FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of January 2009
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
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(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.)
Form 20-F X Form 40-F __
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): __ )
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): __ )
(Indicate by check mark whether by furnishing the in
formation contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934.)
Yes __ No X
(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82-__ )
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Ricoh Company, Ltd.
------------------------------
(Registrant)
By: /S/ Zenji Miura
------------------------------
Zenji Miura
Director, Chief Financial Officer
Corporate Executive Vice President
January 29, 2009
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RICOH
January 29, 2009
QUARTERLY REPORT
Nine months ended December 31, 2008
Results for the Period from April 1, 2008 to December 31, 2008
Three months ended December 31, 2008
Results for the Period from October 1, 2008 to December 31, 2008
PERFORMANCE OUTLINE (CONSOLIDATED)
(1) Third Quarter ended December 31, 2007, 2008 and Year ending March 31, 2009
(Forecast)
(Billions of yen)
--------------------------------------------------------------------------------------------- ----------------------
Third Quarter ended Third Quarter ended Year ending
December 31, 2008 December 31, 2007 March 31, 2009
Results Results Change Forecast Change
--------------------------------------------------------------------------------------------- ----------------------
Domestic sales 704.8 749.0 -5.9% 959.0 -5.6%
Overseas sales 863.1 891.3 -3.2% 1,191.0 -1.1%
Net sales 1,568.0 1,640.4 -4.4% 2,150.0 -3.2%
Gross profit 657.4 688.6 -4.5% 879.0 -5.3%
Operating income 86.3 134.0 -35.5% 100.0 -44.9%
Income before income taxes 60.0 134.0 -55.2% 70.0 -59.9%
Net income 29.5 85.2 -65.4% 35.0 -67.1%
--------------------------------------------------------------------------------------------- ----------------------
Exchange rate (Yen/US$) 102.83 117.32 -14.49 99.63 -14.77
Exchange rate (Yen/EURO) 150.74 162.89 -12.15 143.09 -18.60
--------------------------------------------------------------------------------------------- ----------------------
Net income per share-basic (yen) 40.84 116.84 -76.00 48.39 -97.65
Net income per share-diluted (yen) 39.73 113.74 -74.01 47.07 -95.08
--------------------------------------------------------------------------------------------- ----------------------
Cash flows from operating activities 8.7 104.8 -96.0 -- --
Cash flows from investing activities -250.7 -160.9 -89.7 -- --
Cash flows from financing activities 244.1 -10.5 254.6 -- --
Cash and cash equivalents at end of period 155.1 189.4 -34.3 -- --
--------------------------------------------------------------------------------------------- ----------------------
Capital expenditures 72.3 57.8 14.5 98.0 12.7
Depreciation for tangible fixed assets 55.0 54.1 0.9 76.0 3.2
R&D expenditures 93.5 93.6 -0.1 126.0 --
--------------------------------------------------------------------------------------------- ----------------------
December 31, 2008 March 31, 2008 Change
---------------------------------------------------------------------------------------------
Total assets 2,405.1 2,214.3 190.7
Shareholders' investment 984.8 1,080.1 -95.2
Interest-bearing debt 717.2 384.3 332.8
---------------------------------------------------------------------------------------------
Equity ratio (%) 41.0 48.8 -7.8
---------------------------------------------------------------------------------------------
Shareholders' investment per share (yen) 1,357.20 1,498.29 -141.09
---------------------------------------------------------------------------------------------
(2) Three months ended December 31, 2007 and 2008
---------------------------------------------------------------------------------------------
Three months ended Three months ended
December 31, 2008 December 31, 2007
Results Results Change
---------------------------------------------------------------------------------------------
Domestic sales 221.0 244.6 -9.6%
Overseas sales 281.0 307.3 -8.6%
Net sales 502.0 552.0 -9.0%
Gross profit 214.1 237.4 -9.8%
Operating income 21.3 49.4 -56.9%
Income before income taxes 1.1 49.0 -97.6%
Net income -4.8 32.1 --
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Exchange rate (Yen/US$) 96.21 113.24 -17.03
Exchange rate (Yen/EURO) 126.97 163.96 -36.99
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Net income per share-basic (yen) -6.62 44.01 -50.63
Net income per share-diluted (yen) -6.45 42.84 -49.29
---------------------------------------------------------------------------------------------
Capital expenditures 25.3 18.1 7.2
Depreciation for tangible fixed assets 19.7 18.4 1.3
R&D expenditures 30.2 32.0 -1.7
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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 THIRD QUARTER ENDED DECEMBER 31, 2008 (U.S. GAAP
FINANCIAL INFORMATION)
1. RESULTS FOR THE PERIOD FROM APRIL 1, 2008 TO DECEMBER 31, 2008
(1) Operating Results (Millions of yen)
----------------------------------------------------------------------------------------------
Third Quarter ended Third Quarter ended
December 31, 2008 December 31, 2007
----------------------------------------------------------------------------------------------
Net sales 1,568,018 1,640,412
(% change from the previous corresponding period) -4.4 9.9
Operating income 86,378 134,020
(% change from the previous corresponding period) -35.5 10.0
Income before income taxes 60,063 134,085
(% change from the previous corresponding period) -55.2 9.0
Net income 29,540 85,276
(% change from the previous corresponding period) -65.4 2.4
Net income per share-basic (yen) 40.84 116.84
Net income per share-diluted (yen) 39.73 113.74
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(2) Financial Position (Millions of yen)
----------------------------------------------------------------------------------------------
December 31, 2008 March 31, 2008
----------------------------------------------------------------------------------------------
Total assets 2,405,119 2,214,368
Shareholders' Investment 984,899 1,080,196
Equity ratio (%) 41.0 48.8
Shareholders' investment per share (yen) 1,357.20 1,498.29
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2. DIVIDEND INFORMATION
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Year ended Year ending
March 31, 2008 March 31, 2009
(Results) (Forecast)
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Cash dividends, applicable to the year (yen) 33.00 36.00
Interim (yen) 16.00 18.00
Year-end (yen) 17.00 18.00
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Notes: Revision of expected dividends during this period: Yes
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 100,000
Income before income taxes 70,000
Net income 35,000
Net income per share (yen) 48.39
----------------------------------------------------------------------------------------------
Notes: Revision of forecast of consolidated operating results during this
period: Yes
4. OTHERS
(1) Changes in significant subsidiaries: Yes (IKON Office Solutions, Inc.)
(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 December 31, 2008 744,912,078 shares
As of March 31, 2008 744,912,078 shares
(4) Number of treasury stock:
As of December 31, 2008 19,226,378 shares
As of March 31, 2008 23,960,828 shares
(5) Average number of common stock:
As of December 31, 2008 723,338,893 shares
As of December 31, 2007 729,865,359 shares
2
CONSOLIDATED PERFORMANCE
1. OPERATING RESULTS
*Overview
Consolidated net sales of Ricoh Group for the 9months of fiscal year 2009 (9
months ended December 31, 2008) decreased by 4.4% as compared to the previous
corresponding period, to Yen 1,568.0 billion. During this quarter, the average
yen exchange rates were Yen 102.83 against the U.S. dollar (up Yen 14.49) and
Yen 150.74 against the Euro (up Yen 12.15). Net sales would have increased by
1.4% excluding impact of such foreign currency exchange fluctuation.
As for Japan, sales in the Imaging & Solutions segment as well as sales in
Industrial Products and Other segments all decreased. Consequently, overall
domestic sales decreased by 5.9% as compared to the previous corresponding
period.
As for overseas, while the sales of color MFPs and laser printers increased in
each geographic area due to the effort to enhance its sales structures and
expand printer business operations, the appreciation of the Yen negatively
affect. Sales in the Americas increased by 8.2% (+23.5%, excluding foreign
currency exchange fluctuation) despite economic downturns and the appreciation
of the Yen against the U.S. dollar. However sales in Europe decreased by 8.0%
(-0.3%, excluding foreign currency exchange fluctuation) and sales in Other,
comprised of China, South East Asia and Oceania, decreased by 15.6% (-5.7%,
excluding foreign currency exchange fluctuation). As a result, sales in the
overseas market decreased by 3.2% as compared to the previous corresponding
period. Excluding effects of foreign currency fluctuations, net sales in
overseas would have increased by 7.6% as compared to the previous corresponding
period.
Gross profit decreased by 4.5% as compared to the previous corresponding period,
to Yen 657.4 billion due mainly to the appreciation of the Yen. Gross profit as
a percentage of net sales also decreased by 0.1 percentage point as compared to
the previous corresponding period, to 41.9% because the advantage derived from
cost reduction was not enough to offset the negative effect of the appreciation
of the Yen.
While group-wide cost reduction efforts contributed to a decline in selling,
general and administrative expenses, Ricoh incurred the expenses relating to
enhancement of its sales structures and expansion of printer business
operations. Consequently, selling, general and administrative expenses increased
by 3.0% as compared to the previous corresponding period, to Yen 571.1 billion.
As a result, operating income decreased by 35.5% as compared to the previous
corresponding period, to Yen 86.3 billion.
Other (income) expenses, foreign exchange loss increased as compared to the
previous corresponding period. As a result, income before income taxes decreased
by 55.2% as compared to the previous corresponding period, to Yen 60.0 billion.
As a result, net income decreased by 65.4% as compared to the previous
corresponding period, to Yen 29.5 billion.
3
*Conditions by Product Line
Conditions by Product Line for the third quarter ended December 31, 2008 are as
follows;
Imaging & Solutions (Sales down 2.8% to Yen 1,363.7 billion)
------------------------------------------------------------
Imaging Solutions (Sales down 5.0% to Yen 1,198.1 billion)
----------------------------------------------------------
As for PPCs and MFPs, while sales of color products remained steady due
mainly to strengthening its sales structures, sales of monochrome products
decreased significantly as compared to the previous corresponding period.
As for printers, sales increased in 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 1.9% as compared to the previous
corresponding period.
Network System Solutions (Sales up 17.0% to Yen 165.6 billion)
--------------------------------------------------------------
Sales in this category increased by 17.0% as compared to the previous
corresponding period, to Yen 165.6 billion. Excluding effects of foreign
currency fluctuations, net sales in this category would have increased by
20.3% 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 13.9 billion.
As a result, sales in the Imaging & Solutions segment decreased by 2.8% as
compared to the previous corresponding period, to Yen 1,363.7 billion. Operating
income decreased by 20.0% as compared to the previous corresponding period, to
Yen 139.4 billion due to the increase of expenses relating to enhancement of its
sales structures and the expansion of its printer business operations as well as
the appreciation of the Yen against U.S. dollar.
Industrial Products (Sales down 16.1% to Yen 93.7 billion)
----------------------------------------------------------
Sales in the Industrial Products segment decreased by 16.1% as compared to the
previous corresponding period, to Yen 93.7 billion. Sales of thermal media,
semiconductor devices and electronic components decreased.
As a result, operating loss in the Industrial Products segment was Yen 0.9
billion (operating income Yen 4.0 billion for the previous corresponding
period).
Other (Sales down 11.9% to Yen 110.4 billion)
---------------------------------------------
Net sales in the Other segment decreased by 11.9% as compared to the previous
corresponding period, to Yen 110.4 billion. Sales of digital cameras decreased
both in Japan and overseas.
As a result operating income in the Other segment was Yen 0.5 billion (Yen 1.4
billion for the previous corresponding period).
2. FINANCIAL POSITION
*Assets, Liabilities and Shareholders' Investment
Total Assets, due to the completion of the acquisition of IKON Office Solutions,
Inc.(hereinafter referred to as IKON, Inc.) in the third quarter ended December
31, 2008, increased by Yen 190.7 billion as compared to the end of the last
fiscal year, to Yen 2,405.1 billion as of December 31, 2008.
For Assets, due to the completion of the acquisition of IKON, Inc., other
investments including such as goodwill increased from the end of the previous
period. As a result, total assets increased by Yen 190.7 billion, to Yen 2,405.1
billion.
For Liabilities, short-term borrowings, etc. increased due to the completion of
the acquisition of IKON, Inc. and financing for the acquisition. As a result,
total liabilities increased by Yen 295.2 billion as compared to the end of last
fiscal year, to Yen 1,371.1 billion.
Minority Interest decreased by Yen 9.2 billion, to Yen 49.0 billion, due
primarily to the fact that Ricoh Elemex Corporation became a wholly owned
subsidiary of Ricoh.
Shareholders' investment decreased by Yen 95.2 billion, to Yen 984.8 billion due
primarily to the increase of accumulated other comprehensive loss derived from
the appreciation of the Yen.
*Cash Flows (9months from April 1, 2008 to December 31, 2008)
Cash Flows results for the third quarter ended December 31, 2008 are as follows;
Net cash provided by operating activities in this period decreased by Yen 96.0
billion as compared to the previous corresponding period, to Yen 8.7 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 increased by Yen 89.7
billion as compared to the previous corresponding period, to Yen 250.7 billion
due to the acquisition of IKON, Inc.
As a result, free cash flows generated by operating and investing activities
increased by Yen 185.8 billion as compared to the previous corresponding period,
to cash outflows of Yen 241.9 billion.
Net cash flow from financing activities amounted to Yen 244.1 billion due
primarily to an increase in short-term borrowings.
As a result, cash and cash equivalents as of December 31, 2008 decreased by Yen
15.4 billion as compared to the end of the preceding fiscal year, to Yen 155.1
billion.
4
3. FORECAST FOR THE ENTIRE FISCAL YEAR
As for the forecast of business results for the full fiscal year ending March
31, 2009, we have revised downward our forecast of gross profit, operating
income, income before income taxes and net income from announced in October
2008. This revision reflects the third quarter result and exchange rate
fluctuations and so on. Although we have revised downward our forecast of sales
in Japan and revised up that in overseas, we have not revised our forecast of
sales in total.
Ricoh assumes that exchange rates of Yen 90.00 against the U.S. dollar and of
Yen 120.00 against the Euro in the fourth quarter, which were changed from
announced in October 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 99.63 (Yen 114.40 in previous fiscal year)
EURO 1 = Yen 143.09 (Yen 161.69 in previous fiscal year)
(Billions of yen)
---------------------------------------------------------------------
Year ending Year ended
March 31, 2009 March 31, 2008 Change
(Forecast) (Results)
---------------------------------------------------------------------
Domestic sales 959.0 1,016.0 -5.6%
Overseas sales 1,191.0 1,203.9 -1.1%
Net sales 2,150.0 2,219.9 -3.2%
Gross profit 879.0 927.7 -5.3%
Operating income 100.0 181.5 -44.9%
Income before income taxes 70.0 174.6 -59.9%
Net income 35.0 106.4 -67.1%
---------------------------------------------------------------------
* 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:
The acquisition of IKON Office Solutions, Inc. (hereinafter referred to as IKON,
Inc.) was completed effective as of October 31, 2008, through Ricoh Americas
Corporation (hereinafter referred to as RAC) that was Ricoh's wholly owned U.S.
distribution subsidiary controlling sales comprehensively in the Americas.
Therefore, IKON, Inc. became the wholly owned subsidiary of RAC.
(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)
----------------------------------------------------------------------------------------------
December 31, 2008 March 31, 2008 Change
----------------------------------------------------------------------------------------------
Current Assets
Cash and time deposits 157,127 172,138 -15,011
Trade receivables 695,105 699,043 -3,938
Inventories 224,127 192,023 32,104
Other current assets 69,112 60,936 8,176
Total Current Assets 1,145,471 1,124,140 21,331
Fixed Assets
Tangible fixed assets 260,780 254,633 6,147
Finance receivables 464,205 445,436 18,769
Other investments 534,663 390,159 144,504
Total Fixed Assets 1,259,648 1,090,228 169,420
----------------------------------------------------------------------------------------------
Total Assets 2,405,119 2,214,368 190,751
----------------------------------------------------------------------------------------------
Note:
Contents of cash and time deposits;
Cash and cash equivalents 155,141 170,607
Time deposits 1,986 1,531
Liabilities and Shareholders' Investment (Millions of yen)
----------------------------------------------------------------------------------------------
December 31, 2008 March 31, 2008 Change
----------------------------------------------------------------------------------------------
Current Liabilities
Trade payables 324,825 360,569 -35,744
Short-term borrowings 466,147 158,442 307,705
Other current liabilities 155,643 194,745 -39,102
Total Current Liabilities 946,615 713,756 232,859
Fixed Liabilities
Long-term indebtedness 251,068 225,930 25,138
Accrued pension and severance costs 131,891 99,830 32,061
Other fixed liabilities 41,573 36,373 5,200
Total Fixed Liabilities 424,532 362,133 62,399
----------------------------------------------------------------------------------------------
Total Liabilities 1,371,147 1,075,889 295,258
----------------------------------------------------------------------------------------------
Minority Interest 49,073 58,283 -9,210
----------------------------------------------------------------------------------------------
Shareholders' Investment
Common stock 135,364 135,364 --
Additional paid-in capital 186,083 186,448 -365
Retained earnings 839,390 835,238 4,152
Accumulated other comprehensive loss -139,262 -31,005 -108,257
Treasury stock -36,676 -45,849 9,173
Total Shareholders' Investment 984,899 1,080,196 -95,297
----------------------------------------------------------------------------------------------
Total Liabilities and Shareholders' Investment 2,405,119 2,214,368 190,751
----------------------------------------------------------------------------------------------
Note: Other comprehensive loss;
Net unrealized holding gains (losses)
on available-for-sale securities -7,138 1,316 -8,454
Pension liability adjustments -38,709 -20,788 -17,921
Net unrealized gains (losses) on derivative
instruments -354 -408 54
Cumulative translation adjustments -93,061 -11,125 -81,936
Reference: Exchange rate December 31, 2008 March 31, 2008
US$ 1 Yen 91.03 Yen 100.19
EURO 1 Yen 127.96 Yen 158.19
6
(2) CONSOLIDATED STATEMENTS OF INCOME
Third Quarter ended December 31, 2007 and 2008 (Millions of yen)
----------------------------------------------------------------------------------------------------------
Third Quarter ended Third Quarter ended
December 31, 2008 December 31, 2007 Change %
----------------------------------------------------------------------------------------------------------
Net sales 1,568,018 1,640,412 -72,394 -4.4
Cost of sales 910,529 951,743 -41,214 -4.3
Percentage of net sales (%) 58.1 58.0
Gross Profit 657,489 688,669 -31,180 -4.5
Percentage of net sales (%) 41.9 42.0
Selling, general and administrative expenses 571,111 554,649 16,462 3.0
Percentage of net sales (%) 36.4 33.8
Operating income 86,378 134,020 -47,642 -35.5
Percentage of net sales (%) 5.5 8.2
Other (income) expenses
Interest and dividend income 3,828 4,554 -726 -15.9
Percentage of net sales (%) 0.2 0.3
Interest expense 4,322 3,466 856 24.7
Percentage of net sales (%) 0.3 0.2
Other, net 25,821 1,023 24,798 2,424.0
Percentage of net sales (%) 1.6 0.1
Income before income taxes,
equity income and minority interests 60,063 134,085 -74,022 -55.2
Percentage of net sales (%) 3.8 8.2
Provision for income taxes 28,280 45,615 -17,335 -38.0
Percentage of net sales (%) 1.8 2.8
Minority interests in earnings of subsidiaries 2,258 4,475 -2,217 -49.5
Percentage of net sales (%) 0.1 0.3
Equity in earnings of affiliates 15 1,281 -1,266 -98.8
Percentage of net sales (%) 0.0 0.1
Net Income 29,540 85,276 -55,736 -65.4
Percentage of net sales (%) 1.9 5.2
----------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 102.83 Yen 117.32
EURO 1 Yen 150.74 Yen 162.89
Three months ended December 31, 2007 and 2008 (Millions of yen)
----------------------------------------------------------------------------------------------------------
Three months ended Three months ended
December 31, 2008 December 31, 2007 Change %
----------------------------------------------------------------------------------------------------------
Net sales 502,091 552,039 -49,948 -9.0
Cost of sales 287,946 314,623 -26,677 -8.5
Percentage of net sales (%) 57.3 57.0
Gross Profit 214,145 237,416 -23,271 -9.8
Percentage of net sales (%) 42.7 43.0
Selling, general and administrative expenses 192,843 187,964 4,879 2.6
Percentage of net sales (%) 38.5 34.0
Operating income 21,302 49,452 -28,150 -56.9
Percentage of net sales (%) 4.2 9.0
Other (income) expenses
Interest and dividend income 750 1,394 -644 -46.2
Percentage of net sales (%) 0.1 0.3
Interest expense 1,874 745 1,129 151.5
Percentage of net sales (%) 0.4 0.1
Other, net 18,990 1,058 17,932 1,694.9
Percentage of net sales (%) 3.7 0.3
Income before income taxes,
equity income and minority interests 1,188 49,043 -47,855 -97.6
Percentage of net sales (%) 0.2 8.9
Provision for income taxes 5,698 15,737 -10,039 -63.8
Percentage of net sales (%) 1.1 2.9
Minority interests in earnings of subsidiaries 288 1,516 -1,228 -81.0
Percentage of net sales (%) 0.1 0.3
Equity in earnings of affiliates -7 326 -333 --
Percentage of net sales (%) 0.0 0.1
Net Income -4,805 32,116 -36,921 --
Percentage of net sales (%) -1.0 5.8
----------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 96.21 Yen 113.24
EURO 1 Yen 126.97 Yen 163.96
7
CONSOLIDATED SALES BY PRODUCT CATEGORY
Third Quarter ended December 31, 2007 and 2008 (Millions of yen)
----------------------------------------------------------------------------------------------------------
Third Quarter ended Third Quarter ended
December 31, 2008 December 31, 2007 Change %
----------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 1,198,102 1,261,705 -63,603 -5.0
Percentage of net sales (%) 76.4 76.9
Network System Solutions 165,666 141,570 24,096 17.0
Percentage of net sales (%) 10.6 8.6
Imaging & Solutions Total 1,363,768 1,403,275 -39,507 -2.8
Percentage of net sales (%) 87.0 85.5
----------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 93,754 111,749 -17,995 -16.1
Percentage of net sales (%) 6.0 6.8
----------------------------------------------------------------------------------------------------------
[Other]
Other 110,496 125,388 -14,892 -11.9
Percentage of net sales (%) 7.0 7.7
----------------------------------------------------------------------------------------------------------
Grand Total 1,568,018 1,640,412 -72,394 -4.4
Percentage of net sales (%) 100.0 100.0
----------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 102.83 Yen 117.32
EURO 1 Yen 150.74 Yen 162.89
* Overseas IT service business was changed from Imaging Solutions to Network
System Solutions in this period. The effect of the change was Yen 13,988
million.
Three months ended December 31, 2007 and 2008
----------------------------------------------------------------------------------------------------------
Three months ended Three months ended
December 31, 2008 December 31, 2007 Change %
----------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 383,997 434,313 -50,316 -11.6
Percentage of net sales (%) 76.5 78.7
Network System Solutions 59,999 44,335 15,664 35.3
Percentage of net sales (%) 11.9 8.0
Imaging & Solutions Total 443,996 478,648 -34,652 -7.2
Percentage of net sales (%) 88.4 86.7
----------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 25,913 34,273 -8,360 -24.4
Percentage of net sales (%) 5.2 6.2
----------------------------------------------------------------------------------------------------------
[Other]
Other 32,182 39,118 -6,936 -17.7
Percentage of net sales (%) 6.4 7.1
----------------------------------------------------------------------------------------------------------
Grand Total 502,091 552,039 -49,948 -9.0
Percentage of net sales (%) 100.0 100.0
----------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 96.21 Yen 113.24
EURO 1 Yen 126.97 Yen 163.96
* Overseas IT service business was changed from Imaging Solutions to Network
System Solutions in this period. The effect of the change was Yen 4,445
million.
8
CONSOLIDATED SALES BY GEOGRAPHIC AREA
Third Quarter ended December 31, 2007 and 2008 (Millions of yen)
----------------------------------------------------------------------------------------------------------
Third Quarter ended Third Quarter ended
December 31, 2008 December 31, 2007 Change %
----------------------------------------------------------------------------------------------------------
[Domestic] 704,886 749,091 -44,205 -5.9
Percentage of net sales (%) 45.0 45.7
[Overseas] 863,132 891,321 -28,189 -3.2
Percentage of net sales (%) 55.0 54.3
The Americas 350,467 323,953 26,514 8.2
Percentage of net sales (%) 22.4 19.7
Europe 408,263 443,645 -35,382 -8.0
Percentage of net sales (%) 26.0 27.0
Other 104,402 123,723 -19,321 -15.6
Percentage of net sales (%) 6.6 7.6
Grand Total 1,568,018 1,640,412 -72,394 -4.4
Percentage of net sales (%) 100.0 100.0
----------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 102.83 Yen 117.32
EURO 1 Yen 150.74 Yen 162.89
Three months ended December 31, 2007 and 2008 (Millions of yen)
----------------------------------------------------------------------------------------------------------
Three months ended Three months ended
December 31, 2008 December 31, 2007 Change %
----------------------------------------------------------------------------------------------------------
[Domestic] 221,069 244,652 -23,583 -9.6
Percentage of net sales (%) 44.0 44.3
[Overseas] 281,022 307,387 -26,365 -8.6
Percentage of net sales (%) 56.0 55.7
The Americas 132,882 108,252 24,630 22.8
Percentage of net sales (%) 26.5 19.6
Europe 119,553 154,529 -34,976 -22.6
Percentage of net sales (%) 23.8 28.0
Other 28,587 44,606 -16,019 -35.9
Percentage of net sales (%) 5.7 8.1
Grand Total 502,091 552,039 -49,948 -9.0
Percentage of net sales (%) 100.0 100.0
----------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 96.21 Yen 113.24
EURO 1 Yen 126.97 Yen 163.96
9
(3) CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions of yen)
--------------------------------------------------------------------------------------------------------------
Third Quarter ended Third Quarter ended
December 31, 2008 December 31, 2007
--------------------------------------------------------------------------------------------------------------
I. Cash Flows from Operating Activities:
Net income 29,540 85,276
Adjustments to reconcile net income to net cash
provided by operating activities--
Depreciation and amortization 74,449 71,344
Equity in earnings of affiliates, net of dividends received -15 -706
Deferred income taxes 4,562 1,291
Loss on disposals and sales of tangible fixed assets 1,170 1,525
Pension and severance costs, less payments 3,273 -2,304
Changes in assets and liabilities--
Decrease in trade receivables 15,315 446
Increase in inventories -30,936 -12,485
Increase in finance receivables -11,509 -4,093
Decrease in trade payables -50,108 -28,160
Decrease in accrued income taxes and
accrued expenses and other -56,210 -16,836
Other, net 29,234 9,560
--------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 8,765 104,858
--------------------------------------------------------------------------------------------------------------
II. Cash Flows from Investing Activities:
Proceeds from sales of property, plant and equipment 73 201
Expenditures for property, plant and equipment -72,344 -57,849
Payments for purchases of available-for-sale securities -1,275 -73,619
Proceeds from sales of available-for-sale securities 243 73,974
Increase in time deposits -689 525
Proceeds from sales of discontinued operations -158,673 -89,863
Other, net -18,063 -14,311
--------------------------------------------------------------------------------------------------------------
Net cash used in investing activities -250,728 -160,942
--------------------------------------------------------------------------------------------------------------
III. Cash Flows from Financing Activities:
Proceeds from long-term indebtedness 54,355 53,365
Repayment of long-term indebtedness -53,511 -62,854
Increase in short-term borrowings, net 295,813 33,033
Repayment of long-term debt securities -26,143 -10,000
Dividends paid -25,320 -22,628
Payment for purchase of treasury stock -605 -701
Other, net -427 -737
--------------------------------------------------------------------------------------------------------------
Net cash used in financing activities 244,162 -10,522
--------------------------------------------------------------------------------------------------------------
IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents -17,665 337
--------------------------------------------------------------------------------------------------------------
V. Net Increase (Decrease) in Cash and Cash Equivalents -15,466 -66,269
--------------------------------------------------------------------------------------------------------------
VI. Cash and Cash Equivalents at Beginning of Year 170,607 255,737
--------------------------------------------------------------------------------------------------------------
VII. Cash and Cash Equivalents at End of Period 155,141 189,468
--------------------------------------------------------------------------------------------------------------
10
(4) NOTES ON PREMISE GOING CONCERN
Not applicable
(5) SEGMENT INFORMATION
(a) Operating Segments Information
Third Quarter ended December 31, 2007 and 2008 (Millions of yen)
------------------------------------------------------------------------------------------------------------------------------
Third Quarter ended Third Quarter ended
December 31, 2008 December 31, 2007 Change %
------------------------------------------------------------------------------------------------------------------------------
IMAGING & SOLUTIONS:
Net sales:
Unaffiliated customers 1,363,768 1,403,275 -39,507 -2.8
Intersegment -- -- -- --
Total 1,363,768 1,403,275 -39,507 -2.8
------------------------------------------------------------------------------------------------------------------------------
Operating expenses 1,224,350 1,229,068 -4,718 -0.4
------------------------------------------------------------------------------------------------------------------------------
Operating income 139,418 174,207 -34,789 -20.0
Operating income on sales in Imaging & Solutions (%) 10.2 12.4
------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PRODUCTS:
Net sales:
Unaffiliated customers 93,754 111,749 -17,995 -16.1
Intersegment 3,472 3,448 24 0.7
Total 97,226 115,197 -17,971 -15.6
------------------------------------------------------------------------------------------------------------------------------
Operating expenses 98,194 111,139 -12,945 -11.6
------------------------------------------------------------------------------------------------------------------------------
Operating income -968 4,058 -5,026 --
Operating income on sales in Industrial Products (%) -1.0 3.5
------------------------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
Unaffiliated customers 110,496 125,388 -14,892 -11.9
Intersegment -- -- -- --
Total 110,496 125,388 -14,892 -11.9
------------------------------------------------------------------------------------------------------------------------------
Operating expenses 109,917 123,925 -14,008 -11.3
------------------------------------------------------------------------------------------------------------------------------
Operating income 579 1,463 -884 -60.4
Operating income on sales in Other (%) 0.5 1.2
------------------------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -3,472 -3,448 -24
Total -3,472 -3,448 -24 --
------------------------------------------------------------------------------------------------------------------------------
Operating expenses:
Intersegment -3,473 -3,449 -24
Corporate 52,652 45,709 6,943
Total 49,179 42,260 6,919 --
------------------------------------------------------------------------------------------------------------------------------
Operating income -52,651 -45,708 -6,943 --
------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
Unaffiliated customers 1,568,018 1,640,412 -72,394 -4.4
Intersegment -- -- -- --
Total 1,568,018 1,640,412 -72,394 -4.4
------------------------------------------------------------------------------------------------------------------------------
Operating expenses 1,481,640 1,506,392 -24,752 -1.6
------------------------------------------------------------------------------------------------------------------------------
Operating income 86,378 134,020 -47,642 -35.5
Operating income on consolidated net sales (%) 5.5 8.2
------------------------------------------------------------------------------------------------------------------------------
11
Three months ended December 31, 2007 and 2008 (Millions of yen)
------------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
December 31, 2008 December 31, 2007 Change %
------------------------------------------------------------------------------------------------------------------------------
IMAGING & SOLUTIONS:
Net sales:
Unaffiliated customers 443,996 478,648 -34,652 -7.2
Intersegment -- -- -- --
Total 443,996 478,648 -34,652 -7.2
------------------------------------------------------------------------------------------------------------------------------
Operating expenses 402,781 415,296 -12,515 -3.0
------------------------------------------------------------------------------------------------------------------------------
Operating income 41,215 63,352 -22,137 -34.9
Operating income on sales in Imaging & Solutions (%) 9.3 13.2
------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PRODUCTS:
Net sales:
Unaffiliated customers 25,913 34,273 -8,360 -24.4
Intersegment 1,179 1,293 -114 -8.8
Total 27,092 35,566 -8,474 -23.8
------------------------------------------------------------------------------------------------------------------------------
Operating expenses 28,836 34,202 -5,366 -15.7
------------------------------------------------------------------------------------------------------------------------------
Operating income -1,744 1,364 -3,108 --
Operating income on sales in Industrial Products (%) -6.4 3.8
------------------------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
Unaffiliated customers 32,182 39,118 -6,936 -17.7
Intersegment -- -- -- --
Total 32,182 39,118 -6,936 -17.7
------------------------------------------------------------------------------------------------------------------------------
Operating expenses 33,184 38,820 -5,636 -14.5
------------------------------------------------------------------------------------------------------------------------------
Operating income -1,002 298 -1,300 --
Operating income on sales in Other (%) -3.1 0.8
------------------------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -1,179 -1,293 114
Total -1,179 -1,293 114 --
------------------------------------------------------------------------------------------------------------------------------
Operating expenses:
Intersegment -1,181 -1,293 112
Corporate 17,169 15,562 1,607
Total 15,988 14,269 1,719 --
------------------------------------------------------------------------------------------------------------------------------
Operating income -17,167 -15,562 -1,605 --
------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
Unaffiliated customers 502,091 552,039 -49,948 -9.0
Intersegment -- -- -- --
Total 502,091 552,039 -49,948 -9.0
------------------------------------------------------------------------------------------------------------------------------
Operating expenses 480,789 502,587 -21,798 -4.3
------------------------------------------------------------------------------------------------------------------------------
Operating income 21,302 49,452 -28,150 -56.9
Operating income on consolidated net sales (%) 4.2 9.0
------------------------------------------------------------------------------------------------------------------------------
12
(b) Geographic Segments Information
Third Quarter ended December 31, 2007 and 2008 (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Third Quarter ended Third Quarter ended
December 31, 2008 December 31, 2007 Change %
-----------------------------------------------------------------------------------------------------------------
JAPAN:
Net sales:
External customers 723,708 775,154 -51,446 -6.6
Intersegment 346,985 376,115 -29,130 -7.7
Total 1,070,693 1,151,269 -80,576 -7.0
-----------------------------------------------------------------------------------------------------------------
Operating expenses 1,010,551 1,067,012 -56,461 -5.3
-----------------------------------------------------------------------------------------------------------------
Operating income 60,142 84,257 -24,115 -28.6
Operating income on sales in Japan (%) 5.6 7.3
-----------------------------------------------------------------------------------------------------------------
THE AMERICAS:
Net sales:
External customers 351,451 321,282 30,169 9.4
Intersegment 3,172 2,727 445 16.3
Total 354,623 324,009 30,614 9.4
-----------------------------------------------------------------------------------------------------------------
Operating expenses 367,286 318,754 48,532 15.2
-----------------------------------------------------------------------------------------------------------------
Operating income -12,663 5,255 -17,918 --
Operating income on sales in the Americas (%) -3.6 1.6
-----------------------------------------------------------------------------------------------------------------
EUROPE:
Net sales:
External customers 405,532 444,548 -39,016 -8.8
Intersegment 2,046 2,366 -320 -13.5
Total 407,578 446,914 -39,336 -8.8
-----------------------------------------------------------------------------------------------------------------
Operating expenses 380,817 419,664 -38,847 -9.3
-----------------------------------------------------------------------------------------------------------------
Operating income 26,761 27,250 -489 -1.8
Operating income on sales in Europe (%) 6.6 6.1
-----------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 87,327 99,428 -12,101 -12.2
Intersegment 126,922 134,188 -7,266 -5.4
Total 214,249 233,616 -19,367 -8.3
-----------------------------------------------------------------------------------------------------------------
Operating expenses 204,186 214,312 -10,126 -4.7
-----------------------------------------------------------------------------------------------------------------
Operating income 10,063 19,304 -9,241 -47.9
Operating income on sales in Other (%) 4.7 8.3
-----------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -479,125 -515,396 36,271
Total -479,125 -515,396 36,271 --
-----------------------------------------------------------------------------------------------------------------
Operating expenses -481,200 -513,350 32,150 --
-----------------------------------------------------------------------------------------------------------------
Operating income 2,075 -2,046 4,121 --
-----------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 1,568,018 1,640,412 -72,394 -4.4
Intersegment -- -- -- --
Total 1,568,018 1,640,412 -72,394 -4.4
-----------------------------------------------------------------------------------------------------------------
Operating expenses 1,481,640 1,506,392 -24,752 -1.6
-----------------------------------------------------------------------------------------------------------------
Operating income 86,378 134,020 -47,642 -35.5
Operating income on consolidated net sales (%) 5.5 8.2
-----------------------------------------------------------------------------------------------------------------
13
Three months ended December 31, 2007 and 2008 (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
December 31, 2008 December 31, 2007 Change %
-----------------------------------------------------------------------------------------------------------------
JAPAN:
Net sales:
External customers 224,054 253,802 -29,748 -11.7
Intersegment 110,052 127,542 -17,490 -13.7
Total 334,106 381,344 -47,238 -12.4
-----------------------------------------------------------------------------------------------------------------
Operating expenses 321,681 347,595 -25,914 -7.5
-----------------------------------------------------------------------------------------------------------------
Operating income 12,425 33,749 -21,324 -63.2
Operating income on sales in Japan (%) 3.7 8.9
-----------------------------------------------------------------------------------------------------------------
THE AMERICAS:
Net sales:
External customers 134,803 107,457 27,346 25.4
Intersegment 916 627 289 46.1
Total 135,719 108,084 27,635 25.6
-----------------------------------------------------------------------------------------------------------------
Operating expenses 143,103 108,280 34,823 32.2
-----------------------------------------------------------------------------------------------------------------
Operating income -7,384 -196 -7,188 --
Operating income on sales in the Americas (%) -5.4 -0.2
-----------------------------------------------------------------------------------------------------------------
EUROPE:
Net sales:
External customers 118,625 155,240 -36,615 -23.6
Intersegment 560 635 -75 -11.8
Total 119,185 155,875 -36,690 -23.5
-----------------------------------------------------------------------------------------------------------------
Operating expenses 112,577 144,455 -31,878 -22.1
-----------------------------------------------------------------------------------------------------------------
Operating income 6,608 11,420 -4,812 -42.1
Operating income on sales in Europe (%) 5.5 7.3
-----------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 24,609 35,540 -10,931 -30.8
Intersegment 41,757 43,283 -1,526 -3.5
Total 66,366 78,823 -12,457 -15.8
-----------------------------------------------------------------------------------------------------------------
Operating expenses 64,601 71,763 -7,162 -10.0
-----------------------------------------------------------------------------------------------------------------
Operating income 1,765 7,060 -5,295 -75.0
Operating income on sales in Other (%) 2.7 9.0
-----------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -153,285 -172,087 18,802
Total -153,285 -172,087 18,802 --
-----------------------------------------------------------------------------------------------------------------
Operating expenses -161,173 -169,506 8,333 --
-----------------------------------------------------------------------------------------------------------------
Operating income 7,888 -2,581 10,469 --
-----------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 502,091 552,039 -49,948 -9.0
Intersegment -- -- -- --
Total 502,091 552,039 -49,948 -9.0
-----------------------------------------------------------------------------------------------------------------
Operating expenses 480,789 502,587 -21,798 -4.3
-----------------------------------------------------------------------------------------------------------------
Operating income 21,302 49,452 -28,150 -56.9
Operating income on consolidated net sales (%) 4.2 9.0
-----------------------------------------------------------------------------------------------------------------
(6) NOTES ON SIGNIFICANT CHANGES IN SHAREHOLDERS' INVESTMENT
Not applicable
14
-APPENDIX-
1. CONSOLIDATED SALES BY PRODUCT CATEGORY
Third Quarter ended December 31, 2007 and 2008 (Millions of yen)
-----------------------------------------------------------------------------------------------------------------------------------
Third Quarter ended Third Quarter ended Change excluding
December 31, 2008 December 31, 2007 Change % exchange impact %
-----------------------------------------------------------------------------------------------------------------------------------
[Imaging Solutions]
Imaging Solutions 1,198,102 1,261,705 -63,603 -5.0 24,077 1.9
Percentage of net sales (%) 76.4 76.9
Domestic 423,032 449,601 -26,569 -5.9 -26,569 -5.9
Overseas 775,070 812,104 -37,034 -4.6 50,646 6.2
Network System Solutions 165,666 141,570 24,096 17.0 28,680 20.3
Percentage of net sales (%) 10.6 8.6
Domestic 127,327 132,973 -5,646 -4.2 -5,646 -4.2
Overseas 38,339 8,597 29,742 346.0 34,326 399.3
Imaging & Solutions Total 1,363,768 1,403,275 -39,507 -2.8 52,757 3.8
Percentage of net sales (%) 87.0 85.5
Domestic 550,359 582,574 -32,215 -5.5 -32,215 -5.5
Overseas 813,409 820,701 -7,292 -0.9 84,972 10.4
The Americas 337,955 310,696 27,259 8.8 75,116 24.2
Europe 391,209 418,708 -27,499 -6.6 5,545 1.3
Other 84,245 91,297 -7,052 -7.7 4,311 4.7
-----------------------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 93,754 111,749 -17,995 -16.1 -15,388 -13.8
Percentage of net sales (%) 6.0 6.8
Domestic 52,904 61,390 -8,486 -13.8 -8,486 -13.8
Overseas 40,850 50,359 -9,509 -18.9 -6,902 -13.7
The Americas 11,101 11,496 -395 -3.4 1,082 9.4
Europe 14,162 16,983 -2,821 -16.6 -1,948 -11.5
Other 15,587 21,880 -6,293 -28.8 -6,036 -27.6
-----------------------------------------------------------------------------------------------------------------------------------
[Other]
Other 110,496 125,388 -14,892 -11.9 -13,867 -11.1
Percentage of net sales (%) 7.0 7.7
Domestic 101,623 105,127 -3,504 -3.3 -3,504 -3.3
Overseas 8,873 20,261 -11,388 -56.2 -10,363 -51.1
The Americas 1,411 1,761 -350 -19.9 -161 -9.1
Europe 2,892 7,954 -5,062 -63.6 -4,828 -60.7
Other 4,570 10,546 -5,976 -56.7 -5,374 -51.0
-----------------------------------------------------------------------------------------------------------------------------------
Grand Total 1,568,018 1,640,412 -72,394 -4.4 23,502 1.4
Percentage of net sales (%) 100.0 100.0
Domestic 704,886 749,091 -44,205 -5.9 -44,205 -5.9
Percentage of net sales (%) 45.0 45.7
Overseas 863,132 891,321 -28,189 -3.2 67,707 7.6
Percentage of net sales (%) 55.0 54.3
The Americas 350,467 323,953 26,514 8.2 76,037 23.5
Percentage of net sales (%) 22.4 19.7
Europe 408,263 443,645 -35,382 -8.0 -1,231 -0.3
Percentage of net sales (%) 26.0 27.0
Other 104,402 123,723 -19,321 -15.6 -7,099 -5.7
Percentage of net sales (%) 6.6 7.6
-----------------------------------------------------------------------------------------------------------------------------------
Reference: Exchange rate
US$ 1 Yen 102.83 Yen 117.32 Yen -14.49
EURO 1 Yen 150.74 Yen 162.89 Yen -12.15
* 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 13,988
million.
A1
Three months ended December 31, 2007 and 2008 (Millions of yen)
----------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Change excluding
December 31, 2008 December 31, 2007 Change % exchange impact %
----------------------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 383,997 434,313 -50,316 -11.6 6,811 1.6
Percentage of net sales (%) 76.5 78.7
Domestic 136,870 152,953 -16,083 -10.5 -16,083 -10.5
Overseas 247,127 281,360 -34,233 -12.2 22,894 8.1
Network System Solutions 59,999 44,335 15,664 35.3 19,327 43.6
Percentage of net sales (%) 11.9 8.0
Domestic 38,611 41,343 -2,732 -6.6 -2,732 -6.6
Overseas 21,388 2,992 18,396 614.8 22,059 737.3
Imaging & Solutions Total 443,996 478,648 -34,652 -7.2 26,138 5.5
Percentage of net sales (%) 88.4 86.7
Domestic 175,481 194,296 -18,815 -9.7 -18,815 -9.7
Overseas 268,515 284,352 -15,837 -5.6 44,953 15.8
The Americas 129,546 104,403 25,143 24.1 47,060 45.1
Europe 115,587 147,098 -31,511 -21.4 283 0.2
Other 23,382 32,851 -9,469 -28.8 -2,390 -7.3
----------------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 25,913 34,273 -8,360 -24.4 -6,747 -19.7
Percentage of net sales (%) 5.2 6.2
Domestic 15,590 17,139 -1,549 -9.0 -1,549 -9.0
Overseas 10,323 17,134 -6,811 -39.8 -5,198 -30.3
The Americas 2,983 3,483 -500 -14.4 36 1.0
Europe 3,283 5,457 -2,174 -39.8 -1,284 -23.5
Other 4,057 8,194 -4,137 -50.5 -3,950 -48.2
----------------------------------------------------------------------------------------------------------------------------
[Other]
Other 32,182 39,118 -6,936 -17.7 -6,433 -16.4
Percentage of net sales (%) 6.4 7.1
Domestic 29,998 33,217 -3,219 -9.7 -3,219 -9.7
Overseas 2,184 5,901 -3,717 -63.0 -3,214 -54.5
The Americas 353 366 -13 -3.6 78 21.3
Europe 683 1,974 -1,291 -65.4 -1,060 -53.7
Other 1,148 3,561 -2,413 -67.8 -2,232 -62.7
----------------------------------------------------------------------------------------------------------------------------
Grand Total 502,091 552,039 -49,948 -9.0 12,958 2.3
Percentage of net sales (%) 100.0 100.0
Domestic 221,069 244,652 -23,583 -9.6 -23,583 -9.6
Percentage of net sales (%) 44.0 44.3
Overseas 281,022 307,387 -26,365 -8.6 36,541 11.9
Percentage of net sales (%) 56.0 55.7
The Americas 132,882 108,252 24,630 22.8 47,174 43.6
Percentage of net sales (%) 26.5 19.6
Europe 119,553 154,529 -34,976 -22.6 -2,061 -1.3
Percentage of net sales (%) 23.8 28.0
Other 28,587 44,606 -16,019 -35.9 -8,572 -19.2
Percentage of net sales (%) 5.7 8.1
----------------------------------------------------------------------------------------------------------------------------
Reference: Exchange rate
US$ 1 Yen 96.21 Yen 113.24 Yen -17.03
EURO 1 Yen 126.97 Yen 163.96 Yen -36.99
* 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 4,445
million.
A2
2. FORECAST OF CONSOLIDATED PERFORMANCE
(Billions of yen)
----------------------------------------------------------------------------------------------------------------------------
Third Quarter ended Fourth Quarter ending Year ending
December 31, 2008 Change March 31, 2009 Change March 31, 2009 Change
Forecast % Forecast % Forecast %
----------------------------------------------------------------------------------------------------------------------------
Net sales 1,568.0 -4.4 581.9 0.4 2,150.0 -3.2
Gross profit 657.4 -4.5 221.5 -7.3 879.0 -5.3
Operating income 86.3 -35.5 13.6 -71.3 100.0 -44.9
Income before income taxes 60.0 -55.2 9.9 -75.5 70.0 -59.9
Net income 29.5 -65.4 5.4 -74.2 35.0 -67.1
----------------------------------------------------------------------------------------------------------------------------
Net income per share-basic (yen) 40.84 -- 7.55 -- 48.39 --
Net income per share-diluted (yen) 39.73 -- 7.35 -- 47.07 --
----------------------------------------------------------------------------------------------------------------------------
Capital expenditures 72.3 -- 25.8 -- 98.0 --
Depreciation for tangible fixed assets 55.0 -- 21.0 -- 76.0 --
R&D expenditures 93.5 -- 32.6 -- 126.0 --
----------------------------------------------------------------------------------------------------------------------------
Exchange rate (Yen/US$) 102.83 -- 90.00 -- 99.63 --
Exchange rate (Yen/EURO) 150.74 -- 120.00 -- 143.09 --
----------------------------------------------------------------------------------------------------------------------------
3. FORECAST OF CONSOLIDATED SALES BY PRODUCT CATEGORY
(Billions of yen)
---------------------------------------------------------------------------------------------------------
Fourth Quarter ending March 31, 2009 Year ending March 31, 2009
------------------------------------ --------------------------
Forecast Change Forecast(*) Change Forecast Change Forecast(*) Change
% % % %
---------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 449.8 0.5 499.9 11.6 1,647.9 -3.6 1,785.7 4.5
Domestic 155.5 -2.4 155.5 -2.4 578.5 -5.0 578.5 -5.0
Overseas 294.3 2.0 344.4 19.4 1,069.3 -2.8 1,207.1 9.7
Network System Solutions 73.1 24.9 76.1 30.2 238.7 19.3 246.4 23.2
Domestic 51.5 -6.6 51.5 -6.6 178.8 -5.0 178.8 -5.0
Overseas 21.6 545.9 24.6 638.0 59.9 402.0 67.6 466.1
Imaging & Solutions Total 522.9 3.3 576.1 13.8 1,886.6 -1.2 2,032.1 6.4
Domestic 207.0 -3.5 207.0 -3.5 757.3 -5.0 757.3 -5.0
Overseas 315.9 8.3 369.0 26.5 1,129.3 1.5 1,274.7 14.6
The Americas 163.0 54.1 180.7 70.9 500.9 20.3 566.5 36.0
Europe 124.6 -18.4 157.0 2.8 515.8 -9.7 581.2 1.7
Other 28.3 -15.0 31.3 -5.9 112.5 -9.7 126.9 1.9
---------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 22.3 -31.6 23.4 -28.2 116.0 -19.6 119.7 -17.0
Domestic 13.1 -22.1 13.1 -22.1 66.0 -15.6 66.0 -15.6
Overseas 9.2 -41.7 10.3 -34.6 50.0 -24.3 53.7 -18.7
The Americas 2.5 -46.4 2.7 -40.6 13.6 -15.8 15.3 -5.0
Europe 2.4 -55.9 3.0 -44.5 16.5 -26.1 18.0 -19.5
Other 4.3 -24.1 4.5 -20.2 19.8 -27.8 20.3 -26.1
---------------------------------------------------------------------------------------------------------
[Other]
Other 36.7 -9.6 37.2 -8.6 147.2 -11.3 148.7 -10.4
Domestic 34.0 -4.6 34.0 -4.6 135.6 -3.7 135.6 -3.7
Overseas 2.7 -45.2 3.2 -36.4 11.6 -54.0 13.1 -48.2
The Americas 0.4 -7.6 0.4 1.6 1.8 -17.5 2.0 -7.0
Europe 0.9 -33.8 1.1 -16.1 3.7 -59.3 4.2 -54.2
Other 1.4 -54.9 1.6 -50.0 6.0 -56.2 6.8 -50.7
---------------------------------------------------------------------------------------------------------
Grand Total 581.9 0.4 636.7 9.9 2,150.0 -3.2 2,300.6 3.6
Domestic 254.1 -4.8 254.1 -4.8 959.0 -5.6 959.0 -5.6
Overseas 327.8 4.9 382.6 22.4 1,191.0 -1.1 1,341.6 11.4
The Americas 165.9 49.7 183.9 65.9 516.3 18.8 583.9 34.3
Europe 127.9 -19.8 161.2 1.0 536.1 -11.1 603.6 0.1
Other 34.0 -19.3 37.4 -11.2 138.4 -16.6 154.0 -7.1
---------------------------------------------------------------------------------------------------------
* Excluding foreign exchange impact
A3