Ryobi Limited
Financial Results Presentation
for the Fiscal Year Ended December 31, 2021
February 15, 2022

Contents
１. Results for the Fiscal Year Ended
December 31, 2021

3

２. Forecasts for the Fiscal Year Ending
December 31, 2022

14

３. Future Initiatives

23（1） Basic Management Policies（2） Die Castings（3） Builders’ Hardware（4） Printing Equipment（5） Sustainability ESG/SDGs

４. Shareholder Returns

44
2/47

１. Results for the Fiscal Year
Ended December 31, 2021

Highlight of Financial Results

1. Results for the FY2021

 FY2021 consolidated results: Revenue increased and earnings decreased
compared to the previous year
Die Castings• Sales increased in Japan and overseas due to improving business confidence andthe resulting recovery in automobile sales as well as higher raw material (aluminumalloy) prices, despite global semiconductor shortages, stagnant automobile parts
supply influenced by resurgences of the COVID-19 pandemic, and other negative
factors impacting automobile production• Profitability did not recover as ongoing rises in raw material prices have yet to beoffset by the upward revision of sales prices• An impairment loss of approximately ¥4.0 billion was recorded at a U.K. subsidiary
Builders’ Hardware
Sales increased in Japan and overseas, while segment earnings declined due tohigher procurement costs caused by the appreciation of the Chinese yuan
Printing Equipment• Sales in Japan decreased, but overseas exports to China and South Korea werestrong, resulting in an overall increase in sales• The benefits of increasing sales and cost reductions have yet to yield profit
 FY2022 forecasts: Increases in revenues and earnings
Expect gradual economic recovery despite concerns about the impact of thepandemic’s resurgence, supply chain disruption and higher raw material prices
4/47

1. Results for the FY2021

Impact of Aluminum Market Prices on Profit and Loss
Trend in Aluminum Market Prices and Aluminum Sales Prices (10-year period from Jan. 2012 – Dec. 2021)
Aluminum Market Prices
Aluminum Sales Price(reflecting avarage market price for the previous 3 months)
200%

180%

Ongoing surges in aluminum market prices since Jun. 2020, which have yet to beoffset by the upward revision of sales prices, put pressure on profits

160%

140%

120%

100%

80%

60%
0% Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov.
2012

2013

2014

2015

2016

2017

2019

2018

2020

* Based on the market price of aluminum at 100 in Jan. 2012

2021

5/47

1. Results for the FY2021

Results Summary(Unit: Billions of Yen)FY2020

FY2021Results

Results

Change

171.0

198.1

Operating
loss

-1.8

-1.5

Ordinary
profit (loss)

-0.0

0.0

Loss
attributable toowners ofparent-0.7* -4.4

Net sales

27.1(15.9%)
0.3
(－)
0.0
(－)
-3.7
(－)

* An impairment loss of approximately ¥4.0 billion was recorded at a U.K. subsidiary

6/47

1. Results for the FY2021

Trends in Sales and Operating profit(Unit: Billions of Yen)

(Unit: Billions of Yen)

60
46.2

48.7

44.6

6

54.0
48.2

48.5

47.3

40

4

31.5

Sales

2
1.2

0

0.6

0.5

0.2

0.1

-1.0

-1.2

-20

-2

-3.8

-40
1Q

2Q

3Q

4Q

1Q

2Q

FY20200Operating profit

20

3Q

-4

4Q

FY2021

Sales(left axis)

Operating profit(right axis)

7/47

1. Results for the FY2021

Analysis of Changes in Operating profit(Unit: Billions of Yen)

Change ofvariable
cost ratio
Increase inproduction
etc.

-5.1

Labor
expenses
-1.0

+10.3

Depreciation

Other fixed
cost

-0.8

-3.1

-1.5

-1.8

-2
Exchange rates (average during the period)

Breakdown of major components ofother fixed cost
Utilities-1.0 billion yen
Office supplies
and expenses -0.7 billion yen

USD
GBP
CNY
THB

FY2020

FY2021¥106.80¥137.43¥15.40¥3.41¥109.46¥150.64¥16.96¥3.44
8/47

Results by Business Segment

1. Results for the FY2021(Unit: Billions of Yen)FY2020

FY2021Results

Results

ChangeNet sales

171.0

198.1

Die
Castings

145.9

169.9

Builders’
Hardware

9.4

9.6

Printing
Equipment

15.5

18.4

Operatingprofit (loss)

-1.8

-1.5

Die
Casting

-1.6

-1.4

Builders’
Hardware0.8

0.4

Printing
Equipment

-0.9

-0.4

27.1
(15.9%)
24.0(16.5%)
0.2(1.8%)
2.9(18.6%)
0.3
(－)
0.2
(－)
-0.4
(-54.7%)
0.5
(－)
9/47

1. Results for the FY2021

Trends in Sales and Operating Profit(Unit: Billions of Yen)
Die Castings(Unit: Billions of Yen)

6

60

40

39.2

39.0

42.2

42.0

46.3
41.4

40.2

4

2

20

Sales

0.8

0

1.1

0.9

0.2
-0.1
-1.2

-20

-1.0

-2

-3.7

-40
1Q

2Q

3Q
FY2020
Sales(left axis)

4Q

1Q

2Q

0

Operating profit

25.5

3Q

4Q

-4

FY2021
Operating profit(right axis)
10/47

1. Results for the FY2021

Trends in Sales and Operating Profit(Unit: Billions of Yen)
Printing Equipment(Unit: Billions of Yen)

0.6

6

4.8

4.5
3.8

4

4.0

3.9

3.3

5.0

4.6

0.4

Sales

0
-2

0.1

0.0

-0.1
-0.2

0

-0.1

-0.2

-0.2
-0.3

-4

Operating profit

0.2

2

-0.4

-0.4

-0.6

-6
1Q

2Q

3Q

4Q

1Q

2Q

FY2020

3Q

4Q

FY2021

Sales(left axis)

Operating profit(right axis)
11/47

1. Results for the FY2021

Consolidated Balance Sheet(Unit: Billions of yen)

Current assets

FY2020

FY2021

ChangeCurrency
Translation
Effect

112.2

129.6

17.4

5.0

Current liabilities

FY2020

FY2021

ChangeCurrency
Translation
Effect

83.9

110.8

26.9

3.8

29.1

41.6

12.5

0.8

Cash anddeposits

26.6

28.5

2.0

1.0

Notes andaccounts
payable—trade

Notes andaccounts
receivable—trade

40.2

44.3

4.2

1.7

Short-termborrowings

37.3

51.0

13.7

2.2

Securities

0.8

0.7

- 0.0

0.0

Other

17.5

18.2

0.7

0.7

Inventories

41.4

52.5

11.1

2.2

Non-current liabilities

48.8

36.9

- 11.9

0.7

35.2

22.8

- 12.4

0.5

13.7

14.2

0.5

0.2

3.3

3.5

0.1

0.2

Long-term
borrowings(including bonds)

Non-current assets

146.4

149.8

3.4

7.6

Other

Property, plantand equipment

119.0

117.2

- 1.8

6.6

Shareholders’ equity

116.3

111.6

- 4.7

- 0.0

0.9

11.3

10.5

8.1

Other

Intangible assets

3.5

3.2

- 0.3

0.2

Accumulated othercomprehensive
incomeInvestments andother assets

24.0

29.5

5.5

0.8

Non-controllinginterests

8.8

8.8

0.0

－

Deferred tax assets

0.0

0.0

- 0.0

－

Total net assets

125.9

131.7

5.8

8.1

258.7

279.4

20.8

12.6

Total liabilities andnet assets

258.7

279.4

20.8

12.6

Total assets

 Total assets increased by 20.8 billion yen (Currency translation effect is 12.6 billion yen) Interest-Bearing Debt (including Corporate bonds) decreased by 1.4 billion yen except for currency translation effect Total net assets increased by 5.8 billion yen (including currency translation effect by 8.1 billion yen)Exchange rates(as of fiscal-year end)

USD

GBP

CNY

THB

Dec. 31, 2020

¥103.50¥139.82¥15.88¥3.44

Dec. 31. 2021

¥115.02¥155.24¥18.06

¥3.43

12/47

1. Results for the FY2021

Changing in Cash Flows(Unit: Billions of Yen)

Free CF +2.7
Sales CF +14.9
Impairment loss

+4.1

Investment CF- 12.2Finance CF
- 1.9

Other

- 2.1
Profitbeforetax

25.4

Dividends Exchange
conversion
etc.

Other
Capitalinvestment- 4.3- 11.9Depreciation

- 0.3

- 0.5

+1.2

27.4

Borrowing
etc.

- 1.5

+17.2

FY2020
Balance

FY2021
Balance
13/47

2. Forecasts for the Fiscal YearEnding December 31, 2022

2. Forecasts for the FY2022

Forecasts(Unit: Billions of Yen)FY2021

FY2022

Results

Net sales

Operating profit

Forecasts

198.1

240.0

- 1.5

5.3

0.0

5.4

- 4.4

3.8

Ordinary profit

Profit attributable toowners of parent

Change41.9(21.2%)
6.8
(－)
5.4
(－)
8.2
(－)

* As year-on-year percentage changes of ordinary profit would be more than 1,000%, it is indicated as “-”.

15/47

2. Forecasts for the FY2022

Analysis of Changes in Operating
Profit Forecast(Unit: Billions of Yen)

Depreciation

- 0.8

Labor
expenses
Production
increase etc.

Other fixed
cost

- 2.1

- 3.0

+12.7
5.3

- 1.5

-2
 Earning will increase along withrevenue growth in Japan and overseas
 Labor expenses will increase at ouroverseas business bases in step withan increase in production volume
 Depreciation cost will increase due tocapital investment
 Utilities and repairs and other costs
will increase

Exchange rate

USD
GBP
CNY
THB

Average during
FY2021

Forecast for
FY2022¥109.46¥150.64
D¥16.96D¥3.44¥112.00¥150.00¥17.50¥3.40

Annual impact of yen
appreciation on operating
income (1% higher thanforecasts)
USD
GBP
CNY

- ¥40million- ¥10million+ ¥10million
16/47

2. Forecasts for the FY2022

Forecasts by Business Segment(Unit: Billions of Yen)FY2021

FY2022

Results

Forecasts

ChangeNet sales

198.1

240.0

Die Castings

169.9

208.1

Builders’
Hardware

9.6

9.4

Printing
Equipment

18.4

22.5

Operating profit

- 1.5

5.3

Die Castings

- 1.4

4.6

Builders’
Hardware0.4

0.3

Printing
Equipment

- 0.4

0.4

41.9
(21.2%)
38.2(22.5%)- 0.2(- 1.8%)4.1(22.3%)
6.8

(－)
6.0
(－)

- 0.1
(- 17.2%)
0.8
(－)
17/47

2. Forecasts for the FY2022

Trends in Sales and Operating Profit(Unit: Billions of Yen)
Die Castings
120(Unit: Billions of Yen)

100.0

95.3

90.7

80

12

87.8

82.1

81.2

108.1

8

64.7
4.4
3.3

3.0
1.9

4

1.6

0

0

Operating profit

Sales

40

-0.3
-1.1
-3.5

(40)
First
half

Secondhalf

FY2019

First
half

-4
Secondhalf

FY2020

Sales(left axis)

First
half

Secondhalf

FY2021First
half

Secondhalf

FY2022
Forecast

Operating profit(right axis)

18/47

2. Forecasts for the FY2022

Trends in Sales and Operating Profit(Unit: Billions of Yen)
Builders’ Hardware
9

0.9

0.6

5.6
5.1

Sales

0.5

5.1

4.7

4.7

4.5

0.4

4.9

4.5

0.4

3

0.3
0.2

0.2

0.2
0.1

Operating profit

6(Unit: Billions of Yen)

0.1

0

0
First
half

Second
half

First
half

FY2019Second
half

First
half

FY2020

Second
half

First
half

FY2021

Sales(left axis)

Secondhalf

FY2022
Forecast

Operating profit(right axis)

19/47

2. Forecasts for the FY2022

Trends in Sales and Operating Profit(Unit: Billions of Yen)
Printing Equipment
18
12(Unit: Billions of Yen)

1.8

12.2

12.0

11.7

8.8

8.3

10.3

9.6

1.2

7.2

Sales

0.3
0.1

0.1

0.0

0

-0.4

-6

-0.5

-0.5

Second
half

First
half

0.1

0

-0.6

-12
First
half

Secondhalf

FY2019First
half

FY2020

Sales(left axis)

Secondhalf

FY2021First
half

Secondhalf

Operating profit

0.6

6

-1.2

FY2022
Forecast

Operating profit(right axis)
20/47

2. Forecasts for the FY2022

Trend in Capital Expenditureand Depreciation(Unit: Billions of Yen)

30

24.8

25

23.0

20

18.8

17.4

16.0

15.4

14.6

15

18.0

24.1

17.8
13.5

17.0

13.0

22.1

10

17.2

16.4

16.5 15.4

14.5

13.7

16.4

15.1

12.5

5

16.8

0

FY Mar.2018

FY2018FY2019(Adjusted)
Die Castings
Builders' Hardware

FY2020FY2012Printing Equipment

FY2022
Forecast
Other* In Apr. 2018, the depreciation method for property, plant and equipment in Japan was changed from the declining balance method to the straight-line method.

21/47

2. Forecasts for the FY2022

Trend in Interest-Bearing Debt
and D/E Ratio(Unit: Billions of Yen)

(Unit: Times)

100

1.0
81.9

80

74.2

0.85

70.3
61.9

0.69

60

72.5

73.8

0.62

0.60

73.0

0.8

61.9

0.61
0.53

0.6
0.58

0.51

40

0.4

20

0.2

0

0.0
FY Mar.
2016

FY Mar.
2017

FY Mar.
2018

FY2018FY2019Interest-Bearing Debt(left axis)

Borrowing dependence(interest-bearing
debt/total assets)

FY2020

FY2021

FY2022
Forecast

D/E Ratio(right axis)

FY Mar.
2016

FY Mar.
2017

FY Mar.
2018

FY2018FY2019FY2020

FY2021

FY2022
Forecast

30.9%

28.2%

25.8%

23.0%

23.5%

28.0%

26.4%

26.2%
22/47

3. Future Initiatives

3. Future initiatives – (1) Basic Management policies

Basic Management Policies＜Basic Management policies＞• Strengthen trusting relationships with stakeholders• Improve the profit structure while enhancing costmanagement• Secure stable cash flows in addition to improving asset
efficiency• Deliver new value via the use of technologies• Promote the accumulation and standardization of
insights backed by employee experience and wisdom,
and utilize such insights in human resource development

24/47

3. Future initiatives – (2) Die Castings

Die Castings
The Business Environment

Outlook on Net Sales

 Although HEVs will remain the mainstream invehicle electrification for the time being, a trend
toward the mainstreaming of BEVs will
accelerate(Unit: Billions of Yen)

250

208.1

 Raw material prices, which have been surging,
now entered an adjustment phase200 After partial recovery in the 4Q of FY2021 fromthe impact of semiconductor shortages andlockdowns in Southeast Asia, global supply
chains were again disrupted; automobile
production volume is not expected to recover tothe FY2019 level until the second half of FY2022

186.0
169.9
145.9

150

Main Initiatives

100 Work to strengthen the development of strategic
products (electrification, body/chassis parts),
secure related orders, and reduce associated
costs

50

 Expand sales by improving our capabilities for
product proposal and developmental support forcustomers0 Shorten time lag between raw material priceincreases and sales price revisions, etc.

FY2019FY2020

FY2021

FY2022 FY2023 FY2024
Forecast Forecast Forecast Transition to automated and labor-saving
production facilities

25/47

3. Future initiatives – (2) Die Castings

Die Castings

Net Sales by Region
Japan

China

Ryobi Limited(Unit: Billions of Yen)

Ryobi Mirasaka Co.

RYOBI DIE CASTING DALIAN CO., LTD.
RYOBI DIE CASTING CHANGZHOU CO., LTD.

Ryobi Mitsugi Co.
Tokyo Light Alloy Co., Ltd. etc

31.9 33.0 34.6
FY2019FY2020

FY202145.3
FY2022 FY2023 FY2024
Forecast Forecast Forecast

93.0
71.7 86.4

FY2019FY2020

FY2021

100.3

RYOBI DIECASTING（USA）, Inc.

FY2022 FY2023 FY2024
Forecast Forecast Forecast

RDCM, S. DE
R.L.DE C.V.
（Mexico）

Americas

U.K.
RYOBI ALUMINIUM CASTING（UK）, Limited

ThailandRYOBI DIE CASTING（THAILAND）Co., Ltd.

11.4
FY20199.5
FY202043.9

10.6 11.2
FY2021

FY2022 FY2023 FY2024
Forecast Forecast Forecast

5.7

4.3

6.8

FY2019FY2020

FY202127.5 31.4

8.8

42.5

FY2022 FY2023 FY2024
Forecast Forecast Forecast
FY2019FY2020

FY2021

FY2022 FY2023 FY2024
Forecast Forecast Forecast

26/47

3. Future initiatives – (2) Die Castings

Die Castings

Outlook on Changes in the Value of Die Castings Produced by Region
Due to the recurrence of global supply chain disruption, automobile production volume is not likely torecover to the FY2019 level until the second half of FY2022. In the Americas, China and Thailand,
however, die casting production volume is expected to increase from FY2022 onward, reflecting
demand associated with electrification and body/chassis parts production
140%
Japan
EuropeThailandAmericas
China
Consolidated

120%

100%

80%

60%

FY2019FY2020

FY2021

FY2022
Forecast

FY2023
Forecast

FY2024
Forecast

Notes: With the FY2019 production value as 100, the percentage figures presented above are calculated based on exchange
rates and aluminum prices as of FY2019. Excludes sales of die castings molds.

27/47

3. Future initiatives – (2) Die Castings

Die Castings

Capital Expenditure by Region
Japan

China

Ryobi Limited

RYOBI DIE CASTING DALIAN CO., LTD.
RYOBI DIE CASTING CHANGZHOU CO., LTD.

(Unit: Billions of Yen)

Ryobi Mirasaka Co.
Ryobi Mitsugi Co.
Tokyo Light Alloy Co., Ltd. etc

6.0
FY20193.9

4.0

FY2020

FY2021

2.0
FY2022
FY2023
FY2024
Forecast Forecast Forecast

13.0
6.3
FY2019FY20204.3
FY2021

7.1
FY2022
FY2023
FY2024
Forecast Forecast Forecast

RYOBI DIECASTING（USA）, Inc.

RDCM, S. DE
R.L.DE C.V.
（Mexico）

U.K.

Americas

RYOBI ALUMINIUM CASTING（UK）, LIMITED

0.3 0.3 1.0 1.0
FY2019FY2020

FY2021

FY2022 FY2023 FY2024
Forecast Forecast Forecast

ThailandRYOBI DIE CASTING（THAILAND）CO., LTD.

1.2 2.3 1.1 1.1
FY2019FY2020

FY2021

3.6

3.7

FY2019FY20202.1
FY2021

3.9
FY2022
FY2023
FY2024
Forecast Forecast Forecast

FY2022 FY2023 FY2024
Forecast Forecast Forecast

28/47

3. Future initiatives – (2) Die Castings

Die Castings

Summary of Future Outlook on Demand

1. Number of automobiles sold
• The number will peak around 2040 and then start to decline.
2. Powertrain mix• Although HEVs will remain the mainstream in vehicle electrification for
the time being, a trend toward the mainstreaming of BEVs will
accelerate.
• Our future outlook may be revised in light of changes in environmental
regulations and battery trends (performance, price).
3. Die casting demand (demand in locations of consumption)• The manufacturing volume of die castings is expected to peak during
the 2035 to 2040 period.
• Although there will be changes in vehicle power sources, demand forlarge die casting products (items massing around 10 kilograms) is
likely to grow continuously.
29/47

3. Future initiatives – (2) Die Castings

Die Castings

Long-Term Changes in Automobile Sales Volume and Power Train Mix

当社予測
Compiled by Ryobi
as of Nov. ’21/11
1, 2021

A long-term trend toward the mainstreaming of BEVs rapidly advanced in
the past year
Outlook on the number of automobiles sold (by drive system)
As of Nov. 2020

FCEV: Fuel cell electric vehicles
PHEV: Plug-in hybrid electric vehicles
FHEV: Full hybrid electric vehicles

As of Nov. 2021

BEV: Battery electric vehicles
MHEV: Mild hybrid electric vehicles* Key countries: Japan, U.S.A, Europe, China, India

30/47

3. Future initiatives – (2) Die Castings

Die Castings

Outlook on Die Casting Demand—Growth Arising from the Use of Alternative
当社予測 ’21/11
Materials Employing Parts Unification Compiled by Ryobi as of Nov. 1, 2021

Progress in a long-term demand shift toward products related toelectrification and weight savings yielded growing needs for body/chassis
parts, battery cases, eAxle and other components
Total of key countries *Growth fields* Key countries: Japan, U.S.A, Europe, China, India
31/47

3. Future initiatives – (2) Die Castings

Die Castings

Initiatives to Meet Demand for Electrification and Weight Savings—Sales
Mix of Electrification and Body-Chassis Parts
Ryobi promotes strategies to secure new orders for die castings in response to ademand shift toward electrification and weight savings
Body, chassis parts

Electrification

Transmission parts

Engine parts

Othres■4.3%■2.9%■■Total■■Total

5.3%

7.2%

■■Total14%

FY2020

FY2021■■Total

7.0%
7.0%■■TotalFY2022
Forecast

22%

12%

24%

35%

10%

11%

FY2024
Forecast

FY2026
Forecast
32/47

Die Castings

3. Future initiatives – (2) Die Castings

Electrification and Body/Chassis Parts Brought to Mass-Production Lines in 2021
Current mass-production initiatives: Introduction of electrification parts, body/chassis parts,and vehicle model application
Production
Body, chassis parts
Japan

Battery parts

Scheduledstarted ofproduction

Product description

Customer

Front door frame

TOYOTA

Land Cruiser 300

HEV battery case

TOYOTA

Noah, Voxy, CH-R, Prius, CorollaJan. 2022

Aqua, Lexus RX, Crown

Aug. 2021
Aug. 2021

Vehicle type

Toyota Industries

Binding plateAug. 2021

HEV drive parts

Differential retainer

TOYOTA

TundraU.S.A.

Body/chassis

Subframe

HONDA

Civic

Jan. 2021

China

Body/chassis

Subframe

HONDA

Civic

Jun. 2021

ThailandBody/chassis

Subframe

HONDA

Civic

Jul. 2021

Planned future mass production initiatives

Japan

Body, chassis parts

U.K.

China

Cowl top panel

2021

Shock tower

2022

Steering parts

2022

PHEV Battery case2022

Body, chassis parts

Steering parts

2022

BEV drive parts

Motor housing

2023

PHEV drive parts

PHEV DCT transmission case2022

Body, chassis parts

Cowl top panel

2022

HEV drive parts

HEV transmission

2022

BEV drive parts

Case, Housing

2022

Battery parts

FHEV Battery case

2023

Battery parts
U.S.A.

Scheduledstart ofproduction

Product description

Production

The new Toyota Voxy equippedwith a Ryobi battery case
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Builders’ Hardware

3. Future initiatives – (3) Builders’ Hardware

Outlook on Net Sales

The Business Environment
 In Japan, floor space for newly
constructed buildings (non-residential
purpose) and the number of newresidential housing starts both remain flat Surges in raw material prices
 Growing demand for non-contact devices
in the living environment field Over the long term, gradual shrinkage
anticipated for domestic door closer andsliding door closer markets(Unit: Billions of Yen)

12

10.7
10

9.4

9.6

9.4

8
6

Main Initiatives
4
 Improve profitability in the domestic
market Further improve productivity of existing
automated facilities
 Expand sales of high-value-added
products (automated door controller, etc.)
 Pursue sales growth in markets overseas

20

FY2019 FY2020 FY2021 FY2022 FY2023 FY2024
Forecast Forecast Forecast

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Builders’ Hardware

3. Future initiatives – (3) Builders’ Hardware

Outlook on the Domestic Builders’ Hardware Market(Unit: Thousands)(Unit: Million of m2)

1,200

60
53
51

52
49

1,000
974

946

46

46

46

850

850

850

850

884
812

New residential housing starts (left axis)

600

50

44

953

800

46

40

30

Floor space of newly constructed buildings(non-residential purpose)(right axis)
400

FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY202420

Source: Ministry of Land, Infrastructure, Transport and Tourism (figures for 2021 and later are Ryobi’s forecasts)
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Printing Equipment

3. Future initiatives – (4) Printing Equipment

Outlook on Net Sales

The business Environment
 The offset printing press market isrecovering, albeit in varying degrees byregion Sales of presses for packaging printing aresteady The number of large printing presses inoperation declined in Japan Needs for automated and labor-saving
products are strong due to labor shortagein Japan and surging personnel expenses
in emerging countries(Unit: Billions of Yen)

30

25

23.7

22.5

20

18.4
15.5

15

Main Initiatives
 Improve price competitiveness via cost
reductions for flagship models
 Enhance the marketing of models for
packaging sector
 Expand the scope of services to customers
in Japan (upgrading, maintenance, etc.)
 Expand the breadth of the peripheral
equipment business Enhance product capabilities via thedevelopment of automation, labor-saving
and assistance functions

10

5

0

FY2019FY2020

FY2021

FY2022 FY2023 FY2024
Forecast Forecast Forecast

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3. Future initiatives – (4) Printing Equipment

Printing Equipment

Forecasts of the global sheet-fed printing press market (all sizes)(Unit: Billions of Yen)

600
500
400

504

492

501

517

492
413

202

212

229

222

230

434

377
204

194

300

184

200
302

100

280

288

279

262
193

Digital Press

219

230

2021

2022

Sheet-fed offset press

0
2015

2016

2017

2018

2019

2020

Source: Estimated by Ryobi MHI Graphic Technology Ltd. based on
financial results materials disclosed by manufactures (as of Nov. 2021)

Printing Equipment

2023
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3. Future initiatives – (4) Printing Equipment

Initiatives to Expand the Peripheral Equipment BusinessTranscending the scope of printing equipment manufacturing, we offer proposals for the overall
optimization of printing factories.
We help create “smart factory” via collaboration with peripheral equipment manufacturers.

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3. Future initiatives – (5) Sustainability ESG/SDGs

Sustainability ESG/SDGs

ESGの取り組み

Initiatives of ESG

Having positioned addressing environmental, social and governance (ESG) issues as acentral part of its management strategies, the Ryobi Group is striving for thesustainable improvement of its corporate value through the minimization of businessrisks and the expansion of business opportunities. Furthermore, we contribute to asustainable society by helping resolve social issues through business activities.

E（Environmental）
Reduce environmental burden andcontribute to a recycling-oriented society
through business activities• In line with the Ryobi Group Environmental Policy, we strive toachieve our environmental targets through, for example, theconservation of energy and resources along with the reductionof waste and greenhouse gas emissions.

S（Social）

G（Governance）

Build a safe and sound workspace, andaddressing requests from society

Strengthen Governance, Compliance andrisk management• Build a safe and sound workspace via thepromotion of a culture in which safety takes theutmost priority, in addition to properly managing
mental and physical health for employees• Proactively engage in social contribution activities
that take a community-rooted approach to help
create a genuinely prosperous society• Strengthen corporate governance to enhance
management transparency and develop evenmore robust supervisory functions• Institute a Compliance Committee while
facilitating the use of a whistleblowing system• Enhance risk management by, for example,
establishing a Risk Management Committee
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3. Future initiatives – (5) Sustainability ESG/SDGs

Sustainability ESG/SDGs
Initiative to Environment
FY2022 Environmental Targets
・Achieve carbon neutrality by 2050
・Curb CO2 emissions from domestic bases by 46%
from the FY2013 level by 2030
Changes in emission
volume without
reduction efforts

46%

Using renewable energy(a production base in Thailand)

reduction(Japan)* Scope1+Scope2

2013

2030

2050

Initiatives to curb the volume of CO2 emissions
・Facilitate the introduction of energy-saving facilities
・Utilize renewable energy (solar panels, hydroelectric
power generation, etc.)
・Shift to low-carbon fuel (from heavy oil to LNG, etc.)
・Shift to non-fossil energy (electric, hydrogen andammonia)

Introducing energy-saving facilities(heat-treating furnaces)

Transitioning to low-carbon fuel(from heavy oil to LNG)

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3. Future initiatives – (5) Sustainability ESG/SDGs

Sustainability ESG/SDGs
Contribution to Recycling-Oriented society

Superior Environmental Performance of Aluminum Die Castings
Aluminum Die Casting Technology
Is Friendly to the Earth’s Environment-- For Sustainable Mobility --The volume of CO2 emission
from secondary aluminumalloy production amounts toonly 3% to 5% of the volumeof CO2 emission fromaluminum ingot production.

Waste aluminumsash
Scrapped engine
components

Die Castingproducts

Secondary aluminum alloy(ADC12) is a recyclingoriented material that is mademostly 100% of recycled
aluminum.

Wheel

Aluminum scrap
アルミ二次合金
インゴット

Melting andcomposition adjusting

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3. Future initiatives – (5) Sustainability ESG/SDGs

Sustainability ESG/SDGs
Developing Inclusive Workspaces while Promoting Sound Corporate Activities

Enhancing employee engagement
・Offering a diverse range of workstyle options (teleworking, shortened working
hours and flextime)・Promoting the empowerment of women (the ratio of female managers: 13% in
2021)
・Having acquired and maintaining a certification under the Health &Productivity Management Organization Recognition Program・Being certified to display a kurumin mark as a childcare support company
・Enhancing the content of employee education

Promoting engagement with regional
communities
・Hosting field trip programs, such as plant tours (accepting students on school
excursion)・Engaging in cleanup activities covering areas around our bases (roads and parks)
・Operating nursery facilities
・Supporting activities of the Ryobi Social Contribution Foundation, an NPO

Strengthening governance・Instituted a Nomination and Compensation Advisory Committee
・Annually evaluating the Board of Directors’ effectiveness・Ensuring the appropriate operation of internal control systems
・The Compliance Committee spearheads compliance promotion activities
・The Risk Management Committee conducts risk assessments

A plant tour as partof a field trip

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3. Future initiatives – (5) Sustainability ESG/SDGs

Sustainability ESG/SDGs
Initiatives to SDGs
Priority themes

Concerns for the
globalenvironment

Technologicalinnovation

Work stylereforms

Addressing
other requests
from society

Relevant SDGs

Ryobi’s initiatives
Expand sales of aluminum die casting products
Reduce CO2 emissions
Ensure the efficient use of water resources
Pursue waste reduction
Reduce hazardous substances
Accommodate needs for energy-saving and weight-saving products
 Promote recycling
 Develop new products employing novel
technologies and materials
 Create new products and services toaccommodate needs for automationand labor-saving solutions








 Promote diversity
 Help employees embrace
diverse work styles
 Practice health-oriented management
 Create employment
 Pass down our technologicallegacy to future generations
 Maintain strict legal compliance Thoroughly put our corporate
philosophy into practice

4. Shareholder Returns

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4. Shareholder Returns

Shareholder Returns
Trends in Dividends per Share and the Dividend Payout Ratio(Unit: %)(Unit: Yen)

100

60
46.1
26.4
24.8

34.1

50

30
60

70

 Along with giving due consideration to maintaining astable stream of dividends, the amount ofshareholder returns is determined in light ofprevailing conditions, with an eye to achieving adividend payout ratio of around 30%.

Status of Dividends
2000

FY Mar. FY2018 FY2019 FY2020 FY2021 FY2022
2018
Forecast
Dividends per share(left axis)

Dividends
per share
Dividend
payout ratio Ryobi’s basic policy for profit distribution is tomaintain a stable return of profits to shareholders
while securing funds for growth investment along witha medium- to long-term improvement in consolidated
operating performance.

70
40

0

Dividend Policy Due to significant deterioration in FY2020 operating
results, Ryobi refrained from paying dividends for thatyear in order to focus on securing funds for capital
expenditure and working capital for business.
 For FY2021, we decided to resume dividend payouts(annual dividends of ¥20 per share) after taking into
account the improvement in ordinary income and thereturn to positive free cash flow, along with ourintention to deliver a stable and ongoing stream ofdividends.

Dividend payout ratio(right axis)

FY
Mar.2018

FY2018FY2019FY2020

FY2021

FY2022
Forecast

FY2023
Forecast

¥60

¥70

¥70

¥0

¥20

¥40

24.8%

26.4%

46.1%

－

－

34.1%

Dividend
payoutratio ofaround 30%
45/47Disclaimer
This material contains future projections regarding such factors as Ryobi’s business plans,
strategies, and operating results.
Said projections reflect Ryobi’s judgements based on information available at the timeof preparation, and therefore, involve inherent risks and uncertainties.
Ryobi’s actual endeavors and operating results may differ from these projections due
to economic conditions, the business environment, trends in market demand, changes inexchange rates, and other factors.

The unauthorized copying or replication of the content, text, or images presented in this pamphlet is strictly prohibited.
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