QUARTERLY REPORT
3rd Quarter Ended December 31, 2001
(Results for the Period from April 1 to December 31, 2001)
INDEX
PAGE
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Ricoh Company, Ltd. And Consolidated Subsidiaries
- Financial Highlights 1
- Ricoh Company, Ltd. And Consolidated Subsidiaries - Quarterly Report
1. Performance 2
2. Consolidated Statements of Income 10
3. Consolidated Sales by Product Line 11
4. Consolidated Sales by Category 12
5. Consolidated Balance Sheets 14
6. Consolidated Statements of Cash Flow 15
7. Segment Information 16
8. Significant Accounting Policies 19
RICOH COMPANY, LTD.
* The Company bases the estimates above on information currently available to
management, which involves risks and uncertainties that would cause actual
results to differ materially from those projected.
RICOH COMPANY, LTD. AND CONSOLIDATED SUBSIDIARIES
FINANCIAL HIGHLIGHTS (3rd Quarter Ended December 31, 2001)
1. THREE MONTHS ENDED DECEMBER 31, 2001 AND 2000
(1) Operating Results
(MILLIONS OF YEN)
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THREE MONTHS ENDED THREE MONTHS ENDED
DECEMBER 31, 2001 DECEMBER 31, 2000
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Net sales 401,331 373,982
(% change from previous period) 7.3 -
Operating income 29,729 25,843
(% change from previous period) 15.0 -
Income before income taxes 25,872 22,923
(% change from previous period) 12.9 -
Net income 14,891 12,475
(% change from previous period) 19.4 -
Net income per share-basic (yen) 21.41 18.01
Net income per share-diluted (yen) 20.00 16.72
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Note:
i. Equity in earnings of affiliates: 524 million yen; 362 million yen
(previous corresponding period)
ii. Percentage changes in net sales, operating income, income before income
taxes, and net income based on the previous corresponding period.
(2) Financial Position
(MILLIONS OF YEN)
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DECEMBER 31, 2001 MARCH 31, 2001
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Total assets 1,760,391 1,704,791
Shareholders' equity 601,280 556,728
Equity ratio (%) 34.2 32.7
Equity per share (yen) 860.86 803.64
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Notes: Number of shares issued: 698,464,124 shares, as of December 31, 2001;
692,755,584 shares, as of March 31, 2001
(3) Cash Flows (Nine months ended December 31, 2001 and year ended March 31,
2001)
(MILLIONS OF YEN)
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NINE MONTHS ENDED YEAR ENDED
DECEMBER 31, 2001 MARCH 31, 2001
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Cash flows from operating activities 33,757 102,728
Cash flows from investing activities (71,144) (62,728)
Cash flows from financing activities 34,817 (88,382)
Cash and cash equivalents at end of term 63,856 64,457
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(4) Items relating to the scale of consolidation and the application of the
equity method: Number of consolidated subsidiaries: 329; nonconsolidated
subsidiaries: 45; affiliated companies: 28
(5) Changes in the scale of consolidation and the application of equity method:
Consolidation: 14 additions; 5 removals
Companies accounted for by the equity method: 5 additions; 1 removal
Notes:
i. Consolidated financial statements of the Company and its consolidated
subsidiaries have been prepared in conformity with accounting principles
generally accepted in the United States of America.
ii. Net income per share is calculated based on Statement of Financial
Accounting Standards (SFAS) No. 128.
iii. Ricoh's third-quarter financial statements are unaudited.
2. FORECAST OF OPERATING RESULTS FROM APRIL 1, 2001 TO MARCH 31, 2002
(MILLIONS OF YEN)
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YEAR ENDED
MARCH 31, 2002
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Net sales 1,670,000
Operating income 126,000
Income before income taxes 113,000
Net income 61,500
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Notes: Net income per share (Consolidated) 88.05 yen
In accordance with Japanese regulations, Ricoh has issued forecast for its
financial results for the fiscal year ending March 2002. 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.
-1-
OUTLINE OF CONSOLIDATED PERFORMANCE
1. PERFORMANCE
(1) Overview
(Three months ended December 31, 2001, 2000 and half year ended September 30,
2001)
(BILLIONS OF YEN)
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THREE MONTHS ENDED THREE MONTHS ENDED HALF YEAR ENDED
DECEMBER 31, 2001 DECEMBER 31, 2000 CHANGE SEPT. 30, 2001
- --------------------------------------------------------------------------------------------------------------------------
Net sales 401.3 373.9 7.3% 820.0
Domestic sales 211.7 225.6 (6.1)% 452.7
Overseas sales 189.5 148.3 27.8% 367.3
Gross profit 173.6 149.6 16.0% 341.8
Operating income 29.7 25.8 15.0% 59.9
Income before income taxes 25.8 22.9 12.9% 52.5
Net income 14.8 12.4 19.4% 28.4
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Net income per share - basic (yen) 21.41 18.01 +3.40 40.97
Net income per share - diluted (yen) 20.00 16.72 +3.28 38.24
Return on equity (%) 2.5 2.2 0.3% point 5.0
Income before income taxes on total assets (%) 1.5 1.5 0.0% point 3.1
Income before income taxes on net sales (%) 6.4 6.1 0.3% point 6.4
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Exchange rate (Yen/US$) 123.70 109.88 +13.82 122.16
Exchange rate (Yen/EURO) 110.74 95.55 +15.19 107.79
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Expenditure for plant and equipment 16.8 13.3 +3.5 39.8
Depreciation for tangible fixed assets 20.2 16.2 +4.0 33.1
R&D Expenditure 18.6 17.6 +0.9 39.9
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-2-
(Nine months ended December 31, 2001, 2000 and year ended March 31,2001)
(BILLIONS OF YEN)
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NINE MONTHS ENDED NINE MONTHS ENDED YEAR ENDED
DECEMBER 31, 2001 DECEMBER 31, 2000 CHANGE MARCH 31, 2001
- -------------------------------------------------------------------------------------------------------------------------
Net sales 1,221.4 1,109.2 10.1% 1,538.2
Domestic sales 664.5 681.7 (2.5)% 930.4
Overseas sales 556.9 427.5 30.3% 607.8
Gross profit 515.5 443.6 16.2% 613.3
Operating income 89.6 76.9 16.4% 105.1
Income before income taxes 78.3 69.0 13.5% 97.7
Net income 43.2 38.2 13.1% 53.2
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Net income per share - basic (yen) 62.38 55.28 +7.10 76.85
Net income per share - diluted (yen) 58.24 51.16 +7.08 71.02
Return on equity (%) 7.5 6.9 0.6% point 9.7
Income before income taxes on total assets (%) 4.5 4.4 0.1% point 6.0
Income before income taxes on net sales (%) 6.4 6.2 0.2% point 6.4
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Total assets 1,760.3 1,586.7 +173.6 1,704.7
Shareholders' equity 601.2 561.4 +39.8 556.7
Debt 586.0 539.9 +46.1 538.9
Equity ratio (%) 34.2 35.4 (1.2)% points 32.7
Equity per share (yen) 860.86 810.51 +50.35 803.64
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Cash flows from operating activities: 33.7 12.0 +21.7 102.7
Cash flows from investing activities: (71.1) 2.4 (73.5) (62.7)
Cash flows from financing activities: 34.8 10.3 +24.4 (88.3)
Cash and cash equivalents at end of year 63.8 138.2 (74.4) 64.4
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Exchange rate (Yen/US$) 122.67 108.12 +14.55 110.60
Exchange rate (Yen/EURO) 108.77 97.60 +11.17 100.41
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Expenditure for plant and equipment 56.6 50.6 +6.0 73.3
Depreciation for tangible fixed assets 53.3 45.1 +8.2 62.1
R&D Expenditure 58.6 55.8 +2.7 78.2
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-3-
*Overview
- - In the third quarter of fiscal 2002, ended December 31, 2001, Ricoh
increased consolidated net sales 7.3% from the previous corresponding
period, to 401.3 billion yen. The rise would have been 1.9% without the
foreign exchange impact.
- - Domestic sales declined 6.1%, reflecting a domestic economic slowdown and
restrained capital expenditure on information technology among
corporations. On the positive side, sales of printing systems climbed
17.1%. The prime seller in this category was multifunctional printers
(MFPs), in which the Company focused on reinforcing its range and
marketing. Overseas, sales surged 27.8% despite the U.S. economic downturn,
reflecting the ongoing popularity of digital imaging systems, MFPs, and
other office equipment, as well as the Japanese yen's depreciation.
Overseas sales would have gained 14.2% without exchange rate fluctuations.
- - Operating income increased 15.0% in line with higher sales of MFPs, which
are high-value-added offerings, the lower Japanese yen, and strengthened
cost-cutting initiatives.
- - Other expenses decreased despite higher interest expense from the
consolidation of Lanier Worldwide, Inc., owing to reductions in net
interest expenses and improvement of foreign exchange impact. Consequently,
income before income taxes advanced 12.9%.
- - These factors translated into a 19.4% improvement in net income.
-4-
*Consolidated Sales by Product Category (excluding foreign exchange impact)
Imaging Solutions (sales up 1.8%, to 229.2 billion yen)
Digital Imaging Systems (sales up 6.7%, to 161.9 billion yen)
Digital plain-paper copiers (PPCs) sold well on the strength of new
offerings. In Japan, sales were down slightly owing to an aggressive shift
toward MFPs , but sales continued to do well overseas.
Other Imaging Systems (sales down 8.4%, to 67.2 billion yen)
This category mainly comprises analog PPCs. Category sales dropped in
line with a shift toward digital models and MFPs, which offer superior
performance and expandability.
Network Input/Output Systems (sales up 12.8%, to 83.2 billion yen)
Printing Systems (sales up 17.0%, to 70.5 billion yen)
Ricoh continued to broaden its lineup and strengthen marketing to
satisfy customer demand for higher speed and networking, leading to
significant gains in sales of MFPs and other printers.
Other Input/Output Systems (sales off 5.7%, to 12.6 billion yen)
Category sales temporarily decreased owing to a switch to new
standards in optical disc-related products.
Network System Solutions (sales down 7.7%, to 45.0 billion yen)
Customer demand has gradually moved away from standalone products toward
multifunctional and networked hardware, software, and services. The Company
responded swiftly to this trend by bolstering such solutions business areas as
useware, networkable equipment, to meet customer requirements for networks.
Nonetheless, sales of network equipment in this category, including personal
computers and servers, declined owing to constrained corporate spending on
information technology in Japan.
Other Businesses (sales down 4.0%, to 43.8 billion yen)
Sales were off in this category mainly because of falling demand for
semiconductors, particularly for large-scale integrated circuits used in mobile
communications equipment. Sales of metering equipment remained sluggish,
reflecting stagnant demand period.
-5-
*Consolidated Sales by Geographic Area (excluding foreign exchange impact)
Japan (sales up 6.1%, to 211.7 billion yen)
The Japanese economy continued to slow down during the term, prompting
companies to constrain spending on information technology. Still, sales of
printing systems increased 17.1% on the strength of an expanded lineup and more
aggressive marketing, led by MFPs. At the same time, sales declined for such
offerings as analog PPCs and facsimile machines, causing overall office
equipment sales to decreased 6.3%. Sales of other businesses, including
semiconductors and metering equipment, declined 5.2%.
It is crucial for Ricoh to respond quickly to the changing domestic
operating environment and diversifying customer demand. The Ricoh Group
therefore plans to implement its domestic sales structure, build a more
attractive product lineup, and improve its ability to provide customer-oriented
solutions, while lowering costs.
The Americas (sales up 18.7%, to 82.5 billion yen)
Ricoh strove to overcome the impact of the adverse U.S. economy by
aggressively expanding its regional sales networks, particularly in North
America and stepping up sales to large corporations. Demand for digital PPCs and
MFPs was particularly strong, which led to an overall sales improvement.
Europe (sales up 14.8%, to 77.8 billion yen)
With some exceptions, regional performance was generally strong. Demand
remained solid for digital PPCs and MFPs, helping Ricoh maintain its top market
share. Ricoh's multibrand strategy continued to bear fruit, leading to
significantly higher sales for all brands.
Other (sales up 2.3%, to 29.1 billion yen)
Sales in other areas rose in keeping with the shift from analog to digital
PPCs. Ricoh plans to take advantage of China's admission to the World Trade
Organization by strengthening its local sales network.
-6-
*Segment Information
Business Segment
Office Equipment
Sales of MFPs grew steadily, reflecting their strong appeal,
contributing significantly to earnings. Ricoh kept investing in preparation
for the trend toward systems and solutions while suppressing fixed expenses
to lower overall costs. Both sales and operating income rose, partly
reflecting the lower yen.
Other Businesses
Operating income in this segment declined owing to a fall in sales of
semiconductors and metering equipment. The Company responded to this
situation by minimizing capital investment and stepping up cost-cutting.
-7-
Geographic Segment
Japan
In contrast to decreases in sales of semiconductors and metering equipment,
sales of office equipment rose on the back of exports and the yen's
depreciation, leading to gains in sales and operating income.
The Americas
The sluggish U.S. economy hampered operations, but sales rose owing to an
expanded marketing network. With initial investments in Lanier Worldwide, Inc.
having run their course, the Company increased revenues and earnings by
targeting large corporations while making up for lost ground in digital PPCs,
thus improving segment operating income.
Europe
In recent years, Ricoh has successfully enhanced its presence in this
market, enabling it to capture top shares in such mainline businesses as digital
PPCs and MFPs. Sales and market share continued to grow during the period under
review, leading to significantly higher regional sales and operating income.
Other
Sales and operating income expanded steadily owing to measures to
strengthen marketing channels.
-8-
(2) Expectations
For the full term, Ricoh expects sales to decline in Japan as a result of
the domestic recession, although overseas performance should offset that factor
and lead to net sales gains. The Company projects higher net income as a result
of intensive cost-cutting initiatives though its groupwide renovation activities
as well as the lower Japanese yen. Ricoh has modified the assumptions and
forecasts announced when releasing first-half results at the end of October 31,
2001, as follows.
Exchange Rate Assumptions for the three months ended March 31, 2002
US$1 = 128.00 yen (118.06 yen in the previous corresponding period)
Euro 1 = 113.00 yen (108.83 yen in the previous corresponding period)
Exchange Rate Assumptions for the Full Fiscal Year ended March 31, 2002
US$1 = 124.00 yen (110.60 yen in previous fiscal year)
Euro 1 = 109.83 yen (100.41 yen in previous fiscal year)
(BILLIONS OF YEN)
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THREE MONTHS YEAR ENDED
NINE MONTHS ENDED ENDED MAR. 31, MARCH 31, 2002 YEAR ENDED
DEC. 31, 2001 2002 (FORECAST) (FORECAST) MARCH 31, 2001 CHANGE
- -----------------------------------------------------------------------------------------------------------------------
Net sales 1,221.4 448.5 1,670.0 1,538.2 8.6%(*1)
Domestic sales 664.5 240.4 905.0 930.4 (2.7)%
Overseas sales 556.9 208.0 765.0 607.8 25.9%
Gross profit 515.5 174.4 690.0 613.3 12.5%
Operating income 89.6 36.3 126.0 105.1 19.9%
Income before income taxes 78.3 34.6 113.0 97.7 15.6%
Net income 43.2 18.2 61.5 53.2 15.5%(*2)
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Notes:
(*1) Net sales would be eighth consecutive year of growth.
(*2) Net income would be tenth consecutive year of growth.
* The Company bases the estimates above on information currently available to
management, which involves risks and uncertainties that would cause actual
results to differ materially from those projected.
-9-
2. CONSOLIDATED STATEMENTS OF INCOME
(Three months ended December 31, 2001 and 2000)
(MILLIONS OF YEN)
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THREE MONTHS ENDED THREE MONTHS ENDED
DECEMBER 31, 2001 DECEMBER 31, 2000 CHANGE (%)
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Net sales 401,331 373,982 +27,349 (7.3)
Cost of sales 227,700 224,315 +3,385 (1.5)
Percentage of net sales (%) 56.7 60.0
Gross profit 173,631 149,667 +23,964 (16.0)
Percentage of net sales (%) 43.3 40.0
Selling, general and administrative expenses 143,902 123,824 +20,078 (16.2)
Percentage of net sales (%) 35.9 33.1
Operating income 29,729 25,843 +3,886 (15.0)
Percentage of net sales (%) 7.4 6.9
Other (income) expenses
Interest and dividend income 1,159 1,084 +75 (6.9)
Percentage of net sales (%) 0.3 0.3
Interest expense 2,001 1,862 +139 (7.5)
Percentage of net sales (%) 0.5 0.5
Other, net 3,015 2,142 +873 (40.8)
Percentage of net sales (%) 0.8 0.6
Income before income taxes, minority interests and
equity in earnings of affiliates 25,872 22,923 +2,949 (12.9)
Percentage of net sales (%) 6.4 6.1
Provision for income taxes 10,969 10,745 +224 (2.1)
Percentage of net sales (%) 2.7 2.9
Minority interests in earnings of subsidiaries 536 65 +471 (724.6)
Percentage of net sales (%) 0.1 0.0
Equity in earnings of affiliates 524 362 +162 (44.8)
Percentage of net sales (%) 0.1 0.1
Net income 14,891 12,475 +2,416 (19.4)
Percentage of net sales (%) 3.7 3.3
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Reference: Exchange rate (average rate for the corresponding periods)
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THREE MONTHS ENDED THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, 2001 DECEMBER 31, 2000 MARCH 31, 2001
- ----------------------------------------------------------------------------
US$1 123.70 yen 109.88 yen 110.60 yen
EURO 1 110.74 yen 95.55 yen 100.41 yen
- ----------------------------------------------------------------------------
(Nine months ended December 31, 2001, 2000 and year ended March 31, 2001)
(MILLIONS OF YEN)
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NINE MONTHS ENDED NINE MONTHS ENDED YEAR ENDED
DECEMBER 31, 2001 DECEMBER 31, 2000 CHANGE (%) MARCH 31, 2001
- --------------------------------------------------------------------------------------------------------------------------
Net sales 1,221,418 1,109,285 +112,133 (10.1) 1,538,262
Cost of sales 705,891 665,589 +40,302 (6.1) 924,893
Percentage of net sales (%) 57.8 60.0 60.1
Gross profit 515,527 443,696 +71,831 (16.2) 613,369
Percentage of net sales (%) 42.2 40.0 39.9
Selling, general and administrative expenses 425,894 366,712 +59,182 (16.1) 508,264
Percentage of net sales (%) 34.9 33.1 33.1
Operating income 89,633 76,984 +12,649 (16.4) 105,105
Percentage of net sales (%) 7.3 6.9 6.8
Other (income) expenses
Interest and dividend income 4,055 5,919 (1,864) (-31.5) 8,045
Percentage of net sales (%) 0.3 0.5 0.5
Interest expense 6,563 4,692 +1,871 (39.9) 7,787
Percentage of net sales (%) 0.5 0.4 0.5
Other, net 8,729 9,117 (388) (-4.3) 7,598
Percentage of net sales (%) 0.7 0.8 0.4
Income before income taxes, minority interests and
equity in earnings of affiliates 78,396 69,094 +9,302 (13.5) 97,765
Percentage of net sales (%) 6.4 6.2 6.4
Provision for income taxes 34,488 30,579 +3,909 (12.8) 43,512
Percentage of net sales (%) 2.8 2.7 2.8
Minority interests in earnings of subsidiaries 2,149 1,844 +305 (16.5) 3,123
Percentage of net sales (%) 0.2 0.1 0.2
Equity in earnings of affiliates 1,540 1,612 (72) (-4.5) 2,098
Percentage of net sales (%) 0.1 0.1 0.1
Net income 43,299 38,283 +5,016 (13.1) 53,228
Percentage of net sales (%) 3.5 3.5 3.5
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Reference: Exchange rate (average rate for the corresponding periods)
- ---------------------------------------------------------------------------
NINE MONTHS ENDED NINE MONTHS ENDED YEAR ENDED
DECEMBER 31, 2001 DECEMBER 31, 2000 MARCH 31, 2001
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US$1 122.67 yen 108.12 yen 110.60 yen
EURO 1 108.77 yen 97.60 yen 100.41 yen
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-10-
3. CONSOLIDATED SALES BY PRODUCT LINE
(Three months ended December 31, 2001 and 2000)
(MILLIONS OF YEN)
- -----------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED THREE MONTHS ENDED EXCLUDING FOREIGN
DECEMBER 31, 2001 DECEMBER 31, 2000 CHANGE (%) EXCHANGE IMPACT (%)
- -----------------------------------------------------------------------------------------------------------------------
Copiers and Related Supplies:
Domestic 110,342 116,415 (6,073) (-5.2) (6,073) (-5.2)
Overseas 142,950 108,089 +34,861 (32.3) +18,883 (17.5)
Total 253,292 224,504 +28,788 (12.8) +12,810 (5.7)
Percentage of net sales (%) 63.1 60.0
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Communications and Information Systems:
Domestic 67,285 73,207 (5,922) (-8.1) (5,922) (-8.1)
Overseas 36,943 31,393 +5,550 (17.7) +2,130 (6.8)
Total 104,228 104,600 (372) (-0.4) (3,792) (-3.6)
Percentage of net sales (%) 26.0 28.0
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Other Businesses:
Domestic 34,159 36,040 (1,881) (-5.2) (1,881) (-5.2)
Overseas 9,652 8,838 +814 (9.2) +106 (1.2)
Total 43,811 44,878 (1,067) (-2.4) (1,775) (-4.0)
Percentage of net sales (%) 10.9 12.0
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Total:
Domestic 211,786 225,662 (13,876) (-6.1) (13,876) (-6.1)
Percentage of net sales (%) 52.8 60.3
Overseas 189,545 148,320 +41,225 (27.8) +21,119 (14.2)
Percentage of net sales (%) 47.2 39.7
The Americas 82,575 61,913 +20,662 (33.4) +11,592 (18.7)
Percentage of net sales (%) 20.6 16.6
Europe 77,849 60,022 +17,827 (29.7) +8,909 (14.8)
Percentage of net sales (%) 19.4 16.0
Other 29,121 26,385 +2,736 (10.4) +618 (2.3)
Percentage of net sales (%) 7.2 7.1
Total 401,331 373,982 +27,349 (7.3) +7,243 (1.9)
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(*1) Reference: Exchange rate (average rate for the corresponding periods)
- -------------------------------------------------------------------------------------------
THREE MONTHS ENDED THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, 2001 DECEMBER 31, 2000 MARCH 31, 2001
- -------------------------------------------------------------------------------------------
US$1 123.70 yen 109.88 yen 110.60 yen
EURO 1 110.74 yen 95.55 yen 100.41 yen
- -------------------------------------------------------------------------------------------
Nine months ended December 31, 2001, 2000 and year ended March 31,2001
(MILLIONS OF YEN)
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NINE MONTHS NINE MONTHS
ENDED ENDED EXCLUDING FOREIGN YEAR ENDED
DEC. 31, 2001 DEC. 31, 2000 CHANGE (%) EXCHANGE IMPACT (%) MAR. 31, 2001
- ------------------------------------------------------------------------------------------------------------------------------------
Copiers and Related Supplies:
Domestic 340,726 343,066 (2,340) (-0.7) (2,340) (-0.7) 467,956
Overseas 423,260 314,552 +108,708 (34.6) +65,869 (20.9) 447,377
Total 763,986 657,618 +106,368 (16.2) +63,529 (9.7) 915,333
Percentage of net sales (%) 62.5 59.3 59.5
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Communications and Information Systems:
Domestic 216,301 217,350 (1,049) (-0.5) (1,049) (-0.5) 300,682
Overseas 106,806 85,546 +21,260 (24.9) +12,532 (14.6) 122,359
Total 323,107 302,896 +20,211 (6.7) +11,483 (3.8) 423,041
Percentage of net sales (%) 26.5 27.3 27.5
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Other Businesses:
Domestic 107,484 121,369 (13,885) (-11.4) (13,885) (-11.4) 161,795
Overseas 26,841 27,402 (561) (-2.0) (2,124) (-7.8) 38,093
Total 134,325 148,771 (14,446) (-9.7) (16,009) (-10.8) 199,888
Percentage of net sales (%) 11.0 13.4 13.0
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Total:
Domestic 664,511 681,785 (17,274) (-2.5) (17,274) (-2.5) 930,433
Percentage of net sales (%) 54.4 61.5 60.5
Overseas 556,907 427,500 +129,407 (30.3) +76,277 (17.8) 607,829
Percentage of net sales (%) 45.6 38.5 39.5
The Americas 245,241 174,409 +70,832 (40.6) +41,945 (24.0) 252,698
Percentage of net sales (%) 20.1 15.7 16.4
Europe 225,984 177,205 +48,779 (27.5) +29,697 (16.8) 247,449
Percentage of net sales (%) 18.5 16.0 16.1
Other 85,682 75,886 +9,796 (12.9) +4,635 (6.1) 107,682
Percentage of net sales (%) 7.0 6.8 7.0
Total 1,221,418 1,109,285 +112,133 (10.1) +59,003 (5.3) 1,538,262
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(*2) Reference: Exchange rate (average rate for the corresponding periods)
- ----------------------------------------------------------------------------------
NINE MONTHS ENDED NINE MONTHS ENDED YEAR ENDED
DECEMBER 31, 2001 DECEMBER 31, 2000 MARCH 31, 2001
- ----------------------------------------------------------------------------------
US$1 122.67 yen 108.12 yen 110.60 yen
EURO 1 108.77 yen 97.60 yen 100.41 yen
- ----------------------------------------------------------------------------------
-11-
4. CONSOLIDATED SALES BY CATEGORY
(Three months ended December 31, 2001 and 2000)
(MILLIONS OF YEN)
- ----------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED THREE MONTHS ENDED CHANGE (%) EXCLUDING FOREIGN
DECEMBER 31, 2001 DECEMBER 31, 2000 EXCHANGE IMPACT(%)
- ----------------------------------------------------------------------------------------------------------------------------
Imaging Solutions:
Digital Imaging Systems 161,938 142,025 +19,913 (14.0) +9,547 (6.7)
Percentage of net sales (%) 40.4 38.0
Domestic 69,631 71,831 (2,200) (-3.1) (2,200) (-3.1)
Overseas 92,307 70,194 +22,113 (31.5) +11,747 (16.7)
Other Imaging Systems 67,295 68,299 (1,004) (-1.5) (5,733) (-8.4)
Percentage of net sales (%) 16.8 18.3
Domestic 24,442 33,927 (9,485) (-28.0) (9,485) (-28.0)
Overseas 42,853 34,372 +8,481 (24.7) +3,752 (10.9)
Total Imaging Solutions 229,233 210,324 +18,909 (9.0) +3,814 (1.8)
Percentage of net sales (%) 57.2 56.3
Domestic 94,073 105,758 (11,685) (-11.0) (11,685) (-11.0)
Overseas 135,160 104,566 +30,594 (29.3) +15,499 (14.8)
- ----------------------------------------------------------------------------------------------------------------------------
Networking input/output systems:
Printing Systems 70,597 56,954 +13,643 (24.0) +9,686 (17.0)
Percentage of net sales (%) 17.6 15.2
Domestic 35,286 30,138 +5,148 (17.1) +5,148 (17.1)
Overseas 35,311 26,816 +8,495 (31.7) +4,538 (16.9)
Other Input/Output Systems 12,636 13,089 (453) (-3.5) (749) (-5.7)
Percentage of net sales (%) 3.1 3.5
Domestic 3,937 5,710 (1,773) (-31.1) (1,773) (-31.1)
Overseas 8,699 7,379 +1,320 (17.9) +1,024 (13.9)
Total Networking input/output systems 83,233 70,043 +13,190 (18.8) +8,937 (12.8)
Percentage of net sales (%) 20.7 18.7
Domestic 39,223 35,848 +3,375 (9.4) +3,375 (9.4)
Overseas 44,010 34,195 +9,815 (28.7) +5,562 (16.3)
- ----------------------------------------------------------------------------------------------------------------------------
Network system solutions 45,054 48,737 (3,683) (-7.6) (3,733) (-7.7)
Percentage of net sales (%) 11.2 13.0
Domestic 44,331 48,016 (3,685) (-7.7) (3,685) (-7.7)
Overseas 723 721 +2 (0.3) (48) (-6.7)
- ----------------------------------------------------------------------------------------------------------------------------
<Office Equipment Total> 357,520 329,104 +28,416 (8.6) +9,018 (2.7)
Percentage of net sales (%) 89.1 88.0
Domestic 177,627 189,622 (11,995) (-6.3) (11,995) (-6.3)
Overseas 179,893 139,482 +40,411 (29.0) +21,013 (15.1)
- ----------------------------------------------------------------------------------------------------------------------------
<Other Businesses> 43,811 44,878 (1,067) (-2.4) (1,775) (-4.0)
Percentage of net sales (%) 10.9 12.0
Domestic 34,159 36,040 (1,881) (-5.2) (1,881) (-5.2)
Overseas 9,652 8,838 +814 (9.2) +106 (1.2)
- ----------------------------------------------------------------------------------------------------------------------------
Grand Total 401,331 373,982 +27,349 (7.3) +7,243 (1.9)
Percentage of net sales (%) 100.0 100.0
Domestic 211,786 225,662 (13,876) (-6.1) (13,876) (-6.1)
Percentage of net sales (%) 52.8 60.3
Overseas 189,545 148,320 +41,225 (27.8) +21,119 (14.2)
Percentage of net sales (%) 47.2 39.7
The Americas 82,575 61,913 +20,662 (33.4) +11,592 (18.7)
Percentage of net sales (%) 20.6 16.6
Europe 77,849 60,022 +17,827 (29.7) +8,909 (14.8)
Percentage of net sales (%) 19.4 16.0
Other 29,121 26,385 +2,736 (10.4) +618 (2.3)
Percentage of net sales (%) 7.2 7.1
- ----------------------------------------------------------------------------------------------------------------------------
Each category includes the following products:
Digital Imaging Systems Digital PPCs, color PPCs, digital duplicators,facsimile machines, related supplies and services
Other Imaging Systems Analog PPCs, diazo copiers, and related supplies including thermal paper, and services
Printing Systems Multifunctional printers (MFPs), laser printers, related supplies, services and software
Other Input/Output Systems Optical discs, systems and scanners
Network System Solutions Personal computers, PC servers, network systems, network related software, and service/support
Other Businesses Digital cameras, analog cameras, semiconductors
Reference: Exchange Rate... same as (*1) on page 11
-12-
(Nine months ended December 31, 2001, 2000 and year ended March 31, 2001)
(MILLIONS OF YEN)
- ------------------------------------------------------------------------------------------------------------------------------------
NINE MONTHS NINE MONTHS CHANGE (%) EXCLUDING YEAR ENDED
ENDED ENDED FOREIGN MAR. 31, 2001
DEC. 31, 2001 DEC. 31, 2000 EXCHANGE IMPACT(%)
- ------------------------------------------------------------------------------------------------------------------------------------
Imaging Solutions:
Digital Imaging Systems 473,906 417,137 +56,769 (13.6) +31,123 (7.5) 574,161
Percentage of net sales (%) 38.8 37.6 37.3
Domestic 222,153 232,335 (10,182) (-4.4) (10,182) (-4.4) 313,805
Overseas 251,753 184,802 +66,951 (36.2) +41,305 (22.4) 260,356
Other Imaging Systems 213,648 215,470 (1,822) (-0.8) (15,298) (-7.1) 292,872
Percentage of net sales (%) 17.5 19.4 19.1
Domestic 76,028 95,884 (19,856) (-20.7) (19,856) (-20.7) 120,963
Overseas 137,620 119,586 +18,034 (15.1) +4,558 (3.8) 171,909
Total Imaging Solutions 687,554 632,607 +54,947 (8.7) +15,825 (2.5) 867,033
Percentage of net sales (%) 56.3 57.0 56.4
Domestic 298,181 328,219 (30,038) (-9.2) (30,038) (-9.2) 434,768
Overseas 389,373 304,388 +84,985 (27.9) +45,863 (15.1) 432,265
- ------------------------------------------------------------------------------------------------------------------------------------
Networking input/output systems:
Printing Systems 219,003 146,715 +72,288 (49.3) +60,648 (41.3) 217,308
Percentage of net sales (%) 17.9 13.2 14.1
Domestic 101,186 72,096 +29,090 (40.3) +29,090 (40.3) 109,824
Overseas 117,817 74,619 +43,198 (57.9) +31,558 (42.3) 107,484
Other Input/Output Systems 32,532 31,960 +572 (1.8) (145) (-0.5) 44,530
Percentage of net sales (%) 2.7 2.9 2.9
Domestic 11,325 13,733 (2,408) (-17.5) (2,408) (-17.5) 19,336
Overseas 21,207 18,227 +2,980 (16.3) +2,263 (12.4) 25,194
Total Networking input/output systems 251,535 178,675 +72,860 (40.8) +60,503 (33.9) 261,838
Percentage of net sales (%) 20.6 16.1 17.0
Domestic 112,511 85,829 +26,682 (31.1) +26,682 (31.1) 129,160
Overseas 139,024 92,846 +46,178 (49.7) 33,821 (36.4) 132,678
- ------------------------------------------------------------------------------------------------------------------------------------
Network system solutions 148,004 149,232 (1,228) (-0.8) (1,316) (-0.9) 209,503
Percentage of net sales (%) 12.1 13.5 13.6
Domestic 146,335 146,368 (33) (-0.0) (33) (-0.0) 204,710
Overseas 1,669 2,864 (1,195) (-41.7) (1,283) (-44.8) 4,793
- ------------------------------------------------------------------------------------------------------------------------------------
<Office Equipment Total>. 1,087,093 960,514 +126,579 (13.2) +75,012 (7.8) 1,338,374
Percentage of net sales (%) 89.0 86.6 87.0
Domestic 557,027 560,416 (3,389) (-0.6) (3,389) (-0.6) 768,638
Overseas 530,066 400,098 +129,968 (32.5) +78,401 (19.6) 569,736
- ------------------------------------------------------------------------------------------------------------------------------------
<Other Businesses> 134,325 148,771 (14,446) (-9.7) (16,009) (-10.8) 199,888
Percentage of net sales (%) 11.0 13.4 13.0
Domestic 107,484 121,369 (13,885) (-11.4) (13,885) (-11.4) 161,765
Overseas 26,841 27,402 (561) (-2.0) (2,124) (-7.8) 38,093
- ------------------------------------------------------------------------------------------------------------------------------------
Grand Total 1,221,418 1,109,285 +112,133 (10.1) 59,003 (5.3) 1,538,262
Percentage of net sales (%) 100.0 100.0 100.0
Domestic 664,511 681,785 (17,274) (-2.5) (17,274) (-2.5) 930,433
Percentage of net sales (%) 54.4 61.5 60.5
Overseas 556,907 427,500 +129,407 (30.3) +76,277 (17.8) 607,829
Percentage of net sales (%) 45.6 38.5 39.5
The Americas 245,241 174,409 +70,832 (40.6) +41,945 (24.0) 252,698
Percentage of net sales (%) 20.1 15.7 16.4
Europe 225,984 177,205 +48,779 (27.5) +29,697 (16.8) 247,449
Percentage of net sales (%) 18.5 16.0 16.1
Other 85,682 75,886 +9,796 (12.9) +4,635 (6.1) 107,682
Percentage of net sales (%) 7.0 6.8 7.0
- ------------------------------------------------------------------------------------------------------------------------------------
Each category includes the following products:
Digital Imaging Systems Digital PPCs, color PPCs, digital duplicators, facsimile machines, related supplies
and services
Other Imaging Systems Analog PPCs, diazo copiers, and related supplies including thermal paper, and services
Printing Systems Multifunctional printers (MFPs), laser printers, related supplies, services and software
Other Input/Output Systems Optical discs , systems and scanners
Network System Solutions Personal computers, PC servers, network systems, network related software, and
service/support
Other Businesses Digital cameras, analog cameras, semiconductors
Reference: Exchange Rate... same as (*2) on page 11
-13-
5. CONSOLIDATED BALANCE SHEETS
(December 31, 2001 and March 31, 2001)
Assets
(MILLIONS OF YEN)
- ---------------------------------------------------------------------------------------------------------
DECEMBER 31, MARCH 31, CHANGE
2001 2001
- ---------------------------------------------------------------------------------------------------------
Current Assets
Cash and deposits 75,994 75,644 +350
Trade receivables 410,683 410,861 (178)
Marketable securities 74,490 62,213 +12,277
Inventories 173,941 176,383 (2,442)
Other current assets 50,826 54,306 (3,480)
Total Current Assets 785,934 779,407 +6,527
Fixed Assets
Tangible fixed assets 268,636 267,249 +1,387
Finance receivable 451,451 428,790 +22,661
Other Investments and other assets 254,370 229,345 +25,025
Total Fixed Assets 974,457 925,384 +49,073
- ---------------------------------------------------------------------------------------------------------
Total Assets 1,760,391 1,704,791 +55,600
- ---------------------------------------------------------------------------------------------------------
Liabilities and Minority Interest
(MILLIONS OF YEN)
- ---------------------------------------------------------------------------------------------------------
DECEMBER 31, MARCH 31, CHANGE
2001 2001
- ---------------------------------------------------------------------------------------------------------
Current Liabilities
Trade payable 265,704 291,791 (26,087)
Short-term borrowings 316,627 321,185 (4,558)
Other current liabilities 136,675 166,460 (29,785)
Total Current Liabilities 719,006 779,436 (60,430)
Fixed Liabilities
Long-term indebtedness 269,377 217,743 +51,634
Retirement benefit obligation 92,835 82,828 +10,007
Other fixed liabilities 28,199 20,625 +7,574
Total Fixed Liabilities 390,411 321,196 +69,215
- ---------------------------------------------------------------------------------------------------------
Total Liabilities 1,109,417 1,100,632 +8,785
- ---------------------------------------------------------------------------------------------------------
Minority Interest 49,694 47,431 +2,263
- ---------------------------------------------------------------------------------------------------------
Shareholders' Investment
(MILLIONS OF YEN)
- ---------------------------------------------------------------------------------------------------------
DECEMBER 31, MARCH 31, CHANGE
2001 2001
- ---------------------------------------------------------------------------------------------------------
Shareholders' Investment
Common stock 106,223 103,434 +2,789
Additional paid-in capital 157,418 154,635 +2,783
Retained earnings 367,426 332,447 +34,979
Accumulated other comprehensive income (29,787) (33,788) +4,001
Total Shareholders' Investment 601,280 556,728 +44,552
- ---------------------------------------------------------------------------------------------------------
Total Liabilities and Shareholders' Investment 1,760,391 1,704,791 +55,600
- ---------------------------------------------------------------------------------------------------------
Notes:
- ---------------------------------------------------------------------------------------------------------
DECEMBER 31, MARCH 31, CHANGE
2001 2001
- ---------------------------------------------------------------------------------------------------------
Contents of cash and deposits
Cash and cash equivalents 63,856 64,457 (601)
Time deposits 12,138 11,187 +951
Accumulated other comprehensive income;
Net unrealized holding gains on available-for-sale securities 10,506 11,332 (826)
Minimum pension liability adjustments (23,579) (23,579) -
Net unrealized gains on derivative instruments 433 - +433
Cumulative translation adjustments (17,147) (21,541) +4,394
EXCHANGE RATE (END OF TERM) DECEMBER 31, 2001 MARCH 31, 2001
- --------------------------------------------------------------------
US$1 131.95 yen 123.90 yen
EURO 1 116.51 yen 109.33 yen
- --------------------------------------------------------------------
-14-
6. STATEMENTS OF CASH FLOW (CONSOLIDATED)
(Nine months ended December 31, 2001, 2000 and year ended March 31, 2001)
(MILLIONS OF YEN)
- ----------------------------------------------------------------------------------------------------------------------------------
NINE MONTHS ENDED NINE MONTHS ENDED YEAR ENDED
DECEMBER 31, 2001 DECEMBER 31, 2000 MARCH 31, 2001
- ----------------------------------------------------------------------------------------------------------------------------------
I. Cash Flows from Operating Activities:
1. Net income 43,299 38,283 53,228
2. Adjustments to reconcile net income to net cash
provided by operating activities -
Depreciation and amortization 53,396 45,176 62,142
Equity in earnings of affiliates, net of dividends received (1,081) (1,168) (1,056)
Deferred income taxes (2,384) (4,999) (9,994)
Loss on disposal and sales of plant and equipment 993 1,290 2,223
Changes in assets and liabilities, net of effects
from acquisition -
Decrease (increase) in trade receivables 10,522 (32,540) (32,476)
Decrease (increase) in inventories 7,874 (12,512) (7,167)
Increase in finance receivables (18,119) (22,033) (15,127)
(Decrease) increase in trade payables (30,024) 15,598 16,235
(Decrease) increase in accrued income taxes and
accrued expenses and other (33,866) (20,257) 27,310
Increase in retirement benefit obligation 9,646 4,612 1,667
Other, net (6,499) 593 5,743
- ----------------------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 33,757 12,043 102,728
- ----------------------------------------------------------------------------------------------------------------------------------
II. Cash Flows from Investing Activities:
1. Proceeds from sales of plant and equipment 697 914 1,120
2. Expenditures for plant and equipment (56,501) (50,679) (73,040)
3. Payments for purchases of available-for-sale
securities (37,097) (17,392) (52,853)
4. Proceeds from sales of available-for-sale securities 39,677 85,330 93,705
5. Increase in investment and loans to subsidiaries, net 49 72 51
6. Decrease (increase) in time deposits (359) (2,847) 6,797
7. Acquisition amount of Lanier Worldwide, Inc - - (28,103)
8. Other, net (17,610) (12,980) (10,405)
- ----------------------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities (71,144) 2,418 (62,728)
- ----------------------------------------------------------------------------------------------------------------------------------
III. Cash Flows from Financing Activities:
1. Proceeds from long-term indebtedness 30,863 23,367 33,183
2. Repayment of long-term indebtedness (55,966) (43,675) (114,701)
3. Increase in short-term borrowings, net 35,234 39,179 5,565
4. Proceeds from issuance of long-term debt securities 43,500 - -
5. Repayment of long-term debt securities (10,000) - (2,990)
6. Cash dividends paid (8,318) (7,963) (7,964)
7. Other, net (496) (532) (1,475)
- ----------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities 34,817 10,376 (88,382)
- ----------------------------------------------------------------------------------------------------------------------------------
IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents 1,969 1,623 1,001
- ----------------------------------------------------------------------------------------------------------------------------------
V. Net Increase (Decrease) in Cash and Cash Equivalents (601) 26,460 (47,381)
- ----------------------------------------------------------------------------------------------------------------------------------
VI. Cash and Cash Equivalents at Beginning of Year 64,457 111,838 111,838
- ----------------------------------------------------------------------------------------------------------------------------------
VII. Cash and Cash Equivalents at End of Year 63,856 138,298 64,457
- ----------------------------------------------------------------------------------------------------------------------------------
-15-
7. SEGMENT INFORMATION
(1) BUSINESS SEGMENT INFORMATION
(Three months ended December 31, 2001)
(MILLIONS OF YEN)
- --------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED THREE MONTHS ENDED
DECEMBER 31, 2001 DECEMBER 31, 2000 CHANGE (%)
- --------------------------------------------------------------------------------------------------------------
Net sales:
Office Equipment 357,520 329,104 +28,416 (8.6)
Other Businesses 44,786 47,274 (2,488) (-5.3)
Intersegment (975) (2,396) +1,421 (-59.3)
- --------------------------------------------------------------------------------------------------------------
Total 401,331 373,982 +27,349 (7.3)
- --------------------------------------------------------------------------------------------------------------
Operating expenses:
Office Equipment 315,121 293,966 +21,155 (7.2)
Other Businesses 44,823 45,096 (273) (-0.6)
Intersegment (976) (2,388) +1,412 (-59.1)
Corporate and eliminations 12,634 11,465 +1,169 (10.2)
- --------------------------------------------------------------------------------------------------------------
Total 371,602 348,139 +23,463 (6.7)
- --------------------------------------------------------------------------------------------------------------
Operating income:
Office Equipment 42,399 35,138 +7,261 (20.7)
Other Businesses (37) 2,178 (2,215) (-101.7)
Intersegment 1 (8) +9 (-112.5)
Corporate and eliminations (12,634) (11,465) (1,169) (10.2)
- --------------------------------------------------------------------------------------------------------------
Total 29,729 25,843 +3,886 (15.0)
- --------------------------------------------------------------------------------------------------------------
Operating income on segment sales:
Office Equipment 11.9% 10.7%
Other Businesses (0.1)% 4.6%
- --------------------------------------------------------------------------------------------------------------
(Nine months ended December 31, 2001)
(MILLIONS OF YEN)
- --------------------------------------------------------------------------------------------------------------
NINE MONTHS ENDED NINE MONTHS ENDED
DECEMBER 31, 2001 DECEMBER 31, 2000 CHANGE (%)
- --------------------------------------------------------------------------------------------------------------
Net sales:
Office Equipment 1,087,093 960,514 +126,579 (13.2)
Other Businesses 137,362 152,702 (15,340) (-10.0)
Intersegment (3,037) (3,931) +894 (-22.7)
- --------------------------------------------------------------------------------------------------------------
Total 1,221,418 1,109,285 +112,133 (10.1)
- --------------------------------------------------------------------------------------------------------------
Operating expenses:
Office Equipment 960,248 858,304 101,944 (11.9)
Other Businesses 136,039 142,734 (6,695) (-4.7)
Intersegment (3,063) (3,921) +858 (-21.9)
Corporate and eliminations 38,561 35,184 +3,377 (9.6)
- --------------------------------------------------------------------------------------------------------------
Total 1,131,785 1,032,301 +99,484 (9.6)
- --------------------------------------------------------------------------------------------------------------
Operating income:
Office Equipment 126,845 102,210 +24,635 (24.1)
Other Businesses 1,323 9,968 (8,645) (-86.7)
Intersegment 26 (10) +36 (-360.0)
Corporate and eliminations (38,561) (35,184) (3,377) (9.6)
- --------------------------------------------------------------------------------------------------------------
Total 89,633 76,984 +12,649 (16.4)
- --------------------------------------------------------------------------------------------------------------
Operating income on segment sales:
Office Equipment 11.7% 10.6%
Other Businesses 1.0% 6.5%
- --------------------------------------------------------------------------------------------------------------
-16-
(2) GEOGRAPHIC SEGMENT INFORMATION
(Three months ended December 31, 2001)
(MILLIONS OF YEN)
- ----------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED THREE MONTHS ENDED
DECEMBER 31, 2001 DECEMBER 31, 2000 CHANGE (%)
- ----------------------------------------------------------------------------------------------------------
Net sales:
Japan
Unaffiliated Customers 222,195 232,362 (10,167) (-4.4)
Intersegment 80,265 65,573 +14,692 (22.4)
Total 302,460 297,935 +4,525 (1.5)
The Americas
Unaffiliated Customers 81,388 61,787 +19,601 (31.7)
Intersegment 2,462 623 +1,839 (295.2)
Total 83,850 62,410 +21,440 (34.4)
Europe
Unaffiliated Customers 77,007 60,492 +16,515 (27.3)
Intersegment 1,230 761 +469 (61.6)
Total 78,327 61,253 +16,984 (27.7)
Other
Unaffiliated Customers 20,741 19,341 +1,400 (7.2)
Intersegment 15,587 9,369 +6,218 (66.4)
Total 36,328 28,710 +7,618 (26.5)
Intersegment (99,544) (76,326) (23,218) (30.4)
- ----------------------------------------------------------------------------------------------------------
Total 401,331 373,982 +27,349 (7.3)
- ----------------------------------------------------------------------------------------------------------
Operating expenses:
Japan 276,296 279,131 (2,835) (-1.0)
The Americas 83,149 61,938 +21,211 (34.2)
Europe 74,151 59,851 +14,300 (23.9)
Other 34,461 26,913 +7,548 (28.0)
Corporate and eliminations (96,455) (79,694) (16,761) (21.0)
- ----------------------------------------------------------------------------------------------------------
Total 371,602 348,139 +23,463 (6.7)
- ----------------------------------------------------------------------------------------------------------
Operating income:
Japan 26,164 18,804 +7,360 (39.1)
The Americas 701 472 +229 (48.5)
Europe 4,086 1,402 +2,684 (191.4)
Other 1,867 1,797 +70 (3.9)
Corporate and eliminations (3,089) 3,368 (6,457) (-191.7)
- ----------------------------------------------------------------------------------------------------------
Total 29,729 25,843 +3,886 (15.0)
- ----------------------------------------------------------------------------------------------------------
Operating income on segment sales:
Japan 8.7% 6.3%
The Americas 0.8% 0.8%
Europe 5.2% 2.3%
Other 5.1% 6.3%
- ----------------------------------------------------------------------------------------------------------
-17-
(Nine months ended December 31, 2001)
(MILLIONS OF YEN)
- ----------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED THREE MONTHS ENDED
DECEMBER 31, 2001 DECEMBER 31, 2000 CHANGE (%)
- ----------------------------------------------------------------------------------------------------------
Net sales:
Japan
Unaffiliated Customers 689,465 698,818 (9,353) (-1.3)
Intersegment 230,859 206,471 +24,388 (11.8)
Total 920,324 905,289 +15,035 (1.7)
The Americas
Unaffiliated Customers 243,527 173,829 +69,698 (40.1)
Intersegment 5,827 3,498 +2,329 (66.6)
Total 249,354 177,327 +72,027 (40.6)
Europe
Unaffiliated Customers 224,793 179,652 +45,141 (25.1)
Intersegment 3,390 2,291 +1,099 (48.0)
Total 228,183 181,943 +46,240 (25.4)
Other
Unaffiliated Customers 63,633 56,986 +6,647 (11.7)
Intersegment 44,766 28,489 +16,277 (57.1)
Total 108,399 85,475 +22,924 (26.8)
Intersegment (284,842) (240,749) (44,093) (18.3)
- ----------------------------------------------------------------------------------------------------------
Total 1,221,418 1,109,285 +112,133 (10.1)
- ----------------------------------------------------------------------------------------------------------
Operating expenses:
Japan 841,193 840,950 +243 (0.0)
The Americas 246,432 172,614 +73,818 (42.8)
Europe 219,393 175,426 +43,967 (25.1)
Other 103,859 81,407 +22,452 (27.6)
Corporate and eliminations (279,092) (238,096) (40,996) (17.2)
- ----------------------------------------------------------------------------------------------------------
Total 1,131,785 1,032,301 +99,484 (9.6)
- ----------------------------------------------------------------------------------------------------------
Operating income:
Japan 79,131 64,339 +14,792 (23.0)
The Americas 2,922 4,713 (1,791) (-38.0)
Europe 8,790 6,517 +2,273 (34.9)
Other 4,540 4,068 +472 (11.6)
Corporate and eliminations (5,750) (2,653) (3,097) (116.7)
- ----------------------------------------------------------------------------------------------------------
Total 89,633 76,984 +12,649 (16.4)
- ----------------------------------------------------------------------------------------------------------
Operating income on segment sales:
Japan 8.6% 7.1%
The Americas 1.2% 2.7%
Europe 3.9% 3.6%
Other 4.2% 4.8%
- ----------------------------------------------------------------------------------------------------------
-18-
8. SIGNIFICANT ACCOUNTING POLICIES
1. ITEMS RELATING TO THE SCALE OF CONSOLIDATION AND THE APPLICATION OF THE
EQUITY METHOD
Consolidated subsidiaries
14 additions, including Ricoh Chubu Company, Ltd. and Ricoh Kyusyu Company,
Ltd.
5 removals, including Higashi Shizuoka Ricoh Company, Ltd.
Companies accounted for by the equity method:
5 additions, including Tohoku Ricoh (Fuzhon) Printing Products Co., Ltd.
1 removal: NRG Singapore Pte. Ltd.
2. CONSOLIDATED ACCOUNTING POLICIES
(1) Principles of Consolidation
The consolidated financial statements include the accounts of Ricoh. All
significant intercompany balances and transactions have been eliminated in
consolidation. Investments in affiliated companies are accounted for on the
equity basis.
(2) Securities
Ricoh conforms with SFAS No. 115, "Accounting for Certain Investments in
Debt and Equity Securities," which requires certain investments in debt and
equity securities to be classified as either held-to-maturity, trading, or
available-for-sale securities. Available-for-sale are reported at fair value
with unrealized gains and losses, net of related taxes, excluded from earnings
and reported in accumulated other comprehensive income (loss).
The cost of the securities sold was computed based on the average cost of
each security held at the time of sale.
(3) Inventories
Inventories are 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
Ricoh has classified as goodwill the cost in excess of fair value of the
net assets of major companies acquired in purchase transactions. Goodwill is
being amortized on a straight-line method over the estimated periods benefited,
not to exceed 20 years.
(6) 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,
and the disclosure of contingent assets and liabilities, to prepare these
financial statements in conformity with generally accepted accounting
principles. Actual results could differ from those estimates.
3. NOTES
From fiscal 2002, Ricoh has adopted SFAS No. 133, "Accounting for
Derivative Instruments and Hedging Activities," and SFAS No. 138, "Accounting
for Certain Derivative Instruments and Certain Hedging Activities," an amendment
of FASB Statement No. 133. These standards require all that every derivative
instrument be measured at its fair value and be recorded in the consolidated
balance sheets as an asset or liability.
Under the new standards, the unrealized gains of 1,864 million yen net of
the income tax effect are deducted from other comprehensive income in the
consolidated balance sheets, and a decrease to net income of 66 million yen are
recorded in the consolidated statements of income.
-19-