a contributory or a non-contributory funded pension plan and unfunded pension
plans, which cover substantially all of their employees. Certain foreign
consolidated subsidiaries have defined benefit pension plans.
Effective 1st April 2000, the Ryobi Group adopted a new accounting
standard for employees’ retirement benefits and accounted for the liability for retirement benefits based on the projected benefit obligations and plan assets at the balance sheet date. The amount of thetransitional obligation of ¥9,092 million ($68,233 thousand), determined
as at the beginning of this fiscal year, is amortised over ten years.
Unrecognised prior service cost is amortised at the beginning of thisfiscal year by using straight-line method over employees’ remaining
service period or shorter period (ranging from 11 to 16 years).
Unrecognised net actuarial loss is amortised from next fiscal year byusing straight-line method over employees’ remaining service period
or shorter period (ranging from 11 to 16 years).
(g) Leases
All leases are accounted for as operating leases. Under Japanese
accounting standards for leases, finance leases that deem to transfer
ownership of the leased property to the lessee are to be capitalised,
while other finance leases are permitted to be accounted for as operating lease transactions if certain “as if capitalised” information is disclosed in the notes to the lessee’s financial statements.
(h) Income taxes
The Ryobi Group adopted an accounting method for interperiod allocation of income taxes based on the asset and liability method.

Deferred income taxes are recorded to reflect the impact of temporary differences between assets and liabilities recognised for financial reporting purposes and such amounts recognised for tax purposes.
These deferred taxes are measured by applying currently enacted tax
laws to the temporary differences.
(i) Appropriation of retained earnings
Appropriations of retained earnings at each year end are reflected in
the financial statements for the following year upon shareholder’s approval.
(j) Translation of foreign currency accounts
All current and non-current receivables and payables denominated inforeign currencies are translated into Japanese yen at the exchange
rates at the balance sheet date. The foreign exchange gains and losses
from translations are recognised in the income statement to the extent that they are not hedged by forward exchange contracts.
(k) Translation of foreign currency financial statements (accounts offoreign subsidiaries)
The balance sheet accounts of the consolidated overseas subsidiaries are translated into yen at the current exchange rates as at the balance sheet date except for shareholders’ equity, which is translated
at the historical exchange rate. Differences arising from such translation are shown as “Adjustments on foreign currency statement translation” in a separate component of shareholders’ equity in accordancewith the revised accounting standard for foreign currency translations.
Revenue and expense accounts of the consolidated overseas subsidiaries are translated into yen at the average exchange rate.
(l) Derivative and hedging activities
The Ryobi Group uses derivative financial instruments to manage its
exposure to fluctuations in foreign exchange and interest rates. Foreign exchange forward contracts, currency swaps and interest rate
swaps are utilised by the Ryobi Group to reduce foreign currency exchange and interest rate risks. The Ryobi Group does not enter into
derivatives for trading or speculative purposes.
Derivative financial instruments and foreign currency transactions
are classified and accounted for as follows: a) all derivatives berecognised as either assets or liabilities and measured at fair value,and gains or losses on derivative translations are recognised in theincome statement and b) for derivatives used for hedging purposes, if
derivatives qualify for hedge accounting because of high correlationand effectiveness between the hedging instruments and the hedged
items, gains or losses on derivatives are deferred until of maturity of
the hedged transaction.
Long-term debt denominated in foreign currencies for which currency swaps are used to hedge the foreign currency fluctuations aretranslated at the contracted rate if the currency swaps qualify for hedge
accounting.
The interest rate swaps which qualify for hedge accounting and meet
specific matching criteria are not remeasured at market value but thedifferential paid or received under the swap agreements are recognised
and included in interest expense or income.

RYOBI LIMITED ANNUAL REPORT 2002

20

(n) Per share information
The computation of net income per share is based on the weighted
average number of shares of common stock outstanding during eachyear. The average number of common shares used in the computation, excluding treasury stock, was 170,704 thousand shares and 170,639
thousand shares for 2002 and 2001, respectively.
Fully diluted net income per share of common stock assumes fullconversion of the outstanding convertible notes at the beginning of
the year with an applicable adjustment for related interest expense,
net of tax, and full exercise of outstanding warrants.
Cash dividends per share presented in the accompanying consolidated statements of operations are dividends applicable to the respective years including dividends to be paid after the end of the year.

3. Marketable Securities and Investments in Securities
Information regarding each category of the securities classified as trading, held-to-maturity and available-for-sale at 31st March 2002 and 2001
was as follows:
Millions of Yen

Thousands of U.S. Dollars

2002
Cost

Unrealised
Gain

2001

Unrealised
Loss

Fair
Value

Cost

Unrealised
Gain

2002

Unrealised
Loss

Fair
Value

Cost

Unrealised
Gain

Unrealised
Loss

Fair
Value

Trading ...........................

—

—

—

—

—

—

—

—

—

—

—

—

Held-to-maturity ..........

—

—

—

—

—

—

—

—

—

—

—

—

Available-for-saleCorporate shares ....

¥5,083¥5,456¥(939)¥9,600¥5,690¥4,252¥(397)¥9,545$38,146$40,946$(7,047)$72,045

Bonds ........................

34

—

(4)

30

34

—

(3)

31

255

—

(30)

225

Total ................................

¥ 5,117¥ 5,456¥(943)¥ 9,630¥ 5,724¥ 4,252¥(400)¥ 9,576$38,401$ 40,946$ (7,077)$72,270

Available-for-sale securities whose fair value was not readily determinable as at 31st March 2002 and 2001 were as follows:

4. Inventories
Inventories as at 31st March 2002 and 2001 consisted of the following:Thousands of
U.S. Dollars

Millions of Yen

2002

2001

2002

Corporate shares ....................................

¥1,245¥1,346$9,343

Bonds ......................................................

1—

Total ..............................................................

¥1,246¥1,346

Thousands of
U.S. Dollars

2002

2001

2002

Finished products and purchased goods ...

¥14,680¥18,578$110,169

Work in process ..........................................

9,980

10,38474,897

8

Raw materials and supplies .......................

5,366

5,264

40,270$9,351

Total ..............................................................

¥30,026¥34,226$225,336

Available-for-sale

Proceeds from sales of available-for-sale securities for the years
ended 31st March 2002 and 2001 were ¥1,134 million ($8,510 thousand)and ¥878 million, respectively. Gross realised gains and losses on thesesales, computed on the moving-average cost basis, were ¥753 million($5,651 thousand) and ¥2 million ($15 thousand), respectively, for theyears ended 31st March 2002 and gross realised gain was ¥632 million
for the years ended 31st March 2001.
The book value of bonds by contractual maturity for securities classified as available-for-sale as at 31st March 2002 and 2001 were as follows:

Millions of Yen

Millions of Yen

Thousands of
U.S. Dollars

2002

2001

2002

Due in one year or less ...............................

¥30

—

$225

Due after one year through five years ......

1

¥31

8

Total ..............................................................

¥31

¥31

$233

5. Land Revaluation Reserve
Under the “Law of Land Revaluation”, promulgated on March 31, 1998
and revised at 31st March 1999 and 2001, certain consolidated subsidiary elected a one-time revaluation of its own-use land to a value basedon assessment of fixed assets tax and land price tax.
The resulting land revaluation excess represents unrealised appreciation of land and is stated, net of income taxes and attribution ofminority interest, as a component of shareholders’ equity. There is noeffect on the statement of income. Continuous readjustment is not permitted unless the land value subsequently declines significantly suchthat the amount of the decline in value should be removed from theland revaluation excess account and related deferred tax liabilities.
The details of the one-time revaluation as at 31st March, 2002 were as
follows:

RYOBI LIMITED ANNUAL REPORT 2002

21

Millions of Yen

Thousands of
U.S. Dollars¥ 275$ 2,064¥1,981$14,867

Thousands of
U.S. Dollars

Millions of Yen

Book value of land for business use

2002

2001

2002

Buildings and structures ........................

¥ 3,256¥3,129$24,435

Machinery and equipment ....................

1,696

2,037

12,728Land revaluation reserve, net of income

Land .........................................................

2,858

960

21,448tax of ¥700 million ($5,253 thousand) andTime deposit ............................................

108

4

811

attribution of minority interest ofNotes and accounts receivable ............

4,209

546

31,587

before revaluation ........................................
Book value of land for business use
after revaluation ...........................................

¥394 million ($2,957 thousand) ...................

¥ 610$ 4,578

6. Short-term Borrowings and Long-term Debt
The annual average interest rates applicable to short-term borrowings
were 1.3% and 2.3%, as at 31st March 2002 and 2001, respectively.
Commercial paper included short-term borrowings totaling ¥2,492
million ($18,702 thousand) and ¥2,183 million, as at 31st March 2002
and 2001, respectively.
Long-term debt at 31st March 2002 and 2001 consisted of the following:

Millions of Yen

Thousands of
U.S. Dollars

2002

2001

2002

Secured ...................................................

¥ 1,991¥ 1,617$ 14,942

Unsecured ...............................................

39,92939,290299,655

due 2003 ......................................................

6,880

6,880

51,632

2.8% convertible notes in yen due 2002 ....

—

14,672—Other ............................................................

699

1,094

5,246

Total ..............................................................

49,49963,553

371,475

Less: Current portion ..................................

(22,297)(23,959)(167,332)

Long-term debt, less current portion .........

¥27,202¥ 39,594$ 204,143

Loans principally from banks andinsurance companies with interest
rates ranging from 0.69% to 7.28% :Net book value of property:

Investments in securities .......................

83

445

623

Total .........................................................

¥12,210¥7,121$91,632

7. Accrued Severance Indemnities and Pension Plan
The Company and its certain consolidated subsidiaries have severance payment plans for employees. Under most circumstances, employees terminating their employment are entitled to retirement benefits determined based on the rate of pay at the time of termination,
years of service and certain other factors. Such retirement benefits
are made in the form of a lump-sum severance payment from the Company or from certain consolidated subsidiaries and annuity paymentsfrom a trustee. Employees are entitled to larger payments if the termination is involuntary, by retirement at the mandatory retirement age,by death, or by voluntary retirement at certain specific ages prior tothe mandatory retirement age.
The liabilities for employees’ retirement benefits at 31st March 2002
and 2001 consisted of the following:

Floating-rate guaranteed notes in euro

Thousands of
U.S. Dollars

Millions of Yen

The aggregate annual maturities of long-term debt at 31st March
2002 were as follows:

Years Ending 31st MarchMillionsof YenThousands of
U.S. Dollars

2003 ...................................................................

¥22,297$167,332

2004 ...................................................................

13,27999,6552005 ...................................................................

7,768

58,296

2006 ...................................................................

3,511

26,3492007 ...................................................................

1,890

14,1842008 and thereafter .......................................

754

5,659

Total ..................................................................

¥49,499$371,475

The assets of the Ryobi Group pledged as collateral for short-termloans and long-term debt with banks and other financial institutions at
31st March 2002 and 2001 were as follows:

2002

2001

2002

Projected benefit obligation .......................

¥ 54,289¥ 53,109$ 407,422

Fair value of plan assets .............................

(31,676)(32,328)(237,718)

Unrecognised prior service cost ...............

1,804

—

13,538Unrecognised actual loss ..........................

(12,120)(8,558)(90,957)

Unrecognised transitional obligation ........

(7,186)(8,276)(53,929)

Prepaid pension cost ..................................

—

169

—

Net liabilities ................................................

¥ 5,111¥ 4,116$ 38,356

The components of net periodic benefit costs for the years ended
31st March 2002 and 2001 were as follows:
Thousands of
U.S. Dollars

Millions of Yen

Service cost ................................................

2002

2001

2002

¥ 1,799¥ 1,603$13,501

Interest cost ................................................

1,517

1,561

11,385

Expected return on plan assets .................

(1,061)(1,151)(7,962)

Amortisation of prior service cost .............

(45)

—

(338)

Recognised actual loss ..............................

663

—

4,975

Amortisation of transitional obligation ......

1,086

799

8,150

Net periodic benefit costs ..........................

¥ 3,959¥ 2,812$29,711

RYOBI LIMITED ANNUAL REPORT 2002

22

Assumptions used for the years ended 31st March 2002 and 2001
were set forth as follows:
2002

2001

Discount rate .............................................................. 2.7%~3.0%

3.0%

Expected rate of return on plan assets .................

3.5%

3.5%

Amortisation of prior service cost ......................... 11~16 years—

Recognition period of actuarial gain / loss .......... 11~16 years 11~16 years
Amortisation of transitional obligation .................

10 years

10 years

8. Shareholders’ Equity
Japanese companies are subject to the Japanese Commercial Code(the “Code”) to which certain amendments became effective from 1st
October 2001.
Prior to 1st October 2001, the Code required at least 50% of the issue price of new shares, with a minimum of the par value thereof, tobe designated as stated capital as determined by resolution of theBoard of Directors. Proceeds in excess of amounts designated asstated capital were credited to additional paid-in capital. Effective 1st
October 2001, the Code was revised and common stock par values
were eliminated resulting in all shares being recorded with no par value.
Prior to 1st October 2001, the Code also required companies to appropriate from retained earnings to a legal reserve an amount equal toat least 10% of all cash payments which are made as an appropriationof retained earnings until such reserve equals to 25% of stated capital.
Effective 1st October 2001, the revised Code allows for such appropriation to be set aside as a legal reserve until such reserve equals
25% of stated capital. Effective 1st October 2001, the revised Code allows for such appropriations to be set aside as a legal reserve until
the total additional paid-in capital and legal reserve equals 25% ofstated capital. The amount of total additional paid-in capital and legal
reserve which exceeds 25% of stated capital can be transferred toretained earnings by resolution of the shareholders, which may beavailable for dividends. The Company’s legal reserve amount, which isincluded in deficits, totals ¥172 million ($1,291 thousand) and ¥172 as at
31st March 2002 and 2001, respectively. Under the Code, companies
may issue new common shares to existing shareholders without consideration as a stock split pursuant to a resolution of Board of Directors. Prior to 1st October, the amount calculated by dividing the total
amount of shareholders’ equity by the number of outstanding shares
after the stock split could not be less than ¥50. The revised Code eliminated this restriction.
Prior to 1st October 2001, the Code imposed certain restrictions on
the repurchase and use of treasury stock. Effective 1st October 2001,
the Code eliminated these restrictions allowing companies to repurchase treasury stock by a resolution of the shareholders at the general shareholders’ meeting and dispose of such treasury stock by resolution of the Board of Directors after 31st March 2002. The repurchasedamount of treasury stock cannot exceed the amount available for fu-

ture dividend plus amount of stated capital, additional paid-in capitalor legal reserve to be reduced in the case where such reduction was
resolved at the general shareholders’ meeting.
The Company may transfer portions of additional paid-in capital tostated capital by resolution of the Board of Directors. The Company
may also transfer portions of unappropriated retained earnings, available for dividends, to stated capital by resolution of the shareholders.
Dividends are approved by the shareholders at a meeting held subsequent to the fiscal year to which the dividends are applicable. Semiannual interim dividends may also be paid upon resolution of the Boardof Directors, subject to certain limitations imposed by the Code. Yearend dividends are reflected in the consolidated statements of shareholders’ equity when authorised.
9. Income Taxes
The Company and its domestic subsidiaries are subject to Japanesenational and local income taxes which, in the aggregate, resulted in anormal effective statutory tax rate of 40.9% for the years ended 31st
March 2002 and 2001.
The tax effects of significant temporary differences and tax loss
carryforwards which resulted in deferred tax assets and liabilities at
31st March 2002 and 2001 were as follows:
Thousands of
U.S. Dollars

Millions of Yen

2002

2001

2002

Deferred tax assets:
Accrued severance cost .......................

¥ 1,071

¥

572

$

8,038

Accrued loss on disposal of businesssegment ..................................................

—

740

—

Tax loss carryforwards ..........................

35,90532,934269,456

Other ........................................................

1,947

2,044

14,611

Valuation allowance ...............................

(27,438)(22,750)(205,914)

Deferred tax assets ....................................

¥ 11,485¥ 13,540$ 86,191¥ (1,855)¥ (1,575)$ (13,921)

consolidation ..........................................

—

(707)

—

Other ........................................................

(832)

(746)

(6,244)

Deferred tax liabilities:
Unrealised gain on available-for-salesecurities ................................................
Land revaluation difference forDeferred tax liabilities .................................

(2,687)(3,028)(20,165)

Net deferred tax assets ..............................

¥ 8,798¥ 10,512$ 66,026

Reconciliation between the normal effective statutory tax rate forthe years ended 31st March 2002 and 2001 and the actual effective tax
rates reflected in the accompanying consolidated statement of operation was as follows:

RYOBI LIMITED ANNUAL REPORT 2002

23

2002

2001

40.9%

40.9%

Millions of Yen

Normal effective statutory tax rate .......................

Trade notes discounted ..............................

Expenses not deductible for income tax
purposes .....................................................................

6.4—

Valuation allowance .................................................

6.3(74.3)—(31.2)

Taxation on per capita basis ...................................

2.0

2.9

Other, net ......................................................................

(0.3)

(2.5)

Actual effective tax rate ..........................................

55.3%(64.2)%

2002

2001

2002

¥1,398¥2,196$10,491

Guarantees and similar items

Realised loss on consolidated subsidiaries
which were liquidated ........................................

Thousands of
U.S. Dollars

Bank loans ..............................................

259

294

1,944

Lease .......................................................

1,603

1,570

12,030Total ..............................................................

¥3,260¥4,060$24,465(2) Leases
Future minimum lease payments of the Ryobi Group as at 31st March
2002 and 2001 under noncancelable finance leases that do not transfer ownership of leased assets to the lessee were as follows:

10. Research and Development Costs
Research and development costs were ¥1,771 million ($13,291 thousand) and ¥2,279 million for the years ended 31st March 2002 and 2001,
respectively.

Millions of Yen

11. Leases and Contingent Liabilities(1) Contingent liabilities
The Ryobi Group had the following contingent liabilities as at 31st March
2002 and 2001.

Thousands of
U.S. Dollars

2002

2001

2002

Current .........................................................

¥ 727

¥ 389

$ 5,456

Non-current .................................................

3,141

1,849

23,572

Total ..............................................................

¥3,868¥2,238$29,028

Lease expenses on such finance lease contracts without ownership transfer amounted to ¥550 million ($4,128 thousand) and ¥294 million forthe years ended 31st March 2002 and 2001, respectively.
As at 31st March 2002 and 2001, summarised information showing the assumed figures of acquisition cost, accumulated depreciation and net
book value, which include the portion interest thereon, of the leased properties and other assets under finance leases without ownershiptransfer were as follows:
Millions of Yen

Thousands of U.S. Dollars

2002
Acquisition
Cost

Buildings and structures ...........

¥

2001

Accumulated
Depreciation

4

¥

4

Net Leased
Property

Acquisition
Cost

¥

¥

0

Accumulated
Depreciation

2002
Net Leased
Property

Acquisition
Cost

¥

$

Net Leased
Property

4

¥ 3

30

$ 30

Machinery and equipment ........

3,416

960

2,456

2,772

832

1,940

25,636

7,205

18,431Other assets ..............................

1,652

240

1,412

351

54

297

12,398

1,801

10,597

Total .............................................

¥5,072¥1,204¥3,868¥3,127¥889¥2,238$38,064$9,036$29,028

Depreciation expense and interest expense, which are not reflectedin the accompanying statement of income, computed by the straightline method and the interest method were ¥550 million ($4,128 thousand) and ¥294 million for the years ended 31st March 2002 and 2001,
respectively.
Future minimum lease payments of the Ryobi Group as at 31st March
2002 and 2001 under noncancelable operating leases are as follows:

Millions of Yen

Thousands of
U.S. Dollars

2002

2001

2002

Current .........................................................

¥ 867

¥ 841

$ 6,507

Non-current .................................................

2,614

3,009

19,617

Total ..............................................................

¥3,481¥3,850$26,124

1

Accumulated
Depreciation$

0

12. Derivatives
The Ryobi Group enters into foreign exchange forward contracts, currency swaps and interest rate swaps to hedge risk and reduce exposure to fluctuations in market values of foreign exchange rates andinterest rates associated with certain assets and liabilities.
All derivative transactions are related to qualified hedges of interest and foreign currency exposures incorporated with its business.
Market risk of these derivatives is basically offset by opposite movements in the value of hedged assets. The Ryobi Group does not hold or
issue derivatives for speculative or trading purposes.
Market risk is the exposure created by potential fluctuations in market conditions, including interest or foreign exchange rates. The Ryobi
Group does not anticipate any losses arising from credit risk because
the counterparties to these derivatives are limited to major international financial institutions.
RYOBI LIMITED ANNUAL REPORT 2002

24

The execution of derivatives is controlled by the Finance Department of the Company, and by the Finance Division of consolidated subsidiaries. Derivative transactions have been made in accordance with internal policies which regulate the authorisation and credit limit amounts.
The Ryobi Group had the following derivatives contracts outstanding as at 31st March 2002 and 2001.
Million of Yen

Thousands of U.S. Dollars

2002

2001

2002

Contract Or
Notional Amount

Fair
Value

Contract Or
Notional Amount

Fair
Value

Contract Or
Notional Amount

Fair
Value

¥100

¥(2)

¥—

¥—

$750

$(15)

Interest swap:
Fixed rate payment, floating rate receipt ....

Note: Derivatives which qualify for hedge accounting were excluded from the market value information in 2002 and 2001.

13. Segment Information
The segment information classified by industry and geographical market area is presented below with respect to the years ended 31st March
2002 and 2001.

(1) Industry segment information
The Ryobi Group operates in four industry segments according to the product groups which are:—Die castings (“Die castings”)—Printing equipment (“Printing equipment”)—Electric and petro engine tools (“Power tools”)—Other products such as golf equipment, etc. (“Other”)
Millions of Yen

2002
Die castings

Printing equipment

Power tools

Other

Eliminations /corporate

Consolidated

Net sales:
Unaffiliated customer ......................................

¥99,099¥22,693¥32,778¥1,569Intersegment ....................................................

387

—

7

—

(394)

—

Total .......................................................................

99,486

22,69332,785

1,569

(394)

156,139

Operating costs and expenses ...........................

93,977

Operating income (loss) ......................................

¥ 5,509¥

Total assets ...........................................................
Depreciation .........................................................
Capital expenditure ..............................................

¥

22,05532,230

1,911

638

¥ 555

¥ (342)¥¥83,249¥25,449¥28,765

4,321

733

1,090

3,075

441

418

—

¥156,139(398)

149,775

4¥ 6,364¥1,395¥26,543¥165,401

54

—

6,198

9

—

3,943

Millions of Yen

2001
Die castings

Printing equipment

Power tools

Other

Eliminations /corporate

Consolidated

Net sales:
Unaffiliated customer ......................................

¥107,754¥23,173¥50,834¥2,521

Intersegment ....................................................

447

—

59

—

(506)

—

Total .......................................................................

108,201

23,17350,893

2,521

(506)

184,282

Operating costs and expenses ...........................

100,102

Operating income (loss) ......................................

¥ 8,099¥

Total assets ...........................................................
Depreciation .........................................................
Capital expenditure ..............................................

¥

22,43049,027

3,123743¥ 1,866¥ (602)¥¥ 90,226¥25,282¥40,060

4,743

721

1,511

3,263

498

655

—

¥184,282(539)

174,14333¥ 10,139¥1,004¥36,429¥193,001

27

—

7,002

125

—

4,541

RYOBI LIMITED ANNUAL REPORT 2002

25

Thousands of U.S. Dollars

2002
Die castings

Printing equipment

Power tools

Other

Eliminations /corporate

Consolidated$

Net sales:
Unaffiliated customer ......................................

$743,707$170,304$245,989$11,775—$1,171,775

Intersegment ....................................................

2,904

—

52

—

(2,956)—

Total .......................................................................

746,611

170,304

246,041

11,775(2,956)

1,171,775

Operating costs and expenses ...........................

705,268

165,516

241,876

14,341(2,986)

1,124,015

Operating income (loss) ......................................

$ 41,343$ 4,788$ 4,165$ (2,566)$

Total assets ...........................................................

$624,758$190,987$215,872$10,469$199,197

Depreciation .........................................................

32,428

5,501

8,180

405

—

46,514

Capital expenditure ..............................................

23,077

3,310

3,137

67

—

29,59130$

47,760$1,241,283

The amounts of corporate assets as at 31st March 2002 and 2001 included in the “Eliminations or corporate assets” were, respectively, ¥26,571
million ($199,407 thousand) and ¥36,451 million, which mainly consist of surplus assets in the Company (cash and securities) and long-term
investment assets (investments in securities).

(2) Geographical segment information
Millions of Yen

2002
Japan

North America

Other overseas

Eliminations /corporate

Consolidated

Net sales:
Unaffiliated customer ........................................................................

¥119,428¥21,393¥15,318

Intersegment ......................................................................................

4,033

2

3,571

(7,606)—

Total .........................................................................................................

123,461

21,395

18,889(7,606)

156,139

Operating costs and expenses .............................................................

118,551

21,09518,007(7,878)

149,775

Operating income ..................................................................................

¥ 4,910

¥

882

¥ 272

¥ 6,364

Total assets .............................................................................................

¥109,206¥19,229¥11,969¥24,997¥165,401

Eliminations /corporate

Consolidated

300

¥

¥

—

¥156,139

Millions of Yen

2001
Japan

North America

Other overseas

Net sales:
Unaffiliated customer ........................................................................

¥133,306¥33,933¥17,043—¥184,282

Intersegment ......................................................................................

5,728

858

4,321

¥

(10,907)—

Total .........................................................................................................

139,034

34,791

21,364(10,907)184,282

Operating costs and expenses .............................................................

131,216

33,805

20,103(10,981)

174,143

Operating income ..................................................................................

¥ 7,818¥986¥ 1,261¥74¥ 10,139

Total assets .............................................................................................

¥120,875¥19,010¥21,573¥31,543¥193,001

RYOBI LIMITED ANNUAL REPORT 2002

26

Thousands of U.S. Dollars

2002
Japan

North America

Other overseas

Eliminations /corporate

Consolidated$

Net sales:
Unaffiliated customer ........................................................................

$896,270$160,548$114,957—$1,171,775

Intersegment ......................................................................................

30,267

15

26,799(57,081)—

Total .........................................................................................................

926,537

160,563

141,756(57,081)

1,171,775

Operating costs and expenses .............................................................

889,689

158,311

135,137(59,122)

1,124,015

Operating income ..................................................................................

$ 36,848$ 2,252$ 6,619$ 2,041$

Total assets .............................................................................................

$819,557$144,308$ 89,823$187,595$1,241,283

The amounts of corporate assets as at 31st March 2002 and 2001
included in the “Eliminations or corporate assets” were ¥26,571 million ($199,407 thousand) and ¥36,451 million, respectively, which mainlycomprise surplus assets in the Company (cash and securities) and longterm investment assets (investments in securities).

(3) Export sales and sales by overseas subsidiaries
Export sales of the companies (i.e., export amounts made by the Company and its domestic subsidiaries) plus the sales by overseas consolidated subsidiaries for the years ended 31st March 2002 and 2001
are presented below:
Thousands of
U.S. Dollars

Millions of Yen

2002

2001

2002

47,76014. Subsequent Event
At the general shareholders’ meeting held on 27th June 2002, theCompany’s shareholders approved followings:(1) Reduction of additional paid-in capital
The Company reduces its additional paid-in capital of ¥11,900 million($89,306 thousand) to ¥11,617 million ($87,183 thousand) during the year
ended 31st March 2003.
(2) Purchase of treasury stock
The Company is authorised to repurchase treasury stock, at management discretion, of up to 5 million shares or ¥1,000 million ($7,505 thousand) during the period ending at the next general shareholders’ meeting.

Exports sales and sales by overseas
subsidiaries
North America ........................................

¥26,498¥38,772$198,859

Europe .....................................................

15,59017,033116,998

Other ........................................................

10,143

10,295

76,120Total ..............................................................

¥52,231¥66,100$391,977

Percentage of such sales against
consolidated net sales
North America ........................................

17.0%

21.1%

Europe .....................................................

10.0

9.2

Other ........................................................

6.5

5.6

Total ..............................................................

33.5%

35.9%

RYOBI LIMITED ANNUAL REPORT 200227

Tohmatsu & Co.
MS Shibaura Building
13-23, Shibaura 4-chome
Minato-ku, Tokyo I08-8530, JapanTe I :+81 -3-3457-7321
Fax :+81 -3-3457-1694
www.tohmatsu.co.jp

Deloitte
ToucheTohmatsu

INDEPENDENT AUDITORS' REPORTTo the Board of Directors of
Ryobi Limited:
We have examined the consolidated balance sheets of Ryobi Limited and consolidated subsidiaries
as of 31st March, 2002 and 2001, and the related consolidated statements of income, shareholders'equity, and cash flows for the years then ended, all expressed in Japanese yen. Our examinations
were made in accordance with auditing standards, procedures and practices generally accepted andapplied in Japan and, accordingly, included such tests of the accounting records and such otherauditing procedures as we considered necessary in the circumstances.
In our opinion, the consolidated financial statements referred to above present fairly the financial
position of Ryobi Limited and consolidated subsidiaries as of 31st March, 2002 and 2001, and theresults of their operations and their cash flows for the years then ended in conformity withaccounting principles and practices generally accepted in Japan applied on a consistent basis.
Our examinations also comprehended the translation of Japanese yen amounts into U.S. dollar
amounts and, in our opinion, such translation has been made in conformity with the basis statedin Note 1. Such U.S. dollar amounts are presented solely for the convenience of readers outside
Japan.

27th June, 2002

RYOBI LIMITED ANNUAL REPORT 2002

28

C O R P O R A T E

I N F O R M A T I O NBOARD OF DIRECTORSCORPORATE DIRECTORY

President
Hiroshi Urakami

Company Name (Country)

Senior Vice President
Tsuyoshi Mifune
Vice Presidents
Hiroyuki Harada
Susumu Yoshikawa
Takao Tanaka
Takashi Yokoyama
Mikio Kamura
Shiro Muroya
Standing Auditor
Shozo Kobayashi

Major Consolidated Subsidiaries
Ryobi Imagix Co. (Japan)
Ryobi Sales Co. (Japan)
Ryobi Mirasaka Co. (Japan)
Ryobi Mitsugi Co. (Japan)
Tokyo Light Alloy Co. Ltd. (Japan)
lkuno Co. (Japan)
Ryobi Power Tool Co. (Japan)
Ryobi Die Casting (USA), Inc. (U.S.A.)
Ryobi Aluminium Casting (UK), Limited (U.K.)
Ryobi Dalian Machinery Co., Ltd. (P.R.C.)
Ryobi Finance Corporation (U.S.A.)

Principal Business

Printing equipment and related product sales
Power tool and lawn and garden equipment sales
Die casting manufacturing
Die casting manufacturing
Cast aluminum and die casting manufacturing
and sales
Secondary aluminum alloy bullion manufacturing
and sales
Power tool and lawn and garden equipment
manufacturing
Die casting manufacturing and sales
Die casting manufacturing and sales
Power tool, lawn and garden equipment andbuilders’ hardware manufacturing
Financial operations

Corporate Auditors
Hiroshi Fukano
Takuomi Matsumoto
Hiroshi Toriyama

CORPORATE DATAHead Office762, Mesaki-cho, Fuchu,
Hiroshima 726-8628, Japan
Telephone: 81-847-41-1111
Tokyo Branch
5-2-8, Toshima, Kita-ku,
Tokyo 114-8518, Japan
Telephone: 81-3-3927-5541
Tokyo Branch
Toranomon Office
Toranomon Central Building 4th Floor
1-7-1 Nishi-shinbashi, Minato-ku,
Tokyo 105-0003, Japan
Telephone: 81-3-3501-0511

Established16th December 1943
Number of Shares Issued
171,230,715
Listings
Common Stock—Tokyo, Osaka
Continental Depositary Receipts—Frankfurt
Transfer Agent
The Mitsubishi Trust and Banking Corporation
11-1, Nagata-cho, 2-chome, Chiyoda-ku,
Tokyo 100-8212, Japan

RYOBI LIMITED ANNUAL REPORT 2002

29

762, Mesaki-cho, Fuchu,
Hiroshima 726-8628, Japan
Telephone: 81-847-41-1111
http://www.ryobi-group.co.jp/

RYOBI LIMITED ANNUAL REPORT 2002

PRINTED IN JAPAN©RYOBI LIMITED 2002