Ryobi : Consolidated Financial Results for the Six Months Ended June 30, 2020

Consolidated Financial Results

for the Six Months Ended June 30, 2020 (Japanese GAAP)

August 6, 2020

Company Name: RYOBI LIMITED

Stock Code: 5851

(URL:https://www.ryobi-group.co.jp/)

Stock Exchange Listing: Tokyo

Representative: Akira Urakami, President and CEO

Contact: Hiromu Arihiro, Corporate Officer

Divisional General Manager of Corporate Planning Division

General Manager Finance Department

Phone: [phone]

Scheduled date to submit the Quarterly Securities Report: August 6, 2020

Availability of supplementary briefing material on quarterly results : Yes

Presentation Meeting : Not Scheduled

(Any amount less than one million is disregarded.)

1. Consolidated Financial Results for the Six Months Ended June 30, 2020 (From January 1, 2020 to June 30, 2020)

(1) Consolidated Results of Operations

(% indicates changes from the previous fiscal year.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Six months ended

77,700

△30.7

△3,551

－

△2,775

－

△1,668

－

June 30, 2020

Six months ended

112,099

－

4,805

－

4,813

－

3,683

－

June 30, 2019

(Note) Comprehensive income: Six months ended June 30, 2020: △4,703 million yen [－%]

Six months ended June 30, 2019: 2,440 million yen [－%]

Profit per share

Fully diluted profit

per share

Yen

Six months ended

△51.55

－

June 30, 2020

Six months ended

113.79

－

June 30, 2019

• The Company changed its fiscal year-end from March 31 to December 31 as of the fiscal year ended December 31, 2018. The increase- decrease rates from the previous fiscal year were not presented because the period covered by six months ended June 30, 2019 (from January 1, 2019 to June 30, 2019) and the period covered by the six months ended June 30, 2018 (Domestic: from April 1,2018 to
  June 30, 2018, Overseas: from January 1, 2018 to June 30, 2018), which would be used for comparison, are different.

(2) Consolidated Financial Position

	Total assets	Net assets	Shareholders'
				equity ratio
	Millions of yen	Millions of yen	%
As of June 30, 2020	253,684	123,678		45.3
As of December 31, 2019	263,179	129,575		45.8
(Reference) Shareholders' Equity: As of June 30, 2020: 114,851 million yen
	As of December 31, 2019: 120,520 million yen

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2. Dividends

		Cash dividends per share
	End of 1Q	End of 2Q	End of 3Q		Year-end		Annual
	Yen	Yen	Yen		Yen		Yen
FY December 2019	－	35.00	－	35.00	70.00
FY December 2020	－	0.00
FY December 2020			－		－		－
(Forecast)

(Reference) Correction from the dividend forecast, which is published in the most recent: No

* With regard to the forecast of the Year-end cash dividends for FY December 2020, we remain undecided.

3.Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2020 (From January 1, 2020 to December 31, 2020)

Net sales

Operating profit

Ordinary profit

Profit attributable

Profit per share

to owners of parent

Millions of yen

%

Millions of yen

% Millions of yen

%

Millions of yen

%

Yen

Full year

－

－

－

－

－

－

－

－

－

(Reference) Correction from the consolidated forecast, which is published in the most recent: No

• With respect to the consolidated full year forecast, we are currently unable to calculate reasonably the influence of the new coronavirus pandemic. Therefore, the announcement of the forecast remains undetermined.

＊Notes

1. Significant changes of companies during the fiscal year ended June 30, 2020 (changes in specific companies involving changes in the scope of consolidation): Not applicable
2. Adoption of specific accounting treatments to the preparation of consolidated quarterly financial statements: Not applicable
3. Changes in accounting policies, changes in accounting estimates and restatements
4. 1. Changes in accounting policies due to the revision of accounting standards: Not applicable
   2. Changes in accounting policies other than 1): Not applicable
   3. Changes in accounting estimates: Not applicable
   4. Restatements: Not applicable
5. Shares issued (common stock)

1) Shares issued	As of June 30, 2020	32,646,143	As of December 31, 2019	32,646,143
(including treasury stock)
2)	Treasury stock	As of June 30, 2020	277,173	As of December 31, 2019	277,173
3)	Average shares
Six months ended June		Six months ended June
outstanding during the	32,368,970	32,369,042
30, 2020	30, 2019
period

• These consolidated quarterly financial results are outside the scope of the quarterly review.
• Explanation for the appropriate use of performance forecasts and other special notes: (Cautionary note on forward-looking statement)
  The statements regarding forecast of financial results in this report are based on the information that is available, as well as estimates, assumptions and projections that are believed to be reasonable at the time of publication, and they are not meant to be a commitment by the Company. Therefore, there might be cases in which actual results differ from forecast values.

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Comparative Balance Sheets (Consolidated)

				(Millions of yen)
			2019/12/31	2020/6/30
		Assets
		Current assets
		Cash and deposits	22,518	24,362
		Notes and accounts receivable - trade	41,197	33,715
		Securities	768	766
		Merchandise and finished goods	17,006	17,266
		Work in process	13,853	12,839
		Raw materials and supplies	14,294	14,247
		Other	2,951	3,171
		Allowance for doubtful accounts	△47	△40
		Total current assets	112,543	106,328
		Non-current assets
		Property, plant and equipment
		Buildings and structures, net	33,375	32,451
		Machinery, equipment and vehicles, net	52,112	51,228
		Land	17,850	17,826
		Construction in progress	12,692	14,570
		Other, net	5,576	5,447
		Total property, plant and equipment	121,607	121,524
		Intangible assets
		Other	3,716	3,708
		Total intangible assets	3,716	3,708
		Investments and other assets
		Investment securities	18,217	13,258
		Other	7,125	8,907
		Allowance for doubtful accounts	△62	△63
		Total investments and other assets	25,280	22,103
		Total non-current assets	150,604	147,335
		Deferred assets
		Bond issuance cost	31	19
		Total deferred assets	31	19
		Total assets	263,179	253,684

- 3 -

Comparative Balance Sheets (Consolidated)

				(Millions of yen)
			2019/12/31	2020/6/30
		Liabilities
		Current liabilities
		Notes and accounts payable - trade	35,673	23,117
		Short-term borrowings	23,427	28,615
		Current portion of bonds	2,300	5,100
		Current portion of long-term borrowings	6,788	3,706
		Income taxes payable	804	339
		Provision for bonuses	576	596
		Provision for bonuses for directors (and other officers)	12	－
		Other	20,390	15,855
		Total current liabilities	89,972	77,330
		Non-current liabilities
		Bonds payable	6,100	3,300
		Long-term borrowings	23,292	36,631
		Retirement benefit liability	8,032	7,841
		Other	6,206	4,902
		Total non-current liabilities	43,631	52,675
		Total liabilities	133,604	130,006
		Net assets
		Shareholders' equity
		Share capital	18,472	18,472
		Capital surplus	21,854	21,859
		Retained earnings	78,139	75,337
		Treasury shares	△346	△346
		Total shareholders' equity	118,120	115,323
		Accumulated other comprehensive income
		Valuation difference on available-for-sale securities	5,443	3,997
		Revaluation reserve for land	809	810
		Foreign currency translation adjustment	△2,626	△4,281
		Remeasurements of defined benefit plans	△1,226	△997
		Total accumulated other comprehensive income	2,400	△471
		Non-controlling interests	9,054	8,826
		Total net assets	129,575	123,678
		Total liabilities and net assets	263,179	253,684

- 4 -

Comparative Statements of Income (Consolidated)

				(Millions of yen)
			from:2019/1/1	from:2020/1/1
			to:2019/6/30	to:2020/6/30
		Net sales	112,099	77,700
		Cost of sales	96,480	71,877
		Gross profit	15,618	5,822
		Selling, general and administrative expenses	10,813	9,374
		Operating profit (loss)	4,805	△3,551
		Non-operating income
		Interest income	50	55
		Dividend income	204	189
		Rental income	165	112
		Share of profit of entities accounted for using equity method	83	35
		Usage income of trademark	133	108
		Subsidy income	－	742
		Other	195	227
		Total non-operating income	832	1,470
		Non-operating expenses
		Interest expenses	538	500
		Foreign exchange losses	175	53
		Depreciation	22	18
		Other	87	121
		Total non-operating expenses	823	694
		Ordinary profit (loss)	4,813	△2,775
		Extraordinary income
		Gain on disposal of non-current assets	53	1
		Gain on sales of investment securities	28	－
		Total extraordinary income	82	1
		Extraordinary losses
		Loss on disposal of non-current assets	56	15
		Loss on valuation of investment securities	－	76
		Loss on sales of investment securities	－	0
		Loss on sales of shares of subsidiaries and associates	－	78
		Total extraordinary losses	56	170
		Profit (loss) before income taxes	4,839	△2,943
		Income taxes	1,011	△1,186
		Profit (loss)	3,827	△1,757
		Profit (loss) attributable to non-controlling interests	144	△88
		Profit (loss) attributable to owners of parent	3,683	△1,668

- 5 -

Comparative Statements of Comprehensive Income (Consolidated)

	(Millions of yen)
from: 2019/1/1	from: 2020/1/1
to: 2019/6/30	to: 2020/6/30

Profit (loss)

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 to

Comprehensive income attributable to owners of parent

Comprehensive income attributable to non-controlling interests

3,827 △1,757

115 △1,493

20

△1,634 △1,598

212229

△83△84

△1,387 △2,946

2,440 △4,703

2,273	△4,540
166	△162

- 6 -

Comparative Statements of Cash Flows (Consolidated)

	(Millions of yen)
from: 2019/1/1	from: 2020/1/1
to: 2019/6/30	to: 2020/6/30

Cash flows from operating activities

Profit (loss) before income taxes

Depreciation

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

Share of loss (profit) of entities accounted for using equity method

Loss (gain) on sales of investment securities

Loss (gain) on sales of shares of subsidiaries and associates Loss (gain) on disposal of non-current assets

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

Subtotal

Interest and dividends received

Interest paid

Income taxes (paid) refund

Net cash provided by (used in) operating activities

Cash flows from investing activities

Purchase of property, plant and equipment

Proceeds from sales of property, plant and equipment Purchase of securities

Proceeds from sales of securities

Purchase of investment securities

Proceeds from sales of investment securities

Proceeds from sales of shares of subsidiaries and associates Payments for acquisition of businesses

Payments into time deposits

Proceeds from withdrawal of time deposits

Other, net

Net cash provided by (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 Purchase of treasury shares

Dividends paid

Other, net

Net cash provided by (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

4,839	△2,943
7,399	8,225
△2	△6
△23	20
△238	23
△254	△244
538	500
△83	△35
△28	0
－	78
2	13
12,580	6,995
△963	253

148 △685

△8,012 △12,332

1,448 △1,444

△218 △169

17,131 △1,751

278289

△547 △479

△470 △354

16,392 △2,295

△10,869	△12,583
150	32
△680	△680
680	680
△6	△16
45	0

• 2,630
  △1,221－
  △1,214 △1,214
  1,214 1,214
  △226 △887

△12,127 △10,825

1,719 5,711

2,447 15,406

△3,730 △4,645

△0－

△1,132 △1,132

△94 △143

△789 15,197

△148 △234

3,326 1,841

19,632 21,356

22,958 23,198

- 7 -

4. Segment Information

Industry Segment Information

(Six months ended June 30, 2019)					(Millions of yen)
	Die	Builders'	Printing	Other	Eliminations /		Consolidated
	Castings	Hardware	Equipment	Corporate
Net Sales:
Unaffiliated customers	95,264	5,087	11,653	93	－	112,099
Intersegment	66	－	－	31	(98)		－
Total	95,330	5,087	11,653	125	(98)	112,099
Operating income	4,421	245	139	△1	0		4,805
(Six months ended June 30, 2020)					(Millions of yen)
	Die	Builders'	Printing	Other	Eliminations /		Consolidated
	Castings	Hardware	Equipment	Corporate
Net Sales:
Unaffiliated customers	64,648	4,672	8,302	76	－	77,700
Intersegment	36	－	－	27	(63)		－
Total	64,684	4,672	8,302	104	(63)	77,700
Operating income	△3,509	372	△402	△12	0		△3,551

* All amounts have been rounded down to the nearest million yen.

- 8 -