FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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 2006
Commission File Number 2 - 68279
RICOH COMPANY, LTD.
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(Translation of Registrant's name into English)
13-1, Ginza 8-Chome, Chuo-ku, Tokyo 104-8222, Japan
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(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.)
Form 20-F X Form 40-F __
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): __ )
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): __ )
(Indicate by check mark whether by furnishing the information contained in this
Form, the registrant 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-__ )
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Ricoh Company, Ltd.
------------------------------
(Registrant)
By: /S/ Zenji Miura
------------------------------
Zenji Miura
Director, Chief Financial Officer
Corporate Executive Vice President
October 27, 2006
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[GRAPHIC APPEARS HERE] October 27, 2006
INTERIM REPORT
Half year ended September 30, 2006
(Results for the Period from April 1, 2006 to September 30, 2006)
Three months ended September 30, 2006
(Results for the Period from July 1, 2006 to September 30, 2006)
PERFORMANCE OUTLINE (CONSOLIDATED)
(1) Half year ended September 30, 2006, 2005 and Year ending March 31, 2007
(Forecast)
(Billions of yen)
- -------------------------------------------------------------------------------------------------- ---------------------
Half year ended Half year ended Year ending
September 30, 2006 September 30, 2005 Change March 31, 2007 Change
(Results) (Results) (Forecast)
- ----------------------------------------------------- ------------------ ------------------ ------ -------------- ------
Domestic sales 492.4 477.7 3.1% 1,005.0 4.0%
Overseas sales 494.4 442.1 11.8% 1,062.0 12.6%
Net sales 986.9 919.8 7.3% 2,067.0 8.3%
Gross profit 407.9 385.7 5.8% 854.5 7.5%
Operating income 73.1 65.0 12.5% 170.0 14.4%
Income from continuing operations before income taxes 74.2 67.5 10.0% 168.0 10.0%
Net income 52.0 42.8 21.4% 106.5 9.7%
- ----------------------------------------------------- -------- -------- ------ ------- -----
Exchange rate (Yen/US$) 115.40 109.42 5.98 115.20 1.94
Exchange rate (Yen/EURO) 145.98 135.67 10.31 142.99 5.13
- ----------------------------------------------------- -------- -------- ------ ------- -----
Net income per share (yen) 71.35 58.40 12.95 145.97 13.64
- ----------------------------------------------------- -------- -------- ------ ------- -----
Total assets 2,097.7 1,948.5 149.1 - -
Shareholders' equity 1,008.4 905.6 102.7 - -
Interest-bearing debt 393.7 371.7 21.9 - -
- ----------------------------------------------------- -------- -------- ------ ------- -----
Equity ratio (%) 48.1 46.5 1.6 - -
- ----------------------------------------------------- -------- -------- ------ ------- -----
Shareholders' equity per share (yen) 1,382.14 1,233.08 149.06 - -
- ----------------------------------------------------- -------- -------- ------ ------- -----
Cash flows from operating activities 51.6 71.7 -20.1 - -
Cash flows from investing activities -39.2 -62.0 22.7 - -
Cash flows from financing activities 1.1 -49.7 50.8 - -
Cash and cash equivalents at end of period 203.8 148.0 55.8 - -
- ----------------------------------------------------- -------- -------- ------ ------- -----
Capital expenditures 39.1 58.1 -18.9 85.0 -17.0
Depreciation for tangible fixed assets 33.7 31.1 2.6 72.0 4.5
R&D expenditures 56.5 54.9 1.5 120.0 9.6
- ----------------------------------------------------- -------- -------- ------ ------- -----
(2) Three months ended September 30, 2006 and 2005
(Billions of yen)
- --------------------------------------------------------------------------------------------------
Three months ended Three months ended
September 30, 2006 September 30, 2005 Change
- ----------------------------------------------------- ------------------ ------------------ ------
Domestic sales 252.0 245.2 2.8%
Overseas sales 250.2 223.1 12.2%
Net sales 502.3 468.4 7.2%
Gross profit 205.3 192.2 6.8%
Operating income 32.5 28.6 13.6%
Income from continuing operations before income taxes 35.5 30.3 17.3%
Net income 22.9 19.1 19.7%
- ----------------------------------------------------- -------- -------- ------
Exchange rate (Yen/US$) 116.26 111.22 5.04
Exchange rate (Yen/EURO) 148.16 135.79 12.37
- ----------------------------------------------------- -------- -------- ------
Net income per share (yen) 31.43 26.08 5.35
- ----------------------------------------------------- -------- -------- ------
Capital expenditures 23.2 23.4 -0.2
Depreciation for tangible fixed assets 17.7 15.4 2.3
R&D expenditures 31.1 29.4 1.6
- ----------------------------------------------------- -------- -------- ------
RICOH COMPANY, LTD.
Notes:
* As a result of the sale of a business, the operating results and cash flows
from the discontinued operation have been reclassified in accordance with
Statement of Financial Accounting Standards ("SFAS") No. 144, "Accounting for
the Impairment or Disposal of Long-Lived Assets".
* The Company bases the forecast estimates for March 31, 2007 above upon
information currently available to management, which involves risks and
uncertainties that could cause actual results to differ materially from those
projected.
1
POLICIES
1. Basic Management
The Ricoh Group intends to be the company that gains most from the 21st
century. Based on this group vision, we will continue to contribute both to
productivity improvement and also to knowledge creation for individuals working
anytime, anywhere. This approach will enable us to gain the utmost trust of our
customers and continue to grow and develop our business. Accordingly, our
proactive approach encompasses not only products and services for traditional
office setups, but also customers working in a broadband environment. Our 15th
medium-term management plan - which extends from April 2005 to March 2008 -
features the following five basic management policies:
1. Foster a "Vital and motivated culture" with high objectives and achieve
them;
2. Aim at "World No.1manufacturer" through unique, competitive technology
with leading-edge technologies;
3. Provide customers with "Sensitivity to people's needs", "Sensitivity to
the earth" and "Simplify knowledge creation";
4. Invest smartly in growth areas and expand business foundation; and
5. Innovate group management and maximize capital efficiency.
2. Medium-Term Management Strategies
In terms of Office Solutions segment - our core competence - we in the Ricoh
Group have made every possible effort since the inception of our 13th
medium-term management plan to move beyond the manufacture and retail of
equipment such as copiers and printers so that we may overhaul our operational
structure, thus enabling us to support our customers in their efforts to
improve or enhance productivity through our offering.
In the 14th medium-term management plan, we defined our principal strategy as
"the realization of TDV (i.e., total document volume), thereby broadening our
revenue and earning framework," as we recognize that efficient and effective
Input/Output (I/O), storage, and searching of TDV, which includes printed
material in addition to photocopies, will become a pressing issue for our
customers.
In the 15th medium-term management plan, we set the highest target in the
history. While there are no changes to the direction of business structure
reform and principal strategy of the Ricoh Group in the 15th medium-term
management plan, we will aim to increase our corporate value by more than ever
addressing issues from the customers' standpoint and continuing to provide the
high values that meets customers' expectations.
In the Office Solutions segment, in particular, we are confident that we can
further solidify our business foundation by taking utmost advantage of the
abilities and strengths of the Ricoh Group, such as the comprehensive product
line, customer rapport through sales and service, ability to provide solutions,
global operations, image processing technology, and image processing and
merging technology, to respond to the diverse needs of even greater range of
customers.
In the Office Solutions segment, we have identified "printing" as a certain
area that presents an outstanding opportunity for growth. Consequently, we will
shift a higher portion of our business resources to this area. Namely, we will
continue to advance printing solutions such as BC (black-color) conversion and
TCO (total cost of ownership) reduction solutions in the office, enter the
high-end production printing market, boost low-end color laser printers and
further promote gel jet printers, in order to expand Ricoh's business domain
and size. Furthermore, we will revamp our sales system solutions and solutions
platform to capture a greater share of major customers, particularly major
global accounts.
On the other hand, we will allocate greater business resources to promising
businesses in the Industrial Products. In addition, we will seek for greater
business shares of both the Office Solutions and the Industrial Products in
emerging markets.
As it is a key to have the technological advantage in the market for realizing
customer value, we will continue our aggressive R&D activities to boost our
technological capabilities.
3. Challenges
As customers' needs become ever more diverse, customers are no longer satisfied
with purchasing products or receiving ordinary services. The competition has
also intensified in the transition to color and in the solutions marketing. In
order for the Ricoh Group to achieve growth and development with a focus on
these growth areas, it is essential that we boost our corporate competitiveness
by creating new value for customers and improving managerial efficiency.
In creating customer value, it is important that we forecast customers' needs
and improve our both products and services to meet their needs. To this end, we
will increase the scope of CS (Customer Satisfaction) management, in which we
aggressively cultivate new values by more than ever placing ourselves in the
shoes of our customers. We will also continue to boost our technological
ability to materialize products and services that provide new values.
2
Our effort will also continue to improve the efficiency of corporate management
to enhance our profitability. Structural reform will streamline operational
processes and improve the earnings from each project. Furthermore, we will more
carefully select projects and concentrate resources to the selected projects to
improve managerial efficiency.
The profit generated from such activities will be aggressively allocated to
investments in growth areas and technologies to further increase profits and
raise corporate value.
4. Dividend Policy
Ricoh endeavors to ensure that policies are regularly updated to take the
dividend payout ratio into consideration in the payment of dividends, while at
the same time increasing retained earnings for the enhancement of corporate
structure and the new business generation. Furthermore, these retained earnings
will be used both in the reinforcement of core businesses and for investment in
new fields with both medium-term and long-term perspectives.
5. Concept and Policy of Reducing the Trading Unit
Ricoh plans to keep investment patterns and shareholder composition under close
scrutiny, and we will consider taking the appropriate steps to alter the
minimum investment lot if so required. By reducing the minimum number of shares
required to invest in the company, Ricoh believes that a broader range of
investors can be attracted to equity markets, while at the same time, the
liquidity of this company's shares may be enhanced. Nevertheless, many
investors already trade in Ricoh's shares, and for this reason, management has
concluded that there is no immediate need for reduction of the minimum
investment lots.
Furthermore, we intend to pay attention to the condition of business partners
and of shareholder makeup as we carefully study both the necessity and the
timing of implementation of these measures.
6. Parent Information
Description is omitted since there is no parent company.
3
OPERATING RESULTS & FINANCIAL POSITION
*Overview
The Ricoh Group's consolidated net sales for the first half of fiscal 2007
(extending from April 1, 2006 to March 31, 2007) increased by 7.3% as compared
to the previous corresponding period to Yen 986.9 billion. During this period,
the average yen exchange rates were at Yen 115.40 against the U.S. dollar (down
Yen 5.98) and Yen 145.98 against the Euro (down Yen 10.31). Accordingly, the
sales would have increased by 4.1% excluding the effects of such foreign
currency fluctuations.
As for sales, sales in all the segments such as the Office Solutions,
Industrial Products and Other segments increased. The increase in sales in the
Office Solutions was due to continuous growth in sales of color MFPs and laser
printers, and increase in sales of software and information technologies
service resulting from the expansion of solutions business. The increase in
sales in the Industrial Products was due to the increase in sales of thermal
media products, electronic component products and semiconductor products. The
increase in sales in the Other was due to the increase in sales of financing
services and digital cameras. As a result, overall domestic sales increased by
3.1% as compared to the previous corresponding period, to Yen 492.4 billion and
overall overseas sales increased by 11.8% as compared to the previous
corresponding period, to Yen 494.4 billion. Excluding effects of foreign
currency fluctuations, net sales in overseas would have increased by 5.1% as
compared to the previous corresponding period.
Gross profit increased by 5.8% as compared to the previous corresponding period
to Yen 407.9 billion. This increase was due primarily to the increase in sales
of value-added high-margin products and continuous cost management controls. In
addition, the appreciation of both the U.S. Dollar and the Euro in relation to
the Japanese Yen resulted in an increase in gross profit.
Selling, general and administrative expenses increased by 4.4% as compared to
the previous corresponding period to Yen 334.7 billion. Ricoh incurred the
strategic expenses relating to: (1) investment in research and development
expenses (up Yen 1.5 billion to Yen 56.5 billion, 5.7% compared to the sales)
that includes developments of new main products, (2) information technologies
in connection with development of its core operating systems and (3) the
enhancement of its sales and marketing structure focusing on the solution
proposal and expansion of business area. Selling, general and administrative
expenses as a percentage of net sales decreased by 1.0% as compared to the
previous corresponding period to 33.9% due primarily to the effect of
structural changes such as improvement of core operating systems in Ricoh's
group companies.
As a result, operating income increased by 12.5% as compared to the previous
corresponding period to Yen 73.1 billion.
In the other (income) expenses, both interest expenses and interest income
increased since interest rate was higher than the previous corresponding
period. The foreign exchange gain in the previous corresponding period was
higher relatively. Consequently, the other (income) expenses decreased.
Effective taxes rate was reduced by expansion of tax exemption of R&D expenses.
Income from discontinued operation, net of tax was Yen 5.5 billion. Income from
discontinued operation was related to sales of content delivery service, and
consisted of gain on the sales of the content delivery service operation and
income from operation from the beginning of this fiscal year to the sale. The
sales amount of its content delivery service was Yen 12.0 billion.
As a result, income from continuing operations increased by 11.5% as compared
to the previous corresponding period to Yen 46.5 billion. Net income, including
income from discontinued operation increased by 21.4% as compared to the
previous corresponding period to Yen 52.0 billion.
Ricoh Company, Ltd. has determined that the interim dividend is Yen 13.00 per
share.
[Graph 1] Consolidated performance
The graphs are omitted. The data in the omitted graphs can be shown at the
schedule 1 in APPENDIX B.
4
*Conditions by Product Line
Office Solutions (Sales up 6.6% to Yen 838.0 billion)
- ----------------------------------------------------
The sales in the Office Solutions segment, which consisted of the Imaging
Solutions and the Network System Solutions increased by 6.6% as compared to the
previous corresponding period to Yen 838.0 billion despite the strict
competition regarding the color products and solutions business.
The sales in this segment would have increased by 3.1% excluding the effects of
such foreign currency fluctuations.
Imaging Solutions (Sales up 7.3% to Yen 743.6 billion)
-----------------------------------------------------
The sales of PPCs/MFPs and printers increased in Japan and overseas by
expansion of product line-up and enhancement of solution sales structure.
Especially, the increase in sales of color MFPs increased greatly in both
Japan and overseas due to the launching the new products as a color standard
model in new generation.
Color MFPs: Imagio MP C3500/C4500 in Japan
Aficio MP C2500/C3000 overseas
B&W MFPs: Aficio MP 9000/1100/1350, MP 5500/6500/7500 overseas
Color Printer: IPSiO SP C411, IPSiO SP C710, IPSiO SP C810 in Japan
Aficio SP C410DN/CN411DN overseas
Network System Solutions (Sales up 1.4% to Yen 94.4 billion)
-----------------------------------------------------------
The sales of personal computers and PC servers decrease slightly in Japan,
as compared to the previous corresponding period although the sales of
software and information technologies services increased due mainly to
expanding the solutions business.
Industrial Products (Sales up 16.8% to Yen 68.2 billion)
- -------------------------------------------------------
The sales in the Industrial Products segment increased by 16.8%, as compared to
the previous corresponding period to Yen 68.2 billion. This increase in sales of
semiconductor devices was due primarily to the increase in sales of integrated
circuits used in electronic products such as mobile and cellular phone. The
sales in thermal media business and electronic component business also
increased.
Other (Sales up 7.3% to Yen 80.5 billion)
- ----------------------------------------
Net sales in the Other segment increased by 7.3%, as compared to the previous
corresponding period to Yen 80.5 billion. The increase in sale of digital
cameras and financing services contributed to the favorite performance.
[Graph 2] Consolidated sales by product line
The graphs are omitted. The data in the omitted graphs can be shown at the
schedule 2 in APPENDIX B.
5
* Consolidated Sales by Geographic Area
Japan (Sales up 3.1% to Yen 492.4 billion)
- -----------------------------------------
In Japan, favorable capital investment contributed to the continuous growth in
Japanese economy. In the Office Solutions, Ricoh launched new products and
offered useful solutions in order to create the customers' needs for color
products and solutions. As a result, the sales in software and information
technologies services relating to the solution proposal as well as color MFPs
and laser printer increased. The sales in the Industrial Products and the Other
segments increased as compared to the previous corresponding period due to the
favorable performance of finance services and semiconductor devices, especially
integrated circuits used in electronic products such as mobile and cellular
phone. The sales in Japan increased by 3.1% as compared to the previous
corresponding period.
The Americas (Sales up 10.7% to Yen 203.5 billion)
- -------------------------------------------------
In the Americas, a downturn in the housing market became clear in this first
half year and the growth in economy have slowed. In such conditions, Ricoh
introduced various new products and enhance its sales and marketing structure
to meet the customers' needs for color, networking and high-speed products. As
a result, the sales in the Americas increased as compared to the previous
corresponding period due primarily to the increase in the sales of color MFPs,
high-speed MFP and laser printer. The sales in the Industrial Products
increased resulting from the favorite performance of electronic component. The
sales in the Americas increased by 10.7% as compared to the previous
corresponding period.
Europe (Sales up 12.5% to Yen 226.5 billion)
- -------------------------------------------
The economy in Europe continued to grow slightly. Under such circumstance, in
the Office Solutions, Ricoh launched new color MFPs products and offered
custom-made solutions to customers regardless small or large. The sales in this
segment increased as compared to the previous corresponding period due mainly
to the increase in the sales of color MFPs and laser printer. The sales in the
Industrial Products increased resulting from the favorite performance of
thermal media. The sales in Europe increased by 12.5% as compared to the
previous corresponding period.
Other (Sales up 13.3% to Yen 64.3 billion)
- ------------------------------------------
In the Other including China, Asian countries and Oceania countries, the
increase in export led to the expansion of economy. In the Office Solutions,
the need for coloration and MFPs as office equipment were accelerating. The
increase in sales in color MFPs contributed to the increase in sales in the
Office Solutions segment same as the above other segments. The sales in the
Industrial Products increased resulting from favorite performance of
semiconductor business and Ricoh established new companies both in China and
Korea for devices. As a result, the sales in the Other increased by 13.3% as
compared to the previous corresponding period.
[Graph 3] Consolidated sales by geographic area
The graphs are omitted. The data in the omitted graphs can be shown at the
schedule 3 in APPENDIX B.
6
* Segment Information
Business Segment
- ----------------
Office Solutions
- ----------------
Ricoh worked to promote printing solutions in the Office Solutions segment,
such as BC (black-color) conversion, TCO (Total Cost of Ownership) reduction
solution in the office environment, and document solutions that allow customers
to comprehensively improve work flow. Furthermore, Ricoh expanded its business
scope and size by entering into the high-end production and low-end printing
market in order to enhance its comprehensive offering of printers. With respect
to sales during this half-year period, sales of color MFPs, high-speed MFPs and
laser printers increased, and software and information technologies related
services increased as well. This was attributed to the result of above
measures. As a result, sales in this segment increased by 6.6% as compared to
the previous corresponding period, to Yen 838.0 billion.
In terms of operating expenses, Ricoh incurred strategic expenses such as
investment in research and development that includes development of main
products for the next term, information technologies in connection with the
development of its core operating systems. In addition, expenses relating to
enhancement of promotion for solutions and of sales and marketing structure to
expand its business area, increased in order to impose further measures.
Although operating expenses increased by 6.2% as compared to the previous
corresponding period, operating income increased by 9.2% to Yen 98.7 billion due
to the sales increase.
With respect to capital investment, there was no significant investment during
this period. It was decreased from the previous corresponding period due
primarily to investment in the Ricoh Technology Center in the last fiscal year.
Total assets increased as compared to the previous corresponding period due
primarily to an increase in trade receivables.
Industrial Products
- -------------------
Sales in the semiconductor business increased due primarily to the demand for
integrated circuits used in electronic products, such as mobile and cellular
phones. Sales in the electronic component business and the thermal media
business increased. As a result, net sales in the Industrial Products segment
increased by 18.2% as compared to the previous corresponding period, to Yen 70.5
billion. Operating income increased due to the recovery of semiconductor
business.
Total assets increased due to the sales increase from the previous
corresponding period.
Other
- -----
Sales in the Other segment increased by 7.3% as compared to the previous
corresponding period, to Yen 80.5 billion, reflecting the increase in financing
services and the increase in sales of digital cameras.
Operating income increased as compared to the previous corresponding period due
to the above factors.
Total assets decreased as compared to the previous corresponding period due to
the sale of the content delivery business.
(Billions of yen)
- -----------------------------------------------------------------------------------------
Half year ended Half year ended
September 30, 2006 September 30, 2005 Change (%)
- ---------------------------------------- ------------------ ------------------ ----------
Office Solutions:
Net sales 838.0 786.2 6.6
Operating income 98.7 90.4 9.2
Operating income on sales(%) 11.8 11.5 0.3point
Identifiable assets 1,482.2 1,394.0 6.3
Capital expenditures 34.4 51.4 -33.1
Depreciation 29.4 26.3 11.9
- ---------------------------------------- ------------------ ------------------ ----------
Industrial Products:
Net sales 70.5 59.7 18.2
Operating income 0.8 -0.1 --
Operating income on sales(%) 1.3 -0.3 1.6points
Identifiable assets 89.7 73.2 22.5
Capital expenditures 2.8 4.5 -37.6
Depreciation 2.7 3.1 -13.8
- ---------------------------------------- ------------------ ------------------ ----------
Other:
Net sales 80.5 75.1 7.3
Operating income 1.8 0.2 714.6
Operating income on sales(%) 2.4 0.3 2.1points
Identifiable assets 114.3 115.3 -0.9
Capital expenditures 1.4 1.4 -2.8
Depreciation 0.9 1.1 -11.2
- ---------------------------------------- ------------------ ------------------ ----------
7
Geographic Segment
- ------------------
Japan
- -----
Sales in the Japan increased at all the segments. Export to the overseas
markets increased due to the increase of color MFPs and high-speed MFPs while
Japan geographic segment increased by 7.7% as compared to the previous
corresponding period, to Yen 750.4 billion. In the Office Solutions segment, the
increase in operating income reflected an increase in sales of value-added
high-margin products, continuous cost management controls with logistics and
manufacturing, the recovery of semiconductor business and, in addition, the
depreciation of the Japanese Yen against the U.S. Dollar and the Euro. As a
result, operating income increased by 13.8% to Yen 51.6 billion.
The Americas
- ------------
Under the enhancement of sales and marketing structure and expansion of product
line-up, sales of color MFPs, high-speed MFPs, and laser printers increased.
The electronic component business performed well. As a result, sales in the
Americas increased by 11.5% as compared to the previous corresponding period,
to Yen 205.2 billion. Despite the fact that strategic expenses associated with
the enhancement of sales structure increased, operating income increased by
38.4% to Yen 8.9 billion due to the above-mentioned sales increases.
Europe
- ------
Sales of MFPs and laser printers continued to perform favorably. Furthermore,
the thermal media business performed well. As a result, sales in Europe
increased by 13.1% as compared to the previous corresponding period, to
Yen 228.5 billion while operating income decreased by 3.8% to Yen 9.5 billion
due to the strategic expenses for enhancing sales and marketing structure.
Other
- -----
Sales in China, Asia and Oceania increased especially with color MFPs. The
semiconductor business performed favorably and Ricoh established new companies
both in China and Korea for devices. Due to the fact that manufacturing
companies in China exported office solutions products, including color MFPs, to
the Ricoh's sales companies in the world, export sales in this geographic area
increased significantly. As a result, sales in this segment increased by 33.1%
as compared to the previous corresponding period, to Yen 124.5 billion.
Operating income increased by 33.7% to Yen 8.8 billion, due to the favorable
performance in sales and high productivity in production.
(Billions of yen)
- ----------------------------------------------------------------------------------------
Half year ended Half year ended Change
September 30, 2006 September 30, 2005 (%)
- ---------------------------------------- ------------------ ------------------ ---------
Japan:
Net sales 750.4 696.7 7.7
Operating income 51.6 45.3 13.8
Operating income on sales(%) 6.9 6.5 0.4point
Identifiable assets 1,257.8 1,186.2 6.0
- ---------------------------------------- ------------------ ------------------ ---------
The Americas:
Net sales 205.2 184.0 11.5
Operating income 8.9 6.4 38.4
Operating income on sales(%) 4.4 3.5 0.9point
Identifiable assets 249.4 235.7 5.8
- ---------------------------------------- ------------------ ------------------ ---------
Europe:
Net sales 228.5 202.0 13.1
Operating income 9.5 9.9 -3.8
Operating income on sales(%) 4.2 4.9 -0.7point
Identifiable assets 262.5 226.0 16.2
- ---------------------------------------- ------------------ ------------------ ---------
Other:
Net sales 124.5 93.5 33.1
Operating income 8.8 6.5 33.7
Operating income on sales(%) 7.1 7.1 0.0point
Identifiable assets 93.6 73.1 28.1
- ---------------------------------------- ------------------ ------------------ ---------
8
* Cash Flows
(Billions of yen)
- ---------------------------------------------------------------------------------
Half year ended Half year ended
September 30, September 30, Change
2006 2006
- ------------------------------------------ --------------- --------------- ------
Cash flows from operating activities 51.6 71.7 -20.1
Cash flows from investing activities -39.2 -62.0 22.7
Cash flows from financing activities 1.1 -49.7 50.8
Cash and cash equivalents at end of period 203.8 148.0 55.8
- ------------------------------------------ --------------- --------------- ------
Net cash provided by operating activities decreased by Yen 20.1 billion as
compared to the previous corresponding period, to Yen 51.6 billion. Although the
total of net income and depreciation increased by Yen 8.0 billion as compared to
the previous corresponding period, to Yen 89.3 billion, the increase in the
inventory at the end of September due primarily to the launch of new products
overseas in October resulted in the decrease in cash inflow.
Net cash used in investing activities decreased by Yen 22.7 billion as compared
to the previous corresponding period, to Yen 39.2 billion, due primarily to
reduction in capital investments. On the other hand, in the previous
corresponding period Ricoh made large capital investments such as the Ricoh
Technology Center. Ricoh received the cash inflow from the sale of the content
delivery service.
As a result, free cash flow generated by operating activities and investing
activities increased Yen 2.6 billion as compared to the previous corresponding
period to Yen 12.3 billion.
The net cash provided by financing activities increased by Yen 50.8 billion as
compared to the previous corresponding period, to Yen 1.1 billion.
As a result of the above, the ending balance of cash and cash equivalents
increased by Yen 16.8 billion from the end of last fiscal year (March 31, 2006)
to Yen 203.8 billion.
Transition of our cashflow indices from fiscal 2003 to 2007 are as follows:
- ---------------------------------------------------------------------------------------------------------------------------
Half year ended Half year ended Half year ended Half year ended Half year ended
September 30, September 30, September 30, September 30, September 30,
2002 2003 2004 2005 2006
- ------------------------------------------- --------------- --------------- --------------- --------------- ---------------
Shareholders' equity / Total assets 36.3% 36.8% 44.2% 46.5% 48.1%
Market capitalization / Total assets 84.2% 77.3% 81.7% 66.8% 81.7%
Interest bearing debt / Operating cash flow 5.5 8.2 7.8 5.2 7.6
Operating cash flow / Interest expense 24.4 20.8 24.1 32.7 15.9
- ------------------------------------------- --------------- --------------- --------------- --------------- ---------------
Notes:
i. All indices are calculated based on consolidated data.
ii. Market capitalization equals the stock price at the end of half year
multiplied by the number of shares outstanding at the end of half year.
iii. Operating cash flow is shown in consolidated statement of cash
flow. Interest bearing debt equals all debt in the consolidated balance
sheets.
* Cautionary Statement With Respect to Forward-Looking Statements
Ricoh is exposed to various risks which include the risks listed below.
Although certain risks that may affect Ricoh's businesses are listed in
this section, this list is not exhaustive. Ricoh's business may in the
future also be affected by other risks that are currently unknown or
that are not currently considered significant or material.
-Ability to respond to rapid technological changes in the document
imaging and management industry
-Highly competitive markets
-The risks of international operations and the risks of overseas
expansion
-Economic trends in Ricoh's major markets
-Foreign exchange fluctuations
-Crude oil price fluctuations
-Government regulation that can limit its activities or increase its
cost of operations
-Internal control evaluations and attestation over financial reporting
under section 404 of the Sarbanes-Oxley Act of 2002
-Dependence on protecting its intellectual property rights
-Dependence on securing and retaining specially skilled personnel
-Adverse affection by its employee benefit obligations
-Environmental laws and regulations
-Risks associated with Ricoh's equipment financing business
-Product liability claims that could significantly affect its financial
condition
-Alliances with other entities
-Catastrophic disaster, information technology problems or infectious
diseases
9
* Forecast for the entire fiscal year
Forecast and measures of Ricoh Group for the entire fiscal year
- ---------------------------------------------------------------
Although the world economy is likely to be recovered overall, exports from
Japan and Europe is expected to be slow due to the downturn in housing market
in the United States. Chinese economy is expected to continue favorably.
However, a concern about a global slowdown in the economy is expected to raise
in the world during the half-year ended March 31, 2007. Ricoh expects the
products with color capability and solutions to the customers will become
intensely competitive in the business environment.
Under this business environment, Ricoh will continue to launch new products to
the market in order to create new values for customers during the half-year
ending March 31, 2007. Furthermore, Ricoh will keep on enhancing its corporate
structure and operating bases for efficient corporate management.
As Ricoh announced on October 12, 2006, Ricoh has agreed to the share purchase
agreement with Danka Business Systems PLC ("Danka") to acquire shares of
Danka's European operating and holding companies. The completion of the
transaction is expected to take place on or around December 31, 2006.
Our performance forecasts for fiscal 2007 are as follows:
Ricoh revised its sales forecast for the year ending March 31, 2007, of which
is Yen 7.0 billion higher than the forecast announced in July 2006. Ricoh keeps
its fiscal forecast for gross profit, operating income, income before income
taxes and net income unchanged.
Ricoh Company, Ltd. has determined that the interim dividend is Yen 13.00 per
share. The year-end dividend is expected to be Yen 15.00 per share, which is
Yen 3.00 higher than that paid as a previous year-end dividend. Consequently,
the annual dividend will be Yen 28.00 per share, which is Yen 4.00 higher than
that paid as a dividend of the previous fiscal year.
Our performance forecasts for fiscal 2007 are as follows:
Exchange Rate Assumptions for the 2nd half year
US$ 1 = Yen 115.00 (Yen115.40 in 1st half year)
EURO 1 = Yen 140.00 (Yen145.98 in 1st half year)
Exchange Rate Assumptions for the full year ending March 31, 2007
US$ 1 = Yen 115.20 (Yen113.26 in previous fiscal year)
EURO 1 = Yen 142.99 (Yen137.86 in previous fiscal year)
(Billions of yen)
- ------------------------------------------------------------------------------------------
Year ending Year ended
March 31, 2007 March 31, 2006 Change
(Forecast) (Results)
- ----------------------------------------------------- -------------- -------------- ------
Domestic sales 1,005.0 966.2 4.0%
Overseas sales 1,062.0 943.0 12.6%
Net sales 2,067.0 1,909.2 8.3%
Gross profit 854.5 795.0 7.5%
Operating income 170.0 148.5 14.4%
Income from continuing operations before income taxes 168.0 152.7 10.0%
Net income 106.5 97.0 9.7%
- ----------------------------------------------------- -------------- -------------- ------
Notes:
* As a result of the sale of a business, the operating results from the
discontinued operation have been reclassified in accordance with Statement of
Financial Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment
or Disposal of Long-Lived Assets".
* Ricoh bases the forecast estimates for March 31, 2007 above upon information
currently available to management, which involves risks and uncertainties that
could cause actual results to differ materially from those projected.
10
RICOH COMPANY, LTD. AND CONSOLIDATED SUBSIDIARIES
INTERIM REPORT (CONSOLIDATED. HALF YEAR ENDED SEPTEMBER 30, 2006)
DATE OF APPROVAL FOR THE FINANCIAL RESULTS FOR THE HALF YEAR ENDED
SEPTEMBER 30, 2006, AT THE BOARD OF DIRECTORS' MEETING: OCTOBER 27, 2006
1. RESULTS FOR THE PERIOD FROM APRIL 1, 2006 TO SEPTEMBER 30, 2006
(1) Operating Results (Millions of yen)
- -----------------------------------------------------------------------------------------------------------
Half year ended Half year ended Year ended
September 30, 2006 September 30, 2005 March 31, 2006
- ------------------------------------------------------ ------------------ ------------------ --------------
Net sales 986,922 919,869 1,909,238
(% change from the previous corresponding periods) 7.3 5.4 5.6
Operating income 73,163 65,012 148,584
(% change from the previous corresponding periods) 12.5 17.2 13.3
Income from continuing operations before income taxes 74,268 67,509 152,766
(% change from the previous corresponding periods) 10.0 16.8 16.6
Net income 52,045 42,867 97,057
(% change from the previous corresponding periods) 21.4 19.7 16.7
Net income per share-basic (yen) 71.35 58.40 132.33
Net income per share-diluted (yen) - - -
- ------------------------------------------------------ ------------------ ------------------ --------------
Notes:
i. Equity in income of affiliates: Yen 1,038 million; Yen 935 million (half year
ended September 30, 2005); Yen 2,606 million (year ended March 31, 2006)
ii. Average number of shares outstanding (consolidated): 729,483,296 shares;
734,019,631 shares (half year ended September 30, 2005); 733,434,414 shares
(year ended March 31, 2006)
iii. No change in accounting method has been made.
(2) Financial Position (Millions of yen)
- ---------------------- ----------------------------------------------------
September 30, 2006 September 30, 2005 March 31, 2006
- ---------------------- ------------------ ------------------ --------------
Total assets 2,097,763 1,948,587 2,041,183
Shareholders' equity 1,008,412 905,674 960,245
Equity ratio (%) 48.1 46.5 47.0
Equity per share (yen) 1,382.14 1,233.08 1,316.21
- ---------------------- ------------------ ------------------ --------------
Note: Number of shares outstanding as of September 30, 2006: 729,602,695
shares; 734,481,701 shares (September 30, 2005); 729,552,274 shares (March 31,
2006)
(3) Cash Flows (Millions of yen)
- ------------------------------------------ ----------------------------------------------------
Half year ended Half year ended Year ended
September 30, 2006 September 30, 2005 March 31, 2006
- ------------------------------------------ ------------------ ------------------ --------------
Cash flows from operating activities 51,624 71,734 173,479
Cash flows from investing activities -39,259 -62,009 -120,051
Cash flows from financing activities 1,101 -49,795 -59,989
Cash and cash equivalents at end of period 203,876 148,010 187,055
- ------------------------------------------ ------------------ ------------------ --------------
(4) Items relating to the scale of consolidation and the application of the
equity method:
Number of consolidated subsidiaries: 252; non-consolidated subsidiaries: 36;
affiliated companies: 19
(5) Changes relating to the scale of consolidation and the application of the
equity method:
Consolidated subsidiaries: 1 addition; 8 removals
Companies accounted for by the equity method: 4 removals
Note:
Consolidated financial statements of the Company and its consolidated
subsidiaries have been prepared in conformity with U.S. generally accepted
accounting principles.
2. Forecast of operating results from April 1, 2006 to March 31, 2007 (Millions of yen)
- ------------------------------------------------------------------------------------------
Net sales 2,067,000
Operating income 170,000
Income from continuing operations before income taxes 168,000
Net income 106,500
- ------------------------------------------------------------------------ -----------------
Note: Net income per share (Consolidated) 145.97 yen
Notes:
* As a result of the sale of a business, the operating results and cash flows
from the discontinued operation have been reclassified in accordance with
Statement of Financial Accounting Standards ("SFAS") No. 144, "Accounting for
the Impairment or Disposal of Long-Lived Assets".
* In accordance with Japanese regulations, Ricoh has issued forecast for its
financial results for the fiscal year ending March 31, 2007. 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 288 subsidiaries and 19 affiliates.
Their development, manufacturing, sales, and service activities center on
Office Solutions, Industrial Products, and Other.
Ricoh Company, Ltd., a parent company, heads development. The parent company
and subsidiaries or 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 Solutions]
In this business category, Ricoh provides products and systems that support the
enhancement of the office productivity of customers. Major products include:
Digital/analog copiers, MFPs (multifunctional printers), laser printers,
facsimile machines, and digital duplicators. Ricoh also provides solution
systems including personal computers and servers, utilizing its information
technology. Another business Ricoh also provides are support, service, and
related supplies, as well as support and service including IT environment setup
and network administration.
[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., and Ricoh Printing Systems, Ltd.
The Americas...Ricoh Electronics, Inc.
Europe...Ricoh UK Products Ltd., Ricoh Industrie France S.A.S.
Other regions...Ricoh Asia Industry (Shenzhen) Ltd., Shanghai Ricoh
Facsimile Co., Ltd., and Sindo Ricoh Co., Ltd. (affiliated company)
Sales and Service
Japan ...Hokkaido Ricoh Co., Ltd., Ricoh Tohoku Co., Ltd., Ricoh Sales Co.,
Ltd. Ricoh Chubu Co., Ltd., Ricoh Kansai Co., Ltd.,
Ricoh Chugoku Co., Ltd., Ricoh Kyushu Co., Ltd., and 32 other sales
companies nationwide, Ricoh Technosystems Co., Ltd., Ricoh Leasing Co.,
Ltd., and Ricoh Logistics System Co., Ltd.
The Americas...Ricoh Corporation, Lanier Worldwide, Inc.
Europe...Ricoh Europe B.V., Ricoh Deutschland GmbH, Ricoh UK Ltd., Ricoh
France S.A.,
Ricoh Espana S.L., Ricoh Italia S.p.A., and NRG Group PLC
Other regions...Ricoh China Co., Ltd., Ricoh Hong Kong Ltd., Ricoh Asia
Pacific Pte. Ltd.,
Ricoh Australia Pty, Ltd., and Ricoh New Zealand Ltd.
[Industrial Products]
Manufacturing and marketing thermal media, optical equipments, semiconductors,
electronic component and measuring equipments
[Main Subsidiaries and Affiliates]
Production and Sales
Japan...Ricoh Optical Industries Co., Ltd., Ricoh Elemex Corporation, and
Ricoh Microelectronics Co., Ltd.
The Americas...Ricoh Electronics, Inc.
Europe...Ricoh Industrie France S.A.S.
[Other]
Supplying optical discs and digital camera, and providing leasing and logistics
services
[Main Subsidiaries and Affiliates]
Sales
Ricoh Corporation, Ricoh Europe B.V.
Other
Ricoh Leasing Co., Ltd., Ricoh Logistics System Co., Ltd., and Coca-Cola
West Holdings Co., Ltd. (affiliated company)
12
[Chart of Business System]
The chart of group position is omitted.
13
CONSOLIDATED PERFORMANCE
1. CONSOLIDATED STATEMENTS OF INCOME
(Three months ended September 30, 2006 and 2005) (Millions of yen)
- --------------------------------------------------------------------------------------------------
Three months ended Three months ended
September 30, 2006 September 30, 2005 Change %
- ------------------------------------------------ ------------------ ------------------ ------ ----
Net sales 502,346 468,404 33,942 7.2
Cost of sales 296,995 276,195 20,800 7.5
Percentage of net sales (%) 59.1 59.0
Gross Profit 205,351 192,209 13,142 6.8
Percentage of net sales (%) 40.9 41.0
Selling, general and administrative expenses 172,835 163,586 9,249 5.7
Percentage of net sales (%) 34.4 34.9
Operating income 32,516 28,623 3,893 13.6
Percentage of net sales (%) 6.5 6.1
Other (income) expense
Interest and dividend income 884 699 185 26.5
Percentage of net sales (%) 0.2 0.1
Interest expense 1,654 1,187 467 39.3
Percentage of net sales (%) 0.3 0.3
Other, net -3,818 -2,176 -1,642 -
Percentage of net sales (%) -0.7 -0.6
Income from continuing operations before income
taxes, equity income and minority interests 35,564 30,311 5,253 17.3
Percentage of net sales (%) 7.1 6.5
Provision for income taxes 11,654 10,868 786 7.2
Percentage of net sales (%) 2.3 2.3
Minority interests in earnings of subsidiaries 1,542 1,464 78 5.3
Percentage of net sales (%) 0.3 0.3
Equity in earnings of affiliates 552 572 -20 -3.5
Percentage of net sales (%) 0.1 0.1
Income from continuing operations 22,920 18,551 4,369 23.6
Percentage of net sales (%) 4.6 4.0
Income from discontinued operation, net of tax - 593 -593 -
Percentage of net sales (%) - 0.1
Net income 22,920 19,144 3,776 19.7
Percentage of net sales (%) 4.6 4.1
- ------------------------------------------------ --------- --------- ------ ----
Reference : Exchange rate
US$ 1 Yen 116.26 Yen 111.22
EURO 1 Yen 148.16 Yen 135.79
(Half year ended September 30, 2006 and 2005 and Year ended March 31, 2006) (Millions of yen)
- --------------------------------------------------------------------------------------------------------------------------
Half year ended Half year ended Year ended
September 30, 2006 September 30, 2005 Change % March 31, 2006
- ---------------------------------------------------- ------------------ ------------------ ------ ----- --------------
Net sales 986,922 919,869 67,053 7.3 1,909,238
Cost of sales 579,006 534,143 44,863 8.4 1,114,238
Percentage of net sales (%) 58.7 58.1 58.4
Gross Profit 407,916 385,726 22,190 5.8 795,000
Percentage of net sales (%) 41.3 41.9 41.6
Selling, general and administrative expenses 334,753 320,714 14,039 4.4 646,416
Percentage of net sales (%) 33.9 34.8 33.8
Operating income 73,163 65,012 8,151 12.5 148,584
Percentage of net sales (%) 7.4 7.1 7.8
Other (income) expense
Interest and dividend income 1,981 1,384 597 43.1 2,896
Percentage of net sales (%) 0.2 0.2 0.2
Interest expense 3,238 2,196 1,042 47.4 5,244
Percentage of net sales (%) 0.3 0.2 0.3
Other, net -2,362 -3,309 947 -- -6,530
Percentage of net sales (%) -0.2 -0.2 -0.3
Income from continuing operations before income
taxes, equity income and minority interests 74,268 67,509 6,759 10.0 152,766
Percentage of net sales (%) 7.5 7.3 8.0
Provision for income taxes 25,880 24,012 1,868 7.8 56,165
Percentage of net sales (%) 2.6 2.6 2.9
Minority interests in earnings of subsidiaries 2,881 2,690 191 7.1 4,185
Percentage of net sales (%) 0.3 0.3 0.2
Equity in earnings of affiliates 1,038 935 103 11.0 2,606
Percentage of net sales (%) 0.1 0.1 0.1
Income from continuing operations 46,545 41,742 4,803 11.5 95,022
Percentage of net sales (%) 4.7 4.5 5.0
Income from discontinued operation, net of tax 5,500 1,125 4,375 388.9 2,035
Percentage of net sales (%) 0.6 0.2 0.1
Net income 52,045 42,867 9,178 21.4 97,057
Percentage of net sales (%) 5.3 4.7 5.1
- ---------------------------------------------------- --------- --------- ------ ----- --------
Reference : Exchange rate
US$ 1 Yen 115.40 Yen 109.42 Yen 113.26
EURO 1 Yen 145.98 Yen 135.67 Yen 137.86
Note:
* As a result of the sale of a business, the operating results from the
discontinued operation have been reclassified in accordance with Statement of
Financial Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment
or Disposal of Long-Lived Assets".
14
2-1. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Three months ended September 30, 2006 and 2005) (Millions of yen)
- ---------------------------------------------------------------------------------------
Three months ended Three months ended
September 30, 2006 September 30, 2005 Change %
- ------------------------------- ------------------ ------------------ ------ ----
[Office Solutions]
Imaging Solutions 370,871 343,643 27,228 7.9
Percentage of net sales (%) 73.8 73.4
Network System Solutions 55,417 54,565 852 1.6
Percentage of net sales (%) 11.1 11.6
Total Office Solutions 426,288 398,208 28,080 7.1
Percentage of net sales (%) 84.9 85.0
- ------------------------------- --------- --------- ------ ----
[Industrial Products]
Industrial Products 33,547 32,381 1,166 3.6
Percentage of net sales (%) 6.7 6.9
- ------------------------------- --------- --------- ------ ----
[Other]
Other 42,511 37,815 4,696 12.4
Percentage of net sales (%) 8.4 8.1
- ------------------------------- --------- --------- ------ ----
Grand Total 502,346 468,404 33,942 7.2
Percentage of net sales (%) 100.0 100.0
- ------------------------------- --------- --------- ------ ----
Reference : Exchange rate
US$ 1 Yen 116.26 Yen 111.22
EURO 1 Yen 148.16 Yen 135.79
(Half year ended September 30, 2006 and 2005 and Year ended March 31, 2006) (Millions of yen)
- -------------------------------------------------------------------------------------------------------
Half year ended Half year ended Year ended
September 30, 2006 September 30, 2005 Change % March 31, 2006
- ---------------------------------- ------------------ ------------------ ------ ---- --------------
[Office Solutions]
Imaging Solutions 743,626 693,130 50,496 7.3 1,446,635
Percentage of net sales (%) 75.3 75.4 75.8
Network System Solutions 94,464 93,151 1,313 1.4 190,593
Percentage of net sales (%) 9.6 10.1 10.0
Total Office Solutions 838,090 786,281 51,809 6.6 1,637,228
Percentage of net sales (%) 84.9 85.5 85.8
- ---------------------------------- --------- --------- ------ ---- ---------
[Industrial Products]
Industrial Products 68,256 58,459 9,797 16.8 120,636
Percentage of net sales (%) 6.9 6.4 6.3
- ---------------------------------- --------- --------- ------ ---- ---------
[Other]
Other 80,576 75,129 5,447 7.3 151,374
Percentage of net sales (%) 8.2 8.1 7.9
- ---------------------------------- --------- --------- ------ ---- ---------
Grand Total 986,922 919,869 67,053 7.3 1,909,238
Percentage of net sales (%) 100.0 100.0 100.0
- ---------------------------------- --------- --------- ------ ---- ---------
Reference : Exchange rate
US$ 1 Yen 115.40 Yen 109.42 Yen 113.26
EURO 1 Yen 145.98 Yen 135.67 Yen 137.86
Notes:
* As a result of the sale of a business, the operating results from the
discontinued operation have been reclassified in accordance with Statement of
Financial Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment
or Disposal of Long-Lived Assets".
*Each category includes the following product line:
Imaging Solutions Digital PPCs, color PPCs, digital duplicators, facsimile machines, analog PPCs, diazo copiers,
scanners,
MFPs(multifunctional printers), laser printers and software
Network System Solutions Personal computers, servers, network systems and network related software
Industrial Products Thermal media, optical equipment, semiconductor devices, electronic components and measuring
equipment
Other Optical discs and digital cameras
15
2-2. CONSOLIDATED SALES BY GEOGRAPHIC AREA
(Three months ended September 30, 2006 and 2005) (Millions of yen)
- -----------------------------------------------------------------------------------------------
Three months ended Three months ended
September 30, 2006 September 30, 2005 Change %
- --------------------------------------------- ------------------ ------------------ ------ ----
[Domestic] 252,060 245,292 6,768 2.8
Percentage of net sales (%) 50.2 52.4
[Overseas] 250,286 223,112 27,174 12.2
Percentage of net sales (%) 49.8 47.6
The Americas 102,949 96,759 6,190 6.4
Percentage of net sales (%) 20.5 20.7
Europe 112,994 96,920 16,074 16.6
Percentage of net sales (%) 22.5 20.7
Other 34,343 29,433 4,910 16.7
Percentage of net sales (%) 6.8 6.2
Grand Total 502,346 468,404 33,942 7.2
Percentage of net sales (%) 100.0 100.0
- --------------------------------------------- --------- --------- ------ ----
Reference : Exchange rate
US$ 1 Yen 116.26 Yen 111.22
EURO 1 Yen 148.16 Yen 135.79
(Half year ended September 30, 2006 and 2005 and Year ended March 31, 2006) (Millions of yen)
- --------------------------------------------------------------------------------------------------------------
Half year ended Half year ended Year ended
September 30, 2006 September 30, 2005 Change % March 31, 2006
- --------------------------------------------- ------------------ ------------------ ------ ---- --------------
[Domestic] 492,491 477,766 14,725 3.1 966,224
Percentage of net sales (%) 49.9 51.9 50.6
[Overseas] 494,431 442,103 52,328 11.8 943,014
Percentage of net sales (%) 50.1 48.1 49.4
The Americas 203,584 183,915 19,669 10.7 387,412
Percentage of net sales (%) 20.6 20.0 20.3
Europe 226,504 201,399 25,105 12.5 434,800
Percentage of net sales (%) 23.0 21.9 22.8
Other 64,343 56,789 7,554 13.3 120,802
Percentage of net sales (%) 6.5 6.2 6.3
Grand Total 986,922 919,869 67,053 7.3 1,909,238
Percentage of net sales (%) 100.0 100.0 100.0
- --------------------------------------------- --------- --------- ------ ---- ---------
Reference : Exchange rate
US$ 1 Yen 115.40 Yen 109.42 Yen 113.26
EURO 1 Yen 145.98 Yen 135.67 Yen 137.86
Note:
* As a result of the sale of a business, the operating results from the
discontinued operation have been reclassified in accordance with Statement of
Financial Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment
or Disposal of Long-Lived Assets".
16
3. CONSOLIDATED BALANCE SHEETS
(September 30, 2006 and March 31, 2006)
Assets (Millions of yen)
- ---------------------------------------------------------------------------------------------------------------------
September 30, 2006 March 31, 2006 Change
- ----------------------------------------------------------------- ------------------ -------------- -----------------
Current Assets
Cash and time deposits 205,388 188,525 16,863
Trade receivables 642,719 630,501 12,218
Marketable securities 171 162 9
Inventories 184,741 169,245 15,496
Other current assets 59,706 55,110 4,596
Total Current Assets 1,092,725 1,043,543 49,182
Fixed Assets
Tangible fixed assets 270,255 268,243 2,012
Finance receivable 424,184 415,435 8,749
Other Investments 310,599 313,962 -3,363
Total Fixed Assets 1,005,038 997,640 7,398
- ----------------------------------------------------------------- --------- --------- -------
Total Assets 2,097,763 2,041,183 56,580
- ----------------------------------------------------------------- --------- --------- -------
Note:
Contents of cash and time deposits:
Cash and cash equivalents 203,876 187,055
Time deposits 1,512 1,470
Liabilities and Shareholders' Investment (Millions of yen)
- ---------------------------------------------------------------------------------------------------------------------
September 30, 2006 March 31, 2006 Change
- ----------------------------------------------------------------- ------------------ -------------- -----------------
Current Liabilities
Trade payables 320,016 339,152 -19,136
Short-term borrowings 211,011 185,651 25,360
Other current liabilities 170,803 159,225 11,578
Total Current Liabilities 701,830 684,028 17,802
Fixed Liabilities
Long-term indebtedness 182,713 195,626 -12,913
Retirement benefit obligation 96,637 97,020 -383
Other fixed liabilities 52,890 51,374 1,516
Total Fixed Liabilities 332,240 344,020 -11,780
- ----------------------------------------------------------------- --------- --------- -------
Total Liabilities 1,034,070 1,028,048 6,022
- ----------------------------------------------------------------- --------- --------- -------
Minority Interest 55,281 52,890 2,391
- ----------------------------------------------------------------- --------- --------- -------
Shareholders' Investment
Common stock 135,364 135,364 -
Additional paid-in capital 186,451 186,450 1
Retained earnings 708,675 665,394 43,281
Accumulated other comprehensive income 9,331 4,099 5,232
Treasury stock -31,409 -31,062 -347
Total Shareholders' Investment 1,008,412 960,245 48,167
- ----------------------------------------------------------------- --------- --------- -------
Total Liabilities and Shareholders' Investment 2,097,763 2,041,183 56,580
- ----------------------------------------------------------------- --------- --------- -------
Note: Other comprehensive income;
Net unrealized holding gains on available-for-sale securities 6,443 8,928 -2,485
Pension liability adjustments -6,813 -7,643 830
Net unrealized gains on derivative instruments 34 157 -123
Cumulative translation adjustments 9,667 2,657 7,010
September 30, 2006 March 31, 2006
Reference: Exchange rate ------------------ --------------
US$ 1 Yen 117.90 Yen 117.47
EURO 1 Yen 149.77 Yen 142.81
17
4. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT
Half year ended September 30, 2006 (Millions of yen)
- ----------------------------------------------------------------------------------------------------------------------------
Accumulated
Additional other Total
Common paid-in Retained comprehensive Treasury Shareholders'
stock capital earnings income stock Investment
- ------------------------------------------------------- ------- ---------- -------- ------------- -------- -----------------
Beginning balance 135,364 186,450 665,394 4,099 -31,062 960,245
- ------------------------------------------------------- ------- ------- ------- ------- ------- ---------
Gain on disposal of treasury stock 1 1
Dividends declared and approved -8,764 -8,764
Comprehensive income
Net income 52,045 52,045
Net unrealized holding losses on available-for-sale
securities -2,485 -2,485
Pension liability adjustments 830 830
Net unrealized losses on derivative instruments -123 -123
Cumulative translation adjustments 7,010 7,010
---------
Total comprehensive income 57,277
---------
Purchase of treasury stock , net -347 -347
- ------------------------------------------------------- ------- ------- ------- ------- ------- ---------
Ending balance 135,364 186,451 708,675 9,331 -31,409 1,008,412
- ------------------------------------------------------- ------- ------- ------- ------- ------- ---------
Year ended March 31, 2006 (Millions of yen)
- ----------------------------------------------------------------------------------------------------------------------------
Accumulated
Additional other Total
Common paid-in Retained comprehensive Treasury Shareholders'
stock capital earnings income stock Investment
- ------------------------------------------------------- ------- ---------- -------- ------------- -------- -----------------
Beginning balance 135,364 186,551 584,515 -21,963 -21,469 862,998
- ------------------------------------------------------- ------- ------- ------- ------- ------- ---------
Loss on disposal of treasury stock -101 -101
Dividends declared and approved -16,178 -16,178
Comprehensive income
Net income 97,057 97,057
Net unrealized holding gains on available-for-sale
securities 4,137 4,137
Pension liability adjustments 7,009 7,009
Net unrealized gains on derivative instruments 40 40
Cumulative translation adjustments 14,876 14,876
---------
Total comprehensive income 123,119
---------
Purchase of treasury stock , net -9,593 -9,593
- ------------------------------------------------------- ------- ------- ------- ------- ------- ---------
Ending balance 135,364 186,450 665,394 4,099 -31,062 960,245
- ------------------------------------------------------- ------- ------- ------- ------- ------- ---------
18
5. CONSOLIDATED STATEMENTS OF CASH FLOWS
(Half year ended September 30, 2006 and 2005 and Year ended March 31, 2006) (Millions of yen)
- ---------------------------------------------------------------------------------------------------------------------------------
Half year ended Half year ended Year ended
September 30, 2006 September 30, 2005 March 31, 2006
- ---------------------------------------------------------------------------- ------------------ ------------------ --------------
I. Cash Flows from Operating Activities:
Net income 52,045 42,867 97,057
Income from discontinued operation, net of tax -5,500 -1,125 -2,035
------- ------- --------
Income from continuing operations 46,545 41,742 95,022
Adjustments to reconcile net income to net cash provided by operating
activities--
Depreciation and amortization 42,851 39,627 84,089
Equity in earnings of affiliates, net of dividends received -209 -110 -1,431
Deferred income taxes -2,755 -1,878 -4,692
Loss on disposal and sales of tangible fixed assets 988 1,059 920
Pension and severance costs, less payments -701 -148 3,340
Changes in assets and liabilities--
Decrease in trade receivables 7,057 15,514 13,411
(Increase) decrease in inventories -12,693 1,624 3,726
Increase in finance receivables -14,045 -17,194 -30,029
Decrease in trade payables -20,354 -12,389 -4,442
(Decrease) increase in accrued income taxes and accrued expenses
and other 4,608 -556 2,505
Other, net 332 4,443 11,060
- ---------------------------------------------------------------------------- ------- ------- --------
Net cash provided by operating activities 51,624 71,734 173,479
- ---------------------------------------------------------------------------- ------- ------- --------
II. Cash Flows from Investing Activities:
Proceeds from sales of property, plant and equipment 265 312 3,085
Expenditures for tangible fixed assets -39,089 -58,034 -101,788
Payments for purchases of available-for-sale securities -49,036 -60,213 -138,607
Proceeds from sales of available-for-sale securities 48,006 62,788 141,620
(Increase) decrease in time deposits, net -43 718 -136
Proceeds from sales of discontinued operation 12,000 - -
Other, net -11,362 -7,580 -24,225
- ---------------------------------------------------------------------------- ------- ------- --------
Net cash used in investing activities -39,259 -62,009 -120,051
- ---------------------------------------------------------------------------- ------- ------- --------
III. Cash Flows from Financing Activities:
Proceeds from long-term indebtedness 42,885 35,776 63,751
Repayment of long-term indebtedness -20,861 -54,169 -93,752
Increase in short-term borrowings, net 6,633 20,654 39,618
Proceeds from issuance of long-term debt securities - - 10,000
Repayment of long-term debt securities -18,000 -44,000 -52,000
Dividend paid -8,764 -7,348 -16,178
Payment for purchase of treasury stock -355 -237 -10,653
Other, net -437 -471 -775
- ---------------------------------------------------------------------------- ------- ------- --------
Net cash provided by (used in) financing activities 1,101 -49,795 -59,989
- ---------------------------------------------------------------------------- ------- ------- --------
IV. Net Increase in Cash and Cash Equivalents from discontinued operation 825 1,756 3,376
- ---------------------------------------------------------------------------- ------- ------- --------
V. Effect of Exchange Rate Changes on Cash and Cash Equivalents 2,530 -533 3,383
- ---------------------------------------------------------------------------- ------- ------- --------
VI. Net Increase (Decrease) in Cash and Cash Equivalents 16,821 -38,847 198
- ---------------------------------------------------------------------------- ------- ------- --------
VII. Cash and Cash Equivalents at Beginning of Year 187,055 186,857 186,857
- ---------------------------------------------------------------------------- ------- ------- --------
VIII. Cash and Cash Equivalents at End of Period 203,876 148,010 187,055
- ---------------------------------------------------------------------------- ------- ------- --------
Note:
* As a result of the sale of a business, the operating results from the
discontinued operation have been reclassified in accordance with Statement of
Financial Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment
or Disposal of Long-Lived Assets".
19
6. SEGMENT INFORMATION
(1)Industry Segment Information
(Three months ended September 30, 2006 and 2005) (Millions of yen)
- ------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
September 30, 2006 September 30, 2005 Change %
- ---------------------------------------------------------------- ------------------ ------------------ ------ -----
OFFICE SOLUTIONS:
Net sales:
Unaffiliated customers 426,288 398,208 28,080 7.1
Intersegment - - - -
Total 426,288 398,208 28,080 7.1
- ---------------------------------------------------------------- ------- ------- ------ -----
Operating expenses 378,862 356,455 22,407 6.3
- ---------------------------------------------------------------- ------- ------- ------ -----
Operating income 47,426 41,753 5,673 13.6
Operating income on sales in Office Solutions (%) 11.1 10.5
- ---------------------------------------------------------------- ------- ------- ------ -----
INDUSTRIAL PRODUCTS:
Net sales:
Unaffiliated customers 33,547 32,381 1,166 3.6
Intersegment 1,120 658 462 70.2
Total 34,667 33,039 1,628 4.9
- ---------------------------------------------------------------- ------- ------- ------ -----
Operating expenses 35,007 32,686 2,321 7.1
- ---------------------------------------------------------------- ------- ------- ------ -----
Operating income -340 353 -693 -
Operating income on sales in Industrial Products (%) -1.0 1.1
- ---------------------------------------------------------------- ------- ------- ------ -----
OTHER:
Net sales:
Unaffiliated customers 42,511 37,815 4,696 12.4
Intersegment - - - -
Total 42,511 37,815 4,696 12.4
- ---------------------------------------------------------------- ------- ------- ------ -----
Operating expenses 41,296 37,647 3,649 9.7
- ---------------------------------------------------------------- ------- ------- ------ -----
Operating income 1,215 168 1,047 623.2
Operating income on sales in Other (%) 2.9 0.4
- ---------------------------------------------------------------- ------- ------- ------ -----
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -1,120 -658 -462 -
Total -1,120 -658 -462 -
- ---------------------------------------------------------------- ------- ------- ------ -----
Operating expenses:
Unaffiliated customers -1,120 -685 -435 -
Intersegment 15,785 13,678 2,107 -
Total 14,665 12,993 1,672 -
- ---------------------------------------------------------------- ------- ------- ------ -----
Operating income -15,785 -13,651 -2,134 -
- ---------------------------------------------------------------- ------- ------- ------ -----
CONSOLIDATED:
Net sales:
Unaffiliated customers 502,346 468,404 33,942 7.2
Intersegment - - - -
Total 502,346 468,404 33,942 7.2
- ---------------------------------------------------------------- ------- ------- ------ -----
Operating expenses 469,830 439,781 30,049 6.8
- ---------------------------------------------------------------- ------- ------- ------ -----
Operating income 32,516 28,623 3,893 13.6
Operating income on consolidated net sales (%) 6.5 6.1
- ---------------------------------------------------------------- ------- ------- ------ -----
Capital expenditures: (Millions of yen)
- ------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
September 30, 2006 September 30, 2005 Change %
- ---------------------------------------------------------------- ------------------ ------------------ ------ -----
Office Solutions 20,085 19,483 602 3.1
Industrial Products 2,124 2,577 -453 -17.6
Other 616 937 -321 -34.3
Corporate 399 449 -50 -11.1
- ---------------------------------------------------------------- ------- ------- ------ -----
Total 23,224 23,446 -222 -0.9
- ---------------------------------------------------------------- ------- ------- ------ -----
Depreciation: (Millions of yen)
- ------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
September 30, 2006 September 30, 2005 Change %
- ---------------------------------------------------------------- ------------------ ------------------ ------ -----
Office Solutions 15,648 12,937 2,711 21.0
Industrial Products 1,385 1,658 -273 -16.5
Other 427 589 -162 -27.5
Corporate 313 282 31 11.0
- ---------------------------------------------------------------- ------- ------- ------ -----
Total 17,773 15,466 2,307 14.9
- ---------------------------------------------------------------- ------- ------- ------ -----
Note:
* As a result of the sale of a business, the operating results from the
discontinued operation have been reclassified in accordance with Statement of
Financial Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment
or Disposal of Long-Lived Assets".
Identifiable assets: (Millions of yen)
- -------------------------------------------------------------------------------
September 30, 2006 September 30, 2005 Change %
- ----------------------- ------------------ ------------------ ------- ----
Office Solutions 1,482,251 1,394,012 88,239 6.3
Industrial Products 89,724 73,231 16,493 22.5
Other 114,341 115,397 -1,056 -0.9
Elimination -1,924 -7,536 5,612 -
Corporate assets 413,371 373,483 39,888 10.7
- ----------------------- --------- --------- ------- ----
Total 2,097,763 1,948,587 149,176 7.7
- ----------------------- --------- --------- ------- ----
20
(Half year ended September 30, 2006 and 2005 and Year ended March 31, 2006) (Millions of yen)
- ---------------------------------------------------------------------------------------------------------------------------------
Half year ended Half year ended Year ended
September 30, 2006 September 30, 2005 Change % March 31, 2006
- ---------------------------------------------------------- ------------------ ------------------ ------- ----- --------------
OFFICE SOLUTIONS:
Net sales:
Unaffiliated customers 838,090 786,281 51,809 6.6 1,637,228
Intersegment - - - - -
Total 838,090 786,281 51,809 6.6 1,637,228
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
Operating expenses 739,320 695,849 43,471 6.2 1,434,279
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
Operating income 98,770 90,432 8,338 9.2 202,949
Operating income on sales in Office Solutions (%) 11.8 11.5 12.4
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
INDUSTRIAL PRODUCTS:
Net sales:
Unaffiliated customers 68,256 58,459 9,797 16.8 120,636
Intersegment 2,325 1,244 1,081 86.9 2,564
Total 70,581 59,703 10,878 18.2 123,200
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
Operating expenses 69,687 59,874 9,813 16.4 124,108
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
Operating income 894 -171 1,065 - -908
Operating income on sales in Industrial Products (%) 1.3 -0.3 -0.7
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
OTHER:
Net sales:
Unaffiliated customers 80,576 75,129 5,447 7.3 151,374
Intersegment - - - - -
Total 80,576 75,129 5,447 7.3 151,374
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
Operating expenses 78,678 74,896 3,782 5.0 148,692
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
Operating income 1,898 233 1,665 714.6 2,682
Operating income on sales in Other (%) 2.4 0.3 1.8
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -2,325 -1,244 -1,081 - -2,564
Total -2,325 -1,244 -1,081 - -2,564
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
Operating expenses:
Intersegment -2,370 -1,279 -1,091 - -2,594
Corporate 28,444 25,517 2,927 - 56,169
Total 26,074 24,238 1,836 - 53,575
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
Operating income -28,399 -25,482 -2,917 - -56,139
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
CONSOLIDATED:
Net sales:
Unaffiliated customers 986,922 919,869 67,053 7.3 1,909,238
Intersegment - - - - -
Total 986,922 919,869 67,053 7.3 1,909,238
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
Operating expenses 913,759 854,857 58,902 6.9 1,760,654
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
Operating income 73,163 65,012 8,151 12.5 148,584
Operating income on consolidated net sales (%) 7.4 7.1 7.8
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
Capital expenditures: (Millions of yen)
- ----------------------------------------------------------------------------------------------------------------------------------
Half year ended Half year ended Year ended
September 30, 2006 September 30, 2005 Change % March 31, 2006
- ---------------------------------------------------------- ------------------ ------------------ ------- ----- --------------
Office Solutions 34,429 51,456 -17,027 -33.1 90,383
Industrial Products 2,855 4,573 -1,718 -37.6 7,451
Other 1,411 1,451 -40 -2.8 2,361
Corporate 483 684 -201 -29.4 1,854
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
Total 39,178 58,164 -18,986 -32.6 102,049
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
Depreciation: (Millions of yen)
- ---------------------------------------------------------------------------------------------------------------------------------
Half year ended Half year ended Year ended
September 30, 2006 September 30, 2005 Change % March 31, 2006
- ---------------------------------------------------------- ------------------ ------------------ ------- ----- --------------
Office Solutions 29,439 26,320 3,119 11.9 57,326
Industrial Products 2,715 3,150 -435 -13.8 6,631
Other 980 1,103 -123 -11.2 2,352
Corporate 604 531 73 13.7 1,156
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
Total 33,738 31,104 2,634 8.5 67,465
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
Note:
*As a result of the sale of a business, the operating results from the discontinued operation have been reclassified in accordance
with Statement of Financial Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment or Disposal of Long-
Lived Assets".
Identifiable assets: (Millions of yen)
- ----------------------------------------------------------------------------------------------------------------------------------
September 30, 2006 September 30, 2005 Change % March 31, 2006
- ---------------------------------------------------------- ------------------ ------------------ ------- ----- --------------
Office Solutions 1,482,251 1,394,012 88,239 6.3 1,426,635
Industrial Products 89,724 73,231 16,493 22.5 84,595
Other 114,341 115,397 -1,056 -0.9 114,925
Elimination -1,924 -7,536 5,612 - -2,088
Corporate assets 413,371 373,483 39,888 10.7 417,116
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
Total 2,097,763 1,948,587 149,176 7.7 2,041,183
- ---------------------------------------------------------- --------- --------- ------- ----- ---------
21
(2) Geographic Segment Information
(Three months ended September 30, 2006 and 2005) (Millions of yen)
- ---------------------------------------------------------------------------------------------------------
Three months ended Three months ended
September 30, 2006 September 30, 2005 Change %
- ------------------------------------------------- ------------------ ------------------ ------- -----
JAPAN:
Net sales:
External customers 258,289 252,460 5,829 2.3
Intersegment 122,964 99,327 23,637 23.8
Total 381,253 351,787 29,466 8.4
- ------------------------------------------------- -------- -------- ------- -----
Operating expenses 361,781 334,646 27,135 8.1
- ------------------------------------------------- -------- -------- ------- -----
Operating income 19,472 17,141 2,331 13.6
Operating income on sales in Japan(%) 5.1 4.9
- ------------------------------------------------- -------- -------- ------- -----
THE AMERICAS:
Net sales:
External customers 102,935 96,021 6,914 7.2
Intersegment 742 445 297 66.7
Total 103,677 96,466 7,211 7.5
- ------------------------------------------------- -------- -------- ------- -----
Operating expenses 96,748 91,325 5,423 5.9
- ------------------------------------------------- -------- -------- ------- -----
Operating income 6,929 5,141 1,788 34.8
Operating income on sales in the Americas(%) 6.7 5.3
- ------------------------------------------------- -------- -------- ------- -----
EUROPE:
Net sales:
External customers 113,314 96,093 17,221 17.9
Intersegment 842 1,326 -484 -36.5
Total 114,156 97,419 16,737 17.2
- ------------------------------------------------- -------- -------- ------- -----
Operating expenses 109,194 93,350 15,844 17.0
- ------------------------------------------------- -------- -------- ------- -----
Operating income 4,962 4,069 893 21.9
Operating income on sales in Europe(%) 4.3 4.2
- ------------------------------------------------- -------- -------- ------- -----
OTHER:
Net sales:
External customers 27,808 23,830 3,978 16.7
Intersegment 40,055 24,392 15,663 64.2
Total 67,863 48,222 19,641 40.7
- ------------------------------------------------- -------- -------- ------- -----
Operating expenses 63,357 44,808 18,549 41.4
- ------------------------------------------------- -------- -------- ------- -----
Operating income 4,506 3,414 1,092 32.0
Operating income on sales in Other(%) 6.6 7.1
- ------------------------------------------------- -------- -------- ------- -----
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -164,603 -125,490 -39,113 -
Total -164,603 -125,490 -39,113 -
- ------------------------------------------------- -------- -------- ------- -----
Operating expenses: -161,250 -124,348 -36,902 -
- ------------------------------------------------- -------- -------- ------- -----
Operating income -3,353 -1,142 -2,211 -
- ------------------------------------------------- -------- -------- ------- -----
CONSOLIDATED:
Net sales:
External customers 502,346 468,404 33,942 7.2
Intersegment - - - -
Total 502,346 468,404 33,942 7.2
- ------------------------------------------------- -------- -------- ------- -----
Operating expenses 469,830 439,781 30,049 6.8
- ------------------------------------------------- -------- -------- ------- -----
Operating income 32,516 28,623 3,893 13.6
Operating income on consolidated net sales(%) 6.5 6.1
- ------------------------------------------------- -------- -------- ------- -----
Note:
* As a result of the sale of a business, the operating results from the
discontinued operation have been reclassified in accordance with Statement of
Financial Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment
or Disposal of Long-Lived Assets".
Identifiable assets: (Millions of yen)
- -----------------------------------------------------------------------
September 30, 2006 September 30, 2005 Change %
- -------------------- ------------------ ------------------ ------- ----
Japan 1,257,839 1,186,255 71,584 6.0
The Americas 249,432 235,714 13,718 5.8
Europe 262,571 226,006 36,565 16.2
Other 93,698 73,123 20,575 28.1
Elimination -179,148 -145,994 -33,154 -
Corporate assets 413,371 373,483 39,888 10.7
- -------------------- ------------------ ------------------ ------- ----
Total 2,097,763 1,948,587 149,176 7.7
- -------------------- ------------------ ------------------ ------- ----
22
(Half year ended September 30, 2006 and 2005 and Year ended March 31, 2006) (Millions of yen)
- -------------------------------------------------------------------------------------------------------------
Half year ended Half year ended Year ended
September 30, 2006 September 30, 2005 Change % March 31, 2006
- ------------------------------------------ ------------------ ------------------ ------- ----- --------------
JAPAN:
Net sales:
External customers 504,429 492,467 11,962 2.4 992,945
Intersegment 246,032 204,313 41,719 20.4 413,087
Total 750,461 696,780 53,681 7.7 1,406,032
- ------------------------------------------ -------- -------- ------- ----- ---------
Operating expenses 698,853 651,425 47,428 7.3 1,310,233
- ------------------------------------------ -------- -------- ------- ----- ---------
Operating income 51,608 45,355 6,253 13.8 95,799
Operating income on sales in Japan(%) 6.9 6.5 6.8
- ------------------------------------------ -------- -------- ------- ----- ---------
THE AMERICAS:
Net sales:
External customers 203,560 182,319 21,241 11.7 385,746
Intersegment 1,731 1,753 -22 -1.3 7,630
Total 205,291 184,072 21,219 11.5 393,376
- ------------------------------------------ -------- -------- ------- ----- ---------
Operating expenses 196,341 177,607 18,734 10.5 378,108
- ------------------------------------------ -------- -------- ------- ----- ---------
Operating income 8,950 6,465 2,485 38.4 15,268
Operating income on sales in the
Americas(%) 4.4 3.5 3.9
- ------------------------------------------ -------- -------- ------- ----- ---------
EUROPE:
Net sales:
External customers 226,823 199,569 27,254 13.7 434,304
Intersegment 1,740 2,446 -706 -28.9 4,449
Total 228,563 202,015 26,548 13.1 438,753
- ------------------------------------------ -------- -------- ------- ----- ---------
Operating expenses 218,977 192,048 26,929 14.0 417,341
- ------------------------------------------ -------- -------- ------- ----- ---------
Operating income 9,586 9,967 -381 -3.8 21,412
Operating income on sales in Europe(%) 4.2 4.9 4.9
- ------------------------------------------ -------- -------- ------- ----- ---------
OTHER:
Net sales:
External customers 52,110 45,514 6,596 14.5 96,243
Intersegment 72,402 48,019 24,383 50.8 104,045
Total 124,512 93,533 30,979 33.1 200,288
- ------------------------------------------ -------- -------- ------- ----- ---------
Operating expenses 115,687 86,934 28,753 33.1 185,283
- ------------------------------------------ -------- -------- ------- ----- ---------
Operating income 8,825 6,599 2,226 33.7 15,005
Operating income on sales in Other(%) 7.1 7.1 7.5
- ------------------------------------------ -------- -------- ------- ----- ---------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -321,905 -256,531 -65,374 - -529,211
Total -321,905 -256,531 -65,374 - -529,211
- ------------------------------------------ -------- -------- ------- ----- ---------
Operating expenses: -316,099 -253,157 -62,942 - -530,311
- ------------------------------------------ -------- -------- ------- ----- ---------
Operating income -5,806 -3,374 -2,432 - 1,100
- ------------------------------------------ -------- -------- ------- ----- ---------
CONSOLIDATED:
Net sales:
External customers 986,922 919,869 67,053 7.3 1,909,238
Intersegment - - - - -
Total 986,922 919,869 67,053 7.3 1,909,238
- ------------------------------------------ -------- -------- ------- ----- ---------
Operating expenses 913,759 854,857 58,902 6.9 1,760,654
- ------------------------------------------ -------- -------- ------- ----- ---------
Operating income 73,163 65,012 8,151 12.5 148,584
Operating income on consolidated net
sales(%) 7.4 7.1 7.8
- ------------------------------------------ -------- -------- ------- ----- ---------
Note:
* As a result of the sale of a business, the operating results from the
discontinued operation have been reclassified in accordance with Statement of
Financial Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment
or Disposal of Long-Lived Assets".
Identifiable assets: (Millions of yen)
- --------------------------------------------------------------------------------------
September 30, 2006 September 30, 2005 Change % March 31, 2006
- -------------------- ------------------ ------------------ ------- ---- --------------
Japan 1,257,839 1,186,255 71,584 6.0 1,220,780
The Americas 249,432 235,714 13,718 5.8 240,726
Europe 262,571 226,006 36,565 16.2 235,897
Other 93,698 73,123 20,575 28.1 79,102
Elimination -179,148 -145,994 -33,154 - -152,438
Corporate assets 413,371 373,483 39,888 10.7 417,116
- -------------------- --------- --------- ------- ---- ---------
Total 2,097,763 1,948,587 149,176 7.7 2,041,183
- -------------------- --------- --------- ------- ---- ---------
23
7. SIGNIFICANT ACCOUNTING POLICIES (CONSOLIDATED)
1. CHANGE RELATING TO THE SCALE OF CONSOLIDATION AND THE APPLICATION OF THE
EQUITY METHOD FROM APRIL 1, 2006 TO SEPTEMBER 30, 2006.
Consolidated subsidiaries:
1 Addition
8 Removals
Companies accounted for by the equity method:
4 Removals
2. CONSOLIDATED ACCOUNTING POLICIES (SUMMARY)
(1)Principles of Consolidation
The consolidated financial statements include the accounts of Ricoh and its
consolidated subsidiaries. Investments in 20% to 50% owned companies when the
company has the ability to exercise significant influence are accounted for on
the equity basis. All significant inter-company balances and transactions have
been eliminated in consolidation.
(2)Securities
In conformity with SFAS No.115, securities are mainly classified as
available-for-sale securities. Available-for-sale securities 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 is 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 intangible asset determined to
have an indefinite useful life are not amortized. SFAS No.142 requires annual
impairment testing thereof.
(6)Pension and Retirement Allowances Plans
The measurement of pension costs and liabilities is determined in accordance
with SFAS No.87, "Employers' Accounting for Pensions." Under SFAS 87, changes
in the amount of either the projected benefit obligation or plan assets
resulting from actual results different from that assumed and from changes in
assumptions can result in gains and losses not yet recognized in the
consolidated financial statements. Amortization of an unrecognized net gain or
loss is included as a component of the net periodic benefit plan cost for a
year if, as of the beginning of the year, that unrecognized net gain or loss
exceeds 10 percent of the greater of (1) the projected benefit obligation or
(2) the fair value of that plan's assets. In such case, the amount of
amortization recognized is the resulting excess divided by the average
remaining service period of active employees expected to receive benefits under
the plan. The expected long-term rate of return on plan assets used for pension
accounting is determined based on the historical long-term rate of return on
plan assets. The discount rate is determined based on the rates of return of
high-quality fixed-income investments currently available and expected to be
available during the period to maturity of the pension benefits.
(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.
24
8. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) FAIR VALUE OF MARKETABLE SECURITIES
The securities and the respective cost, gross unrealized holding gains, gross
unrealized holding losses and fair value as of September 30, 2006 and March 31,
2006 are as follows:
(Millions of yen)
- ------------------------------------------------------------------------------------------
September 30, 2006
- ------------------------------------------------------------------------------------------
Gross unrealized Gross unrealized
Cost holding gains holding losses Fair value
- -------------------------------------- ------ ---------------- ---------------- ----------
Current:
Corporate debt securities 170 - - 170
Other 1 - - 1
- -------------------------------------- ------ ------ ------- ------
171 - - 171
- -------------------------------------- ------ ------ ------- ------
Noncurrent:
Equity securities 8,563 10,891 53 19,401
Corporate debt securities 6,000 1 - 6,001
Other 299 - - 299
Nonmarketable securities (at cost) 6,406 - - 6,406
- -------------------------------------- ------ ------ ------- ------
21,268 10,892 53 32,107
- -------------------------------------- ------ ------ ------- ------
(Millions of yen)
- ------------------------------------------------------------------------------------------
March 31, 2006
- ------------------------------------------------------------------------------------------
Gross unrealized Gross unrealized
Cost holding gains holding losses Fair value
- -------------------------------------- ------ ---------------- ---------------- ----------
Current:
Corporate debt securities 161 - - 161
Other 1 - - 1
- -------------------------------------- ------ ------ ------- ------
162 - - 162
- -------------------------------------- ------ ------ ------- ------
Noncurrent:
Equity securities 8,034 15,716 37 23,713
Corporate debt securities 6,000 50 - 6,050
Other 171 - - 171
Nonmarketable securities (at cost) 6,485 - - 6,485
- -------------------------------------- ------ ------ ------- ------
20,690 15,766 37 36,419
- -------------------------------------- ------ ------ ------- ------
(2) DERIVATIVES
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. The outstanding agreements,
carrying amount and estimated fair value of derivative financial instruments as
of September 30, 2006 and March 31, 2006 are as follows:
(Millions of yen)
- ----------------------------------------------------------------------
September 30, 2006
- ----------------------------------------------------------------------
Estimated
Carrying Fair
amount value
- ----------------------------------------- ------------------ ---------
Interest rate swap agreements, net 1,023 1,023
Foreign currency contracts-net credit -616 -616
Currency options-net credit -777 -777
- ----------------------------------------- ------ ------
Total -370 -370
- ----------------------------------------- ------ ------
(Millions of yen)
- ----------------------------------------------------------------------
March 31, 2006
- ----------------------------------------------------------------------
Estimated
Carrying Fair
amount value
- ----------------------------------------- ------------------ ---------
Interest rate swap agreements, net 1,175 1,175
Foreign currency contracts-net credit -1,147 -1,147
Currency options -270 -270
- ----------------------------------------- ------ ------
Total -242 -242
- ----------------------------------------- ------ ------
(3) TRANSACTIONS OF RICOH WITH AFFILIATES
(Millions of yen)
- ----------------------------------------------------------------------------
September 30, 2006 March 31, 2006
- ----------------------------------------- ------------------ ---------------
Account balances:
Receivables 2,955 3,493
Payables 2,490 2,706
- ----------------------------------------- ------------------ ---------------
(Millions of yen)
- ----------------------------------------------------------------------------
Half year ended Year ended
September 30, 2006 March 31, 2006
- ----------------------------------------- ------------------ ---------------
Transactions:
Sales 8,292 20,205
Purchases 14,697 25,617
Dividend income 829 1,175
- ----------------------------------------- ------------------ ---------------
25
- -APPENDIX- (Half year ended September 30, 2006)
1. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Three months ended September 30, 2006 and 2005) (Millions of yen)
- --------------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Change excluding
September 30, 2006 September 30, 2005 Change % exchange impact %
- ----------------------------------------------------- ------------------ ------------------ -------- ---- ---------------- -----
[Office Solutions]
Imaging Solutions 370,871 343,643 27,228 7.9 12,810 3.7
Percentage of net sales (%) 73.8 73.4
Domestic 142,871 139,619 3,252 2.3 3,252 2.3
Overseas 228,000 204,024 23,976 11.8 9,558 4.7
Network System Solutions 55,417 54,565 852 1.6 602 1.1
Percentage of net sales (%) 11.1 11.6
Domestic 52,405 52,385 20 0.0 20 0.0
Overseas 3,012 2,180 832 38.2 582 26.7
Office Solutions Total 426,288 398,208 28,080 7.1 13,412 3.4
Percentage of net sales (%) 84.9 85.0
Domestic 195,276 192,004 3,272 1.7 3,272 1.7
Overseas 231,012 206,204 24,808 12.0 10,140 4.9
The Americas 97,889 91,407 6,482 7.1 2,212 2.4
Europe 106,863 92,393 14,470 15.7 5,540 6.0
Other 26,260 22,404 3,856 17.2 2,388 10.7
- ----------------------------------------------------- --------- --------- -------- ---- ------ -----
[Industrial Products]
Industrial Products 33,547 32,381 1,166 3.6 559 1.7
Percentage of net sales (%) 6.7 6.9
Domestic 19,667 20,220 -553 -2.7 -553 -2.7
Overseas 13,880 12,161 1,719 14.1 1,112 9.1
The Americas 4,752 5,082 -330 -6.5 -512 -10.1
Europe 4,681 3,528 1,153 32.7 805 22.8
Other 4,447 3,551 896 25.2 819 23.1
- ----------------------------------------------------- --------- --------- -------- ---- ------ -----
[Other]
Other 42,511 37,815 4,696 12.4 4,438 11.7
Percentage of net sales (%) 8.4 8.1
Domestic 37,117 33,068 4,049 12.2 4,049 12.2
Overseas 5,394 4,747 647 13.6 389 8.2
The Americas 308 270 38 14.0 24 8.8
Europe 1,450 999 451 45.1 331 33.1
Other 3,636 3,478 158 4.5 34 1.0
- ----------------------------------------------------- --------- --------- -------- ---- ------ -----
Grand Total 502,346 468,404 33,942 7.2 18,409 3.9
Percentage of net sales (%) 100.0 100.0
Domestic 252,060 245,292 6,768 2.8 6,768 2.8
Percentage of net sales (%) 50.2 52.4
Overseas 250,286 223,112 27,174 12.2 11,641 5.2
Percentage of net sales (%) 49.8 47.6
The Americas 102,949 96,759 6,190 6.4 1,724 1.8
Percentage of net sales (%) 20.5 20.7
Europe 112,994 96,920 16,074 16.6 6,676 6.9
Percentage of net sales (%) 22.5 20.7
Other 34,343 29,433 4,910 16.7 3,241 11.0
Percentage of net sales (%) 6.8 6.2
- ----------------------------------------------------- --------- --------- -------- ---- ------ -----
Reference: Exchange rate
US$ 1 Yen 116.26 Yen 111.22 Yen 5.04
EURO 1 Yen 148.16 Yen 135.79 Yen 12.37
Notes:
* As a result of the sale of a business, the operating results and cash flows
from the discontinued operation have been reclassified in accordance with
Statement of Financial Accounting Standards ("SFAS") No. 144, "Accounting for
the Impairment or Disposal of Long-Lived Assets".
* Each category includes the following product line:
Imaging Solutions Digital PPCs, color PPCs, digital duplicators, facsimile machines, analog PPCs, diazo copiers, scanners,
MFPs(multifunctional printers), laser printers and software
Network System Solutions Personal computers, PC servers, network systems and network related software
Industrial Products Thermal media, optical equipments, semiconductors, electronic component and measuring equipments
Others Optical discs and digital camera
A1
(Half year ended September 30, 2006 and 2005 and Year ended March 31, 2006) (Millions of yen)
- ------------------------------------------------------------------------------------------------------------------------------
Half year ended Half year ended Change excluding Year ended
September 30, 2006 September 30, 2005 Change % exchange impact % March 31, 2006
- ------------------------------------- ------------------ ------------------ ------ ----- ---------------- ----- --------------
[Office Solutions]
Imaging Solutions 743,626 693,130 50,496 7.3 23,131 3.3 1,446,635
Percentage of net sales (%) 75.3 75.4 75.8
Domestic 294,392 289,241 5,151 1.8 5,151 1.8 585,363
Overseas 449,234 403,889 45,345 11.2 17,980 4.5 861,272
Network System Solutions 94,464 93,151 1,313 1.4 942 1.0 190,593
Percentage of net sales (%) 9.6 10.1 10.0
Domestic 89,647 88,984 663 0.7 663 0.7 181,149
Overseas 4,817 4,167 650 15.6 279 6.7 9,444
Office Solutions Total 838,090 786,281 51,809 6.6 24,073 3.1 1,637,228
Percentage of net sales (%) 84.9 85.5 85.8
Domestic 384,039 378,225 5,814 1.5 5,814 1.5 766,512
Overseas 454,051 408,056 45,995 11.3 18,259 4.5 870,716
The Americas 190,930 174,373 16,557 9.5 6,661 3.8 368,184
Europe 214,173 191,064 23,109 12.1 8,057 4.2 412,550
Other 48,948 42,619 6,329 14.9 3,541 8.3 89,982
- ------------------------------------- --------- --------- ------ ----- ------ ----- ---------
[Industrial Products]
Industrial Products 68,256 58,459 9,797 16.8 8,410 14.4 120,636
Percentage of net sales (%) 6.9 6.4 6.3
Domestic 38,497 36,078 2,419 6.7 2,419 6.7 72,379
Overseas 29,759 22,381 7,378 33.0 5,991 26.8 48,257
The Americas 12,091 8,221 3,870 47.1 3,244 39.5 17,391
Europe 9,381 7,473 1,908 25.5 1,323 17.7 16,049
Other 8,287 6,687 1,600 23.9 1,424 21.3 14,817
- ------------------------------------- --------- --------- ------ ----- ------ ----- ---------
[Other]
Other 80,576 75,129 5,447 7.3 4,938 6.6 151,374
Percentage of net sales (%) 8.2 8.1 7.9
Domestic 69,955 63,463 6,492 10.2 6,492 10.2 127,333
Overseas 10,621 11,666 -1,045 -9.0 -1,554 -13.3 24,041
The Americas 563 1,321 -758 -57.4 -786 -59.5 1,837
Europe 2,950 2,862 88 3.1 -116 -4.1 6,201
Other 7,108 7,483 -375 -5.0 -652 -8.7 16,003
- ------------------------------------- --------- --------- ------ ----- ------ ----- ---------
Grand Total 986,922 919,869 67,053 7.3 37,421 4.1 1,909,238
Percentage of net sales (%) 100.0 100.0 100.0
Domestic 492,491 477,766 14,725 3.1 14,725 3.1 966,224
Percentage of net sales (%) 49.9 51.9 50.6
Overseas 494,431 442,103 52,328 11.8 22,696 5.1 943,014
Percentage of net sales (%) 50.1 48.1 49.4
The Americas 203,584 183,915 19,669 10.7 9,119 5.0 387,412
Percentage of net sales (%) 20.6 20.0 20.3
Europe 226,504 201,399 25,105 12.5 9,264 4.6 434,800
Percentage of net sales (%) 23.0 21.9 22.8
Other 64,343 56,789 7,554 13.3 4,313 7.6 120,802
Percentage of net sales (%) 6.5 6.2 6.3
- ------------------------------------- --------- --------- ------ ----- ------ ----- ---------
Reference: Exchange rate
US$ 1 Yen 115.40 Yen 109.42 Yen 5.98 Yen 113.26
EURO 1 Yen 145.98 Yen 135.67 Yen 10.31 Yen 137.86
Notes:
* As a result of the sale of a business, the operating results and cash flows
from the discontinued operation have been reclassified in accordance with
Statement of Financial Accounting Standards ("SFAS") No. 144, "Accounting for
the Impairment or Disposal of Long-Lived Assets".
* Each category includes the following product line:
Imaging Solutions Digital PPCs, color PPCs, digital duplicators, facsimile machines, analog PPCs, diazo copiers, scanners,
MFPs(multifunctional printers), laser printers and software
Network System Solutions Personal computers, PC servers, network systems and network related software
Industrial Products Thermal media, optical equipments, semiconductors, electronic component and measuring equipments
Others Optical discs and digital camera
A2
2. FORECAST OF CONSOLIDATED PERFORMANCE
(Billions of yen)
- ----------------------------------------------------------------------------------------------------------------------
Half year ended Three months ending Half year ending Year ending
Sept. 30, 2006 Change Dec. 31, 2006 Change Mar. 31, 2007 Change Mar. 31, 2007 Change
Results % Forecast % Forecast % Forecast %
- ----------------------- --------------- ------ ------------------- ------ ---------------- ------ ------------- ------
Net sales 986.9 7.3 514.0 8.3 1,080.0 9.2 2,067.0 8.3
Gross profit 407.9 5.8 215.0 7.4 446.5 9.1 854.5 7.5
Operating income 73.1 12.5 40.0 9.9 96.8 15.9 170.0 14.4
Income from continuing
operations before
income taxes 74.2 10.0 38.5 1.3 93.7 9.9 168.0 10.0
Net income 52.0 21.4 23.1 0.4 54.4 0.5 106.5 9.7
- ----------------------- ------ ---- ------ ---- ------- ---- ------- ----
Net income per share (yen) 71.35 - 31.66 - 74.62 - 145.97 -
- ----------------------- ------ ---- ------ ---- ------- ---- ------- ----
Capital expenditures 39.1 - 20.0 - 45.8 - 85.0 -
Depreciation for
tangible fixed assets 33.7 - 18.5 - 38.2 - 72.0 -
R&D expenditures 56.5 - 30.0 - 63.4 - 120.0 -
- ----------------------- ------ ---- ------ ---- ------- ---- ------- ----
Exchange rate (Yen/US$) 115.40 - 115.00 - 115.00 - 115.20 -
Exchange rate (Yen/EURO) 145.98 - 140.00 - 140.00 - 142.99 -
- ----------------------- ------ ---- ------ ---- ------- ---- ------- ----
3. FORECAST OF CONSOLIDATED SALES BY PRODUCT CATEGORY
(Billions of yen)
- -----------------------------------------------------------------------------------------------
Half year ending March 31, 2007 Year ending March 31, 2007
---------------------------------- ----------------------------------
Change Change Change Change
Forecast % Forecast(*) % Forecast % Forecast(*) %
- ------------------------- -------- ------ ----------- ------ -------- ------ ----------- ------
[Office Solutions]
Imaging Solutions 839.7 11.4 844.1 12.0 1,583.4 9.5 1,560.4 7.9
Domestic 312.6 5.6 312.6 5.6 607.0 3.7 607.0 3.7
Overseas 527.1 15.3 531.5 16.2 976.4 13.4 953.4 10.7
Network System Solutions 101.1 3.8 101.1 3.8 195.5 2.6 195.1 2.4
Domestic 95.3 3.4 95.3 3.4 184.9 2.1 184.9 2.1
Overseas 5.8 9.9 5.8 9.9 10.6 12.4 10.2 8.5
Office Solutions Total 940.8 10.6 945.2 11.1 1,778.9 8.7 1,755.6 7.2
Domestic 407.9 5.1 407.9 5.1 791.9 3.3 791.9 3.3
Overseas 532.9 15.2 537.3 16.1 987.0 13.4 963.6 10.7
The Americas 222.2 14.6 226.5 16.9 413.1 12.2 407.5 10.7
Europe 257.1 16.1 257.2 16.1 471.2 14.2 456.3 10.6
Other 53.6 13.3 53.6 13.3 102.6 14.0 99.8 10.9
- ------------------------- ------- ----- ------- ----- ------- ----- ------- -----
[Industrial Products]
Industrial Products 63.6 2.3 63.8 2.6 131.8 9.3 130.6 8.3
Domestic 39.2 8.0 39.2 8.0 77.6 7.3 77.6 7.3
Overseas 24.4 -5.7 24.6 -4.9 54.1 12.2 52.9 9.8
The Americas 6.8 -25.8 7.0 -23.7 18.8 8.6 18.4 6.2
Europe 8.3 -3.2 8.3 -3.2 17.6 10.2 17.0 6.5
Other 9.3 14.4 9.3 14.4 17.5 18.7 17.4 17.5
- ------------------------- ------- ----- ------- ----- ------- ----- ------- -----
[Other]
Other 75.6 -0.8 75.5 -1.0 156.1 3.2 155.5 2.8
Domestic 65.4 2.4 65.4 2.4 135.3 6.3 135.3 6.3
Overseas 10.2 -17.6 10.1 -18.4 20.8 -13.4 20.2 -15.9
The Americas 0.5 -3.1 0.5 -3.1 1.0 -42.1 1.0 -43.7
Europe 2.6 -22.1 2.6 -22.1 5.5 -10.5 5.3 -13.8
Other 7.1 -16.7 7.0 -17.8 14.2 -11.2 13.8 -13.6
- ------------------------- ------- ----- ------- ----- ------- ----- ------- -----
Grand Total 1,080.0 9.2 1,084.5 9.6 2,067.0 8.3 2,041.8 6.9
Domestic 512.5 4.9 512.5 4.9 1,005.0 4.0 1,005.0 4.0
Overseas 567.5 13.3 572.0 14.2 1,062.0 12.6 1,036.8 10.0
The Americas 229.5 12.8 234.0 15.0 433.0 11.8 427.0 10.2
Europe 268.0 14.8 268.1 14.9 494.5 13.7 478.7 10.1
Other 70.0 9.5 69.9 9.3 134.4 11.3 131.0 8.5
- ------------------------- ------- ----- ------- ----- ------- ----- ------- -----
* Excluding foreign exchange impact
A3
- -APPENDIX B-
[SCHEDULE 1] CONSOLIDATED PERFORMANCE
- --------------------------------------------------------------------------------
Half year ended Half year ended Half year ended
September 30, September 30, September 30,
2004 2005 2006
- -------------------------------- --------------- --------------- ---------------
Net sales (left axis) 872.6 919.8 986.9
Net income (right axis) 35.8 42.8 52.0
Return on equity (right axis) 4.4 4.8 5.3
Return on assets (right axis) 3.1 3.5 3.6
Net income per share (left axis) 48.48 58.40 71.35
- -------------------------------- --------------- --------------- ---------------
[SCHEDULE 2] CONSOLIDATED SALES BY PRODUCT LINE
- --------------------------------------------------------------------------------
Half year ended Half year ended Half year ended
September 30, September 30, September 30,
2004 2005 2006
- -------------------------------- --------------- --------------- ---------------
Imaging Solutions 639.0 693.1 743.6
Network System Solutions 95.6 93.1 94.4
Industrial Products 58.7 58.4 68.2
Other 79.1 75.1 80.5
- -------------------------------- --------------- --------------- ---------------
Imaging Solutions (%) 73.2 75.4 75.3
Network System Solutions (%) 11.0 10.1 9.6
Industrial Products (%) 6.7 6.4 6.9
Other (%) 9.1 8.1 8.2
Total 100.0 100.0 100.0
- -------------------------------- --------------- --------------- ---------------
[SCHEDULE 3] CONSOLIDATED SALES BY GEOGRAPHIC AREA
- --------------------------------------------------------------------------------
Half year ended Half year ended Half year ended
September 30, September 30, September 30,
2004 2005 2006
- -------------------------------- --------------- --------------- ---------------
Japan 465.7 477.7 492.4
The Americas 161.3 183.9 203.5
Europe 192.9 201.3 226.5
Other 52.5 56.7 64.3
- -------------------------------- --------------- --------------- ---------------
Japan (%) 53.4 51.9 49.9
The Americas (%) 18.5 20.0 20.6
Europe (%) 22.1 21.9 23.0
Other (%) 6.0 6.2 6.5
Total 100.0 100.0 100.0
- -------------------------------- --------------- --------------- ---------------