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 January 2007
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
January 30, 2007
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[GRAPHIC APPEARS HERE]
January 30, 2007
QUARTERLY REPORT
Third Quarter Ended December 31, 2006
(Results for the Period from October 1, 2006 to December 31, 2006)
PERFORMANCE OUTLINE (CONSOLIDATED)
(1) Three Months Ended December 31, 2006 and 2005
(Billions of yen)
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Three months ended Three months ended
December 31, 2006 December 31, 2005 Change
- --------------------------------------------------------------------------------------------------
Domestic sales 236.8 229.5 3.1%
Overseas sales 268.8 244.8 9.8%
Net sales 505.7 474.4 6.6%
Gross profit 219.3 200.1 9.6%
Operating income 48.6 36.3 33.7%
Income from continuing operations before income taxes 48.7 38.0 28.3%
Net income 31.2 23.0 35.9%
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Exchange rate (Yen/US$) 117.82 117.24 0.58
Exchange rate (Yen/EURO) 151.92 139.41 12.51
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Net income per share (yen) 42.83 31.34 11.49
Net income per share-diluted (yen) 42.66 -- --
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Capital expenditures 17.6 21.2 -3.6
Depreciation for tangible fixed assets 18.2 17.6 0.6
R&D expenditures 27.9 27.2 0.7
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(2) Nine Months Ended December 31, 2006, 2005 and Year Ending March 31, 2007
(Billions of yen)
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Nine months ended Nine months ended Year ending
December 31, 2006 December 31, 2005 March 31, 2007
(Results) (Results) Change (Forecast) Change
- -----------------------------------------------------------------------------------------------------------------------
Domestic sales 729.3 707.3 3.1% 1,002.0 3.7%
Overseas sales 763.3 686.9 11.1% 1,065.0 12.9%
Net sales 1,492.6 1,394.3 7.0% 2,067.0 8.3%
Gross profit 627.2 585.8 7.1% 858.3 8.0%
Operating income 121.8 101.4 20.1% 172.0 15.8%
Income from continuing operations before income taxes 123.0 105.5 16.6% 170.0 11.3%
Net income 83.2 65.8 26.5% 107.5 10.8%
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Exchange rate (Yen/US$) 116.21 112.04 4.17 115.91 2.65
Exchange rate (Yen/EURO) 147.97 136.92 11.05 147.22 9.36
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Net income per share (yen) 114.18 89.74 24.44 147.36 15.03
Net income per share-diluted (yen) 114.01 -- -- 146.20 --
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Total assets 2,205.5 1,990.8 214.7 -- --
Shareholders' equity 1,036.1 929.5 106.6 -- --
Interest-bearing debt 468.0 397.4 70.5 -- --
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Equity ratio (%) 47.0 46.7 0.3 -- --
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Shareholders' equity per share (yen) 1,420.31 1,265.83 154.48 -- --
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Cash flows from operating activities 73.5 90.9 -17.3 -- --
Cash flows from investing activities -60.6 -91.2 30.6 -- --
Cash flows from financing activities 63.6 -32.0 95.7 -- --
Cash and cash equivalents at end of period 269.3 154.8 114.5 -- --
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Capital expenditures 56.8 79.4 -22.6 82.0 -20.0
Depreciation for tangible fixed assets 52.0 48.7 3.2 72.0 4.5
R&D expenditures 84.4 82.1 2.2 120.0 9.6
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RICOH COMPANY, LTD.
* As a result of the sale of a business, the operating results and cash flows
from the discontinued operations 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 has no dilutive securities outstanding as of December 31, 2005 and
there is no difference between bases and diluted net income per share.
Therefore net income per share-diluted for the three months and nine months
ended December 31, 2005 are omitted.
* Ricoh bases the forecast estimates for the year ending 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
PERFORMANCE
* Overview
Consolidated net sales of Ricoh group for the third quarter of fiscal year 2007
(the three months period from October 1 to December 31, 2006) increased by 6.6%
as compared to the previous corresponding period, to Yen 505.7 billion.
During this quarter, the average yen exchange rates were Yen 117.82 against
the U.S. dollar (down Yen 0.58) and Yen 151.92 against the Euro (down Yen
12.51). Net sales would have increased by 4.0% excluding impact of such foreign
currency exchange fluctuations.
As for Japan, sales of color PPCs (plain paper copiers), color MFPs
(multifunctional printers) and laser printers increased. Sales of support and
service related to solution business continued to perform well. Meanwhile,
sales of monochrome PPCs and MFPs decreased as compared to the previous
corresponding period due to a shift in customer demand to color products. Sales
in Industrial Products were almost the same as the previous corresponding
period. Sales in Other, including digital cameras increased. As a result,
domestic net sales increased by 3.1% as compared to the previous corresponding
period.
As for overseas, the increase in sales of PPCs, MFPs, and laser printers,
especially color products contributed to the favorite performance in each
geographic area. As a result, net sales in overseas increased by 9.8% as
compared to the previous corresponding period. Excluding effects of foreign
currency fluctuations, net sales in overseas would have increased by 4.8% as
compared to the previous corresponding period.
Gross profit increased by 9.6% as compared the previous corresponding period.
Gross profit as percentage of net sales increased as compared the previous
corresponding period to 43.4%. This increase in gross profit primarily reflects
increase in sales of value-added high-margin products such as new color
products in each geographic area. Ricoh incurred large amount of strategic
expenses related to (1) research and development activities, (2) enhancement of
its sales and marketing organization structure and (3) investments in
information technologies in connection with development of its core operating
systems. Although selling, general and administrative expenses (SGA) increased
by 4.2% as compared to the previous corresponding period, SGA as percentage of
net sales decreased as compared to the previous corresponding period to 33.8%.
As a result, operating income increased by 33.7% as compared to the previous
corresponding period, to Yen 48.6 billion.
As for other (income) expenses, both interest income and expenses increased due
to rise in interest rate. Net effect of interest income and expenses on profit
was the almost same as the previous corresponding period. Other (income)
expenses decreased, since the foreign currency exchange gain and other, net in
the previous corresponding period was higher relatively. As a result, income
from continuing operations before income taxes increased by 28.3% as compared
to the previous corresponding period, to Yen 48.7 billion.
As for provision for income taxes, effective tax rate in this quarter decreased
as compared to the previous corresponding period, due to the temporal
recognition of deferred income tax accompanied with integration of group
companies in the previous corresponding period. An increase in minority
interests in earnings of subsidiaries and equity in earnings of affiliates were
due to increase in income of subsidiaries and affiliates. As a result, net
income from continuing operations increased by 38.3% as compared to the
previous corresponding period, to Yen 31.2 billion and net income increased
by 35.9% as compared to the previous corresponding period, to Yen 31.2
billion.
2
* Condiftions by Product Line
Office Solutions (Sales up 6.7% to Yen 435.3 billion)
- ------------------------------------------------------
Net sales in the Imaging Solutions as our core business increased as compared
to the previous corresponding period due primarily to increase in sales of
color PPCs, color MFPs and laser printers in Japan and overseas. Net sales in
Network System Solutions are almost the same as the previous corresponding
period due to the increase in sales of support and services mainly in Japan. As
a result, net sales in the Office Solutions increased by 6.7% as compared to
the previous corresponding period, to Yen 435.3 billion.
Imaging Solutions (Sales up 7.4% to Yen 394.3 billion)
-------------------------------------------------------
- Sales of color PPCs and color MFPs increased due primarily to
introduction of new products in all geographic regions such as Japan,
the Americas, Europe and Other.
- In Japan, the decrease in monochrome PPCs and monochrome MFPs was
sufficiently offset by the increase in sales of color products due to a
shift in customer demand to color products. In overseas, the increase in
sales of monochrome PPCs and monochrome MFPs contributed to the increase
in overall sales of PPCs and MFPs.
- While the growth of sales of color and monochrome products differed from
region to region, overall sales of laser printers increased.
Network System Solutions (Sales up 0.4% to Yen 40.9 billion)
-------------------------------------------------------------
- Net sales in Network System Solutions are the almost the same as the
previous corresponding period due to the increase in sales of support
and services mainly in Japan and almost the same as the PC and servers.
On the whole, operating income in this segment increased by 20.2% as compared
to the previous corresponding period, to Yen 61.7 billion, since the increase
in sales and introduction of new products offset the large amount of strategic
expenses. Operating income as a percentage of net sales increased by 1.6
percentage points as compared to the previous corresponding period to 14.2%.
Industrial Products (Sales up 2.9% to Yen 30.5 billion)
- --------------------------------------------------------
Net sales in the Industrial Products increased by 2.9% as compared to the
previous corresponding period, to Yen 30.5 billion. While sales in the
optical equipment business decreased as compared to the previous corresponding
period due primarily to sluggish demand, such decrease in sales in optical
equipment business was sufficiently offset by the increase in sales in thermal
media, electric component, semiconductor and measuring equipment businesses. As
a result, operating income in this segment was improved to Yen 0.6 billion
from the operating loss Yen 0.7 billion in the previous corresponding period.
Other (Sales up 8.3% to Yen 39.8 billion)
- ------------------------------------------
Net sales in the Other increased by 8.3% as compared to the previous
corresponding period, to Yen 39.8 billion due mainly to the favorite
performance of lease business. The operating income in this segment decreased
to Yen 0.2 billion. This decrease was due to the sale of non-core business in
the previous corresponding period.
* Cash Flows (Nine months ended December 31, 2006)
Net cash provided by operating activities decreased by Yen 17.3 billion as
compared to the previous corresponding period, to Yen 73.5 billion. Although
the total of net income and depreciation increased and the balance of trade
receivables slightly decreased as compared to the end of the preceding fiscal
year, the balance of inventories increased as compared to the end of the
preceding fiscal year.
Net cash used in investing activities decreased by Yen 30.6 billion to Yen
60.6 billion, due to the decrease in capital investment. In the previous
corresponding period Ricoh made large capital investments to the key R&D
facilities. Ricoh received the cash inflows from the sale of the content
delivery service business.
As a result, free cash flows generated by operating and investing activities
increased by Yen 13.2 billion as compared to the previous corresponding
period, to Yen 12.9 billion.
Net cash provided by financing activities was Yen 63.6 billion due primarily
to the proceeds from issuance of the convertible bonds (Yen 55.2 billion,
issued on December 7, 2006).
As a result, cash and cash equivalents at the end of this third quarter
increased by Yen 82.3 billion as compared to the end of the preceding fiscal
year, to Yen 269.3 billion.
3
* Forecast for the entire fiscal year
Net sales for fiscal year 2007 is forecasted same as announced in October 2006,
which results from net of its decreasing domestic sales and its increasing
overseas sales, and gross profit operating income, income from continuing
operations and net income are revised upward, based on the result of the third
quarter's performance, the latest competition and currency rate. Exchange rate
of Yen 115.0 against the U.S. dollar and of Yen 145.00 in the fourth
quarter are assumed.
Almost all necessary procedures for the acquisition of European business from
Danka Business Systems PLC (announced on October 12, 2006) have been taken. In
near future, this acquisition will be completed.
Influence of the formation (planned in the next April to June) of a joint
venture with IBM Corporation on the Ricoh's performance for fiscal year 2007
will be immaterial, as announced on January 25, 2007.
Our performance forecasts for fiscal 2007 are as follows:
Exchange rate assumptions for the fiscal year ending March 31, 2007
US$ 1 = Yen 115.91(Yen 113.26 in previous fiscal year)
EURO 1 = Yen 147.22(Yen 137.86 in previous fiscal year)
(Billions of yen)
- ------------------------------------------------------------------------------------------
Year ending Year ended
March 31, 2007 March 31, 2006
(Forecast) (Results) Change
- ------------------------------------------------------------------------------------------
Domestic sales 1,002.0 966.2 3.7%
Overseas sales 1,065.0 943.0 12.9%
Net sales 2,067.0 1,909.2 8.3%
Gross profit 858.3 795.0 8.0%
Operating income 172.0 148.5 15.8%
Income from continuing operations before income taxes 170.0 152.7 11.3%
Net income 107.5 97.0 10.8%
- ------------------------------------------------------------------------------------------
* As a result of the sale of a business, the operating results and cash flows
from the discontinued operations 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.
4
RICOH COMPANY, LTD. AND CONSOLIDATED SUBSIDIARIES
FINANCIAL HIGHLIGHTS FOR THE THIRD QUARTER ENDED DECEMBER 31, 2006 (U.S. GAAP
FINANCIAL INFORMATION)
1. ITEMS RELATING TO THIRD QUARTER FINANCIAL STATEMENTS
(1)No change in accounting method has been made.
(2)Change relating to the scale of consolidation and the application of the
equity method:
Consolidated subsidiaries: 5 additions; 2 removals
Companies accounted for by the equity method: 2 removals
2. RESULTS FOR THE PERIOD FROM OCTOBER 1, 2006 TO DECEMBER 31, 2006
(1) Operating Results
(Millions of yen)
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Three months ended Three months ended Year ended
December 31, 2006 December 31, 2005 March 31, 2006
- ----------------------------------------------------------------------------------------------------------
Net sales 505,712 474,479 1,909,238
(% change from the previous corresponding period) 6.6 7.3 5.6
Operating income 48,652 36,399 148,584
(% change from the previous corresponding period) 33.7 -3.7 13.3
Income from continuing operations before income taxes 48,791 38,020 152,766
(% change from the previous corresponding period) 28.3 12.6 16.6
Net income 31,252 23,000 97,057
(% change from the previous corresponding period) 35.9 3.5 16.7
Net income per share-basic (yen) 42.83 31.34 132.33
Net income per share-diluted (yen) 42.66 -- --
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Note: Equity in earnings of affiliates: Yen 910 million (Yen 762 million in
previous corresponding period)
(2) Financial Position
(Millions of yen)
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December 31, 2006 December 31, 2005 March 31, 2006
- ---------------------------------------------------------------------------------------------
Total assets 2,205,546 1,990,802 2,041,183
Shareholders' equity 1,036,129 929,508 960,245
Equity ratio (%) 47.0 46.7 47.0
Equity per share (yen) 1,420.31 1,265.83 1,316.21
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Cash Flows
(Millions of yen)
- ---------------------------------------------------------------------------------------------
Nine months ended Nine months ended Year ended
December 31, 2006 December 31, 2005 March 31, 2006
- ---------------------------------------------------------------------------------------------
Cash flows from operating activities 73,548 90,940 173,479
Cash flows from investing activities -60,610 -91,247 -120,051
Cash flows from financing activities 63,675 -32,063 -59,989
Cash and cash equivalents at end of period 269,361 154,840 187,055
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3. FORECAST OF OPERATING RESULTS FROM APRIL 1, 2006 TO MARCH 31, 2007
(Millions of yen)
- ----------------------------------------------------------------------------------------------
Net sales 2,067,000
Operating income 172,000
Income before income taxes 170,000
Net income 107,500
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Note: Net income per share (Consolidated) Yen 147.36
Notes:
* As a result of the sale of a business, the operating results and cash flows
from the discontinued operations 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.
5
CONSOLIDATED PERFORMANCE
1. CONSOLIDATED STATEMENTS OF INCOME
(Three months ended December 31, 2006 and 2005) (Millions of yen)
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Three months ended Three months ended
December 31, 2006 December 31, 2005 Change %
- --------------------------------------------------------------------------------------------------------------------------
Net sales 505,712 474,479 31,233 6.6
Cost of sales 286,344 274,312 12,032 4.4
Percentage of net sales (%) 56.6 57.8
Gross Profit 219,368 200,167 19,201 9.6
Percentage of net sales (%) 43.4 42.2
Selling, general and administrative expenses 170,716 163,768 6,948 4.2
Percentage of net sales (%) 33.8 34.5
Operating income 48,652 36,399 12,253 33.7
Percentage of net sales (%) 9.6 7.7
Other (income) expense
Interest and dividend income 1,465 887 578 65.2
Percentage of net sales (%) 0.3 0.2
Interest expense 1,885 1,450 435 30.0
Percentage of net sales (%) 0.4 0.3
Other, net -559 -2,184 1,625 --
Percentage of net sales (%) -0.1 -0.4
Income from continuing operations before income taxes, equity income and
minority interests 48,791 38,020 10,771 28.3
Percentage of net sales (%) 9.6 8.0
Provision for income taxes 17,104 15,190 1,914 12.6
Percentage of net sales (%) 3.3 3.2
Minority interests in earnings of subsidiaries 1,345 999 346 34.6
Percentage of net sales (%) 0.3 0.2
Equity in earnings of affiliates 910 762 148 19.4
Percentage of net sales (%) 0.2 0.2
Income from continuing operations 31,252 22,593 8,659 38.3
Percentage of net sales (%) 6.2 4.8
Income from discontinued operations, net of tax -- 407 -407 --
Percentage of net sales (%) -- 0.0
Net income 31,252 23,000 8,252 35.9
Percentage of net sales (%) 6.2 4.8
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Reference : Exchange rate
US$ 1 Yen 117.82 Yen 117.24
EURO 1 Yen 151.92 Yen 139.41
(Nine months ended December 31, 2006 and 2005 and Year ended March 31, 2006) (Millions of yen)
- -----------------------------------------------------------------------------------------------------------------------------
Nine months ended Nine months ended Year ended
December 31, 2006 December 31, 2005 Change % March 31, 2006
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Net sales 1,492,634 1,394,348 98,286 7.0 1,909,238
Cost of sales 865,350 808,455 56,895 7.0 1,114,238
Percentage of net sales (%) 58.0 58.0 58.4
Gross Profit 627,284 585,893 41,391 7.1 795,000
Percentage of net sales (%) 42.0 42.0 41.6
Selling, general and administrative expenses 505,469 484,482 20,987 4.3 646,416
Percentage of net sales (%) 33.8 34.7 33.8
Operating income 121,815 101,411 20,404 20.1 148,584
Percentage of net sales (%) 8.2 7.3 7.8
Other (income) expense
Interest and dividend income 3,446 2,271 1,175 51.7 2,896
Percentage of net sales (%) 0.2 0.2 0.2
Interest expense 5,123 3,646 1,477 40.5 5,244
Percentage of net sales (%) 0.3 0.3 0.3
Other, net -2,921 -5,493 2,572 -- -6,530
Percentage of net sales (%) -0.1 -0.4 -0.3
Income from continuing operations before income taxes, equity
income and minority interests 123,059 105,529 17,530 16.6 152,766
Percentage of net sales (%) 8.2 7.6 8.0
Provision for income taxes 42,984 39,202 3,782 9.6 56,165
Percentage of net sales (%) 2.8 2.8 2.9
Minority interests in earnings of subsidiaries 4,226 3,689 537 14.6 4,185
Percentage of net sales (%) 0.3 0.3 0.2
Equity in earnings of affiliates 1,948 1,697 251 14.8 2,606
Percentage of net sales (%) 0.1 0.1 0.1
Income from continuing operations 77,797 64,335 13,462 20.9 95,022
Percentage of net sales (%) 5.2 4.6 5.0
Income from discontinued operations, net of tax 5,500 1,532 3,968 259.0 2,035
Percentage of net sales (%) 0.4 0.1 0.1
Net income 83,297 65,867 17,430 26.5 97,057
Percentage of net sales (%) 5.6 4.7 5.1
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Reference : Exchange rate
US$ 1 Yen 116.21 Yen 112.04 Yen 113.26
EURO 1 Yen 147.97 Yen 136.92 Yen 137.86
Note:
* As a result of the sale of a business, the operating results from the
discontinued operations have been reclassified in accordance with Statement
of Financial Accounting Standards ("SFAS") No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets".
6
2-1. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Three months ended December 31, 2006 and 2005) (Millions of yen)
- ------------------------------------------------------------------------------------------------
Three months ended Three months ended
December 31, 2006 December 31, 2005 Change %
- ------------------------------------------------------------------------------------------------
[Office Solutions]
Imaging Solutions 394,391 367,207 27,184 7.4
Percentage of net sales (%) 78.0 77.4
Network System Solutions 40,924 40,779 145 0.4
Percentage of net sales (%) 8.1 8.6
Total Office Solutions 435,315 407,986 27,329 6.7
Percentage of net sales (%) 86.1 86.0
- ------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 30,570 29,715 855 2.9
Percentage of net sales (%) 6.0 6.3
- ------------------------------------------------------------------------------------------------
[Other]
Other 39,827 36,778 3,049 8.3
Percentage of net sales (%) 7.9 7.7
- ------------------------------------------------------------------------------------------------
Grand Total 505,712 474,479 31,233 6.6
Percentage of net sales (%) 100.0 100.0
- ------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 117.82 Yen 117.24
EURO 1 Yen 151.92 Yen 139.41
(Nine months ended December 31, 2006 and 2005 and Year ended March 31, 2006) (Millions of yen)
- ------------------------------------------------------------------------------------------------------------
Nine months ended Nine months ended Year ended
December 31, 2006 December 31, 2005 Change % March 31, 2006
- ------------------------------------------------------------------------------------------------------------
[Office Solutions]
Imaging Solutions 1,138,017 1,060,337 77,680 7.3 1,446,635
Percentage of net sales (%) 76.2 76.0 75.8
Network System Solutions 135,388 133,930 1,458 1.1 190,593
Percentage of net sales (%) 9.1 9.7 10.0
Total Office Solutions 1,273,405 1,194,267 79,138 6.6 1,637,228
Percentage of net sales (%) 85.3 85.7 85.8
- ------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 98,826 88,174 10,652 12.1 120,636
Percentage of net sales (%) 6.6 6.3 6.3
- ------------------------------------------------------------------------------------------------------------
[Other]
Other 120,403 111,907 8,496 7.6 151,374
Percentage of net sales (%) 8.1 8.0 7.9
- ------------------------------------------------------------------------------------------------------------
Grand Total 1,492,634 1,394,348 98,286 7.0 1,909,238
Percentage of net sales (%) 100.0 100.0 100.0
- ------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 116.21 Yen 112.04 Yen 113.26
EURO 1 Yen 147.97 Yen 136.92 Yen 137.86
Notes:
* As a result of the sale of a business, the operating results from the
discontinued operations 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
7
2-2. CONSOLIDATED SALES BY GEOGRAPHIC AREA
(Three months ended December 31, 2006 and 2005) (Millions of yen)
- -------------------------------------------------------------------------------------------------
Three months ended Three months ended
December 31, 2006 December 31, 2005 Change %
- -------------------------------------------------------------------------------------------------
[Domestic] 236,817 229,594 7,223 3.1
Percentage of net sales (%) 46.8 48.4
[Overseas] 268,895 244,885 24,010 9.8
Percentage of net sales (%) 53.2 51.6
The Americas 105,785 98,176 7,609 7.8
Percentage of net sales (%) 20.9 20.7
Europe 129,798 115,109 14,689 12.8
Percentage of net sales (%) 25.7 24.3
Other 33,312 31,600 1,712 5.4
Percentage of net sales (%) 6.6 6.6
Grand Total 505,712 474,479 31,233 6.6
Percentage of net sales (%) 100.0 100.0
- -------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 117.82 Yen 117.24
EURO 1 Yen 151.92 Yen 139.41
(Nine months ended December 31, 2006 and 2005 and Year ended March 31, 2006) (Millions of yen)
- ------------------------------------------------------------------------------------------------------------
Nine months ended Nine months ended Year ended
December 31, 2006 December 31, 2005 Change % March 31, 2006
- ------------------------------------------------------------------------------------------------------------
[Domestic] 729,308 707,360 21,948 3.1 966,224
Percentage of net sales (%) 48.9 50.7 50.6
[Overseas] 763,326 686,988 76,338 11.1 943,014
Percentage of net sales (%) 51.1 49.3 49.4
The Americas 309,369 282,091 27,278 9.7 387,412
Percentage of net sales (%) 20.7 20.2 20.3
Europe 356,302 316,508 39,794 12.6 434,800
Percentage of net sales (%) 23.9 22.7 22.8
Other 97,655 88,389 9,266 10.5 120,802
Percentage of net sales (%) 6.5 6.4 6.3
Grand Total 1,492,634 1,394,348 98,286 7.0 1,909,238
Percentage of net sales (%) 100.0 100.0 100.0
- ------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 116.21 Yen 112.04 Yen 113.26
EURO 1 Yen 147.97 Yen 136.92 Yen 137.86
Note:
* As a result of the sale of a business, the operating results from the
discontinued operations have been reclassified in accordance with Statement
of Financial Accounting Standards ("SFAS") No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets".
8
3. CONSOLIDATED BALANCE SHEETS
(December 31, 2006 and March 31, 2006)
Assets (Millions of yen)
- --------------------------------------------------------------------------------------------------------------------
December 31, 2006 March 31, 2006 Change
- --------------------------------------------------------------------------------------------------------------------
Current Assets
Cash and time deposits 270,821 188,525 82,296
Trade receivables 655,105 630,501 24,604
Marketable securities 179 162 17
Inventories 207,369 169,245 38,124
Other current assets 60,451 55,110 5,341
Total Current Assets 1,193,925 1,043,543 150,382
Fixed Assets
Tangible fixed assets 268,572 268,243 329
Finance receivables 429,401 415,435 13,966
Other Investments 313,648 313,962 -314
Total Fixed Assets 1,011,621 997,640 13,981
- --------------------------------------------------------------------------------------------------------------------
Total Assets 2,205,546 2,041,183 164,363
- --------------------------------------------------------------------------------------------------------------------
Note:
Contents of cash and time deposits:
Cash and cash equivalents 269,361 187,055
Time deposits 1,460 1,470
Liabilities and Shareholders' Investment (Millions of yen)
- --------------------------------------------------------------------------------------------------------------------
December 31, 2006 March 31, 2006 Change
- --------------------------------------------------------------------------------------------------------------------
Current Liabilities
Trade payables 329,575 339,152 -9,577
Short-term borrowings 221,210 185,651 35,559
Other current liabilities 161,056 159,225 1,831
Total Current Liabilities 711,841 684,028 27,813
Fixed Liabilities
Long-term indebtedness 246,836 195,626 51,210
Accrued pension and severance costs 97,678 97,020 658
Other fixed liabilities 56,558 51,374 5,184
Total Fixed Liabilities 401,072 344,020 57,052
- --------------------------------------------------------------------------------------------------------------------
Total Liabilities 1,112,913 1,028,048 84,865
- --------------------------------------------------------------------------------------------------------------------
Minority Interest 56,504 52,890 3,614
- --------------------------------------------------------------------------------------------------------------------
Shareholders' Investment
Common stock 135,364 135,364 --
Additional paid-in capital 186,452 186,450 2
Retained earnings 730,435 665,394 65,041
Accumulated other comprehensive income (loss) 15,106 4,099 11,007
Treasury stock -31,228 -31,062 -166
Total Shareholders' Investment 1,036,129 960,245 75,884
- --------------------------------------------------------------------------------------------------------------------
Total Liabilities and Shareholders' Investment 2,205,546 2,041,183 164,363
- --------------------------------------------------------------------------------------------------------------------
Note: Other comprehensive income;
Net unrealized holding gains (losses) on available-for-sale securities 6,235 8,928 -2,693
Pension liability adjustments -6,579 -7,643 1,064
Net unrealized gains (losses) on derivative instruments -36 157 -193
Cumulative translation adjustments 15,486 2,657 12,829
Reference: Exchange rate December 31, 2006 March 31, 2006
US$ 1 Yen 119.11 Yen 117.47
EURO 1 Yen 156.50 Yen 142.81
9
4. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT
Nine months ended December 31, 2006 (Millions of yen)
- ------------------------------------------------------------------------------------------------------------------------
Accumulated
Additional other Total
Common paid-in Retained comprehensive Treasury Shareholders'
stock capital earnings income (loss) stock Investment
- ------------------------------------------------------------------------------------------------------------------------
Beginning balance 135,364 186,450 665,394 4,099 -31,062 960,245
- ------------------------------------------------------------------------------------------------------------------------
Gain on disposal of treasury stock 2 2
Dividends declared and approved -18,256 -18,256
Comprehensive income (loss)
Net income 83,297 83,297
Net unrealized holding losses on available-for-sale
securities -2,693 -2,693
Pension liability adjustments 1,064 1,064
Net unrealized losses on derivative instruments -193 -193
Cumulative translation adjustments 12,829 12,829
- ------------------------------------------------------------------------------------------------------------------------
Total comprehensive income (loss) 94,304
- ------------------------------------------------------------------------------------------------------------------------
Purchase of treasury stock, net -166 -166
- ------------------------------------------------------------------------------------------------------------------------
Ending balance 135,364 186,452 730,435 15,106 -31,228 1,036,129
========================================================================================================================
Nine months ended December 31, 2005 (Millions of yen)
- ------------------------------------------------------------------------------------------------------------------------
Accumulated
Additional other Total
Common paid-in Retained comprehensive Treasury Shareholders'
stock capital earnings income (loss) 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 (loss)
Net income 65,867 65,867
Net unrealized holding gains on available-for-sale
securities 3,064 3,064
Pension liability adjustments 699 699
Net unrealized losses on derivative instruments -50 -50
Cumulative translation adjustments 12,634 12,634
-----------
Total comprehensive income (loss) 82,214
-----------
Purchase of treasury stock, net 575 575
- ------------------------------------------------------------------------------------------------------------------------
Ending balance 135,364 186,450 634,204 -5,616 -20,894 929,508
========================================================================================================================
Year ended March 31, 2006 (Millions of yen)
- ------------------------------------------------------------------------------------------------------------------------
Accumulated
Additional other Total
Common paid-in Retained comprehensive Treasury Shareholders'
stock capital earnings income (loss) 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 (loss)
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 (loss) 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
========================================================================================================================
10
5. CONSOLIDATED STATEMENTS OF CASH FLOWS
(Nine months ended December 31, 2006 and 2005 and Year ended March 31, 2006) (Millions of yen)
- --------------------------------------------------------------------------------------------------------------------------
Nine months ended Nine months ended Year ended
December 31, 2006 December 31, 2005 March 31, 2006
- --------------------------------------------------------------------------------------------------------------------------
I. Cash Flows from Operating Activities:
Net income 83,297 65,867 97,057
Income from discontinued operations, net of tax -5,500 -1,532 -2,035
--------------------------------------------------
Income from continuing operations 77,797 64,335 95,022
Adjustments to reconcile net income to net cash
provided by operating activities--
Depreciation and amortization 65,280 61,997 84,089
Equity in earnings of affiliates, net of dividends received -1,106 -872 -1,431
Deferred income taxes -1,540 -4,202 -4,692
Loss on disposal and sales of tangible fixed assets 2,775 1,794 920
Pension and severance costs, less payments -1,138 2,220 3,340
Changes in assets and liabilities--
Decrease in trade receivables 2,332 20,232 13,411
(Increase) decrease in inventories -30,761 913 3,726
Increase in finance receivables -15,705 -25,204 -30,029
Decrease in trade payables -13,571 -31,436 -4,442
(Decrease) increase in accrued income taxes and
accrued expenses and other -3,634 -2,745 2,505
Other, net -7,181 3,908 11,060
- --------------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 73,548 90,940 173,479
- --------------------------------------------------------------------------------------------------------------------------
II. Cash Flows from Investing Activities:
Proceeds from sales of property, plant and equipment 404 331 3,085
Expenditures for tangible fixed assets -56,760 -79,263 -101,788
Payments for purchases of available-for-sale securities -73,155 -114,519 -138,607
Proceeds from sales of available-for-sale securities 72,205 117,417 141,620
(Increase) decrease in time deposits, net 26 -331 -136
Proceeds from sales of discontinued operation 12,000 -- --
Other, net -15,330 -14,882 -24,225
- --------------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities -60,610 -91,247 -120,051
- --------------------------------------------------------------------------------------------------------------------------
III. Cash Flows from Financing Activities:
Proceeds from long-term indebtedness 54,782 61,160 63,751
Repayment of long-term indebtedness -25,958 -67,833 -93,752
Increase in short-term borrowings, net 7,064 43,887 39,618
Proceeds from issuance of long-term debt securities 65,274 -- 10,000
Repayment of long-term debt securities -18,000 -52,000 -52,000
Dividend paid -18,256 -16,178 -16,178
Payment for purchase of treasury stock -593 -487 -10,653
Other, net -638 -612 -775
- --------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities 63,675 -32,063 -59,989
- --------------------------------------------------------------------------------------------------------------------------
IV. Net Increase in Cash and Cash Equivalents from discontinued operations 825 2,579 3,376
- --------------------------------------------------------------------------------------------------------------------------
V. Effect of Exchange Rate Changes on Cash and Cash Equivalents 4,868 -2,226 3,383
- --------------------------------------------------------------------------------------------------------------------------
VI. Net Increase (Decrease) in Cash and Cash Equivalents 82,306 -32,017 198
- --------------------------------------------------------------------------------------------------------------------------
VII. Cash and Cash Equivalents at Beginning of Year 187,055 186,857 186,857
- --------------------------------------------------------------------------------------------------------------------------
VIII. Cash and Cash Equivalents at End of Period 269,361 154,840 187,055
- --------------------------------------------------------------------------------------------------------------------------
Note:
* As a result of the sale of a business, the operating results from the
discontinued operations have been reclassified in accordance with Statement
of Financial Accounting Standards ("SFAS") No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets".
11
6. SEGMENT INFORMATION
(1) Industry Segment Information
(Three months ended December 31, 2006 and 2005) (Millions of yen)
- ---------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
December 31, 2006 December 31, 2005 Change %
- ---------------------------------------------------------------------------------------------------------------
OFFICE SOLUTIONS:
Net sales:
Unaffiliated customers 435,315 407,986 27,329 6.7
Intersegment -- -- --
Total 435,315 407,986 27,329 6.7
- ---------------------------------------------------------------------------------------------------------------
Operating expenses 373,589 356,613 16,976 4.8
- ---------------------------------------------------------------------------------------------------------------
Operating income 61,726 51,373 10,353 20.2
Operating income on sales in Office Solutions (%) 14.2 12.6
- ---------------------------------------------------------------------------------------------------------------
INDUSTRIAL PRODUCTS:
Net sales:
Unaffiliated customers 30,570 29,715 855 2.9
Intersegment 1,313 658 655 99.5
Total 31,883 30,373 1,510 5.0
- ---------------------------------------------------------------------------------------------------------------
Operating expenses 31,262 31,074 188 0.6
- ---------------------------------------------------------------------------------------------------------------
Operating income 621 -701 1,322 --
Operating income on sales in Industrial Products (%) 1.9 -2.3
- ---------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
Unaffiliated customers 39,827 36,778 3,049 8.3
Intersegment -- -- --
Total 39,827 36,778 3,049 8.3
- ---------------------------------------------------------------------------------------------------------------
Operating expenses 39,570 34,983 4,587 13.1
- ---------------------------------------------------------------------------------------------------------------
Operating income 257 1,795 -1,538 -85.7
Operating income on sales in Other (%) 0.6 4.9
- ---------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -1,313 -658 -655
Total -1,313 -658 -655 --
- ---------------------------------------------------------------------------------------------------------------
Operating expenses:
Intersegment -1,268 -662 -606 --
Corporate 13,907 16,072 -2,165 --
Total 12,639 15,410 -2,771 --
- ---------------------------------------------------------------------------------------------------------------
Operating income -13,952 -16,068 2,116 --
- ---------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
Unaffiliated customers 505,712 474,479 31,233 6.6
Intersegment -- -- --
Total 505,712 474,479 31,233 6.6
- ---------------------------------------------------------------------------------------------------------------
Operating expenses 457,060 438,080 18,980 4.3
- ---------------------------------------------------------------------------------------------------------------
Operating income 48,652 36,399 12,253 33.7
Operating income on consolidated net sales (%) 9.6 7.7
- ---------------------------------------------------------------------------------------------------------------
Note:
* As a result of the sale of a business, the operating results from the
discontinued operations have been reclassified in accordance with Statement
of Financial Accounting Standards ("SFAS") No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets".
12
(Nine months ended December 31, 2006 and 2005and Year ended March 31, 2006) (Millions of yen)
- ---------------------------------------------------------------------------------------------------------------------------
Nine months ended Nine months ended Year ended
December 31, 2006 December 31, 2005 Change % March 31, 2006
- ---------------------------------------------------------------------------------------------------------------------------
OFFICE SOLUTIONS:
Net sales:
Unaffiliated customers 1,273,405 1,194,267 79,138 6.6 1,637,228
Intersegment -- -- -- --
Total 1,273,405 1,194,267 79,138 6.6 1,637,228
- ---------------------------------------------------------------------------------------------------------------------------
Operating expenses 1,112,909 1,052,462 60,447 5.7 1,434,279
- ---------------------------------------------------------------------------------------------------------------------------
Operating income 160,496 141,805 18,691 13.2 202,949
Operating income on sales in Office Solutions (%) 12.6 11.9 12.4
- ---------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PRODUCTS:
Net sales:
Unaffiliated customers 98,826 88,174 10,652 12.1 120,636
Intersegment 3,638 1,902 1,736 91.3 2,564
Total 102,464 90,076 12,388 13.8 123,200
- ---------------------------------------------------------------------------------------------------------------------------
Operating expenses 100,949 90,948 10,001 11.0 124,108
- ---------------------------------------------------------------------------------------------------------------------------
Operating income 1,515 -872 2,387 -- -908
Operating income on sales in Industrial Products (%) 1.5 -1.0 -0.7
- ---------------------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
Unaffiliated customers 120,403 111,907 8,496 7.6 151,374
Intersegment -- -- -- --
Total 120,403 111,907 8,496 7.6 151,374
- ---------------------------------------------------------------------------------------------------------------------------
Operating expenses 118,248 109,879 8,369 7.6 148,692
- ---------------------------------------------------------------------------------------------------------------------------
Operating income 2,155 2,028 127 6.3 2,682
Operating income on sales in Other (%) 1.8 1.8 1.8
- ---------------------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -3,638 -1,902 -1,736 -- -2,564
Total -3,638 -1,902 -1,736 -- -2,564
- ---------------------------------------------------------------------------------------------------------------------------
Operating expenses:
Intersegment -3,638 -1,941 -1,697 -- -2,594
Corporate 42,351 41,589 762 -- 56,169
Total 38,713 39,648 -935 -- 53,575
- ---------------------------------------------------------------------------------------------------------------------------
Operating income -42,351 -41,550 -801 -- -56,139
- ---------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
Unaffiliated customers 1,492,634 1,394,348 98,286 7.0 1,909,238
Intersegment -- -- -- --
Total 1,492,634 1,394,348 98,286 7.0 1,909,238
- ---------------------------------------------------------------------------------------------------------------------------
Operating expenses 1,370,819 1,292,937 77,882 6.0 1,760,654
- ---------------------------------------------------------------------------------------------------------------------------
Operating income 121,815 101,411 20,404 20.1 148,584
Operating income on consolidated net sales (%) 8.2 7.3 7.8
- ---------------------------------------------------------------------------------------------------------------------------
Note:
* As a result of the sale of a business, the operating results from the
discontinued operations have been reclassified in accordance with Statement
of Financial Accounting Standards ("SFAS") No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets".
13
(2)Geographic Segment Information
(Three months ended December 31, 2006 and 2005) (Millions of yen)
- -----------------------------------------------------------------------------------------------------
Three months ended Three months ended
December 31, 2006 December 31, 2005 Change %
- -----------------------------------------------------------------------------------------------------
JAPAN:
Net sales:
External customers 243,239 235,852 7,387 3.1
Intersegment 132,630 104,330 28,300 27.1
Total 375,869 340,182 35,687 10.5
- -----------------------------------------------------------------------------------------------------
Operating expenses 342,864 313,356 29,508 9.4
- -----------------------------------------------------------------------------------------------------
Operating income 33,005 26,826 6,179 23.0
Operating income on sales in Japan(%) 8.8 7.9
- -----------------------------------------------------------------------------------------------------
THE AMERICAS:
Net sales:
External customers 105,618 98,122 7,496 7.6
Intersegment 795 5,405 -4,610 -85.3
Total 106,413 103,527 2,886 2.8
- -----------------------------------------------------------------------------------------------------
Operating expenses 102,834 101,728 1,106 1.1
- -----------------------------------------------------------------------------------------------------
Operating income 3,579 1,799 1,780 98.9
Operating income on sales in the Americas(%) 3.4 1.7
- -----------------------------------------------------------------------------------------------------
EUROPE:
Net sales:
External customers 130,042 116,178 13,864 11.9
Intersegment 1,366 869 497 57.2
Total 131,408 117,047 14,361 12.3
- -----------------------------------------------------------------------------------------------------
Operating expenses 122,581 112,612 9,969 8.9
- -----------------------------------------------------------------------------------------------------
Operating income 8,827 4,435 4,392 99.0
Operating income on sales in Europe(%) 6.7 3.8
- -----------------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 26,813 24,327 2,486 10.2
Intersegment 42,843 25,335 17,508 69.1
Total 69,656 49,662 19,994 40.3
- -----------------------------------------------------------------------------------------------------
Operating expenses 64,700 46,029 18,671 40.6
- -----------------------------------------------------------------------------------------------------
Operating income 4,956 3,633 1,323 36.4
Operating income on sales in Other(%) 7.1 7.3
- -----------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -177,634 -135,939 -41,695 --
Total -177,634 -135,939 -41,695 --
- -----------------------------------------------------------------------------------------------------
Operating expenses -175,919 -135,645 -40,274 --
- -----------------------------------------------------------------------------------------------------
Operating income -1,715 -294 -1,421 --
- -----------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 505,712 474,479 31,233 6.6
Intersegment -- -- --
Total 505,712 474,479 31,233 6.6
- -----------------------------------------------------------------------------------------------------
Operating expenses 457,060 438,080 18,980 4.3
- -----------------------------------------------------------------------------------------------------
Operating income 48,652 36,399 12,253 33.7
Operating income on consolidated net sales(%) 9.6 7.7
- -----------------------------------------------------------------------------------------------------
Note:
* As a result of the sale of a business, the operating results from the
discontinued operations 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
(Nine months ended December 31, 2006 and 2005 and Year ended March 31, 2006) (Millions of yen)
- ------------------------------------------------------------------------------------------------------------------------------
Nine months ended Nine months ended Year ended
December 31, 2006 December 31, 2005 Change % March 31, 2006
- ------------------------------------------------------------------------------------------------------------------------------
JAPAN:
Net sales:
External customers 747,668 728,319 19,349 2.7 992,945
Intersegment 378,662 308,643 70,019 22.7 413,087
Total 1,126,330 1,036,962 89,368 8.6 1,406,032
- ------------------------------------------------------------------------------------------------------------------------------
Operating expenses 1,041,717 964,781 76,936 8.0 1,310,233
- ------------------------------------------------------------------------------------------------------------------------------
Operating income 84,613 72,181 12,432 17.2 95,799
Operating income on sales in Japan(%) 7.5 7.0 6.8
- ------------------------------------------------------------------------------------------------------------------------------
THE AMERICAS:
Net sales:
External customers 309,178 280,441 28,737 10.2 385,746
Intersegment 2,526 7,158 -4,632 -64.7 7,630
Total 311,704 287,599 24,105 8.4 393,376
- ------------------------------------------------------------------------------------------------------------------------------
Operating expenses 299,175 279,335 19,840 7.1 378,108
- ------------------------------------------------------------------------------------------------------------------------------
Operating income 12,529 8,264 4,265 51.6 15,268
Operating income on sales in the Americas(%) 4.0 2.9 3.9
- ------------------------------------------------------------------------------------------------------------------------------
EUROPE:
Net sales:
External customers 356,865 315,747 41,118 13.0 434,304
Intersegment 3,106 3,315 -209 -6.3 4,449
Total 359,971 319,062 40,909 12.8 438,753
- ------------------------------------------------------------------------------------------------------------------------------
Operating expenses 341,558 304,660 36,898 12.1 417,341
- ------------------------------------------------------------------------------------------------------------------------------
Operating income 18,413 14,402 4,011 27.9 21,412
Operating income on sales in Europe(%) 5.1 4.5 4.9
- ------------------------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 78,923 69,841 9,082 13.0 96,243
Intersegment 115,245 73,354 41,891 57.1 104,045
Total 194,168 143,195 50,973 35.6 200,288
- ------------------------------------------------------------------------------------------------------------------------------
Operating expenses 180,387 132,963 47,424 35.7 185,283
- ------------------------------------------------------------------------------------------------------------------------------
Operating income 13,781 10,232 3,549 34.7 15,005
Operating income on sales in Other(%) 7.1 7.1 7.5
- ------------------------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -499,539 -392,470 -107,069 -- -529,211
Total -499,539 -392,470 -107,069 -- -529,211
- ------------------------------------------------------------------------------------------------------------------------------
Operating expenses -492,018 -388,802 -103,216 -- -530,311
- ------------------------------------------------------------------------------------------------------------------------------
Operating income -7,521 -3,668 -3,853 -- 1,100
- ------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 1,492,634 1,394,348 98,286 7.0 1,909,238
Intersegment -- -- -- --
Total 1,492,634 1,394,348 98,286 7.0 1,909,238
- ------------------------------------------------------------------------------------------------------------------------------
Operating expenses 1,370,819 1,292,937 77,882 6.0 1,760,654
- ------------------------------------------------------------------------------------------------------------------------------
Operating income 121,815 101,411 20,404 20.1 148,584
Operating income on consolidated net sales(%) 8.2 7.3 7.8
- ------------------------------------------------------------------------------------------------------------------------------
Note:
* As a result of the sale of a business, the operating results from the
discontinued operations have been reclassified in accordance with Statement
of Financial Accounting Standards ("SFAS") No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets".
15
- -APPENDIX- (THIRD QUARTER ENDED DECEMBER 31, 2006)
1. CONSOLIDATED QUARTERLY PERFORMANCE OUTLINE
Fiscal 2007 (Millions of yen)
- -----------------------------------------------------------------------------------------------------------------
1Q Change(%) 2Q Change(%) 3Q Change(%)
- -----------------------------------------------------------------------------------------------------------------
Net sales 484,576 7.3 502,346 7.2 505,712 6.6
Gross profit 202,565 4.7 205,351 6.8 219,368 9.6
Operating income 40,647 11.7 32,516 13.6 48,652 33.7
Income from continuing operations before income taxes 38,704 4.0 35,564 17.3 48,791 28.3
Net income 29,125 22.8 22,920 19.7 31,252 35.9
- -----------------------------------------------------------------------------------------------------------------
Net income per share (yen) 39.92 -- 31.43 -- 42.83 --
Net income per share-diluted (yen) -- -- -- -- 42.66 --
- -----------------------------------------------------------------------------------------------------------------
Total assets 2,055,138 -- 2,097,763 -- 2,205,546 --
Shareholders' equity 980,225 -- 1,008,412 -- 1,036,129 --
- -----------------------------------------------------------------------------------------------------------------
Shareholders' equity per share (yen) 1,343.70 -- 1,382.14 -- 1,420.31 --
- -----------------------------------------------------------------------------------------------------------------
Fiscal 2006 (Millions of yen)
- ------------------------------------------------------------------------------------------------------------------
1Q Change(%) 2Q Change(%) 3Q Change(%) 4Q Change(%)
- ------------------------------------------------------------------------------------------------------------------
Net sales 451,465 3.8 468,404 7.0 474,479 7.3 514,890 4.6
Gross profit 193,517 3.0 192,209 10.9 200,167 4.8 209,107 6.1
Operating income 36,389 -5.0 28,623 66.3 36,399 -3.7 47,173 24.7
Income from continuing operations
before income taxes 37,198 -7.5 30,311 72.4 38,020 12.6 47,237 19.8
Net income 23,723 -4.7 19,144 75.2 23,000 3.5 31,190 24.3
- ------------------------------------------------------------------------------------------------------------------
Net income per share (yen) 32.32 -- 26.08 -- 31.34 -- 42.59 --
Net income per share-diluted (yen) -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Total assets 1,899,986 -- 1,948,587 -- 1,990,802 -- 2,041,183 --
Shareholders' equity 879,665 -- 905,674 -- 929,508 -- 960,245 --
- ------------------------------------------------------------------------------------------------------------------
Shareholders' equity per share
(yen) 1,198.48 -- 1,233.08 -- 1,265.83 -- 1,316.21 --
- ------------------------------------------------------------------------------------------------------------------
Note:
* Fiscal year refers to Ricoh's fiscal year ended March 31.
* As a result of the sale of a business, the operating results and cash flows
from the discontinued operations 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 has no dilutive securities outstanding in fiscal 2006 and in the first
half of fiscal 2007, and there is no difference between bases and diluted net
income per share. Therefore net income per share-diluted except for third
quarter of fiscal 2007 are omitted.
A1
2. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Three months ended December 31, 2006 and 2005) (Millions of yen)
- ------------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Change excluding
December 31, 2006 December 31, 2005 Change % exchange impact %
- ------------------------------------------------------------------------------------------------------------------------------
[Office Solutions]
Imaging Solutions 394,391 367,207 27,184 7.4 15,753 4.3
Percentage of net sales (%) 78.0 77.4
Domestic 147,470 143,304 4,166 2.9 4,166 2.9
Overseas 246,921 223,903 23,018 10.3 11,587 5.2
Network System Solutions 40,924 40,779 145 0.4 -26 -0.1
Percentage of net sales (%) 8.1 8.6
Domestic 38,681 38,396 285 0.7 285 0.7
Overseas 2,243 2,383 -140 -5.9 -311 -13.1
Office Solutions Total 435,315 407,986 27,329 6.7 15,727 3.9
Percentage of net sales (%) 86.1 86.0
Domestic 186,151 181,700 4,451 2.4 4,451 2.4
Overseas 249,164 226,286 22,878 10.1 11,276 5.0
The Americas 102,116 93,969 8,147 8.7 7,526 8.0
Europe 122,756 109,300 13,456 12.3 3,478 3.2
Other 24,292 23,017 1,275 5.5 272 1.2
- ------------------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 30,570 29,715 855 2.9 527 1.8
Percentage of net sales (%) 6.0 6.3
Domestic 17,487 17,662 -175 -1.0 -175 -1.0
Overseas 13,083 12,053 1,030 8.5 702 5.8
The Americas 3,137 3,921 -784 -20.0 -704 -18.0
Europe 4,650 4,073 577 14.2 236 5.8
Other 5,296 4,059 1,237 30.5 1,170 28.8
- ------------------------------------------------------------------------------------------------------------------------------
[Other]
Other 39,827 36,778 3,049 8.3 2,824 7.7
Percentage of net sales (%) 7.9 7.7
Domestic 33,179 30,232 2,947 9.7 2,947 9.7
Overseas 6,648 6,546 102 1.6 -123 -1.9
The Americas 532 286 246 86.0 241 84.3
Europe 2,392 1,736 656 37.8 466 26.8
Other 3,724 4,524 -800 -17.7 -830 -18.3
- ------------------------------------------------------------------------------------------------------------------------------
Grand Total 505,712 474,479 31,233 6.6 19,078 4.0
Percentage of net sales (%) 100.0 100.0
Domestic 236,817 229,594 7,223 3.1 7,223 3.1
Percentage of net sales (%) 46.8 48.4
Overseas 268,895 244,885 24,010 9.8 11,855 4.8
Percentage of net sales (%) 53.2 51.6
The Americas 105,785 98,176 7,609 7.8 7,063 7.2
Percentage of net sales (%) 20.9 20.7
Europe 129,798 115,109 14,689 12.8 4,180 3.6
Percentage of net sales (%) 25.7 24.3
Other 33,312 31,600 1,712 5.4 612 1.9
Percentage of net sales (%) 6.6 6.6
Reference: Exchange rate
US$ 1 Yen 117.82 Yen 117.24 Yen 0.58
EURO 1 Yen 151.92 Yen 139.41 Yen 12.51
Notes:
* As a result of the sale of a business, the operating results and cash flows
from the discontinued operations 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
Other Optical discs and digital camera
A2
(Nine months ended December 31, 2006 and 2005 and Year ended March 31, 2006) (Millions of yen)
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Nine months Nine months Change Year
ended ended excluding ended
December 31, December 31, exchange March 31,
2006 2005 Change % impact % 2006
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[Office Solutions]
Imaging Solutions 1,138,017 1,060,337 77,680 7.3 38,884 3.7 1,446,635
Percentage of net sales (%) 76.2 76.0 75.8
Domestic 441,862 432,545 9,317 2.2 9,317 2.2 585,363
Overseas 696,155 627,792 68,363 10.9 29,567 4.7 861,272
Network System Solutions 135,388 133,930 1,458 1.1 916 0.7 190,593
Percentage of net sales (%) 9.1 9.7 10.0
Domestic 128,328 127,380 948 0.7 948 0.7 181,149
Overseas 7,060 6,550 510 7.8 -32 -0.5 9,444
Office Solutions Total 1,273,405 1,194,267 79,138 6.6 39,800 3.3 1,637,228
Percentage of net sales (%) 85.3 85.7 85.8
Domestic 570,190 559,925 10,265 1.8 10,265 1.8 766,512
Overseas 703,215 634,342 68,873 10.9 29,535 4.7 870,716
The Americas 293,046 268,342 24,704 9.2 14,187 5.3 368,184
Europe 336,929 300,364 36,565 12.2 11,535 3.8 412,550
Other 73,240 65,636 7,604 11.6 3,813 5.8 89,982
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[Industrial Products]
Industrial Products 98,826 88,174 10,652 12.1 8,937 10.1 120,636
Percentage of net sales (%) 6.6 6.3 6.3
Domestic 55,984 53,740 2,244 4.2 2,244 4.2 72,379
Overseas 42,842 34,434 8,408 24.4 6,693 19.4 48,257
The Americas 15,228 12,142 3,086 25.4 2,540 20.9 17,391
Europe 14,031 11,546 2,485 21.5 1,559 13.5 16,049
Other 13,583 10,746 2,837 26.4 2,594 24.1 14,817
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[Other]
Other 120,403 111,907 8,496 7.6 7,762 6.9 151,374
Percentage of net sales (%) 8.1 8.0 7.9
Domestic 103,134 93,695 9,439 10.1 9,439 10.1 127,333
Overseas 17,269 18,212 -943 -5.2 -1,677 -9.2 24,041
The Americas 1,095 1,607 -512 -31.9 -545 -33.9 1,837
Europe 5,342 4,598 744 16.2 350 7.6 6,201
Other 10,832 12,007 -1,175 -9.8 -1,482 -12.3 16,003
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Grand Total 1,492,634 1,394,348 98,286 7.0 56,499 4.1 1,909,238
Percentage of net sales (%) 100.0 100.0 100.0
Domestic 729,308 707,360 21,948 3.1 21,948 3.1 966,224
Percentage of net sales (%) 48.9 50.7 50.6
Overseas 763,326 686,988 76,338 11.1 34,551 5.0 943,014
Percentage of net sales (%) 51.1 49.3 49.4
The Americas 309,369 282,091 27,278 9.7 16,182 5.7 387,412
Percentage of net sales (%) 20.7 20.2 20.3
Europe 356,302 316,508 39,794 12.6 13,444 4.2 434,800
Percentage of net sales (%) 23.9 22.7 22.8
Other 97,655 88,389 9,266 10.5 4,925 5.6 120,802
Percentage of net sales (%) 6.5 6.4 6.3
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Reference: Exchange rate
US$ 1 Yen 116.21 Yen 112.04 Yen 4.17 Yen 113.26
EURO 1 Yen 147.97 Yen 136.92 Yen 11.05 Yen 137.86
Notes:
* As a result of the sale of a business, the operating results and cash flows
from the discontinued operations 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
Other Optical discs and digital camera
A3
3. FORECAST OF CONSOLIDATED PERFORMANCE
(Billions of yen)
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Half year ended Three months ended Three months ending Year ending
Sept. 30, 2006 Change Dec. 31, 2006 Change Mar. 31, 2007 Change Mar. 31, 2007 Change
Results % Results % Forecast % Forecast %
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Net sales 986.9 7.3 505.7 6.6 574.3 11.6 2,067.0 8.3
Gross profit 407.9 5.8 219.3 9.6 231.0 10.5 858.3 8.0
Operating income 73.1 12.5 48.6 33.7 50.1 6.4 172.0 15.8
Income from continuing
operations before
income taxes 74.2 10.0 48.7 28.3 46.9 -0.6 170.0 11.3
Net income 52.0 21.4 31.2 35.9 24.2 -22.4 107.5 10.8
- ---------------------------------------------------------------------------------------------------------------------------
Net income per share (yen) 71.35 -- 42.83 -- 33.18 -- 147.36 --
Net income per share-
diluted (yen) -- -- 42.66 -- 32.19 -- 146.20 --
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Capital expenditures 39.1 -- 17.6 -- 25.1 -- 82.0 --
Depreciation for tangible
fixed assets 33.7 -- 18.2 -- 19.9 -- 72.0 --
R&D expenditures 56.5 -- 27.9 -- 35.5 -- 120.0 --
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Exchange rate (Yen/US$) 115.40 -- 117.82 -- 115.00 -- 115.91 --
Exchange rate (Yen/EURO) 145.98 -- 151.92 -- 145.00 -- 147.22 --
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4. FORECAST OF CONSOLIDATED SALES BY PRODUCT CATEGORY
(Billions of yen)
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Three months ending March 31, 2007 Year ending March 31, 2007
- -----------------------------------------------------------------------------------------------
Change Change Change Change
Forecast % Forecast(*) % Forecast % Forecast(*) %
- -----------------------------------------------------------------------------------------------
[Office Solutions]
Imaging Solutions 447.4 15.8 445.0 15.2 1,585.4 9.6 1,544.2 6.8
Domestic 166.1 8.8 166.1 8.8 608.0 3.9 608.0 3.9
Overseas 281.2 20.5 278.8 19.4 977.4 13.5 936.2 8.7
Network System Solutions 57.7 1.8 57.6 1.7 193.0 1.3 192.4 1.0
Domestic 54.7 1.7 54.7 1.7 183.0 1.0 183.0 1.0
Overseas 3.0 3.7 2.9 0.2 10.0 6.5 9.4 -0.3
Office Solutions Total 505.1 14.0 502.6 13.5 1,778.5 8.6 1,736.7 6.1
Domestic 220.8 6.9 220.8 6.9 791.0 3.2 791.0 3.2
Overseas 284.2 20.3 281.7 19.2 987.4 13.4 945.6 8.6
The Americas 117.2 17.4 119.3 19.5 410.2 11.4 401.8 9.1
Europe 139.9 24.7 135.8 21.0 476.8 15.6 447.6 8.5
Other 27.1 11.6 26.6 9.6 100.4 11.6 96.1 6.8
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[Industrial Products]
Industrial Products 30.6 -5.7 30.6 -5.7 129.4 7.3 127.7 5.9
Domestic 18.2 -2.4 18.2 -2.4 74.1 2.5 74.1 2.5
Overseas 12.4 -10.3 12.4 -10.3 55.2 14.5 53.5 10.9
The Americas 3.8 -27.6 3.9 -25.7 19.0 9.4 18.5 6.8
Europe 4.4 -2.3 4.3 -4.5 18.4 14.8 17.4 8.4
Other 4.2 3.2 4.2 3.2 17.7 20.0 17.5 18.4
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[Other]
Other 38.6 -2.2 38.5 -2.5 159.0 5.0 158.1 4.5
Domestic 33.6 -0.1 33.6 -0.1 136.7 7.4 136.7 7.4
Overseas 5.0 -14.2 4.9 -15.9 22.2 -7.4 21.4 -10.8
The Americas 0.3 30.2 0.3 30.2 1.3 -24.1 1.3 -25.9
Europe 1.3 -18.9 1.3 -18.9 6.6 7.1 6.2 0.8
Other 3.4 -14.9 3.3 -17.4 14.2 -11.1 13.8 -13.6
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Grand Total 574.3 11.6 571.7 11.0 2,067.0 8.3 2,022.6 5.9
Domestic 272.6 5.3 272.6 5.3 1,002.0 3.7 1,002.0 3.7
Overseas 301.6 17.8 299.0 16.8 1,065.0 12.9 1,020.6 8.2
The Americas 121.3 15.2 123.5 17.3 430.6 11.2 421.7 8.9
Europe 145.6 23.1 141.4 19.5 501.9 15.4 471.3 8.4
Other 34.7 7.3 34.1 5.4 132.4 9.6 127.4 5.5
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* Excluding foreign exchange impact
A4