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 July, 2003
Commission File Number 2 - 68279
RICOH COMPANY, LTD.
-----------------------------------------------
(Translation of Registrant's name into English)
15-5, Minami-Aoyama 1-Chome, Minato-ku, Tokyo 107-8544, 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
Executive Vice President
and General Manager of the
Finance and Accounting Division
July 30, 2003
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[LOGO] RICOH
QUARTERLY REPORT
1st Quarter ended June 30, 2003
(Results for the Period from April 1, 2003 to June 30, 2003)
PERFORMANCE OUTLINE (CONSOLIDATED)
(Billions of yen)
-------------------------------------------------------------------------------------------- ----------------------------
Three months ended Three months ended Year ended
June 30, 2003 June 30, 2002 Change March 31, 2004 Change
Results Results Forecast
-------------------------------------------------------------------------------------------- ----------------------------
Domestic sales 224.3 224.8 -0.2% 900.0 0.4%
Overseas sales 213.1 203.4 4.8% 905.0 7.4%
Net sales 437.4 428.2 2.1% 1,805.0 3.8%
Gross profit 192.7 186.4 3.4% 792.0 6.3%
Operating income 38.4 35.9 7.1% 151.0 13.0%
Income before income taxes 37.3 32.2 15.6% 145.5 17.8%
Net income 22.3 19.5 14.5% 85.0 17.2%
-------------------------------------------------------------------------------------------- ----------------------------
Exchange rate (Yen/US$) 118.52 127.01 -8.49 116.63 -5.33
Exchange rate (Yen/EURO) 134.67 116.56 18.11 131.17 10.17
-------------------------------------------------------------------------------------------- ----------------------------
Net income per share (yen) 30.04 26.85 3.19 114.16 14.37
Net income per share-diluted (yen) - 26.01 - - -
-------------------------------------------------------------------------------------------- ----------------------------
Cash flows from operating activities 39.8 54.3 -14.4 - -
Cash flows from investing activities -7.9 -15.4 7.4 - -
Cash flows from financing activities -6.4 -3.7 -2.6 - -
Cash and cash equivalents at end of period 215.9 203.0 12.9 - -
-------------------------------------------------------------------------------------------- ----------------------------
Capital expenditures 18.6 17.6 1.0 75.0 1.0
Depreciation for tangible fixed assets 17.0 16.9 0.0 70.0 0.4
R&D expenditures 19.3 18.4 0.9 85.0 1.4
-------------------------------------------------------------------------------------------- ----------------------------
--------------------------------------------------------------------------------------------
June 30, 2003 March 31, 2003 Change
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Total assets 1,924.6 1,884.9 39.7
Shareholders' equity 685.7 657.5 28.2
Interest-bearing debt 483.1 484.6 -1.4
--------------------------------------------------------------------------------------------
Equity ratio (%) 35.6 34.9 0.7
--------------------------------------------------------------------------------------------
Shareholder's equity per share (yen) 920.97 885.41 35.56
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RICOH COMPANY, LTD.
* The Company bases the forecast estimates for March 31, 2004 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 for the first quarter of fiscal 2004 (the three months
period from April 1 to June 30, 2003) amounted to YEN437.4 billion, up 2.1% as
compared to the previous corresponding period. During this quarter, the average
yen exchange rates were at YEN118.52 against the U.S. dollar (an appreciation of
approximately 6.7% as compared to the previous corresponding period) and
YEN134.67 against the Euro (a depreciation of approximately 15.5% as compared to
the previous corresponding period). Net sales would rise 0.9 % excluding effects
of such exchange fluctuations.
Domestic sales of printing systems such as MFPs (multifunctional printers) and
laser printers with networks and multifunctions, and solutions business such as
useware and support continued to be favorable. In addition, demand for
semiconductors has recovered. Nevertheless, owing to the growing shift from
analog equipments to MFPs and color equipments and to the sluggish growth in PC
servers, overall sales decreased by 0.2% as compared to the previous
corresponding period.
As for overseas sales, our core product category such as digital PPCs, MFPs and
printers posted growth in sales in each region. Sales in the Americas were down
5.6% as compared to the previous corresponding period due to the effects of the
yen's appreciation. On the other hand, sales in Europe increased by 18.4% due in
part to the effects of the yen's depreciation. Sales in China and other Asian
markets decreased by 2.7% due primarily to a decline in demand for optical
discs. As a result, overall overseas sales were up 4.8% as compared to the
previous corresponding period, and it would increase by 2.1% excluding effects
of exchange fluctuations.
Operating income increased by 7.1% as compared to the previous corresponding
period, to YEN38.4 billion. This was attributed to an increase in revenues from
high-margin, high-value-added products such as digital PPCs, MFPs and printers,
and the effects of new products offering and of the continuous cost-cutting
activities. In addition, the effects of the yen's depreciation contributed to
this rise in operating income. As for non-operating profit and loss, exchange
loss and other expenses decreased.
As a result, income before income taxes increased by 15.6% as compared to the
previous corresponding period, to YEN37.3 billion.
Due to the change of the Corporate Tax Law in Japan, the amount of tax exemption
on research and development expenses was increased, thereby leading to a decline
in the effective tax rate. As a result, net income increased by 14.5% as
compared to the previous corresponding period, to YEN22.3 billion.
2
*Conditions by Product Line
Office Equipment (Sales up 1.7%, to YEN383.7 billion)
To support customers more efficiently manage their TDV(total document volume),
the Ricoh Group advances solution proposals on optimization of their total
printing costs. Ricoh is thus shifting away from standalone analog equipment
toward digital, networking, and color and high-speed technologies as a strategy
to realize this objective. These efforts allowed us to continue expanding the
sales volume digital PPCs, MFPs, laser printers, and other printing systems
while continuous sales increase in useware, support and other network system
solutions.
In Japan, sales of office equipment took a downturn due primarily to a slowdown
in sales of PC servers. However, overseas sales increased due primarily to
growth in sales of digital PPCs and printing systems and the relative effects of
the yen's depreciation. As a result, overall sales of office equipment increased
by 1.7% as compared to the previous corresponding period, to YEN383.7 billion.
Imaging Solutions (Sales down 3.3%, to YEN212.7 billion)
Digital Imaging Systems
- Continuous new offering of digital PPCs products
(Imagio Neo 351/451 series in Japan and Aficio 2035/2045 series overseas)
- Domestic sales decreased due primarily to sluggish demand
- Overseas sales of digital PPCs increased in each region
As a result, sales in this category increased by 1.7%.
Other Imaging Systems
- Sales were down 15.5% due to a shift from analog equipments to MFPs and
color equipments.
Network Input/Output Systems (Sales up 15.4%, to YEN127.5 billion)
Printing Systems
- New offering products to cope with the shift to high-speed, networked and
color models in Japan and overseas
(Imagio Neo C380 in Japan and Aficio 1224C/1232C overseas)
- Sales of MFPs and laser printers continued increasing.
As a result, sales for this category increased by 22.7%.
Other Input/Output Systems
Sales of the optical disc business, which was favorable results in the
previous term, decreased by 28.0% due primarily to the model change.
Network System Solutions (Sales down 7.4%, to YEN43.4 billion)
- Responded to customers' need for improving total cost performance
- Strengthened useware, document management and other solutions business
- Sales of PC servers took a downturn.
Operating income for the entire office equipment business increased by 3.5% as
compared to the previous corresponding period, to YEN48.2 billion. This can be
ascribed to the continued introduction of new high-margin, high-value-added
products, an increase in their sales, and the impact of ongoing cost-cutting
efforts in production. In addition, the relative effects of the yen's
depreciation contributed to this increase.
Other Businesses (Sales up 5.5%, to YEN53.7 billion)
Sales in this segment increased by 5.5% as compared to the previous
corresponding period, to YEN53.7 billion. The semiconductor business registered
growth in sales, contributing to the overall improvement in revenues of the
other businesses. Sales of measuring equipment took a downswing, on the other
hand the leasing business achieved steady gains.
As a result, overall operating income for other businesses increased to YEN2.4
billion.
*Cash Flows
Net cash provided by operating activities decreased YEN14.4 billion as compared
to the previous corresponding period, to YEN39.8 billion. This was attributed to
the fact that although net income and depreciation and amortization expenses
increased as compared to the previous corresponding period, inventories
increased in order to cope with SARS (severe acute respiratory syndrome) and an
expansion of sales.
Net cash used in investing activities was YEN7.9 billion due to capital
investment in new product lines and product development, and the redemption of
securities.
As a result, free cash flow generated by operating and investing activities
totaled YEN31.9 billion, down YEN7.0 billion as compared to the previous
corresponding period.
Net cash used in financing activities amounted to YEN6.4 billion due primarily
to efforts of reductions of interest-bearing debt and to dividend payments.
As a result, cash and cash equivalents at the end of the first quarter were
YEN26.7 billion higher than the end of the preceding year, standing at YEN215.9
billion.
3
*Expectations
As for the forecast of business results for the fiscal year ended March 31,
2004, we maintain our net sales forecast YEN1,805.0 billion as that announced in
May of this year. We anticipate the exchange rates to trade at YEN116.00 against
the U.S. dollar and YEN130.00 against the Euro in and after the second quarter.
We believe we can offset the decline in domestic sales stemming from sluggish
demand by implementing business strategies, such as the continued and effective
introduction of new products, and by augmenting overseas sales expansion.
As for income, we revised upward our forecast of operating income from YEN147.0
billion announced in May of this year to YEN151.0 billion, income before income
taxes from YEN137.0 billion to YEN145.5 billion, and net income from YEN79.0
billion to YEN85.0 billion. This upward revision reflects stronger first quarter
results than initially forecast and our anticipation of a further improvement in
profitability.
Our performance forecasts for fiscal 2004 are as follows:
Exchange Rate Assumptions for the full year ended March 31, 2004
US$ 1 = YEN116.63 (YEN121.96 in previous fiscal year)
EURO 1 = YEN131.17 (YEN121.00 in previous fiscal year)
(Billions of yen)
------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2004 March 31, 2003 Change
Forecast Results
------------------------------------------------------------------------------------------
Domestic sales 900.0 896.0 0.4%
Overseas sales 905.0 842.3 7.4%
Net sales 1,805.0 1,738.3 3.8% (*1)
Gross profit 792.0 745.3 6.3%
Operating income 151.0 133.6 13.0%
Income before income taxes 145.5 123.4 17.8%
Net income 85.0 72.5 17.2% (*2)
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Notes:
*1...Net sales would be tenth consecutive year of growth.
*2...Net income would be twelfth consecutive year of growth and tenth
consecutive year of record high.
* Ricoh bases the forecast estimates for March 31, 2004 above upon information
currently available to management, which involves risks and uncertainties that
could cause actual results to differ materially from those projected.
4
RICOH COMPANY, LTD. AND CONSOLIDATED SUBSIDIARIES
FINANCIAL HIGHLIGHTS FOR THE 1ST QUARTER ENDED JUNE 30, 2003
(U.S. GAAP FINANCIAL INFORMATION)
1. ITEMS RELATING TO 1ST QUARTER FINANCIAL STATEMENTS
(1) No change in accounting method has been made.
(2) No change relating to the scale of consolidation and the application of the
equity method has been made.
2. RESULTS FOR THE PERIOD FROM APRIL 1, 2003 TO JUNE 30, 2003
(1) Operating Results (Millions of yen)
-------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Year ended
June 30, 2003 June 30, 2002 March 31, 2003
-------------------------------------------------------------------------------------------------------------------------
Net sales 437,453 428,271 1,738,358
(% change from the previous corresponding period) 2.1 4.0 3.9
Operating income 38,484 35,927 133,654
(% change from the previous corresponding period) 7.1 13.6 3.1
Income before income taxes 37,317 32,270 123,470
(% change from the previous corresponding period) 15.6 18.7 8.4
Net income 22,355 19,521 72,513
(% change from the previous corresponding period) 14.5 31.2 17.7
Net income per share-basic (yen) 30.04 26.85 99.79
Net income per share-diluted (yen) - 26.01 96.81
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Notes:
i. Equity in earnings of affiliates: YEN 452 million (YEN 831 million in
previous corresponding period)
ii. Average number of shares outstanding:744,258,093 shares (727,067,931
shares in previous corresponding period)
(2) Financial Position (Millions of yen)
-------------------------------------------------------------------------------------------------------------------------
June 30, 2003 June 30, 2002 March 31, 2003
-------------------------------------------------------------------------------------------------------------------------
Total assets 1,924,631 1,821,949 1,884,922
Shareholders' equity 685,730 648,343 657,514
Equity ratio (%) 35.6 35.6 34.9
Equity per share (yen) 920.97 891.78 885.41
-------------------------------------------------------------------------------------------------------------------------
Note: Number of shares outstanding as of June 30, 2003: 744,571,144 shares
(727,024,532 shares as of June 30, 2002)
Cash Flow (Millions of yen)
-------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Year ended
June 30, 2003 June 30, 2002 March 31, 2003
-------------------------------------------------------------------------------------------------------------------------
Cash flows from operating activities 39,877 54,359 185,742
Cash flows from investing activities -7,973 -15,417 -98,199
Cash flows from financing activities -6,404 -3,791 -67,143
Cash and cash equivalents at end of period 215,982 203,062 189,243
-------------------------------------------------------------------------------------------------------------------------
3. FORECAST OF OPERATING RESULTS FROM APRIL 1, 2003 TO MARCH 31, 2004 (Millions of yen)
-------------------------------------------------------------------------------------------------------------------------
Half year ended Year ended
September 30, 2003 March 31, 2004
-------------------------------------------------------------------------------------------------------------------------
Net sales 892,500 1,805,000
Operating income 73,500 151,000
Income before income taxes 71,000 145,500
Net income 41,500 85,000
-------------------------------------------------------------------------------------------------------------------------
Note: Net income per share (Consolidated) 114.16 yen
In accordance with Japanese regulations, Ricoh has issued forecast for its
financial results for the fiscal year ending March 2004. 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 (Millions of yen)
---------------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
June 30, 2003 June 30, 2002 Change %
---------------------------------------------------------------------------------------------------------------------------------
Net sales 437,453 428,271 9,182 2.1
Cost of sales 244,701 241,774 2,927 1.2
Percentage of net sales (%) 55.9 56.5
Gross Profit 192,752 186,497 6,255 3.4
Percentage of net sales (%) 44.1 43.5
Selling, general and administrative expenses 154,268 150,570 3,698 2.5
Percentage of net sales (%) 35.3 35.1
Operating income 38,484 35,927 2,557 7.1
Percentage of net sales (%) 8.8 8.4
Other (income) expense
Interest and dividend income 696 963 -267 -27.7
Percentage of net sales (%) 0.1 0.2
Interest expense 1,524 1,739 -215 -12.4
Percentage of net sales (%) 0.3 0.4
Other, net 339 2,881 -2,542 -88.2
Percentage of net sales (%) 0.1 0.7
Income before income taxes, equity income and
minority interests 37,317 32,270 5,047 15.6
Percentage of net sales (%) 8.5 7.5
Provision for income taxes 14,062 13,001 1,061 8.2
Percentage of net sales (%) 3.2 3.0
Minority interests in earnings of subsidiaries 1,352 579 773 133.5
Percentage of net sales (%) 0.3 0.1
Equity in earnings of affiliates 452 831 -379 -45.6
Percentage of net sales (%) 0.1 0.2
Net income 22,355 19,521 2,834 14.5
Percentage of net sales (%) 5.1 4.6
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2-1. CONSOLIDATED SALES BY PRODUCT CATEGORY (Millions of yen)
---------------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
June 30, 2003 June 30, 2002 Change %
---------------------------------------------------------------------------------------------------------------------------------
(Office Equipment)
Imaging Solutions:
Digital Imaging Systems 158,997 156,289 2,708 1.7
Percentage of net sales (%) 36.3 36.5
Other Imaging Systems 53,771 63,632 -9,861 -15.5
Percentage of net sales (%) 12.3 14.8
Total Imaging Solutions 212,768 219,921 -7,153 -3.3
Percentage of net sales (%) 48.6 51.3
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Network Input/Output Systems:
Printing Systems 116,106 94,653 21,453 22.7
Percentage of net sales (%) 26.5 22.1
Other Input/Output Systems 11,421 15,863 -4,442 -28.0
Percentage of net sales (%) 2.7 3.7
Total Network Input/Output Systems 127,527 110,516 17,011 15.4
Percentage of net sales (%) 29.2 25.8
---------------------------------------------------------------------------------------------------------------------------------
Network System Solutions 43,437 46,930 -3,493 -7.4
Percentage of net sales (%) 9.9 11.0
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Office Equipment Total 383,732 377,367 6,365 1.7
Percentage of net sales (%) 87.7 88.1
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(Other Businesses)
Other Businesses 53,721 50,904 2,817 5.5
Percentage of net sales (%) 12.3 11.9
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Grand Total 437,453 428,271 9,182 2.1
Percentage of net sales (%) 100.0 100.0
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2-2. CONSOLIDATED SALES BY GEOGRAPHIC AREA (Millions of yen)
---------------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
June 30, 2003 June 30, 2002 Change %
---------------------------------------------------------------------------------------------------------------------------------
(Domestic) 224,335 224,844 -509 -0.2
Percentage of net sales (%) 51.3 52.5
(Overseas) 213,118 203,427 9,691 4.8
Percentage of net sales (%) 48.7 47.5
The Americas 79,491 84,171 -4,680 -5.6
Percentage of net sales (%) 18.2 19.7
Europe 98,619 83,260 15,359 18.4
Percentage of net sales (%) 22.5 19.4
Other 35,008 35,996 -988 -2.7
Percentage of net sales (%) 8.0 8.4
Grand Total 437,453 428,271 9,182 2.1
Percentage of net sales (%) 100.0 100.0
---------------------------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 YEN118.52 YEN127.01
EURO 1 YEN134.67 YEN116.56
6
3. SEGMENT INFORMATION
(1) Industry Segment Information (Millions of yen)
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Three months ended Three months ended
June 30, 2003 June 30, 2002 Change %
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OFFICE EQUIPMENT:
Net sales:
Unaffiliated customers 383,732 377,367 6,365 1.7
Intersegment - - - -
Total 383,732 377,367 6,365 1.7
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Operating expenses 335,487 330,766 4,721 1.4
----------------------------------------------------------------------------------------------------------------------------------
Operating income 48,245 46,601 1,644 3.5
Operating income on office equipment sales(%) 12.6 12.3
----------------------------------------------------------------------------------------------------------------------------------
OTHER BUSINESSES:
Net sales:
Unaffiliated customers 53,721 50,904 2,817 5.5
Intersegment 627 738 -111 -15.0
Total 54,348 51,642 2,706 5.2
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Operating expenses 51,936 51,281 655 1.3
----------------------------------------------------------------------------------------------------------------------------------
Operating income 2,412 361 2,051 568.1
Operating income on sales in other businesses (%) 4.4 0.7
----------------------------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -627 -738 111 -
Total -627 -738 111 -
----------------------------------------------------------------------------------------------------------------------------------
Operating expenses:
Intersegment -647 -751 104 -
Corporate 12,193 11,048 1,145 -
Total 11,546 10,297 1,249 -
----------------------------------------------------------------------------------------------------------------------------------
Operating income -12,173 -11,035 -1,138 -
----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
Unaffiliated customers 437,453 428,271 9,182 2.1
Intersegment - - - -
Total 437,453 428,271 9,182 2.1
----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 398,969 392,344 6,625 1.7
----------------------------------------------------------------------------------------------------------------------------------
Operating income 38,484 35,927 2,557 7.1
Operating income on consolidated net sales(%) 8.8 8.4
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(2) Geographic Segment Information (Millions of yen)
----------------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
June 30, 2003 June 30, 2002 Change %
----------------------------------------------------------------------------------------------------------------------------------
JAPAN:
Net sales:
External customers 238,338 240,204 -1,866 -0.8
Intersegment 97,074 78,012 19,062 24.4
Total 335,412 318,216 17,196 5.4
----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 301,568 292,493 9,075 3.1
----------------------------------------------------------------------------------------------------------------------------------
Operating income 33,844 25,723 8,121 31.6
Operating income on sales in Japan(%) 10.1 8.1
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THE AMERICAS:
Net sales:
External customers 77,534 82,206 -4,672 -5.7
Intersegment 1,582 1,259 323 25.7
Total 79,116 83,465 -4,349 -5.2
----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 76,823 82,091 -5,268 -6.4
----------------------------------------------------------------------------------------------------------------------------------
Operating income 2,293 1,374 919 66.9
Operating income on sales in the Americas(%) 2.9 1.6
----------------------------------------------------------------------------------------------------------------------------------
EUROPE:
Net sales:
External customers 98,763 83,622 15,141 18.1
Intersegment 1,056 897 159 17.7
Total 99,819 84,519 15,300 18.1
----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 94,329 81,226 13,103 16.1
----------------------------------------------------------------------------------------------------------------------------------
Operating income 5,490 3,293 2,197 66.7
Operating income on sales in Europe(%) 5.5 3.9
----------------------------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 22,818 22,239 579 2.6
Intersegment 25,115 15,576 9,539 61.2
Total 47,933 37,815 10,118 26.8
----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 45,580 35,557 10,023 28.2
----------------------------------------------------------------------------------------------------------------------------------
Operating income 2,353 2,258 95 4.2
Operating income on sales in other(%) 4.9 6.0
----------------------------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -124,827 -95,744 -29,083 -
Total -124,827 -95,744 -29,083 -
----------------------------------------------------------------------------------------------------------------------------------
Operating expenses: -119,331 -99,023 -20,308 -
----------------------------------------------------------------------------------------------------------------------------------
Operating income -5,496 3,279 -8,775 -
----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 437,453 428,271 9,182 2.1
Intersegment - - - -
Total 437,453 428,271 9,182 2.1
----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 398,969 392,344 6,625 1.7
----------------------------------------------------------------------------------------------------------------------------------
Operating income 38,484 35,927 2,557 7.1
Operating income on consolidated net sales(%) 8.8 8.4
----------------------------------------------------------------------------------------------------------------------------------
7
4. CONSOLIDATED BALANCE SHEETS
Assets (Millions of yen)
------------------------------------------------------------------------------------------------------------------
June 30, 2003 March 31, 2003 Change
------------------------------------------------------------------------------------------------------------------
Current Assets
Cash and time deposits 219,888 200,330 19,558
Trade receivables 412,046 417,942 -5,896
Marketable securities 112 107 5
Inventories 161,770 146,051 15,719
Other current assets 59,874 58,083 1,791
Total Current Assets 853,690 822,513 31,177
Fixed Assets
Tangible fixed assets 246,613 248,752 -2,139
Finance receivable 484,702 476,293 8,409
Other Investments 339,626 337,364 2,262
Total Fixed Assets 1,070,941 1,062,409 8,532
------------------------------------------------------------------------------------------------------------------
Total Assets 1,924,631 1,884,922 39,709
------------------------------------------------------------------------------------------------------------------
Note:
Contents of cash and time deposits:
Cash and cash equivalents 215,982 189,243
Time deposits 3,906 11,087
Liabilities and Shareholders' Investment (Millions of yen)
------------------------------------------------------------------------------------------------------------------
June 30, 2003 March 31, 2003 Change
------------------------------------------------------------------------------------------------------------------
Current Liabilities
Trade payables 287,377 280,798 6,579
Short-term borrowings 165,971 138,713 27,258
Other current liabilities 174,678 169,072 5,606
Total Current Liabilities 628,026 588,583 39,443
Fixed Liabilities
Long-term indebtedness 317,227 345,902 -28,675
Retirement benefit obligation 214,622 209,011 5,611
Other fixed liabilities 30,556 30,653 -97
Total Fixed Liabilities 562,405 585,566 -23,161
------------------------------------------------------------------------------------------------------------------
Total Liabilities 1,190,431 1,174,149 16,282
------------------------------------------------------------------------------------------------------------------
Minority Interest 48,470 53,259 -4,789
------------------------------------------------------------------------------------------------------------------
Shareholders' Investment
Common stock 135,364 135,364 -
Additional paid-in capital 186,599 186,521 78
Retained earnings 451,905 434,748 17,157
Accumulated other comprehensive income (loss) -87,518 -94,733 7,215
Treasury stock -620 -4,386 3,766
Total Shareholders' Investment 685,730 657,514 28,216
------------------------------------------------------------------------------------------------------------------
Total Liabilities and Shareholders' Investment 1,924,631 1,884,922 39,709
------------------------------------------------------------------------------------------------------------------
Note: Other comprehensive income;
Net unrealized holding gains on available-for-sale
securities 10,165 8,582 1,583
Pension liability adjustments -87,358 -89,119 1,761
Net unrealized gains (losses) on derivative instruments -96 -178 82
Cumulative translation adjustments -10,229 -14,018 3,789
Reference: Exchange rate June 30, 2003 March 31, 2003
US$ 1 YEN119.80 YEN120.20
EURO 1 YEN136.92 YEN129.83
8
5. CONSOLIDATED STATEMENTS OF CASH FLOW
(Millions of yen)
----------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
June 30, 2003 June 30, 2002
----------------------------------------------------------------------------------------------------------------------
I. Cash Flows from Operating Activities:
1. Net income 22,355 19,521
2. Adjustments to reconcile net income to net cash provided by
operating activities--
Depreciation and amortization 19,673 19,148
Equity in earnings of affiliates, net of dividends received 2 -191
Deferred income taxes -3,382 -1,679
Loss on disposal and sales of tangible fixed assets 22 83
Changes in assets and liabilities--
Decrease in trade receivables 8,801 12,259
Decrease (increase) in inventories -14,126 295
Increase in finance receivables -8,102 -9,743
Increase (decrease) in trade payables 6,019 -9,830
Increase in accrued income taxes and accrued expenses
and other 3,792 7,839
Retirement benefit obligation, net 6,835 2,515
Other, net -2,012 14,142
---------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 39,877 54,359
---------------------------------------------------------------------------------------------------------------
II. Cash Flows from Investing Activities:
1. Proceeds from sales of plant and equipment 7 34
2. Expenditures for tangible fixed assets -18,657 -17,609
3. Payments for purchases of available-for-sale securities -25,043 -20,002
4. Proceeds from sales of available-for-sale securities 30,063 16,960
5. (Increase) decrease in investments in and advances to affiliates 14 -516
6. Decrease in time deposits 7,176 7,370
7. Other, net -1,533 -1,654
---------------------------------------------------------------------------------------------------------------
Net cash used in investing activities -7,973 -15,417
---------------------------------------------------------------------------------------------------------------
III. Cash Flows from Financing Activities:
1. Proceeds from long-term indebtedness 759 29,551
2. Repayment of long-term indebtedness -8,596 -5,601
3. Increase (decrease) in short-term borrowings, net 11,907 -32,249
4. Proceeds from issuance of long-term debt securities - 10,000
5. Repayment of long-term debt securities -5,000 -
6. Cash dividends paid -5,195 -5,087
7. Purchase of treasury stocks -85 -159
8. Other, net -194 -246
---------------------------------------------------------------------------------------------------------------
Net cash used in financing activities -6,404 -3,791
---------------------------------------------------------------------------------------------------------------
IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents 1,239 -2,261
---------------------------------------------------------------------------------------------------------------
V. Net Increase in Cash and Cash Equivalents 26,739 32,890
---------------------------------------------------------------------------------------------------------------
VI. Cash and Cash Equivalents at Beginning of Year 189,243 170,172
---------------------------------------------------------------------------------------------------------------
VII. Cash and Cash Equivalents at End of Period 215,982 203,062
---------------------------------------------------------------------------------------------------------------
9
6. SIGNIFICANT ACCOUNTING POLICIES (CONSOLIDATED)
1. ITEMS RELATING TO THE SCALE OF CONSOLIDATION AND THE APPLICATION OF THE
EQUITY METHOD
Number of consolidated subsidiaries: 334; non-consolidated subsidiaries: 37;
affiliated companies: 24
2. CONSOLIDATED ACCOUNTING POLICIES (SUMMARY)
(1) Principles of Consolidation
The consolidated financial statements include the accounts of Ricoh and its
consolidated subsidiaries. Investments in 20% to 50% owned companies when the
company has the ability to exercise significant influence are accounted for on
the equity basis. All significant inter-company balances and transactions have
been eliminated in consolidation.
(2) Securities
In conformity with SFAS No.115, securities are mainly classified as
available-for-sale securities. Available-for-sale securities are reported at
fair value with unrealized gains and losses, net of related taxes, excluded from
earnings and reported in accumulated other comprehensive income (loss).
The cost of the securities sold is computed based on the average cost of each
security held at the time of sale.
(3) Inventories
Inventories are mainly stated at the lower of average cost or market. Inventory
costs include raw materials, labor and manufacturing overheads.
(4) Plant and Equipment
Depreciation of plant and equipment is computed principally by using the
declining-balance method over the estimated useful lives. Most of the foreign
subsidiaries have adopted the straight-line method for computing depreciation.
Certain leased buildings, machinery and equipment are accounted for as capital
leases in conformity with SFAS No. 13, "Accounting for Leases."
(5) Goodwill and Other Intangible Assets
In conformity with SFAS No.142, Goodwill and intangible asset determined to have
an indefinite useful life are not amortized. SFAS No. 142 requires annual
impairment testing thereof.
(6) Use of Estimates
Management of the Company has made a number of estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues and expenses,
including impairment losses of long-lived assets and the disclosures of fair
value of financial instruments and contingent assets and liabilities, to prepare
these financial statements in conformity with generally accepted accounting
principles. Actual results could differ from those estimates.
10
-APPENDIX-
1. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Millions of yen)
-----------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Change excluding
June 30, 2003 June 30, 2002 Change % exchange impact %
-----------------------------------------------------------------------------------------------------------------------------
(Office Equipment)
Imaging Solutions:
Digital Imaging Systems 158,997 156,289 2,708 1.7 1,106 0.7
Percentage of net sales (%) 36.3 36.5
Domestic 65,894 70,950 -5,056 -7.1 -5,056 -7.1
Overseas 93,103 85,339 7,764 9.1 6,162 7.2
Other Imaging Systems 53,771 63,632 -9,861 -15.5 -10,993 -17.3
Percentage of net sales (%) 12.3 14.8
Domestic 19,282 22,406 -3,124 -13.9 -3,124 -13.9
Overseas 34,489 41,226 -6,737 -16.3 -7,869 -19.1
Total Imaging Solutions 212,768 219,921 -7,153 -3.3 -9,887 -4.5
Percentage of net sales (%) 48.6 51.3
Domestic 85,176 93,356 -8,180 -8.8 -8,180 -8.8
Overseas 127,592 126,565 1,027 0.8 -1,707 -1.3
------------------------------------------------------------------------------------------------------------------------------
Network Input/Output Systems:
Printing Systems 116,106 94,653 21,453 22.7 19,175 20.3
Percentage of net sales (%) 26.5 22.1
Domestic 52,458 40,108 12,350 30.8 12,350 30.8
Overseas 63,648 54,545 9,103 16.7 6,825 12.5
Other Input/Output Systems 11,421 15,863 -4,442 -28.0 -4,559 -28.7
Percentage of net sales (%) 2.7 3.7
Domestic 1,642 3,463 -1,821 -52.6 -1,821 -52.6
Overseas 9,779 12,400 -2,621 -21.1 -2,738 -22.1
Total Network Input/Output Systems 127,527 110,516 17,011 15.4 14,616 13.2
Percentage of net sales (%) 29.2 25.8
Domestic 54,100 43,571 10,529 24.2 10,529 24.2
Overseas 73,427 66,945 6,482 9.7 4,087 6.1
------------------------------------------------------------------------------------------------------------------------------
Network System Solutions 43,437 46,930 -3,493 -7.4 -3,505 -7.5
Percentage of net sales (%) 9.9 11.0
Domestic 42,667 46,285 -3,618 -7.8 -3,618 -7.8
Overseas 770 645 125 19.4 113 17.5
-----------------------------------------------------------------------------------------------------------------------------
Office Equipment Total 383,732 377,367 6,365 1.7 1,224 0.3
Percentage of net sales (%) 87.7 88.1
Domestic 181,943 183,212 -1,269 -0.7 -1,269 -0.7
Overseas 201,789 194,155 7,634 3.9 2,493 1.3
The Americas 78,908 83,895 -4,987 -5.9 528 0.6
Europe 97,613 82,608 15,005 18.2 4,291 5.2
Other 25,268 27,652 -2,384 -8.6 -2,326 -8.4
------------------------------------------------------------------------------------------------------------------------------
(Other Businesses)
Other Businesses 53,721 50,904 2,817 5.5 2,538 5.0
Percentage of net sales (%) 12.3 11.9
Domestic 42,392 41,632 760 1.8 760 1.8
Overseas 11,329 9,272 2,057 22.2 1,778 19.2
The Americas 583 276 307 111.2 348 126.1
Europe 1,006 652 354 54.3 242 37.1
Other 9,740 8,344 1,396 16.7 1,188 14.2
------------------------------------------------------------------------------------------------------------------------------
Grand Total 437,453 428,271 9,182 2.1 3,762 0.9
Percentage of net sales (%) 100.0 100.0
Domestic 224,335 224,844 -509 -0.2 -509 -0.2
Percentage of net sales (%) 51.3 52.5
Overseas 213,118 203,427 9,691 4.8 4,271 2.1
Percentage of net sales (%) 48.7 47.5
The Americas 79,491 84,171 -4,680 -5.6 876 1.0
Percentage of net sales (%) 18.2 19.7
Europe 98,619 83,260 15,359 18.4 4,533 5.4
Percentage of net sales (%) 22.5 19.4
Other 35,008 35,996 -988 -2.7 -1,138 -3.2
Percentage of net sales (%) 8.0 8.4
------------------------------------------------------------------------------------------------------------------------------
Each category includes the following product line:
Digital Imaging Systems Digital PPCs, color PPCs, digital duplicators and facsimile machines
Other Imaging Systems Analog PPCs, diazo copiers, and thermal paper
Printing Systems MFPs(multifunctional printers), laser printers and software
Other Input/Output Systems Optical discs and system scanners
Network System Solutions Personal computers, PC servers, network systems and network related software
Other Businesses Optical equipments, measuring equipments and semiconductors
Reference: Three months ended Three months ended Change
Exchange rate June 30, 2003 June 30, 2002
US$ 1 YEN118.52 YEN127.01 YEN-8.49
EURO 1 YEN134.67 YEN116.56 YEN18.11
A-1
2. FORECAST OF CONSOLIDATED QUARTERLY PERFORMANCE
(Billions of yen)
-----------------------------------------------------------------------------------------------------------------------------------
Three Three
months ended months ended Half year ended Year ended
June 30, 2003 Change Sept. 30, 2003 Change Sept. 30, 2003 Change March 31, 2004 Change
Results % Forecast % Forecast % Forecast %
-----------------------------------------------------------------------------------------------------------------------------------
Net sales 437.4 2.1 455.0 6.2 892.5 4.2 1,805.0 3.8
Gross profit 192.7 3.4 195.2 12.1 388.0 7.6 792.0 6.3
Operating income 38.4 7.1 35.0 37.9 73.5 19.8 151.0 13.0
Income before income taxes 37.3 15.6 33.6 43.9 71.0 27.5 145.5 17.8
Net income 22.3 14.5 19.1 36.7 41.5 23.8 85.0 17.2
-----------------------------------------------------------------------------------------------------------------------------------
Net income per share (yen) 30.04 - 25.70 - 55.74 - 114.16 -
-----------------------------------------------------------------------------------------------------------------------------------
Capital expenditure 18.6 - 18.9 - 37.5 - 75.0 -
Depreciation for tangible fixed assets 17.0 - 17.0 - 34.0 - 70.0 -
R&D expenditure 19.3 - 21.7 - 41.0 - 85.0 -
-----------------------------------------------------------------------------------------------------------------------------------
Exchange rate (Yen/US$) 118.52 - 116.00 - 117.26 - 116.63 -
Exchange rate (Yen/EURO) 134.67 - 130.00 - 132.34 - 131.17 -
------------------------------------------------- ---------------------------------------------------------------------------------
3. FORECAST OF CONSOLIDATED SALES BY PRODUCT CATEGORY
(Billions of yen)
-----------------------------------------------------------------------------------------------------------------------------------
Half year ended September 30, 2003 Year ended March 31, 2004
---------------------------------- -------------------------
Change Change Change Change
Forecast % Forecast(*) % Forecast % Forecast(*) %
-----------------------------------------------------------------------------------------------------------------------------------
(Office Equipment)
Imaging Solutions:
Digital Imaging Systems 313.0 1.2 309.1 -0.1 611.5 -2.5 608.0 -3.0
Domestic 126.0 -7.3 126.0 -7.3 241.0 -9.3 241.0 -9.3
Overseas 187.0 7.8 183.1 5.5 370.5 2.5 367.0 1.6
Other Imaging Systems 96.0 -20.6 94.5 -21.9 183.0 -21.4 181.5 -22.0
Domestic 34.0 -17.0 34.0 -17.0 67.0 -16.8 67.0 -16.8
Overseas 62.0 -22.5 60.5 -24.4 116.0 -23.8 114.5 -24.8
Total Imaging Solutions 409.0 -5.0 403.6 -6.2 794.5 -7.6 789.5 -8.2
Domestic 160.0 -9.5 160.0 -9.5 308.0 -11.0 308.0 -11.0
Overseas 249.0 -1.8 243.6 -3.9 486.5 -5.3 481.5 -6.2
-----------------------------------------------------------------------------------------------------------------------------------
Network Input/Output Systems:
Printing Systems 248.0 30.9 242.0 27.8 545.0 33.3 540.0 32.1
Domestic 107.0 30.5 107.0 30.5 232.0 30.7 232.0 30.7
Overseas 141.0 31.3 135.0 25.7 313.0 35.3 308.0 33.1
Other Input/Output Systems 27.0 -8.6 26.7 -9.6 51.5 -5.6 51.1 -6.3
Domestic 4.0 -32.9 4.0 -32.9 7.0 -30.7 7.0 -30.7
Overseas 23.0 -2.4 22.7 -3.7 44.5 0.1 44.1 -0.8
Total Network Input/Output Systems 275.0 25.6 268.7 22.7 596.5 28.7 591.1 27.6
Domestic 111.0 26.2 111.0 26.2 239.0 27.4 239.0 27.4
Overseas 164.0 25.2 157.7 20.4 357.5 29.6 352.1 27.7
-----------------------------------------------------------------------------------------------------------------------------------
Network System Solutions 94.5 -5.5 94.4 -5.6 187.0 -5.3 186.9 -5.4
Domestic 93.0 -5.8 93.0 -5.8 184.0 -5.6 184.0 -5.6
Overseas 1.5 15.6 1.4 7.9 3.0 15.0 2.9 11.2
-----------------------------------------------------------------------------------------------------------------------------------
Office Equipment Total 778.5 3.9 766.7 2.3 1,578.0 3.8 1,567.5 3.1
Domestic 364.0 0.1 364.0 0.1 731.0 0.3 731.0 0.3
Overseas 414.5 7.4 402.7 4.4 847.0 7.0 836.5 5.6
The Americas 169.0 -0.5 176.9 4.1 341.0 -0.5 356.8 4.2
Europe 197.5 20.1 176.7 7.5 403.0 15.3 373.5 6.8
Other 48.0 -6.7 49.1 -4.6 103.0 3.2 106.2 6.4
-----------------------------------------------------------------------------------------------------------------------------------
(Other Businesses)
Other Businesses 114.0 6.1 113.3 5.4 227.0 4.2 225.5 3.5
Domestic 87.0 1.1 87.0 1.1 169.0 1.0 169.0 1.0
Overseas 27.0 25.9 26.3 22.6 58.0 15.0 56.5 12.1
The Americas 1.0 97.6 1.1 117.4 3.0 118.7 3.2 133.2
Europe 2.5 43.8 2.3 32.3 6.0 22.4 5.5 12.2
Other 23.5 22.4 22.9 19.3 49.0 11.0 47.8 8.3
-----------------------------------------------------------------------------------------------------------------------------------
Grand Total 892.5 4.2 880.0 2.7 1,805.0 3.8 1,793.0 3.1
Domestic 451.0 0.3 451.0 0.3 900.0 0.4 900.0 0.4
Overseas 441.5 8.4 429.0 5.3 905.0 7.4 893.0 6.0
The Americas 170.0 -0.3 178.0 4.4 344.0 0.0 360.0 4.7
Europe 200.0 20.4 179.0 7.7 409.0 15.4 379.0 6.9
Other 71.5 1.2 72.0 1.9 152.0 5.6 154.0 7.0
-----------------------------------------------------------------------------------------------------------------------------------
* Excluding foreign exchange impact
A-2