SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of August, 2002
RICOH COMPANY, LTD.
(Translation of Registrant’s name into English)
15-1, Minami-Aoyama 1-Chome, Minato-ku, Tokyo 107-8544, Japan
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F | X | Form 40-F | __ |
(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes | __ | No | X |
(If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-__.)
SIGNATURE
Pursuant to the Requirements of the Securities Exchange Act of 1934,the registrant has duty caused this report to be signed on its behalf bythe undersigned, thereunto duty authorized.
Ricoh Company, Ltd.
(Registrant)
By: /s/ Zenji Miura
Zenji Miura
Senior Vice President
August 1, 2002
QUARTERLY REPORT
1st Quarter ended June 30, 2002
(Results for the Period from April 1, 2002 to June 30, 2002)
Index
Page
- Financial Highlights
1
- Performance
2
- Consolidated Performance
1.
Consolidated Statements of Income
9
2.
Consolidated Sales by Category
10
3.
Consolidated Balance Sheets
11
4.
Consolidated Statements of Cash Flow
12
5.
Segment Information
13
6.
Significant Accounting Policies (Consolidated)
15
- Appendix
Consolidated Performance Forecast
17
Ricoh Company, Ltd.
* The Company bases the estimates above on information currently available to management, which involves risks and uncertainties that would cause actual results to differ materially from those projected.
Ricoh Company, Ltd. and Consolidated Subsidiaries
Financial Highlights(1st Quarter ended June 30, 2002)
1. Results for the period from April 1, 2002 to June 30, 2002
(1) Operating Results | (Millions of yen) |
Three months ended | Three months ended |
Net sales | 428,271 | 411,963 | |||
(% change from previous period) | 4.0 | 12.2 | |||
Operating income | 35,927 | 31,612 | |||
(% change from previous period) | 13.6 | 20.6 | |||
Income before income taxes | 32,270 | 27,181 | |||
(% change from previous period) | 18.7 | 17.3 | |||
Net income | 19,521 | 14,879 | |||
(% change from previous period) | 31.2 | 17.9 | |||
Net income per share-basic (yen) | 26.85 | 21.47 | |||
Net income per share-diluted (yen) | 26.01 | 19.84 | |||
Return on equity (%) | 3.0 | 2.6 | |||
Income before income taxes on total assets (%) | 1.8 | 1.6 | |||
Income before income taxes on net sales (%) | 7.5 | 6.6 |
Notes: | i. | Equity in earnings of affiliates: ¥831 million (¥382 million in previous period) |
ii. | Some changes have been made in accounting method | |
iii. | Average number of shares outstanding: 727,067,931 shares (693,073,668 shares in previous period) |
(2) Financial Position | (Millions of yen) |
June 30, 2002 | March 31, 2002 |
Total assets | 1,821,949 | 1,832,928 | ||
Shareholders’ equity | 648,343 | 633,020 | ||
Equity ratio (%) | 35.6 | 34.5 | ||
Equity per share (yen) | 891.78 | 870.63 |
Note: Number of shares outstanding as of June 30, 2002: 727,024,532 shares (727,086,738 shares as of March 31, 2002)
(3) Cash Flows | (Millions of yen) |
Three months ended | Three months ended |
Cash flows from operating activities | 54,359 | 16,548 | ||
Cash flows from investing activities | -15,417 | -21,865 | ||
Cash flows from financing activities | -3,791 | -3,123 | ||
Cash and cash equivalents at end of period | 203,062 | 99,668 |
(4) Items relating to the scale of consolidation and the application of the equity method: |
(5) Changes in accounting method, etc.: | Consolidated subsidiaries: 2 additions; 5 removals |
Companies accounted for by the equity method: no change |
Notes: | i. | Consolidated financial statements of the Company and its consolidated subsidiaries have been prepared in conformity with accounting principles generally accepted in the United States of America. |
ii. | Net income per share is calculated based on Statement of Financial Accounting Standards (SFAS) No.128. | |
iii | Ricoh’s first quarter financial statements are unaudited. |
2. Forecast of operating results from April 1, 2002 to March 31, 2003
(Millions of yen) |
Half year ended | Year ended |
Net sales | 855,000 | 1,748,000 | ||
Operating income | 66,000 | 140,000 | ||
Income before income taxes | 59,500 | 126,500 | ||
Net income | 35,000 | 72,500 |
Note: Net income per share (Consolidated) 99.72 yen
In accordance with Japanese regulations, Ricoh has issued forecast for its financial results for the half year ended September 30, 2002 and year ended March 31, 2003. These forecast are forward-looking statements based on a number of assumptions and beliefs in light of information currently available to management and subject risks and uncertainties.
-1-
Performance
(1) Overview
(Three months ended June 30, 2002 and 2001) | (Billions of yen) |
Three months ended | Three months ended | Change |
Domestic sales | 224.8 | 228.7 | -1.7% | |||
Overseas sales | 203.4 | 183.2 | 11.0% | |||
Net sales | 428.2 | 411.9 | 4.0% | |||
Gross profit | 186.4 | 174.0 | 7.2% | |||
Operating income | 35.9 | 31.6 | 13.6% | |||
Income before income taxes | 32.2 | 27.1 | 18.7% | |||
Net income | 19.5 | 14.8 | 31.2% |
Net income per share-basic (yen) | 26.85 | 21.47 | +5.38 | ||
Net income per share-diluted (yen) | 26.01 | 19.84 | +6.17 | ||
Return on equity (%) | 3.0 | 2.6 | +0.4% point | ||
Income before income taxes on total assets (%) | 1.8 | 1.6 | +0.2% point | ||
Income before income taxes on net sales (%) | 7.5 | 6.6 | +0.9% point |
Exchange rate (Yen/US$) | 127.01 | 122.60 | +4.41 | ||
Exchange rate (Yen/EURO) | 116.56 | 107.25 | +9.31 |
Expenditure for plant and equipment | 17.6 | 17.9 | -0.3 | ||
Depreciation for tangible fixed assets | 16.9 | 15.1 | +1.8 | ||
R&D Expenditure | 18.4 | 17.8 | +0.6 |
[Graph]
The graphs are omitted, which show consolidated performance for the three months ended June 30, 2000, 2001, and 2002.
-2-
*Overview
- In the first quarter of fiscal 2003, ended June 30, 2002, Ricoh increased consolidated net sales 4.0%, to ¥428.2 billion. The rise would have been 1.4% without the foreign exchange impact.
- Domestic sales declined 1.7%. This was despite a 27.4% increase in sales of printing systems and reflected sluggish economic conditions in Japan and constrained investment in information technology, which hampered other categories.
In contrast, overseas sales increased 11.0%, as demand for core digital imaging and printing systems remained solid, and contribution from the lower yen. Overseas sales would have been up 5.2% excluding the foreign exchange effect.
- Operating income increased 13.6%. The prime factors here were increased sales of high-value-added core products, notably digital plain-paper copiers (PPCs), multifunctional printers (MFPs), and color printers. Also contributing to this gain were new offerings, the benefits of ongoing cost-cutting efforts, and a weaker yen. On the other income and expenses, the Company suffered a drop in interest and dividend income owing to adverse financial markets, but endeavored to reduce interest expenses. As a result of these factors, income before income taxes, minority interests and equity in earnings of affiliates increased 18.7%.
- Net income therefore increased 31.2%.
*Financial Position
- Management places top priority on ongoing efforts to increase free cash flow and strengthen the Company’s financial position.
- At the end of the first quarter, net cash provided by operating activities was ¥54.3 billion, up ¥37.8 billion from the previous corresponding period. This was due mainly to the net income rise and trade receivables’ collection.
- Net cash used in investing activities was ¥15.4 billion, reflecting expenditures to upgrade production lines for new models and step up product development.
- As a result of the above factors, free cash flow totaled ¥38.9 billion.
- During the period under review, Ricoh endeavored to replace short-term loans with long-term indebtedness while reducing interest-bearing debt. Net cash used in financing activities, including cash dividends paid, was ¥3.7 billion.
- Cash and cash equivalents at term-end were therefore ¥32.8 billion higher than at the close of the previous year-end, at ¥203.0 billion.
- From the first quarter of the year, short-term investment securities, which are available-for-sale at any time, such as Money Management Funds, are included in cash equivalents. The effect of this change was as follows:
( Millions of yen ) | |||
Cash and cash equivalents at term-end | 1Q fiscal 2003 | 1Q fiscal 2002 | Fiscal 2002 |
Under previous accounting policy | 112,949 | 72,886 | 142,508 |
Under new accounting policy | 203,062 | 99,668 | 170,172 |
Change | 90,113 | 26,782 | 27,664 |
-3-
*Consolidated Sales by Category
Imaging Solutions (sales down 5.1%, to ¥219.9 billion)
*Digital Imaging Solutions (sales up 0.7%, to ¥156.2 billion)
In core digital PPCs, the Company reinforced in its lineup from low-end models to high-speed machines. Domestic sales were down owing to lackluster economic conditions, but overseas sales increased on the popularity of digital PPCs.
*Other Imaging Solutions (sales down 16.8%, to ¥63.6 billion)
Lower sales reflected the ongoing trend away from analog PPCs to digital models and MFPs.
Network Input/Output Systems (sales up 26.1%, to ¥110.5 billion)
*Printing Systems (sales up 22.2%, to ¥94.6 billion)
In Japan and abroad, Ricoh kept introducing new products, strengthening sales of printing equipment and printing solutions in response to customer demand for fast, networkable, and color systems. The Company greatly increased sales of MFPs and color printers during the term.
*Other Input/Output Systems (sales up 56.0%, to ¥15.8 billion)
This business benefited from strong shipments in Japan and internationally of new standards DVD drives and media.
Network System Solutions (sales down 3.8%, to ¥46.9 billion)
Ricoh continued to strengthen its useware, document management, and other solutions businesses in response to shifting customer demand away from standalone machines toward networked hardware, software, and services. The sales decline stemmed from reduced purchases of personal computers and servers owing to corporate constraints on information technology spending.
Other Businesses (sales up 15.9%, to ¥50.9 billion)
The higher sales in this category reflected recoveries in the semiconductor and metering equipment businesses, as well as expansion in leasing and other operations.
[Graph]
The graph is omitted, which shows consolidated sales by category for the three months ended Jun 30, 2001 and 2002.
-4-
*Consolidated Sales by Geographic Area
Japan (sales down 1.7%, to ¥224.8 billion)
The domestic economy remained stagnant throughout the term. Nonetheless, Ricoh introduced more products and strengthened marketing to maintain solid sales of MFPs, printers, and other printing solutions, and improved solution business like useware. In contrast, adverse economic conditions dampened sales of analog PPCs, fax machines, personal computers and servers.
The Americas (sales up 5.4%, to ¥84.1 billion)
In increasingly uncertain economic conditions in the United States, the Company improved its sales network, particularly in North America, while endeavoring to increase sales of core digital PPCs, MFPs, and printers.
Europe (sales up 9.3%, to ¥83.2 billion)
With regional economies remaining stable, Ricoh continued to do well with core digital PPCs and MFPs, in which it maintains top market shares of PPCs. Printer sales were also up.
Others (sales up 32.5%, to ¥35.9 billion)
Sales improved significantly on the strength of the trend toward digitally networked offices.
[Graph]
The graph is omitted, which shows consolidated sales by geographic area for the three months ended Jun 30, 2001 and 2002.
-5-
*Segment Information
Business Segments
Office Equipment
Ricoh continued to deliver solid sales of core, high-value-added digital PPCs, MFPs, and printers, with demand soaring overseas. Both sales and operating income increased, partly because of the foreign exchange impact.
Other Businesses
These businesses performed well, reflecting recoveries in demand for semiconductors and metering equipment and growth in such areas as leasing and other operations.
[Graph]
The graphs are omitted, which show business segment information for the three months ended Jun 30, 2001 and 2002.
-6-
Geographic Segments
Japan
Overall sales were up, owing to increased exports in the office equipment business, which offset another decline in domestic office equipment sales.
The Americas
With the U.S. economic situation unclear and competition intensifying, Ricoh expanded sales of digital systems and strategically reinforced major account sales. These efforts increased overall regional sales.
Europe
The Company continued to do well, particularly in digital PPCs and MFPs, leading to a rise in regional sales.
Others
Sales were solid in China and elsewhere in Asia and in Oceania. Ricoh maintained high productivity at its Chinese manufacturing bases. These factors increased regional sales.
[Graph]
The graphs are omitted, which show geographic segment information for the three months ended Jun 30, 2001 and 2002.
-7-
(2) Outlook
A sluggish domestic economy and the yen’s recent appreciation has prompted management to lower the fiscal 2003 net sales projections it announced in May 2002, from ¥1,773.0 billion, to ¥1,748.0 billion. That said, first-quarter earnings were beyond management’s forecasts. Profitability should continue to improve throughout the year. Consequently, management has raised its operating income estimate for fiscal 2003 from ¥136.0 billion, to ¥140.0 billion. It has increased its projection for income before income taxes, minority interests and equity in earnings of affiliates from ¥122.0 billion, to ¥126.5 billion, while raising the net income forecast from ¥67.5 billion, to ¥72.5 billion.
Exchange Rate Assumptions for fiscal 2003
US$1 = ¥118.00 (¥125.10 in previous fiscal year)
Euro1 = ¥115.39 (¥110.60 in previous fiscal year)
(Billions of yen) |
Year ended | Year ended | Change |
Domestic sales | 917.0 | 902.6 | 1.6% | ||||
Overseas sales | 831.0 | 769.6 | 8.0% | ||||
Net sales | 1,748.0 | 1,672.3 | 4.5% | (*1) | |||
Gross profit | 741.8 | 699.9 | 6.0% | ||||
Operating income | 140.0 | 129.6 | 7.9% | ||||
Income before income taxes | 126.5 | 113.9 | 11.0% | ||||
Net income | 72.5 | 61.6 | 17.7% | (*2) |
Notes:
*1…Net sales would be ninth consecutive year of growth.
*2…Net income would be eleventh consecutive year of growth and ninth consecutive year of record high.
* Ricoh bases the estimates above on information currently available to management, which involves risks and uncertainties that would cause actual results to differ materially from those projected.
-8-
1.Consolidated Statements of Income
(Three months ended June 30, 2002 and 2001) | (Millions of yen) |
Three months ended | Three months ended | Change (%) |
Net sales | 428,271 | 411,963 | +16,308 | (4.0) | ||||
Cost of sales | 241,774 | 237,946 | +3,828 | (1.6) | ||||
Percentage of net sales(%) | 56.5 | 57.8 | ||||||
Gross profit | 186,497 | 174,017 | +12,480 | (7.2) | ||||
Percentage of net sales (%) | 43.5 | 42.2 | ||||||
Selling, general and administrative expenses | 150,570 | 142,405 | +8,165 | (5.7) | ||||
Percentage of net sales (%) | 35.1 | 34.5 | ||||||
Operating income | 35,927 | 31,612 | +4,315 | (13.6) | ||||
Percentage of net sales (%) | 8.4 | 7.7 | ||||||
Other (income) expenses: | ||||||||
Interest and dividend income | 963 | 1,138 | -175 | (-15.4) | ||||
Percentage of net sales (%) | 0.2 | 0.3 | ||||||
Interest expense | 1,739 | 2,415 | -676 | (-28.0) | ||||
Percentage of net sales (%) | 0.4 | 0.6 | ||||||
Other, net | 2,881 | 3,154 | -273 | (-8.7) | ||||
Percentage of net sales (%) | 0.7 | 0.8 | ||||||
Income before income taxes, minority interests and Equity in earnings of affiliates | 32,270 | 27,181 | +5,089 | (18.7) | ||||
Percentage of net sales (%) | 6.6 | |||||||
Provision for income taxes | 13,001 | 12,109 | +892 | (7.4) | ||||
Percentage of net sales (%) | 3.0 | 2.9 | ||||||
Minority interests in earnings of subsidiaries | 579 | 575 | +4 | (0.7) | ||||
Percentage of net sales (%) | 0.1 | 0.1 | ||||||
Equity in earnings of affiliates | 831 | 382 | +449 | (117.5) | ||||
Percentage of net sales (%) | 0.2 | 0.0 | ||||||
Net income | 19,521 | 14,879 | +4,642 | (31.2) | ||||
Percentage of net sales (%) | 3.6 |
Reference: Exchange rate (average rate for the corresponding periods)
Three months ended | Three months ended | |||
US$ 1 | ¥127.01 | ¥122.60 | ||
EURO 1 | ¥116.56 | ¥107.25 |
-9-
2.Consolidated Sales by Category
(Three months ended June 30, 2002 and 2001) | (Millions of yen) |
Three months ended | Three months ended | Change (%) | Excluding foreign |
Imaging Solutions: | ||||||||||
Digital Imaging Systems | 156,289 | 155,181 | +1,108 | (0.7) | -3,541 | (-2.3) | ||||
Percentage of net sales (%) | 36.5 | 37.7 | ||||||||
Domestic | 70,950 | 81,244 | -10,294 | (-12.7) | -10,294 | (-12.7) | ||||
Overseas | 85,339 | 73,937 | +11,402 | (15.4) | +6,753 | (9.1) | ||||
Other Imaging Systems | 63,632 | 76,483 | -12,851 | (-16.8) | -15,146 | (-19.8) | ||||
Percentage of net sales (%) | 18.5 | |||||||||
Domestic | 22,406 | 27,937 | -5,531 | (-19.8) | -5,531 | (-19.8) | ||||
Overseas | 41,226 | 48,546 | -7,320 | (-15.1) | -9,615 | (-19.8) | ||||
Total Imaging Solutions | 219,921 | 231,664 | -11,743 | (-5.1) | -18,687 | (-8.1) | ||||
Percentage of net sales (%) | 56.2 | |||||||||
Domestic | 93,356 | 109,181 | -15,825 | (-14.5) | -15,825 | (-14.5) | ||||
Overseas | 126,565 | 122,483 | +4,082 | (3.3) | -2,862 | (-2.3) |
Networking input/output systems: | ||||||||||
Printing Systems | 94,653 | 77,451 | +17,202 | (22.2) | +14,037 | (18.1) | ||||
Percentage of net sales (%) | 18.8 | |||||||||
Domestic | 40,108 | 31,483 | +8,625 | (27.4) | +8,625 | (27.4) | ||||
Overseas | 54,545 | 45,968 | +8,577 | (18.7) | +5,412 | (11.8) | ||||
Other Input/Output Systems | 15,863 | 10,167 | +5,696 | (56.0) | +5,615 | (55.2) | ||||
Percentage of net sales (%) | 2.5 | |||||||||
Domestic | 3,463 | 3,989 | -526 | (-13.2) | -526 | (-13.2) | ||||
Overseas | 12,400 | 6,178 | +6,222 | (100.7) | +6,141 | (99.4) | ||||
Total Networking input/output systems | 110,516 | 87,618 | +22,898 | (26.1) | +19,652 | (22.4) | ||||
Percentage of net sales (%) | 25.8 | 21.3 | ||||||||
Domestic | 43,571 | 35,472 | +8,099 | (22.8) | +8,099 | (22.8) | ||||
Overseas | 66,945 | 52,146 | +14,799 | (28.4) | +11,553 | (22.2) |
Network system solutions | 46,930 | 48,766 | -1,836 | (-3.8) | -1,881 | (-3.9) | ||||
Percentage of net sales (%) | 11.8 | |||||||||
Domestic | 46,285 | 48,365 | -2,080 | (-4.3) | -2,080 | (-4.3) | ||||
Overseas | 645 | 401 | +244 | (60.8) | +199 | (49.6) |
<Office Equipment Total> | 377,367 | 368,048 | +9,319 | (2.5) | -916 | (-0.2) | ||||
Percentage of net sales (%) | 88.1 | 89.3 | ||||||||
Domestic | 183,212 | 193,018 | -9,806 | (-5.1) | -9,806 | (-5.1) | ||||
Overseas | 194,155 | 175,030 | +19,125 | (10.9) | +8,890 | (5.1) |
< Other Businesses > | 50,904 | 43,915 | +6,989 | (15.9) | +6,534 | (14.9) | ||||
Percentage of net sales (%) | 10.7 | |||||||||
Domestic | 41,632 | 35,723 | +5,909 | (16.5) | +5,909 | (16.5) | ||||
Overseas | 9,272 | 8,192 | +1,080 | (13.2) | +625 | (7.6) |
Grand Total | 428,271 | 411,963 | +16,308 | (4.0) | +5,618 | (1.4) | |||||
Percentage of net sales (%) | 100.0 | ||||||||||
Domestic | 224,844 | 228,741 | -3,897 | (-1.7) | -3,897 | (-1.7) | |||||
Percentage of net sales (%) | 55.5 | ||||||||||
Overseas | 203,427 | 183,222 | +20,205 | (11.0) | +9,515 | (5.2) | |||||
Percentage of net sales (%) | 44.5 | ||||||||||
The Americas | 84,171 | 79,890 | +4,281 | (5.4) | +1,426 | (1.8) | |||||
Percentage of net sales (%) | 19.4 | ||||||||||
Europe | 83,260 | 76,169 | +7,091 | (9.3) | +754 | (1.0) | |||||
Percentage of net sales (%) | 18.5 | ||||||||||
Other | 35,996 | 27,163 | +8,833 | (32.5) | +7,335 | (27.0) | |||||
Percentage of net sales (%) | 6.6 |
Each category includes the following products:
Digital Imaging Systems | Digital PPCs, color PPCs, digital duplicators, facsimile machines, related supplies and services |
Other Imaging Systems | Analog PPCs, diazo copiers, and related supplies including thermal paper, and services |
Printing Systems | Multifunctional printers (MFPs), laser printers, related supplies, services and software |
Other Input/Output Systems | Optical discs, systems and scanners |
Network System Solutions | Personal computers, PC servers, network systems, network related software, and service/support |
Other Businesses | Digital cameras, analog cameras, semiconductors |
Reference: Exchange rate (average rate for the corresponding periods)
Three months ended | Three months ended | |||
US$ 1 | ¥127.01 | ¥122.60 | ||
EURO 1 | ¥116.56 | ¥107.25 |
-10-
3.Consolidated Balance Sheets
June 30, 2002 and March 31, 2002
Assets | (Millions of yen) |
June 30, 2002 | March 31, 2002 | Change |
Current Assets | 848,055 | 863,668 | -15,613 | |||
Cash and cash equivalents (*) | 182,650 | +25,016 | ||||
Trade receivables | 423,299 | 442,399 | -19,100 | |||
Marketable securities | 7,662 | 22,935 | -15,273 | |||
Inventories | 157,146 | 162,176 | -5,030 | |||
Other current assets | 52,282 | 53,508 | -1,226 | |||
Fixed Assets | 973,894 | 969,260 | +4,634 | |||
Tangible fixed assets | 250,122 | 259,380 | -9,258 | |||
Finance receivable | 451,974 | 447,829 | +4,145 | |||
Other Investments and other assets | 271,798 | 262,051 | +9,747 |
Total Assets | 1,821,949 | 1,832,928 | -10,979 |
Notes:
Contents of cash and deposits | June 30, 2002 | March 31, 2002 | |||
Cash and cash equivalents (*) | 203,062 | 170,172 | |||
Time deposits | 4,604 | 12,478 |
*…Effective from April 1, 2002, Ricoh changed its policy for definition of cash and cash equivalents on its consolidated balance sheets and consolidated statements of cash flow. Results for prior years are restated. (See 6. Significant Accounting Policies (Consolidated) (6))
Liabilities and Minority Interest | (Millions of yen) |
June 30, 2002 | March 31, 2002 | Change |
Current Liabilities | 627,297 | 665,701 | -38,404 | |||
Trade payable | 264,296 | 277,753 | -13,457 | |||
Short-term borrowings | 199,831 | 228,408 | -28,577 | |||
Other current liabilities | 163,170 | 159,540 | +3,630 | |||
Fixed Liabilities | 495,040 | 483,159 | +11,881 | |||
Long-term indebtedness | 355,005 | 332,995 | +22,010 | |||
Retirement benefit obligation | 113,491 | 119,572 | -6,081 | |||
Other fixed liabilities | 26,544 | 30,592 | -4,048 |
Total Liabilities | 1,122,337 | 1,148,860 | -26,523 |
Minority Interest | 51,269 | 51,048 | +221 |
Shareholders’ Investment | (Millions of yen) |
June 30, 2002 | March 31, 2002 | Change |
Shareholders’ Investment | 648,343 | 633,020 | +15,323 | |||
Common stock | 120,465 | 120,461 | +4 | |||
Additional paid-in capital | 171,632 | 171,628 | +4 | |||
Retained earnings | 400,172 | 385,741 | +14,431 | |||
Accumulated other comprehensive income | -43,333 | -44,376 | +1,043 | |||
Treasury stock at cost | -593 | -434 | -159 |
Total Liabilities and Shareholders’ Investment | 1,821,949 | 1,832,928 | -10,979 |
Notes:
Accumulated other comprehensive income (losses); | June 30, 2002 | March 31, 2002 | Change | ||
Net unrealized holding gains on available-for-sale securities | 9,991 | 10,566 | -575 | ||
Minimum pension liability adjustments | -35,287 | -39,710 | +4,423 | ||
Net unrealized gains (losses) on derivative instruments | -172 | -207 | +35 | ||
Cumulative translation adjustments | -17,865 | -15,025 | -2,840 |
Exchange rate (end of term)
June 30, 2002 | March 31, 2002 | |||
US$ 1 | ¥119.50 | ¥133.25 | ||
EURO 1 | ¥118.13 | ¥116.14 |
-11-
4.Consolidated Statements of Cash Flow
For three months ended June 30, 2002 and 2001
(Millions of yen) |
Three months ended | Three months ended | Year ended |
I. Cash Flows from Operating Activities: | |||||||||
1. | Net income | 19,521 | 14,879 | 61,614 | |||||
2. | Adjustments to reconcile net income to net cash provided by operating activities; | ||||||||
Depreciation and amortization | 19,148 | 15,149 | 73,782 | ||||||
Equity in earnings of affiliates, net of dividends received | -191 | 143 | -1,260 | ||||||
Deferred income taxes | -1,679 | -3,586 | -1,218 | ||||||
Loss on disposal and sales of plant and equipment | 83 | 114 | 1,665 | ||||||
Changes in assets and liabilities; | |||||||||
Decrease (increase) in trade receivables | 12,259 | -7,017 | -20,006 | ||||||
Decrease in inventories | 295 | 941 | 21,194 | ||||||
Increase in finance receivables | -9,743 | -11,379 | -13,620 | ||||||
Decrease in trade payables | -9,830 | -4,111 | -19,535 | ||||||
(Decrease) increase in accrued income taxes and accrued expenses and other | 7,839 | 6,364 | -13,592 | ||||||
Retirement benefit obligation, net | 2,515 | 2,625 | 8,374 | ||||||
Other, net | 14,142 | 2,426 | 7,740 |
Net cash provided by operating activities | 54,359 | 16,548 | 105,138 |
II. Cash Flows from Investing Activities: | |||||||
1. | Proceeds from sales of plant and equipment | 34 | 273 | 756 | |||
2. | Expenditures for plant and equipment | -17,609 | -17,954 | -75,231 | |||
3. | Payments for purchases of available-for-sale securities | -20,002 | -5,890 | -10,025 | |||
4. | Proceeds from sales of available-for-sale securities | 16,960 | 2,831 | 24,568 | |||
5. | Decrease (increase) in investments in and advances to affiliates | -516 | - | 5 | |||
6. | Decrease (increase) in time deposits | 7,370 | -144 | -477 | |||
7. | Other, net | -1,654 | -981 | -21,017 |
Net cash used in investing activities | -15,417 | -21,865 | -81,421 |
III. Cash Flows from Financing Activities: | |||||||
1. | Proceeds from long-term indebtedness | 29,551 | 7,805 | 71,075 | |||
2. | Repayment of long-term indebtedness | -5,601 | -8,758 | -79,640 | |||
3. | Decrease in short-term borrowings, net | -32,249 | -7,789 | -39,414 | |||
4. | Proceeds from issuance of long-term debt securities | 10,000 | 10,000 | 103,500 | |||
5. | Repayment of long-term debt securities | - | - | -10,000 | |||
6. | Cash dividends paid | -5,087 | -4,154 | -8,322 | |||
7. | Other, net | -405 | -227 | -964 |
Net cash provided by (used in) financing activities | -3,791 | -3,123 | 36,235 |
IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents | -2,261 | 362 | 2,474 |
V. Net Increase (Decrease) in Cash and Cash Equivalents | 32,890 | -8,078 | 62,426 |
VI. Cash and Cash Equivalents at Beginning of Year | 170,172 | 107,746 | 107,746 |
VII. Cash and Cash Equivalents at End of Period | 203,062 | 99,668 | 170,172 |
Note:
Effective from April 1, 2002, Ricoh changed its policy for definition of cash and cash equivalents on its consolidated balance sheets and consolidated statements of cash flow. Results for prior years are restated. (See 6. Significant Accounting Policies (Consolidated) (6))
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5.Segment Information
(1) Business Segment Information
(Three months ended June 30, 2002 and 2001) | (Millions of yen) |
Three months ended | Three months ended | Change (%) |
Net sales: | |||||||
Office Equipment | 377,367 | 368,048 | +9,319 | (2.5) | |||
Other Businesses | 51,642 | 45,066 | +6,576 | (14.6) | |||
Intersegment | -738 | -1,151 | +413 | (-35.9) |
Total | 428,271 | 411,963 | +16,308 | (4.0) |
Operating expenses: | |||||||
Office Equipment | 330,766 | 326,030 | +4,736 | (1.5) | |||
Other Businesses | 51,281 | 44,445 | +6,836 | (15.4) | |||
Intersegment | -751 | -1,151 | +400 | (-34.8) | |||
Corporate | 11,048 | 11,027 | +21 | (0.2) |
Total | 392,344 | 380,351 | +11,993 | (3.2) |
Operating income: | ||||||||
Office Equipment | 46,601 | 42,018 | +4,583 | (10.9) | ||||
Operating income on office equipment sales (%) | 12.3 | 11.4 | 0.9 | |||||
Other Businesses | 361 | 621 | -260 | (-41.9) | ||||
Operating income on other business sales (%) | 0.7 | 1.4 | -0.7 | |||||
Intersegment | 13 | 0 | +13 | ( - ) | ||||
Corporate | -11,048 | -11,027 | -21 | (0.2) |
Consolidated operating income | 35,927 | 31,612 | +4,315 | (13.6) |
Other income (expenses) | -3,657 | -4,431 | +774 | (-17.5) |
Income before income taxes | 32,270 | 27,181 | +5,089 | (18.7) |
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(2) Geographic Segment Information
(Three months ended June 30, 2002 and 2001) | (Millions of yen) |
Three months ended | Three months ended | Change (%) |
Net sales: | |||||||
Japan | |||||||
Unaffiliated Customers | 240,204 | 235,115 | +5,089 | (2.2) | |||
Intersegment | 78,012 | 78,923 | -911 | (-1.2) | |||
Total | 318,216 | 314,038 | +4,178 | (1.3) | |||
The Americas | |||||||
Unaffiliated Customers | 82,206 | 79,527 | +2,679 | (3.4) | |||
Intersegment | 1,259 | 1,492 | -233 | (-15.6) | |||
Total | 83,465 | 81,019 | +2,446 | (3.0) | |||
Europe | |||||||
Unaffiliated Customers | 83,622 | 76,206 | +7,416 | (9.7) | |||
Intersegment | 897 | 936 | -39 | (-4.2) | |||
Total | 84,519 | 77,142 | +7,377 | (9.6) | |||
Other | |||||||
Unaffiliated Customers | 22,239 | 21,115 | +1,124 | (5.3) | |||
Intersegment | 15,576 | 14,513 | +1,063 | (7.3) | |||
Total | 37,815 | 35,628 | +2,187 | (6.1) | |||
Intersegment | -95,744 | -95,864 | +120 | (-0.1) |
Total | 428,271 | 411,963 | +16,308 | (4.0) |
Operating expenses: | |||||||
Japan | 292,493 | 280,952 | +11,541 | (4.1) | |||
The Americas | 82,091 | 81,869 | +222 | (0.3) | |||
Europe | 81,226 | 74,602 | +6,624 | (8.9) | |||
Other | 35,557 | 34,419 | +1,138 | (3.3) | |||
Corporate and eliminations | -99,023 | -91,491 | -7,532 | (8.2) |
Total | 392,344 | 380,351 | +11,993 | (3.2) |
Operating income: | ||||||||
Japan | 25,723 | 33,086 | -7,363 | (-22.3) | ||||
Operating income on sales in Japan (%) | 8.1 | 10.5 | -2.4 | |||||
The Americas | 1,374 | -850 | +2,224 | ( - ) | ||||
Operating income on sales in the Americas (%) | 1.6 | -1.0 | 2.6 | |||||
Europe | 3,293 | 2,540 | +753 | (29.6) | ||||
Operating income on sales in Europe (%) | 3.9 | 3.3 | 0.6 | |||||
Other | 2,258 | 1,209 | +1,049 | (86.8) | ||||
Operating income on sales in other regions (%) | 6.0 | 3.4 | 2.6 | |||||
Corporate and eliminations | 3,279 | -4,373 | +7,652 | ( - ) |
Consolidated operating income | 35,927 | 31,612 | +4,315 | (13.6) |
Other income (expenses) | -3,657 | -4,431 | +774 | (-17.5) |
Income before income taxes | 32,270 | 27,181 | +5,089 | (18.7) |
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6.Significant Accounting Policies (Consolidated)
1. Items relating to the scale of consolidation and the application of the equity method
Consolidated subsidiaries:
2 additions including Ricoh Software Technology (Shanghai) Co., Ltd.
5 removals including INRG Hong Kong Ltd.
Companies accounted for by the equity method: (No change)
2. Consolidated Accounting Policies (Summary)
(1) Principles of Consolidation
The consolidated financial statements include the accounts of Ricoh. Investments in 20% to 50% owned companies are accounted for on the equity basis. All significant inter-company balances and transactions have been eliminated in consolidation.
The accounts of certain consolidated subsidiaries have been included on the basis of fiscal periods ended three months or less prior to March 31, and significant transactions after then are appropriately adjusted in consolidation.
(2) Securities
Ricoh conforms with SFAS No.115, "Accounting for Certain Investments in Debt and Equity Securities," which requires certain investments in debt and equity securities to be classified as either held-to-maturity, trading, or available-for-sale securities. Available-for-sale are reported at fair value with unrealized gains and losses, net of related taxes, excluded from earnings and reported in accumulated other comprehensive income (loss).
The cost of the securities sold was computed based on the average cost of each security held at the time of sale.
(3) Inventories
Inventories are mainly stated at the lower of average cost or market. Inventory costs include raw materials, labor and manufacturing overheads.
(4) Plant and Equipment
Depreciation of plant and equipment is computed principally by using the declining-balance method over the estimated useful lives. Most of the foreign subsidiaries have adopted the straight-line method for computing depreciation.
Certain leased buildings, machinery and equipment are accounted for as capital leases in conformity with SFAS No. 13, "Accounting for Leases."
(5) Goodwilland Other Intangible Assets
In conformity with SFAS No.142, "Goodwill and Other Intangible Assets." goodwill and certain other intangible assets that are determined to have indefinite life are not amortized. SFAS No. 142 requires to test for impairment at least annually.
(6) Cash and Cash Equivalents
Effective from April 1, 2002, Ricoh changed its policy for definition of cash and cash equivalents on its consolidated balance sheets and consolidated statements of cash flow. Cash and cash equivalents formerly included cash, negotiable certificates of deposit, time deposits with a maturity of three months or less at the date of purchase and so on. In addition to the above, Ricoh decided to include short-term investment securities into cash equivalents which are available-for-sale at any time and present insignificant risk of changes in value, such as Money Management Funds, Free Financial Funds and Medium-term Government Securities Funds. Ricoh believes this change to disclose a financial status more preferable, since such short-term investment securities increase in fund operation of Ricoh.
Accompanied by this change, Ricoh restated consolidated balance sheet and consolidated statements of cash flow for prior years. The effect of this change was to increase cash and cash equivalents increased by¥26,782 million and¥27,664 million and to decrease equivalently Marketable securities on balance sheet as of June 30, 2001 and March 31, 2002, respectively, and net cash used in investing activities by¥16,507 million and¥15,629 million in consolidated statements of cash flow for the three months ended June 30, 2001 and year ended March 31, 2002.
(7) Use of Estimates
Management of the Company has made a number of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, including impairment losses of long-lived assets and the disclosures of fair value of financial instruments and contingent assets and liabilities, to prepare these financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates.
-15-
3. Note
New Accounting Standards
From fiscal 2003, Ricoh has adopted SFAS No. 141, “Business Combinations,” and SFAS No. 142, “Goodwill and Other Intangible Assets.”SFAS No. 141 requires the use of only the purchase method of accounting for business combinations and prohibits the use of the pooling of interests method.
SFAS No. 142 eliminates the amortization of goodwill, requires annual impairment testing of goodwill.
Ricoh is currently in the process of completing the first step of the transitional impairment test for goodwill and will complete this assessment before the second quarter ending September 30, 2002 as required by SFAS No. 142. Until this assessment is completed, Ricoh has not determined whether there is any impairment of its existing goodwill.
-16-
Appendix
Consolidated Performance Forecast
(1) Forecast of Performance Outline (Consolidated) | (billions of yen) |
Half year ended | Change | Year ended | Change | Year ended |
Net sales | 855.0 | 4.3 | 1,748.0 | 4.5 | 1,672.3 |
Gross profit | 365.8 | 7.0 | 741.8 | 6.0 | 699.9 |
Operating income | 66.0 | 10.2 | 140.0 | 7.9 | 129.6 |
Income before income taxes | 59.5 | 13.3 | 126.5 | 11.0 | 113.9 |
Net income | 35.0 | 23.2 | 72.5 | 17.7 | 61.6 |
Net income per share (yen) | 48.14 | +7.17 | 99.72 | +11.45 | 88.27 |
Capital expenditure | 40.0 | +0.2 | 82.0 | +6.3 | 75.6 |
Depreciation for tangible fixed assets | 34.0 | +0.9 | 75.0 | +1.2 | 73.7 |
R&D expenditure | 41.0 | +1.0 | 83.0 | +2.2 | 80.7 |
Interest income (expenses) net | -1.4 | +0.3 | -3.3 | +0.2 | -3.4 |
Exchange rate (Yen/US$) | 121.01 | -1.15 | 118.00 | -7.10 | 125.10 |
Exchange rate (Yen/EURO) | 115.78 | +7.99 | 115.39 | +4.79 | 110.60 |
Exchange rate | ||||||
Half year ended | Year ended | 3 months ended | Half year ended | 2nd half year ended | Year ended | |
US$ 1 | ¥122.16 | ¥125.10 | ¥115.00 | ¥121.01 | ¥115.00 | ¥118.00 |
EURO 1 | ¥107.79 | ¥110.60 | ¥115.00 | ¥115.78 | ¥115.00 | ¥115.39 |
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(2) Forecast of Sales by Product Category (Consolidated) | (billions of yen) |
Half year ended September 30, 2002 | Year ended March 31, 2003 | Year ended | |||||||
Forecast | Change | Forecast(*) | Change | Forecast | Change | Forecast(*) | Change | Actual |
Imaging Solutions: | ||||||||||
Digital Imaging Systems | 313.2 | (0.4) | 308.8 | (-1.0) | 657.0 | (0.4) | 660.6 | (0.9) | 654.4 | |
Domestic | 137.0 | (-10.2) | 137.0 | (-10.2) | 272.5 | (-7.6) | 272.5 | (-7.6) | 294.8 | |
Overseas | 176.2 | (10.5) | 171.8 | (7.8) | 384.5 | (6.9) | 388.1 | (7.9) | 359.5 | |
Other Imaging Systems | 117.0 | (-20.1) | 114.8 | (-21.5) | 219.5 | (-21.5) | 221.2 | (-20.9) | 297.7 | |
Domestic | 39.5 | (-23.4) | 39.5 | (-23.4) | 75.0 | (-23.0) | 75.0 | (-23.0) | 97.3 | |
Overseas | 77.5 | (-18.2) | 75.3 | (-20.5) | 144.5 | (-20.8) | 146.2 | (-19.8) | 182.3 | |
Total Imaging Solutions | 430.2 | (-6.1) | 423.7 | (-7.6) | 876.5 | (-6.2) | 881.8 | (-5.6) | 934.1 | |
Domestic | 176.5 | (-13.5) | 176.5 | (-13.5) | 347.5 | (-11.4) | 347.5 | (-11.4) | 392.1 | |
Overseas | 253.7 | (-0.2) | 247.2 | (-2.8) | 529.0 | (-2.4) | 534.3 | (-1.4) | 541.9 |
Networking input/output systems: | ||||||||||
Printing Systems | 190.5 | (28.4) | 187.5 | (26.4) | 389.5 | (30.2) | 391.9 | (31.0) | 299.2 | |
Domestic | 84.5 | (28.2) | 84.5 | (28.2) | 182.5 | (29.2) | 182.5 | (29.2) | 141.2 | |
Overseas | 106.0 | (28.5) | 103.0 | (24.9) | 207.0 | (31.0) | 209.4 | (32.6) | 157.9 | |
Other Input/Output Systems | 30.0 | (50.8) | 29.9 | (50.4) | 66.0 | (46.6) | 66.0 | (46.8) | 45.0 | |
Domestic | 6.0 | (-18.8) | 6.0 | (-18.8) | 12.0 | (-19.8) | 12.0 | (-19.8) | 14.9 | |
Overseas | 24.0 | (91.9) | 23.9 | (91.3) | 54.0 | (79.7) | 54.0 | (79.9) | 30.0 | |
Total Networking input/output systems | 220.5 | (31.0) | 217.4 | (29.2) | 455.5 | (32.3) | 458.0 | (33.1) | 344.2 | |
Domestic | 90.5 | (23.5) | 90.5 | (23.5) | 194.5 | (24.5) | 194.5 | (24.5) | 156.2 | |
Overseas | 130.0 | (36.8) | 126.9 | (33.6) | 261.0 | (38.8) | 263.5 | (40.2) | 188.0 |
Network system solutions | 100.3 | (-2.6) | 100.2 | (-2.6) | 207.0 | (0.0) | 207.0 | (0.0) | 206.9 | |
Domestic | 99.0 | (-2.9) | 99.0 | (-2.9) | 204.0 | (-0.3) | 204.0 | (-0.3) | 204.6 | |
Overseas | 1.3 | (37.4) | 1.2 | (33.0) | 3.0 | (28.7) | 3.0 | (30.2) | 2.3 |
<Office Equipment Total> | 751.0 | (2.9) | 741.4 | (1.6) | 1,539.0 | (3.6) | 1,546.9 | (4.1) | 1,485.3 | |
Domestic | 366.0 | (-3.5) | 366.0 | (-3.5) | 746.0 | (-0.9) | 746.0 | (-0.9) | 753.0 | |
Overseas | 385.0 | (9.9) | 375.4 | (7.2) | 793.0 | (8.3) | 800.9 | (9.4) | 732.3 |
< Other Businesses > | 104.0 | (14.9) | 103.5 | (14.4) | 209.0 | (11.8) | 209.3 | (12.0) | 186.9 | |
Domestic | 85.0 | (15.9) | 85.0 | (15.9) | 171.0 | (14.3) | 171.0 | (14.3) | 149.6 | |
Overseas | 19.0 | (10.5) | 18.5 | (8.1) | 38.0 | (1.7) | 38.3 | (2.7) | 37.3 |
Grand Total | 855.0 | (4.3) | 845.0 | (3.0) | 1,748.0 | (4.5) | 1,756.3 | (5.0) | 1,672.3 | ||
Domestic | 451.0 | (-0.4) | 451.0 | (-0.4) | 917.0 | (1.6) | 917.0 | (1.6) | 902.6 | ||
Overseas | 404.0 | (10.0) | 394.0 | (7.3) | 831.0 | (8.0) | 839.3 | (9.0) | 769.6 | ||
The Americas | 167.0 | (2.7) | 168.6 | (3.6) | 338.0 | (-1.1) | 357.7 | (4.7) | 341.7 | ||
Europe | 168.0 | (13.4) | 156.0 | (5.3) | 351.0 | (12.7) | 336.0 | (7.9) | 311.3 | ||
Other | 69.0 | (22.0) | 69.4 | (22.7) | 142.0 | (21.8) | 145.6 | (24.8) | 116.6 |
* … Excluding foreign exchange impact |
Each category includes the following products:
Digital Imaging Systems | Digital PPCs, color PPCs, digital duplicators, facsimile machines, related supplies and services |
Other Imaging Systems | Analog PPCs, diazo copiers, and related supplies including thermal paper, and services |
Printing Systems | Multifunctional printers (MFPs), laser printers, related supplies, services and software |
Other Input/Output Systems | Optical discs, systems and scanners |
Network System Solutions | Personal computers, PC servers, network systems, network related software, and service/support |
Other Businesses | Digital cameras, analog cameras, semiconductors |
Exchange rate | ||||||
Half year ended | Year ended | 3 months ended | Half year ended | 2nd half year ended | Year ended | |
US$ 1 | ¥122.16 | ¥125.10 | ¥115.00 | ¥121.01 | ¥115.00 | ¥118.00 |
EURO 1 | ¥107.79 | ¥110.60 | ¥115.00 | ¥115.78 | ¥115.00 | ¥115.39 |
-18-