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 August, 2004
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
-------------------------------------------------------------
(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
Managing Director
Executive Vice President
General Manager of the
Finance & Accounting Division
August 3, 2004
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RICOH
QUARTERLY REPORT
1st Quarter ended June 30, 2004
(Results for the Period from April 1, 2004 to June 30, 2004)
PERFORMANCE OUTLINE (CONSOLIDATED)
(Billions of yen)
-----------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Year ending
June 30, 2004 June 30, 2003 Change March 31, 2005 Change
Results Results Forecast
-----------------------------------------------------------------------------------------------------------------------
Domestic sales 233.3 224.3 4.0% 935.0 2.3%
Overseas sales 203.2 213.1 -4.6% 875.0 1.0%
Net sales 436.5 437.4 -0.2% 1,810.0 1.7%
Gross profit 189.1 192.7 -1.9% 785.0 2.5%
Operating income 39.3 38.4 2.3% 175.0 16.7%
Income before income taxes 41.3 37.3 10.7% 165.0 15.3%
Net income 24.8 22.3 11.4% 95.0 3.5%
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Exchange rate (Yen/US$) 109.65 118.52 -8.87 106.16 -6.93
Exchange rate (Yen/EURO) 132.17 134.67 -2.50 130.54 -2.11
-----------------------------------------------------------------------------------------------------------------------
Net income per share (yen) 33.69 30.04 3.65 128.58 4.95
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Cash flows from operating activities 42.2 39.8 2.3 -- --
Cash flows from investing activities -10.8 -7.9 -2.9 -- --
Cash flows from financing activities -21.2 -6.4 -14.8 -- --
Cash and cash equivalents at end of period 215.4 215.9 -0.5 -- --
-----------------------------------------------------------------------------------------------------------------------
Capital expenditures 18.6 18.6 -0.0 74.5 -1.0
Depreciation for tangible fixed assets 15.9 17.0 -1.0 69.0 1.3
R&D expenditures 24.3 19.3 4.9 100.0 7.4
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June 30, 2004 March 31, 2004 Change
------------------------------------------------------------------------------
Total assets 1,855.7 1,852.7 2.9
Shareholders' equity 812.9 795.1 17.7
Interest-bearing debt 423.7 432.7 -8.9
------------------------------------------------------------------------------
Equity ratio (%) 43.8 42.9 0.9
------------------------------------------------------------------------------
Shareholder's equity per share (yen) 1,100.24 1,076.11 24.13
------------------------------------------------------------------------------
RICOH COMPANY, LTD.
* The Company bases the forecast estimates for March 31, 2005 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 2005 (the three months
period from April 1 to June 30, 2004) decreased by 0.2% as compared to the
previous corresponding period, to Yen 436.5 billion. During this quarter, the
average yen exchange rates were at Yen 109.65 against the U.S. dollar (an
appreciation of approximately 7.5% as compared to the previous corresponding
period) and Yen 132.17 against the Euro (an appreciation of approximately 1.9%
as compared to the previous corresponding period). Net sales would rise 1.3%
excluding impacts of such foreign currency exchange fluctuations.
In Japan, sales of printing systems such as MFPs (multifunctional printers) and
laser printers, especially color model, increased reflecting the market needs of
the shift from standalone, analog products to networking and color model. In
addition, solutions business such as support and service continued to be
favorable. On the other hand, sales of optical disc and semiconductor business
decreased owing to sluggish period of demand cycle. Overall domestic sales
consequently increased by 4.0% as compared to the previous corresponding period.
As for overseas, sales of product categories such as color PPCs (plain paper
copiers), MFPs and laser printers increased in each region. Although sales in
the Americas decreased by 1.4% as compared to the previous corresponding period
due to yen's appreciation against the U.S. dollar (6.4% increase excluding
currency exchange impact), sales in Europe increased by 1.7% with steady growth
of sales volume. And sales in other region such as China, Asian and Oceania
countries decreased by 30.0%, owing to decline of optical disks demand and the
sale of certain consolidated subsidiaries in optical related business. As a
result, overall overseas sales decreased by 4.6%, though it would have decreased
by 1.6% excluding impacts of the currency exchange fluctuations.
Gross profit decreased by 1.9% to Yen 189.1 billion due to yen's appreciation,
in spite of increased sales for high-margin, high-value-added products and
ongoing cost-cutting activities such as continuous production improvement and so
on.
Although strategic spending on research and development increased Yen 4.9
billion as compared to the previous corresponding period, to Yen 24.3 billion,
pension cost was, especially, reduced by the remodel of pension system in Japan
in the previous fiscal year. As a result, selling, general and administrative
expenses decreased by 2.9% to Yen 149.7 billion. Consequently, operating income
increased by 2.3% as compared to the previous corresponding period, to Yen 39.3
billion.
Other (income) expense improved Yen 3.0 billion, especially due to the interest
expense decrease resulted from reduced interest-bearing debt and foreign
currency exchange gains on the contrary to the exchange loss in the previous
corresponding period.
As a result, income before income taxes increased by 10.7% as compared to the
previous corresponding period, to Yen 41.3 billion.
The expanded amount of tax exemption on the research and development expenses
and spending on Information Technology caused tax expense reduced. As a result,
net income increased by 11.4% as compared to the previous corresponding period,
to Yen 24.8 billion.
2
*Conditions by Product Line
Office Equipment (Sales up 0.1% to Yen 383.9 billion)
-----------------------------------------------------
Customer demand has shift more and more from standalone analog products to
digital, networking, color and high-speed models in Japan and overseas market
place. Ricoh has enforced solution proposal to customers for the optimization of
their total printing cost, in order to support their efficient management of TDV
(Total Document Volume). As a result, sales volume of color PPCs and Printing
Systems category such as MFPs and laser printers continued to grow, though sales
of Imaging Solutions category decreased. Sales of Network System Solutions
category such as support and service increased, however the sales volume of
optical disc business decreased due to sluggish period of demand cycle and the
in-between period of model change. In addition, yen's appreciation impacted. The
total sales of Office Equipment increased by 0.1% as compared to the previous
corresponding periods, to Yen 383.9 billion.
Imaging Solutions (Sales down 14.6% to Yen 181.6 billion)
---------------------------------------------------------
Digital Imaging Systems
- Shift from standalone products to MFPs all over the world caused the
sales decline.
- The sales of color PPCs increased, with new offering to meet growing
customer demand.
- As a result, sales in this category decreased by 12.3% as compared to the
previous corresponding period.
Other Imaging Systems
- Sales were down by 21.4% due to the shift from analog products to MFPs
and/or color products.
Network Input/Output Systems (Sales up 23.4% to Yen 157.3 billion)
------------------------------------------------------------------
Printing Systems
- Constant offering new products to cope with the demand shift to networked
and color models in Japan and overseas brought about continuous sales
increase.
MFPs: Imagio Neo 352 and Imagio Neo 602 in Japan
Aficio 2035e/2045e series and Aficio 2105/2090 series
overseas
Color MFPs: Imagio Neo C245 and Imagio Neo C325 in Japan
Aficio 2232C/2238C series overseas
- Sales of laser printers continued to increase.
- The sales volume of office use color printer with Ricoh's original
'GEL JET' technology and strategic low price, launched in February
2004, steadily increased.
- As a result, sales of this category increased by 30.9%.
Other Input/Output Systems
Sales decreased by 52.9% mainly due to model change influence in the
optical discs business in Japan and overseas.
Network System Solutions (Sales up 3.6% to Yen 44.9 billion)
------------------------------------------------------------
- Solution business such as support and service continued to increase, due
primarily to customer acceptance of our solution proposal for the
optimization of their total printing cost.
Consequently, overall sales of Office Equipment segment increased by 0.1% as
compared to the previous corresponding period. Operating income increased by
3.9% to Yen 50.1 billion. It can be resulted from the sales increase of Printing
Systems category, the continuous offering of new products and ongoing
cost-cutting activities by production improvement and so on.
Other Businesses (Sales down 2.1% to Yen 52.5 billion)
------------------------------------------------------
Sales in this segment decreased by 2.1% as compared to the previous
corresponding period, to Yen 52.5 billion, due primarily to the sale of certain
consolidated subsidiaries in optical related business, and sluggish demand cycle
for semiconductor. As a result, overall operating income for Other Businesses
segment decreased to Yen 1.0 billion.
*Cash Flows (Three months from April 1, 2004 to June 30, 2004)
Net cash provided by operating activities increased Yen 2.3 billion as compared
to the previous corresponding period, to Yen 42.2 billion. It was due to the
fact that net income increased as compared to the previous corresponding period
and the decrease of trade receivable due to sales growth in the fourth quarter
of fiscal 2004.
Net cash used in investing activities increased Yen 2.9 billion as compared to
the previous corresponding period, to Yen 10.8 billion, due primarily to capital
expenditures spending for new production lines and production development.
As a result, free cash flow generated by operating and investing activities
totaled Yen 31.3 billion, no significant change as compared to the previous
corresponding period.
Net cash used in financing activities amounted to Yen 21.2 billion due primarily
to decrease of interest-bearing debt and payment of dividends.
As a result, cash and cash equivalents at the end of this first quarter were
Yen 12.4 billion higher than the end of the preceding fiscal year, standing at
Yen 215.4 billion.
3
*Forecast for the entire fiscal year
As for the forecast of business results for the fiscal year ended March 31,
2005, we maintain our exchange rates assumption of Yen 105.00 against the U.S.
dollar and of Yen 130.00 against the Euro in and after the second quarter as
announced in April 2004.
And we maintain our forecast of sales as announced in April 2004. We intend to
implement business strategies such as continuous and effective offering of new
products and so on in order to continue to grow in spite of fluctuations of
market demand and exchange rate.
As for income, we maintain our forecast of operation income, income before
income tax and net income as announced in April 2004, although the results of
first quarter was more than our forecast at the beginning of this fiscal year
and we intend to improve profitability still more.
Our performance forecasts for fiscal 2005 are as follows:
Exchange Rate Assumptions for the full year ending March 31, 2005
US$ 1 = Yen 106.16 (Yen 113.09 in previous fiscal year)
EURO 1 = Yen 130.54 (Yen 132.65 in previous fiscal year)
(Billions of yen)
--------------------------------------------------------------------------------
Year ending Year ended
March 31, 2005 March 31, 2004
Forecast Results Change
--------------------------------------------------------------------------------
Domestic sales 935.0 914.0 2.3%
Overseas sales 875.0 866.1 1.0%
Net sales 1,810.0 1,780.2 1.7% (*1)
Gross profit 785.0 765.6 2.5%
Operating income 175.0 150.0 16.7%
Income before income taxes 165.0 143.0 15.3%
Net income 95.0 91.7 3.5% (*2)
--------------------------------------------------------------------------------
Notes:
*1...Net sales would be eleventh consecutive year of growth.
*2...Net income would be thirteenth consecutive year of growth and eleventh
consecutive year of record high.
* Ricoh bases the forecast estimates for March 31, 2005 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, 2004 (U.S. GAAP
FINANCIAL INFORMATION)
1. ITEMS RELATING TO 1ST QUARTER FINANCIAL STATEMENTS
(1) No change in accounting method has been made.
(2) Change relating to the scale of consolidation and the application of the
equity method:
Consolidated subsidiaries: No addition; 20 removals
Companies accounted for by the equity method: 1 addition; 1 removal
2. RESULTS FOR THE PERIOD FROM APRIL 1, 2004 TO JUNE 30, 2004
(1) Operating Results (Millions of yen)
---------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Year ended
June 30, 2004 June 30, 2003 March 31, 2004
---------------------------------------------------------------------------------------------------------------
Net sales 436,550 437,453 1,780,245
(% change from the previous corresponding period) -0.2 2.1 2.4
Operating income 39,387 38,484 150,006
(% change from the previous corresponding period) 2.3 7.1 12.2
Income before income taxes 41,319 37,317 143,063
(% change from the previous corresponding period) 10.7 15.6 15.9
Net income 24,894 22,355 91,766
(% change from the previous corresponding period) 11.4 14.5 26.6
Net income per share-basic (yen) 33.69 30.04 123.63
Net income per share-diluted (yen) -- -- --
---------------------------------------------------------------------------------------------------------------
(2) Financial Position (Millions of yen)
-----------------------------------------------------------------------------------------------------
June 30, 2004 June 30, 2003 March 31, 2004
-----------------------------------------------------------------------------------------------------
Total assets 1,855,745 1,924,631 1,852,793
Shareholders' equity 812,915 685,730 795,131
Equity ratio (%) 43.8 35.6 42.9
Equity per share (yen) 1,100.24 920.97 1,076.11
-----------------------------------------------------------------------------------------------------
Cash Flow (Millions of yen)
---------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Year ended
June 30, 2004 June 30, 2003 March 31, 2004
---------------------------------------------------------------------------------------------------------------
Cash flows from operating activities 42,268 39,877 154,911
Cash flows from investing activities -10,899 -7,973 -63,383
Cash flows from financing activities -21,294 -6,404 -74,835
Cash and cash equivalents at end of period 215,467 215,982 203,039
---------------------------------------------------------------------------------------------------------------
3. FORECAST OF OPERATING RESULTS FROM APRIL 1, 2004 TO MARCH 31, 2005
Though we maintain our forecast of each period as announced in April 2004, we
revised the forecast of net income per share (Consolidated) for the reason that
average number of share outstanding has changed with purchase of treasury
stocks.
(Millions of yen)
--------------------------------------------------------------------------------
Half year ending Year ending
September 30, 2004 March 31, 2005
--------------------------------------------------------------------------------
Net sales 895,000 1,810,000
Operating income 78,000 175,000
Income before income taxes 74,500 165,000
Net income 43,800 95,000
--------------------------------------------------------------------------------
Note: Net income per share (Consolidated) 128.58 yen
In accordance with Japanese regulations, Ricoh has issued forecast for its
financial results for the fiscal year ending March 2005. 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, 2004 June 30, 2003 Change %
------------------------------------------------------------------------------------------------
Net sales 436,550 437,453 -903 -0.2
Cost of sales 247,379 244,701 2,678 1.1
Percentage of net sales (%) 56.7 55.9
Gross Profit 189,171 192,752 -3,581 -1.9
Percentage of net sales (%) 43.3 44.1
Selling, general and administrative
expenses 149,784 154,268 -4,484 -2.9
Percentage of net sales (%) 34.3 35.3
Operating income 39,387 38,484 903 2.3
Percentage of net sales (%) 9.0 8.8
Other (income) expense
Interest and dividend income 603 696 -93 -13.4
Percentage of net sales (%) 0.1 0.1
Interest expense 1,230 1,524 -294 -19.3
Percentage of net sales (%) 0.3 0.3
Other, net -2,559 339 -2,898 --
Percentage of net sales (%) -0.7 0.1
Income before income taxes, equity
income and minority interests 41,319 37,317 4,002 10.7
Percentage of net sales (%) 9.5 8.5
Provision for income taxes 15,919 14,062 1,857 13.2
Percentage of net sales (%) 3.6 3.2
Minority interests in earnings of
subsidiaries 1,118 1,352 -234 -17.3
Percentage of net sales (%) 0.3 0.3
Equity in earnings of affiliates 612 452 160 35.4
Percentage of net sales (%) 0.1 0.1
Net income 24,894 22,355 2,539 11.4
Percentage of net sales (%) 5.7 5.1
------------------------------------------------------------------------------------------------
2-1. CONSOLIDATED SALES BY PRODUCT CATEGORY (Millions of yen)
------------------------------------------------------------------------------------------------
Three months ended Three months ended
June 30, 2004 June 30, 2003 Change %
------------------------------------------------------------------------------------------------
(Office Equipment)
Imaging Solutions:
Digital Imaging Systems 139,383 158,997 -19,614 -12.3
Percentage of net sales (%) 31.9 36.3
Other Imaging Systems 42,246 53,771 -11,525 -21.4
Percentage of net sales (%) 9.7 12.3
Total Imaging Solutions 181,629 212,768 -31,139 -14.6
Percentage of net sales (%) 41.6 48.6
------------------------------------------------------------------------------------------------
Network Input/Output Systems:
Printing Systems 151,970 116,106 35,864 30.9
Percentage of net sales (%) 34.8 26.5
Other Input/Output Systems 5,385 11,421 -6,036 -52.9
Percentage of net sales (%) 1.2 2.7
Total Network Input/Output Systems 157,355 127,527 29,828 23.4
Percentage of net sales (%) 36.0 29.2
------------------------------------------------------------------------------------------------
Network System Solutions 44,989 43,437 1,552 3.6
Percentage of net sales (%) 10.4 9.9
------------------------------------------------------------------------------------------------
Office Equipment Total 383,973 383,732 241 0.1
Percentage of net sales (%) 88.0 87.7
------------------------------------------------------------------------------------------------
(Other Businesses)
Other Businesses 52,577 53,721 -1,144 -2.1
Percentage of net sales (%) 12.0 12.3
------------------------------------------------------------------------------------------------
Grand Total 436,550 437,453 -903 -0.2
Percentage of net sales (%) 100.0 100.0
------------------------------------------------------------------------------------------------
2-2. CONSOLIDATED SALES BY GEOGRAPHIC AREA (Millions of yen)
------------------------------------------------------------------------------------------------
Three months ended Three months ended
June 30, 2004 June 30, 2003 Change %
------------------------------------------------------------------------------------------------
(Domestic) 233,312 224,335 8,977 4.0
Percentage of net sales (%) 53.4 51.3
(Overseas) 203,238 213,118 -9,880 -4.6
Percentage of net sales (%) 46.6 48.7
The Americas 78,401 79,491 -1,090 -1.4
Percentage of net sales (%) 18.0 18.2
Europe 100,323 98,619 1,704 1.7
Percentage of net sales (%) 23.0 22.5
Other 24,514 35,008 -10,494 -30.0
Percentage of net sales (%) 5.6 8.0
Grand Total 436,550 437,453 -903 -0.2
Percentage of net sales (%) 100.0 100.0
------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 109.65 Yen 118.52
EURO 1 Yen 132.17 Yen 134.67
6
3. SEGMENT INFORMATION
(1) Industry Segment Information (Millions of yen)
-----------------------------------------------------------------------------------------------
Three months ended Three months ended
June 30, 2004 June 30, 2003 Change %
-----------------------------------------------------------------------------------------------
OFFICE EQUIPMENT:
Net sales:
Unaffiliated customers 383,973 383,732 241 0.1
Intersegment -- -- -- --
Total 383,973 383,732 241 0.1
-----------------------------------------------------------------------------------------------
Operating expenses 333,863 335,487 -1,624 -0.5
-----------------------------------------------------------------------------------------------
Operating income 50,110 48,245 1,865 3.9
Operating income on office
equipment sales(%) 13.1 12.6
-----------------------------------------------------------------------------------------------
OTHER BUSINESSES:
Net sales:
Unaffiliated customers 52,577 53,721 -1,144 -2.1
Intersegment 668 627 41 6.5
Total 53,245 54,348 -1,103 -2.0
-----------------------------------------------------------------------------------------------
Operating expenses 52,158 51,936 222 0.4
-----------------------------------------------------------------------------------------------
Operating income 1,087 2,412 -1,325 -54.9
Operating income on sales in
other businesses (%) 2.0 4.4
-----------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -668 -627 -41 --
Total -668 -627 -41 --
-----------------------------------------------------------------------------------------------
Operating expenses:
Intersegment -678 -647 -31 --
Corporate 11,820 12,193 -373 --
Total 11,142 11,546 -404 --
-----------------------------------------------------------------------------------------------
Operating income -11,810 -12,173 363 --
-----------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
Unaffiliated customers 436,550 437,453 -903 -0.2
Intersegment -- -- -- --
Total 436,550 437,453 -903 -0.2
-----------------------------------------------------------------------------------------------
Operating expenses 397,163 398,969 -1,806 -0.5
-----------------------------------------------------------------------------------------------
Operating income 39,387 38,484 903 2.3
Operating income on
consolidated net sales(%) 9.0 8.8
-----------------------------------------------------------------------------------------------
(2) Geographic Segment Information (Millions of yen)
-----------------------------------------------------------------------------------------------
Three months ended Three months ended
June 30, 2004 June 30, 2003 Change %
-----------------------------------------------------------------------------------------------
JAPAN:
Net sales:
External customers 239,663 238,338 1,325 0.6
Intersegment 96,410 97,074 -664 -0.7
Total 336,073 335,412 661 0.2
-----------------------------------------------------------------------------------------------
Operating expenses 304,421 301,568 2,853 0.9
-----------------------------------------------------------------------------------------------
Operating income 31,652 33,844 -2,192 -6.5
Operating income on sales
in Japan(%) 9.4 10.1
-----------------------------------------------------------------------------------------------
THE AMERICAS:
Net sales:
External customers 76,632 77,534 -902 -1.2
Intersegment 1,295 1,582 -287 -18.1
Total 77,927 79,116 -1,189 -1.5
-----------------------------------------------------------------------------------------------
Operating expenses 76,053 76,823 -770 -1.0
-----------------------------------------------------------------------------------------------
Operating income 1,874 2,293 -419 -18.3
Operating income on sales in
the Americas(%) 2.4 2.9
-----------------------------------------------------------------------------------------------
EUROPE:
Net sales:
External customers 100,626 98,763 1,863 1.9
Intersegment 941 1,056 -115 -10.9
Total 101,567 99,819 1,748 1.8
-----------------------------------------------------------------------------------------------
Operating expenses 95,414 94,329 1,085 1.2
-----------------------------------------------------------------------------------------------
Operating income 6,153 5,490 663 12.1
Operating income on sales
in Europe(%) 6.1 5.5
-----------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 19,629 22,818 -3,189 -14.0
Intersegment 21,010 25,115 -4,105 -16.3
Total 40,639 47,933 -7,294 -15.2
-----------------------------------------------------------------------------------------------
Operating expenses 38,239 45,580 -7,341 -16.1
-----------------------------------------------------------------------------------------------
Operating income 2,400 2,353 47 2.0
Operating income on sales
in other(%) 5.9 4.9
-----------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -119,656 -124,827 5,171 --
Total -119,656 -124,827 5,171 --
-----------------------------------------------------------------------------------------------
Operating expenses: -116,964 -119,331 2,367 --
-----------------------------------------------------------------------------------------------
Operating income -2,692 -5,496 2,804 --
-----------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 436,550 437,453 -903 -0.2
Intersegment -- -- -- --
Total 436,550 437,453 -903 -0.2
-----------------------------------------------------------------------------------------------
Operating expenses 397,163 398,969 -1,806 -0.5
-----------------------------------------------------------------------------------------------
Operating income 39,387 38,484 903 2.3
Operating income on
consolidated net sales(%) 9.0 8.8
-----------------------------------------------------------------------------------------------
7
4. CONSOLIDATED BALANCE SHEETS
Assets (Millions of yen)
-------------------------------------------------------------------------------------------
June 30, 2004 March 31, 2004 Change
-------------------------------------------------------------------------------------------
Current Assets
Cash and time deposits 217,598 204,001 13,597
Trade receivables 395,163 422,244 -27,081
Marketable securities 45,122 45,124 -2
Inventories 150,577 145,369 5,208
Other current assets 54,656 55,079 -423
Total Current Assets 863,116 871,817 -8,701
Fixed Assets
Tangible fixed assets 237,454 238,712 -1,258
Finance receivable 527,982 514,047 13,935
Other Investments 227,193 228,217 -1,024
Total Fixed Assets 992,629 980,976 11,653
-------------------------------------------------------------------------------------------
Total Assets 1,855,745 1,852,793 2,952
-------------------------------------------------------------------------------------------
Note:
Contents of cash and time deposits:
Cash and cash equivalents 215,467 203,039
Time deposits 2,131 962
Liabilities and Shareholders' Investment (Millions of yen)
-------------------------------------------------------------------------------------------
June 30, 2004 March 31, 2004 Change
-------------------------------------------------------------------------------------------
Current Liabilities
Trade payables 283,044 297,672 -14,628
Short-term borrowings 183,217 151,162 32,055
Other current liabilities 163,113 158,594 4,519
Total Current Liabilities 629,374 607,428 21,946
Fixed Liabilities
Long-term indebtedness 240,564 281,570 -41,006
Retirement benefit obligation 85,690 83,492 2,198
Other fixed liabilities 37,429 36,295 1,134
Total Fixed Liabilities 363,683 401,357 -37,674
-------------------------------------------------------------------------------------------
Total Liabilities 993,057 1,008,785 -15,728
-------------------------------------------------------------------------------------------
Minority Interest 49,773 48,877 896
-------------------------------------------------------------------------------------------
Shareholders' Investment
Common stock 135,364 135,364 --
Additional paid-in capital 186,599 186,599 0
Retained earnings 533,654 515,372 18,282
Accumulated other comprehensive income (loss) -30,673 -30,272 -401
Treasury stock -12,029 -11,932 -97
Total Shareholders' Investment 812,915 795,131 17,784
-------------------------------------------------------------------------------------------
Total Liabilities and Shareholders' Investment 1,855,745 1,852,793 2,952
-------------------------------------------------------------------------------------------
Note: Other comprehensive income;
Net unrealized holding gains on
available-for-sale securities 4,210 4,026 184
Pension liability adjustments -17,595 -14,863 -2,732
Net unrealized gains (losses)
on derivative instruments -17 -24 7
Cumulative translation adjustments -17,271 -19,411 2,140
Reference: Exchange rate June 30, 2004 March 31, 2004
US$ 1 Yen 108.43 Yen 105.69
EURO 1 Yen 131.06 Yen 128.88
8
5. CONSOLIDATED STATEMENTS OF CASH FLOW
(Millions of yen)
------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
June 30, 2004 June 30, 2003
------------------------------------------------------------------------------------------------------------------
I. Cash Flows from Operating Activities:
1. Net income 24,894 22,355
2. Adjustments to reconcile net income to net cash
provided by operating activities--
Depreciation and amortization 18,790 19,673
Equity in earnings of affiliates, net of dividends received -158 2
Deferred income taxes 2,771 -3,382
Loss on disposal and sales of tangible fixed assets 17 22
Changes in assets and liabilities--
Decrease in trade receivables 23,735 8,801
Increase in inventories -7,841 -14,126
Increase in finance receivables -13,546 -8,102
(Decrease) Increase in trade payables -11,390 6,019
Increase in accrued income taxes and
accrued expenses and other 3,074 3,792
Retirement benefit obligation, net -429 6,835
Other, net 2,351 -2,012
------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 42,268 39,877
------------------------------------------------------------------------------------------------------------------
II. Cash Flows from Investing Activities:
1. Proceeds from sales of plant and equipment 535 7
2. Expenditures for tangible fixed assets -18,647 -18,657
3. Payments for purchases of available-for-sale securities -137 -25,043
4. Proceeds from sales of available-for-sale securities 5 30,063
5. (Increase) Decrease in time deposits -1,182 7,176
6. Other, net 8,527 -1,519
------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities -10,899 -7,973
------------------------------------------------------------------------------------------------------------------
III. Cash Flows from Financing Activities:
1. Proceeds from long-term indebtedness 14,734 759
2. Repayment of long-term indebtedness -18,929 -8,596
3. (Decrease) Increase in short-term borrowings, net -342 11,907
4. Proceeds from issuance of long-term debt securities 1,000 --
5. Repayment of long-term debt securities -10,000 -5,000
6. Cash dividends paid -7,405 -5,195
7. Purchase of treasury stocks -98 -85
8. Other, net -254 -194
------------------------------------------------------------------------------------------------------------------
Net cash used in financing activities -21,294 -6,404
------------------------------------------------------------------------------------------------------------------
IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents -122 1,239
------------------------------------------------------------------------------------------------------------------
V. Net Increase in Cash and Cash Equivalents 9,953 26,739
------------------------------------------------------------------------------------------------------------------
VI. Cash and Cash Equivalents at Beginning of Year 203,039 189,243
VII. Adjustment for Change of Fiscal Period on Consolidated Subsidiaries 2,475 --
------------------------------------------------------------------------------------------------------------------
VIII. Cash and Cash Equivalents at End of Period 215,467 215,982
------------------------------------------------------------------------------------------------------------------
9
6. SIGNIFICANT ACCOUNTING POLICIES (CONSOLIDATED)
1. CHANGE RELATING TO THE SCALE OF CONSOLIDATION AND THE APPLICATION OF THE
EQUITY METHOD FROM APRIL 1, 2004 TO JUNE 30, 2004.
Consolidated subsidiaries:
No addition
20 removals including HANIMEX AUSTRALASIA PTY LTD.
Companies accounted for by the equity method:
Addition: TRIANGLE SPIRIT CORPORATION.
Removal: FOTO ISLAND (NSW) PTY. LTD.
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. Certain overseas subsidiaries of the company
changed the fiscal year end from December 31 to March 31, at the beginning of
fiscal 2005. As a result, retained earnings increased by Yen 777 million and
other comprehensive income (loss) decreased by Yen 1,665 million.
(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, 2004 June 30, 2003 Change % exchange impact %
------------------------------------------------------------------------------------------------------------------------------
(Office Equipment)
Imaging Solutions:
Digital Imaging Systems 139,383 158,997 -19,614 -12.3 -16,323 -10.3
Percentage of net sales (%) 31.9 36.3
Domestic 59,106 65,894 -6,788 -10.3 -6,788 -10.3
Overseas 80,277 93,103 -12,826 -13.8 -9,535 -10.2
Other Imaging Systems 42,246 53,771 -11,525 -21.4 -10,775 -20.0
Percentage of net sales (%) 9.7 12.3
Domestic 15,995 19,282 -3,287 -17.0 -3,287 -17.0
Overseas 26,251 34,489 -8,238 -23.9 -7,488 -21.7
Total Imaging Solutions 181,629 212,768 -31,139 -14.6 -27,098 -12.7
Percentage of net sales (%) 41.6 48.6
Domestic 75,101 85,176 -10,075 -11.8 -10,075 -11.8
Overseas 106,528 127,592 -21,064 -16.5 -17,023 -13.3
------------------------------------------------------------------------------------------------------------------------------
Network Input/Output Systems:
Printing Systems 151,970 116,106 35,864 30.9 38,072 32.8
Percentage of net sales (%) 34.8 26.5
Domestic 66,715 52,458 14,257 27.2 14,257 27.2
Overseas 85,255 63,648 21,607 33.9 23,815 37.4
Other Input/Output Systems 5,385 11,421 -6,036 -52.9 -5,996 -52.5
Percentage of net sales (%) 1.2 2.7
Domestic 939 1,642 -703 -42.8 -703 -42.8
Overseas 4,446 9,779 -5,333 -54.5 -5,293 -54.1
Total Network Input/Output Systems 157,355 127,527 29,828 23.4 32,076 25.2
Percentage of net sales (%) 36.0 29.2
Domestic 67,654 54,100 13,554 25.1 13,554 25.1
Overseas 89,701 73,427 16,274 22.2 18,522 25.2
------------------------------------------------------------------------------------------------------------------------------
Network System Solutions 44,989 43,437 1,552 3.6 1,581 3.6
Percentage of net sales (%) 10.4 9.9
Domestic 43,577 42,667 910 2.1 910 2.1
Overseas 1,412 770 642 83.4 671 87.1
------------------------------------------------------------------------------------------------------------------------------
Office Equipment Total 383,973 383,732 241 0.1 6,559 1.7
Percentage of net sales (%) 88.0 87.7
Domestic 186,332 181,943 4,389 2.4 4,389 2.4
Overseas 197,641 201,789 -4,148 -2.1 2,170 1.1
The Americas 78,225 78,908 -683 -0.9 5,503 7.0
Europe 99,511 97,613 1,898 1.9 1,417 1.5
Other 19,905 25,268 -5,363 -21.2 -4,750 -18.8
------------------------------------------------------------------------------------------------------------------------------
(Other Businesses)
Other Businesses 52,577 53,721 -1,144 -2.1 -951 -1.8
Percentage of net sales (%) 12.0 12.3
Domestic 46,980 42,392 4,588 10.8 4,588 10.8
Overseas 5,597 11,329 -5,732 -50.6 -5,539 -48.9
The Americas 176 583 -407 -69.8 -393 -67.4
Europe 812 1,006 -194 -19.3 -181 -18.0
Other 4,609 9,740 -5,131 -52.7 -4,965 -51.0
------------------------------------------------------------------------------------------------------------------------------
Grand Total 436,550 437,453 -903 -0.2 5,608 1.3
Percentage of net sales (%) 100.0 100.0
Domestic 233,312 224,335 8,977 4.0 8,977 4.0
Percentage of net sales (%) 53.4 51.3
Overseas 203,238 213,118 -9,880 -4.6 -3,369 -1.6
Percentage of net sales (%) 46.6 48.7
The Americas 78,401 79,491 -1,090 -1.4 5,110 6.4
Percentage of net sales (%) 18.0 18.2
Europe 100,323 98,619 1,704 1.7 1,236 1.3
Percentage of net sales (%) 23.0 22.5
Other 24,514 35,008 -10,494 -30.0 -9,715 -27.8
Percentage of net sales (%) 5.6 8.0
------------------------------------------------------------------------------------------------------------------------------
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
Exchange rate June 30, 2004 June 30, 2003 Change
US$ 1 Yen 109.65 Yen 118.52 Yen -8.87
EURO 1 Yen 132.17 Yen 134.67 Yen -2.50
A1
2. FORECAST OF CONSOLIDATED PERFORMANCE
(Billions of yen)
----------------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ending Half year ending Year ending
June 30, 2004 Change Sept. 30, 2004 Change Sept. 30, 2004 Change March 31, 2005 Change
Results % Forecast % Forecast % Forecast %
----------------------------------------------------------------------------------------------------------------------------------
Net sales 436.5 -0.2 458.4 1.7 895.0 0.8 1,810.0 1.7
Gross profit 189.1 -1.9 197.6 1.2 386.8 -0.3 785.0 2.5
Operating income 39.3 2.3 38.6 -0.4 78.0 1.0 175.0 16.7
Income before income taxes 41.3 10.7 33.1 -2.7 74.5 4.3 165.0 15.3
Net income 24.8 11.4 18.9 -5.0 43.8 3.6 95.0 3.5
----------------------------------------------------------------------------------------------------------------------------------
Net income per share (yen) 33.69 -- 25.59 -- 59.28 -- 128.58 --
----------------------------------------------------------------------------------------------------------------------------------
Capital expenditure 18.6 -- 18.3 -- 37.0 -- 74.5 --
Depreciation for tangible fixed
assets 15.9 -- 18.0 -- 34.0 -- 69.0 --
R&D expenditure 24.3 -- 25.6 -- 50.0 -- 100.0 --
----------------------------------------------------------------------------------------------------------------------------------
Exchange rate (Yen/US$) 109.65 -- 105.00 -- 107.33 -- 106.16 --
Exchange rate (Yen/EURO) 132.17 -- 130.00 -- 131.09 -- 130.54 --
----------------------------------------------------------------------------------------------------------------------------------
3. FORECAST OF CONSOLIDATED SALES BY PRODUCT CATEGORY
(Billions of yen)
----------------------------------------------------------------------------------------------------------------------------------
Half year ending September 30, 2004 Year ending March 31, 2005
--------------------------------------------- -------------------------------------------
Change Change Change Change
Forecast % Forecast(*) % Forecast % Forecast(*) %
----------------------------------------------------------------------------------------------------------------------------------
(Office Equipment)
Imaging Solutions:
Digital Imaging Systems 275.3 -10.9 282.7 -8.6 537.0 -11.4 547.0 -9.8
Domestic 114.2 -8.5 114.2 -8.5 225.0 -11.4 225.0 -11.4
Overseas 161.1 -12.6 168.5 -8.6 312.0 -11.5 322.0 -8.6
Other Imaging Systems 83.7 -20.9 86.2 -18.6 157.3 -20.2 160.5 -18.7
Domestic 30.2 -17.3 30.2 -17.3 59.5 -15.9 59.5 -15.9
Overseas 53.5 -22.9 56.0 -19.4 97.8 -22.7 101.0 -20.2
Total Imaging Solutions 359.1 -13.5 368.9 -11.1 694.4 -13.6 707.5 -12.0
Domestic 144.4 -10.5 144.4 -10.5 284.5 -12.4 284.5 -12.4
Overseas 214.7 -15.4 224.5 -11.6 409.9 -14.4 423.0 -11.7
----------------------------------------------------------------------------------------------------------------------------------
Network Input/Output Systems:
Printing Systems 307.6 31.8 315.6 35.2 654.7 28.6 666.8 30.9
Domestic 130.1 29.6 130.1 29.6 277.3 27.1 277.3 27.1
Overseas 177.5 33.4 185.5 39.4 377.4 29.7 389.5 33.8
Other Input/Output Systems 18.4 -37.9 19.1 -35.7 45.1 -7.8 46.7 -4.7
Domestic 1.5 -45.3 1.5 -45.3 2.7 -45.8 2.7 -45.8
Overseas 16.9 -37.1 17.6 -34.8 42.4 -3.5 44.0 -0.0
Total Network Input/Output Systems 326.0 23.9 334.7 27.2 699.9 25.4 713.5 27.8
Domestic 131.6 27.7 131.6 27.7 280.0 25.5 280.0 25.5
Overseas 194.4 21.5 203.1 26.9 419.9 25.3 433.5 29.4
----------------------------------------------------------------------------------------------------------------------------------
Network System Solutions 98.9 1.8 99.1 1.9 198.1 1.2 198.4 1.3
Domestic 95.5 0.3 95.5 0.3 190.5 -0.4 190.5 -0.4
Overseas 3.4 74.6 3.6 82.6 7.6 69.4 7.9 74.8
----------------------------------------------------------------------------------------------------------------------------------
Office Equipment Total 784.1 1.1 802.7 3.5 1,592.4 2.2 1,619.4 4.0
Domestic 371.5 3.3 371.5 3.3 755.0 2.2 755.0 2.2
Overseas 412.6 -0.8 431.2 3.7 837.4 2.3 864.4 5.6
The Americas 164.7 -1.2 181.3 8.7 324.5 -0.2 345.9 6.4
Europe 199.7 2.6 200.9 3.2 412.0 3.5 416.3 4.6
Other 48.1 -11.4 49.0 -9.9 100.8 5.7 102.2 7.2
----------------------------------------------------------------------------------------------------------------------------------
(Other Businesses)
Other Businesses 110.9 -1.5 111.2 -1.2 217.4 -2.3 217.9 -2.1
Domestic 94.5 6.2 94.5 6.2 180.0 2.8 180.0 2.8
Overseas 16.4 -30.3 16.7 -29.1 37.4 -21.3 37.9 -20.4
The Americas 0.4 -47.6 0.5 -42.1 1.2 -3.5 1.3 2.0
Europe 2.8 26.7 2.9 28.8 5.9 38.0 6.0 40.1
Other 13.1 -35.8 13.3 -35.0 30.3 -27.8 30.6 -27.2
----------------------------------------------------------------------------------------------------------------------------------
Grand Total 895.0 0.8 913.9 2.9 1,810.0 1.7 1,837.3 3.2
Domestic 466.0 3.9 466.0 3.9 935.0 2.3 935.0 2.3
Overseas 429.0 -2.4 447.9 1.9 875.0 1.0 902.3 4.2
The Americas 165.1 -1.5 181.8 8.4 325.8 -0.2 347.2 6.4
Europe 202.5 2.9 203.8 3.5 417.9 3.9 422.3 4.9
Other 61.3 -18.1 62.3 -16.8 131.1 -4.6 132.8 -3.3
----------------------------------------------------------------------------------------------------------------------------------
* Excluding foreign exchange impact
A2