Latest Results and Forecasts

Consolidated Operating Results for the Fiscal Year Ended December 31, 2021

Overview

In the fiscal year ended December 31, 2021, the Ryobi Group has seen modest yet overall recovery in the business environment, benefitting from progress in the normalization of economic activities that reflects such factors as the increasing percentage of the population vaccinated against the novel coronavirus (COVID-19) and ongoing recovery in overseas economies. However, the outlook remains unclear due to resurgences of the COVID-19 pandemic, reduced automobile production on the back of global semiconductor shortages, surging raw material prices, and other factors.

Against this backdrop, the Ryobi Group actively pursued web-based business negotiations and other such marketing activities while working to maintain its product supply structure in a way that ensures solid countermeasures against the spread of COVID-19. At the same time, the Group implemented measures aimed at achieving cost reductions, productivity improvements, and higher operational efficiency.

As a result, the Company's full-year performance included an increase in net sales compared with the previous fiscal year. On the other hand, profit attributable to owners of the parent declined due to the recording of an impairment loss of ¥4,134 million.

Consolidated Earnings

  Fiscal year ended December 31, 2020 Fiscal year ended December 31, 2021 Change
Millions of yen % of net sales Millions of yen % of net sales Millions of yen %
Net sales 170,973 198,073 27,099 15.9%
Operating income -1,789 -1.0% -1,524 -0.8% 265
Profit attributable to owners of parent -697 -0.4% -4,397 -2.2% -3,700

Performance by Industry Segment

The Die Castings Business recorded an increase in revenues compared with the previous fiscal year, along with a reduction in operating loss. In addition to the impact of global semiconductor shortages, automobile production was negatively affected by the scarcity of automobile component supply induced by resurgences of the COVID-19 pandemic in such regions as Southeast Asia. However, revenues grew in all regions thanks to a recovery in automobile sales accompanying improved business confidence and progress in the COVID-19 vaccination rate. Moreover, the upward revision in Ryobi's product prices, which reflected rising raw material (aluminum) prices, contributed to growth in revenues. On the earnings front, although the increase in revenues led to an improvement in profit, ongoing surges in raw material prices inhibited the Group’s ability to achieve profitability in this segment as the subsequent effect of upward revisions in sales prices has yet to offset the higher raw material prices.

The Builders' Hardware Business recorded an increase in revenues and a decrease in earnings compared with the previous fiscal year. Segment sales increased slightly both in Japan and overseas. On the earnings front, despite efforts to cut costs and expenses, operating income declined due mainly to higher procurement costs caused by the appreciation of the Chinese yuan.

The Printing Equipment Business recorded an increase in revenues compared with the previous fiscal year, leading to an improvement in operating loss. Revenues decreased in Japan, but increased overseas. In Japan, the sales environment remained severe as printing companies became increasingly cautious about undertaking capital investment due mainly to uncertainty over the future. On the other hand, overseas exports, mainly to China and South Korea, were strong, and revenues increased. On the earnings front, growth in revenues and efforts to reduce costs led to improved profitability, helping to curb losses.

Net Sales by Industry Segment

Fiscal year ended December 31, 2020 Fiscal year ended December 31, 2021 Change
Millions of yen % of consolidated net sales Millions of yen % of consolidated net sales Millions of yen %
Die Castings 145,869 85.3% 169,898 85.8% 24,029 16.5%
Builders' Hardware 9,406 5.5% 9,574 4.8% 168 1.8%
Printing Equipment 15,513 9.1% 18,393 9.3% 2,880 18.6%

Operating Income by Industry Segment

  Fiscal year ended December 31, 2020 Fiscal year ended December 31, 2021 Change
Millions of yen % of segment net sales Millions of yen % of segment net sales Millions of yen %
Die Castings -1,612 -1.1% -1,449 -0.9% 163
Builders' Hardware 799 8.5% 362 3.8% -437 -54.7%
Printing Equipment -944 -6.1% -417 -2.3% 527

Consolidated Financial Statements for Fiscal 2021 <PDF 419KB>

Presentation Materials for Fiscal 2021 <PDF 3.87MB>


Forecasts for the Fiscal Year Ending December 31, 2022

As of February 14, 2022

The Ryobi Group expects the Japanese economy to gradually recover going forward despite concerns about the impact of resurgences of the COVID-19 pandemic, the disruption of supply chains worldwide, surges in raw material prices and other negative factors.

Taking the above projection into account, the Group anticipates, as of February 14, 2022, that consolidated operating results for the fiscal year ending December 31, 2022 will include increases in both net sales and profit from a year earlier.

For the purposes of calculation, the Company has set the assumed exchange rates of the Japanese yen against U.S. dollar, GBP, Chinese yuan and Thai baht, at ¥112, ¥150, ¥17.5 and ¥3.4, respectively.

Consolidated Performance Forecast for the Fiscal Year Ending December 31, 2022

  Fiscal year ended December 31, 2021 Fiscal year ending December 31, 2022
(forecast)
Change
Millions of yen % of net sales Millions of yen % of net sales Millions of yen %
Net sales 198,073 240,000 41,926 21.2%
Operating income -1,524 -0.8% 5,300 2.2% 6,824
Profit attributable to owners of parent -4,397 -2.2% 3,800 1.6% 8,197

Performance forecast by industry segment is as follows.

In the Die Castings Business, Ryobi expects segment sales to increase both in Japan and overseas. While automobile production is expected to recover gradually, Ryobi believes that progress in upward revisions of its product prices to align with higher raw material prices will help secure greater revenues. On the earnings front, segment profit is expected to increase on the back of the rise in revenues.

In the Builders’ Hardware Business, Ryobi expects segment sales to remain virtually unchanged in Japan and overseas. On the earnings front, segment profit is expected to decrease due to higher procurement costs under the influence of the appreciation of the Chinese yuan.

In the Printing Equipment Business, Ryobi believes that segment sales will increase in Japan and overseas. In Japan, sales are expected to grow thanks to the positive effect of government subsidies and other factors. Overseas, the Company expects recovery in exports to Europe and the United States. On the earnings front, segment profit is likely to increase due to the expansion of segment sales.

Net Sales Forecast by Industry Segment

Fiscal year ended December 31, 2021 Fiscal year ending December 31, 2022
(forecast)
Change
Millions of yen % of consolidated net sales Millions of yen % of consolidated net sales Millions of yen %
Die Castings 169,898 85.8% 208,100 86.7% 38,201 22.5%
Builders' Hardware 9,574 4.8% 9,400 3.9% -174 -1.8%
Printing Equipment 18,393 9.3% 22,500 9.4% 4,106 22.3%

Operating Income Forecast by Industry Segment

  Fiscal year ended December 31, 2021 Fiscal year ending December 31, 2022
(forecast)
Change
Millions of yen % of segment net sales Millions of yen % of segment net sales Millions of yen %
Die Castings -1,449 -0.9% 4,600 2.2% 6,049
Builders' Hardware 362 3.8% 300 3.2% -62 -17.2%
Printing Equipment -417 -2.3% 400 1.8% 817

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