Integrated Report

Head Office

762 Mesaki-cho, Fuchu-shi, Hiroshima-ken 726-8628, JapanTEL 81-847-41-1111

Tokyo Branch

5-2-8 Toshima, Kita-ku, Tokyo 114-8518, JapanTEL 81-3-3927-5541

https://www.ryobi-group.co.jp/
Ryobi Limited. All Rights Reserved.

June 2024©RYOBI LIMITED 2024 Printed in JapanRYOBI INTEGRATED REPORT 2024

Table of Contents

Editorial policy
Ryobi publishes this Integrated Report to inform ourshareholders, investors, and other stakeholders about
our financial and non-financial efforts to create value
and as a communication tool. Please note that the
IFRS* Foundation’s International Integrated Reporting

03

Ryobi’s core values

05

Message from top management

11

Financial and non-financial highlights

Framework and the Ministry of Economy, Trade andValue creation story

Industry’s Guidance for Integrated Corporate Disclosure
and Company-Investor Dialogues for Collaborative
Value Creation were used as references during theediting process. In the report, the entire group, including
Ryobi Limited and consolidated subsidiaries (domestic
and overseas), is referred to as “Ryobi,” while “Ryobi
Limited” is also referred to separately.

Scope of the report

17

Cultivated strengths: (1) Die casting technology (2) Global production structure

23

Value creation process

25

Business environment awareness and materiality

27

Medium-term objectives and our initiatives

31

Ryobi’s challenge: Die Castings Business33

Initiatives for weight reduction and electrification of automobiles
Ryobi’s aluminum die castings contribute to solving environmental problems through vehicle weight
reduction and electric vehicle applications

Providing door closers to ensure quiet and secureclosing and other building hardware. From houses to
offices and commercial facilities, we support safe andcomfortable door use.

35

Ryobi’s challenge: Builders’ Hardware Business

37

Ryobi’s challenge: Printing Equipment Business
ESG (Environmental, Social, and Governance)

Cautionary note on forward-looking
statements
This integrated report includes forward-looking
statements regarding our future outlook and plans.
These statements are subject to risks and uncertainties,
and actual outcomes and performance may differ
materially from those expressed or implied in this report.

History of Ryobi’s growth(3) Manufacturing capabilities cultivated through die casting

Die cast products are used in a variety of industries,
including the manufacture of automobile parts such astransmission cases, body chassis, and battery cases.
We provide high-quality products that meet the diverse
needs of our customers worldwide.

* IFRS: International Financial Reporting Standards

Period: January 2023 to December 2023
(Some sections include information fromJanuary 2024 or later)
Scope: Ryobi Limited and 19 subsidiaries(As of December 31, 2023)

15

High-precision, multi-functional offset printing presses
that speedily produce beautiful printed materials suchas catalogs, posters, magazines, and packages. We
offer innovative, high-quality printing presses andservices to customers around the world.

41

Environmental initiatives

45

Social initiatives

49

Governance53

10-year financial highlights

55

Consolidated financial statements

59

Organization profileRYOBI
INTEGRATED REPORT 2024
01

Ryobi Integrated Report 2024

Ryobi Integrated Report 202402

Ryobi’s core values

Create a Sound and Dynamic Corporation
through Technology, Trust and Challenge
Ryobi is committed to creating a sound and dynamic corporation through technology, trust, and challenge. Guided bythis corporate philosophy, we seek to establish ourselves as an indispensable entity by responding to the needs ofcustomers and society and by creating and providing innovative, top-quality products and services.

Three elements ofour corporate philosophy

Create a higher standard of living

Corporate
MissionRyobi’s corporate philosophy issupported by three elements:

and better quality of life by providing
advanced technology with a visionof the future“Corporate Mission,” “Management
Mission” and “Employees’ Mission.”

Corporate
Philosophy

Value the trust andRefine your intelligence

goodwill of society, andstrive to become a strong,
dynamic organization thatreflects the originality andand polish your mind to

Management
Mission

Employees’
Missionhave a wide perspective,
and challenge goals withenthusiasm

creativity of individual
employees

Charter of Corporate Behavior
The Ryobi Charter of Corporate Behavior establishes a set of principles that Group companies and employees must follow
in order to raise awareness of corporate ethics. With the purpose of realizing a “sound and dynamic corporation” as part ofits corporate philosophy, the Ryobi Group adheres to all laws and international rules in word and spirit. In addition, beyond
being an economic agent that conducts business rooted in common sense, while pursuing profits through fair competition,
the Group aims to become a trustworthy company that has a useful presence in society as a whole.
1. While taking the measures necessary to protect personal data, we shall make efforts to obtain consumer and user
trust by the development and provision of useful products and services in a safe and responsible manner.
2. We shall undertake fair, transparent, free competition and sound business transactions. We will also ensure thatinteractions with political organizations, governments and government agencies are sound and correct.
3. In addition to targeting stakeholders, we shall communicate with members of society who are not direct
stakeholders and disclose corporate information in a proactive and fair manner.
4. Recognizing that initiatives to alleviate environmental problems are necessary for the continuing survival ofcompanies, we shall take a proactive approach in preserving the global environment.
5. We shall actively undertake social contribution activities to fulfill our role as a good corporate citizen.
6. Along with ensuring a safe and comfortable work environment, we shall respect the diversity, character andindividuality of those we hire to build a workplace culture that promotes creativity and dynamism. This, as aconsequence, will improve the mental and physical well-being of employees.
7. We repudiate any connection between antisocial forces and groups that pose a threat to social order and security.
8. We shall follow international rules and regional laws when undertaking international business activities as well as
respect the cultures and customs of such regions and countries, making every effort to contribute to thedevelopment of these regions and countries.
9. With the intent of contributing to the realization of corporate ethics—recognizing the social desires andexpectations inherent in their roles—our management shall make efforts to ensure that business partners are fully
informed regarding those social desires and expectations and develop systems to realize this.
10. In cases where violations of this code in fact occur, our management shall assume responsibility in confirming theactual situation, investigate the causes and make efforts to prevent such violations from reoccurring. Disclosure ofthese events will also occur in a timely and accurate manner, the responsible parties will be identified anddisciplinary actions will be undertaken.

Code of Conduct
Charter of Corporate Behavior

Long-term vision

Code of Conduct

Corporate message

Combining die castings andfinished products to be chosen by

Beyond Ideals and Dreams

customers around the world
Ryobi’s long-term vision outlines where our company
wants to be in the future. It represents an image that
we share throughout our organization, and indicatesthe direction for our efforts to resolve business issues.

03

Ryobi Integrated Report 2024

Our corporate message represents our corporate
philosophy condensed into one sentence, and servesto convey Ryobi’s medium- to long-term approachand direction to various stakeholders in an easily
understandable manner.

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

Medium-term objectives
Lightening the load
worldwide

Lightening vehicle weight
Harnessing the properties of aluminum and die casting technologies
Doors that open and close safely and quietly with a light touch
Builders’ hardware that turns doors into universally accessible portals, not barriersLightening the workload for printing factories
Multi-functional printing equipment that supports customers’ switch to smart
factories
Lightening the impact on the environment
Doing our part in the global effort toward carbon neutrality and a circular
economyLightening workstyles
A variety of systems to support employees on their career paths

Ryobi Integrated Report 2024

04

Message from top management

From Akira Urakami to each of you
We follow societal trends and embrace newchallenges.
We can change and grow as a company thatlightens the load.
Introduction
Ryobi celebrated its 80th anniversary on December 16, 2023.
Over these eight decades, we have overcome many hardships
to reach the point we are at today thanks to the generous
support of our customers, business partners, local
communities, and many other stakeholders.
Starting out as a die casting manufacturer, in the early 1960s
Ryobi expanded into builders’ hardware, printing equipment,
and the manufacturing of other finished products. We
continued to broaden the scope of our business into manyother fields, including power tools, fishing tackle, and golfing
goods, but in the early 2000s, a sweeping review of ourbusinesses was done, so today we concentrate on the die
castings business, complemented by builders’ hardware andprinting equipment.

In-house die fabrication, essential to Ryobi’s die castingsbusiness since its inception, is the foundation of our current
vertically integrated system. We have faced significant difficulties
in changing times as products have become larger and more
complex, requiring high production efficiency with each
evolution. But we persevered through the most challenging
times and environments, and that resilient effort has become
one of our greatest strengths. Particularly in this age of volatility,
uncertainty, complexity, and ambiguity (VUCA), we reaffirm ourcommitment to take on challenges. We will put forth every effort
required of us in the face of evolving business conditions toprovide innovative, top-quality products and services so that
our stakeholders remain happy to be on this journey with Ryobi.

Achieving operational management with an awareness of capital costs
and share prices

Akira Urakami
President and CEO
Ryobi Limited

05

TOP
MESSAGE
Ryobi Integrated Report 2024

In 2023, COVID-19 was reclassified to the less severe categoryof Class 5 under Japan’s Infectious Diseases Control Law,
which resulted in a return to more normalized domestic
economic activity. However, the extended war in Ukraine andthe worsening situation in the Middle East pose the risk ofincreased raw material prices, the trade balance worsening,and possible inflationary pressures. Nevertheless, thesemiconductor shortage has eased for car manufacturers,
which form the main customer base for our die castingsbusiness, and both production and sales of automobiles arebouncing back. Our production volume in the die castingsbusiness has also increased. The weak yen has led to a
year-on-year 13.3% increase in consolidated net sales at ouroverseas group companies, a yen equivalent of 282.7 billion
yen, setting another all-time record.
Soaring energy prices and higher labor costs affected profits,
but higher sales led to a year-on-year increase in profits.
Our PBR (price-to-book ratio) was 0.57 as of December 31,
2023, remaining below 1.0. Market participants are calling for
management to be more conscious of capital costs and shareprices. We believe increasing return on equity (ROE) andreducing capital costs to improve the equity spread is an urgent
priority.
Going forward, as we work to strengthen our earnings
capacity in each of our businesses, we will lay out our mediumto long-term strategies and specific initiatives so that the capital
market can see our business potential and growth prospects.
By clearly expressing our vision for the future and businessstrategies, we aim to further bolster our corporate value.

(Unit: times)

PBR (Price-to-Book Ratio) trend

1.0
0.8
0.6
0.4

0.57

0.52
0.35

0.2

0.29

0.28

2021

2022

0.0
2019

2020

2023

Ryobi Integrated Report 2024

06

Message from top management

Formulating a long-term management strategy
We are currently formulating a new long-term management
strategy to guide us to 2035, exploring avenues that will help usalign with the corporate mission in our corporate philosophy“to create a higher standard of living and better quality of life byproviding advanced technology with a vision of the future.”
As we strategize, the business environment is changing
rapidly, obscuring the view ahead. More than ever, we need toconsider how the environment is likely to change over the nextten years if we are to achieve sustainable growth.
In formulating our long-term management strategy, we
identify threats and opportunities that can be anticipated in the2035 business environment based on macro trends with athrough line to 2050.
In this process, we have selected young and mid-career

Creating a corporate culture that emphasizes dialoguing with employees
to hear their many valuable ideas

employees who will be responsible for Ryobi’s future and are
drawing heavily upon their ideas and considered opinions. I see
my role at the top of management as presenting a vision,
showing the way forward, and getting our employees onto thesame page to affect change.
Together with the long-term management strategy, we will
formulate a medium-term management plan covering thethree-year period starting in fiscal year 2025. We will continue
our proactive efforts to disclose information, thereby meetingthe expectations of our stakeholders. We will devise specificmeasures to achieve growth as a company that solves societal
issues through manufacturing, and we plan to present them inearly 2025.

As social and economic environments diversify along withpeople’s core values, Ryobi remains committed to “creating asound and dynamic corporation through technology, trust, andchallenge.” This philosophy at the heart of our corporate
activities consists of three elements—our Corporate Mission,
Management Mission, and Employees’ Mission. We want ouremployees to become more familiar with these elements,
especially the third: “Refine your intelligence and polish yourmind to have a wide perspective, and challenge goals withenthusiasm.” With a deeper, shared awareness of their mission,
I believe that every employee will be better able to take on new
challenges using their creativity and ingenuity in line with our
corporate philosophy.
The long-term management strategy currently being
formulated will set the ground for putting these ideas into
practice. Our young and mid-career employees will play a keyrole in the process of working toward our goals, so we felt it
essential to incorporate their ideas and perspectives into thelong-term strategy. We therefore selected 20 employees todiscuss with top management management targets (financial
and non-financial), the long-term direction of our businesses,
and our system of promotion.
During these discussions, it became clear that implementing
the three elements of our corporate philosophy—our corporate
mission, management mission, and employees’ mission—is thepath to realizing both social and economic value.
Through various annual events, we aim to familiarize
employees with the corporate philosophy and deepen theirunderstanding of it. Visits are also arranged for me to engage indialogues with employees at each of our business locations.
To share our main direction and values with all of ouremployees, we distribute the Ryobi Group’s Corporate
Philosophy Employee Guidebook also to employees at ouroverseas sites. To ensure that the nuances of the text areunderstood as clearly as possible, the guidebook has beentranslated into English, Chinese, Spanish, and Thai.

Developing die casting technologies that can respond to long-termchanges in the automotive industry
The act of creation springs from people’s ideals and dreams.
Ryobi aspires to embody these ideals and dreams through its products
and technologies.

Offsetprinting presses

Door closers

This is why we engage in manufacturing and strive toward innovation.
We believe that our manufacturing ideals can be reachedthrough the ceaseless pursuit of better solutions.
Ryobi will continue striving to realize what people

Automobile
parts

envision and, further, to create something that goesbeyond any ideals and dreams.

07

Ryobi Integrated Report 2024

Automobile
parts

Door closers

Our core die castings business has long-standing relationships
with major global automakers and a solid delivery track record.
Leveraging these relationships, we provide expertise developed
as a specialized die casting manufacturer to build strong
partnerships. We actively propose expanded uses for aluminum
die-cast parts, including the replacement of materials—usingaluminum instead of steel components. The increasing demandfor vehicle weight reduction amid tightening environmental
regulations worldwide is favorable for expanding sales ofaluminum die castings.
“Giga casting” is a process that assimilates dozens of large
components into the casting of a single “giga component” tosignificantly reduce costs and eliminate production steps. This
manufacturing method is garnering attention worldwide for its
potential to transform manufacturing in industries well beyond
automotive. As a leading die casting company, we are rapidly
acquiring die casting technology on an unprecedented scaleand refining our production techniques. In 2025, we plan to
introduce a die casting machine with a clamping force of
6,500 tonnes, the first of its kind to be used by a specialized die
casting manufacturer in Japan.
In the future, we plan to build a dedicated factory building at
our Kikugawa Plant in Kikugawa, Shizuoka Prefecture, toprepare to offer prototyping services for ultra-large components.
Starting around March 2025, we plan to offer new value tocustomers, primarily in prototype design and die manufacturing.

The manufacturing techniques and expertise we havecultivated in conventional large die cast products will give us asignificant advantage as we make the anticipated shift to evenlarger die cast components. We believe we will be able tocollaborate well with our customers to meet new challenges
based on long-standing relationships built on trust.
Manufacturing using giant die casting machines is expanding,particularly in China. The size of these new die castingmachines, as well as the dies, products, and every otheraspect, far exceed the scale used in conventional
manufacturing. However, technical challenges exist, such as in
the injecting and filling of aluminum melt into dies with a large
projected area and managing distortion during productmanufacturing. In Japan, there are many other issues that alsoneed to be resolved, not only in casting but in non-productive
conveyance time, for example. We intend to overcome thesechallenges and usher in a new era of die cast manufacturing by
March 2025.
Ryobi’s forecast for die-cast usage weight by component
type up to 2040 predicts declining demand for aluminum die
castings for engine and transmission parts, but increasing
demand for electrified components, drive parts, andbody/chassis components. Moving forward, we will continue todevelop production systems and technologies to accurately
respond to such changes in demand for die castings.

Ryobi Integrated Report 2024

08

Message from top management

Developing products to meet the needs of domestic andinternational customers
In the builders’ hardware business, we have been a market
leader in domestic door closers since 1963, when we firstsucceeded in producing a die cast door closer body. Over theyears, we have developed one hit product after another byenhancing performance through innovative mechanisms andimproving durability with new aluminum alloys. Despite a
gradual contraction of the domestic builders’ hardware market
that is expected due to decreasing housing starts and reducedbuilding floor areas, we will strive to maintain and expand ourmarket share by identifying dormant market needs and adding
new value to door closers. We will continue bringing ease andcomfort to homes and offices through such products as our
RUCAD automatic door controller and GEOPRO Series

builders’ hardware, which received the Good Design Award in2009. The RUCAD is a new product that quietly and firmly
closes a door with expanded functionality that contributes to abarrier-free society.
Outside of Japan, we are expanding sales in regions where
demand is expected to grow and where the builders’ hardware
market remains strong, such as the North American market. We
plan to strengthen our sales structure and productdevelopment capabilities for these priority overseas areas.
Since the functions and designs required for door closers differ
by region and country, we will work to develop products thatmatch market needs to win favor for our products amongcustomers in other countries.

Providing solutions to meet all of a printing company’s plant needs,
including pre- and post-printing processes
In the printing equipment business, RYOBI MHI Graphic
Technology Ltd. is expanding its lineup of RMGT brandsheet-fed offset printing presses to meet diversifying needs.
Using the tagline “IRODORI—Coloring the World Together,” thecompany offers a wide selection of printing presses from small
to large formats, developing and manufacturing advanced
products that are labor-saving and environmentally friendly,
based on feedback from equipment users.
While the market is shrinking for publication printing, such asmagazines and books, and commercial printing, such as flyers
and pamphlets, the market for package printing, such as
product packaging, is showing solid growth. There is strong
demand for high-value-added special printing in areas requiring
an aesthetic touch, such as gift boxes, requiring advanced
production values, including quality. In addition, the printing
industry is facing labor shortages and difficulty passing on skills,

so there is rising demand for automating and deskilling theprinting process so that it requires less human labor and no
special skills. Going forward, we will continue to listen to
customer feedback both domestic and international to create
new added value for printing presses.
We are working with companies in the printing industry to go
beyond automating and reducing human labor in the printing
process to providing one-stop solutions for converting printing
sites into smart factories. This includes visualizing production
and optimizing processes across the entire factory,
encompassing pre- and post-printing processes. Forinter-process optimization, RMGT proposes the use of
automated guided vehicle (AGV) robots and jointly developed
automatic paper stackers.
We will continue to strengthen the RMGT brand bysolidifying the trust of users in 170 countries worldwide.

seen progress in “green aluminum” methods that entail refining
ore using renewable energy. Currently, new ingots are used for
manufacturing body and chassis parts that require ductility.
However, we are working with material manufacturers andcustomers to expand the use of green aluminum and recycled
ingots to achieve manufacturing with lower environmental
impact.
Ryobi is strengthening its PR and solutions-proposing
activities to promote a fuller understanding of the environmental
performance of these aluminum die castings and expand theirapplications.

To reduce carbon emissions in our business activities, we will
promote environmentally conscious capital investment by
setting our own internal carbon price as a criterion forinvestment. Die casting, which involves melting metals likealuminum and injecting them into molds at high speed and highpressure, emits large amounts of CO2 during the raw material
melting process. To address this issue, Ryobi is participating in
the development of a hydrogen combustion industrial furnace
under the Green Innovation Fund Project of the New Energy
and Industrial Technology Development Organization (NEDO).

Promoting diversity, equity & inclusion to build a highly diverse company“Manufacturing is about people,” as the saying goes, indicatingthat the manufacturing industry relies on people as its source ofstrength. To adapt to an increasingly diverse society and properly
address customers’ needs, we must strengthen our humanresources by leveraging and developing the diverse skills, values,and experience of our employees. We strive continuously to create
safe, healthy, dynamic, and comfortable workplaces and webelieve it is essential to secure and develop a diverse workforce toachieve sustainable growth in the future.
In terms of creating comfortable workplaces, we are focusing
on child-rearing support, taking steps to improve the effectivenessof systems that enable employees to balance work and childcare,along with ensuring peace of mind in the workplace environment.
Regarding women’s career advancement, the current ratio of
female employees in managerial and supervisory positions is only
16%. We aim to raise this to 18% or higher in the future.

Ms. Mami Ito, who was appointed as an outside director in
March 2023, provides advice on management issues, including
the promotion of women’s career advancement, through theBoard of Directors and other means. With her guidance, we aim
to revamp educational and training programs and further
improve our work environments.
The Ryobi Group will continue working to deepen the bondsof trust with society we have established through manufacturingthat brings comfort and affluence to people’s lives. We will also
continue to take on the challenges involved in creating
technologies, products, and services that anticipate futurechanges. Aiming to be a sound and dynamic company, we
encourage our employees to work as one to further enhance ourcorporate value. We look forward to your continued
understanding and support.

Accelerating our efforts toward carbon neutrality
We aim to reduce CO2 emissions by 47% by 2030 compared to2018 levels and achieve carbon neutrality by 2050. In January2022, the Ryobi Group Environmental Policy was formulated
and environmental targets were set. To achieve carbon
neutrality, we have created a roadmap for reducing CO2
emissions, as stipulated in the Environmental Policy, and are
advancing initiatives accordingly.
The secondary aluminum alloy we employ as a raw material
for our die cast products consists of recycled alloys derived

09

Ryobi Integrated Report 2024

from scrap collected through an established recycling system.
Our current usage ratio in the die castings business is 95%
secondary alloy to 5% new ingots. We view both the material
and the process as ecological means of helping to realize acircular economy. Producing secondary alloy ingots releases
only 3% of the carbon emissions released when producing newaluminum ingots by refining aluminum extracted from bauxite
ore. While the refining process for producing new ingots
requires significant electrical power, recent developments have

President and CEO
Ryobi Limited

Ryobi Integrated Report 2024

10

Financial and non-financial highlights [Fiscal year ended December 31, 2023]
FinanceNon-financeNet sales
300
250

282.7

(Unit: billions of yen)

(Unit: billions of yen)

20

15.0

249.5

200

12.2

198.1
171.0

10

150

(Unit: thousand t-CO2/year)

13.9

8.5

7.0

10.0

400

395
341

345

344

330

8.7

7.8

5.0
0

0

2019

2020

2021

2022

2023

-5

-1.5

2020

2021

2019

2022

2023

Net income (loss) attributable toowners of parent

Ordinary income-to-total asset
ratio(Unit: billions of yen)

(Unit: %)

4.5

10.1
9.0

4

6.0

3

0

4.8

0

0

2020

2021

2022

2023

2019

2020

2021

2.7

6

4.1

3.7

4.3

4.0
3.3

-6.0

-0.6

-4.4
2020

2021

2022

2023

Cash flows from operating
activities

-1

2019

2020

2021

2

-0.6

0.0

0

2019

2.3

0

-0.7

2022

2023

-5

-3.7
2019

Capital expenditures

2020

2021

2022

2023

0

2019

(Unit: billions of yen)

(Unit: %)(Unit: %)

35

30

50

50

30.3

27

26.0

25

24

14.9

15

16.8

15

18.6

46

5

2019

2020

2021

2022

2023

44.7

44.0

2020

2021

2022

2023

1,241 1,238
1,113

60

600

40

300

20

2020

2021

2022

2019

2023

0

2020

2021

Ryobi Integrated Report 2024

2022

2023

0

Number of employees

99.5 99.6

99.2 99.2

2020

2021

2022

2023

Average length of service(Ryobi Limited)(Unit: years)

10,00020

7,683

7,396 7,243 7,375

7,497

19

18.1

6,000

18

4,000

17

2,000

16

0

2019

2020

2021

2022

2023

0

Percentage of new graduates hires
who are women/Percentage of female
employees in management positions

19.0 19.1

2021

2022

18.5

2020

2023

Work engagement(Ryobi Limited)

50

50

25

2019

19.0

(Ryobi Limited)(Unit: %)

46.3

47.4

40

32

27

30

21.1

2019

(Unit: persons)

35

23

29

21

30
20

20
15

10

2019

0

3.2
2019

10

1.8 2.3
2020

2021

5
2022

2023

0

4
2019

2020

7

6

4

9

10
0

2021

New graduate hires

11

99.5

80

900

40

15

5
0

1,180 1,152

45

40

20

42

2019

(Ryobi Limited)

25

3
0

2023

30

44.8
44

6

0

45.8 45.3

9

10

2022

35

13.9

13.1

12

11.8

47.5

48

17.4

18

2021

45

24.8

21

20

2020

Percentage of male employees
taking childcare leave

Equity ratio(Unit: billions of yen)

30

1,200

8,000

4

1

-3.0

2023

7.1

2.8
0

2022

8

10

5

(Unit: %)100

Annual lost time incident rate
per 1,000 workers

2

3.0

0

Return on equity

3.3
4.9

2019

(Unit: %)

5

12.0

100

2.5

-1.8

(Unit: thousand m3)

1,500

200

5

50

Waste recycling ratio(Ryobi Limited and all domestic group companies)

300

7.5

100

Water intake(Ryobi Limited and all domestic group companies)

CO2 emissions

12.5

15

220.5

Ordinary income (loss)

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

2022

2023

Management positions

Manufacturer(automobiles)

Ryobi Limited

Deviation surveyed using services provided by Advantage
Risk Management Co., Ltd. starting in 2023.

Ryobi Integrated Report 2024

12

Value creation story
History of Ryobi’s growth ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ p. 15-16
Cultivated strengths ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ p. 17-22
Value creation process ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ p. 23-24
Business environment awareness and materiality ・・・・・・・・・・・・・・・・・・・・・・・・・・ p. 25-26
Medium-term objectives and our initiatives ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ p. 27-30
Ryobi’s challenge: Die Castings Business ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ p. 31-32
Initiatives for weight reduction and electrification of automobiles ・・・・・・ p. 33-34
Ryobi’s challenge: Builders’ Hardware Business ・・・・・・・・・・・・・・・・・・・・・・・・・・・・ p. 35-36
Ryobi’s challenge: Printing Equipment Business ・・・・・・・・・・・・・・・・・・・・・・・・・・・・ p. 37-38

13

Ryobi Integrated Report 2024

VALUE
CREATION
STORY
Ryobi Integrated Report 2024

14

Value creation story

History of Ryobi’s growth

1943

1950

1960

1970

Challenge to create a verticallyintegrated system from scratchEver since our foundation,
we have recognized the needto diversify risks by doing
business with a variety ofindustries. Further expanding
this
idea,
we
began
manufacturing offset printingpresses, door closers, fishingtackle, and power tools in the
1960s, using the technology
and experience accumulated
through die casting. This wasa major step forward for it as
a company with business inboth die casting and finishedproducts.

In December 1943, Yutaka Urakami founded Ryobi
Seisakusho Co., Ltd. in his hometown of Hiroshima
Prefecture. The opening ceremony was held in
February of the following year, and production of die
cast products began in a converted soy sauce
warehouse. Shortly thereafter, the company
established a vertically integrated system that enabled
in-house handling of all operations from die fabrication
to post-processing, and in 1947 began supplying
automobile
manufacturers.

Conditions atcompany founding

1980

Challenge to create
finished products based on
our cultivated technology

1990

Challenge to improve
the Ryobi brand visibility

Ryobi Seisakusho was not yet widely known. To improve Ryobi’s namerecognition, the company name was changed to the current Ryobi
Limited in 1973, and a corporate identity system was introduced in
1975. Another development during this period was the establishment ofsales and production facilities for finished products in Europe, Australia,
and Asia as we took up the challenge of global expansion.
1974 Founded Ryobi America Corporation
1982 Founded Ryobi Australia Pty. Ltd.
1983 Founded Ryobi France S.A.
1986 Acquired capital in Inertia Dynamics Corp. and started overseas
manufacturing
1988 Founded Ryobi Motor Products Corp. in the U.S. and acquired all
assets of the power tool division of Singer Co., followed byexpansion of power tool manufacturing in North America

2000

2010

2020 2023 (Year)

Challenge to expand globally

Challenging through selection and concentration

1994 Founded Ryobi Dalian Machinery Co., Ltd.,
presently called KYOCERA RYOBI (Dalian)
Machinery Co., Ltd.
In the die castings business, Ryobi became the firstJapanese die casting manufacturer to establish production
facilities in the U.S., responding to the increase intransactions with overseas automobile manufacturers.
1985 Founded Sheller-Ryobi Corp., presently called
Ryobi Die Casting (USA), Inc.
1990 Founded Ryobi Aluminium Casting (UK), Limited
in Northern Ireland

However, this strategy of broadening the business fields did not produce the expected results due to thecollapse of Japan’s economic bubble in the 1990’s, and Ryobi suffered a serious setback. Consequently, in
2000, we announced the Sound Management Plan to restore our business operations.
By drastically cutting out unprofitable operations through selection and concentration, Ryobi formulated apolicy for concentrating resources on areas of strength.
2000 Transferred the North American power tool and garden equipment operations; transferred fishingtackle business2001 Transferred the European power tool operations
2002 Discontinued the golfing goods business
After completion of the plan, Ryobi established die casting production facilities in China, Mexico, and Thailand
from 2005, adding to production facilities in the U.S. and the U.K., in order to meet the needs of customers
looking to expand global business through locally procured components. Currently, we offer high-quality die
cast products in six overseas locations.
In 2014, to increase our presence in the printing equipment business, we integrated our business with the
sheet-fed offset printing press field operations of Mitsubishi Heavy Industries Machinery Systems, Ltd. toestablish a joint venture, RYOBI MHI Graphic Technology Ltd. Moreover, in 2018, power tools business wastransferred.

Current Ryobi Die Casting(USA), Inc.

(Unit: billionsof yen)400
1943 Founded Ryobi Seisakusho Co., Ltd.

1973

1975

Introduced a corporate identity
system (CIS)

Changed company nameto Ryobi Limited
1966

1954

1962

Started manufacturing
die cast products

Started manufacturing
plastic die castproducts

2018

Changed the fiscal
year end from
November 30 toMarch 31

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

Changed the fiscal year end
from March 31 to December 31

1983

2002 Discontinued the golfing goods business

Began manufacturing
golfing goods

Shizuoka Plant started
operations as a production
facility in eastern Japan
1944

1994

2000 Transferred the fishing tackle business

Began manufacturing fishing tackle

300

1988

1966

Established a production facility for zinc die casting

1989

1985

Developed the GD
squeeze casting
Founded aFounded a production
production facility
facility in Mexicoin Thailand
2005 20072010 20112017 2018

Founded a production facility
in the U.K.
1990

Die Castings Business

1930

200

Established a production facility
in the U.S.

Founded Tokyo Light Alloy
Co., Ltd.
Began sand casting andgravity die casting

Net sales for fiscal year
ended March 31, 2018

Began production
by low pressure
die casting

1971

Startedmanufacturing
power tools

1961

100

1974

1982 1983

Started sales ofpower tools

Founded asales basein Australia

1986Founded asales basein Europe

Started manufacturing
overseas

1966

15

Ryobi Integrated Report 2024

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

1987

1970

Transferred power tools businessTransferred North American operations
Started productionin Dalian, China

Started sales of electric automaticdoor controller RUCAD
2019

Constructed a new plant

1985

2021

Installed automated production line
for door closers in Japan

Started sales of A3-size
digital offset printing presses
1999 2000

2008

Builders’ Hardware
Business
p. 35-36

2014

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

Joint venture RYOBI MHI Graphic
Technology Ltd. commenced
operations

Printing Equipment
Business
p. 37-38

2011

Ended sales
Transferred font operationsof phototypesetters

Started sales of electronic
phototypesetters

1980

2018

2000

1994

Started sales of
A2-size offset
printing presses

Started sales of manualphototypesetters
Started development and sales of fonts

1960

1994

1978

1970

This graph shows changes in net sales

1988

Started manufacturing
door closers in Taiwan

Started sales
Startedof own brandproduction of
products
A3-size offset
printing presses

1950

p. 31-34
Acquired Hoei
Industries Co., Ltd.,a manufacturer of forgedaluminum products
Net sales for the transitional fiscal
period ended December 31, 2018

Founded a sales base in the U.S.
1968

Started productionof door closers

1943

Founded a
production facility
in Changzhou, China

1961

1963

0

Founded a
production facility
in Dalian, China

Acquired capital inTokyo Light Alloy Co., Ltd.

1990

2000

2010

2020

(Year)

Ryobi Integrated Report 2024

16

Value creation story

Cultivated strengths (1) Die casting technology

Beyond manufacturing with integrated die casting technology

Ryobi’s casting methods

Ryobi’s die castings business has adopted a proprietary vertically integrated system that encompasses product development andprototyping, die design, die fabrication, casting, machining and assembly, and quality inspection, in addition to providing development
support for customers.
Looking to the future, Ryobi is taking on the challenge of developing various materials and new production methods. With the aimof developing products intended to enhance reliability and functionality, we are eager to contribute to the future of industry, particularlyin the field of mobility.

The production of high-quality die cast products requires strategies to suppress the formation of blisters caused by entrapped air. To
this end, we have developed the Ryobi Shut Valve (RSV), a proprietary vacuum exhaust valve, as well as a vacuum die casting methodthat reduces the pressure inside the die. Currently, all our products are cast in dies incorporating an RSV to ensure stable quality.
In addition, we have established a die sealing technology to improve the airtightness of dies and have developed a high-vacuum
die casting method that accommodates welding and high-temperature heat treatment (T6, T7), which had long been considered
impossible.
In recent years, we have developed a technology that allows for smaller vacuum exhaust valves (our “new RSV”) as well as a lower
casting pressure. This has contributed to cost reductions through the downsizing of casting machines and the adoption of methods
to cast multiple pieces at once.
In addition to these die casting methods, we are able to offer optimal solutions incorporating a variety of other methods, such as
gravity die casting, which is suitable for thick-walled products to ensure strength and rigidity; the separate injection process;low-pressure die casting; and GD squeeze casting, which is a novel casting method.
Moreover, the development of aluminum die casting alloys with high ductility has made it possible to substitute aluminum for steel
in body and chassis parts, thereby contributing to the weight reduction of automobiles.

Ryobi’s proprietary vertically integrated system enables us to respond with agility and precision to the diverse needs of our customers.
In addition, by automating production lines, adopting information and communications technology, and upgrading our quality
assurance expertise, we have achieved stable quality, accelerated delivery times, and reduced costs.
Product
development andprototyping

Die design

Die fabrication

Casting

Using CAE analysis
and evaluation
technology, we candevise optimal shapes
for die casting that
help to reduce theweight of the final
product.

When devising the
optimal castingplan in the designof a die with 3D
CAD, we conductmolten metal flow
analysis and other
CAE analyses.

Beginning with 3Dmodels, wemanufacturehigh-precision diesusing highly
advanced machine
tools and unique
technologies.

Molten non-ferrous
metal, such as analuminum alloy, is
injected at high speed
and high pressure intoa precision die, where
it is instantly shaped
into the desired form.

Machining andassembly

Qualityinspection

Machining, surface
treatment andassembly of castproducts according
to customer needs
and requests

Accurate quality inspection
achieved by measuring
product dimensions with a
3D measuring instrument
and verifying internal
quality through X-rays andComputed Tomography
inspection processes

Converting die fabrication processes into a comprehensive production line
The dies that are the key to our die cast products are fabricated at the die plant of the Hiroshima East Plant in Fuchu,
Hiroshima Prefecture. These dies are supplied to the manufacturing plants of the Ryobi Group around the world.
Because dies have a significant impact on product quality, we constantly strive to improve machining accuracy
through strict control of the temperatures of our fabrication facilities. Moreover, die fabrication is required to extend
the service life and shorten the lead time. For this reason, the die fabrication process takes place on a line that
integrates each process from material receipt to die shipment; we have thus built a system that reduces delays andrework between processes. We have developed an integrated production system that includes heat treatment andautomatic transportation by AGVs to meet the needs for high quality and short delivery times.

Ryobi’s casting methods
❸
High

❹

❷

❶
High-vacuum die casting

Strength and quality

Processes of the vertically integrated system

Highly tough products; large, complexly shaped products

GD squeeze casting Thick-walled, high-strength products
Low-pressure die casting
Separate injection process (T-SIP)
Gravity die casting
Complexly shaped products; hollow products❻❺

Vacuum die casting❼

Large, complexly shaped products❽
Conventional high-pressure die casting
General products

Thickness❶ Shock tower❷ Subframe❸ Knuckle❹ Differential retainer❺ Cylinder block❻ Motor case❼ Transmission case
❽ E-Axle caseHigh

Ryobi’s efforts to optimize the entire production process
Streamlining coordination between processes

Arrival of die material

Pre-heat treatment
processing

Heat treatment

Distortion removal
processing

One-way processingof dieElectric dischargemachining

Hole machining* Automatic Guided Vehicle

17

Ryobi Integrated Report 2024

Reduced lead times

3D measuring

Automatic
conveyance by AGV*

Processing withmachining centers

Die assembly

Die shipment

In the die castings business, we seek to optimize the entire production process by seamlessly coordinating processes while improving
the technical and management refinement of each production process. The initial stage of mass production of new orders is a time
when product quality is at risk of instability in the form of product defects. As production volumes increase, small defects in eachprocess can accumulate and manifest themselves in the form of product defects. In order to reduce these unstable factors acrossprocesses, in September 2022 we established a department within the Die Department to supervise everything from pre-ordertechnical review and process design to the start of mass production and support. By establishing these systems and implementing
appropriate measures, we have achieved improved productivity, reduced costs, higher quality, and stable supply on a global basis.

Standardizing technologies and expertise
In order to maintain and manage the production of die cast products with stable quality, we are working to standardize the technologies andexpertise we have cultivated through a history of numerous production innovations. In the die castings business, it is necessary to incorporatea stable production system to meet customer needs that are becoming more sophisticated and complex in terms of the quality required. For
this reason, we have established the RYOBI Engineering Standard (RES) as a means of accumulating and improving technology, maintaining
and improving quality, and implementing standardization and similar improvements. Technology is an asset of the entire company that weaccumulate, and stable production is now possible due to clear regulations on working methods and quality standards.

Ryobi Integrated Report 2024

18

Value creation story

Cultivated strengths (2) Global production structure

Ryobi’s die casting production system for customers worldwide

Die castings business sales by region

In 1985, Ryobi became the first Japanese die casting manufacturer to establish a production facility in the United States. Today, we
have production facilities in six countries around the world, including the United Kingdom, China, Mexico, and Thailand, providing
high-quality die cast products to customers around the world.
Our dies are manufactured in Japan and supplied to our overseas group companies.
The Hiroshima Plant serves as our home factory, promoting Group-wide improvements in productivity and quality through theautomation of production lines, ICT, and quality assurance levels. Ryobi is committed to further deepening and expanding its
relationships with customers, including automobile manufacturers around the world.

By contributing to the expansion of production by automobile
manufacturers and automobile parts manufacturers, domestic
sales ratio accounted for 41% of total sales and overseas sales
ratio accounted for 59% of total sales. Sales by region are shownin the graph on the right.

Die castings business sales by region
Thailand10.0

billion yen

China

Japan

102.0

247.5

44.8

billion yen

U.K.

16.6

billion yen

billion yen

Americas74.1

billion yen

Business with customers worldwide

We are making methodical capital investments in order to establish a stable supply system for customers in each region.

The Ryobi Group is impartial to any specific automobile manufacturer’s affiliation and serves customers globally.

China

RYOBI DIE CASTING DALIAN(Unit: billions of yen) RYOBI DIE CASTING CHANGZHOU

12.5

Americas

RYOBI DIE CASTING (USA)(Unit: billions of yen) RDCM
12.5

7.5

7.5

2.5
0

3.7

5.2

7.5

3.9

4.0

3.4

2.5

4.1

0

2.1

(Unit: billions of yen)

12.1

10.0

7.5
5.0

Japan

RYOBI
RYOBI MIRASAKA
RYOBI MITSUGITOKYO LIGHT ALLOY and others

12.5

10.0

10.0

5.0

billion yen

Die castings business capital expenditures by region

1.1

2.5

Dec 2020 Dec 2021 Dec 2022 Dec 2023 Dec 2024
Forecast

0

Subaru Corporation
General Motors Company● Daihatsu Motor Co., Ltd.
● Toyota Motor Corporation● Nissan Motor Co., Ltd.
● Punch Powertrain PSA
e-Transmissions

Hino Motors, Ltd.
BYD Company Limited● Hyundai Motor Company● Ford Motor Company● Volkswagen AG● Prime Planet Energy &Solutions, Inc.

●

●

●

●

●

Honda Motor Co., Ltd.
Mazda Motor Corporation● Mitsubishi Motors Corporationand others●●

Recognition received from customers around the world

5.0

4.3

5.0

1.1

6.5

6.3

Aisin Corporation
Isuzu Motors Limited● JATCO Ltd● Suzuki Motor Corporation● Stellantis NV● Zhejiang Geely Holding Group●Dec 2020 Dec 2021 Dec 2022 Dec 2023 Dec 2024
Forecast

Dec 2020 Dec 2021 Dec 2022 Dec 2023 Dec 2024
Forecast

Ryobi has strengthened and enhanced its quality system by acquiring ISO 9001 certification, the international standard for quality
control and quality assurance systems, and IATF 16949 certification, the quality management system standard for the automotive
industry. Furthermore, in order to ensure price competitiveness, we are promoting productivity improvement and global cost
reductions. These efforts have been highly regarded by our customers around the world.
Awards received in 2023
Project Commendationfrom Toyota Motor Corporation
for Engineering

U.K.
(Unit: billions of yen) RYOBI ALUMINIUM CASTING (UK)

12.5

Thailand

10.0(Unit: billions of yen) RYOBI DIE CASTING (THAILAND)

10.0

5.0

0

Best Partner Award
from Geely

12.5

7.5

2.5

2022 Best Quality Award
from SAIC General Motors

7.5

1.0

1.2

0.2

5.0

Dec 2020 Dec 2021 Dec 2022 Dec 2023 Dec 2024
Forecast

2.5

0.3

0.2

0

2.3

1.1

1.2

0.6

1.3

Die castings business employee numbers by region
At the end of December 2023, the die castings business had 6,691
employees, of which 2,298 were in Japan and 4,393 overseas. The
number of employees by overseas location is shown in the graph on
the right.

Employee numbers by region
Thailand

378
China

1,888

Global expansion of aluminum die-cast subframes

Dec 2020 Dec 2021 Dec 2022 Dec 2023 Dec 2024
Forecast

Japan

2,298

6,691

With the globalization of automobile
production, customers are seeking
the supply of products with thesame specifications and stable
quality across all regions. Ryobi has
simultaneously launched operations
at three global sites, including one
that had never produced body andchassis parts before.

Measures for production evolution and global expansion
Production in the U.S.
Production in Japan
05M subframe

08M base bracket- Weight reduction- Weldable die-castmaterial- Material technology
and high-vacuum die
casting- Bolt-securing of steelplate press parts- Scaffolding
construction for
two-cavity casting

21M subframe

13M subframe

18M subframe- Two-cavity casting tohandle large-scale
production of large parts- Steel and aluminum
joints (FSW)- Challenges forstructural streamlining
and global expansionof two-cavity casting- Steel and aluminum
joints (FSW)514
19

Ryobi Integrated Report 2024

Mexico698

U.S.A.

915

400,000 parts/year

400,000 parts/year

2008

2013

Production needs
Uniform quality andeasy to produce
Production scale:Three times or morethat of current scale(Global)

25,000 parts/year

2005- Steel and aluminum
joints (bolts)- Two-cavity casting

Customer needs
Streamlining by
parts integration
400,000 parts/year

U.K.

Global production(U.S., China, and Thailand)

2018

2021

Ryobi Integrated Report 2024

20

Value creation story

Cultivated strengths (3) Manufacturing capabilities cultivatedthrough die casting

Application from die casting technology to finished products(1963 to present)

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

In 1963, the company began manufacturing door closers,

offset printing presses, door closers, fishing tackle, power tools, and golfing goods. Our current businessusing the advanced casting and machining technologies cultivatedin our die casting operations.

activities span three fields: die castings, builders’ hardware, and printing equipment.

Since then, we have been offering high-performance productswith original mechanisms. Our product development focuses onfunctionality and safety as well as barrier-free, inclusive design.
Ryobi produces door guards, hinges, and other builders’Fishing tackle

hardware for various building applications.

(1966 to 2000)
Reel bodies were manufactured
through die casting.
Precision machining technologies wereused for gears and spools.
In 2000, fishing tackle
business was transferred toJohshuya Co., Ltd.

Discontinued the
manufacture and sales ofgolfing goods in 2002.

In 2018, power tools
business was transferred to
Kyocera Corporation.

Golfing goods(1983 to 2002)

We developed golf clubs with

Power tools(1968 to 2018)(1961 to present)

integrally molded aluminumalloy heads.

In 1961, the company began manufacturing offset printingpresses by applying its precision machining technology fordie casting molds.
We strive to achieve high-accuracy, multi-coloring, and highly

Many power tool bodies wereadvanced functionality by accumulating the production

manufactured through die casting.

technologies that we use to assemble high-precision parts.
We offer a wide range of products, from small to large printingpresses, and develop and manufacture products thatprovides solutions for digitalizationand environment.

21

Ryobi Integrated Report 2024

Ryobi Integrated Report 2024

22

Value creation story

Value creation process

Corporate philosophy
Societal changes
Increased awareness of the global
environment● Increased uncertainty about the
global situation● Demographic changes● Increased awareness of human rights● Accelerated digitalization of society● Increased demand for transparency
improvement and disclosure incorporate management●●

Create a sound and dynamic
corporation throughtechnology, trust and challenge

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

Foundation for sustainablevalue creation / ESG

Foundations of our business* Figures are actual results for FY2023.

Financial capital● Total assets: 318.8 billion yen (end of fiscal year)● Cash flows from operating activities: 26 billion yen
Manufacturing capital
Established production facilities in Japan,
the U.S., Mexico, the U.K., China, and Thailand● Capital expenditures: 13.9 billion yen

Environment
p. 41-44

Strengths of the Ryobi Group●Management Mission●

Value the trust and goodwill of society, and strive to
become a strong, dynamic organization that reflects
the originality and creativity of individual employees

Societyp. 45-48

Business development

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

Society

Die Castings
Business
p. 31-34

Human capital● Number of consolidated employees:
7,497 (end of fiscal year)

Social capital● Trusted relationship withshareholders, business partners,
and other stakeholders

Commitment to challenge●23

Oil (crude oil equivalent): 2,644 kl
Water consumption (in Japan): 1,238 thousand m³

Ryobi Integrated Report 2024

Facilitating comfortable living andenriching people’s lives● Contributing to the safety, security,and comfort of people’s lives● Reducing workloads by providing automatedand labor-saving products and services
Creating an environment in which all
employees can play an active role
● Promoting diversity, equity, and inclusion

Cultivated
Natural capitalstrengths (2)Energy consumption (in Japan)
Electricity: 159,585 thousand kWh
Global production
City gas: 8,793 thousand m³
structure
Liquefied natural gas (LNG): 3,307 t
p. 19-20
Liquefied petroleum gas (LPG): 2,055 t●

Value co-createdwith stakeholders
Environment●Intellectual capital● Development of materials, advanced casting,and machining technologies, as well as
collective strength and corporate agility.

Refine your intelligence and polish yourmind to have a wide perspective, andchallenge goals with enthusiasm

Governancep. 49-52

Having started out as a die casting manufacturer, Ryobi has
cultivated its own unique technologies to produce a variety ofcomponents mainly for the automotive industry.
We have since expanded our operations by using these technologies
and experiences to manufacture finished products such as builders’hardware and printing equipment.

Cultivatedstrengths (1)Die casting
technology
p. 17-18

Employees’ Mission

Cultivatedstrengths (3)Manufacturing
capabilities
cultivated throughdie castingp. 21-22

Builders’ Hardware
Business
p. 35-36

EconomyMaintaining stable profits and cash flow
Continuation of stable dividends

Printing Equipment
Business
p. 37-38

Ryobi Integrated Report 202424

Value creation story

Business environment awareness and materiality
Ryobi believes that in order to maintain sustainable growth and meet the expectations of customers, shareholders,investors, business partners, employees, local communities, and other stakeholders, we should identify the long-term

Materiality matrix

values we can provide to customers and society and incorporate these values into our management strategy.

Business environment awarenessSocietal changes
Increasedawareness of the
global environment

Increased
uncertainty about
the global situation

Demographic
changes

Increasedawareness ofhuman rights

Accelerated
digitalization ofsociety

Improvedtransparency incorporate
management andincreased demandfor disclosure

25

Risks
●

Decreasing sales of engine
and transmission parts

Opportunities
Increasing sales oflightweight parts and electricvehicle parts● Improving the corporate
image by reducing theenvironmental impact●

Supply chain disruption● Soaring raw material prices
and sharp fluctuations inforeign exchange rates●

Difficulty in recruiting younger
generations● Aging employees● Decreasing business
opportunities and transaction
volume●Declining engagement
Outflow of human resources

●

●

●

●
●

●

Existing businesses
becoming obsolete

Shrinking number ofshareholders and investors● Scandals●

Ryobi Integrated Report 2024

Increasing corporate
credibility by improving
customer satisfaction

Increasing need forautomation and reduction ofhuman labor

Materiality
Supporting weight reductionand electrification of
automobiles● Responding to climatechange● Reducing the environmental
impact●Providing high-quality
products● Building an optimal supply
chain●

Promoting automation andreducing human labor● Improving productivity●

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

●

●

●

Strengthening trust withstakeholders●

Promoting risk management●

Improving information disclosure●

Supporting weight reduction and electrification of
automobiles●

Responding to climate change●

Providing high-quality products●

Promoting automation and reducing human labor●

Improving productivity●

Strengthening corporate governance●

Creating a comfortable work environment●

Reducing the environmental impact●

Improving labor productivity●

Building an optimal supply chain●

Respect for human rights●●

Improving business operations through the use ofdigital technology

Promoting compliance●

Human resource development

Importance to Ryobi●

Internal revitalization
Securing skilled humanresources that wereconcentrated in urban areas●

Importance to stakeholders

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

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

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

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

Materiality identification process
To maintain awareness of the environment in which our business operates, we listened closely to the opinions of our
stakeholders as we conducted our materiality assessment. We will continue to review our materiality assessments
incorporating even more opinions from our stakeholders going forward.
STEP 1
Identification ofsocial issues

STEP 2
Prioritization

Not only did we study the ESG rating organization (FTSE) survey items, but we also recognizedchanges in society that surround Ryobi. Based on the risks and opportunities presented by theseexternal changes, related divisions led by our Corporate Planning Division identified social issues that
we believe we should address.

The social issues identified in STEP 1 were evaluated and prioritized (scored) from two perspectives:
importance to stakeholders and importance to Ryobi.

STEP 3
Confirmation ofvalidity

Our sales and procurement staff inquired with our business partners about their expectations andrequests for our company, and we then used their opinions to review and reassess our materiality
matrix (as prioritized in STEP 2), and confirm the validity of its content.

STEP 4
Verification anddecision

Finally, in the meeting of the Corporate Operating Committees, which was attended by ourmanagement and auditors, based on the priorities and validity confirmed in the previous step, we
discussed and decided on the materiality issues that Ryobi should address, guided by our
corporate philosophy and corporate strengths.

Ryobi Integrated Report 2024

26

Value creation story

Medium-term objectives and our initiatives
In considering our medium-term measures from 2022, Ryobi established “Lightening the load worldwide” as the theme
Materialityof the measures to represent our common sentiment across all departments and throughout the company.

Our approach

Related SDGs

This slogan expresses our desire to reduce the burden of the various issues that society faces.
Expanding sales of lightweight parts (body andchassis) and electric vehicle parts (die castings)[p. 31-34]● Developing massive casted parts for automobiles
and putting in place a supply system (die casting)[p. 34]● Reducing CO2 emissions (company-wide) [p. 43]● Promoting the reduction and recycling of industrial
waste (company-wide) [p. 44]●

Supporting weight reductionand electrification of
automobiles● Responding to climate change● Reducing the environmental
impact●Medium-term objectives

Lightening the load worldwide

Further developing and putting in place a supply
system capable of meeting the needs of customers
worldwide (company-wide) [p. 19-20]● Maintaining and improving good relationships withbusiness partners (company-wide) [p. 48]● Establishing a consistent supply system(company-wide)●

Providing high-quality
products● Building an optimal supply
chain●

Expanding sales of door closer products with highadded value that support barrier-free and touchlessaccess (builders’ hardware) [p. 35-36]● Supporting customers’ smart factory conversion(printing equipment) [p. 37-38]●

Promoting automation andreducing human labor● Improving productivity●

Lightening vehicle weight
Harnessing the properties of aluminum and die casting technologies
Doors that open and close safely and quietly with a light touch

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

Builders’ hardware that turns doors into universally accessible portals, notbarriers
Lightening the workload for printing factories
Multi-functional printing equipment that supports customers’ switch to smart
factories
Lightening the impact on the environment

Enhancing education and training programs(company-wide) [p. 45]● Improving work engagement (company-wide) [p. 46]● Promoting diversity (company-wide) [p. 46]● Promoting health and safety in the workplace aswell as mental and physical health (company-wide)[p. 47]● Respect for human rights (company-wide) [p. 48]●

Improving business operations
through the use of digitaltechnology● Improving labor productivity●

DX working group activities (company-wide)
Automating appearance inspections by using
image processing and AI technology (die castings)● Automating domestic door closer production line
(builders’ hardware)●●

Doing our part in the global effort toward carbon neutrality and a circular
economyLightening workstyles
A variety of systems to support employees on their career paths

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

Increasing transparent governance (company-wide)[p. 49-50]● Enhancing disclosure of ESG-related information(company-wide)● Ensuring information security (company-wide)[p. 52]●* Pages that contain more details are indicated by brackets [ ].

27

Ryobi Integrated Report 2024

Ryobi Integrated Report 2024

28

Value creation story

Medium-term objectives and our initiatives

Business results, basic financial policies, and dividend policy
Business results
Consolidated net sales for the fiscal year ending December
31, 2023, amounted to 282.7 billion yen, reflecting a
13.3% increase from the previous year. This growth was
driven by higher sales in the die castings, builders’hardware, and printing equipment businesses both indomestic and overseas markets. Specifically, sales in thedie casting business increased by 14.8%, with its sales
composition ratio increasing to 87.6% (up 1.1 percentage
points from the previous year). This was due mainly to thedomestic and overseas recovery in automotive production
as semiconductor supply improved. For the fiscal year
ending December 31, 2024, consolidated net sales areprojected to reach 305.0 billion yen, marking a 7.9%
increase from the previous year.
Operating income for the fiscal year ending December
31, 2023, was 12.2 billion yen, up 75.3% from the previous
year driven by growth in sales, despite a 10.0 billion yen
rise in labor and other fixed costs. Net income attributableto owners of parent reached 10.1 billion yen, marking a111.4% increase. For the year ending December 31, 2024,
operating income is projected to be 13.0 billion yen, a
6.4% increase from the previous year, due to growth insales, although raw material prices and labor costs are
expected to continue rising. Net income attributable toowners of parent is expected to be 9.0 billion yen, down
11.0% from the previous year.

Increase in Labor cost
net sales, etc.
related

+15.1

20

‑6.2

(Breakdown of foreignexchange effects)
Conversion of overseas
subsidiaries +0.3
Depreciation
and amortization Other fixed
costs
+0.4

15

‑4.2

7.0

5

29

350
300
250
200
150
100
50
0

Builders’ hardware

Printing equipment

282.7

305.0

249.5
86.5%

215.7

Results forthe year ended
December 31, 2022

247.6

87.6%

267.7

87.8%

Forecast for
the year ending
December 31, 2024*

Results forthe year ended
December 31, 2023

Ryobi’s operating income and net income
attributable to owners of parent

40

80

30
20
0

Effects ofexports/imports -0.2

4.0

-10
1 2 .2

1 3 .0
9 .0

7 .0
4 .8

2.7

Results forthe year ended
December 31,
2023

Forecast for
the year ending
December 31,
2024*

Results forthe year ended
December 31,
2022

Results forthe year ended
December 31,
2023

‑3.5

Depreciation
and amortization‑0.5

Net income attributableto owners of parent

Other fixed
costs

‑4.2

13.0

12.2

(Main breakdown of other fixed costs)
Repair costs-1.0
Consumables costs -0.6
Utilities charges-0.5

Results forthe year ended
December 31, 2023

72.5

73.8

0.62

0.60

0.8

74.4

70.2

61.9

2.6
60

0.6

0.55

-30
-40

Results forthe year ended
December 31,
2019

Results forthe year ended
December 31,
2020

Results forthe year ended
December 31,
2021

Results forthe year ended
December 31,
2022

Results forthe year ended
December 31,
2023

70.0

0

Forecast for
the year ending
December 31,
2024*

Results forthe year ended
December 31,
2019

Cash flow from investment activities
Free cash flow

Results forthe year ended
December 31,
2020

Results forthe year ended
December 31,
2022

Results forthe year ended
December 31,
2021

Interest-bearing debt (left axis)

0.46

0.44

Results forthe year ended
December 31,
2023

Forecast for
the year ending
December 31,
2024*

0

D/E ratio (right axis)

Forecast for
the year ending
December 31,
2024*

Increase in Labor cost
net sales, etc. related

+9.0

8.6

(Unit: times)

0.51

Cash flow from operating activities
Cash flow from financing activities
Results forthe year ended
December 31,
2022

0.9

-5.8

-20
1 0 .1

Trends in interest-bearing debt and D/E ratio(Unit: billions of yen)

18
16
14
12
10
8
6
4
2
0

(Main breakdown of other fixed costs)
Repair costs-1.0
Consumables costs -0.6
Utilities charges-0.3

Results forthe year ended
December 31, 2022

Trends in cash flow
(Unit: billions of yen)

10

Operating income

Foreign exchange
effects

Ryobi plans to utilize operating cash flow to fund investments aimed at enhancing corporate value and maintaining or
improving shareholder returns. We will also strive to generate internal cash by improving the cash conversion cycle(CCC) and optimizing held assets. Our basic policies are to use long-term borrowings for capital investments and otherlong-term financing needs, while relying on short-term borrowings for working capital as necessary. We aim to manage
our capital size and lower our overall cost of capital by primarily financing our operations through borrowings fromfinancial institutions, prioritizing debt financing. As of December 31, 2023, we have commitment line contracts totaling
18.0 billion yen with our financial institutions to ensure stable funding and prepare for increased demand due totemporary business environment changes, enabling flexible fund procurement. Investments in enhancing domestic andoverseas facilities that will lead to an increase in corporate value, strengthening of R&D, etc., and investments
associated with manufacturing massive casted parts with giant die casting machines will continue, ensuring financial
soundness in terms of the debt-to-equity (D/E) ratio and other factors.

(Unit: billions of yen)

+0.1

10

0

Die castings(Unit: billions of yen)

Changes in operating income(Unit: billions of yen)

25

Ryobi’s net sales and sales composition ratio
by business segment

Basic financial policies

Dividend policy
We are committed to maintaining stable dividends
and determine shareholder profit returns byconsidering various factors, aiming for a target
payout ratio of approximately 30%. Based on thispolicy, we paid an annual dividend of 80 yen per
share for the fiscal year ended December 31,
2023, an increase of 35 yen from the previous year.
Although we have no plan to repurchase ourshares at this time since we are making capital
investments to increase our corporate value, wewill consider increasing the total payout ratio basedon the circumstances.

Trends in dividends per share and payout ratio(Unit: Yen)

(Unit: %)

100

60

46.1
30.4

28.8

25.6

50

30

70
20
0

80

80

Results forthe year ended
December 31,
2023

Forecast for
the year ending
December 31,
2024*

45

0
Results forthe year ended
December 31,
2019

Results forthe year ended
December 31,
2020

Results forthe year ended
December 31,
2021

Results forthe year ended
December 31,
2022

Dividends per share (left axis)

Forecast for
the year ending
December 31, 2024*

0

Payout ratio (right axis)

Target management indicators

Formulating the next medium-term management plan

Society’s expectations for companies encompass various aspects, including not only enhancing business performancebut also fulfilling a range of social responsibilities. Our Group is intensifying and expanding its efforts in these areas. For
business performance, we are concentrating on achieving profitable sales growth and reducing costs, while actively
developing new technologies and products. Our goals include improving the return on assets and increasing free cashflow.

We are currently in the process of formulating and preparing to disclose the next medium-term management plan for2025 to 2027, aimed at increasing our corporate value. The disclosure is scheduled for early 2025.

Ryobi Integrated Report 2024

* Numerical forecasts for the fiscal year ending December 31, 2024 are as of February 13, 2024.
Ryobi Integrated Report 2024

30

Value creation story

Ryobi’s challenge
Business environment awareness

Die Castings Business
Lightening vehicle weight

Become a world-renowned
global supplier in themobility industry with ourcore of die castings business

Hideki Tanifuji
Director and Corporate Officer
Divisional General Manager of
Die Casting Planning and Development Division

Domestic/Overseas sales ratio and sales ratio byproduct (Fiscal year ended December 31, 2023)

Sales composition ratio

Die Castings Business

87.6%(247.6 billion yen)

Consolidated net
sales for fiscal year
ended December 31,
2023

Domestic/Overseas
sales ratio

282.7

billion yen

Domestic

41%

Overseas

Engine parts

14

8%

Sales for 2023 were 247.6 billion yen (up 15%
year-on-year), reflecting a recovery in automobile
production in Japan and worldwide due to the easing ofsemiconductor supply constraints, as well as anincrease in the yen-equivalent value of sales of overseas
subsidiaries due to the depreciation of the yen.
Operating income totaled 10.9 billion yen (up 9%
year-on-year) due to the effect of increased sales,
despite the impacts of increased labor costs and otherfactors.
In 2024, we expect sales to increase both within
and outside Japan as automobile production
continues to recover, with sales forecast to be 267.7
billion yen (up 8% year-on-year) and operating income
forecast at 12.2 billion yen (up 12% year-on-year).

215.7

247.6
Overseas

Domestic

Domestic

2022

2023

2024
Forecast

93.0

102.0

109.5

10.9

20%

12.2

40
20

Internal
combustion
engine

0
2015

2020

2025

HEV&PHV

2030

Our global production structure●

Access to a variety of production methods●

Our R&D department capable of developing new production methods and production technologies●

Access to a great number of large casting machines●

Close collaboration with customers enabling us to proactively make technical suggestions

2040(Year)

2022

2023

Our initiatives for weight reduction and electrification of automobiles
Considering the increasing proportion of lightweight parts in vehicle bodies and in chassis as well as in electric vehicle parts
comprising new orders, we expect the share of these strategic products will account for 43% of sales in the fiscal year
ending December 2027 (from 17.4% in the fiscal year ended December 2023).
● Our high-vacuum die casting and GD squeeze casting (p. 18) will lead to further expansion of orders for lightweight andelectric vehicle parts.

2024
Forecast

Weight of die castings used by part in major countries
Body and chassis parts(Millions of 6
tonnes)5Composition ratio of sales for mass-produced productsElectric vehicle parts

Transmission parts Engine parts

Other

Body and chassis parts, electric vehicle parts

Body and chassis parts

3

0

2015

57%

200
Electric vehicle partsand drive parts

Transmission
parts

100
Other

Engine parts
2020

2025

2030

2035

Other

(Billions of yen)

300

Total number of vehicles
in major countries

4

2040(Year)* Major countries/regions: Europe, Japan, U.S., China, India
Our forecast as of October 2023
Subframe2035* Major countries/regions: Europe, Japan, U.S., China, India
Our forecast as of October 2023●

1

Ryobi Integrated Report 2024

2040
67%

Our vertically integrated system that covers all operations from product development, prototyping, die design, and fabrication

2

31

BEV

60

●

5.2

Main die cast products

Transmission caseTotal number of vehicles
FCV
in major countries(Unit: billions of yen)

158.2

Domestic

Other

Operating income

Overseas

145.6

80

to casting, machining, and assembly

267.7

Overseas

122.7

●

49%

(Unit: billions of yen)100

Our strengths

Transmission parts

9%

Net sales

HEV&PHV Internal Combustion Engine

BEV(1 million/year)* FCV: Fuel cell vehicle BEV: Battery electric vehicle
HEV: Hybrid electric vehicle PHV: Plug-in hybrid vehicle

Body andchassis parts

Electric
vehicle parts

Financial results for 2023 andforecast for 2024

FCV

The automotive industry, which is our main customer, is entering aperiod of massive change typically seen only once in a century. Due tothe progress of the CASE (connected, autonomous, shared, electric)
concept targeting automobiles and the more stringent fuel efficiency
regulations intended to reduce CO2 emissions, it is expected thatdemand for Ryobi’s current mainstay products, which include engine
blocks and transmission cases, will decline in the future.
On the other hand, with the ongoing electrification of automobiles
and the increase in the share of electric vehicles (FCVs, BEVs, PHVs,
and HEVs) in the global automobile market, we believe that the scopeof application of aluminum die casting will expand into EV parts such asbattery cases and body and chassis parts, where the need for weight
reduction is likely to increase. By 2040, we expect that 67% of newvehicle sales in major countries will be battery electric vehicles (BEVs).

59%%

Sales ratio
by product

Automobile sales by power unit in major countries

92.8%
7.2%
2021

84.6%

82.6%

15.4%

17.4%

2022

2023

76%

24%
2024
Forecast

43%
2027
Forecast

Battery case

Ryobi Integrated Report 2024

32

Value creation story

Ryobi’s challenge

Die Castings
Business:

Initiatives for weight reduction and electrification of automobiles

Ryobi’s aluminum die castings contribute tosolving environmental problems through vehicle
weight reduction and electric vehicle applications.
The increased global environmental consciousness and carbon neutrality have resulted in a shift toward electrification and weight reductionin order to improve fuel efficiency in automobiles. Amid these developments, aluminum die castings have attracted attention.
Ryobi is contributing to the emergence of a society committed to sustainability by providing die cast products that contribute to theelectrification of automobiles while reducing their weight.

Aluminum’s contribution to weight reduction and the electrification of automobiles
Compared to conventional gasoline-powered vehicles, FCVs, BEVs, PHVs, and HEVs require
ever-greater weight reduction due to the increased weight of the batteries in electrified
vehicles. Aluminum has a specific gravity of 2.7 g/cm3, which is about one-third of the weightof iron at 7.8 g/cm3. Replacing iron with aluminum die castings will result in a lighter vehicle
body, which in turn leads to lower fuel and electric consumption and reduced CO2 emissions.
In addition, among the metals, aluminum exhibits a very high thermal conductivity at about
three times that of iron. While it conducts heat well, it also cools rapidly. This property is used
to advantage for parts used in electric vehicles such as battery cases, drive motor cases, andinverter cases that must be designed to dissipate heat. As well, aluminum has a lower melting
point than iron or copper, so it can be easily recycled. Since the quality of products
manufactured from recycled ingots is the same as those made from the non-recycled metal,
aluminum die cast products incorporated into automobiles and other products can berecycled after disposal and reused as recycled ingots.

Comparison of aluminum and iron
Weight comparison of ingots ofthe same size (specific gravity)

In conventional die casting, laser bonding is
considered by some to be impractical because of thepotential for internal defects to result from the releaseof gases from the molten base metal during welding.
Through its development of laser bonding technology,
Ryobi has been devising a method that does not
generate internal gases, thus establishing a reliable
technology for joining die cast products by means oflaser welding. As on-board battery capacity is
continuing to increase in order to extend the cruising
range of electric vehicles, the use of laser welding
technology will enable the production of even larger
battery cases.

1200 mm1800 mm

Example of multiple pieces welded together

Challenge to expand the range of application of aluminum die castings
In an effort to improve the crashworthiness of automobiles, pressed steel sheets have been widely used as conventional components thatexhibit high energy absorption in a collision. Aluminum die casting, which uses secondary aluminum alloys as its main raw material, has notbeen widely used in areas where ductility is required because of the characteristics of the alloy and the manufacturing method. In light of this,Ryobi has developed alloys with high ductility, achieving the best combination of heat treatment technology and high vacuum technology usedin casting. This has resulted in the development of functional parts(*) that offer high energy absorption and that will not break due to

Aluminum
(2.7)
Iron
(7.8)

deformation. In order to meet the weight reduction needs of our customers, we will continue to focus on development that expands the scopeof application as well as the potential of die casting.

Thermal conductivity
Aluminum(56)

Using laser bonding technology to develop large parts for automobiles

Iron (15)Before collision
n
io
ct
re ad
Di f loo

Cross car beam

Die cast products by Ryobi contributing to reducing weight and electrification of vehicles
Shock-absorbing
part (*)

Roof post

After collision
n
io
ct
re ad
Di f loo

Shock towerRear-end
post

Image of deformation upon collision
E-Axle case
Hinge pillar

Initiatives for massive casted parts
Kickdown rail
Rear subframe

Tunnel top

Front
subframe

Side member
Battery case

33

E-Axle case

Ryobi Integrated Report 2024

Knuckle (GD squeeze casting)

In recent years, some automobile manufacturers have sought to reduce costs and CO2
emissions by using giant die casting machines to produce massive integrated casted
parts used in the manufacture of automobile bodies. Ryobi is also preparing for the
introduction of a next-generation die casting technology called “giga casting” byconstructing a dedicated factory building at our Kikugawa Plant in Kikugawa, Shizuoka
Prefecture. In or around March 2025, we plan to provide prototyping services formassive casted parts demand for which is expected to increase as part of thedevelopment of new vehicle models. We will offer this solution to customers who are
considering employing the giga casting method. We remain focused on developing
innovative production methods by utilizing the production technology and expertise wehave gained through years of manufacturing subframes and other large aluminum die
cast components.

Conceptual diagram of a giant casting machine

Ryobi Integrated Report 2024

34

Value creation story

Ryobi’s challenge
Our strengths

Builders’ Hardware BusinessHigh market share in the domestic door closer market
Ability to closely respond to customer needs and develop
products and services to match these needs● Factory automation and reduction of human labor●●

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

Provide more convenience while
addressing the needs of society in ourrole as a market leader in the door
closer industry

Taichi Shimizu

Product lineup not only providing comfort and functionality but
also contributing to the overall design of spaces where used
● Consistent supply capabilities using domestic andoverseas production facilities●

Our efforts toward products that support safe and comfortable door use

Corporate Officer
Divisional General Manager
of Builders’ Hardware Division

In the domestic market, we are introducing products with highInstalled product
Door closer

added value and products that respond to customer needs

Domestic/Overseas sales ratio and sales ratio byproduct (Fiscal year ended December 31, 2023)

Sales composition ratio
Builders’ Hardware
Business

3.8%(10.8 billion yen)

Consolidated net
sales for fiscal year
ended December 31,
2023

Domestic/Overseas
sales ratio

282.7

billion yen

Domestic

85%

Overseas

15%

relating to a variety of door types, thereby promoting increased

Doormarket share and profitability. In February 2024, we launched
two new products. The first are the GCC-4V and GCCS-4V

GCC-4V/GCCS-4V concealed door closer

concealed door closers from our flagship GEOPRO Series. Up to now, customers such as partition manufacturers have asked
us to develop compact concealed door closers that provide strong closing force. Many doors fitted to office partitions are
so-called frame and panel doors,* in which panels made of glass or other materials are inserted in a door frame. Because ofthis, sometimes there is insufficient space for a concealed door closer to be embedded in the door. Compared with our existing
GC-6V and GCS-6V models, the thickness (depth) and height of the GCC-4V and GCCS-4V models have been reduced by

Sales ratio
by product

Door closers

73%

Other architectural
hardware27%

about 20%, so they can be fitted to thinner doors than before and to various frame and panel doors. Both models of this new
product employ Ryobi’s unique Twin-Cam mechanism, which enables doors to be firmly and securely closed at a stable speed.
* Frame and panel doors: Doors in which glass or other panels are inserted in and surrounded on all four sides by a frame made from wood, etc.

We have also expanded our product lineup by launching the

Financial results for 2023 andforecast for 2024
Sales in 2023 were 10.8 billion yen (up 7% year-on-year)
thanks to an increase in both domestic and overseas
sales. Despite the positive effects of this increase,
operating income totaled 0.2 billion yen (down 24%
year-on-year) due to the rising cost of procuring parts for
products manufactured overseas, higher labor costs,
and so on.
In 2024, we expect sales to increase both domesticallyand overseas, with sales forecast to be 11.0 billion yen(up 2% year-on-year) and operating income forecast at
0.3 billion yen (up 74% year-on-year).

Net sales

10.1
Overseas

1.4

Domestic

8.7

2022

(Unit: billions of yen)

10.8
Overseas

1.4

Domestic

8.7

2023

Operating income(Unit: billions of yen)

11.0

new RU-020 model of RUCAD automatic door controller.* The
RU-020 can now be fitted to doors weighing up to 85 kg andutilized in a variety of contexts, from offices to factories.

ParallelFurthermore, it is compatible with multiple door applications,

Overseas

1.7Standard

Track-rail

RU-020 model of RUCAD automatic door controller

with a choice of three different types, standard, track-rail, and the traditional parallel. We have also added a model with an
integral battery pack, which acts as an emergency power supply and enables doors to be automatically opened and closed a

9.3

0.2

2024
Forecast

2022

Domestic

0.2

0.3

certain number of times, even when there is a power outage. Going forward, we intend to further increase the adoption of our
products by expanding our lineup and responding to customer requests.
* When a door is opened a little, RUCAD then opens the door electrically and automatically to a predetermined angle.
Having stopped in its open state, the door automatically closes up to 15 seconds later.

2023

2024
Forecast

Expanding sales in overseas markets is an important strategy for growing our business. We
will redeploy human resources in the sales and development departments within thecompany, and improve our sales capabilities internationally and our ability to develop
products for overseas markets. Depending on the country or region, different functions,designs, and so on are required of door closers for overseas markets, so we are working on

35

Business environment awarenessproduct development to suit each of those markets. We are strengthening our sales network

Because of a long-term decline in the construction of new housing in Japan, we expect the domestic market for builders’ hardware
to shrink somewhat. We also expect reduced demand in the market for office buildings due to the popularization of telework. At thesame time, the declining birthrate and aging population mean there is likely to be a further increase in the demand for barrier-freefacilities in people’s everyday lives. This trend encourages us to develop and offer products that cater to the demand for remodelinghomes and support safe and comfortable door use, thereby continuing to respond to the demands of the domestic market.
There is expected to be increased demand internationally, particularly in regions of economic growth such as South Asia, Southeast
Asia, and Africa. Meanwhile, we expect demand to be maintained in major economic regions such as East Asia and North America.

our lineup in Europe, through products with the design quality that is appreciated by

Ryobi Integrated Report 2024

in the United States to expand sales of mid- to high-end door closers. We are also enhancing
consumers in that market. There are countries in Asia where Japanese door manufacturers
are making inroads, so we will leverage the track record and sales techniques that we haveD-1200 overhead door closers foroverseas markets

cultivated domestically to strengthen our sales initiatives for office buildings.

Ryobi Integrated Report 2024

36

Value creation story

Ryobi’s challenge
Our strengths

Printing Equipment BusinessBroad domestic customer base
Sales network covering more than 170 countries● Wide variety of products from small to large format to meet ourcustomers’ needs

Lightening the workload for printing factories

Contribute to the creation of acolorful and prosperous society byproviding products and services
that meet customer needs

●

●

●

●

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

Our efforts in providing products and services that meet customer needs

Katsushi Hirokawa
President
RYOBI MHI Graphic Technology Ltd.

There is a global demand for improved productivity and cost effectiveness in offset printing presses, along with an increasing need forprinting presses that can handle a wide range of applications in a single device, from multi-page jobs to posters and multi-up printing

Domestic/Overseas sales ratio and sales ratio byproduct (Fiscal year ended December 31, 2023)

Sales composition ratio

Printing Equipment
Business

8.5%(24.1 billion yen)

Consolidated net
sales for fiscal year
ended December 31,
2023

Domestic/Overseas
sales ratio

282.7

billion yen

Domestic

55%

Overseas45%

for packages. Even now, in relation to standard paper sizes around the world, printing presses that can comfortably handle 1,020 mm
formats are the mainstream, and Ryobi has introduced the new A1-plus size RMGT 970 model. This model can fully cover the 636 × 939
mm paper size, which is popular in the current market. It also enables double-sided printing on A1-plus size paper, and is compatible
with the thicker 650 × 950 mm size used in package printing. Amid the demand for energy conservation to reduce environmental impact,
the RMGT 970 can cut power consumption by around 34% compared with the devices for 1,020 mm paper available to date. Its
compact design also enables it to be installed in aspace that is around 30% smaller, and even plantsthat may have given up on installation due to a lack ofSales ratio
by product

Sheet-fed offset printing presses

71%

Services, other29%

space can now accommodate a printing press forpaper sizes of B1 and above.
Note: Power and space reduction ratios are based on in-houseresearch by RMGT.

Financial results for 2023 andforecast for 2024
Sales in 2023 were 24.1 billion yen (up 3% year-on-year)
thanks to an increase in both domestic and overseas
sales. Despite efforts to improve productivity, operating
income totaled 1.1 billion yen (down 25% year-on-year)
due to factors such as the impact of sharp rises in raw
material prices and increased labor costs.
In 2024, we expect sales to increase both domesticallyand overseas, with sales forecast to be 26.3 billion yen (up
9% year-on-year), which will have a positive effect on
operating income. However, due to factors such as theongoing impact of soaring raw material prices and theincreased cost of exhibiting at trade shows, we expect
operating income to be 0.5 billion yen (down 56%
year-on-year).

Net sales(Unit: billions of yen)

RMGT 970 model

Operating income(Unit: billions of yen)

23.4

24.1

Overseas

Overseas

10.7

10.8

There is also a demand for improved productivity in the market for printed packaging, which is expected to remain strong, and in

26.3

pursuit of this demand, Ryobi has introduced the RMGT 10 Series LX model. This model realizes improved productivity through itsdelivery shutter—which provides continuous operation by allowing delivery pile changing to be undertaken without interruption toOverseas

12.9

printing—and

1.5
Domestic

12.7
2022

Domestic

13.3
2023

Domestic

13.4

2024
Forecast

2022

automatic

non-stop

feeder.

Thanks to features such as the retractable

1.1
2023

coating unit that enables varnish preparation

0.5
2024
Forecast

duringprinting

and

the

fully

automatic

simultaneous plate changer, this model also
facilitates reduced preparation times. Goingforward, we will continue to work on productdevelopment in line with a variety of customer
needs.

RMGT 10 Series LX model

To assist printing companies in developing smart factories, we are supporting the creation of
workflows from pre- to post-printing processes in a network that interlinks the processes

Business environment awarenessBecause of the transition to digital media, the trend toward a long-term decline in the printing of publications such as magazines andbooks, and in commercial printing business such as fliers, advertising mail, and pamphlets is forecast to continue. However, printingpresses installed prior to the 2008 global financial crisis are reaching the time at which they need to be replaced, and for the time being,
we expect this to boost demand. The market for printed packaging also remains strong. This area involves many requests for printing
with high added value, and requires printing presses that guarantee high quality and speed. In recent years, there has been a
pronounced trend in the printing market for high-mix, small-lot jobs with short deadlines. This places a significant strain on printing
operators, and a decline in the number of skilled workers makes printing quality and productivity hard to maintain. In this context, there
is a greater need for automation and labor-saving, not just in printing presses but also at printing company plants overall.

37

Ryobi Integrated Report 2024

and devices necessary for producing printed materials, thereby realizing the visualization andoptimization of production. For in-process optimization, we are also working on the use of
automated guided vehicles (AGVs) for labor-saving in paper transportation work. In addition,in collaboration with another company, we have developed an automatic paper stacker for
use in conjunction with Ryobi printing presses. Using this device makes it possible toautomatically remove all the craft paper (wrapping paper) in which printing paper is wrapped
and to restack a fresh pile of printing paper. Going forward, we will promote initiatives for theevolution of smart factories at printing companies.
Automated guided vehicle (AGV) Nipper

Ryobi Integrated Report 2024

38

ESG (Environmental, Social, and Governance)
Environmental initiatives・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ p. 41-44
Social initiatives ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ p. 45-48
Governance ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ p. 49-52

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Ryobi Integrated Report 2024

ENVIRONMENTSOCIAL
GOVERNANCE
Ryobi Integrated Report 2024

40

ESG (Environmental, Social, and Governance)

Environmental initiatives

TCFD-related measures

Promoting environmental protection

As people are becoming more aware of increasing climate change and natural disasters being urgent global issues, the importance ofcorporate actions to create a sustainable society to resolve climate change issues is growing by capitalizing on the opportunity of the adoptionof the Paris Agreement by the United Nations.
Ryobi is utilizing the framework of recommendations of the TCFD (Task Force on Climate-related Financial Disclosures) for our
climate-related financial disclosures. We have taken actions to realize theidentified opportunities and perform risk management according to the
TCFD recommendations as we pursue the goals of contributing to achievingcarbon neutrality and the sustainable development of our company.

Basic approach
As the protection of the global environment grows increasingly important, Ryobi prioritizes reducing the environmental
impact of our business activities and safeguarding the environment as one of our most crucial management issues.
Under the Ryobi Group Environmental Policy, the Environmental Preservation Committee at each of our groupcompanies and sites sets targets and strives to conserve energy and resources, reduce waste, and minimize
greenhouse gas emissions. Ryobi has obtained ISO 14001 certification and has established, maintains, and operates
an environmental management system.

Governance
Under the supervision of our Board of Directors, the Ryobi Risk Management Committee
deals with climate change-related risks and, to this end, integrates these risks into
company-wide risks to manage them robustly. Meanwhile, the Corporate Operating
Committees are tasked with opportunity management, including the establishment ofmanagement strategy and management of progress.
The Ryobi Risk Management Committee, chaired by the President and CEO, hasbeen established in accordance with our risk management regulations in order tosupervise and manage risk. The Committee performs tasks such as evaluating andmanaging risks related to climate change and other company-wide risks, as well asplanning responses and monitoring the progress of implemented measures. In addition,
on an annual basis it provides the Board of Directors with a risk report covering
climate-change related risks that Ryobi has identified as particularly important and thestatus of measures taken in response. Rounding out this risk management system, theBoard of Directors provides supervision and advice to the Ryobi Risk Management
Committee while incorporating the input from the latter into business management.
The Corporate Operating Committees meet once a month or more with the President
and CEO serving as the chair of all meetings. Among these, management strategy
planning meetings are held once or more a year and management strategy progressmeetings are held once or more a quarter, both with the participation of members of theBoard of Directors, at which climate-change issues are considered as an importantelement in the comprehensive discussions and decisions made in these meetings.

The Ryobi Group Environmental Policy
Board of Directors

ReportSupervise/Advise

President and CEO
Ryobi Risk
Management
Committee
ReportCooperate

Instruct

Corporate
OperatingCommittees

ReportInstruct

Each Division andGroup Companies
Risk Management

Opportunity
Management

Strategy

Organization

In accordance with the framework advocated for by the TCFD, we identified the risks and opportunities related to climate change among ourdie castings, builders’ hardware, and printing equipment businesses. In order to analyze these risks and opportunities, we have assumed a
2°C scenario and a 1.5°C scenario to make transitional impacts apparent, and a 4°C scenario to make physical impacts apparent, and thenperformed corresponding scenario analyses.

Ryobi has established the Ryobi Environmental
Preservation Committee, chaired by the President
and CEO, to minimize the environmental impact ofour business activities and contribute to thedevelopment of local communities. The Committee
plays a central role in conserving energy andresources, reducing waste, and lowering greenhousegas emissions.

Risk management
Guided by our basic risk management policy, the Ryobi Risk Management Committee identifies climate-related and company-wide risks, including
medium- to long-term risks, that require the involvement of our management, presents response policies, and instructs the applicable departments
and group companies to take appropriate measures. A review of risk identification and evaluation is performed once a year across the entire groupfor the corresponding risks and a report is made to this Committee. If any of the identified major risks poses a critical situation that requires urgent
action, our risk management framework, headed by the crisis task force, is mobilized in accordance with crisis management regulations.

Metrics and targets
1. Metrics for evaluating risks related to carbon tax
We are utilizing the “Scope 1+2 Emissions” as metrics in order to evaluate the risks and opportunities related to carbon tax introduction,
identified as a climate-related risk. One of Ryobi’s materiality issues is addressing climate change, and we aim to achieve carbon neutrality by
2050.

2. Metrics for evaluating risks and opportunities related to transitioning to ZEV and low-carbon vehicles
We are utilizing the “Sales composition ratios of lightweight parts (body and chassis) and electric vehicle parts” in the die castings business as
metrics in order to evaluate risks and opportunities related to the transition to ZEV and low-carbon vehicles, identified as climate related risks.
Note that consolidated net sales of our die castings business are 87.6% out of total sales (fiscal year ended December 31, 2023), making it
an essential business segment for Ryobi.
See Information disclosure based on TCFD recommendations https://www.ryobi-group.co.jp/en/csr/tcfd.html

41

The Ryobi Group will, through the initiatives listed below, strive to avoid and mitigate various risks associated with theoperating environment and work to reduce the environmental impact of its business activities, thereby helping realize
a sustainable society.
1. Identify and counter risks arising from changes in the operating environment.
2. Endeavor to reduce environmental footprints associated with each stage of a product’s life cycle and prevent
environmental pollution attributable to such life cycle. Specifically, the Group will:(1) Work to reduce CO2 emissions.
(2) Conserve energy and resources.
(3) Reduce or recycle industrial waste.
(4) Enforce rigorous measures to prevent environmental pollution.
(5) Reduce environmental footprints associated with procured goods.
(6) Furnish proposals on and otherwise promote environmentally friendly products and services.
3. Comply with environmental laws, regulations, ordinances, and agreements as well as relevant requests frominterested parties.
4. Strive to ensure that the Group’s entire workforce is highly conscious of the need for concerted efforts to improvethe environment, to this end providing all Group members with robust education on the subject and otherwise
helping them raise their environmental awareness.
5. Strive to preserve biodiversity and otherwise give back to regional communities through environmental protection efforts.
6. Constantly endeavor to improve the environmental management system to achieve the goals of initiatives listed
above by formulating environmental targets, executing measures to achieve such targets, and implementing
revisions based on the results of such measures.
7. Ensure that this environmental policy is understood by all Group members and publicly disclosed to external stakeholders.

Ryobi Integrated Report 2024

Ryobi Environmental Preservation Committee
Chairperson
President and CEO, Ryobi Limited
ISO 14001 governing body

Head office
departments

Quality assurance
and research &development
departments

Secretariat

Sales
departments

Production
departments

Groupcompanies

Towards achieving carbon neutrality
Ryobi has made addressing climate change one of ourmaterialities and is committed to achieving carbon
neutrality by 2050. In 2023, our CO2 emissions totaled
330 thousand tonnes, marking a 22.3% reduction from2018 levels. Since measures with significant reduction
effects will not be achieved until 2025 or later, we willcontinue our efforts to reduce CO2 emissions in 2024,
although CO2 emissions will increase due to an increasein production weight. Currently, we use Scope 1 and 2
emissions as an indicator, but we will work on Scope 3 in
the future.

CO2 emissions (Scope 1 and Scope 2) reduction targets
Scope 1

(Unit: 1,000 t-CO2)

Scope 2

500

21%
47%
22%
reduction reduction reduction

400
300
200
100
0

2018
Results

2021
Results

2022
Results

2023
Results

2024
Forecast

2030
TargetRyobi Integrated Report 2024

42

ESG (Environmental, Social, and Governance)

Environmental initiatives
Initiatives

Protection of water resources

When air leaks occur from compressors or other piping equipment, power is wasted. The Hiroshima Plant used aninspection device called an air leak viewer to identify the location of air leaks and carry out repair activities, and was able
to stop leaks up to 110 L/min. As a result, we were able to cut losses of 3,727 kwh/year (1,942 kg-CO2/year) fromcompressor electricity. We will promote this system by expanding it to our group companies in the future. We are also
promoting the visualization of energy consumption and CO2 emissions in the manufacturing process. The display
system is made in-house and is shared among our group companies. This system allows us to monitor CO2 emissions
at every stage of the process, resulting in reduced energy consumption and increased environmental awarenessamong all employees.

Ryobi has set a target of reducing water
consumption by 1% from the previous year. We are
striving to achieve this through effective water
management, which includes utilizing recycledindustrial water and promptly addressing waterleaks by monitoring flow meters. We are also
committed to preventing water pollution in rivers andother discharge points by implementing wastewater
treatment facilities and appropriate management ofwastewater quality.

Water intake (Japan)
1,500

1,180

1,152

1,113

1,241

1,238

1,052

1,061

990

1,132

1,119

128

91

123

109

119

2019

2020

2021

2022

2023

1,000
500
0

(Unit: thousand m3)

Tap water

Ground water

Manufacturing with environmentally friendly raw materials
Secondary aluminum alloys, the main raw material foraluminum die castings, can be produced with 3% of theCO2 emissions of new aluminum ingots, which are madeby extracting alumina from bauxite ore and electrolyticallyrefining it. It can also be manufactured with 13% of theCO2 emissions of steel. Most of the raw materials used in
automobiles are composed of iron, which can be
replaced with secondary aluminum alloys to reduce CO2
emissions. 95.3% of the raw materials for aluminum die
casting produced by Ryobi are secondary aluminumalloys.

CO2 emissions per unit of raw material production
10

9.24

(Unit: t-CO2/tonne)

8
6
4

2.3

2
0

New aluminum
ingotsIron

0.31
Secondaryaluminum alloys

Promotion of industrial waste reduction and recycling
Ryobi has set a target of maintaining awaste recycling rate of at least 99%. We areworking to reduce the amount of waste
sent to landfills through rigorous waste
separation. The amount of hazardous
waste generated in Japan in fiscal 2023
was 19.9 tonnes, and the waste recycling
rate was 99.6%.

Amount of waste (Japan)
2019

2020

2021

(Unit: tonnes)

2022

2023

18,426.8 12,364.9 15,731.0 14,692.7 19,408.0

Amount of waste

18,326.3 12,260.3 15,605.1 14,613.7 19,338.0

Waste recycled
Non-recyclable waste generated

100.5

104.6

125.9

79.0

70.0

Hazardous waste generated

47.8

44.0

35.6

17.8

19.9

Prevention of air pollution
Hydroelectric power generation by Ikuno Co.
Ikuno Co., a Ryobi Group company that manufactures secondary aluminum alloys, uses hydroelectric power
generation to provide 40 to 50% of the electricity used by the company, harnessing that power from the river that runs
near the plant. This use of clean energy helps reduce CO2 emissions.

Power-transmission line
Hydraulicsteel pipe

Power plant

Ichikawa River

HeadracechannelRyobi is working to reduce emissions of hazardous
substances into the atmosphere by switching fromheavy oil to LNG or other fuels. In fiscal 2023,
domestic emissions of volatile organic compounds(VOCs) were 5.4 tonnes.
In compliance with the Air Pollution Control Law,nitrogen oxide (NOx) and sulfur oxide (SOx)concentrations are measured regularly to confirm
their safety relative to air pollution, but the total annual
amount of NOx and SOx is not tabulated.

VOC emissions (Japan)
108(Unit: tonnes)

7.6

6

4.7

5.8

5.1

5.4

2021

2022

2023

4
2
0

2019

2020

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

Plant

Measures to preserve biodiversity

Dam

Plastic waste discharged into marine environments
via rivers and other waterways is having a serious
impact on ecosystems. Ryobi is engaged in cleanupsof rivers and seashores near our plants and otheractivities that help promote biodiversity, starting withthose areas closest to us. About 20 employees
participated in a beach cleanup at the Shizuoka Plant
and collected a large amount of trash.

Seashore clean-up activity

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44

ESG (Environmental, Social, and Governance)

Social initiatives
Ryobi promotes the effective use of diverse human resources, the creation of an environment in which employees canfully demonstrate their abilities, and the development of a safe, healthy, and energetic workplace for the benefit of all
employees.
We are also working to sustain and strengthen good relationships with our business partners and local communities.

Personnel strategy
Basic approach
We regard a safe, sound, dynamic, and comfortable workplace as the foundation for sustainable growth. The basic
policy of our personnel strategy is to ensure that our employees are sound in mind and body and are able to maximize
their individual talents and abilities, thereby enhancing our corporate value. This is based on our corporate philosophyof “create a sound and dynamic corporation through technology, trust and challenge.” We aim to be an indispensable
presence in society by creating and providing original, high-quality products and services that meet the needs of ourcustomers and society. This approach is intended to encourage employees and others involved with Ryobi to become
Ryobi fans. To fulfill the basic policy of our personnel strategy, we will continue to enhance our personnel development
and work engagement.

Enhancing personnel development●

Enhancing work engagement
In aiming to create a company where employees are sound in mind and body, and are able to maximize their individual
talents and abilities, and work with enthusiasm, we view work engagement as a crucial indicator. Defined as thepsychological state where employees feel positive and fulfilled related to their work; they are energized and motivatedfrom work (dynamism), feel pride and fulfillment in their work (dedication), and are deeply absorbed in their work
(involvement). We began measuring the work engagement score in 2023. The results for fiscal 2023 were 47.4* (p. 12).
We are working on formulating and implementing action plans to make improvements to the score.
* Results of engagement survey (number of respondents: 1,613, response rate: 98.4%)

Promoting diversity, equity, and inclusion
Basic approach
Promoting diversity, equity and inclusion is an essential initiative for achieving sustainable growth. Under the Management
Mission in our corporate philosophy to “value the trust and goodwill of society, and strive to become a strong, dynamic
organization that reflects the originality and creativity of individual employees,” Ryobi aims to create an environment inwhich employees with a range of qualities and abilities can make the most of their attributes and strengths.

Concrete initiatives

Training programs
Ryobi Limited mainly conducts training by job rank as well as selective training. The purpose of the rank-based
training is to improve job performance skills and role recognition common to all levels of employees, from new hires
to managers. Selective training provides educational opportunities for employees with high motivation to grow andplay an active role in the company. We have set a target of 100% participation in various rank-based training
programs, but the result for fiscal 2023 was 75%. We will continue to strive to achieve a 100% training participation
rate in order to strengthen personnel development.

Basic training

Selective training

Rank-based training

Management
Diversity related
development courses

Education before entering company

Second life seminar

New employee training ●Legal training: Basic courses●Safety and health: Safety education ●Personnel: Mental health training

Study abroad program in Japan

Follow-up training for new employees

3rd year regularmeeting

Study abroad programYoung
employee level

Training for young employees(3rd to 5th years)

Language classes

Training for mid-career employees(7th to 10th years)

Private foreign language lessons

TWI training*3
Training for new supervisors

Area-specific training

Self-confidence andcommunication training

Diversityrelated
training

Mid-career employee training

Mid-career level

Management skills
improvement training

Pre-assignment cross-cultural adaptation training

Practical
management training

In-house seminars(Self-development)

Correspondence courses

Diversity
leader training

Language preparation
for management
Self-study programwith dispatched
instructors
Training for overseas staff

Basic management
training

Career design training

Management level

Bright career
training

RMS training*1
BBS training*2

Overseas support (self-development)

Inspection by selected overseas groups
TOEIC
TOEIC
TOEIC
Cross-cultural adaptation training

Languageclasses

Language classes in Japan (training)Childcare support
In accordance with the revision of the Child Care and Family Care Leave
Act effective October 1, 2022, Ryobi Limited has revised our childbirth andchildcare system and we have introduced childcare leave at birth for male
employees (a maximum of four weeks during the first eight weeks of thechild’s life). To encourage male employees to take childcare leave, which iscurrently less common than among female employees, we are
implementing measures to foster understanding across the organization.
This includes sending messages from top management to managers topromote awareness among supervisors and colleagues, not just those
directly utilizing the system. In addition to system revisions, we will work tocreate an environment in which employees can work with peace of mind as
they raise their children.

Self-development support
We encourage and support employees to develop a range of skills to pursue their dreams, and provide subsidies
for correspondence courses, incentives to acquire qualifications specified by the company, and language classes(English and Chinese) taught by native instructors.

45

Ryobi Integrated Report 2024

100%
80%

100% 100% 100% 100% 100%

60%

45%

40%
20%
0%

21%

Men

3%

2%

2%

2019

2020

2021

2022

2023

Promotion of women’s career advancement
With the aim of creating a workplace where women can play an active role, Ryobi Limited has set the following targets for the
recruitment and promotion of women by 2024, and we are working to provide training for the career development of female
employees and to promote awareness among managers, and to expand the assignment of women to sales andmanufacturing departments. In the builders’ hardware business, sales roles have traditionally been held primarily by men.
However, we have recently increased the number of women in these positions. These women are building strong, trusting
relationships with the purchasing departments of housing and building materials manufacturers, as well as with factory
customers, and are increasingly becoming the face of Ryobi.

Indicators and targets＊1 Relationship Management Skills ＊2 Business Behavior Survey ＊3 Training Within Industry●

Childcare leave usage rate
Women

Targets
Percentage of women hired as new
graduates

30% or more per year

Number of female managers

7 or more

Percentage of female employees inmanagerial positions
Percentage of female employees inmanagerial and supervisory positions

Results Results Results Results Resultsfor 2019 for 2020 for 2021 for 2022 for 2023
23%

27%

21%

32%

29%

3

3

5

6

8

6.9% or more

4%

4%

6%

7%

9%

18% or more

11%

14%

14%

15%

16%

Ryobi Integrated Report 2024

46

ESG (Environmental, Social, and Governance)

Social initiatives

Respect for human rights

Work support for people with disabilities
Ryobi Limited has a placement system that enables individuals withdisabilities* to work in a lively and fulfilling manner, tailored to their
specific needs. We hire new graduates from special needs schools, andafter they join the company, their workplace supervisor works closely
together with a disability counselor to check their work situation and thedegree of growth of the individual. In addition, regular interviews are held
during the first three years of employment to assess problems andprovide appropriate support, leading to a more rewarding and fulfilling
life. As of the end of December 2023, the employment rate was 2.8%,
above the legal employment rate of 2.3%.

Basic approach

Employment rate of people with disabilities
3%
2%

2.3%

2.3%

2019

2020

2.5%

2.7%

2.8%

2022

2023

1%
0%

2021

The Ryobi Code of Conduct stipulates that Ryobi will not harass or discriminate against any employee, either within or
outside the company, on the basis of race, creed, nationality, gender, age, religion, physical characteristics, wealth,place of birth, or any other grounds, and will strive to create a sound working environment. We will never tolerateharassment of any kind and we will take decisive measures against it.

Maintaining favorable relationships with suppliers* Qualified persons with disabilities as based on the Act to Facilitate the Employment of Persons with Disabilities

Promotion of occupational safety and health as well as mental
and physical health
Basic approach

Basic approach
The Ryobi Code of Conduct states that one of the key standards of behavior for Ryobi is to establish and maintainsound and favorable relationships with our business partners. In March 2022, we issued a Declaration of Partnership
Building to reiterate and ensure that our workforce is fully aware of the importance of our partnerships.

To cultivate a safety-focused culture at Ryobi, the General Safety and Health Committee, chaired by the President andCEO, spearheads efforts to gather information on safety, health, health promotion, fire prevention, and related issues.
The Committee discusses and implements measures aligned with the company’s basic policy and slogans.

Basic policy

Slogans

We strive to create a safe and healthy workplace for our
employees. To this end, we conduct various activities tofoster a “safety-focused culture” where everyone puts
safety first, and to improve people’s mental andphysical health.
*“Safety-focused culture” is a workplace culture where
the organization and individuals have been cultivated toconsider safety to be the top priority and where theynaturally comply with rules and regulations.

Let’s increase our awareness ofdanger and safety together!
Let’s strive for mental and physicalhealth together!

Promotion of fair business transactions with suppliers
In order to promote fair business transactions, Ryobi conducts anannual business transaction optimization survey of its suppliers.
Based on the opinions we receive from our suppliers, we strive to
make improvements and further strengthen our partnerships with
suppliers.

Active social contributions
Basic approach
Ryobi is actively involved in contributing to our community with the aim of creating a genuinely prosperous society.

Occupational safety and health activities
To eliminate occupational accidents, Ryobi actively identifies thenumber, details, and causes of such incidents. We then implement
preventive measures across the entire group to ensure recurrence is
avoided. In addition, with the aim of preventing occupational accidents,
we conduct risk assessments, and based on their results, we implement
initiatives to promote essential safety, as well as safety and healtheducation by job rank, simulations, and risk prediction training to
improve knowledge of safety and health. In 2023, we held an industrial
accident simulation workshop using virtual reality (VR) technology to
improve employee awareness of hazards, with more than 1,200 people
participating. Participants donned special goggles and stood on asimulator that moved up and down in sync with the screen, experiencing
a simulated industrial accident through VR images. In a post-experience
questionnaire, 93% of employees reported that the experience
effectively heightened their accident awareness. We will continue ourefforts to eliminate occupational accidents.

Initiatives for social contributions●

Supporting local education through outreach classes

As part of a course sponsored by Hiroshima Prefecture, Ryobi employees visited anearby high school and delivered a lecture on the importance of work and thequalities needed by people in society. After the lecture, we received comments fromstudents such as, “I was struck by the importance of having the courage to takeaction.”●Industrial accident simulation

Providing learning opportunities

Ryobi Limited employees visit nearby nursery schools to offer children opportunities
to experience nature. They hold learning sessions on the importance of nature andorganize activities such as releasing young fish into the wild.
●

Outreach lecture

Support for community welfare

Ryobi employees bring aluminum cans from their homes and other locations and sellthem to aluminum recyclers. The proceeds are donated to the Ryobi Social
Contribution Foundation, a non-profit organization (NPO), for use in donating goods
to social welfare corporations, subsidizing their activities, and so on. In 2023, we
donated approximately 770,000 yen.

Releasing fish

VR image

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48

ESG (Environmental, Social, and Governance)

GovernanceCorporate governanceCompensation of directors and corporate auditors

Basic approach
To ensure Ryobi’s growth and development while fulfilling our social responsibilities rooted in our corporate philosophy, we believe it is essentialthat our stakeholders—including customers, shareholders, investors, business partners, employees, and local communities—have a positive
experience with Ryobi through our corporate activities. In order to achieve this, we are working to further improve the efficiency and thesoundness of our management. We also strive for prompt and accurate information disclosure to enhance management transparency.

Organization chart
Our Board of Directors, chaired by the President and CEO, serves to make major corporate decisions and supervise the execution of operations, while
the corporate operating committees, attended by corporate officers, mainly serve to assess the progress of operations. Both types of meetings are heldat least once a month. To serve as an advisory body to the Board of Directors, we have also established the Nomination and Compensation Advisory
Committee, in which independent outside officers constitute the majority. The Committee reviews both the appointment and dismissal of directors andcorporate officers, as well as succession plans for the CEO and other officers. It reports its findings to the Board of Directors in a timely manner. It alsodeliberates on the compensation of directors and corporate auditors. These results are also reported back to the Board of Directors. The Personnel andOrganization Committee is responsible for HR matters. These include the assignment and development of human resources, excluding directors andcorporate officers, as well as the optimization of organizational functions. At Ryobi, we consider compliance to be the observance of laws, social norms,
internal regulations, business standards, and other rules that govern our corporate activities. We are committed to maintaining strict compliance andraising awareness of corporate ethics. As a way to further promote compliance, we have established the Ryobi Compliance Committee, which has set
out a Charter of Corporate Behavior and Code of Conduct, etc. to ensure observance of the laws, fairness, and high ethical standards in our corporate
activities. Our Ryobi CSR Promotion Committee and the departments and committees responsible for environmental conservation, social contribution,compliance, information disclosure, and the like work together across the board to promote CSR initiatives.

・Compensation structure
Compensation for directors (excluding outside directors) consists of base compensation and performance-based compensation that varies
depending on business performance. Performance-based compensation is based on company-wide profitability indicators and performancetargets set for the company as a whole or for each area under management, with the main goal of achieving medium- to long-term objectives.
Compensation for outside directors, standing corporate auditors, and outside corporate auditors consists solely of base compensation inaccordance with their roles. The base compensation follows certain criteria based on the position. Performance-based compensation consistsof (a) bonuses that reflect company-wide profitability indicators (performance-based pay) and (b) bonuses that reflect the degree ofachievement of targets across the entire company or in the areas under management of each director (excluding outside directors)(non-deductible bonuses), with a standard payment ratio of 7:3.
(a) Bonuses that reflect company-wide profitability indicators (performance-based pay)
The amount to be paid for these is determined based on the following formula:(Method for calculating performance-based pay)
Formula: Standard amount of performance-based pay by position (Table 1) × Profit ratio (Table 2)

Table 1_Standard amount of performancebased pay by position

Position

AmountPresident and CEO

18.2 million yen

Director and Corporate
Executive Officer

9.8 million yen

Director and Corporate Officer

4.9 million yen

Table 2_Profit ratio(*1)
Return on
assets(*2)

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

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

2.1 × percentage of operating income 3.0 × percentage of operating incometarget achieved(*3) - 1.9
target achieved(*3) - 0.55

5% or more
3% or more
but lessthan 5%

100% or more of operating incometarget achieved

No payment

1.75 × percentage of operating income 2.5 × percentage of operating incometarget achieved(*3) - 0.375
target achieved(*3) - 1.5

Less than 3%

1.4 × percentage of operating income 2.0 × percentage of operating incometarget achieved(*3) - 1.1
target achieved(*3) - 0.2*1: The profit ratio is determined by the formula for calculating the return on total assets.
*2: Return on assets = Net income attributable to owners of the parent ÷ consolidated total assets*3: Percentage of operating income target achieved = consolidated operating income ÷ consolidated operating income forecast (as stated in the summary of financial statements for the previous fiscal year) (Consolidated
operating income for the current fiscal year was 12,214 million yen and consolidated operating income forecast was 7,500 million yen.)*4: Operating income (absolute amount) is used to evaluate profitability, and return on assets (ROA) is used to evaluate the balance between assets and revenues.

General Meeting of Shareholders
Appoint / Dismiss
Nomination and Compensation
Advisory Committee
Personnel andOrganization Committee
Ryobi CSR Promotion
Committee

Consult
AdviseBoard of Directors

Report(Seven Directors,
four of whom areoutside directors)

ReportRyobi Compliance
Committee
Ryobi Risk
Management Committee

Appoint / Dismiss

Audit

ReportBoard of Corporate
Auditors

Cooperate

Appoint / Dismiss(b) Bonuses that reflect the degree of achievement of targets across the entire company or in the areas under management of each director (excluding outside directors):
For each director (excluding outside directors), Ryobi sets performance targets for the entire company or for the director’s area of responsibility based mostly on achievement of medium- to long-term goals. The bonuses
are determined according to how many targets are met. We do not give compensation directly linked to medium- to long-term business results or stock compensation such as stock options, but we use these bonuses toprovide incentives to directors (excluding outside directors) to achieve medium- to long-term business results.

Independent
Auditors(Three Corporate
Auditors, two of whom
are outside auditors)

Appoint /Supervise・Determination of directors’ compensation
Ryobi Limited has established the Nomination and Compensation Advisory Committee as an advisory body to the Board of Directors to ensure
fairness, objectivity, and transparency with respect to directors’ compensation under the system of a company with a board of corporate
auditors. This committee deliberates on such compensation and the results are reported back to the Board of Directors. The Board of Directors
then determines the compensation based on these results.

ReportPresident and CEO

Instruct

Corporate Operating Committees
Cooperate
ReportBusiness Audit OfficeInstructInternal audit

Cooperate

Evaluation of the effectiveness of the Board of Directors

Accounting audit

Each Division andGroup Companies

Skills matrix for directors and corporate auditors
The expertise of the directors andcorporate auditors of Ryobi
Limited is shown on the right.
Please note that this skills matrix
does not present the complete
expertise of each person, butrather up to four items that areespecially expected of each
person.

Knowledge /Experience49

Ryobi Integrated Report 2024

Directors
Internal Directors
Akira
UrakamiKazuhiko
Fujii

Hideki
TanifujiCorporate Management

○

○

○

Global Business

○

○

○

Marketing○

Satoshi
Ohoka

Masahiko
Ikaga

Mami Ito○○○

Standing
Yoichi Arai

Non-Standing

TakashiSuzukiTakashi
Hatagawa

○

○
○

○

Takashi
Hirano

○

○
○

○

○
○

○

Corporate Auditors
Outside Directors○○

Technology
Finance & Accounting
HR Development

Notes(1) The performance-based pay is as stipulated in Article 34, Paragraph 1, Item 3 of the Corporation Tax Act, and is payable to directors who are executive officers as stipulated in the same item. Outside directors andcorporate auditors are not included.
(2) The “indicators on profits of the business year” as stipulated in Article 34, Paragraph 1, Item 3 (a) of the Corporation Tax Act shall be consolidated operating income based on the Annual Securities Report.
(3) The “defined amount” stipulated in Article 34, Paragraph 1, Item 3 (a) (1) of the Corporation Tax Act regarding the maximum amount of performance-based pay to be paid is 420 million yen.

○

○

○

Risk Management, Corporate
Governance & Compliance

○

○

○

Qualifications, etc.

Academic
expertCPA
Corporate
manager

Corporate
manager○○○

LawyerCorporate
manager

LawyerRyobi Limited conducts an annual evaluation of the・The agenda for Board meetings is set appropriately. Effective
effectiveness of its Board of Directors with the aim oforientation and training are provided to newly appointed
enhancing the effectiveness of the Board and increasing
directors and officers, and on-going efforts are being made after
its corporate value. In FY2023, based on advice fromtheir appointment.
external organizations, we conducted a survey that・Appropriate venues have been established outside of theevaluated the composition and operation of the Board of
meetings of the Board of Directors for discussion andmonitoring of business strategies and medium-term
Directors, business and management strategies,
management plans.
corporate ethics and risk management, performance
・The internal control system is properly structured and operated,monitoring and evaluation/compensation of management,
and the whistle-blowing system is also functioning effectively.
and dialogue with shareholders. The survey results were・Efforts are being made to enhance communication withanalyzed, evaluated, and discussed by the Board of
shareholders at the General Meeting of Shareholders, and the
Directors. The outcomes of these analyses andBoard of Directors regularly receives reports on the content ofevaluations regarding the effectiveness of the Board of
the dialogue with shareholders and other stakeholders.
Directors are as follows:
Based on the above, our Board of Directors has confirmed that it is being appropriately managed and it is generally effective. As identified
from the survey results, key challenges for improving the effectiveness of the Board include formulating policies and promoting initiatives toenhance capital profitability and stock price, overseeing sustainability and IT strategies, and supervising critical management talent. Moving
forward, we will continue to work on these areas to further enhance and maintain the effectiveness of the Board of Directors.
Ryobi Integrated Report 2024

50

ESG (Environmental, Social, and Governance)

GovernanceCompliance

Risk management

Basic approach

Basic approach

At Ryobi, we believe that to sustainably earn trust from society, it is crucial to establish a framework that consistently
promotes ethical conduct. This includes adhering to laws and ethical standards, and refusing to tolerate actions that
violate them when identified. Therefore, Ryobi has established the Ryobi Charter of Corporate Behavior (see page 4) asa set of universal rules that we must adhere to in our business activities. Additionally, we have defined the Ryobi Codeof Conduct to provide clear standards for each executive and employee in their daily tasks, aiming to raise awarenessand ensure widespread understanding and compliance.

Organization
We have established a system to promote compliance, centered on the Ryobi Compliance Committee, and have set
up a compliance suggestion desk.

Ryobi recognizes that for a company to sustainably create value, it is essential to accurately identify potential risks that
may impede operations, accurately assess their impact, and proactively implement measures to prevent crises andmitigate losses in the event that a crisis should occur.

Organization
The Ryobi Risk Management Committee, chaired by the President and CEO, has been established under the risk
management regulations to oversee and manage Ryobi’s risks. The Ryobi Risk Management Committee identifies
important risks in which management should be involved in accordance with the basic risk management policy, andinstructs the responsible departments and group companies on how to deal with such risks by presenting a response
policy. Among the identified major risks, critical situations that require urgent action are handled by a promotion systemcentering on the crisis task force in accordance with the crisis management regulations.

Compliance suggestion desk
Concrete initiatives

Ryobi Compliance Committee・Responding to natural disasters and accidents

Compliancesuggestions

Ryobi’s compliance promotion
organization
Compliance representative
Compliance promotion officer
Employees

Each group company
Compliance committee

Compliancesuggestions

Promotion organizationfor each group company
Employees
External parties

To mitigate the impact of natural disasters and accidents on
our business operations, we work to reduce risk throughmeasures such as the development of a crisis management
system and a business continuity plan (BCP). Moreover, we
reinforce our buildings and conduct periodic drills to
prepare against natural disasters and accidents. In addition
to these efforts, we also maintain a means for emergency
communication and stockpile food and emergency
supplies.

Implementation and promotion of compliance
Ryobi conducts training by job rank related to compliance,
as well as training by law on specific topics, such as power
harassment. In rank-based training, education focuses on
the contents of the Ryobi Code of Conduct, which
includes standards for the prevention of bribery and otherforms of corruption, and is used to expand awareness ofcompliance.
In addition, as a tool for instilling compliance, we
distribute to employees a Compliance booklet that
includes the Ryobi Charter of Corporate Behavior and theRyobi Code of Conduct, as well as a “Compliance Card,”
which shows action checkpoints.

Consultation and whistleblower desk

Evacuation drill for natural disasters

・Ensuring information security

Regarding information security, we recognize the importance of electronic information and the significant legal andsocial responsibilities associated with handling it. To ensure the proper use and secure handling of electronic
information assets, we developed internal regulations, provide security education to employees, conduct drills
surrounding targeted email attacks, and sustain our commitment to enhancing literacy in information security.
Moreover, as measures to prevent cyber-attacks, infection with malware, and information leaks, we arestrengthening network traffic monitoring and building a system that prohibits unmanaged PCs, smartphones, tablet
terminals, and other devices from connecting to our internal networks.
Additionally, in order to improve the level of security throughout the supply chain, including partner companies, we
support the promotion of cyber security measures at each company in line with our Declaration of Partnership Building.
Specifically, we are promoting cyber security awareness that transcends the boundaries of the Ryobi Group by
presenting actual cases of malware infection incidents, holding briefings on basic cyber security measures, andproviding support for the introduction of security measures.

Ryobi has set up a compliance suggestion desk, an internal and external (lawyer) consultation service, as awhistleblower system to accept compliance issues related to harassment, bribery, and other corruption-related issues,and has built a system that allows anonymous reporting. The system is available not only to Ryobi employees but also
to our business partners.

51

Ryobi Integrated Report 2024

Ryobi Integrated Report 202452

10-year financial highlights
Unit: millions of yen
Fiscal year ended
March 31, 2014

Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2018

Fiscal year ended
December 31, 2018

Fiscal year ended
December 31, 2019

Fiscal year ended
December 31, 2020

Fiscal year ended
December 31, 2021

Fiscal year ended
December 31, 2022

Fiscal year ended
December 31, 2023

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

227,163
9,122
8,399
3,809
13,934

254,508
12,832
12,132
9,305
4,014

241,251
12,62412,013
8,348
6,944

247,192
13,212
13,0307,844
10,007

216,187
13,57913,965
8,588
3,172

220,519
8,495
8,734
4,913
5,700

170,973(1,789)(35)(697)(2,451)

198,073(1,524)4(4,397)
6,131

249,521
6,969
7,791
4,784
12,215

282,693
12,214
13,861
10,11519,04696,433244,976
85,357

107,403
267,854
86,503

110,107265,197
81,881

115,428
262,869
74,161

123,796
272,743
70,331

125,521268,982
61,912

129,575
263,179
61,908125,930
258,660
72,475

131,717
279,42273,769143,723
300,285
74,358160,721318,839
70,1952,828.69
127.6535.0

3,144.44
117.6740.0

3,201.77
287.4745.0

3,342.96
257.9050.0

3,585.22
242.3560.0

3,605.47
265.3270.0

3,723.34
151.7970.0

3,619.16(21.54)0.0

3,797.69(135.87)
20.0

4,154.04
147.8045.0

4,674.39
312.51
80.0

37.4
4.9
12.3
3.2
0.93
27.4

38.0
3.9
15.0
3.3
0.85
34.0

39.1
9.1
7.7
4.6
0.79
15.7

41.2
7.9
9.4
4.5
0.69
19.4

42.5
7.0
11.6
4.9
0.61
24.8

43.4
7.4
9.9
5.2
0.53
26.4

45.8
4.1
12.9
3.3
0.51
46.1

45.3
(0.6)
−
(0.0)
0.62
−

44.0
(3.7)
−
0.0
0.60
−

44.8
3.7
7.8
2.7
0.55
30.4

47.5
7.1
8.5
4.5
0.46
25.6

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

18,331(15,019)(4,876)
3,312
16,60922,784(14,817)(4,456)
7,967
19,85018,552(15,142)(6,660)3,410
16,17023,558(11,427)(6,496)
12,131
21,931

24,664(17,547)(9,139)
7,117
19,63230,326(26,278)(2,268)4,048
21,356

11,795(17,567)
9,718(5,772)
25,405

14,900(12,162)(1,936)
2,738
27,388

16,787(15,860)(2,856)926
26,09926,005(17,432)(8,593)
8,573
26,401

16,22813,141

15,592
14,26916,243
15,725

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

24,83915,37017,392
16,402

13,07017,24018,64618,327

13,89618,489154,480
6,250
175,041

173,329
6,672
193,066

198,809
10,534
192,307

186,377
9,761
186,479

196,377
10,561
206,225

188,403
12,580207,661

185,938
7,659
202,898

145,869(1,612)
202,516

169,898(1,449)214,262

215,726
5,232
234,174

247,551
10,916
246,865

25,9601,103
25,866

26,236812
27,347

27,076430
26,94926,174
1,481
25,963

23,113
1,466
10,403

7,885
372
10,362

10,712697
10,292

9,406
799
9,931

9,574
362
10,606

10,145226
11,283

10,823
172
11,99719,027305
23,797

27,3801,625
24,70628,383
1,848
24,75828,4591,360
25,15027,473
1,177
24,53819,704603
24,96923,661
144
23,017

15,513(944)
19,996

18,393(417)
22,24023,417
1,506
23,02824,094
1,136
25,733

119,278
30,27324,08326,06240.3

126,019
34,23829,741
37,16444.5

128,161
42,752
38,13145,46349.6

125,131
35,562
38,19142,36648.1

127,13135,84743,71340,50048.6

97,74633,21640,89744,326
54.8

116,571
29,85234,30139,79447.1

91,08817,242
34,26428,37746.7

103,649
20,81438,60535,00347.7

114,726
36,95145,002
52,84054.0

124,786
50,17847,56460,163
55.9

Business results
Net sales
Operating income (loss)
Ordinary income (loss)
Net income (loss) attributable to owners of parent
Comprehensive income
Financial position
Net assets
Total assets
Interest-bearing debt
Per share information
Net assets per share (yen)Basic income per share (yen)Dividends per share (yen)Financial indicators
Equity ratio (%)
Return on equity (%)
Price-earnings ratio (times)
Ordinary income-to-total asset ratio (%)
Debt equity ratio (times)
Payout ratio (consolidated) (%)
Cash flow
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Free cash flow
Cash and cash equivalents at end of period
Capital expenditures, depreciation and amortization
Capital expenditures
Depreciation and amortization
Segment information
Die castings
Net sales
Operating income (loss)
Total assets
Power tools and builders’ hardware
Net sales
Operating income (loss)
Total assets
Printing equipment
Net sales
Operating income (loss)
Total assets
Sales by region
Japan
U.S.A.
China
Other
Overseas sales ratio (%)

Note 1) Effective October 1, 2017, five shares of common stock were consolidated into one share. Net assets per share, basic income per share, and dividends per share arecalculated on the assumption that this reverse stock split was implemented at the beginning of the fiscal year ended March 31, 2014.
Note 2) The power tools and builders’ hardware business transferred its power tool operations to Kyocera Corporation in the fiscal year ended March 31, 2018. Therefore, thefigures for the power tools and builders’ hardware business were replaced with those of the builders’ hardware business after the fiscal year ended December 31, 2018.
Note 3) Effective from the fiscal year ended December 31, 2018, the closing date was changed from March 31 to December 31. As a result of this change, in the fiscal year ended
December 31, 2018, we had irregular account periods from April 1, 2018 to December 31, 2018 for domestic consolidated companies, and from January 1, 2018 to
December 31, 2018 for overseas consolidated companies.

53

Ryobi Integrated Report 2024

Note 4) Price-earnings ratio and payout ratio (consolidated) for the fiscal years ended December 31, 2020 and 2021 are not shown due to loss attributable to owners of parent.
Note 5) Sales by region are based on the locations of customers and are classified by country or region.

Ryobi Integrated Report 2024

54

Consolidated financial statements
Consolidated Balance Sheet
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Additional paid in capital
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

55

Ryobi Integrated Report 2024

Unit: millions of yen
December 31, 2022

December 31, 2023

27,33958,337650
18,104
16,82920,5263,586(32)145,341

27,64164,298650
21,47017,245
21,2334,144(37)
156,646

32,71656,196
15,77813,084
6,183
123,959

33,88659,75015,242
8,406
6,162
123,447

2,803
2,803

2,619
2,619

14,826
6,439
4,053
2,923
(63)
28,179154,943
300,285

19,182
8,235
4,445
4,325
(63)
36,125
162,193
318,839

46,54639,942
6,545
879
549
36
20,199114,698

50,912
36,625
9,553
1,300
645
62
18,815
117,915

27,869
3,242
510
7,183
3,056
41,863
156,561

24,016
5,366
510
7,044
3,265
40,202
158,118

18,472
21,892
76,118(346)
116,136

18,472
22,29484,292(347)
124,711

5,649
811
11,675
186
18,323
9,263
143,723
300,2858,394
811
16,2991,084
26,5909,418
160,721318,839

Consolidated Statement of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Rental income
Foreign exchange gains
Dividend income of insurance
Share of profit of entities accounted for using equity method
Usage income of trademark
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on abandonment of inventories
Depreciation and amortization
Share of loss of entities accounted for using equity method
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on disposal of non-current assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Loss on valuation of investment securities
Loss on sale of investment securities
Compensation expenses
Total extraordinary losses
Net income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent

Unit: millions of yen

Fiscal year ended
December 31, 2022

Fiscal year ended
December 31, 2023

249,521
221,275
28,245
21,276
6,969

282,693248,199
34,494
22,28012,214

123
413
156
321
41
−
342
889
2,289

141
465
152
893
147
154
417
965
3,338

1,025
44
13
225
156
1,466
7,791

1,424
−
13
−
252
1,690
13,861

23
−
23

66
3
69

170
−
4
250
430
855
6,960
1,345
374
1,720
5,240
455
4,784

197
512
−
−
−
710
13,220
2,221
304
2,525
10,695579
10,115

Consolidated Statement of Comprehensive Income

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

Unit: millions of yen

Fiscal year ended
December 31, 2022

Fiscal year ended
December 31, 2023

5,240

10,695

137
−
7,251
(549)
136
6,975
12,215

2,824
0
4,519
902
103
8,350
19,046

11,769445

18,383663

Ryobi Integrated Report 2024

56

Consolidated financial statements
Consolidated Statement of Changes in Equity

Consolidated Statements of Cash Flows

Fiscal year ended December 31, 2022

Unit: millions of yen

Fiscal year ended
December 31, 2022

Shareholders’ equity
Common stock
Balance at beginning of period
Amount of cumulative impact due to changes inaccounting policy
Balance at beginning of period reflecting changes inaccounting policy
Changes during period
Dividends of surplus
Net income attributable to owners of parent
Purchase of treasury stock
Change in ownership interest of parent due totransactions with non-controlling interests
Net changes in items other than shareholders’ equity
Total changes during period
Balance at end of period

Additional paid in
Retained earnings
capitalTreasury stock

71,587(346)

21,875

18,472

Total
shareholders’equity111,588718
72,30521,875

18,472

718(346)

112,306

(0)

(971)
4,784
(0)

(971)
4,784
17

17
(0)
(346)

3,813
76,11817
21,892−
18,472

3,830
116,136

Accumulated other comprehensive income
NonValuation difference Revaluation Foreign currency Remeasurements Total accumulated controllingon available-for-sale reserve fortranslationof defined benefit other comprehensive interests
securities
land
adjustment
plansincomeBalance at beginning of period
Amount of cumulative impact due to changes inaccounting policy
Balance at beginning of period reflecting changes inaccounting policy
Changes during period
Dividends of surplus
Net income attributable to owners of parent
Purchase of treasury stock
Change in ownership interest of parent due totransactions with non-controlling interests
Net changes in items other than shareholders’ equity
Total changes during period
Balance at end of period

5,503

811

4,288

734

11,337

8,790

Total net
assets131,717
718

5,503

811

4,288

734

11,337

8,790

132,435
(971)
4,784
(0)

146
146
5,649

−
−
811

7,387
7,387
11,675

(547)
(547)
186

6,985
6,985
18,323

472
472
9,263

Fiscal year ended December 31, 2023

17
7,458
11,288
143,723

Unit: millions of yen
Shareholders’ equity
Common stock

Balance at beginning of period
Amount of cumulative impact due to changes inaccounting policy
Balance at beginning of period reflecting changes inaccounting policy
Changes during period
Dividends of surplus
Net income attributable to owners of parent
Purchase of treasury stock
Change in ownership interest of parent due totransactions with non-controlling interests
Net changes in items other than shareholders’ equity
Total changes during period
Balance at end of period

Additional paid in
Retained earnings
capital21,892

18,472

Treasury stock(346)

76,118

Total
shareholders’equity116,136−

21,892

18,472

76,118(346)

116,136(0)(1,942)
10,115(0)(1,942)
10,115401
401
22,294−
18,472

401
(0)
(347)

8,173
84,292

Accumulated other comprehensive income
NonValuation difference Revaluation Foreign currency Remeasurements Total accumulated controllingon available-for-sale reserve fortranslationof defined benefit other comprehensive interests
securities
land
adjustment
plansincomeBalance at beginning of period
Amount of cumulative impact due to changes inaccounting policy
Balance at beginning of period reflecting changes inaccounting policy
Changes during period
Dividends of surplus
Net income attributable to owners of parent
Purchase of treasury stock
Change in ownership interest of parent due totransactions with non-controlling interests
Net changes in items other than shareholders’ equity
Total changes during period
Balance at end of period

57

Ryobi Integrated Report 2024

5,649

811

11,675

186

18,323

9,263

8,574
124,711

Unit: millions of yen

Cash flows from operating activities
Net income before income taxes
Depreciation
Impairment losses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Subsidy income
Share of loss (profit) of entities accounted for using equity method
Loss (gain) on disposal of non-current assets
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in trade payables
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Subsidies received
Income taxes refund (paid)
Net cash provided by operating activities
Cash flows from investing activities
Purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of securities
Proceeds from sale of securities
Purchase of investment securities
Proceeds from sale of investment securities
Payments into time deposits
Proceeds from withdrawal of time deposits
Other, net
Net cash used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Redemption of bonds
Purchase of treasury stock
Dividends paid
Other, net
Net cash used in financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Fiscal year ended
December 31, 2023

6,960
18,327
−
2
161
(319)
(537)
1,025
(66)
225
147
250
4
(12,038)(1,538)
(14)
4,074
1,038
246
17,947600(1,011)
86(835)
16,787

13,22018,489
512
4
96
(195)
(606)
1,424
(77)
(154)
132
(3)
−
(4,363)(2,768)
(423)
3,637
451
(1,032)
28,343553(1,198)77(1,769)26,005(16,879)76(1,300)
1,300
(11)
750
(2,404)
2,404
202(15,860)(16,322)429(1,300)
1,300
(18)
4
(2,404)2,404(1,526)(17,432)

2,039
11,110(13,365)(1,500)
(0)
(973)
(167)
(2,856)640(1,289)27,38826,099(4,871)
5,320(6,768)−(0)(1,941)(332)(8,593)322
301
26,09926,401

Total net
assets143,723
−

5,649

811

11,675

186

18,323

9,263

143,723(1,942)
10,115
(0)
401

2,745
2,745
8,394

0
0
811

4,623
4,623
16,299

898
898
1,084

8,267
8,267
26,590

155
155
9,418

8,423
16,997
160,721
Ryobi Integrated Report 2024

58

Organization profile
Corporate information (as of December 31, 2023)

Changes in share price over the past 5 years (January 2019 to December 2023)(Unit: yen)Company name

RYOBI LIMITED

Location of Head Office

762 Mesaki-cho, Fuchu-shi, Hiroshima-ken 726-8628, Japan

Phone number+81-847-41-1111

Established

December 16, 1943

Capital18,472 million yen

Major products

・Die cast products

5,000

4,000

3,000

・Builders’ hardware (door closers, hinges, architectural hardware, etc.)
・Printing equipment (offset printing presses, peripherals, etc.)
2,000

Fiscal year

From January 1 to December 31

Stock exchange listing

Tokyo Stock Exchange: Prime Market

Stock code

5851

Transfer agent

Mitsubishi UFJ Trust and Banking Corporation

Independent auditor

Deloitte Touche Tohmatsu LLC

1,000

0
2019

2020

2022

Management members (as of May 31, 2024)

Stock information (as of December 31, 2023)

Directors Asterisk (*) indicates outside director

Number of sharesauthorized

100,000 thousand shares

Number of sharesissuedAkira Urakami

Satoshi Ohoka

Masahiko Ikaga

Mami Ito

Kazuhiko Fujii

President and CEO

Director*

Director*

Director*

Director andCorporate Officer

Number ofshareholders

32,646 thousand shares
14,047(increased by 4,289 since the end of the previous fiscal year)

Share breakdown by owner
Individuals and others(including 277 thousand
shares of treasury stock)

13,589 shareholders
9,274 thousand shares
28.41%
Hideki Tanifuji

Yoichi Arai

Director andCorporate Officer

Director*

Corporate Officers
Taichi Shimizu

Hiromu Arihiro

Koji Urakami

Tadashi Takeguchi

Otherinstitutions
214 shareholders
2,507 thousand shares
7.68%

Osamu Suemori

Takashi Suzuki

Takashi Hatagawa

Takashi Hirano

Standing Corporate
AuditorCorporate Auditor*

Corporate Auditor*

Ryobi Integrated Report 2024

Financial institutions
33 shareholders
14,048 thousand shares
43.03%

14,047

shareholders

Corporate Auditors Asterisk (*) indicates outside auditor

59

2021

Foreign investors
161 shareholders
5,960 thousand shares
18.26%

32,646thousand shares

Securities
company

50 shareholders
854 thousand shares
2.62%

2023

Principal shareholders
Investment in
Ryobi Limited

Shareholders

Number of Investment
shares held
ratio
(in thousands)(%)

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

3,136

9.69

Ryokokai Shareholding Association

2,095

6.47

Meiji Yasuda Life Insurance Company

1,860

5.74

Custody Bank of Japan, Ltd.
(trust account)

1,642

5.07

The Dai-ichi Life Insurance Company,
Limited

1,613

4.98

CREDIT SUISSE AG HONG KONG
TRUST A/C CLIENT

1,367

4.22

Nippon Life Insurance Company

1,248

3.85

The Urakami Scholarship Foundation

1,162

3.58

MUFG Bank, Ltd.

1,043

3.22

700

2.16

Sumitomo Mitsui Trust Bank, Limited(Note) Ryobi Limited holds 277 thousand shares of treasury stock.
Investment ratio above is calculated excluding treasury stock.

Ryobi Integrated Report 2024

60

Organization profile
RYOBI LIMITED

Network❸❶❹❶ Head Office❷ Tokyo Branch❸ Toranomon Office❹ Osaka Branch
Sales Offices (7 locations across Japan)
a Sapporob Sendaic Hamamatsud Nagoyae Toyama
f Hiroshima
g Fukuoka❺ Hiroshima Plant❻ Hiroshima East Plant❼ Shizuoka Plant❽ Kikugawa Plant

❶⑦

❷

❺

❻

❺❼

❷

❼

❻

a

Domestic group companies❶❺❻①②⑥⑦⑧⑨① RYOBI MIRASAKA CO.

be

Die casting manufacturing② RYOBI MITSUGI CO.
g

Plastic molding and die casting manufacturing

③
❼

c❽

❷❸

Secondary aluminum alloy bullion manufacturing
and sales⑤ HOEI INDUSTRIES CO., LTD.

❸ RYOBI ALUMINIUM CASTING (UK), LIMITEDDie casting manufacturing and sales

Aluminum forged product manufacturing and sales⑥ RYOBI MHI GRAPHIC TECHNOLOGY LTD.

❶

❷

❸

Printing equipment and related productmanufacturing and sales⑦ ASAHI SANGYO CO.

①

②

③

⑥

Insurance agency❻ RYOBI DIE CASTING (THAILAND) CO., LTD.
Die casting manufacturing and sales⑧ RYOBI LAND DEVELOPMENT LTD.

❼ RYOBI (SHANGHAI) SALES, LTD.
Die casting and die sales⑨ RYOBI LIFE SERVICES LTD.

Ryobi Integrated Report 2024

⑤d

④ IKUNO CO.

❷ RDCM, S. DE R.L. DE C.V.
Die casting manufacturing

61❹

Cast aluminum and die casting manufacturing
and sales❶ RYOBI DIE CASTING (USA), INC.
Die casting manufacturing and sales❺ RYOBI DIE CASTING CHANGZHOU CO., LTD.
Die casting manufacturing and sales④③ TOKYO LIGHT ALLOY CO., LTD.

Overseas group companies❹ RYOBI DIE CASTING DALIAN CO., LTD.
Die casting and die manufacturing and salesfGolf course management

❹

❺

❻

Nursery school management

Ryobi Integrated Report 2024

62