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 October, 2002 |
RICOH COMPANY, LTD. |
(Translation of Registrant’s name into English) |
15-5, 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 by the undersigned, thereunto duty authorized. | |
Ricoh Company, Ltd. | |
(Registrant) | |
By: /s/ Zenji Miura | |
Zenji Miura | |
Senior Vice President | |
October 31, 2002 |
INTERIM REPORT | |
Half year ended September 30, 2002 | |
(Results for the Period from April 1, 2002 to September 30, 2002) | |
Index | |
Page | |
Ricoh Company, Ltd. and Consolidated Subsidiaries | |
-Policies | 1 |
-Performance | 3 |
-Ricoh Company, Ltd. and Consolidated Subsidiaries –Interim Report | 11 |
-Group Position | 12 |
-Consolidated Performance | |
1. Statement of Income (Consolidated) | 13 |
2. Net Income Per Share (Consolidated) | 14 |
3. Sales by Product Category (Consolidated) | 15 |
4. Balance Sheets (Consolidated) | 17 |
5. Retained Earnings (Consolidated) | 17 |
6. Statements of Cash Flow (Consolidated) | 18 |
7. Segment Information | 19 |
8. Significant Accounting Policies (Consolidated) | 23 |
9. Notes to Consolidated Financial Statements | 25 |
APPENDIX | |
1. Quarterly Performance Outline (Consolidated) | 27 |
2. Quarterly Sales by Product Category (Consolidated) | 28 |
3. Forecast (Consolidated) | 29 |
4. 3rd Quarter Performance Forecast (Consolidated) | 31 |
5. Calculation Information Where the Equity Method | |
Applied to Ricoh’s Leasing Subsidiary | 31 |
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. |
Policies and Performance |
1. Policies |
(1) Basic Management |
The Ricoh Group's vision is to be a winner in the 21st century. Under that banner, we aim to continue to provide high reliability and build new value so that we can help customers enhance their productivity and create knowledge whenever and wherever they work. |
Our approach covers not only products and services for traditional office setups but also customers working at any time and place in a broadband environment. |
Our three-year 14th medium-term management plan, which ends in March 2005, has five basic objectives: |
i. Realize a "vital and motivated culture" |
ii. Strengthen technologies to become the World No.1 product manufacturing company |
iii. Build "Customer-Friendly" and "Environmentally-Friendly"company |
iv. Strengthen each business unit and revolutionize group business structures |
v. Strengthen management constitution for competitive advantage |
(2) Medium-Term Management Strategies and Initiatives to Streamline Administration |
We are meeting the challenges of digital networking in our core competence of office equipment. We have accordingly endeavored since our 13th medium-term management plan to network standalone equipment while overhauling our operational structure so we can provide solutions for our systems. These efforts led us to introduce digital machines and MFPs (multifunctional printers), bring out more color products, and step up our drive to provide customers with proposals. These endeavors have improved the contributions of network-connective equipment and solutions to net sales while improving our operating performances. |
In the years ahead, demand should continue to rise for fast, color systems that are highly affordable. At the same time, customers will increasingly need offerings that lower the total cost of ownership, supported by solutions that enhance office productivity. Further advances in digital networking will greatly expand the amount of information, making it critical to for customers to better manage the total document volume from their copiers and printers. |
Accordingly, our 14th medium-term management strategy focuses on building total document volume and thereby broadening our revenues and earnings base. Our basic strategy has three goals: |
- Replacing monochrome products with color models to secure new markets |
- Expanding sales of high-speed models to secure more major accounts |
- Deploy printing solutions, such as suggesting ways for customers to optimize their equipment, supported by administrative tools to cut the total cost of ownership |
Our main initiatives have been to build a full lineup of color MFPs and laser printers while extending our global presence through a direct sales, service, and support network. Our acquisition of Lanier Worldwide, Inc., in 2001 was part of that drive. We are particularly focused on broadening our reach among multinationals. |
We are strengthening our technological clout so we can become the world’s best manufacturer, one that can supply highly competitive products and services. Our technological priorities include those to develop next-generation high-speed color imaging equipment, as well as technologies that allow customers to connect various office machines and operate them seamlessly with their preferred applications. Other technological endeavors encompass developing designs that simplify equipment and software and the creation of environmentally friendly products. To strengthen our technological base for such areas, earlier in fiscal 2003 we set up four research centers within our Research and Development Headquarters, including one specializing in photonics and another concentrating on environmental technologies. We also established four operations within the Software Research and Development Headquarters, including the Ubiquitous Solutions Research Center. |
To strengthen the management of the entire Ricoh Group to make it a superior competitor, we have accelerated the construction of our supply chain management system. We are also continuing to push ahead with structural reforms to our processes, such as through our total reforms to development processes. In addition, we are striving to more efficiently use our assets and slash costs. |
It is obviously a crucial priority for top management to prevent the sorts of scandals that occurred over the past year in Japan and abroad that have at the very least shaken community trust and have, in some cases, toppled major corporations. |
The Ricoh Group is addressing these issues by strengthening management in several ways. For example, we are continuing to enhance corporate governance to serve the interests of shareholders and bolster competitiveness. At the same time, we are ensuring that we keep meeting our legal and social obligations by deploying a highly practical risk management system designed to prevent integrity problems from arising. This system’s coverage extends to a framework for daily operations. |
1 |
As an information technology business, the Ricoh Group naturally continues to improve internal administration as part of efforts to tackle information security risks. We have extended our information protection initiatives to new product development. Fruits of these efforts so far in fiscal 2003 include the Imagio Neo 350/450 series of digitally networked multifunctional machines, for which we have won certification under ISO 15408, the international standard for information security. |
(3) Challenges |
The United States, which drives the global economy, continues to suffer slow growth, and the economic picture risks becoming more cloudy with downturns in the U.S. and Japanese stock markets. We believe that the business environment will become very tough during the current fiscal term, such as through intensified competition in color and digitally networked systems. To continue growing and progressing under this environment, we have to do more than simply eliminate unhappiness among our customers and meet their wishes. |
That is why management considers it so critical to build new value that creates dramatically higher standards for customer satisfaction. We will thus focus even more on deploying our customer satisfaction-based management, through which we will identify and address new customer needs. At the same time, we will continue to make steady progress with the revenues and earnings structure reforms that we launched in fiscal 2002 for the Ricoh Group. |
As a good corporate citizen, we believe that our mission is to not only meet our legal and social obligations but also to actively contribute to a better society. To that end, we remain true to Ricoh’s long-held goals of being friendly to people and the environment. On the people front, we aim to deliver appliance ease for our customers with the products and services that the Ricoh Group provides. We are pursuing “environmental management,” through which we balance environmental protection with the pursuit of profit. |
(4) Dividend Policy |
Ricoh endeavors to ensure stable dividends by improving profitability while increasing retained earnings to reinforce its corporate structure and cultivate new businesses. Ricoh uses those retained earnings to strengthen core businesses and invest in new fields from medium- and long-term perspectives. |
(5) Thinking and Policies on Reducing Minimal Investment Lots |
Ricoh believes that reducing the minimum number of shares required to invest in Ricoh could help attract a broader range of investors to the equity markets while enhancing the liquidity of its shares. However, many investors already trade in Ricoh's shares, so management has concluded that there is no immediate need to reduce the minimum investment lot. |
Ricoh plans to keep close tabs on investment patterns and its shareholder composition, and will consider taking steps to alter the minimum lot requirement if need be. |
2 |
2. Performance | |||
(1) Overview | |||
For the three months ended September 30, 2002 and 2001 | (Billions of yen) | ||
Three months ended | Three months ended | Change | |
September 30, 2002 | September 30, 2001 | ||
Domestic sales | 224.7 | 223.9 | 0.3% |
Overseas sales | 203.8 | 184.1 | 10.7% |
Net sales | 428.5 | 408.1 | 5.0% |
Gross profit | 174.1 | 167.8 | 3.7% |
Operating income | 25.4 | 28.2 | -10.2% |
Income before income taxes | 23.4 | 25.3 | -7.7% |
Net income | 14.0 | 13.5 | 3.5% |
Net income per share-basic (yen) | 19.26 | 19.50 | -0.24 |
Net income per share-diluted (yen) | 18.67 | 18.40 | 0.27 |
Return on equity (%) | 2.1 | 2.3 | -0.2%point |
Income before income taxes on total assets (%) | 1.3 | 1.5 | -0.2%point |
Income before income taxes on net sales (%) | 5.5 | 6.2 | -0.7%point |
Exchange rate (Yen/US$) | 119.19 | 121.72 | -2.53 |
Exchange rate (Yen/EURO) | 117.34 | 108.32 | 9.02 |
Expenditure for plant and equipment | 20.8 | 21.8 | -1.0 |
Depreciation for tangible fixed assets | 16.9 | 17.9 | -1.0 |
R&D Expenditure | 21.7 | 22.0 | -0.3 |
3 |
For the half years ended September 30, 2002, 2001 and year ended March 31, 2002. | (Billions of yen) | |||
Half year ended | Half year ended | Change | Year ended | |
September 30, 2002 | September 30, 2001 | March 31, 2002 | ||
Domestic sales | 449.5 | 452.7 | -0.7% | 902.6 |
Overseas sales | 407.2 | 367.3 | 10.9% | 769.6 |
Net sales | 856.8 | 820.0 | 4.5% | 1,672.3 |
Gross profit | 360.6 | 341.8 | 5.5% | 699.9 |
Operating income | 61.3 | 59.9 | 2.4% | 129.6 |
Income before income taxes | 55.6 | 52.5 | 6.0% | 113.9 |
Net income | 33.5 | 28.4 | 18.0% | 61.6 |
Net income per share-basic (yen) | 46.11 | 40.97 | 5.14 | 88.27 |
Net income per share-diluted (yen) | 44.68 | 38.24 | 6.44 | 82.46 |
Return on equity (%) | 5.2 | 5.0 | 0.2%point | 10.4 |
Income before income taxes on total assets (%) | 3.0 | 3.1 | -0.1%point | 6.4 |
Income before income taxes on net sales (%) | 6.5 | 6.4 | 0.1%point | 6.8 |
Total assets | 1,826.3 | 1,713.0 | 113.3 | 1,832.9 |
Shareholders’ equity | 663.6 | 581.3 | 82.3 | 633.0 |
Interest-bearing debt | 543.2 | 548.6 | -5.3 | 561.4 |
Equity ratio (%) | 36.3 | 33.9 | 2.4 | 34.5 |
Equity per share (yen) | 912.98 | 837.85 | 75.13 | 870.63 |
Cash flows from operating activities | 99.1 | 44.9 | 54.1 | 105.1 |
Cash flows from investing activities | -33.3 | -49.8 | 16.4 | -81.4 |
Cash flows from financing activities | -16.5 | 6.0 | -22.6 | 36.2 |
Cash and cash equivalents at end of period | 217.4 | 109.6 | 107.7 | 170.1 |
Exchange rate (Yen/US$) | 123.08 | 122.16 | 0.92 | 125.10 |
Exchange rate (Yen/EURO) | 116.95 | 107.79 | 9.16 | 110.60 |
Expenditure for plant and equipment | 38.4 | 39.8 | -1.3 | 75.6 |
Depreciation for tangible fixed assets | 33.8 | 33.1 | 0.7 | 73.7 |
R&D Expenditure | 40.2 | 39.9 | 0.2 | 80.7 |
Number of employees (Japan) (thousand people) | 39.8 | 40.0 | -0.2 | 40.0 |
Number of employees (Overseas) (thousand people) | 34.8 | 34.4 | 0.4 | 34.2 |
4 |
*Overview | |||
- In the first half of fiscal 2003, ended September 30, 2002, consolidated net sales advanced 4.5%, to ¥856.8 billion. The gain would have been 2.6% without the impact of foreign exchange. | |||
- Domestic sales decreased 0.7%. This reflected the impact of poor local economic conditions on most operations. On the positive side, the Company did well with new offerings that met new customer needs while concentrating its marketing strategy on printing systems, for which sales climbed 24.5%. Overseas sales increased 10.9%. This stemmed from solid ongoing demand for mainline digital imaging and printing systems and favorable foreign exchange conditions. Without the exchange effect, overseas sales would have advanced 6.6%. | |||
- Operating income was up 2.4%. This improvement was due mainly to increased revenues from new and existing high-value-added core offerings, such as digital PPCs (plain-paper copiers), MFPs (multifunctional printers), and color printers. Other important factors included continued cost-cutting and favorable exchange rates, which offset additional costs to cover losses at Ricoh Elemex Corporation to cover quality problems on some of that company’s metering equipment. Ricoh strove to reduce total other expenses by lowering interest expense, thereby offsetting decreases in interest and dividend income amid sluggish conditions in financial markets. Consequently, income before income taxes, minority interests and equity in earnings of affiliates improved 6.0%. | |||
- These factors translated into an 18.0% rise in net income. | |||
- Management increased interim cash dividends ¥1 per share from the previous corresponding period, to ¥7, with payments to begin on December 2. | |||
*Financial Position | |||
- The Ricoh Group focuses on ongoing efforts to expand free cash flow and reinforce its financial position. | |||
- At the close of the first half of fiscal 2003, net cash provided by operating activities was ¥99.1 billion, up ¥54.1 billion from the previous corresponding term. This rise owed principally to higher net income, increased depreciation and amortization and trade receivables collection, and lower inventories. | |||
- Net cash used in investing activities was ¥33.3 billion, stemming from spending to upgrade production lines for new models and reinforce product development. | |||
- As a result of the above factors, free cash flow totaled ¥65.7 billion. | |||
- During the term, 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 ¥16.5 billion. | |||
- Cash and cash equivalents at the end of the term were thus ¥47.2 billion higher than at the close of the previous year-end, at ¥217.4 billion. | |||
- Since the start of fiscal 2003, Ricoh has included short-term investment securities, which are always available-for-sale, such as MMF (Money Management Funds), in cash equivalents. The effects of this change were as follows: | |||
(Millions of yen) | |||
Half year ended | Half year ended | Year ended | |
Cash and cash equivalents at term-end | September 30, 2002 | September 30, 2001 | March 31, 2002 |
Under previous accounting policy | 135,136 | 60,452 | 142,508 |
Under new accounting policy | 217,418 | 109,679 | 170,172 |
Change | 82,282 | 49,227 | 27,664 |
[Graph] | |||
The graphs are omitted, which show consolidated performance for the half year ended September 30, 2000, 2001, and 2002, and for the half year ended March 31, 2001 and 2002. | |||
5 |
*Consolidated Sales by Category |
Imaging Solutions (sales down 6.1%, to ¥430.3 billion) |
*Digital Imaging Solutions (sales down 0.8%, to ¥309.3 billion) |
In core digital PPCs, the Company reinforced everything in its lineup from low-end models to high-speed machines. Despite expanded sales of the Imagio Neo C240/C320 series and other new models, overall domestic sales declined amid sluggish demand. Overseas, however, sales of digital PPCs were buoyant, particularly for high-speed models. |
*Other Imaging Solutions (sales down 17.3%, to ¥120.9 billion) |
Lower sales reflected the ongoing trend away from analog PPCs to digital models and MFPs. |
Network Input/Output Systems (sales up 30.1%, to ¥218.9 billion) |
*Printing Systems (sales up 27.6%, to ¥189.4 billion) |
In Japan and abroad, Ricoh continued to introduce 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 48.4%, to ¥29.5 billion) |
This business benefited from strong shipments in Japan and internationally of DVD drives and media based on new standards. |
Network System Solutions (sales down 2.8%, to ¥100.0 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 18.7%, to ¥107.4 billion) |
The higher sales in this category reflected recoveries in the semiconductor business and steady growth in leasing and other operations, which offset slower sales in the metering equipment business. |
[Graph] |
The graph is omitted, which shows consolidated sales by category for the half year ended September 30, 2001 and 2002. |
6 |
* Consolidated Sales by Geographic Area |
Japan (sales down 0.7%, to ¥449.5 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 such solution businesses as useware. In contrast, the trend toward digital and color equipment dampened sales of analog PPCs and fax machines, while the adverse economic conditions lowered sales in other areas, such as personal computers and servers. |
The Americas (sales up 4.8%, to ¥170.4 billion) |
Ricoh further improved its sales network, particularly in North America, while endeavoring to raise sales of core digital PPCs, MFPs, and printers. These efforts helped the Company overcome increasingly uncertain economic conditions in the United States. |
Europe (sales up 12.2%, to ¥166.1 billion) |
With regional economies remaining stable, Ricoh continued to do well with core digital PPCs and MFPs, maintaining top market shares in PPCs. Printer sales were also up. |
Others (sales up 24.9%, to ¥70.6 billion) |
Sales in China, the rest of Asia, and other regions grew on the strength of the trend toward digitally networked offices that favor color systems. |
[Graph] |
The graph is omitted, which shows consolidated sales by geographic area for the half year ended September 30, 2001 and 2002. |
7 |
*Segment Information | |||
Business Segment | |||
Office Equipment | |||
Ricoh continued to deliver solid sales of core, high-value-added digital PPCs, MFPs, and color printers, with demand soaring overseas. Both sales and operating income increased, partly because of the foreign exchange impact. | |||
Other Businesses | |||
These businesses benefited from recoveries in demand for semiconductors and strong growth in leasing operations. Operating income declined, however, reflecting expenditure to cover defects on some metering equipment. | |||
[Graph] | |||
The graphs are omitted, which show business segment information for the half year ended September 30, 2001 and 2002. | |||
Assets, Capital Expenditure, and Depreciation | (Billions of yen) | ||
Half year ended | Half year ended | Change | |
September 30, 2002 | September 30, 2001 | ||
Identifiable assets: | |||
Office Equipment | 1,168.9 | 1,174.0 | -5.0 |
Other Businesses | 184.7 | 172.1 | 12.6 |
Capital expenditure: | |||
Office Equipment | 35.2 | 36.3 | -1.0 |
Other Businesses | 2.6 | 2.5 | 0.1 |
Depreciation and Amortization: | |||
Office Equipment | 29.7 | 29.2 | 0.4 |
Other Businesses | 3.1 | 2.9 | 0.1 |
8 |
Geographic Segment |
Japan |
In the office equipment business, overall sales were up owing to favorable exports, which offset a decline in domestic sales in this category. Operating income fell, however, reflecting expanded overseas production in keeping with a policy of optimally locating manufacturing operations closer to customer markets, a decline in domestic sales, and the impact of expenditure to address quality problems in the metering equipment business. |
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 and operating income. |
Europe |
The Company continued to do well, particularly in digital PPCs, MFPs and printers, while maintaining high productivity rates at local plants, leading to a rise in regional sales and operating income. |
Others |
Sales were again solid in China and elsewhere in Asia and in Oceania, while increased production in China helped increase regional sales and operating income. |
[Graph] |
The graphs are omitted, which show geographic segment information for the half year ended September 30, 2001 and 2002. |
9 |
(2) Expectations | ||||
* Economic projections and Ricoh Group’s initiatives for fiscal 2003 | ||||
With the domestic economy remaining lackluster and economic conditions in the United States increasingly uncertain, Ricoh expects the operating environment to remain tough. | ||||
Under these circumstances, the Group will continue to push ahead with the following initiatives in its five operating regions of Japan, the Americas, Europe, Asia and Oceania, and China, striving to expand revenues, earnings, and cash flow. | ||||
• Further globalize operations to increase major account sales | ||||
• Reinforce lineup of color PPCs, MFPs, and laser printers to meet growing demand for color among office users | ||||
• Provide optimal printing solutions for customers’ digitally networked offices and reinforce printing capabilities centered on MFPs | ||||
• Optimally locate Group manufacturing operations closer to customer markets | ||||
• Restructure to increase sales and profits and build cash flow | ||||
Exchange Rate Assumptions for the 2nd Half Year | ||||
US$1 = ¥120.00 (¥123.08 in 1st half year 2002) | ||||
Euro1 = ¥115.00 (¥116.95 in 1st half year 2002) | ||||
Exchange Rate Assumptions for the full year ended March 31, 2003 | ||||
US$1 = ¥121.54 (¥125.10 in previous fiscal year) | ||||
Euro1 = ¥115.98 (¥110.60 in previous fiscal year) | ||||
(Billions of yen) | ||||
Year ended | Year ended | Change | ||
March 31, 2003 | March 31, 2002 | |||
(Forecast) | ||||
Domestic sales | 909.0 | 902.6 | 0.7% | |
Overseas sales | 841.0 | 769.6 | 9.3% | |
Net sales | 1,750.0 | 1,672.3 | 4.6% | (*1) |
Gross profit | 738.5 | 699.9 | 5.5% | |
Operating income | 134.0 | 129.6 | 3.3% | |
Income before income taxes | 121.5 | 113.9 | 6.6% | |
Net income | 71.0 | 61.6 | 15.2% | (*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. | ||||
10 |
Ricoh Company, Ltd. and Consolidated Subsidiaries | |||
INTERIM REPORT (Consolidated. Half year ended September 30, 2002) | |||
*Date of approval for the financial results for the half year ended September 30, 2002, at the Board of Directors' meeting: October 31, 2002 | |||
1. Results for the Period from April 1, 2002 to September 30, 2002 | |||
(1) Operating Results | (Millions of yen) | ||
Half year ended | Half year ended | Year ended | |
September 30, 2002 | September 30, 2001 | March 31, 2002 | |
Net sales | 856,821 | 820,087 | 1,672,340 |
(% change from the previous corresponding period) | 4.5 | 11.5 | 8.7 |
Operating income | 61,328 | 59,904 | 129,695 |
(% change from the previous corresponding period) | 2.4 | 17.1 | 23.4 |
Income before income taxes | 55,673 | 52,524 | 113,950 |
(% change from the previous corresponding period) | 6.0 | 13.8 | 16.6 |
Net income | 33,525 | 28,408 | 61,614 |
(% change from the previous corresponding period) | 18.0 | 10.1 | 15.8 |
Net income per share (yen) | 46.11 | 40.97 | 88.27 |
Fully diluted net income per share (yen) | 44.68 | 38.24 | 82.46 |
Notes: | |||
i. Equity in income of affiliates: ¥1,608 million; ¥1,016 million (half year ended September 30, 2001); ¥1,891 million (year ended March 31, 2002) | |||
ii. Average number of shares outstanding (consolidated): 727,020,387 shares; 693,402,051 shares (half year ended September 30, 2001); 698,025,167 shares (year ended March 31, 2002) | |||
iii. Some changes have been made in accounting method | |||
iv. Percentage changes in net sales, operating income, income before income taxes, and net income based on the previous corresponding period. | |||
(2) Financial Position | (Millions of yen) | ||
September 30, 2002 | September 30, 2001 | March 31, 2002 | |
Total assets | 1,826,385 | 1,713,042 | 1,832,928 |
Shareholders' equity | 663,665 | 581,364 | 633,020 |
Equity ratio (%) | 36.3 | 33.9 | 34.5 |
Equity per share (yen) | 912.98 | 837.85 | 870.63 |
Note: Number of shares outstanding as of September 30, 2002: 726,919,110 shares; 693,874,541 shares (September 30, 2001); 727,086,738 shares (March 31, 2002) | |||
(3) Cash Flow | (Millions of yen) | ||
Half year ended | Half year ended | Year ended | |
September 30, 2002 | September 30, 2001 | March 31, 2002 | |
Cash flows from operating activities | 99,119 | 44,998 | 105,138 |
Cash flows from investing activities | -33,395 | -49,877 | -81,421 |
Cash flows from financing activities | -16,562 | 6,046 | 36,235 |
Cash and cash equivalents at end of period | 217,418 | 109,679 | 170,172 |
(4) Items relating to the scale of consolidation and the application of the equity method: | |||
Number of consolidated subsidiaries: 329; nonconsolidated subsidiaries: 40; affiliated companies: 26 | |||
(5) Changes in accounting method, etc.: | |||
Consolidated subsidiaries: 5 additions; 7 removals | |||
Companies accounted for by the equity method: 1 addition; 8 removals | |||
Notes: 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. | |||
Net income per share is calculated based on Statement of Financial Accounting Standards(SFAS) No.128. | |||
2. Forecast of operating results from April 1, 2002 to March 31, 2003 (Consolidated) | (Millions of yen) | ||
Net sales | 1,750,000 | ||
Operating income | 134,000 | ||
Income before income taxes | 121,500 | ||
Net income | 71,000 | ||
Note: Net income per share (Consolidated) 97.67 yen | |||
In accordance with Japanese regulations, Ricoh has issued forecast for its financial results for the fiscal year ending March 2003. These forecast are forward-looking statements based on a number of assumptions and beliefs in light of the information currently available to management and subject to significant risks and uncertainties. | |||
11 |
Group Position |
The Ricoh Group comprises 369 subsidiaries and 26 affiliates. |
Their development, manufacturing, sales, and service activities center on office equipment (copiers and related supplies and communications and information systems), optical equipment, and other devices. |
The parent company heads development. The parent company and subsidiaries and affiliates maintain an integrated domestic and international manufacturing structure. Below, we have listed our main product areas and the positions of key subsidiaries and affiliates. |
<Office Equipment> |
In this business category, Ricoh provides products and systems that help enhance the office productivity of customers. Major products include: |
Digital/analog copiers, MFPs (multifunctional printers), laser printers, facsimile machines, digital duplicators, optical disks. Ricoh also provides solution systems including personal computers and servers, utilizing its information technology. Ricoh also provides support, service, and related supplies, as well as use ware including IT environment setup, network administration, and user support. |
[Main Subsidiaries and Affiliates] |
Production |
Japan...Tohoku Ricoh Co., Ltd., Ricoh Elemex Corporation, Ricoh Unitechno Co., Ltd., Hasama Ricoh Inc., |
Ricoh Microelectronics Co., Ltd., Ricoh Keiki Co., Ltd. |
The Americas...Ricoh Electronics, Inc. |
Europe...Ricoh UK Products Ltd. and Ricoh Industrie France S.A. |
Other regions...Ricoh Asia Industry (Shenzhen) Ltd., Sindo Ricoh Co., Ltd., Shanghai Ricoh Facsimile Co., Ltd. |
Sales and Service |
Japan ...Ricoh Tohoku Co., Ltd., Ricoh Chubu Co., Ltd., Ricoh Kansai Co., Ltd., Ricoh Chugoku Co., Ltd., |
Ricoh Kyushu Co., Ltd., Tokyo Ricoh Co., Ltd., Osaka Ricoh Co., Ltd. and 43 other sales companies nationwide, |
Ricoh Technosystems Co., Ltd., NBS Ricoh Co., Ltd., Ricoh Leasing Co., Ltd., Ricoh Logistics System Co., Ltd. |
The Americas...Ricoh Corporation, Savin Corporation, Lanier Worldwide, Inc. |
Europe...Ricoh Europe B.V., Ricoh Deutschland GmbH, Ricoh UK Ltd., Ricoh France S.A., |
Ricoh Espana S.A., Ricoh Italia S.p.A., NRG Group PLC |
Other regions...Ricoh Hong Kong Ltd., Ricoh Asia Pacific Pte, Ltd., |
Ricoh Australia Pty, Ltd., Ricoh New Zealand Ltd. |
<Other Businesses> |
Manufacturing and marketing analog cameras and optical lenses, semiconductor devices and measuring equipment, and providing leasing and logistics services |
[Main Subsidiaries and Affiliates] |
Production |
Japan...Ricoh Optical Industries Co., Ltd., Ricoh Elemex Corporation |
Overseas...Taiwan Ricoh Co., Ltd. |
Sales |
Ricoh Corporation, NRG Group PLC |
Other |
Ricoh Leasing Co., Ltd., Ricoh Logistics System Co., Ltd., Coca-Cola West Japan Co., Ltd. (affiliated company) |
<Business System Chart> |
The following chart can show this group position. |
[Chart] |
The chart of group position is omitted. |
12 |
1. Statement of Income (Consolidated) | |||||
For the three months ended September 30, 2002 and 2001. | (Millions of yen) | ||||
Three months ended September 30, 2002 | Three months ended September 30, 2001 | Change | % | ||
Net sales | 428,550 | 408,124 | 20,426 | 5.0 | |
Cost of sales | 254,402 | 240,245 | 14,157 | 5.9 | |
Percentage of net sales (%) | 59.4 | 58.9 | |||
Gross Profit | 174,148 | 167,879 | 6,269 | 3.7 | |
Percentage of net sales (%) | 40.6 | 41.1 | |||
Selling, general and administrative expenses | 148,747 | 139,587 | 9,160 | 6.6 | |
Percentage of net sales (%) | 34.7 | 34.2 | |||
Operating income | 25,401 | 28,292 | -2,891 | -10.2 | |
Percentage of net sales (%) | 5.9 | 6.9 | |||
Other (income) expense | |||||
Interest and dividend income | 1,072 | 1,758 | -686 | -39.0 | |
Percentage of net sales (%) | 0.3 | 0.4 | |||
Interest expense | 2,291 | 2,147 | 144 | 6.7 | |
Percentage of net sales (%) | 0.5 | 0.5 | |||
Other, net | 779 | 2,560 | -1,781 | -69.6 | |
Percentage of net sales (%) | 0.2 | 0.6 | |||
Income before income taxes, | |||||
equity income and minority interests | 23,403 | 25,343 | -1,940 | -7.7 | |
Percentage of net sales (%) | 5.5 | 6.2 | |||
Provision for income taxes | 11,019 | 11,410 | -391 | -3.4 | |
Percentage of net sales (%) | 2.6 | 2.8 | |||
Minority interests in earnings of subsidiaries | -843 | 1,038 | -1,881 | - | |
Percentage of net sales (%) | -0.2 | 0.3 | |||
Equity in earnings of affiliates | 777 | 634 | 143 | 22.6 | |
Percentage of net sales (%) | 0.2 | 0.2 | |||
Net income | 14,004 | 13,529 | 475 | 3.5 | |
Percentage of net sales (%) | 3.3 | 3.3 | |||
Reference: | Three months ended | Three months ended | |||
Exchange rate | September 30, ’02 | September 30, ’ 01 | |||
US$ 1 | ¥119.19 | ¥121.72 | |||
EURO 1 | ¥117.34 | ¥108.32 | |||
For the half years ended September 30, 2002, 2001 and year ended March 31, 2002. | (Millions of yen) | ||||
Half year ended September 30, 2002 | Half year ended September 30, 2001 | Change | % | Year ended March 31, 2002 | |
Net sales | 856,821 | 820,087 | 36,734 | 4.5 | 1,672,340 |
Cost of sales | 496,176 | 478,191 | 17,985 | 3.8 | 972,394 |
Percentage of net sales (%) | 57.9 | 58.3 | 58.1 | ||
Gross Profit | 360,645 | 341,896 | 18,749 | 5.5 | 699,946 |
Percentage of net sales (%) | 42.1 | 41.7 | 41.9 | ||
Selling, general and administrative expenses | 299,317 | 281,992 | 17,325 | 6.1 | 570,251 |
Percentage of net sales (%) | 34.9 | 34.4 | 34.1 | ||
Operating income | 61,328 | 59,904 | 1,424 | 2.4 | 129,695 |
Percentage of net sales (%) | 7.2 | 7.3 | 7.8 | ||
Other (income) expense | |||||
Interest and dividend income | 2,035 | 2,896 | -861 | -29.7 | 4,753 |
Percentage of net sales (%) | 0.2 | 0.4 | 0.3 | ||
Interest expense | 4,030 | 4,562 | -532 | -11.7 | 8,233 |
Percentage of net sales (%) | 0.5 | 0.6 | 0.5 | ||
Other, net | 3,660 | 5,714 | -2,054 | -35.9 | 12,265 |
Percentage of net sales (%) | 0.4 | 0.7 | 0.8 | ||
Income before income taxes, | |||||
equity income and minority interests | 55,673 | 52,524 | 3,149 | 6.0 | 113,950 |
Percentage of net sales (%) | 6.5 | 6.4 | 6.8 | ||
Provision for income taxes | 24,020 | 23,519 | 501 | 2.1 | 51,147 |
Percentage of net sales (%) | 2.8 | 2.8 | 3.0 | ||
Minority interests in earnings of subsidiaries | -264 | 1,613 | -1,877 | - | 3,080 |
Percentage of net sales (%) | 0.0 | 0.2 | 0.2 | ||
Equity in earnings of affiliates | 1,608 | 1,016 | 592 | 58.3 | 1,891 |
Percentage of net sales (%) | 0.2 | 0.1 | 0.1 | ||
Net income | 33,525 | 28,408 | 5,117 | 18.0 | 61,614 |
Percentage of net sales (%) | 3.9 | 3.5 | 3.7 | ||
Reference: | Half year ended | Half Year ended | Year ended | ||
Exchange rate | September 30, ’02 | September 30, ’ 01 | March 31, ’02 | ||
US$ 1 | 123.08 | 122.16 | 125.10 | ||
EURO 1 | 116.95 | 107.79 | 110.60 | ||
13 |
2. Net Income Per Share (Consolidated) | ||||
For the half years ended September 30, 2002 and 2001, and year ended March 31, 2002. | (Yen) | |||
Half year ended September 30, 2002 | Half year ended September 30, 2001 | Change | Year ended March 31, 2002 | |
Net income per share-basic | 46.11 | 40.97 | 5.14 | 88.27 |
Net income per share- diluted | 44.68 | 38.24 | 6.44 | 82.46 |
14 |
3. Sales by Product Category (Consolidated) | ||||||
For the three months ended September 30, 2002 and 2001. | (Millions of yen) | |||||
Three months ended September 30, ’02 | Three months ended September 30, ’01 | Change | % | Change excluding exchange rate effect | % | |
<Office Equipment> | ||||||
Imaging Solutions: | ||||||
Digital Imaging Systems | 153,096 | 156,787 | -3,691 | -2.4 | -5,566 | -3.6 |
Percentage of net sales (%) | 35.7 | 38.4 | ||||
Domestic | 64,916 | 71,278 | -6,362 | -8.9 | -6,362 | -8.9 |
Overseas | 88,180 | 85,509 | 2,671 | 3.1 | 796 | 0.9 |
Other Imaging Systems | 57,345 | 69,870 | -12,525 | -17.9 | -13,527 | -19.4 |
Percentage of net sales (%) | 13.4 | 17.1 | ||||
Domestic | 18,555 | 23,649 | -5,094 | -21.5 | -5,094 | -21.5 |
Overseas | 38,790 | 46,221 | -7,431 | -16.1 | -8,433 | -18.2 |
Total Imaging Solutions | 210,441 | 226,657 | -16,216 | -7.2 | -19,093 | -8.4 |
Percentage of net sales (%) | 49.1 | 55.5 | ||||
Domestic | 83,471 | 94,927 | -11,456 | -12.1 | -11,456 | -12.1 |
Overseas | 126,970 | 131,730 | -4,760 | -3.6 | -7,637 | -5.8 |
Networking input/output systems: | ||||||
Printing Systems | 94,755 | 70,955 | 23,800 | 33.5 | 22,255 | 31.4 |
Percentage of net sales (%) | 22.1 | 17.4 | ||||
Domestic | 41,908 | 34,417 | 7,491 | 21.8 | 7,491 | 21.8 |
Overseas | 52,847 | 36,538 | 16,309 | 44.6 | 14,764 | 40.4 |
Other Input/Output Systems | 13,672 | 9,729 | 3,943 | 40.5 | 3,786 | 38.9 |
Percentage of net sales (%) | 3.2 | 2.4 | ||||
Domestic | 2,495 | 3,399 | -904 | -26.6 | -904 | -26.6 |
Overseas | 11,177 | 6,330 | 4,847 | 76.6 | 4,690 | 74.1 |
Total Networking input/output systems | 108,427 | 80,684 | 27,743 | 34.4 | 26,041 | 32.3 |
Percentage of net sales (%) | 25.3 | 19.8 | ||||
Domestic | 44,403 | 37,816 | 6,587 | 17.4 | 6,587 | 17.4 |
Overseas | 64,024 | 42,868 | 21,156 | 49.4 | 19,454 | 45.4 |
Network system solutions | 53,122 | 54,184 | -1,062 | -2.0 | -1,087 | -2.0 |
Percentage of net sales (%) | 12.4 | 13.3 | ||||
Domestic | 52,469 | 53,639 | -1,170 | -2.2 | -1,170 | -2.2 |
Overseas | 653 | 545 | 108 | 19.8 | 83 | 15.2 |
Office Equipment Total | 371,990 | 361,525 | 10,465 | 2.9 | 5,861 | 1.6 |
Percentage of net sales (%) | 86.8 | 88.6 | ||||
Domestic | 180,343 | 186,382 | -6,039 | -3.2 | -6,039 | -3.2 |
Overseas | 191,647 | 175,143 | 16,504 | 9.4 | 11,900 | 6.8 |
< Other Businesses > | ||||||
Other Businesses | 56,560 | 46,599 | 9,961 | 21.4 | 9,639 | 20.7 |
Percentage of net sales (%) | 13.2 | 11.4 | ||||
Domestic | 44,388 | 37,602 | 6,786 | 18.0 | 6,786 | 18.0 |
Overseas | 12,172 | 8,997 | 3,175 | 35.3 | 2,853 | 31.7 |
Grand Total | 428,550 | 408,124 | 20,426 | 5.0 | 15,500 | 3.8 |
Percentage of net sales (%) | 100.0 | 100.0 | ||||
Domestic | 224,731 | 223,984 | 747 | 0.3 | 747 | 0.3 |
Percentage of net sales (%) | 52.4 | 54.9 | ||||
Overseas | 203,819 | 184,140 | 19,679 | 10.7 | 14,753 | 8.0 |
Percentage of net sales (%) | 47.6 | 45.1 | ||||
The Americas | 86,262 | 82,776 | 3,486 | 4.2 | 5,107 | 6.2 |
Percentage of net sales (%) | 20.1 | 20.3 | ||||
Europe | 82,909 | 71,966 | 10,943 | 15.2 | 4,916 | 6.8 |
Percentage of net sales (%) | 19.4 | 17.6 | ||||
Other | 34,648 | 29,398 | 5,250 | 17.9 | 4,730 | 16.1 |
Percentage of net sales (%) | 8.1 | 7.2 | ||||
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 | MFPs(multifunctional printers), laser printers, related supplies, services and software | |||||
Other Input/Output Systems | Optical discs and system scanners | |||||
Network System Solutions | Personal computers, PC servers, network systems, network related software, and service/support | |||||
Other Businesses | Digital cameras, analog cameras, semiconductors | |||||
Reference: | Three months ended | Three months ended | ||||
Exchange rate | September 30, ’02 | September 30, ’ 01 | ||||
US$ 1 | ¥119.19 | ¥121.72 | ||||
EURO 1 | ¥117.34 | ¥108.32 | ||||
15 |
For the half years ended September 30, 2002, 2001, and year ended March 31, 2002. | (Millions of yen) | ||||||
Half year ended September 30, ’02 | Half Year ended September 30, ’ 01 | Change | % | Change excluding exchange rate effect | % | Year ended March 31, ’02 | |
<Office Equipment> | |||||||
Imaging Solutions: | |||||||
Digital Imaging Systems | 309,385 | 311,968 | -2,583 | -0.8 | -9,107 | -2.9 | 654,425 |
Percentage of net sales (%) | 36.1 | 38.0 | 39.1 | ||||
Domestic | 135,866 | 152,522 | -16,656 | -10.9 | -16,656 | -10.9 | 294,827 |
Overseas | 173,519 | 159,446 | 14,073 | 8.8 | 7,549 | 4.7 | 359,598 |
Other Imaging Systems | 120,977 | 146,353 | -25,376 | -17.3 | -28,673 | -19.6 | 279,755 |
Percentage of net sales (%) | 14.1 | 17.9 | 16.7 | ||||
Domestic | 40,961 | 51,586 | -10,625 | -20.6 | -10,625 | -20.6 | 97,356 |
Overseas | 80,016 | 94,767 | -14,751 | -15.6 | -18,048 | -19.0 | 182,399 |
Total Imaging Solutions | 430,362 | 458,321 | -27,959 | -6.1 | -37,780 | -8.2 | 934,180 |
Percentage of net sales (%) | 50.2 | 55.9 | 55.8 | ||||
Domestic | 176,827 | 204,108 | -27,281 | -13.4 | -27,281 | -13.4 | 392,183 |
Overseas | 253,535 | 254,213 | -678 | -0.3 | -10,499 | -4.1 | 541,997 |
Networking input/output systems: | |||||||
Printing Systems | 189,408 | 148,406 | 41,002 | 27.6 | 36,292 | 24.5 | 299,231 |
Percentage of net sales (%) | 22.1 | 18.1 | 17.9 | ||||
Domestic | 82,016 | 65,900 | 16,116 | 24.5 | 16,116 | 24.5 | 141,273 |
Overseas | 107,392 | 82,506 | 24,886 | 30.2 | 20,176 | 24.5 | 157,958 |
Other Input/Output Systems | 29,535 | 19,896 | 9,639 | 48.4 | 9,402 | 47.3 | 45,016 |
Percentage of net sales (%) | 3.5 | 2.4 | 2.7 | ||||
Domestic | 5,958 | 7,388 | -1,430 | -19.4 | -1,430 | -19.4 | 14,966 |
Overseas | 23,577 | 12,508 | 11,069 | 88.5 | 10,832 | 86.6 | 30,050 |
Total Networking input/output systems | 218,943 | 168,302 | 50,641 | 30.1 | 45,694 | 27.2 | 344,247 |
Percentage of net sales (%) | 25.6 | 20.5 | 20.6 | ||||
Domestic | 87,974 | 73,288 | 14,686 | 20.0 | 14,686 | 20.0 | 156,239 |
Overseas | 130,969 | 95,014 | 35,955 | 37.8 | 31,008 | 32.6 | 188,008 |
Network system solutions | 100,052 | 102,950 | -2,898 | -2.8 | -2,968 | -2.9 | 206,962 |
Percentage of net sales (%) | 11.7 | 12.6 | 12.4 | ||||
Domestic | 98,754 | 102,004 | -3,250 | -3.2 | -3,250 | -3.2 | 204,631 |
Overseas | 1,298 | 946 | 352 | 37.2 | 282 | 29.8 | 2,331 |
Office Equipment Total | 749,357 | 729,573 | 19,784 | 2.7 | 4,946 | 0.7 | 1,485,389 |
Percentage of net sales (%) | 87.5 | 89.0 | 88.8 | ||||
Domestic | 363,555 | 379,400 | -15,845 | -4.2 | -15,845 | -4.2 | 753,053 |
Overseas | 385,802 | 350,173 | 35,629 | 10.2 | 20,791 | 5.9 | 732,336 |
< Other Businesses > | |||||||
Other Businesses | 107,464 | 90,514 | 16,950 | 18.7 | 16,173 | 17.9 | 186,951 |
Percentage of net sales (%) | 12.5 | 11.0 | 11.2 | ||||
Domestic | 86,020 | 73,325 | 12,695 | 17.3 | 12,695 | 17.3 | 149,602 |
Overseas | 21,444 | 17,189 | 4,255 | 24.8 | 3,478 | 20.2 | 37,349 |
Grand Total | 856,821 | 820,087 | 36,734 | 4.5 | 21,119 | 2.6 | 1,672,340 |
Percentage of net sales (%) | 100.0 | 100.0 | 100.0 | ||||
Domestic | 449,575 | 452,725 | -3,150 | -0.7 | -3,150 | -0.7 | 902,655 |
Percentage of net sales (%) | 52.5 | 55.2 | 54.0 | ||||
Overseas | 407,246 | 367,362 | 39,884 | 10.9 | 24,269 | 6.6 | 769,685 |
Percentage of net sales (%) | 47.5 | 44.8 | 46.0 | ||||
The Americas | 170,433 | 162,666 | 7,767 | 4.8 | 6,533 | 4.0 | 341,747 |
Percentage of net sales (%) | 19.9 | 19.8 | 20.4 | ||||
Europe | 166,169 | 148,135 | 18,034 | 12.2 | 5,670 | 3.8 | 311,312 |
Percentage of net sales (%) | 19.4 | 18.1 | 18.6 | ||||
Other | 70,644 | 56,561 | 14,083 | 24.9 | 12,066 | 21.3 | 116,626 |
Percentage of net sales (%) | 8.2 | 6.9 | 7.0 | ||||
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 | MFPs(multifunctional printers), laser printers, related supplies, services and software | ||||||
Other Input/Output Systems | Optical discs and system scanners | ||||||
Network System Solutions | Personal computers, PC servers, network systems, network related software, and service/support | ||||||
Other Businesses | Digital cameras, analog cameras, semiconductors | ||||||
Reference: | Half year ended | Half Year ended | Year ended | ||||
Exchange rate | September 30, ’02 | September 30, ’ 01 | March 31, ’02 | ||||
US$ 1 | ¥123.08 | ¥122.16 | ¥125.10 | ||||
EURO 1 | ¥116.95 | ¥107.79 | ¥110.60 | ||||
16 |
4. Balance Sheets (Consolidated) | |||
September 30, 2002 and March 31, 2002 | |||
Assets | (Millions of yen) | ||
September 30, 2002 | March 31, 2002 | Change | |
Current Assets | |||
Cash and time deposits | 225,387 | 182,650 | 42,737 |
Trade receivables | 406,579 | 442,399 | -35,820 |
Marketable securities | 2,118 | 22,935 | -20,817 |
Inventories | 148,984 | 162,176 | -13,192 |
Other current assets | 54,876 | 53,508 | 1,368 |
Total Current Assets | 837,944 | 863,668 | -25,724 |
Fixed Assets | |||
Tangible fixed assets | 252,731 | 259,380 | -6,649 |
Finance receivable | 463,853 | 447,829 | 16,024 |
Other Investments | 271,857 | 262,051 | 9,806 |
Total Fixed Assets | 988,441 | 969,260 | 19,181 |
Total Assets | 1,826,385 | 1,832,928 | -6,543 |
Note: | |||
Contents of cash and time deposits: | |||
Cash and cash equivalents | 217,418 | 170,172 | |
Time deposits | 7,969 | 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 8. Significant Accounting Policies (Consolidated) (6)) | |||
Liabilities and Shareholders’ Investment | (Millions of yen) | ||
September 30, 2002 | March 31, 2002 | Change | |
Current Liabilities | |||
Trade payables | 268,403 | 277,753 | -9,350 |
Short-term borrowings | 180,383 | 228,408 | -48,025 |
Other current liabilities | 154,264 | 159,540 | -5,276 |
Total Current Liabilities | 603,050 | 665,701 | -62,651 |
Fixed Liabilities | |||
Long-term indebtedness | 362,909 | 332,995 | 29,914 |
Retirement benefit obligation | 116,253 | 119,572 | -3,319 |
Other fixed liabilities | 26,310 | 30,592 | -4,282 |
Total Fixed Liabilities | 505,472 | 483,159 | 22,313 |
Total Liabilities | 1,108,522 | 1,148,860 | -40,338 |
Minority Interest | 54,198 | 51,048 | 3,150 |
Shareholders’ Investment | |||
Common stock | 120,489 | 120,461 | 28 |
Additional paid-in capital | 171,656 | 171,628 | 28 |
Retained earnings | 414,176 | 385,741 | 28,435 |
Accumulated other comprehensive income | -41,762 | -44,376 | 2,614 |
Treasury stock | -894 | -434 | -460 |
Total Shareholders’ Investment | 663,665 | 633,020 | 30,645 |
Total Liabilities and Shareholders’ Investment | 1,826,385 | 1,832,928 | -6,543 |
Note: Other comprehensive income; | |||
Net unrealized holding gains on available-for-sale securities | 9,466 | 10,566 | -1,100 |
Pension liability adjustments | -35,185 | -39,710 | 4,525 |
Net unrealized gains (losses) on derivative instruments | -183 | -207 | 24 |
Cumulative translation adjustments | -15,860 | -15,025 | -835 |
Reference: Exchange rate | September 30, 2002 | March 31, 2002 | |
US$ 1 | ¥122.60 | ¥133.25 | |
EURO 1 | ¥120.37 | ¥116.14 | |
5. Retained Earnings | |||
For the half year ended September 30, 2002 and year ended March 31, 2002 | (Millions of yen) | ||
Half year ended September 30, 2002 | Year ended March 31, 2002 | ||
Retained earnings (beginning balance) | 385,741 | 332,447 | |
Net income | 33,525 | 61,614 | |
Cash dividends | 5,090 | 8,320 | |
Retained earnings (ending balance) | 414,176 | 385,741 | |
17 |
6. Statements of Cash Flow (Consolidated) | |||
For the half year ended September 30, 2002, 2001 and year ended March 31, 2002 | (Millions of yen) | ||
Half year ended September 30, 2002 | Half year ended September 30, 2001 | Year ended March 31, 2002 | |
I. Cash Flows from Operating Activities: | |||
1. Net income | 33,525 | 28,408 | 61,614 |
2. Adjustments to reconcile net income to net cash | |||
provided by operating activities— | |||
Depreciation and amortization | 36,782 | 33,113 | 73,782 |
Equity in earnings of affiliates, net of dividends received | -670 | -557 | -1,260 |
Deferred income taxes | -5,030 | 342 | -1,218 |
Loss on disposal and sales of tangible fixed assets | 777 | 856 | 1,665 |
Changes in assets and liabilities— | |||
Decrease (increase) in trade receivables | 30,129 | 3,201 | -20,006 |
Decrease in inventories | 9,521 | 10,955 | 21,194 |
Increase in finance receivables | -20,230 | -11,139 | -13,620 |
Decrease in trade payables | -5,339 | -18,863 | -19,535 |
Decrease in accrued income taxes and | |||
accrued expenses and other | -2,004 | -16,443 | -13,592 |
Retirement benefit obligation, net | 5,354 | 5,428 | 8,374 |
Other, net | 16,304 | 9,697 | 7,740 |
Net cash provided by operating activities | 99,119 | 44,998 | 105,138 |
II. Cash Flows from Investing Activities: | |||
1. Proceeds from sales of plant and equipment | 174 | 452 | 756 |
2. Expenditures for tangible fixed assets | -36,576 | -39,646 | -75,231 |
3. Payments for purchases of available-for-sale securities | -22,019 | -5,903 | -10,025 |
4. Proceeds from sales of available-for-sale securities | 22,133 | 6,819 | 24,568 |
5. (Increase) decrease in investments in and advances to affiliates | -586 | 26 | 5 |
6. Decrease (increase) in time deposits | 3,815 | -4,804 | -477 |
7. Other, net | -336 | -6,821 | -21,017 |
Net cash used in investing activities | -33,395 | -49,877 | -81,421 |
III. Cash Flows from Financing Activities: | |||
1. Proceeds from long-term indebtedness | 51,032 | 20,549 | 71,075 |
2. Repayment of long-term indebtedness | -11,559 | -34,832 | -79,640 |
3. Decrease in short-term borrowings, net | -48,641 | -4,739 | -39,414 |
4. Proceeds from issuance of long-term debt securities | 10,000 | 39,500 | 103,500 |
5. Repayment of long-term debt securities | -11,553 | -10,000 | -10,000 |
6. Cash dividends paid | -5,089 | -4,156 | -8,322 |
7. Other, net | -752 | -276 | -964 |
Net cash provided by (used in) financing activities | -16,562 | 6,046 | 36,235 |
IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents | -1,916 | 766 | 2,474 |
V. Net Increase in Cash and Cash Equivalents | 47,246 | 1,933 | 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 | 217,418 | 109,679 | 170,172 |
*…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 8. Significant Accounting Policies (Consolidated) (6)) | |||
18 |
7. Segment Information | ||||
(1) Industry Segment Information | ||||
For the three months ended September 30, 2002 and 2001. | (Millions of yen) | |||
Three months ended September 30, 2002 | Three months ended September 30, 2001 | Change | % | |
Net sales: | ||||
Office Equipment | 371,990 | 361,525 | 10,465 | 2.9 |
Other Businesses | 57,314 | 47,510 | 9,804 | 20.6 |
Intersegment | -754 | -911 | 157 | -17.2 |
Total | 428,550 | 408,124 | 20,426 | 5.0 |
Operating expenses | ||||
Office Equipment | 325,007 | 319,097 | 5,910 | 1.9 |
Other Businesses | 60,766 | 46,771 | 13,995 | 29.9 |
Intersegment | -736 | -936 | 200 | -21.4 |
Corporate | 18,112 | 14,900 | 3,212 | 21.6 |
Total | 403,149 | 379,832 | 23,317 | 6.1 |
Operating income: | ||||
Office Equipment | 46,983 | 42,428 | 4,555 | 10.7 |
Operating income on office equipment sales(%) | 12.6 | 11.7 | 0.9 | |
Other Businesses | -3,452 | 739 | -4,191 | - |
Operating income on other business sales(%) | -6.0 | 1.6 | -7.6 | |
Intersegment | -18 | 25 | -43 | - |
Corporate | -18,112 | -14,900 | -3,212 | 21.6 |
Consolidated operating income | 25,401 | 28,292 | -2,891 | -10.2 |
Other income(expenses) | -1,998 | -2,949 | 951 | -32.2 |
Income before income tax | 23,403 | 25,343 | -1,940 | -7.7 |
Identificable assets: | ||||
Office Equipment | 1,168,995 | 1,174,019 | -5,024 | -0.4 |
Other Businesses | 184,776 | 172,132 | 12,644 | 7.3 |
Elimination | -6,851 | -8,722 | 1,871 | -21.5 |
Corporate assets | 479,465 | 375,613 | 103,852 | 27.6 |
Total | 1,826,385 | 1,713,042 | 113,343 | 6.6 |
Capital expenditure: | ||||
Office Equipment | 19,352 | 20,008 | -656 | -3.3 |
Other Businesses | 1,194 | 1,368 | -174 | -12.7 |
Corporate | 266 | 487 | -221 | -45.4 |
Total | 20,812 | 21,863 | -1,051 | -4.8 |
Depreciation and Amortization: | ||||
Office Equipment | 14,411 | 15,988 | -1,577 | -9.9 |
Other Businesses | 1,802 | 1,397 | 405 | 29.0 |
Corporate | 699 | 579 | 120 | 20.7 |
Total | 16,912 | 17,964 | -1,052 | -5.9 |
19 |
For the half years ended September 30, 2002 and 2001, and year ended March 31, 2002. | (Millions of yen) | ||||
Half year ended September 30, 2002 | Half year ended September 30, 2001 | Change | % | Year ended March 31, 2002 | |
Net sales: | |||||
Office Equipment | 749,357 | 729,573 | 19,784 | 2.7 | 1,485,389 |
Other Businesses | 108,956 | 92,576 | 16,380 | 17.7 | 190,815 |
Intersegment | -1,492 | -2,062 | 570 | -27.6 | -3,864 |
Total | 856,821 | 820,087 | 36,734 | 4.5 | 1,672,340 |
Operating expenses: | |||||
Office Equipment | 655,773 | 645,127 | 10,646 | 1.7 | 1,304,079 |
Other Businesses | 112,047 | 91,216 | 20,831 | 22.8 | 187,424 |
Intersegment | -1,487 | -2,087 | 600 | -28.7 | -3,893 |
Corporate | 29,160 | 25,927 | 3,233 | 12.5 | 55,035 |
Total | 795,493 | 760,183 | 35,310 | 4.6 | 1,542,645 |
Operating income: | |||||
Office Equipment | 93,584 | 84,446 | 9,138 | 10.8 | 181,310 |
Operating income on office equipment sales(%) | 12.5 | 11.6 | 0.9 | 12.2 | |
Other Businesses | -3,091 | 1,360 | -4,451 | - | 3,391 |
Operating income on other business sales(%) | -2.8 | 1.5 | -4.3 | 1.8 | |
Intersegment | -5 | 25 | -30 | - | 29 |
Corporatee | -29,160 | -25,927 | -3,233 | 12.5 | -55,035 |
Consolidated operating income | 61,328 | 59,904 | 1,424 | 2.4 | 129,695 |
Other income(expenses) | -5,655 | -7,380 | 1,725 | -23.4 | -15,745 |
Income before income tax | 55,673 | 52,524 | 3,149 | 6.0 | 113,950 |
Identificable assets: | |||||
Office Equipment | 1,168,995 | 1,174,019 | -5,024 | -0.4 | 1,219,723 |
Other Businesses | 184,776 | 172,132 | 12,644 | 7.3 | 185,158 |
Elimination | -6,851 | -8,722 | 1,871 | -21.5 | -6,991 |
Corporate assets | 479,465 | 375,613 | 103,852 | 27.6 | 435,038 |
Total | 1,826,385 | 1,713,042 | 113,343 | 6.6 | 1,832,928 |
Capital expenditure: | |||||
Office Equipment | 35,202 | 36,300 | -1,098 | -3.0 | 68,513 |
Other Businesses | 2,673 | 2,510 | 163 | 6.5 | 5,633 |
Corporate | 546 | 1,007 | -461 | -45.8 | 1,530 |
Total | 38,421 | 39,817 | -1,396 | -3.5 | 75,676 |
Depreciation and Amortization: | |||||
Office Equipment | 29,718 | 29,298 | 420 | 1.4 | 64,426 |
Other Businesses | 3,115 | 2,928 | 187 | 6.4 | 7,448 |
Corporate | 1,062 | 887 | 175 | 19.7 | 1,908 |
Total | 33,895 | 33,113 | 782 | 2.4 | 73,782 |
20 |
(2) Geographic Segment Information | ||||
For the three months ended September 30, 2002 and 2001. | (Millions of yen) | |||
Three months ended September 30, 2002 | Three months ended September 30, 2001 | Change | % | |
Net sales: | ||||
Japan | ||||
Unaffiliated Customers | 238,610 | 232,155 | 6,455 | 2.8 |
Intersegment | 74,386 | 71,671 | 2,715 | 3.8 |
Total | 312,996 | 303,826 | 9,170 | 3.0 |
The Americas | ||||
Unaffiliated Customers | 82,734 | 82,612 | 122 | 0.1 |
Intersegment | 1,278 | 1,873 | -595 | -31.8 |
Total | 84,012 | 84,485 | -473 | -0.6 |
Europe | ||||
Unaffiliated Customers | 82,046 | 71,580 | 10,466 | 14.6 |
Intersegment | 535 | 1,224 | -689 | -56.3 |
Total | 82,581 | 72,804 | 9,777 | 13.4 |
Other | ||||
Unaffiliated Customers | 25,160 | 21,777 | 3,383 | 15.5 |
Intersegment | 19,254 | 14,666 | 4,588 | 31.3 |
Total | 44,414 | 36,443 | 7,971 | 21.9 |
Intersegment | -95,453 | -89,434 | -6,019 | 6.7 |
Total | 428,550 | 408,124 | 20,426 | 5.0 |
Operating expenses: | ||||
Japan | 301,485 | 283,945 | 17,540 | 6.2 |
The Americas | 77,845 | 81,414 | -3,569 | -4.4 |
Europe | 78,871 | 70,640 | 8,231 | 11.7 |
Other | 42,112 | 34,979 | 7,133 | 20.4 |
Corporate and eliminations | -97,164 | -91,146 | -6,018 | 6.6 |
Total | 403,149 | 379,832 | 23,317 | 6.1 |
Operating income: | ||||
Japan | 11,511 | 19,881 | -8,370 | -42.1 |
Operating income on sales in Japan (%) | 3.7 | 6.5 | -2.9 | |
The Americas | 6,167 | 3,071 | 3,096 | 100.8 |
Operating income on sales in The America (%) | 7.3 | 3.6 | 3.7 | |
Europe | 3,710 | 2,164 | 1,546 | 71.4 |
Operating income on sales in Europe (%) | 4.5 | 3.0 | 1.5 | |
Other | 2,302 | 1,464 | 838 | 57.2 |
Operating income on sales in other regions (%) | 5.2 | 4.0 | 1.2 | |
Corporate and eliminations | 1,711 | 1,712 | -1 | -0.1 |
Consolidated operating income | 25,401 | 28,292 | -2,891 | -10.2 |
Other income(expenses) | -1,998 | -2,949 | 951 | -32.2 |
Income before income tax | 23,403 | 25,343 | -1,940 | -7.7 |
Identifiable assets: | ||||
Japan | 1,047,667 | 1,040,786 | 6,881 | 0.7 |
The Americas | 204,813 | 210,771 | -5,958 | -2.8 |
Europe | 165,816 | 159,918 | 5,898 | 3.7 |
Other | 59,483 | 60,453 | -970 | -1.6 |
Eliminations | -130,859 | -134,499 | 3,640 | -2.7 |
Corporate assets | 479,465 | 375,613 | 103,852 | 27.6 |
Total | 1,826,385 | 1,713,042 | 113,343 | 6.6 |
21 |
For the half year ended September 30, 2002 and 2001, and year ended March 31, 2002. | (Millions of yen) | ||||
Half year ended September 30, 2002 | Half year ended September 30, 2001 | Change | % | Year ended March 31, 2002 | |
Net sales: | |||||
Japan | |||||
Unaffiliated Customers | 478,814 | 467,270 | 11,544 | 2.5 | 938,946 |
Intersegment | 152,398 | 150,594 | 1,804 | 1.2 | 309,745 |
Total | 631,212 | 617,864 | 13,348 | 2.2 | 1,248,691 |
The Americas | |||||
Unaffiliated Customers | 164,940 | 162,139 | 2,801 | 1.7 | 338,016 |
Intersegment | 2,537 | 3,365 | -828 | -24.6 | 8,937 |
Total | 167,477 | 165,504 | 1,973 | 1.2 | 346,953 |
Europe | |||||
Unaffiliated Customers | 165,668 | 147,786 | 17,882 | 12.1 | 309,086 |
Intersegment | 1,432 | 2,160 | -728 | -33.7 | 4,265 |
Total | 167,100 | 149,946 | 17,154 | 11.4 | 313,351 |
Other | |||||
Unaffiliated Customers | 47,399 | 42,892 | 4,507 | 10.5 | 86,292 |
Intersegment | 34,830 | 29,179 | 5,651 | 19.4 | 60,655 |
Total | 82,229 | 72,071 | 10,158 | 14.1 | 146,947 |
Intersegment | -191,197 | -185,298 | -5,899 | 3.2 | -383,602 |
Total | 856,821 | 820,087 | 36,734 | 4.5 | 1,672,340 |
Operating expenses: | |||||
Japan | 593,978 | 564,897 | 29,081 | 5.1 | 1,142,522 |
The Americas | 159,936 | 163,283 | -3,347 | -2.0 | 335,521 |
Europe | 160,097 | 145,242 | 14,855 | 10.2 | 301,152 |
Other | 77,669 | 69,398 | 8,271 | 11.9 | 139,874 |
Corporate and eliminations | -196,187 | -182,637 | -13,550 | 7.4 | -376,424 |
Total | 795,493 | 760,183 | 35,310 | 4.6 | 1,542,645 |
Operating income: | |||||
Japan | 37,234 | 52,967 | -15,733 | -29.7 | 106,169 |
Operating income on sales in Japan (%) | 5.9 | 8.6 | -2.7 | 8.5 | |
The Americas | 7,541 | 2,221 | 5,320 | 239.5 | 11,432 |
Operating income on sales in The America (%) | 4.5 | 1.3 | 3.2 | 3.3 | |
Europe | 7,003 | 4,704 | 2,299 | 48.9 | 12,199 |
Operating income on sales in Europe (%) | 4.2 | 3.1 | 1.1 | 3.9 | |
Other | 4,560 | 2,673 | 1,887 | 70.6 | 7,073 |
Operating income on sales in other regions (%) | 5.5 | 3.7 | 1.8 | 4.8 | |
Corporate and eliminations | 4,990 | -2,661 | 7,651 | - | -7,178 |
Consolidated operating income | 61,328 | 59,904 | 1,424 | 2.4 | 129,695 |
Other income(expenses) | -5,655 | -7,380 | 1,725 | -23.4 | -15,745 |
Income before income tax | 55,673 | 52,524 | 3,149 | 6.0 | 113,950 |
Identifiable assets: | |||||
Japan | 1,047,667 | 1,040,786 | 6,881 | 0.7 | 1,084,387 |
The Americas | 204,813 | 210,771 | -5,958 | -2.8 | 228,743 |
Europe | 165,816 | 159,918 | 5,898 | 3.7 | 172,408 |
Other | 59,483 | 60,453 | -970 | -1.6 | 61,549 |
Eliminations | -130,859 | -134,499 | 3,640 | -2.7 | -149,197 |
Corporate assets | 479,465 | 375,613 | 103,852 | 27.6 | 435,038 |
Total | 1,826,385 | 1,713,042 | 113,343 | 6.6 | 1,832,928 |
22 |
8.Significant Accounting Policies (Consolidated) |
1. Items relating to the scale of consolidation and the application of the equity method |
Consolidated subsidiaries: |
5 additions including Ricoh Software Technology (Shanghai) Co., Ltd. |
7 removals including INRG Hong Kong Ltd. |
Companies accounted for by the equity method: |
1 addition: Ricres Co.,Ltd. |
8 removals including Ricoh San-ai Tourist Co.,Ltd. |
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. |
(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) Goodwill and 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 and Free Financial 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 ¥49,277 million and ¥27,664 million and to decrease equivalently Marketable securities on balance sheet as of September 30, 2001 and March 31, 2002, respectively, and net cash used in investing activities decrease by ¥5,938 million and increase by ¥15,629 million in consolidated statements of cash flow for half year ended September 30, 2001 and year ended March 31, 2002. |
23 |
(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. |
3. Note |
New Accounting Standards |
From year ended March 31, 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 has completed the transitional impairment test for existing goodwill as required by SFAS No. 142. Ricoh has determined that the fair value of each reporting unit which includes goodwill is in excess of its carrying amount. Accordingly, no impairment loss was recorded for goodwill upon the adoption of SFAS No. 142. |
24 |
9. Notes to Consolidated Financial Statements | ||||
(1) Fair Value of Marketable Securities | ||||
The non-marketable securities as of September 30, 2002 and March 31, 2002 primarily relate to less than 20%-owned companies. | ||||
The securities and the respective cost, gross unrealized holding gains, gross unrealized holding losses and fair value as of September 30, 2002 and March 31, 2002 are as follows: | ||||
(Millions of yen) | ||||
Half year ended September 30, 2002 | ||||
Cost | Gross unrealized holding gains | Gross unrealized holding losses | Fair value | |
Current: | ||||
Corporate debt securities | 2,119 | - | 1 | 2,118 |
Other | - | - | - | - |
2,119 | - | 1 | 2,118 | |
Noncurrent: | ||||
Equity securities | 7,582 | 5,931 | 647 | 12,866 |
Corporate debt securities | 15,020 | 6 | 97 | 14,929 |
Other | 10,294 | 5 | 1,140 | 9,159 |
Nonmarketable securities | 7,519 | - | - | 7,519 |
40,415 | 5,942 | 1,884 | 44,473 | |
(Millions of yen) | ||||
Year ended March 31, 2002 | ||||
Cost | Gross unrealized holding gains | Gross unrealized holding losses | Fair value | |
Current: | ||||
Corporate debt securities | 21,338 | 1,205 | 12 | 22,531 |
Other | 404 | - | - | 404 |
21,742 | 1,205 | 12 | 22,935 | |
Noncurrent: | ||||
Equity securities | 7,457 | 6,025 | 469 | 13,013 |
Corporate debt securities | 20 | 6 | - | 26 |
Other | 10,612 | 205 | 519 | 10,298 |
Nonmarketable securities | 5,549 | - | - | 5,549 |
23,638 | 6,236 | 988 | 28,886 | |
*…Effective from April 1, 2002, short-term investment securities, which are available-for-sale at any time, such as Money Management Funds, are included in cash equivalents. Result for prior years are restated. (See 8. Significant Accounting Policies (Consolidated) (6)) | ||||
25 |
(2) Derivative | ||
The Company and certain of its subsidiaries enter into various financial instrument contracts in the normal course of business and in connection with the management of their assets and liabilities. | ||
From fiscal year ended March 31, 2002, the Company adopted FASB Statement No. 133 and FASB Statement No. 138, based on which changes in the fair values of all derivative instruments are recognized as assets or liabilities in the consolidated balance sheets. | ||
The Company and certain of its subsidiaries enter into foreign currency contracts and foreign currency options to hedge assets and liabilities denominated in foreign currencies. | ||
Ricoh enters into interest rate swap agreements to reduce interest rate risk and the fair value of the principal on its outstanding debt and to lower the risks of cash flow fluctuations. Most of these agreements are designated as fair value hedges and cash flow hedges in line with FASB Statement No. 133. | ||
Fluctuations in the fair value of derivative instruments designated as fair value hedges are recorded as other income (expenses) in the consolidated statements of income. These amounts did not materially affect Ricoh's consolidated results of operations in the half year ended September 30, 2002. | ||
Fluctuations in the fair value of derivative instruments designated as cash flow hedges are recorded as accumulated other comprehensive income (loss) in the consolidated balance sheets. They are transferred to the consolidated statements of income once interest for the hedged loans are accrued. Of accumulated other comprehensive income (loss) as of September 30, 2002, Ricoh expects to recognize losses in amount of ¥147 million in the consolidated statements of income within the following 12 months. | ||
These derivative instruments exposed to credit risk in the event of nonperformance by counterparties. However, these counterparties are financial institutions with high credit ratings, so Ricoh deems the credit risk negligible. The Company has optimally concentrated credit risk by diversifying its dealings with counterparties. | ||
The outstanding agreements, carrying amount and estimated fair value of derivative financial instruments as of March 31, 2002, and September 30, 2002 are as follows: | ||
(Millions of yen) | ||
Half year ended September 30, 2002 | ||
Carrying amount | Estimated Fair value | |
Interest rate swap agreements, net | 4,158 | 4,158 |
Foreign currency contracts-net credit | -157 | -157 |
Currency options-net credit | -482 | -482 |
Total | 3,519 | 3,519 |
(Millions of yen) | ||
Year ended March 31, 2002 | ||
Carrying amount | Estimated Fair value | |
Interest rate swap agreements, net | 4,081 | 4,081 |
Foreign currency contracts-net credit | -8,304 | -8,304 |
Currency options | -314 | -314 |
Total | -4,537 | -4,537 |
(3) Transactions of Ricoh with affiliates | (Millions of yen) | |
September 30, 2002 | March 31, 2002 | |
Account balances: | ||
Receivables | 6,306 | 8,513 |
Payables | 2,191 | 2,858 |
(Millions of yen) | ||
Half year ended September 30, 2002 | Year ended March 31, 2002 | |
Transactions: | ||
Sales | 14,541 | 25,413 |
Purchases | 10,684 | 15,584 |
Dividend income | 938 | 1,133 |
26 |
Ricoh Company, Ltd. | ||||
INTERIM REPORT -APPENDIX- (Half year ended September 30, 2002) | ||||
1. Quarterly Performance Outline (Consolidated) | ||||
1st Quarter ended | Change | 2nd Quarter ended | Change | |
June 30, ’02 | (%) | September 30, ’02 | (%) | |
Net sales (billions of yen) | 428.2 | 4.0 | 428.5 | 5.0 |
Gross profit (billions of yen) | 186.4 | 7.2 | 174.1 | 3.7 |
Operating income (billions of yen) | 35.9 | 13.6 | 25.4 | -10.2 |
Income before income taxes (billions of yen) | 32.2 | 18.7 | 23.4 | -7.7 |
Net income (billions of yen) | 19.5 | 31.2 | 14.0 | 3.5 |
Interim (net) income per share (yen) | 26.85 | - | 19.26 | - |
Capital expenditure (billions of yen) | 17.6 | - | 20.8 | - |
Depreciation for tangible fixed assets (billions of yen) | 16.9 | - | 16.9 | - |
R&D expenditure (billions of yen) | 18.4 | - | 21.7 | - |
Interest income (expenses) net (billions of yen) | -0.7 | - | -1.2 | - |
Exchange rate (Yen/US$) | 127.01 | - | 119.19 | - |
Exchange rate (Yen/EURO) | 116.56 | - | 117.34 | - |
27 |
2. Quarterly Sales by Product Category (Consolidated) | ||||||||
(Billions of yen) | ||||||||
1Q ended June 30,'02 | Change % | Change excluding exchange rate effect % | 2Q ended Sept. 30,'02 | Change % | Change excluding exchange rate effect % | |||
<Office Equipment> | ||||||||
Imaging Solutions: | ||||||||
Digital Imaging Systems | 156.2 | 0.7 | -2.3 | 153.0 | -2.4 | -3.6 | ||
Domestic | 70.9 | -12.7 | -12.7 | 64.9 | -8.9 | -8.9 | ||
Overseas | 85.3 | 15.4 | 9.1 | 88.1 | 3.1 | 0.9 | ||
Other Imaging Systems | 63.6 | -16.8 | -19.8 | 57.3 | -17.9 | -19.4 | ||
Domestic | 22.4 | -19.8 | -19.8 | 18.5 | -21.5 | -21.5 | ||
Overseas | 41.2 | -15.1 | -19.8 | 38.7 | -16.1 | -18.2 | ||
Total Imaging Solutions | 219.9 | -5.1 | -8.1 | 210.4 | -7.2 | -8.4 | ||
Domestic | 93.3 | -14.5 | -14.5 | 83.4 | -12.1 | -12.1 | ||
Overseas | 126.5 | 3.3 | -2.3 | 126.9 | -3.6 | -5.8 | ||
Networking input/output systems: | ||||||||
Printing Systems | 94.6 | 22.2 | 18.1 | 94.7 | 33.5 | 31.4 | ||
Domestic | 40.1 | 27.4 | 27.4 | 41.9 | 21.8 | 21.8 | ||
Overseas | 54.5 | 18.7 | 11.8 | 52.8 | 44.6 | 40.4 | ||
Other Input/Output Systems | 15.8 | 56.0 | 55.2 | 13.6 | 40.5 | 38.9 | ||
Domestic | 3.4 | -13.2 | -13.2 | 2.4 | -26.6 | -26.6 | ||
Overseas | 12.4 | 100.7 | 99.4 | 11.1 | 76.6 | 74.1 | ||
Total Networking input/output systems | 110.5 | 26.1 | 22.4 | 108.4 | 34.4 | 32.3 | ||
Domestic | 43.5 | 22.8 | 22.8 | 44.4 | 17.4 | 17.4 | ||
Overseas | 66.9 | 28.4 | 22.2 | 64.0 | 49.4 | 45.4 | ||
Network system solutions | 46.9 | -3.8 | -3.9 | 53.1 | -2.0 | -2.0 | ||
Domestic | 46.2 | -4.3 | -4.3 | 52.4 | -2.2 | -2.2 | ||
Overseas | 0.6 | 60.8 | 49.6 | 0.6 | 19.8 | 15.2 | ||
Office Equipment Total | 377.3 | 2.5 | -0.2 | 371.9 | 2.9 | 1.6 | ||
Domestic | 183.2 | -5.1 | -5.1 | 180.3 | -3.2 | -3.2 | ||
Overseas | 194.1 | 10.9 | 5.1 | 191.6 | 9.4 | 6.8 | ||
< Other Businesses > | ||||||||
Other Businesses | 50.9 | 15.9 | 14.9 | 56.5 | 21.4 | 20.7 | ||
Domestic | 41.6 | 16.5 | 16.5 | 44.3 | 18.0 | 18.0 | ||
Overseas | 9.2 | 13.2 | 7.6 | 12.1 | 35.3 | 31.7 | ||
Grand Total | 428.2 | 4.0 | 1.4 | 428.5 | 5.0 | 3.8 | ||
Domestic | 224.8 | -1.7 | -1.7 | 224.7 | 0.3 | 0.3 | ||
Overseas | 203.4 | 11.0 | 5.2 | 203.8 | 10.7 | 8.0 | ||
The Americas | 84.1 | 5.4 | 1.8 | 86.2 | 4.2 | 6.2 | ||
Europe | 83.2 | 9.3 | 1.0 | 82.9 | 15.2 | 6.8 | ||
Other | 35.9 | 32.5 | 27.0 | 34.6 | 17.9 | 16.1 | ||
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 | MFPs(multifunctional printers), laser printers, related supplies, services and software | |||||||
Other Input/Output Systems | Optical discs and system scanners | |||||||
Network System Solutions | Personal computers, PC servers, network systems, network related software, and service/support | |||||||
Other Businesses | Digital cameras, analog cameras, semiconductors | |||||||
Reference: | Three months ended | Three months ended | ||||||
Exchange rate | June 30, ’02 | September 30, ’02 | ||||||
US$ 1 | ¥127.01 | ¥119.19 | ||||||
EURO 1 | ¥116.56 | ¥117.34 | ||||||
28 |
3. Forecast (Consolidated) | ||||
(1) Performance Outline (Consolidated) | ||||
Year ended March 31, 2002 | Half year ended September 30, 2002 | 2nd half year ended March 31, 2003 | Year ended March 31, 2003 | |
(Forecast) | (Forecast) | |||
Net sales (billions of yen) | 1,672.3 | 856.8 | 893.1 | 1,750.0 |
(% change from the previous corresponding period) | 8.7 | 4.5 | 4.8 | 4.6 |
Gross profit (billions of yen) | 699.9 | 360.6 | 377.8 | 738.5 |
(% change from the previous corresponding period) | 14.1 | 5.5 | 5.5 | 5.5 |
Operating income (billions of yen) | 129.6 | 61.3 | 72.6 | 134.0 |
(% change from the previous corresponding period) | 23.4 | 2.4 | 4.1 | 3.3 |
Income before income taxes (billions of yen) | 113.9 | 55.6 | 65.8 | 121.5 |
(% change from the previous corresponding period) | 16.6 | 6.0 | 7.2 | 6.6 |
Net income (billions of yen) | 61.6 | 33.5 | 37.4 | 71.0 |
(% change from the previous corresponding period) | 15.8 | 18.0 | 12.9 | 15.2 |
Net income per share (yen) | 88.27 | 46.11 | 51.56 | 97.67 |
Capital expenditure (billions of yen) | 75.6 | 38.4 | 43.6 | 82.0 |
Depreciation for tangible fixed assets (billions of yen) | 73.7 | 33.8 | 41.2 | 75.0 |
R&D expenditure (billions of yen) | 80.7 | 40.2 | 42.8 | 83.0 |
Interest income (expenses) net (billions of yen) | -3.4 | -1.9 | -2.2 | -4.2 |
Exchange rate (Yen/US$) | 125.10 | 123.08 | 120.00 | 121.54 |
Exchange rate (Yen/EURO) | 110.60 | 116.95 | 115.00 | 115.98 |
29 |
(2) Forecast of Sales by Product Category (Consolidated) | |||||||||
(Billions of yen) | |||||||||
Half year ended Sept.30,'02 | Half year ended March 31,2003 | Year ended March 31,2003 | |||||||
Forecast | Change % | Forecast(*) | Change % | Forecast | Change % | Forecast(*) | Change % | ||
<Office Equipment> | |||||||||
Imaging Solutions: | |||||||||
Digital Imaging Systems | 309.3 | 315.6 | -7.8 | 318.6 | -7.0 | 625.0 | -4.5 | 621.5 | -5.0 |
Domestic | 135.8 | 135.1 | -5.0 | 135.1 | -5.0 | 271.0 | -8.1 | 271.0 | -8.1 |
Overseas | 173.5 | 180.4 | -9.8 | 183.5 | -8.3 | 354.0 | -1.6 | 350.5 | -2.5 |
Other Imaging Systems | 120.9 | 100.5 | -24.6 | 102.4 | -23.2 | 221.5 | -20.8 | 220.1 | -21.3 |
Domestic | 40.9 | 35.5 | -22.4 | 35.5 | -22.4 | 76.5 | -21.4 | 76.5 | -21.4 |
Overseas | 80.0 | 64.9 | -25.8 | 66.8 | -23.7 | 145.0 | -20.5 | 143.6 | -21.3 |
Total Imaging Solutions | 430.3 | 416.1 | -12.6 | 421.0 | -11.5 | 846.5 | -9.4 | 841.6 | -9.9 |
Domestic | 176.8 | 170.6 | -9.3 | 170.6 | -9.3 | 347.5 | -11.4 | 347.5 | -11.4 |
Overseas | 253.5 | 245.4 | -14.7 | 250.3 | -13.0 | 499.0 | -7.9 | 494.1 | -8.8 |
Networking input/output systems: | |||||||||
Printing Systems | 189.4 | 228.5 | 51.6 | 230.8 | 53.0 | 418.0 | 39.7 | 415.5 | 38.9 |
Domestic | 82.0 | 92.9 | 23.4 | 92.9 | 23.4 | 175.0 | 23.9 | 175.0 | 23.9 |
Overseas | 107.3 | 135.6 | 79.7 | 137.8 | 82.7 | 243.0 | 53.8 | 240.5 | 52.3 |
Other Input/Output Systems | 29.5 | 32.9 | 31.2 | 32.7 | 30.2 | 62.5 | 38.8 | 62.0 | 37.7 |
Domestic | 5.9 | 5.0 | -33.5 | 5.0 | -33.5 | 11.0 | -26.5 | 11.0 | -26.5 |
Overseas | 23.5 | 27.9 | 59.2 | 27.6 | 57.7 | 51.5 | 71.4 | 51.0 | 69.7 |
Total Networking input/output systems | 218.9 | 261.5 | 48.7 | 263.5 | 49.8 | 480.5 | 39.6 | 477.5 | 38.7 |
Domestic | 87.9 | 98.0 | 18.2 | 98.0 | 18.2 | 186.0 | 19.0 | 186.0 | 19.0 |
Overseas | 130.9 | 163.5 | 75.9 | 165.4 | 77.9 | 294.5 | 56.6 | 291.5 | 55.0 |
Network system solutions | 100.0 | 104.4 | 0.4 | 104.4 | 0.4 | 204.5 | -1.2 | 204.4 | -1.2 |
Domestic | 98.7 | 102.2 | -0.4 | 102.2 | -0.4 | 201.0 | -1.8 | 201.0 | -1.8 |
Overseas | 1.2 | 2.2 | 59.0 | 2.2 | 60.4 | 3.5 | 50.2 | 3.4 | 48.0 |
Office Equipment Total | 749.3 | 782.1 | 3.5 | 789.0 | 4.4 | 1,531.5 | 3.1 | 1,523.5 | 2.6 |
Domestic | 363.5 | 370.9 | -0.7 | 370.9 | -0.7 | 734.5 | -2.5 | 734.5 | -2.5 |
Overseas | 385.8 | 411.1 | 7.6 | 418.0 | 9.4 | 797.0 | 8.8 | 789.0 | 7.7 |
< Other Businesses > | |||||||||
Other Businesses | 107.4 | 111.0 | 15.1 | 111.3 | 15.5 | 218.5 | 16.9 | 218.0 | 16.6 |
Domestic | 86.0 | 88.4 | 16.0 | 88.4 | 16.0 | 174.5 | 16.6 | 174.5 | 16.6 |
Overseas | 21.4 | 22.5 | 11.9 | 22.8 | 13.5 | 44.0 | 17.8 | 43.5 | 16.6 |
Grand Total | 856.8 | 893.1 | 4.8 | 900.3 | 5.6 | 1,750.0 | 4.6 | 1,741.6 | 4.1 |
Domestic | 449.5 | 459.4 | 2.1 | 459.4 | 2.1 | 909.0 | 0.7 | 909.0 | 0.7 |
Overseas | 407.2 | 433.7 | 7.8 | 440.9 | 9.6 | 841.0 | 9.3 | 832.6 | 8.2 |
The Americas | 170.4 | 178.5 | -0.3 | 189.5 | 5.8 | 349.0 | 2.1 | 358.7 | 5.0 |
Europe | 166.1 | 177.8 | 9.0 | 172.8 | 6.0 | 344.0 | 10.5 | 326.7 | 4.9 |
Other | 70.6 | 77.3 | 28.8 | 78.5 | 30.8 | 148.0 | 26.9 | 147.2 | 26.2 |
* 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 | MFPs(Multifunctional printers), laser printers, related supplies, services and software | ||||||||
Other Input/Output Systems | Optical discs and system scanners | ||||||||
Network System Solutions | Personal computers, PC servers, network systems, network related software, and service/support | ||||||||
Other Businesses | Digital cameras, analog cameras, semiconductors | ||||||||
Reference: | |||||||||
Half year ended | Year ended | Half year ended | Half year ended | Year ended | |||||
Exchange rate | March 31, ’02 | March 31, ’02 | Sept. 30, ’02 | March. 31, ’03 | March 31, ’03 | ||||
US$ 1 | ¥128.06 | ¥125.10 | ¥123.08 | ¥120.00 | ¥121.54 | ||||
EURO 1 | ¥113.42 | ¥110.60 | ¥116.95 | ¥115.00 | ¥115.98 | ||||
30 |
4. 3rd Quarter Performance Forecast (Consolidated) | |||||
For the three months ended December 31, 2002 and 2001 | (Billions of yen) | ||||
Three months ended | Three months ended | Change | |||
December 31, 2001 | December 31, 2002 | ||||
(Forecast) | |||||
Domestic sales | 211.7 | 218.0 | 6.2 | ||
Overseas sales | 189.5 | 212.0 | 22.4 | ||
Net sales | 401.3 | 430.0 | 28.6 | ||
Gross profit | 173.6 | 185.1 | 11.4 | ||
Operating income | 29.7 | 31.5 | 1.7 | ||
Income before income taxes | 25.8 | 27.5 | 1.6 | ||
Net income | 14.8 | 16.1 | 1.2 | ||
Exchange rate | |||||
US$1=¥120.00 (¥123.70 in previous corresponding period) | |||||
EURO1=¥115.00 (¥110.74 in previous corresponding period) | |||||
5. Calculation Information Where the Equity Method Is Applied to Ricoh’s Leasing Subsidiary | |||||
The statements of income and the balance sheets below reflect the application of the equity method where Ricoh Leasing Company, Ltd., is excluded from the consolidated accounts. | |||||
Statements of Income (Half Year ended September 30, 2002) | (Billions of yen) | ||||
Consolidated | Equity Method | ||||
Net sales | 856.8 | 799.7 | |||
Gross profit | 360.6 | 352.0 | |||
Operating income | 61.3 | 54.1 | |||
Income before income taxes | 55.6 | 48.8 | |||
Net income | 33.5 | 33.5 | |||
Balance Sheets (September 30, 2002) | (Billions of yen) | ||||
Consolidated | Equity Method | Consolidated | Equity Method | ||
Current assets | 837.9 | 964.1 | Short-term borrowings | 180.3 | 118.7 |
Fixed assets | 988.4 | 602.2 | Other current Liabilities | 422.6 | 480.3 |
Current assets | 603.0 | 599.1 | |||
Long-term borrowings | 362.9 | 135.7 | |||
Other fixed liabilities | 142.5 | 141.9 | |||
Fixed liabilities | 505.4 | 277.6 | |||
Minority interest | 54.1 | 25.9 | |||
Shareholders’ investment | 663.6 | 663.6 | |||
Assets | 1,826.3 | 1,566.4 | Liabilities and | 1,826.3 | 1,566.4 |
shareholders’ investment | |||||
Key Financial Ratios (Half Year ended September 30, 2002) | |||||
Consolidated | Change from | Equity Method | Change from | ||
previous period | previous period | ||||
Return on assets | 3.0% | 0.0% point | 3.1% | -0.1% point | |
Return on equity | 5.2% | +0.2% point | 5.2% | +0.2% point | |
Equity ratio | 36.3% | +2.4% points | 42.4% | +2.8% points | |
Debt/Total assets | 29.7% | -2.3% points | 16.2% | 0.0% point | |
Debt/Equity | 81.9% | -12.5% points | 38.4% | -2.7% points | |
Total assets turnover | 0.47 | - | 0.51 | - | |
31 |