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Operating Results and Forecast

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Consolidated Operating Results for the First Half of the Fiscal Year Ending March 31, 2018

Overview


In the first half of the fiscal year ending March 31, 2018, which extends from April to September 2017, the Japanese economy continued to gradually improve due mainly to an upturn in corporate earnings and employment as well as recovery in consumer spending. Overseas, the U.S. economy recovered steadily, while the European economy saw modest but constant improvement. Moreover, there were signs of recovery in the Chinese economy thanks to such factors as government-led economic policies.

Under these circumstances, the Ryobi Group has been promoting proactive marketing and the development of new products to meet user needs while taking various measures to reduce costs, improve productivity and streamline business operations.

As a result, the Company's performance in the first half included decreases in net sales and operating income compared with the same period of the previous fiscal year. However, profit attributable to owners of the parent increased year on year.


Consolidated Earnings
Six months ended
September 30, 2016
Six months ended
September 30, 2017
Change
Millions of
yen
% of
net sales
Millions of
yen
% of
net sales
Millions of
yen
%
Net sales 121,491 119,148 -2,343 -1.9%
Operating income 6,149 5.1% 6,101 5.1% -47 -0.8%
Profit attributable to
owners of parent
4,319 3.6% 4,503 3.8% 183 4.3%


Performance by Industry Segment


The Die Castings Business recorded decreases in revenues and earnings compared with the same period of the previous fiscal year. Revenues grew in Japan and China as orders remained firm in these regions. However, decreases in revenues in the United States and the United Kingdom outpaced the aforementioned positive factors, causing segment revenues to decline. Earnings also decreased due to a fall in profit from U.S. operations.

The Power Tools and Builders' Hardware Business recorded increases in revenues and earnings compared with the same period of the previous fiscal year. Despite the stagnant performance of power tools in Japan, a rise in exports to such markets as South Africa helped increase revenues from these products. Revenues from builders' hardware also grew thanks to increases in domestic sales and exports. Segment profit rose as the depreciation of the Chinese yuan to a value less than that recorded in the same period of the previous fiscal year helped decrease the cost of sales ratio for both power tools and builders' hardware.

The Printing Equipment Business saw a decrease in revenues and an increase in earnings. Although domestic sales grew due to an increase in orders for large-sized printing presses, export sales were affected by a substantial decrease in shipments to China and elsewhere in Asia despite growth in those bound for Europe and the United States, causing revenues to decrease. However, earnings rose thanks mainly to the positive effect of cutting costs and expenses and a decrease in marketing expenses.


Net Sales by Industry Segment
Six months ended
September 30, 2016
Six months ended
September 30, 2017
Change
Millions of
yen
% of
consolidated
net sales
Millions of
yen
% of
consolidated
net sales
Millions of
yen
%
Die Castings 94,784 78.0% 92,192 77.4% -2,592 -2.7%
Power Tools and
Builders' Hardware
13,358 11.0% 13,804 11.6% 446 3.3%
Printing Equipment 13,200 10.9% 13,001 10.9% -199 -1.5%

Operating Income by Industry Segment
Six months ended
September 30, 2016
Six months ended
September 30, 2017
Change
Millions of
yen
% of
segment
net sales
Millions of
yen
% of
segment
net sales
Millions of
yen
%
Die Castings 5,181 5.5% 4,491 4.9% -689 -13.3%
Power Tools and
Builders' Hardware
641 4.8% 1,041 7.5% 399 62.3%
Printing Equipment 291 2.2% 526 4.1% 235 80.8%

Consolidated Financial Statements for the First Half of Fiscal 2018 < PDF 66KB >



Forecasts for the Fiscal Year Ending March 31, 2018

(As of October 31, 2017)

With regard to performance forecasts for fiscal 2018, the forecast values announced on July 31, 2017, for the full year have been revised as follows.

The Company's net sales forecast was downwardly revised, taking into account the effect of a share transfer agreement signed by Ryobi and Kyocera Corporation on October 31, 2017 with regard to the transfer of the former's power tools business to the latter. Although the impact of said share transfer agreement on profit is expected to be insignificant, the Company's profit forecast was also downwardly revised as earnings from the Die Castings Business for the first half of fiscal 2018 fell short of expectations.


Consolidated Performance Forecasts for the Full Fiscal Year Ending March 31, 2018
Net sales Operating
income
Profit attributable
to owners of
parent
Earnings
per share
Millions of yen Yen
Announced July 31, 2017 247,000 13,600 8,400 * 259.50
Announced October 31, 2017 244,000 12,800 8,300 * 256.41
Change -3,000
(-1.2%)
-800
(-5.9%)
-100
(-1.2%)

* The forecast for earnings per share takes into consideration the effect of the reverse share split implemented on October 1, 2017.



Operating Results for Fiscal 2017