FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of October 2008
Commission File Number 2 - 68279
RICOH COMPANY, LTD.
-----------------------------------------------
(Translation of Registrant's name into English)
13-1, Ginza 8-Chome, Chuo-ku, Tokyo 104-8222, 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
Director, Chief Financial Officer
Corporate Executive Vice President
October 28, 2008
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RICOH October 28, 2008
QUARTERLY REPORT
Half year ended September 30, 2008
(Results for the Period from April 1, 2008 to September 30, 2008)
Three months ended September 30, 2008
(Results for the Period from July 1, 2008 to September 30, 2008)
PERFORMANCE OUTLINE (CONSOLIDATED)
(1) Half year ended September 30, 2007, 2008 and Year ending March 31, 2009
(Forecast)
(Billions of yen)
----------------------------------------------------------------------------------- --------------------------------
Half year ended Half year ended Year ending
September 30, 2008 September 30, 2007 Change March 31, 2009
Results Results Forecast Change
----------------------------------------------------------------------------------- --------------------------------
Domestic sales 483.8 504.4 -4.1% 1,000.0 -1.6%
Overseas sales 582.1 583.9 -0.3% 1,150.0 -4.5%
Net sales 1,065.9 1,088.3 -2.1% 2,150.0 -3.2%
Gross profit 443.3 451.2 -1.8% 898.0 -3.2%
Operating income 65.0 84.5 -23.0% 150.0 -17.4%
Income before income taxes 58.8 85.0 -30.8% 142.0 -18.7%
Net income 34.3 53.1 -35.4% 87.0 -18.3%
----------------------------------------------------------------------------------- --------------------------------
Exchange rate (Yen/US$) 106.15 119.37 -13.22 103.08 -11.32
Exchange rate (Yen/EURO) 162.69 162.36 0.33 146.35 -15.34
----------------------------------------------------------------------------------- --------------------------------
Net income per share-basic (yen) 47.56 72.83 -25.27 120.48 (25.56)
Net income per share-diluted (yen) 46.28 70.90 -24.62 117.24 (24.91)
----------------------------------------------------------------------------------- --------------------------------
Cash flows from operating activities 21.1 78.8 -57.7 -- --
Cash flows from investing activities -65.6 -137.1 71.4 -- --
Cash flows from financing activities 34.1 -7.2 41.4 -- --
Cash and cash equivalents at end of period 159.6 190.1 -30.4 -- --
----------------------------------------------------------------------------------- --------------------------------
Capital expenditures 46.9 39.6 7.3 90.0 4.7
Depreciation for tangible fixed assets 35.3 35.6 -0.3 75.0 2.2
R&D expenditures 63.2 61.5 1.6 127.0 0.9
----------------------------------------------------------------------------------- --------------------------------
September 30, 2008 March 31, 2008 Change
------------------------------------------------------------------------------------------
Total assets 2,220.8 2,214.3 6.5
Shareholders' investment 1,102.4 1,080.1 22.2
Interest-bearing debt 426.8 384.3 42.5
------------------------------------------------------------------------------------------
Equity ratio (%) 49.6 48.8 0.8
------------------------------------------------------------------------------------------
Shareholders' investment per share (yen) 1,519.08 1,498.29 20.79
------------------------------------------------------------------------------------------
(2) Three months ended September 30, 2007 and 2008
Three months ended Three months ended
September 30, 2008 September 30, 2007
Results Results Change
-------------------------------------------------------------------------------------------
Domestic sales 249.9 259.7 -3.8%
Overseas sales 294.4 298.5 -1.4%
Net sales 544.3 558.2 -2.5%
Gross profit 214.9 222.4 -3.4%
Operating income 25.3 37.9 -33.3%
Income before income taxes 15.1 31.7 -52.4%
Net income 8.6 19.3 -55.4%
-------------------------------------------------------------------------------------------
Exchange rate (Yen/US$) 107.63 117.98 -10.35
Exchange rate (Yen/EURO) 161.92 162.00 -0.08
-------------------------------------------------------------------------------------------
Net income per share-basic (yen) 11.85 26.45 -14.60
Net income per share-diluted (yen) 11.53 25.75 -14.22
-------------------------------------------------------------------------------------------
Capital expenditures 26.5 22.5 3.9
Depreciation for tangible fixed assets 17.6 18.8 -1.2
R&D expenditures 31.4 34.3 -2.8
-------------------------------------------------------------------------------------------
RICOH COMPANY, LTD.
* The Company bases the forecast estimates for the fiscal year ending March 31,
2009 above upon information currently available to management, which involves
risks and uncertainties that could cause actual results to differ materially
from those projected.
1
RICOH COMPANY, LTD. AND CONSOLIDATED SUBSIDIARIES
FINANCIAL HIGHLIGHTS FOR THE SECOND QUARTER ENDED SEPTEMBER 30, 2008 (U.S. GAAP
FINANCIAL INFORMATION)
1. RESULTS FOR THE PERIOD FROM APRIL 1, 2008 TO SEPTEMBER 30, 2008
(1) Operating Results
(Millions of yen)
--------------------------------------------------------------------------------------
Half year ended Half year ended
September 30, 2008 September 30, 2007
--------------------------------------------------------------------------------------
Net sales 1,065,927 1,088,373
(% change from the previous
corresponding period) -2.1 10.3
Operating income 65,076 84,568
(% change from the previous
corresponding period) -23.0 15.6
Income before income taxes 58,875 85,042
(% change from the previous
corresponding period) -30.8 14.5
Net income 34,345 53,160
(% change from the previous
corresponding period) -35.4 2.1
Net income per share-basic (yen) 47.56 72.83
Net income per share-diluted (yen) 46.28 70.90
(2) Financial Position
(Millions of yen)
-------------------------------------------------------------------------------------
September 30, 2008 March 31, 2008
-------------------------------------------------------------------------------------
Total assets 2,220,881 2,214,368
Shareholders' Investment 1,102,493 1,080,196
Equity ratio (%) 49.6 48.8
Shareholders' investment per share (yen) 1,519.08 1,498.29
-------------------------------------------------------------------------------------
2. DIVIDEND INFORMATION
Year ended Year ending
March 31, 2008 March 31, 2009
(Results) (Forecast)
----------------------------------------------------------------------------------
Cash dividends, applicable to the year (yen) 33.00 37.00
Interim (yen) 16.00 18.00
Year-end (yen) 17.00 19.00
----------------------------------------------------------------------------------
Notes: Revision of expected dividends during this period: No
3. FORECAST OF OPERATING RESULTS FROM APRIL 1, 2008 TO MARCH 31, 2009
(Millions of yen)
--------------------------------------------------------------------------------------
Year ending
March 31, 2009
--------------------------------------------------------------------------------------
Net sales 2,150,000
Operating income 150,000
Income before income taxes 142,000
Net income 87,000
Net income per share (yen) 120.48
--------------------------------------------------------------------------------------
Notes: Revision of forecast of consolidated operating results during this
period: Yes
4. OTHERS
(1) Changes in significant subsidiaries: No
(2) Changes in accounting method: Yes
* For details see "4.Others"on page 5.
(3) Number of common stock outstanding (including treasury stock):
As of September 30, 2008 744,912,078 shares As of March 31, 2008
744,912,078 shares
(4) Number of treasury stock:
As of September 30, 2008 19,146,842 shares As of March 31, 2008 23,960,828
shares
(5) Average number of common stock:
As of September 30, 2008 722,135,512 shares As of March 31, 2008
729,901,240 shares
2
CONSOLIDATED PERFORMANCE
1. OPERATING RESULTS
*Overview
Consolidated net sales of Ricoh Group for the first half of fiscal year 2009
(6months period from April 1, 2008 to September 30, 2008) decreased by 2.1% as
compared to the previous corresponding period, to Yen 1,065.9 billion. During
this quarter, the average yen exchange rates were Yen 106.15 against the U.S.
dollar (up Yen 13.22) and Yen 162.69 against the Euro (down Yen 0.33). Net sales
would have increased by 1.0% excluding impact of such foreign currency exchange
fluctuation.
As for Japan, while sales of laser printers increased, sales of black & white
PPCs (plain paper copiers) and MFPs (multifunctional printers) as well as sales
in Industrial Products and Other segments decreased. Consequently, overall
domestic sales decreased by 4.1% as compared to the previous corresponding
period.
As for overseas, despite the appreciation of the Yen against the U.S. dollar,
the increase in sales of color MFPs and color laser printers contributed to the
favorable performance in each geographic area to strengthen its sales structures
and expand printer business operations. Although sales in the Americas increased
by 0.9% (+13.4%, excluding foreign currency exchange fluctuation) due mainly to
economic downturns and the appreciation of the Yen against the U.S. dollar,
sales in Europe decreased by 0.1% (+0.3%, excluding foreign currency exchange
fluctuation) and sales in Other, comprised of China, South East Asia and
Oceania, decreased by 4.2% (+1.9%, excluding foreign currency exchange
fluctuation). As a result, sales in the overseas market decreased by 0.3% as
compared to the previous corresponding period. Excluding effects of foreign
currency fluctuations, net sales in overseas would have increased by 5.3% as
compared to the previous corresponding period.
Although gross profit decreased by 1.8% as compared to the previous
corresponding period, to Yen 443.3 billion due mainly to the appreciation of the
Yen, gross profit as a percentage of net sales increased by 0.1 percentage point
as compared to the previous corresponding period, to 41.6%. This increase
primarily reflects the increase in sales derived from cost reduction.
Selling, general and administrative expenses increased by 3.2% as compared to
the previous corresponding period, to Yen 378.2 billion due to the increase of
expenses relating to expanding printer business operations and R&D activity.
As a result, operating income decreased by 23.0% as compared to the previous
corresponding period, to Yen 65.0 billion.
Other (income) expenses, foreign exchange loss increased as compared to the
previous corresponding period. As a result, income before income taxes decreased
by 30.8% as compared to the previous corresponding period, to Yen 58.8 billion.
As a result, net income decreased by 35.4% as compared to the previous
corresponding period, to Yen 34.3 billion.
3
*Conditions by Product Line
Conditions by Product Line for half year ended September 30, 2008 are as
follows;
Imaging & Solutions (Sales down 0.5% to Yen 919.7 billion)
---------------------------------------------------------
Imaging Solutions (Sales down 1.6% to Yen 814.1 billion)
-------------------------------------------------------
As for PPCs and MFPs, while sales of color products remained steady, sales
of monochrome products decreased significantly as compared to the previous
corresponding period.
As for printers, sales increased both in Japan and overseas, reflecting
Ricoh's continuing effort to strengthen its sales structures and expand
printer business operations.
Excluding effects of foreign currency fluctuations, net sales in this
category would have increased by 2.1% as compared to the previous
corresponding period.
Network System Solutions (Sales up 8.7% to Yen 105.6 billion)
------------------------------------------------------------
Sales in this category increased by 8.7% as compared to the previous
corresponding period, to Yen 105.6 billion. Excluding effects of foreign
currency fluctuations, net sales in this category would have increased by
9.6% as compared to the previous corresponding period.
Overseas IT service business was changed from Imaging Solutions to Network
System Solutions in this period. The effect of the change was Yen 9.5 billion.
As a result, sales in the Imaging & Solutions segment decreased by 0.5% as
compared to the previous corresponding period, to Yen 919.7 billion. Operating
income decreased by 11.4% as compared to the previous corresponding period, to
Yen 98.2 billion due to the increase of expenses relating to the expansion of
its business operations as well as the appreciation of the Yen against U.S.
dollar.
Industrial Products (Sales down 12.4% to Yen 67.8 billion)
----------------------------------------------------------
Sales in the Industrial Products segment decreased by 12.4% as compared to the
previous corresponding period, to Yen 67.8 billion. Sales of electronic
components decreased.
As a result, operating income in the Industrial Products segment was Yen 0.7
billion (Yen 2.6 billion for the previous corresponding period).
Other (Sales down 9.2% to Yen 78.3 billion)
-------------------------------------------
Net sales in the Other segment decreased by 9.2% as compared to the previous
corresponding period, to Yen 78.3 billion. Sales of digital cameras decreased
both in Japan and overseas.
As a result operating income in the Other segment was Yen 1.5 billion (Yen 1.1
billion for the previous corresponding period).
2. FINANCIAL POSITION
*Assets, Liabilities and Shareholders' Investment
Total Assets amounted to Yen 2,220.8 billion as of September 30, 2008.
For Assets, inventories increased from the end of the previous period. As a
result, total assets increased by Yen 6.5 billion, to Yen 2,220.8 billion.
For Liabilities, although short-term borrowings increased, trade payables and
long-term indebtedness decreased. As a result, total liabilities decreased by
Yen 6.7 billion, to Yen 1,069.1 billion.
Minority Interest decreased by Yen 9.0 billion, to Yen 49.2 billion, due
primarily to the fact that Ricoh Elemex Corporation became a wholly owned
subsidiary of Ricoh.
Shareholders' investment increased by Yen 22.2 billion, to Yen 1,102.4 billion
due primarily to the fact that the decrease by dividends payment was
sufficiently offset by the increase by earning profit.
*Cash Flows (First half year from April 1, 2008 to September 30, 2008)
Cash Flows results for half year ended September 30, 2008 are as follows;
Net cash provided by operating activities in this period decreased by Yen 57.7
billion as compared to the previous corresponding period, to Yen 21.1 billion.
Net income and trade payables decreased and inventories and finance receivables
increased as compared to the previous corresponding period.
Net cash used in investing activities in this period decreased by Yen 71.4
billion as compared to the previous corresponding period, to Yen 65.6 billion.
Net cash used in investing activities in the previous corresponding period
consisted primarily of a payment in connection with the establishment and
commencement of a joint venture company with IBM Corporation.
As a result, free cash flows generated by operating and investing activities
decreased by Yen 13.7 billion as compared to the previous corresponding period,
to cash outflows of Yen 44.5 billion.
Net cash used in financing activities amounted to Yen 34.1 billion due primarily
to an increase in short-term borrowings.
As a result, cash and cash equivalents as of September 30, 2008 decreased by Yen
10.9 billion as compared to the end of the preceding fiscal year, to Yen 159.6
billion.
4
3. FORECAST FOR THE ENTIRE FISCAL YEAR
As for the forecast of business results for the first half of fiscal year ending
March 31, 2009 and exchange rate fluctuations, we have revised downward our
forecast of sales, gross profit, operating income, income before income taxes
and net income from announced in July 2008. This revision reflects the third
quarter result and so on.
Ricoh assumes that exchange rates of Yen 100.00 against the U.S. dollar and of
Yen 130.00 against the Euro in and after the third quarter, which were changed
from announced in July 2008.
Our performance forecast for fiscal year 2009 is as follows:
Exchange Rate Assumptions for the full year ending March 31, 2009
US$ 1 = Yen 103.08 (Yen 114.40 in previous fiscal year)
EURO 1 = Yen 146.35 (Yen 161.69 in previous fiscal year)
(Billions of yen)
----------------------------------------------------------------------
Year ending Year ended
March 31, 2009 March 31, 2008
(Forecast) (Results) Change
----------------------------------------------------------------------
Domestic sales 1,000.0 1,016.0 -1.6%
Overseas sales 1,150.0 1,203.9 -4.5%
Net sales 2,150.0 2,219.9 -3.2%
Gross profit 898.0 927.7 -3.2%
Operating income 150.0 181.5 -17.4%
Income before income taxes 142.0 174.6 -18.7%
Net income 87.0 106.4 -18.3%
----------------------------------------------------------------------
* Ricoh bases the forecast estimates for the year ending March 31, 2009 above
upon information currently available to management, which involves risks and
uncertainties that could cause actual results to differ materially from those
projected.
4. OTHERS
(1) Changes in significant subsidiaries:
Not applicable
(2) Changes in accounting method:
Adoption of new accounting standards:
i. In September 2006, the FASB issued SFAS No.157, "Fair Value Measurements".
The effect that adoption of SFAS 157 has on its consolidated results of
operations and financial condition was not material.
ii. In September 2006, the FASB issued SFAS 158, "Employers' Accounting for
Defined Benefit Pension and Other Postretirement Plans". The effect that
adoption of SFAS 158 has on its consolidated results of operations and financial
condition was not material.
5
5. CONSOLIDATED FINANCIAL STATEMENTS
(1) CONSOLIDATED BALANCE SHEETS
Assets (Millions of yen)
-----------------------------------------------------------------------------------------------------------------------
September 30, 2008 March 31, 2008 Change
-----------------------------------------------------------------------------------------------------------------------
Current Assets
Cash and time deposits 162,239 172,138 -9,899
Trade receivables 693,161 699,043 -5,882
Inventories 206,178 192,023 14,155
Other current assets 62,406 60,936 1,470
Total Current Assets 1,123,984 1,124,140 -156
Fixed Assets
Tangible fixed assets 256,394 254,633 1,761
Finance receivables 457,943 445,436 12,507
Other investments 382,560 390,159 -7,599
Total Fixed Assets 1,096,897 1,090,228 6,669
-----------------------------------------------------------------------------------------------------------------------
Total Assets 2,220,881 2,214,368 6,513
-----------------------------------------------------------------------------------------------------------------------
Note:
Contents of cash and time deposits;
Cash and cash equivalents 159,674 170,607
Time deposits 2,565 1,531
Liabilities and Shareholders' Investment (Millions of yen)
----------------------------------------------------------------------------------------------------------------------
September 30, 2008 March 31, 2008 Change
----------------------------------------------------------------------------------------------------------------------
Current Liabilities
Trade payables 328,121 360,569 -32,448
Short-term borrowings 217,125 158,442 58,683
Other current liabilities 183,691 194,745 -11,054
Total Current Liabilities 728,937 713,756 15,181
Fixed Liabilities
Long-term indebtedness 209,765 225,930 -16,165
Accrued pension and severance costs 101,283 99,830 1,453
Other fixed liabilities 29,121 36,373 -7,252
Total Fixed Liabilities 340,169 362,133 -21,964
----------------------------------------------------------------------------------------------------------------------
Total Liabilities 1,069,106 1,075,889 -6,783
----------------------------------------------------------------------------------------------------------------------
Minority Interest 49,282 58,283 -9,001
----------------------------------------------------------------------------------------------------------------------
Shareholders' Investment
Common stock 135,364 135,364 --
Additional paid-in capital 186,117 186,448 -331
Retained earnings 857,327 835,238 22,089
Accumulated other comprehensive income (loss) -39,688 -31,005 -8,683
Treasury stock -36,627 -45,849 9,222
Total Shareholders' Investment 1,102,493 1,080,196 22,297
----------------------------------------------------------------------------------------------------------------------
Total Liabilities and Shareholders' Investment 2,220,881 2,214,368 6,513
----------------------------------------------------------------------------------------------------------------------
Note:
Other comprehensive income;
Net unrealized holding gains (losses) on available-for-sale securities -69 1,316 -1,385
Pension liability adjustments -21,076 -20,788 -288
Net unrealized gains (losses) on derivative instruments 12 -408 420
Cumulative translation adjustments -18,555 -11,125 -7,430
Reference: Exchange rate September 30, 2008 March 31, 2008
US$ 1 Yen 103.57 Yen 100.19
EURO 1 Yen 149.05 Yen 158.19
6
(2) CONSOLIDATED STATEMENTS OF INCOME
Half year ended September 30, 2007 and 2008
(Millions of yen)
----------------------------------------------------------------------------------------------------------
Half year ended Half year ended
September 30, 2008 September 30, 2007 Change %
----------------------------------------------------------------------------------------------------------
Net sales 1,065,927 1,088,373 -22,446 -2.1
Cost of sales 622,583 637,120 -14,537 -2.3
Percentage of net sales (%) 58.4 58.5
Gross Profit 443,344 451,253 -7,909 -1.8
Percentage of net sales (%) 41.6 41.5
Selling, general and administrative expenses 378,268 366,685 11,583 3.2
Percentage of net sales (%) 35.5 33.7
Operating income 65,076 84,568 -19,492 -23.0
Percentage of net sales (%) 6.1 7.8
Other (income) expenses
Interest and dividend income 3,078 3,160 -82 -2.6
Percentage of net sales (%) 0.3 0.3
Interest expense 2,448 2,721 -273 -10.0
Percentage of net sales (%) 0.2 0.3
Other, net 6,831 -35 6,866 --
Percentage of net sales (%) 0.6 -0.0
Income before income taxes,
equity income and minority interests 58,875 85,042 -26,167 -30.8
Percentage of net sales (%) 5.5 7.8
Provision for income taxes 22,582 29,878 -7,296 -24.4
Percentage of net sales (%) 2.1 2.7
Minority interests in earnings of subsidiaries 1,970 2,959 -989 -33.4
Percentage of net sales (%) 0.2 0.3
Equity in earnings of affiliates 22 955 -933 -97.7
Percentage of net sales (%) 0.0 0.1
Net Income 34,345 53,160 -18,815 -35.4
Percentage of net sales (%) 3.2 4.9
----------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 106.15 Yen 119.37
EURO 1 Yen 162.69 Yen 162.36
Three months ended September 30, 2007 and 2008
(Millions of yen)
----------------------------------------------------------------------------------------------------------
Three months ended Three months ended
September 30, 2008 September 30, 2007 Change %
----------------------------------------------------------------------------------------------------------
Net sales 544,353 558,260 -13,907 -2.5
Cost of sales 329,406 335,777 -6,371 -1.9
Percentage of net sales (%) 60.5 60.1
Gross Profit 214,947 222,483 -7,536 -3.4
Percentage of net sales (%) 39.5 39.9
Selling, general and administrative expenses 189,621 184,531 5,090 2.8
Percentage of net sales (%) 34.8 33.1
Operating income 25,326 37,952 -12,626 -33.3
Percentage of net sales (%) 4.7 6.8
Other (income) expenses
Interest and dividend income 1,790 1,855 -65 -3.5
Percentage of net sales (%) 0.3 0.3
Interest expense 1,379 1,572 -193 -12.3
Percentage of net sales (%) 0.3 0.3
Other, net 10,597 6,457 4,140 64.1
Percentage of net sales (%) 1.9 1.1
Income before income taxes,
equity income and minority interests 15,140 31,778 -16,638 -52.4
Percentage of net sales (%) 2.8 5.7
Provision for income taxes 5,757 11,686 -5,929 -50.7
Percentage of net sales (%) 1.1 2.1
Minority interests in earnings of subsidiaries 796 1,337 -541 -40.5
Percentage of net sales (%) 0.1 0.2
Equity in earnings of affiliates 15 550 -535 -97.3
Percentage of net sales (%) 0.0 0.1
Net Income 8,602 19,305 -10,703 -55.4
Percentage of net sales (%) 1.6 3.5
----------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 107.63 Yen 117.98
EURO 1 Yen 161.92 Yen 162.00
7
CONSOLIDATED SALES BY PRODUCT CATEGORY
Half year ended September 30, 2007 and 2008
(Millions of yen)
----------------------------------------------------------------------------------------------------------
Half year ended Half year ended
September 30, 2008 September 30, 2007 Change %
----------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 814,105 827,392 -13,287 -1.6
Percentage of net sales (%) 76.4 76.0
Network System Solutions 105,667 97,235 8,432 8.7
Percentage of net sales (%) 9.9 9.0
Imaging & Solutions Total 919,772 924,627 -4,855 -0.5
Percentage of net sales (%) 86.3 85.0
----------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 67,841 77,476 -9,635 -12.4
Percentage of net sales (%) 6.4 7.1
----------------------------------------------------------------------------------------------------------
[Other]
Other 78,314 86,270 -7,956 -9.2
Percentage of net sales (%) 7.3 7.9
----------------------------------------------------------------------------------------------------------
Grand Total 1,065,927 1,088,373 -22,446 -2.1
Percentage of net sales (%) 100.0 100.0
----------------------------------------------------------------------------------------------------------
* Overseas IT service business was changed from Imaging Solutions to Network
System Solutions in this period. The effect of the change was Yen 9,543 million.
Reference : Exchange rate
US$ 1 Yen 106.15 Yen 119.37
EURO 1 Yen 162.69 Yen 162.36
Three months ended September 30, 2007 and 2008
Three months ended Three months ended
September 30, 2008 September 30, 2007 Change %
----------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 403,987 415,209 -11,222 -2.7
Percentage of net sales (%) 74.2 74.4
Network System Solutions 60,527 56,580 3,947 7.0
Percentage of net sales (%) 11.1 10.1
Imaging & Solutions Total 464,514 471,789 -7,275 -1.5
Percentage of net sales (%) 85.3 84.5
----------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 34,746 41,940 -7,194 -17.2
Percentage of net sales (%) 6.4 7.5
----------------------------------------------------------------------------------------------------------
[Other]
Other 45,093 44,531 562 1.3
Percentage of net sales (%) 8.3 8.0
----------------------------------------------------------------------------------------------------------
Grand Total 544,353 558,260 -13,907 -2.5
Percentage of net sales (%) 100.0 100.0
----------------------------------------------------------------------------------------------------------
* Overseas IT service business was changed from Imaging Solutions to Network
System Solutions in this period. The effect of the change was Yen 4,851 million.
Reference : Exchange rate
US$ 1 Yen 107.63 Yen 117.98
EURO 1 Yen 161.92 Yen 162.00
8
CONSOLIDATED SALES BY GEOGRAPHIC AREA
Half year ended September 30, 2007 and 2008
(Millions of yen)
----------------------------------------------------------------------------------------------------------
Half year ended Half year ended
September 30, 2008 September 30, 2007 Change %
----------------------------------------------------------------------------------------------------------
[Domestic] 483,817 504,439 -20,622 -4.1
Percentage of net sales (%) 45.4 46.3
[Overseas] 582,110 583,934 -1,824 -0.3
Percentage of net sales (%) 54.6 53.7
The Americas 217,585 215,701 1,884 0.9
Percentage of net sales (%) 20.4 19.8
Europe 288,710 289,116 -406 -0.1
Percentage of net sales (%) 27.1 26.6
Other 75,815 79,117 -3,302 -4.2
Percentage of net sales (%) 7.1 7.3
Grand Total 1,065,927 1,088,373 -22,446 -2.1
Percentage of net sales (%) 100.0 100.0
----------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 106.15 Yen 119.37
EURO 1 Yen 162.69 Yen 162.36
Three months ended September 30, 2007 and 2008
(Millions of yen)
----------------------------------------------------------------------------------------------------------
Three months ended Three months ended
September 30, 2008 September 30, 2007 Change %
----------------------------------------------------------------------------------------------------------
[Domestic] 249,948 259,705 -9,757 -3.8
Percentage of net sales (%) 45.9 46.5
[Overseas] 294,405 298,555 -4,150 -1.4
Percentage of net sales (%) 54.1 53.5
The Americas 115,921 112,527 3,394 3.0
Percentage of net sales (%) 21.3 20.2
Europe 140,039 142,267 -2,228 -1.6
Percentage of net sales (%) 25.7 25.5
Other 38,445 43,761 -5,316 -12.1
Percentage of net sales (%) 7.1 7.8
Grand Total 544,353 558,260 -13,907 -2.5
Percentage of net sales (%) 100.0 100.0
----------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 107.63 Yen 117.98
EURO 1 Yen 161.92 Yen 162.00
9
(3) CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions of yen)
-----------------------------------------------------------------------------------------------------------------------
Half year ended Half year ended
September 30, 2008 September 30, 2007
-----------------------------------------------------------------------------------------------------------------------
I. Cash Flows from Operating Activities:
Net income 34,345 53,160
Adjustments to reconcile net income to net cash provided by operating activities--
Depreciation and amortization 48,742 46,662
Equity in earnings of affiliates, net of dividends received -22 -380
Deferred income taxes -5,797 1,965
Loss on disposals and sales of tangible fixed assets 760 936
Pension and severance costs, less payments 1,245 -3,352
Changes in assets and liabilities--
Decrease (Increase) in trade receivables 4,719 -2,705
Increase in inventories -15,586 -1,895
Increase in finance receivables -16,240 -7,357
Decrease in trade payables -33,167 -2,363
Decrease in accrued income taxes and accrued expenses and other -9,550 -11,396
Other, net 11,651 5,561
-----------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 21,100 78,836
-----------------------------------------------------------------------------------------------------------------------
II. Cash Flows from Investing Activities:
Proceeds from sales of property, plant and equipment 73 36
Expenditures for property, plant and equipment -46,965 -39,677
Payments for purchases of available-for-sale securities -909 -48,486
Proceeds from sales of available-for-sale securities 253 49,930
Increase in time deposits -1,047 242
Other, net -17,045 -99,169
-----------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities -65,640 -137,124
-----------------------------------------------------------------------------------------------------------------------
III. Cash Flows from Financing Activities:
Proceeds from long-term indebtedness 25,329 44,521
Repayment of long-term indebtedness -37,243 -46,972
Increase in short-term borrowings, net 58,981 17,194
Repayment of long-term debt securities -- -10,000
Dividends paid -12,256 -10,950
Payment for purchase of treasury stock -317 -469
Other, net -312 -580
-----------------------------------------------------------------------------------------------------------------------
Net cash used in financing activities 34,182 -7,256
-----------------------------------------------------------------------------------------------------------------------
IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents -575 -57
-----------------------------------------------------------------------------------------------------------------------
V. Net Increase (Decrease) in Cash and Cash Equivalents -10,933 -65,601
-----------------------------------------------------------------------------------------------------------------------
VI. Cash and Cash Equivalents at Beginning of Year 170,607 255,737
-----------------------------------------------------------------------------------------------------------------------
VII. Cash and Cash Equivalents at End of Period 159,674 190,136
-----------------------------------------------------------------------------------------------------------------------
10
(4) NOTES ON PREMISE GOING CONCERN
Not applicable
(5) SEGMENT INFORMATION
(a) Operating Segments Information
Half year ended September 30, 2007 and 2008
(Millions of yen)
------------------------------------------------------------------------------------------------------------------------
Half year ended Half year ended
September 30, 2008 September 30, 2007 Change %
------------------------------------------------------------------------------------------------------------------------
IMAGING & SOLUTIONS:
Net sales:
Unaffiliated customers 919,772 924,627 -4,855 -0.5
Intersegment -- -- -- --
Total 919,772 924,627 -4,855 -0.5
------------------------------------------------------------------------------------------------------------------------
Operating expenses 821,569 813,772 7,797 1.0
------------------------------------------------------------------------------------------------------------------------
Operating income 98,203 110,855 -12,652 -11.4
Operating income on sales in Imaging & Solutions (%) 10.7 12.0
------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PRODUCTS:
Net sales:
Unaffiliated customers 67,841 77,476 -9,635 -12.4
Intersegment 2,293 2,155 138 6.4
Total 70,134 79,631 -9,497 -11.9
------------------------------------------------------------------------------------------------------------------------
Operating expenses 69,358 76,937 -7,579 -9.9
------------------------------------------------------------------------------------------------------------------------
Operating income 776 2,694 -1,918 -71.2
Operating income on sales in Industrial Products (%) 1.1 3.4
------------------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
Unaffiliated customers 78,314 86,270 -7,956 -9.2
Intersegment -- -- -- --
Total 78,314 86,270 -7,956 -9.2
------------------------------------------------------------------------------------------------------------------------
Operating expenses 76,733 85,105 -8,372 -9.8
------------------------------------------------------------------------------------------------------------------------
Operating income 1,581 1,165 416 35.7
Operating income on sales in Other (%) 2.0 1.4
------------------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -2,293 -2,155 -138
Total -2,293 -2,155 -138 --
------------------------------------------------------------------------------------------------------------------------
Operating expenses:
Intersegment -2,292 -2,156 -136
Corporate 35,483 30,147 5,336
Total 33,191 27,991 5,200 --
------------------------------------------------------------------------------------------------------------------------
Operating income -35,484 -30,146 -5,338 --
------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
Unaffiliated customers 1,065,927 1,088,373 -22,446 -2.1
Intersegment -- -- -- --
Total 1,065,927 1,088,373 -22,446 -2.1
------------------------------------------------------------------------------------------------------------------------
Operating expenses 1,000,851 1,003,805 -2,954 -0.3
------------------------------------------------------------------------------------------------------------------------
Operating income 65,076 84,568 -19,492 -23.0
Operating income on consolidated net sales (%) 6.1 7.8
------------------------------------------------------------------------------------------------------------------------
11
Three months ended September 30, 2007 and 2008
(Millions of yen)
------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
September 30, 2008 September 30, 2007 Change %
------------------------------------------------------------------------------------------------------------------------
IMAGING & SOLUTIONS:
Net sales:
Unaffiliated customers 464,514 471,789 -7,275 -1.5
Intersegment -- -- -- --
Total 464,514 471,789 -7,275 -1.5
------------------------------------------------------------------------------------------------------------------------
Operating expenses 421,729 421,691 38 0.0
------------------------------------------------------------------------------------------------------------------------
Operating income 42,785 50,098 -7,313 -14.6
Operating income on sales in Imaging & Solutions (%) 9.2 10.6
------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PRODUCTS:
Net sales:
Unaffiliated customers 34,746 41,940 -7,194 -17.2
Intersegment 1,135 1,036 99 9.6
Total 35,881 42,976 -7,095 -16.5
------------------------------------------------------------------------------------------------------------------------
Operating expenses 36,111 41,383 -5,272 -12.7
------------------------------------------------------------------------------------------------------------------------
Operating income -230 1,593 -1,823 --
Operating income on sales in Industrial Products (%) -0.6 3.7
------------------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
Unaffiliated customers 45,093 44,531 562 1.3
Intersegment -- -- -- --
Total 45,093 44,531 562 1.3
------------------------------------------------------------------------------------------------------------------------
Operating expenses 44,025 44,208 -183 -0.4
------------------------------------------------------------------------------------------------------------------------
Operating income 1,068 323 745 230.7
Operating income on sales in Other (%) 2.4 0.7
------------------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -1,135 -1,036 -99
Total -1,135 -1,036 -99 --
------------------------------------------------------------------------------------------------------------------------
Operating expenses:
Intersegment -1,135 -1,039 -96
Corporate 18,297 14,065 4,232
Total 17,162 13,026 4,136 --
------------------------------------------------------------------------------------------------------------------------
Operating income -18,297 -14,062 -4,235 --
------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
Unaffiliated customers 544,353 558,260 -13,907 -2.5
Intersegment -- -- -- --
Total 544,353 558,260 -13,907 -2.5
------------------------------------------------------------------------------------------------------------------------
Operating expenses 519,027 520,308 -1,281 -0.2
------------------------------------------------------------------------------------------------------------------------
Operating income 25,326 37,952 -12,626 -33.3
Operating income on consolidated net sales (%) 4.7 6.8
------------------------------------------------------------------------------------------------------------------------
12
(b) Geographic Segments Information
Half year ended September 30, 2007 and 2008
(Millions of yen)
------------------------------------------------------------------------------------------------------------------------
Half year ended Half year ended
September 30, 2008 September 30, 2007 Change %
------------------------------------------------------------------------------------------------------------------------
JAPAN:
Net sales:
External customers 499,654 521,352 -21,698 -4.2
Intersegment 236,933 248,573 -11,640 -4.7
Total 736,587 769,925 -33,338 -4.3
------------------------------------------------------------------------------------------------------------------------
Operating expenses 688,870 719,417 -30,547 -4.2
------------------------------------------------------------------------------------------------------------------------
Operating income 47,717 50,508 -2,791 -5.5
Operating income on sales in Japan (%) 6.5 6.6
------------------------------------------------------------------------------------------------------------------------
THE AMERICAS:
Net sales:
External customers 216,648 213,825 2,823 1.3
Intersegment 2,256 2,100 156 7.4
Total 218,904 215,925 2,979 1.4
------------------------------------------------------------------------------------------------------------------------
Operating expenses 224,183 210,474 13,709 6.5
------------------------------------------------------------------------------------------------------------------------
Operating income (5,279) 5,451 -10,730 --
Operating income on sales in the Americas (%) -2.4 2.5
------------------------------------------------------------------------------------------------------------------------
EUROPE:
Net sales:
External customers 286,907 289,308 -2,401 -0.8
Intersegment 1,486 1,731 -245 -14.2
Total 288,393 291,039 -2,646 -0.9
------------------------------------------------------------------------------------------------------------------------
Operating expenses 268,240 275,209 -6,969 -2.5
------------------------------------------------------------------------------------------------------------------------
Operating income 20,153 15,830 4,323 27.3
Operating income on sales in Europe (%) 7.0 5.4
------------------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 62,718 63,888 -1,170 -1.8
Intersegment 85,165 90,905 -5,740 -6.3
Total 147,883 154,793 -6,910 -4.5
------------------------------------------------------------------------------------------------------------------------
Operating expenses 139,585 142,549 -2,964 -2.1
------------------------------------------------------------------------------------------------------------------------
Operating income 8,298 12,244 -3,946 -32.2
Operating income on sales in Other (%) 5.6 7.9
------------------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -325,840 -343,309 17,469
Total -325,840 -343,309 17,469 --
------------------------------------------------------------------------------------------------------------------------
Operating expenses -320,027 -343,844 23,817 --
------------------------------------------------------------------------------------------------------------------------
Operating income -5,813 535 -6,348 --
------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 1,065,927 1,088,373 -22,446 -2.1
Intersegment -- -- -- --
Total 1,065,927 1,088,373 -22,446 -2.1
------------------------------------------------------------------------------------------------------------------------
Operating expenses 1,000,851 1,003,805 -2,954 -0.3
------------------------------------------------------------------------------------------------------------------------
Operating income 65,076 84,568 -19,492 -23.0
Operating income on consolidated net sales (%) 6.1 7.8
------------------------------------------------------------------------------------------------------------------------
13
Three months ended September 30, 2007 and 2008
(Millions of yen)
------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
September 30, 2008 September 30, 2007 Change %
------------------------------------------------------------------------------------------------------------------------
JAPAN:
Net sales:
External customers 258,534 269,226 -10,692 -4.0
Intersegment 113,562 106,946 6,616 6.2
Total 372,096 376,172 -4,076 -1.1
------------------------------------------------------------------------------------------------------------------------
Operating expenses 350,455 360,737 -10,282 -2.9
------------------------------------------------------------------------------------------------------------------------
Operating income 21,641 15,435 6,206 40.2
Operating income on sales in Japan (%) 5.8 4.1
------------------------------------------------------------------------------------------------------------------------
THE AMERICAS:
Net sales:
External customers 115,363 111,314 4,049 3.6
Intersegment 1,032 1,271 -239 -18.8
Total 116,395 112,585 3,810 3.4
------------------------------------------------------------------------------------------------------------------------
Operating expenses 120,461 108,970 11,491 10.5
------------------------------------------------------------------------------------------------------------------------
Operating income (4,066) 3,615 -7,681 --
Operating income on sales in the Americas (%) -3.5 3.2
------------------------------------------------------------------------------------------------------------------------
EUROPE:
Net sales:
External customers 138,651 142,690 -4,039 -2.8
Intersegment 763 521 242 46.4
Total 139,414 143,211 -3,797 -2.7
------------------------------------------------------------------------------------------------------------------------
Operating expenses 130,930 134,146 -3,216 -2.4
------------------------------------------------------------------------------------------------------------------------
Operating income 8,484 9,065 -581 -6.4
Operating income on sales in Europe (%) 6.1 6.3
------------------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 31,805 35,030 -3,225 -9.2
Intersegment 41,238 43,479 -2,241 -5.2
Total 73,043 78,509 -5,466 -7.0
------------------------------------------------------------------------------------------------------------------------
Operating expenses 69,312 71,935 -2,623 -3.6
------------------------------------------------------------------------------------------------------------------------
Operating income 3,731 6,574 -2,843 -43.2
Operating income on sales in Other (%) 5.1 8.4
------------------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -156,595 -152,217 -4,378
Total -156,595 -152,217 -4,378 --
------------------------------------------------------------------------------------------------------------------------
Operating expenses -152,131 -155,480 3,349 --
------------------------------------------------------------------------------------------------------------------------
Operating income -4,464 3,263 -7,727 --
------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 544,353 558,260 -13,907 -2.5
Intersegment -- -- -- --
Total 544,353 558,260 -13,907 -2.5
------------------------------------------------------------------------------------------------------------------------
Operating expenses 519,027 520,308 -1,281 -0.2
------------------------------------------------------------------------------------------------------------------------
Operating income 25,326 37,952 -12,626 -33.3
Operating income on consolidated net sales (%) 4.7 6.8
------------------------------------------------------------------------------------------------------------------------
(6) NOTES ON SIGNIFICANT CHANGES IN SHAREHOLDERS' INVESTMENT
Not applicable
14
-APPENDIX-
1. CONSOLIDATED SALES BY PRODUCT CATEGORY
Half year ended September 30, 2007 and 2008
(Millions of yen)
----------------------------------------------------------------------------------------------------------------------------------
Half year ended Half year ended Change excluding
September 30, 2008 September 30, 2007 Change % exchange impact %
----------------------------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 814,105 827,392 -13,287 -1.6 17,266 2.1
Percentage of net sales (%) 76.4 76.0
Domestic 286,162 296,648 -10,486 -3.5 -10,486 -3.5
Overseas 527,943 530,744 -2,801 -0.5 27,752 5.2
Network System Solutions 105,667 97,235 8,432 8.7 9,353 9.6
Percentage of net sales (%) 9.9 9.0
Domestic 88,716 91,630 -2,914 -3.2 -2,914 -3.2
Overseas 16,951 5,605 11,346 202.4 12,267 218.9
Imaging & Solutions Total 919,772 924,627 -4,855 -0.5 26,619 2.9
Percentage of net sales (%) 86.3 85.0
Domestic 374,878 388,278 -13,400 -3.5 -13,400 -3.5
Overseas 544,894 536,349 8,545 1.6 40,019 7.5
The Americas 208,409 206,293 2,116 1.0 28,056 13.6
Europe 275,622 271,610 4,012 1.5 5,262 1.9
Other 60,863 58,446 2,417 4.1 6,701 11.5
-----------------------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 67,841 77,476 -9,635 -12.4 -8,641 -11.2
Percentage of net sales (%) 6.4 7.1
Domestic 37,314 44,251 -6,937 -15.7 -6,937 -15.7
Overseas 30,527 33,225 -2,698 -8.1 -1,704 -5.1
The Americas 8,118 8,013 105 1.3 1,046 13.1
Europe 10,879 11,526 -647 -5.6 -664 -5.8
Other 11,530 13,686 -2,156 -15.8 -2,086 -15.2
-----------------------------------------------------------------------------------------------------------------------------------
[Other]
Other 78,314 86,270 -7,956 -9.2 -7,434 -8.6
Percentage of net sales (%) 7.3 7.9
Domestic 71,625 71,910 -285 -0.4 -285 -0.4
Overseas 6,689 14,360 -7,671 -53.4 -7,149 -49.8
The Americas 1,058 1,395 -337 -24.2 -239 -17.1
Europe 2,209 5,980 -3,771 -63.1 -3,768 -63.0
Other 3,422 6,985 -3,563 -51.0 -3,142 -45.0
-----------------------------------------------------------------------------------------------------------------------------------
Grand Total 1,065,927 1,088,373 -22,446 -2.1 10,544 1.0
Percentage of net sales (%) 100.0 100.0
Domestic 483,817 504,439 -20,622 -4.1 -20,622 -4.1
Percentage of net sales (%) 45.4 46.3
Overseas 582,110 583,934 -1,824 -0.3 31,166 5.3
Percentage of net sales (%) 54.6 53.7
The Americas 217,585 215,701 1,884 0.9 28,863 13.4
Percentage of net sales (%) 20.4 19.8
Europe 288,710 289,116 -406 -0.1 830 0.3
Percentage of net sales (%) 27.1 26.6
Other 75,815 79,117 -3,302 -4.2 1,473 1.9
Percentage of net sales (%) 7.1 7.3
-----------------------------------------------------------------------------------------------------------------------------------
Reference: Exchange rate
US$ 1 Yen 106.15 Yen 119.37 Yen -13.22
EURO 1 Yen 162.69 Yen 162.36 Yen 0.33
* Each category includes the following product line:
Imaging Solutions Digital PPCs, color PPCs, digital duplicators,
facsimile machines, analog PPCs, diazo copiers,
scanners, MFPs(multifunctional printers), laser
printers and software
Network System Solutions Personal computers, servers, network systems and
network related software
Industrial Products Thermal media, optical equipment, semiconductor
devices, electronic components and measuring equipment
Other Digital cameras
* Overseas IT service business was changed from Imaging Solutions to Network
System Solutions in this period. The effect of the change was Yen 9,543
million.
A1
Three months ended September 30, 2007 and 2008
(Millions of yen)
---------------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Change excluding
September 30, 2008 September 30, 2007 Change % exchange impact %
---------------------------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 403,987 415,209 -11,222 -2.7 2,382 0.6
Percentage of net sales (%) 74.2 74.4
Domestic 138,093 144,975 -6,882 -4.7 -6,882 -4.7
Overseas 265,894 270,234 -4,340 -1.6 9,264 3.4
Network System Solutions 60,527 56,580 3,947 7.0 4,344 7.7
Percentage of net sales (%) 11.1 10.1
Domestic 51,379 53,592 -2,213 -4.1 -2,213 -4.1
Overseas 9,148 2,988 6,160 206.2 6,557 219.4
Imaging & Solutions Total 464,514 471,789 -7,275 -1.5 6,726 1.4
Percentage of net sales (%) 85.3 84.5
Domestic 189,472 198,567 -9,095 -4.6 -9,095 -4.6
Overseas 275,042 273,222 1,820 0.7 15,821 5.8
The Americas 111,049 107,636 3,413 3.2 14,388 13.4
Europe 133,718 133,351 367 0.3 1,225 0.9
Other 30,275 32,235 -1,960 -6.1 208 0.6
---------------------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 34,746 41,940 -7,194 -17.2 -6,795 -16.2
Percentage of net sales (%) 6.4 7.5
Domestic 18,796 23,591 -4,795 -20.3 -4,795 -20.3
Overseas 15,950 18,349 -2,399 -13.1 -2,000 -10.9
The Americas 4,239 4,519 -280 -6.2 100 2.2
Europe 5,124 5,558 -434 -7.8 -430 -7.7
Other 6,587 8,272 -1,685 -20.4 -1,670 -20.2
---------------------------------------------------------------------------------------------------------------------------------
[Other]
Other 45,093 44,531 562 1.3 743 1.7
Percentage of net sales (%) 8.3 8.0
Domestic 41,680 37,547 4,133 11.0 4,133 11.0
Overseas 3,413 6,984 -3,571 -51.1 -3,390 -48.5
The Americas 633 372 261 70.2 298 80.1
Europe 1,197 3,358 -2,161 -64.4 -2,158 -64.3
Other 1,583 3,254 -1,671 -51.4 -1,530 -47.0
---------------------------------------------------------------------------------------------------------------------------------
Grand Total 544,353 558,260 -13,907 -2.5 674 0.1
Percentage of net sales (%) 100.0 100.0
Domestic 249,948 259,705 -9,757 -3.8 -9,757 -3.8
Percentage of net sales (%) 45.9 46.5
Overseas 294,405 298,555 -4,150 -1.4 10,431 3.5
Percentage of net sales (%) 54.1 53.5
The Americas 115,921 112,527 3,394 3.0 14,786 13.1
Percentage of net sales (%) 21.3 20.2
Europe 140,039 142,267 -2,228 -1.6 -1,363 -1.0
Percentage of net sales (%) 25.7 25.5
Other 38,445 43,761 -5,316 -12.1 -2,992 -6.8
Percentage of net sales (%) 7.1 7.8
---------------------------------------------------------------------------------------------------------------------------------
Reference: Exchange rate
US$ 1 Yen 107.63 Yen 117.98 Yen -10.35
EURO 1 Yen 161.92 Yen 162.00 Yen -0.08
* Each category includes the following product line:
Imaging Solutions Digital PPCs, color PPCs, digital duplicators,
facsimile machines, analog PPCs, diazo copiers,
scanners, MFPs(multifunctional printers), laser
printers and software
Network System Solutions Personal computers, servers, network systems and
network related software
Industrial Products Thermal media, optical equipment, semiconductor
devices, electronic components and measuring
equipment
Other Digital cameras
* Overseas IT service business was changed from Imaging Solutions to Network
System Solutions in this period. The effect of the change was Yen 4,851
million.
A2
2. FORECAST OF CONSOLIDATED PERFORMANCE
(Billions of yen)
------------------------------------------------------------------------------------------------------------------------
Half year ended Half year ending Year ending
Sept. 30, 2008 Change March 31, 2009 Change March 31, 2009 Change
Results % Forecast % Forecast %
------------------------------------------------------------------------------------------------------------------------
Net sales 1,065.9 -2.1 1,084.0 -4.2 2,150.0 -3.2
Gross profit 443.3 -1.8 454.6 -4.6 898.0 -3.2
Operating income 65.0 -23.0 84.9 -12.4 150.0 -17.4
Income before income taxes 58.8 -30.8 83.1 -7.3 142.0 -18.7
Net income 34.3 -35.4 52.6 -1.3 87.0 -18.3
------------------------------------------------------------------------------------------------------------------------
Net income per share-basic (yen) 47.56 -- 72.92 -- 120.48 --
Net income per share-diluted (yen) 46.28 -- 70.95 -- 117.24 --
------------------------------------------------------------------------------------------------------------------------
Capital expenditures 46.9 -- 43.1 -- 90.0 --
Depreciation for tangible fixed assets 35.3 -- 39.7 -- 75.0 --
R&D expenditures 63.2 -- 63.8 -- 127.0 --
------------------------------------------------------------------------------------------------------------------------
Exchange rate (Yen/US$) 106.15 -- 100.00 -- 103.08 --
Exchange rate (Yen/EURO) 162.69 -- 130.00 -- 146.35 --
------------------------------------------------------------------------------------------------------------------------
3. FORECAST OF CONSOLIDATED SALES BY PRODUCT CATEGORY
(Billions of yen)
-----------------------------------------------------------------------------------------------------------------
Half year ending March 31, 2009 Year ending March 31, 2009
------------------------------- --------------------------
Change Change Change Change
Forecast % Forecast(*) % Forecast % Forecast(*) %
-----------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 832.0 -5.7 911.0 3.3 1,646.1 -3.7 1,755.6 2.7
Domestic 319.0 2.2 319.0 2.2 605.1 -0.6 605.1 -0.6
Overseas 513.0 -10.0 592.0 3.9 1,040.9 -5.4 1,150.4 4.5
Network System Solutions 117.8 14.5 121.0 17.7 223.4 11.7 227.5 13.7
Domestic 98.3 1.9 98.3 1.9 187.0 -0.6 187.0 -0.6
Overseas 19.5 207.8 22.7 258.3 36.4 205.3 40.5 239.8
Imaging & Solutions Total 949.8 -3.6 1,032.0 4.8 1,869.5 -2.1 1,983.2 3.9
Domestic 417.3 2.1 417.3 2.1 792.1 -0.6 792.1 -0.6
Overseas 532.5 -7.6 614.7 6.7 1,077.3 -3.2 1,191.0 7.1
The Americas 211.2 0.5 230.5 9.7 419.6 0.8 464.8 11.6
Europe 249.4 -16.8 308.5 2.9 525.0 -8.1 585.3 2.4
Other 71.9 8.7 75.7 14.4 132.7 6.6 140.8 13.0
-----------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 63.9 -4.4 66.6 -0.4 131.7 -8.7 135.4 -6.2
Domestic 34.5 1.6 34.5 1.6 71.8 -8.2 71.8 -8.2
Overseas 29.4 -10.6 32.1 -2.4 59.9 -9.4 63.6 -3.8
The Americas 8.4 3.1 9.1 11.7 16.5 2.2 18.1 12.4
Europe 8.4 -22.9 10.4 -4.6 19.2 -14.0 21.2 -5.2
Other 12.6 -9.1 12.6 -9.1 24.1 -12.4 24.2 -12.1
-----------------------------------------------------------------------------------------------------------------
[Other]
Other 70.4 -11.8 71.0 -11.0 148.7 -10.5 149.8 -9.8
Domestic 64.4 -6.5 64.4 -6.5 136.0 -3.4 136.0 -3.4
Overseas 6.0 -45.2 6.6 -39.7 12.6 -49.9 13.8 -45.4
The Americas 0.8 0.1 0.8 0.1 1.8 -15.3 1.9 -10.8
Europe 2.2 -34.0 2.8 -16.0 4.4 -52.7 5.0 -46.2
Other 3.0 -56.0 3.0 -56.0 6.4 -53.5 6.8 -50.4
-----------------------------------------------------------------------------------------------------------------
Grand Total 1,084.1 -4.2 1,169.6 3.4 2,150.0 -3.2 2,268.5 2.2
Domestic 516.2 0.9 516.2 0.9 1,000.0 -1.6 1,000.0 -1.6
Overseas 567.9 -8.4 653.4 5.4 1,150.0 -4.5 1,268.5 5.4
The Americas 220.4 0.6 240.4 9.7 437.9 0.7 484.9 11.5
Europe 260.0 -17.2 321.7 2.4 548.7 -9.0 611.6 1.4
Other 87.5 0.8 91.3 5.2 163.3 -1.6 171.8 3.6
-----------------------------------------------------------------------------------------------------------------
* Excluding foreign exchange impact
A3