Ryobi Limited

Financial Results Presentation for
the Fiscal Year Ended December 31, 2023

February 14, 2024

Contents
1. Results for the Fiscal Year Ended
December 31, 2023

3

2. Forecasts for the Fiscal Year Ending
December 31, 2024

12

3. Status by Business Segment & Topics

19(1) Die Castings(2) Builders’ Hardware(3) Printing Equipment

4. Sustainability / ESG

32

5. Financial Strategy

35
2/46

1. Results for the Fiscal Year
Ended December 31, 2023

1. Results for the Fiscal Year Ended December 31, 2023

Highlights of Financial Results➢ Consolidated results:
Sales and profits increased compared to the previous fiscal year (Record high sales)
Die Castings• Sales increased both in Japan and overseas. Sales increased due to the recovery in automotive
production alongside improvements in semiconductor supply system. Additionally, sales increased
because the weakening yen boosted translated sales figures at overseas subsidiaries.
• Growth in sales boosted profits, despite rising energy costs, increasing labor costs and other factors.

Builders’ Hardware• Sales increased both in Japan and overseas.
• Profits fell due to rising procurement costs of overseas production and increasing labor costs.

Printing Equipment• Sales increased both in Japan and overseas. Increased capital investment by government subsidies inJapan and strong business overseas boosted sales.
• Profits fell due to soaring raw material prices and increasing labor costs, despite efforts to improve
productivity.

➢ FY2024 Forecasts• Sales are expected to increase due mainly to the recovery in automotive production.
Sales to set another record high, exceeding 300 billion yen for the first time.
• Despite the impact of increased labor expenses and soaring energy and raw material prices, higher sales
will bring growth in operating income. Ordinary income and net income figures to decline due to not
expecting foreign exchange gains and others.

➢ Shareholder Returns• For FY2023, the interim dividend was 35 yen per share and the year-end dividend is to be 45 yen per
share for an annual dividend of 80 yen per share (35 yen higher than in the previous year, 30 yen higher
than in the initial forecast).
• The annual dividend for FY2024 is expected to be 80 yen per share.
4/46

1. Results for the Fiscal Year Ended December 31, 2023

Results Summary• Sales increased due to the gradual recovery in automotive production in Japan andoverseas combined with the weak yen. Sales reached the highest record.
• Growth in sales boosted profits, despite rising energy costs, increasing labor costs
and other factors.
• We recorded an extraordinary loss of 500 million yen for impairment of a domestic
sales office.
(Unit: Billions of Yen)FY2022

FY2023
Change(vs. forecasts)

Results

249.5

282.7

Operatingincome

7.0

12.2

5.2
(75.3%)

10.5

1.7(16.2%)

Ordinary
income

7.8

13.9

6.1
(77.9%)

12.0

1.9(15.8%)Net income
attributable toowners ofparent

4.8

10.1

5.3
(111.4%)8.4

1.7(20.2%)Net sales

ChangeForecasts

Results

33.2(13.3%)(Announced on Jul. 20)

270.0

12.7
(4.7%)

5/46

1. Results for the Fiscal Year Ended December 31, 2023

Analysis of Changes in Net Sales••

Die casting production volume grew for three consecutive fiscal years due to therecovery in domestic and overseas automotive production.
The weakening yen boosted translated sales figures at overseas subsidiaries.
(Unit: Billions of Yen)

Increase/decrease inproduction,
etc.
+28.4

Currency
effects+8.7
Raw material(aluminum) price
−3.9
282.7

249.5

0

FY2022

FY2023

Exchange rates (average for the period)

USD

GBP

CNY

THB

FY2022¥130.52¥161.52¥19.40¥3.72

FY2023¥140.69¥174.49¥19.83¥4.03
6/46

1. Results for the Fiscal Year Ended December 31, 2023

Analysis of Changes in Operating Income• Production volume increased due to the recovery in domestic and overseas automotive
production, and profits increased due to higher sales.
• Labor costs grew for reasons including wage hikes in Japan and overseas, and an increased
overseas employees.
• Other fixed costs such as repairs and maintenance costs rose with the increase in production
volume.
(Unit: Billions of Yen)

Labor
expenses

Depreciation

−6.2

+0.4

Sales
increase, etc.

(Breakdown of currency effects)• Translation from overseas subsidiaries +0.3
• Export/import effects−0.2

Other fixed
costs

+15.1

Currency
effects+0.1−4.2(Main breakdown of other fixed costs)• Repairs and maintenance −1.0
• Supplies expenses−0.6• Utilities
−0.3

7.0

12.2

FY2023

FY2022
Exchange rates (average for the period)

USD

GBP

CNY

THB

FY2022¥130.52¥161.52¥19.40¥3.72

FY2023¥140.69¥174.49¥19.83¥4.03
7/46

1. Results for the Fiscal Year Ended December 31, 2023

Trends in Sales and Operating Income (Consolidated)•

Automotive production recovered from the effects of COVID-19 and restrictions on
semiconductor supply.
Backed by higher sales, quarterly profits have been positive since the third quarterof FY2022.

(Unit: Billions of Yen)

(Unit: Billions of Yen)

10

100
79.5

80

Sales

65.7

60

54.0
48.2

47.3

57.4

70.2

68.2

73.4

8

61.6

56.2

6

48.5
4.1

40

3.6

3.7

2.9

2.7
1.9

20

2

0.9

0.6
0.1

0
-1.2

(20)
1Q

4

Operating income

•

2Q

0
-0.7

-1.0

3Q

-2
4Q

1Q

FY2021
Sales (left axis)

2Q

3Q

FY2022

4Q

1Q

2Q

3Q

4Q

FY2023Operating income (right axis)

8/46

1. Results for the Fiscal Year Ended December 31, 2023

Results by Business Segment
Die Castings:

Higher sales and higher profits due to the recovery in automotive production.
A record high sales figure.
Builders’ Hardware: Domestic and overseas sales increased, but profits declined due to higher
procurement costs for overseas production and other factors.
Printing Equipment: Domestic and overseas sales increased, but profits declined due to rising raw
material prices.
(Unit: Billions of Yen)FY2022
Results

Results

Net sales

249.5

282.7

Die castings

215.7

247.6

Builders’
hardware

10.1

10.8

Printing
equipment

23.4

24.1

Operatingincome7.0

12.2

Die castings

5.2

10.9

Builders’
hardware0.2

0.2

Printing
equipment

1.5

1.1

FY2023
Forecasts
Change(Announced on Jul. 20)

33.2(13.3%)
31.8(14.8%)
0.7(6.7%)
0.7(2.9%)
5.2(75.3%)
5.7(108.6%)−0.1(−24.1%)−0.4(−24.6%)

270.0
235.7
11.0
23.3
10.5
9.5
0.3
0.7

Change(vs. forecasts)

12.7(4.7%)
11.9(5.0%)−0.2(−1.8%)
0.8(3.4%)
1.7(16.2%)
1.4(14.7%)−0.1(−42.7%)0.4(62.3%)
9/46

1. Results for the Fiscal Year Ended December 31, 2023

Consolidated Balance Sheet
Total assets increased by 18.6 billion yen from the end of the previous fiscal year due to increased
notes and accounts receivable-trade and inventories resulting from higher sales and a higher
valuation of investment securities (including an 8.6 billion yen increase attributable to the effects offoreign exchange fluctuations).

(Unit: Billions of Yen)

Currency
Translation
EffectFY2022

FY2023

Change

145.3

156.6

11.3

4.1

27.3

27.6

0.3

0.5

58.3

64.3

6.0

1.7

0.7

0.7

0.0

0.0

Inventories

55.5

59.9

4.5

1.8

Other

3.6

4.1

0.6

0.1

Non-current assets
Property, plant andequipment

154.9

162.2

7.3

124.0

123.4

Intangible assets

2.8

Current assets
Cash and deposits
Notes andaccounts
receivable – trade
Securities

Investments andother assets
Deferred assets
Total assets

Currency
Translation
EffectFY2022

FY2023

Change

114.7

117.9

3.2

2.9

46.5

50.9

4.4

0.8

46.5

46.2

−0.3

1.6

21.7

20.8

−0.8

0.5

41.9

40.2

−1.7

0.5

27.9

24.0

−3.9

0.4

4.5

Other
Non-current
liabilities
Long-term
borrowings
Other

14.0

16.2

2.2

0.1

−0.5

4.4

Shareholders’ equity

116.1

124.7

8.6

0.5

2.6

−0.2

0.1

18.3

26.6

8.3

4.6

28.2

36.1

7.9

0.0

9.3

9.4

0.2

0.0

−

−

−

−

143.7

160.7

17.0

5.1

300.3

318.8

18.6

8.6

300.3

318.8

18.6

8.6

Current liabilities
Notes andaccounts payable –trade
Short-termborrowings

Accumulated othercomprehensive
incomeNon-controllinginterests
Total net assets
Total liabilities andnet assets

USD

GBP

CNY

THB

FY2022¥132.70¥160.00¥19.01¥3.80

FY2023¥141.83¥180.68¥19.93¥4.13

Exchange rates (as of end of period)

10/46

1. Results for the Fiscal Year Ended December 31, 2023

Change in Cash Flows••

Of the -5.7 billion yen in other operating CF, an increase in working capital due toan increase in sales accounted for -3.5 billion yen.
Investing cash flow contained to less than operating cash flow. Repaid borrowings
with funds generated by improving fund efficiency.
(Unit: Billions of Yen)

Free CF +8.6
Operating CF +26.0

Investing CF−17.4

Financing CF
−8.6

Other

−5.7
Dividends,
etc.

Depreciation

+18.5

26.1

Net
incomebeforeincometax

Capitalinvestment

−16.3

Other

−1.1

−2.3
Borrowing,
etc.

−6.3

Exchange
conversion

+0.3

26.4

+13.2
FY2022
Balance

FY2023
Balance11/46

2. Forecasts for the Fiscal YearEnding December 31, 2024

2. Forecasts for the Fiscal Year Ending December 31, 2024

Forecasts••

Sales are expected to increase due mainly to the recovery in automotive production.
Sales to set the highest record.
Operating income is expected to increase due to higher sales. Ordinary income andnet income figures are expected to decrease due to lower foreign exchange gains
and other factors.
(Unit: Billions of Yen)FY2023

FY2024

Results

Forecasts

ChangeNet sales

282.7

305.0

22.3
(7.9%)

Operatingincome

12.2

13.0

0.8
(6.4%)

Ordinary
income

13.9

12.8

−1.1
(−7.7%)Net income
attributable toowners ofparent

10.1

9.0

−1.1
(−11.0%)13/46

2. Forecasts for the Fiscal Year Ending December 31, 2024

Forecasts by Business Segment
Die Castings:

Higher sales and profits are expected thanks to a record high production
volume from the recovery in automotive production.
Builders’ Hardware: Higher sales both in Japan and overseas. Profits are expected to increase dueto the higher sales.
Printing Equipment: Higher sales both in Japan and overseas. Profits are expected to decrease
due to the effects of soaring raw material prices and exhibition expenses.
(Unit: Billions of Yen)FY2023Results

FY2024
Forecasts

Net sales

282.7

305.0

Die castings

247.6

267.7

10.8

11.0

24.1

26.3

Operating income

12.2

13.0

Die castings

10.9

12.2

0.2

0.3

1.1

0.5

Builders’
hardwarePrinting
equipment

Builders’
hardwarePrinting
equipment

Change22.3(7.9%)
20.1(8.1%)
0.2(1.6%)
2.2(9.2%)
0.8(6.4%)
1.3(11.8%)
0.1(74.3%)−0.6(−56.0%)14/46

2. Forecasts for the Fiscal Year Ending December 31, 2024

Trends in Sales and Operating Income (Die Castings)••

Full-year sales are expected to increase both in Japan and overseas due to the continued recovery
in automotive production.
Full-year production volume and sales are expected to reach record highs due in part to new
product launches and other factors.

(Unit: Billions of Yen)

(Unit: Billions of Yen)

150

134.0
117.6

135.5

82.1

10

87.8
6.7

6.5

64.6

5.5

50

4.1
1.9

4.4

5

1.2

0

0
−0.4

-50

−1.1

−3.5
1H

Operating income

81.2

15

113.6

98.2

100

Sales

132.2

-5
2H

1H

2H

1H

2H

1H

2H

1H

2H

(Forecast) (Forecast)

FY2020

FY2021

Sales (left axis)

FY2022

FY2023Operating income (right axis)

FY202415/46

2. Forecasts for the Fiscal Year Ending December 31, 2024

Analysis of Changes in Operating Income Forecast•••

Labor expenses will increase due to wage hikes in Japan and overseas, and an increase in thenumber of overseas employees.
Other fixed costs also will increase due to increased semi-variable costs resulting from increased
production volume.
Operating income is expected to increase due to continued efforts for cost reduction andproductivity improvement, despite increased expenses.
(Unit: Billions of Yen)

Sales
increase,
etc.

Labor
expenses−3.5

Depreciation

+9.0

−0.5

Other fixed
costs

−4.2

(Main breakdown of other fixed costs)• Utilities−1.0• Supplies expenses−0.6• Repairs and maintenance −0.5

12.2

13.0

FY2024
Forecast

FY2023ResultExchange rates(average for the period)
FY2023 Result

USD

GBP

CNY

THB

¥140.69¥174.49¥19.83¥4.03

FY2024 Forecast

¥140

¥180

¥19.5

¥4.0

Annual impact of yen appreciation on
operating income (1% higher than forecasts)
USD− ¥50 million
GBP− ¥10 million
CNY+ ¥20 million
THB− ¥10 million
16/46

2. Forecasts for the Fiscal Year Ending December 31, 2024

Trends in Capital Expenditures and Depreciation••

For FY2024, investment is expected to be 27.0 billion yen; depreciation is expected to be 19.0
billion yen.
Increased both in Japan (various equipment relating to giant casting machine, and new headquarter building, etc.) and overseas due to investments to expand production capacity andintroduce new technologies.
(Unit: Billions of Yen)

30

30

27.0
25

25
20

17.4

17.2

16.4

15

19.0

18.5

22.2
16.5 15.4

16.4
12.5

5

18.0

17.6

17.5 17.5
11.9

Capital Depreciation
Expenditures

Capital Depreciation
Expenditures

Capital Depreciation
Expenditures

Capital Depreciation
Expenditures

FY2020

FY2021

FY2022

FY2023

FY2024

Builders’ Hardware

Printing Equipment

10
5

Capital Depreciation
Expenditures

Die Castings

20
15

13.9

13.0

10

0

18.6 18.3

Other

0

Forecast
17/46

2. Forecasts for the Fiscal Year Ending December 31, 2024

Trends in Interest-Bearing Debt and D/E Ratio••

Interest-bearing debt at the end of FY2024 is expected to be 70.0 billion yen.
Controlled increase in interest-bearing debt by meeting investment expenditures with improved
fund efficiency and other efforts.

(Unit: Billions of Yen)

(Unit: Times)

80

0.8
72.5

73.8

74.4

70.3

70.2

61.9

60

70.0

61.9

0.6

0.62

0.61

0.60
0.55
0.53
0.51

0.46

400

0.44
FY 3/2018

FY2018FY2019FY2020

FY2021

Interest-Bearing Debt (left axis)

Borrowing dependence(Interest-bearing
debt/total assets)

FY2022

FY20230.4
0FY2024(Forecast)

D/E Ratio (right axis)

FY 3/2018

FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024(Forecast)

25.8%

23.0%

23.5%

28.0%

26.4%

24.8%

22.0%

21.4%
18/46

3. Status by Business Segment & Topics

3. Status by Business Segment & Topics – (1) Die Castings

Die Castings
Initiatives to achieve weight reductions and electrification – External conditions for the Die Castings business –
•
•
•
•
•
•

New automobile sales is expected to increase up to around 2040.
Surely proceed to BEV (percentage of BEV in 2035 is 58% Projection as of October 2022: 54%).
On the other hand, a realistic transition is being explored, including postponement of the ban on ICE
vehicle sales in Europe.
HEVs will continue to have a significant presence in the 2030s.
Production volume of large die casting products is on an increasing trend.
Body/chassis and electrification parts sales will increase, therefore we expect demand of die casting
will increase.

Sales volume base

Key countries: Japan, Europe, U.S.A., China, India

Outlook for Die Casting Demand(Total weight of Key countries)

Outlook for Power Train Mix(Number of Automobiles sold of Key countries)
100

As of October 2023

6
Unit: 1 million t (vertical axis)

Unit: 1 million vehicles (vertical axis)
5

FCV

80

Body/chassis
4

BEV

60

Electrification/
driveline parts

58%
3

40
2
20

Transmission
components
Other

HEV&PHEVICE

1Engine components
0
2015

2020

2025

2030

2035

2040

0
2015

2020

2025

2030

2035

2040

20/46

3. Status by Business Segment & Topics – (1) Die Castings

Die Castings
Main points of growth strategy(Market environment)••••

Although expected to decrease in the future, short-term demand for components for ICE vehicles remains
strong.
Demand for die castings is increasing with the growth in orders received for weight reduction andelectrification components.
Despite the continuation of uncertain situations including in Ukraine, global automotive production has been
recovering.
The needs for cost reduction by integrated casting of massive casted parts and CO2 emissions reduction will
increase in the future.

(Our growth strategy)• Responding to demands for weight reduction and the electrification of automobiles
Expanding the sales of body and chassis parts for reducing vehicle body weight as well as electrification
components such as e-Axle cases and battery cases.

•

Providing high-quality products
Development to meet the needs of global automotive manufacturers; further improvement of a supply
system.
Expanding adoption of our products by developing and proposing new products.

•

Building an optimal supply chain
Maintaining and improving good relations with business partners; establishing a stable supply system.

•

Initiatives for massive casted parts of automobiles
Establishing technologies for massive casted parts and developing innovative production methods to meet
future needs.

Maintaining and growing trust from automotive manufactures globally to expand our business.
21/46

3. Status by Business Segment & Topics – (1) Die Castings

Trends in Production Weight of Die Castings••

All regions are expected to see a year-on-year increase in FY2024.
Production weight is expected to reach the highest record, exceeding 300,000 tons per year
(consolidated).

Trends in production weight (FY2019 1Q – FY2024 4Q)
Consolidated(Unit: t)Consolidated (left axis)
U.K. (right axis)

Japan (right axis)
China (right axis)

Americas (right axis)
Thailand (right axis)

80,000

By Region(Unit: t)

40,000Consolidated

60,00030,000Japan
Americas40,00020,000China

20,000U.K.

10,000Thailand000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2019

2020

2021

2022

2023

2024

*Solid lines indicate actual results; dotted lines indicate forecasts.
22/46

3. Status by Business Segment & Topics – (1) Die Castings

Die Castings – Summary –Forecasts of net sales and operating income(Unit: Billions of Yen)

(Unit: Billions of Yen)

300

30
267.7
247.6

250

25

215.7
200

20

150

15

12.2
10.9
100

10
5.2

50

FY2024 regional conditions(Japan)Automotive production on recovery trend, withshortage of semiconductors and othercomponents largely resolved.
(Americas)
Sales and profits to increase due to increased
production volume and new product launches,
despite higher labor expenses.
(U.K.)
Sales to increase and profits to become positive
due to the recovery in automobile sales in Europe,
despite the delay in new product launches.
(China)Sales to increase due to new product launches
despite the struggle involving Japanese andwestern automotive manufacturers owing to theadvance of Chinese-owned automotive
manufacturers.
Profits to decline due to increased price-cut
demands and increased labor expenses.
(Unit: Billions of Yen)

500
FY2022

Net sales (left axis)

FY2023

FY2024(Forecast)

Operating income (right axis)

Net sales

FY2022

FY2023

FY2024(Forecast)Japan
Americas
U.K.
China
Thailand

93.0
58.2
13.0
42.6
8.9

102.0
74.1
16.6
44.8
10.0

109.5
82.7
19.1
46.0
10.4
23/46

3. Status by Business Segment & Topics – (1) Die Castings

Die Castings
Initiatives to achieve weight reductions and electrification – Exhibiting at EUROGUSS2024 –•••EUROGUSS2024 January 16-18, 2024 Held in Nuremberg, Germany
Aluminum die casting products for BEVs and latest technologies underdevelopment exhibited as a reference.
Proposed various solutions contributing to vehicle weight reduction.
The Ryobi booth

Key products exhibited• Body and chassis parts contributing to improving
rigidity and weight reduction(e.g., steering supports, shock towers)• Newly developed products for BEVs using laser
welding and other joining technologies(e.g., battery cases)
1220ｍｍExhibit examples

150ｍｍ

150ｍｍ
350ｍｍ

350mm

1600ｍｍSteering Support

1650ｍｍBattery
Case
Shock Tower
24/46

3. Status by Business Segment & Topics – (1) Die Castings

Die Castings
Initiatives to achieve weight reductions and electrification – Sales contribution of strategic products –•••Sales of electrification, body, and chassis parts show solid growth.
We expect these products to account for 43% of net sales in 2027.
Electrification and body/chassis components accounted for approximately 86% of
new orders in the FY2023.
(FY2020: 38%, FY2021: 55%, FY2022: 77%)
Trends in sales and share by die casting parts category
Body/Chassis
Transmission
Other

Electrification
Engine

■4.3%
■2.9%

■■Total43%■■Total■■Total■■Total

5.3%

7.2%
FY2020

FY2021■■Total

15.4%
10.3%
5.0%
FY202224%■■Total

17.4%

9.2%
8.1%
FY202316%
8%
FY2024(Forecast)

FY2027(Forecast)
25/46

3. Status by Business Segment & Topics – (1) Die Castings

Die Castings
Initiatives to achieve weight reductions and electrification– Efforts relating to massive casted parts of automobiles–••

Market situation surrounding massive casted parts; increased needs.
As the leading specialized die casting company, offering manufacturing and die
technologies surpassing inhouse manufacturing by automotive manufacturers will leadto improving our corporate value.

•

Decision to introduce giant casting machine (July 2023) to begin prototyping services formassive casted parts (March 2025).
Investment amount: Approx. 5 billion yen in total
Location: At the site of the Kikugawa Plant (Kikugawa-shi, Shizuoka-ken)Placed order for casting machine with 6,500 - ton clamping force manufactured by UBE
Machinery (September 2023).
Starting construction of a new plant building (April 2024).
Die plant to be built on the site for quick turnaround on prototyping.

•
•
•
•

Anticipated prototypes:
Battery case,
Front/rear underbody

Conceptual image of giant casting machine

26/46

3. Status by Business Segment & Topics – (1) Die Castings

Die Castings
Initiatives to achieve weight reductions and electrification– Efforts relating to massive casted parts of automobiles–••

While massive casted parts have advantages, many issues remain to be resolved.
Through provision of the prototyping service, we will seek to accumulatetechnology and solve issues along the way.

Advantages

Issues✓✓✓✓Cost reduction from improved
productivity and reduction in
number of processes
Contribution to weight reduction andsustainability
Capturing market needs for massive
casted parts

✓
✓
✓
✓

Securing high level of productivity to recover
initial investment
Handling transportation of massive casted parts
Controlling and stabilizing production conditions(Filling aluminum in short times and with highaccuracy)
Securing space inside building, automating
conveyance
Manufacture and handling of large dies

Image of reduction in number of components withmassive casted parts

Existing production method
Consisting of many components

Massive casted parts
Consisting of several components

27/46

3. Status by Business Segment & Topics – (2) Builders’ Hardware

Builders’ Hardware

Business environment➢ In Japan, the market for residential
housing starts and (non-residential)buildings is almost flat.
➢ Increased procurement cost due tostrengthening of the Chinese yuan.
➢ Growing demand for non-contact
devices in the living environment field.
➢ Domestic demand for remodeling andrenovation is growing.

Main initiatives➢ Improve profitability in the Japanesemarket.
➢ Expand sales of high-value-added
products (next-generation key
products).
➢ Expand sales in overseas markets.
➢ Take preventive measures against
possible defectiveness and promote
quality stabilization.

Forecast of sales and operating income(Unit: Billions of Yen)

(Unit: Billions of Yen)

12

10.1

10.8

8

0.3
0.2

4

0

0.6

11.0

FY2022
Sales (left axis)

0.2

FY2023

FY2024
Forecast
Operating income (right axis)

0.4
0.2
0

Performance summary➢ (FY2023)
Sales increased both in Japan andoverseas.
Profits declined due to factors such as
rising procurement costs of overseas
production and increasing labor costs.
➢ (FY2024 forecast)
Sales are expected to increase both inJapan and overseas. Profits are expected
to increase due to higher sales.
28/46

3. Status by Business Segment & Topics – (2) Builders’ Hardware

Builders’ Hardware

Topics in the Builders’ Hardware business
The RUCAD electric door opening/closing equipment
The new RU-020 model released

Flagship model
The GEOPRO series GCC-4V released

42mm
Standard arm application

Parallel arm application
286mm
32mm

65.5mm

59mm

Track rail application✓ Closes automatically during power failuresby emergency power supply.
✓ Expanded range of applicable door size
and weight.

✓ Adapts to various living spaces throughthree types of application methods.

✓ New product in concealed-in door
closers widely used in prestigious
buildings.
✓ Most compact body among existing
concealed-in products.
✓ Can be mounted in doors with smallinternal housing space.
29/46

3. Status by Business Segment & Topics – (3) Printing Equipment

Printing Equipment
Forecast of sales and operating income

Business environment➢ Demands for automation and labor savings due
to labor shortages and aging of printing press
operators.
➢ Steady sales of presses for package printing.
➢ Continuation of soaring prices of procurement
items.
➢ Decrease in paper supply and sharp rise in
prices are leading to a shift away from printing.
➢ Shake-out of offset press manufacturers isgoing on after the 2008 financial crisis and
COVID-19 pandemic.

Main initiatives➢ Collaboration and new businesses throughalliances with companies in the printing
industry.
➢ Development of automation, labor-savings,
and assist functions for printing presses.
➢ Sales expansion of new model 970 series.
➢ Strengthening sales of package printing
models.
➢ Reflecting higher raw material prices in selling
prices.

(Unit: Billions of Yen)

(Unit: Billions of Yen)

30
23.4

24.1

26.3

20

3
2

1.5

1.1
10
0

0.5
(10.7)(10.8)FY2022

FY2023(12.9)

1
0

FY2024
Forecast
Sales (left axis) Operating income (right axis)* Figures in parentheses indicate export components of sales.

Performance summary➢ (FY2023)
Sales increased both in Japan and overseas.
Profits declined due to the effects of soaring
raw material prices and increasing labor costs.
➢ (FY2024 forecast)
Sales are expected to increase both in Japanand overseas. Profits are expected to decrease
due the effects of soaring raw material prices,
exhibition expenses, and other related factors.

30/46

3. Status by Business Segment & Topics – (3) Printing Equipment

Printing Equipment
Topics in the Printing Equipment business
Completion of brand-new factory

Introduced new equipment and otherfeatures for the package printing market

Factory No.3
Factory No.1
Administrativebuilding

Factory No.2

RMGT10 series

RMGT9 series

Factory No. 3 was completed in
November 2023, and production started.
Striving to optimize production systems
and improve productivity byconsolidating scattered factories.
• Location:• Facility use:

Fuchu-shi, Hiroshima-ken
Assembly and inspection of
sheetfed offset presses• Total floor area: 4,400 m2

New specifications and equipment
introduced in mainstay models✓ RMGT9 Series
Added new specifications for low cost,high quality printing on thick cardboard.

✓ RMGT10 Series
Added equipments contributing to
reducing workload.

(Total floor area: Factory No.1 10,000 m2; Factory No.2 19,300 m2)
31/46

4. Sustainability / ESG

4. Sustainability / ESG

Sustainability / ESG
Environmental Initiatives
Targets to reduce CO2 emissions by 2050
Achieve carbon neutrality by 2050
Curb CO2 emissions from domestic and overseas facilities by at least 47% from the FY2018
level by 2030. (*1)
Initiatives in 2023••

Introduced an internal carbon pricing system (*2) as a criterion for investment decisions.
Promoted the introduction of energy-saving equipment and transformation of mindset of individual
employees.

Reduction targets for CO2 emissions by 2050

Major measures to becomecarbon neutral

Previous reduction vision• Promote the introduction ofenergy-saving equipment.

47% reduction*1• Use of renewable energy(solar, hydroelectric, etc.)• Control of combustion process inmelting of aluminum alloys• Switch to non-fossil energy(hydrogen, ammonia, etc.)

2018

2030

425 k t-CO2

224 k t-CO2

2050*1 CO2 emissions shown are absolute amounts for Scopes 1 and 2.
*2 System of translating the volume of CO2 emissions reduced into a monetary expense figure by applying an internal carbon
price system and using it in investment decisions and other situations.

33/46

4. Sustainability / ESG

Sustainability / ESG
Sustainability topics
Biodiversity education (S)Implemented ayu fish release experience learning
for the following objectives:• Contribute to preservation of biodiversity.
• Nurture environmental awareness in children,
who will be the driving force of the next
generation, to care for plants and animals.

Investment in human capital (S)Initiatives for proper transactions (S)• Established a learning management system andstrengthened the workplace education support
system through the implementation of
microlearning.
• Established “the Mental and Physical Health
Promotion Committee” to maintain and improve
the health of employees.
• Awarded as a Certified Health and Productivity
Management corporation for guidance on healthand initiatives for
improving lifestyles(fourth time in arow).

Based on our Partnership Building Declaration,
actively promoted initiatives to enforce propertransactions.
• Phased implementation of shortening of payment
terms• Began discussions on appropriately reflecting
labor expenses in prices.

34/46

5. Financial Strategy

5. Financial Strategy

Measures to realize management conscious of capital cost andstock price
Current state analysis•••

With the exception of a period in 2018, PBR has been below 1 for a long time.
One contributing factor is the return on capital (ROE of about 5%) being lower than the cost of capital (costof equity capital of about 8-9%) (i.e., the equity spread is negative).
While the company cannot control its stock price, we need to recognize the market’s valuation of ourcompany, demonstrate our businesses and their growth potential and future prospects, and implement
measures for improvement (the medium-term management plan is not disclosed).

Policy for improvement
With the Die Castings business as our core business, we will continue to invest in future growth areas tostrengthen earning power. At the same time, we will formulate medium- to long-term business strategies toenhance corporate value, promote and disclose specific initiatives, and thereby seek to improve the market’svaluation of our stock price.

PBR = ROE × PER
Measures to improve ROE
Strengthening earning power• Continue to invest in growthareas and seek to increase
orders received for strategic
products (for electrification andweight reduction).
• Maximize profits by reducing
costs through productivity
improvements.

Improving asset efficiency andpromoting financial strategy•••

Reduction in cross-shareholdings.
Periodic verification of appropriatenessof cross-shareholdings and systematicsales of cross-held shares.
Stable shareholder returns Continue
stable shareholder returns with adividend payout ratio of 30% as a guide.
Strengthen investment in human capital
to improve employee capabilities andjob satisfaction.

Measures to improve PER
Enhancing IR activities• Disclose Medium-Term Management
Plan and KPIs.
2025 Medium-Term Management Plan to
be disclosed in early 2025.
• Promote active dialogues withshareholders and investors.
• Enhance IR events (factory tours, etc.)
and IR materials (research reports,
English language disclosures, etc.).
36/46

5. Financial Strategy

Status of IR Activities (January - December 2023)
Feedback to management

Status of meetings, etc.
••••

Financial results briefings: Two times
Dialogues with institutional investors and analysts: 151 times(total number of sessions)
Factory tours: Once
Small meetings: Three times (total number of participants: 73)

Main hosts handling the events
Financial results
briefings

President and CEO, Corporate Officer General
Manager of Corporate Planning Div.,
Corporate Officer General Manager of Finance
Dept.

Investor
interviews

Corporate Officer General Manager of FinanceDept., etc.

Small meetings

Corporate Officer General Manager of FinanceDept., etc.

Factory tours

Plant Manager, General Manager of Researchand Development Dept., etc.

Main themes and shareholders’ areas of interest
•
•
•
•
•
•
•
•

Status of recovery of automotive production in the Die
Castings business; production trends by region
Our strategy and initiatives for vehicle electrification
Impact of rising energy and material costs on business
Developments toward larger automotive parts and ourstrategies and initiatives
Impact of exchange rate fluctuations on businessInitiatives to address PBR of less than 1
Policy on shareholder returns
Our view on reducing cross-shareholdings

Frequency

Content

Comments
frominvestors andanalysts

Semiannually

Summarize comments from investors
and analysts in individual interviews
and other occasions and report themat board meetings.

Analystreports

As published

Report analyst reports published by
securities firms by e-mail.

Monthly

Report analysis of market conditions,company’s stock price trends, trading
volume, etc. bye-mail.

Stock priceinformation

Results of dialogues with shareholders and investors•

Would like to see trends in demand forelectrification and weight reduction components in
Die Castings in an easy-to-understand presentation.

•

Explained numerical forecasts for demand trends
by fiscal year in financial results briefing materials.

Request•Would like a factory tour organized.

Response•

Conducted in the fall of 2023.

•

Would be nice to have materials giving an overview
of financial results in the first and third quarters as
well.

•

Disclosed materials on the website from the third
quarter of 2023.

RequestResponse

RequestResponse

37/46

5. Financial Strategy

Shareholder returns
Trends in dividends per share anddividend payout ratio

Dividend policy(Unit: %)(Unit: Yen)

100

60

30.4

28.8

25.6

50

30
80

➢ Ryobi’s basic policy for profit distribution is tomaintain a stable return of profits toshareholders while securing funds for growthinvestment along with a medium- to long-term
improvement in consolidated operating
performance.
➢ Along with giving due consideration tomaintaining a stable stream of dividends, theamount of shareholder returns is determined inlight of prevailing conditions, with an eye toachieving a dividend payout ratio of around 30%.

80

45
0.0

Status of dividends

20

0

0
FY2020

FY2021

FY2022

FY2023

FY2024
Forecast

Dividends per share (left axis)
Dividend payout ratio (right axis)

Dividends per share(yen)
Dividend payout
ratio (%)➢ Dividends in FY2023 were 30 yen higher thaninitial forecast, based on annual performance,
financial position, and other factors (annual
dividends were 80 yen, up 35 yen from theprevious year).
➢ Annual dividends of 80 yen per share are planned
for FY2024.

FY2020

FY2021

FY2022

FY2023

FY2024
Forecast

0

20

45

80

80

−

−

30.4

25.6

28.8
38/46

About forward-looking statements
This document contains forward-looking statements regarding matters such as Ryobi’s businessplans, strategies, and operating results.
Such forward-looking statements reflect Ryobi’s judgements based on information available at thetime of preparation. They involve inherent risks and uncertainties.
Ryobi’s actual activities and operating results may differ from these forward-looking statements
due to economic conditions, the business environment, trends in market demand, trends inexchange rates, and other factors.

Unauthorized copying and replication are prohibited.
39/46

Appendix

Die Castings
Trends in sales by region
Japan

China
RYOBI DIE CASTING DALIAN
CO., LTD.
RYOBI DIE CASTINGCHANGZHOU CO., LTD.

33.0 34.6 42.6

(Unit: Billions of Yen)

RYOBI LIMITEDRYOBI MIRASAKA CO.
RYOBI MITSUGI CO.
TOKYO LIGHT ALLOY CO., LTD. etc.

44.8 46.0

FY2020 FY2021 FY2022 FY2023 FY2024
Forecast

71.7

86.4 93.0 102.0 109.5

FY2020 FY2021 FY2022 FY2023 FY2024
Forecast

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

9.5

19.1
10.6 13.0 16.6

FY2020 FY2021 FY2022 FY2023 FY2024
Forecast

RYOBI DIE CASTING(USA), INC.

RDCM, S.
DE R.L. DE
C.V.
(Mexico)Americas

ThailandRYOBI DIE CASTING (THAILAND)
CO., LTD.

4.3

6.8

8.9 10.0 10.4

FY2020 FY2021 FY2022 FY2023 FY2024
Forecast

58.2

74.1 82.7

27.5 31.4
FY2020 FY2021 FY2022 FY2023 FY2024
Forecast
41/46

Appendix

Die Castings
Trends in capital expenditure by region
Japan
RYOBI LIMITEDRYOBI MIRASAKA CO.
RYOBI MITSUGI CO.
TOKYO LIGHT ALLOY CO., LTD. etc.

China
RYOBI DIE CASTING DALIAN
CO., LTD.
RYOBI DIE CASTINGCHANGZHOU CO., LTD.

3.9

4.0

3.4

1.1

(Unit: Billions of Yen)

12.1

1.1

FY2020 FY2021 FY2022 FY2023 FY2024
Forecast

6.3

4.3

6.5

RYOBI DIE CASTING(USA), INC.

5.0

FY2020 FY2021 FY2022 FY2023 FY2024
Forecast

RDCM, S. DE
R.L. DE C.V.
(Mexico)Americas

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

0.3

1.0

1.2

0.2

Thailand

0.2

FY2020 FY2021 FY2022 FY2023 FY2024
Forecast

RYOBI DIE CASTING (THAILAND)
CO., LTD.

3.7
FY2020

2.3

1.1

1.2

0.6

1.3

2.1
FY2021

5.2

4.1

FY2022

FY20237.5
FY2024
Forecast

FY2020 FY2021 FY2022 FY2023 FY2024
Forecast

42/46

Appendix

Die Castings – Japan –Business environment

Sales trend(Unit: Billions of Yen)
120

102.0
100
80

86.4

109.5

93.0

71.7

60
40
20

➢ The shortage of semiconductors and other parts haslargely been resolved. Automotive production showsa recovering trend.
➢ Although currently lagging behind sales in China,
Europe, and the United States, BEV sales willcontinue to grow, led by policy.
➢ Automotive manufacturers are divided into thosethat declare reduction of or withdrawal from engine
development and those that continue development.
➢ Demand for light weight components is growing(replacing iron with aluminum).

Main initiatives

0
FY2020

FY2021

FY2022

FY2023

FY2024(Forecast)

RYOBI LIMITED
Hiroshima Plant
Hiroshima East Plant

RYOBI
MIRASAKA CO.

TOKYO LIGHT
ALLOY CO., LTD.
HOEI INDUSTRIESCO., LTD.

RYOBI LIMITED
Shizuoka Plant

RYOBI MITSUGI CO.

➢ Increasing orders received for new strategic
products (weight reduction and electrification
parts).
➢ Building structures for production of strategic
products.
➢ Tackling the casting of massive casted parts.

RYOBI LIMITED
Kikugawa Plant

RYOBI LIMITED
Hiroshima East
Plant

43/46

Appendix

Die Castings – Americas –Business environment

Sales trend(Unit: Billions of Yen)
100

82.7
74.1

80

40

➢ Shifted focus to the more profitable trucks and
SUVs and reduced production targets for EVs in the
US.

58.2

60

27.5

➢ Production is on the increase, with problems suchas parts shortages and logistics stagnation
stemming from the effects of COVID-19 nearly
resolved.

➢ Increase in labor expenses due to wage hikes(minimum wage increase).

31.4➢ An interest rate reduction phase will begin in 2024
and appetite for automobile purchases will increase
due to improved financing environment.

20
0
FY2020

FY2021

FY2022

FY2023

FY2024(Forecast)Main initiatives➢ Smooth launch of new products and improving
productivity.
➢ Responding to rising labor expenses, etc. (review
of production processes, etc.)

RYOBI DIE CASTING(USA), INC.

RDCM, S. DE
R.L. DE C.V.
RYOBI DIE CASTING(USA), INC.

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

44/46

Appendix

Die Castings – China –Business environment

Sales trend(Unit: Billions of Yen)
50

42.6
40

33.0

44.8

46.0

34.6

30
20

➢ China’s automotive production recovered with thelifting of its zero-COVID policy, expanding to morethan 30 million units per year.
➢ Shares of BEVs and PHEVs sales increased to over30%.
➢ Continued Policies favoring BEVs and PHEVs, suchas the extension of vehicle purchase tax
reduction/exemption and relaxed license plates
acquisition conditions.

Main initiatives

100
FY2020

FY2021

FY2022

FY2023

FY2024(Forecast)➢ Strengthening ties with leading customers andgrowing sales.
➢ Optimizing production structures in China andmaking effective use of existing facilities.

RYOBI DIE CASTINGDALIAN CO., LTD.

RYOBI DIE CASTINGDALIAN CO., LTD.

RYOBI DIE CASTINGCHANGZHOU CO., LTD.

RYOBI DIE CASTINGCHANGZHOU CO., LTD.
45/46

Appendix

Die Castings – U.K., Thailand –U.K.

Business environment

Sales trend(Unit: Billions of Yen)
25

19.1

20

16.6
13.0

15
10

9.5

10.6

5

RYOBI ALUMINIUMCASTING (UK), LIMITED

Main initiatives

0
FY2020ThailandFY2021

FY2022

FY2023

FY2024(Forecast)(Unit: Billions of Yen)

15

8.9

10

10.0

➢ Expanding sales of BEVs (government’s
measures to support penetration)➢ Rise of Chinese-owned EV manufacturers

10.4
Main initiatives

6.8

RYOBI DIE CASTING(THAILAND) CO., LTD.

➢ Improving productivity (improvement in
defect rates)➢ Promoting price negotiations(rectification)

Business environment

Sales trend

5➢ Automotive production has grownmodestly across Europe as a whole
thanks to the ongoing easing of parts
supply issues.
➢ Efforts to reflect high energy costs in
product prices continue to grow.
➢ Policy rates remaining high (concerns
about a decline in appetite for automobilepurchases)➢ Securing new orders as main project forJapanese company.
➢ Improving productivity (improvement in
defect rates)

4.3

0
FY2020

FY2021

FY2022

FY2023

FY2024(Forecast)

46/46