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 April 2010
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 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
April 27, 2010
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RICOH April 27, 2010
FLASH REPORT
Year ended March 31, 2010
(Results for the Period from April 1, 2009 to March 31, 2010)
Three months ended March 31, 2010
(Results for the Period from January 1, 2010 to March 31, 2010)
PERFORMANCE OUTLINE (CONSOLIDATED)
(1) Year ended March 31, 2009, 2010 and Year ending March 31, 2011 (Forecast)
(Billions of yen)
------------------------------------------------------------------------------------------------------- ----------------------
Year ended Year ended Year ending
March 31, 2009 March 31, 2010 March 31, 2011
(Results) (Results) Change (Forecast) Change
------------------------------------------------------------------------------------------------------- ----------------------
Domestic sales 938.3 876.5 -6.6% 900.0 2.7%
Overseas sales 1,153.3 1,139.7 -1.2% 1,150.0 0.9%
Net sales 2,091.6 2,016.3 -3.6% 2,050.0 1.7%
Gross profit 854.3 822.3 -3.8% 835.0 1.5%
Operating income 74.5 65.9 -11.5% 85.0 28.8%
Income before income taxes 30.9 57.5 85.9% 75.0 30.4%
Net income attributable to Ricoh Company, Ltd. 6.5 27.8 326.8% 35.0 25.6%
------------------------------------------------------------------------------------------------------- ----------------------
Exchange rate (Yen/US$) 100.55 92.91 -7.64 90.00 -2.91
Exchange rate (Yen/EURO) 143.74 131.21 -12.53 120.00 -11.21
------------------------------------------------------------------------------------------------------- ----------------------
Net income attributable to Ricoh Company, Ltd. shareholders per
share-basic (yen) 9.02 38.41 29.39 48.24 9.83
Net income attributable to Ricoh Company, Ltd. shareholders per
share-diluted (yen) 8.75 37.36 28.61 46.92 9.56
------------------------------------------------------------------------------------------------------- ----------------------
Return on equity attributable to Ricoh Company, Ltd.(%) 0.6 2.9 2.3 -- --
Income before income taxes on total assets (%) 1.3 2.3 1.0 -- --
Operating income on net sales (%) 3.6 3.3 -0.3 4.1 0.8
------------------------------------------------------------------------------------------------------- ----------------------
Total assets 2,513.4 2,383.9 -129.5 -- --
Shareholders' investment 975.3 973.3 -2.0 -- --
Interest-bearing debt 779.1 684.4 -94.7 -- --
------------------------------------------------------------------------------------------------------- ----------------------
Shareholders' investment ratio (%) 38.8 40.8 2.0 -- --
------------------------------------------------------------------------------------------------------- ----------------------
Shareholders' investment per share (yen) 1,344.08 1,341.45 -2.63 -- --
------------------------------------------------------------------------------------------------------- ----------------------
Cash flows from operating activities 87.4 190.7 103.2 -- --
Cash flows from investing activities -283.1 -89.5 193.6 -- --
Cash flows from financing activities 295.9 -113.3 -409.2 -- --
Cash and cash equivalents at end of period 258.4 242.1 -16.3 -- --
------------------------------------------------------------------------------------------------------- ----------------------
Capital expenditures 96.9 66.9 -29.9 72.0 5.0
Depreciation for tangible fixed assets 74.8 70.3 -4.5 67.0 -3.3
R&D expenditures 124.4 109.8 -14.5 112.0 2.1
------------------------------------------------------------------------------------------------------- ----------------------
Number of employees (Japan) (thousand people) 40.9 41.1 0.3 -- --
Number of employees (Overseas) (thousand people) 67.6 67.4 -0.2 -- --
------------------------------------------------------------------------------------------------------- ----------------------
RICOH COMPANY, LTD.
* Ricoh bases the forecast estimates for March 31, 2011 above upon
information currently available to management, which involves risks and
uncertainties that could cause actual results to differ materially from
those projected.
1
(2) Three months ended March 31, 2009 and 2010
(Billions of yen)
---------------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2010 March 31, 2009 Change
---------------------------------------------------------------------------------------------------------------------------------
Domestic sales 233.4 250.0 7.1%
Overseas sales 290.2 291.5 0.5%
Net sales 523.6 541.6 3.4%
Gross profit 196.8 213.9 8.7%
Operating income -11.8 28.2 --
Income before income taxes -29.1 26.7 --
Net income attributable to Ricoh Company, Ltd. -23.0 13.4 --
---------------------------------------------------------------------------------------------------------------------------------
Exchange rate (Yen/US$) 93.61 90.76 -2.85
Exchange rate (Yen/EURO) 122.35 125.64 3.29
---------------------------------------------------------------------------------------------------------------------------------
Net income attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) -31.92 18.54 --
Net income attributable to Ricoh Company, Ltd. shareholders per share-diluted (yen) -- 18.04 --
---------------------------------------------------------------------------------------------------------------------------------
Return on equity (%) -2.2 1.4 3.6
Income before income taxes on total assets (%) -1.2 1.1 2.3
Operating income on net sales (%) -2.3 5.2 7.5
---------------------------------------------------------------------------------------------------------------------------------
Capital expenditures 24.6 18.6 -5.9
Depreciation for tangible fixed assets 19.8 18.4 -1.3
R&D expenditures 30.9 27.9 -2.9
---------------------------------------------------------------------------------------------------------------------------------
(3) Half year ended September 30, 2009 and Half year ending September 30, 2010
(Forecast)
(Billions of yen)
---------------------------------------------------------------------------------------------
Half year ended Half year ending
September 30, 2009 September 30, 2010
(Results) (Forecast) Change
---------------------------------------------------------------------------------------------
Domestic sales 421.6 430.0 2.0%
Overseas sales 567.1 560.0 -1.3%
Net sales 988.7 990.0 0.1%
Gross profit 398.2 400.0 0.5%
Operating income 13.9 30.0 114.4%
Income before income taxes 6.7 23.0 239.9%
Net income attributable to Ricoh Company, Ltd. 1.8 8.0 342.5%
---------------------------------------------------------------------------------------------
Exchange rate (Yen/US$) 95.56 90.00 -5.56
Exchange rate (Yen/EURO) 133.24 120.00 -13.24
---------------------------------------------------------------------------------------------
Capital expenditures 38.4 42.0 3.5
Depreciation for tangible fixed assets 33.9 30.0 -3.9
R&D expenditures 55.9 57.0 1.0
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2
RICOH COMPANY, LTD. AND CONSOLIDATED SUBSIDIARIES
FLASH REPORT (CONSOLIDATED RESULTS FOR THE YEAR ENDED MARCH 31, 2010)
1. RESULTS FOR THE PERIOD FROM APRIL 1, 2009 TO MARCH 31, 2010
(1) Operating Results
(Millions of yen)
-------------------------------------------------------------------------------
Year ended Year ended
March 31, 2009 March 31, 2010
-------------------------------------------------------------------------------
Net sales 2,091,696 2,016,337
(% change from the previous corresponding
period) -5.8 -3.6
Operating income 74,536 65,997
(% change from the previous corresponding
period) -58.9 -11.5
Income before income taxes 30,939 57,524
(% change from the previous corresponding
period) -82.3 85.9
Net income attributable to Ricoh Company, Ltd. 6,530 27,873
(% change from the previous corresponding
period) -93.9 326.8
Net income attributable to Ricoh Company, Ltd.
shareholders per share-basic (yen) 9.02 38.41
Net income attributable to Ricoh Company, Ltd.
shareholders per share-diluted (yen) 8.75 37.36
-------------------------------------------------------------------------------
Return on equity attributable to Ricoh Company,
Ltd.(%) 0.6 2.9
Income before income taxes on total assets (%) 1.3 2.3
Operating income on net sales (%) 3.6 3.3
-------------------------------------------------------------------------------
Notes:
i. Equity in income of affiliates: Yen 6 million (Yen 71 million in previous
fiscal year)
(2) Financial Position
(Millions of yen)
-------------------------------------------------------------------------------
March 31, 2009 March 31, 2010
-------------------------------------------------------------------------------
Total assets 2,513,495 2,383,943
Total equity 1,024,350 1,023,874
Shareholders' investment 975,373 973,341
Shareholders' investment ratio (%) 38.8 40.8
Shareholders' investment per share (yen) 1,344.08 1,341.45
-------------------------------------------------------------------------------
(3) Cash Flows
(Millions of yen)
-------------------------------------------------------------------------------
Year ended Year ended
March 31, 2009 March 31, 2010
-------------------------------------------------------------------------------
Cash flows from operating activities 87,488 190,703
Cash flows from investing activities -283,172 -89,570
Cash flows from financing activities 295,914 -113,378
Cash and cash equivalents at end of period 258,484 242,165
-------------------------------------------------------------------------------
2. DIVIDEND INFORMATION
(Millions of yen)
------------------------------------------------------------------------------------------
Year ended Year ended Year ending
March 31, 2009 March 31, 2010 March 31, 2011
------------------------------------------------------------------------------------------
Cash dividends, applicable to the year (yen) 33.00 33.00 33.00
Half year (yen) 18.00 16.50 16.50
Year-end (yen) 15.00 16.50 16.50
Total annual dividends (millions of yen) 23,949 23,945 --
Payout Ratio (%) 365.9 85.9 68.4
Dividends on shareholders' equity (%) 2.3 2.3 --
------------------------------------------------------------------------------------------
3. FORECAST OF OPERATING RESULTS FROM APRIL 1, 2010 TO MARCH 31, 2011
(Millions of yen)
-------------------------------------------------------------------------------
Half year ending Year ending
September 30, 2010 March 31, 2011
-------------------------------------------------------------------------------
Net sales 990,000 2,050,000
Operating income 30,000 85,000
Income before income taxes 23,000 75,000
-------------------------------------------------------------------------------
Net income attributable to Ricoh Company,
Ltd. 8,000 35,000
-------------------------------------------------------------------------------
Net income attributable to Ricoh Company,
Ltd. shareholders per share (yen) 11.03 48.24
-------------------------------------------------------------------------------
3
4. OTHERS
(1) Changes in significant subsidiaries: No
(2) Change in accounting method has been made.
(3) Number of common stock outstanding (including treasury stock):
As of March 31, 2010 744,912,078 shares As of March 31, 2009 744,912,078 shares
(4) Number of treasury stock:
As of March 31, 2010 19,320,723 shares As of March 31, 2009 19,232,352 shares
(REFERENCE) NON-CONSOLIDATED INFORMATION
1. RESULTS FOR THE PERIOD FROM APRIL 1, 2009 TO MARCH 31, 2010
(1) Operating Results
(Millions of yen)
-------------------------------------------------------------------------------
Year ended Year ended
March 31, 2009 March 31, 2010
-------------------------------------------------------------------------------
Net sales 948,325 849,037
(% change from the previous corresponding period)
-8.5 -10.5
Operating income 25,190 14,702
(% change from the previous corresponding period)
-64.3 -41.6
Ordinary income 39,744 26,909
(% change from the previous corresponding period)
-50.1 -32.3
Net income 23,091 23,305
(% change from the previous corresponding period)
-57.8 0.9
Net income attributable to Ricoh Company, Ltd.
shareholders per share-basic (yen) 31.90 32.12
Net income attributable to Ricoh Company, Ltd.
shareholders per share-diluted (yen) 31.01 31.22
-------------------------------------------------------------------------------
(2) Financial Position
(Millions of yen)
-------------------------------------------------------------------------------
March 31, 2009 March 31, 2010
-------------------------------------------------------------------------------
Total assets 1,260,601 1,272,977
Net assets 764,782 767,065
Equity ratio (%) 60.7 60.3
Net assets per share (yen) 1,053.88 1,057.15
-------------------------------------------------------------------------------
* Equity capital March 31,2010 Yen 767,065 million March 31,2009 Yen 764,782 million
4
1. PERFORMANCE
(1) OPERATING RESULTS
*Overview
Consolidated net sales of Ricoh Group for fiscal year 2009 (April 1, 2009 to
March 31, 2010) decreased by 3.6% from the previous corresponding period, to
Yen 2,016.3 billion. During this period, the average yen exchange rates were
Yen 92.91 against the U.S. dollar (up Yen 7.64) and Yen 131.21 against the euro
(up Yen 12.53). Sales would have increased by 1.1% excluding the effects of
foreign currency exchange fluctuations.
The Japanese economy has shown some recovery from one of the worst downturns in
decades starting from the second half of the previous year. However, there is
as yet no sign of a self-sustaining recovery and uncertainty remains high. The
business environment surrounding our company has shown some modest recovery in
the latter half of the year, but the situation continues to be harsh. Under
such conditions domestic sales in all the segments such as the Imaging &
Solutions, Industrial Products and Other decreased 6.6% from the previous
fiscal year.
Our overseas sales remained severe due to the flagging economy and appreciation
of the yen. Even under these conditions, the Americas region showed a 10.9%
sales increase (20.2% increase less exchange rate effect) year on year due to
the strengthened sales structure and expansion of sales channel through the
acquisition of IKON. Meanwhile, sales in the European region decreased 12.4%
(4.1% decrease less exchange rate effect) year on year, China, Asia and other
regions showed a 2.8% decrease (3.3% increase less exchange rate effect) in
sales, even though there were improvements in the latter half of the year. As a
result, total overseas sales has decreased by 1.2%. Overseas sales would have
increased by 7.3% from the previous corresponding period, excluding the effects
of foreign currency fluctuations.
Consolidated gross profit decreased by 3.8% from the previous corresponding
period, to Yen 822.3 billion due to the decrease in sales and the appreciation
of the yen.
Selling, general and administrative expenses decreased by 3.0% as compared to
the previous corresponding period, to Yen 756.3 billion due to restructuring
activities initiated by the company. This reduction was achieved despite the
fact that IKON was included into the consolidated financial statements from the
third quarter of the previous fiscal year.
As a result, operating income decreased by 11.5% from the previous
corresponding period, to Yen 65.9 billion.
Other (income) expense were reduced compared to previous fiscal year. Income
before income taxes increased by 85.9% to Yen 57.5 billion from the previous
corresponding period.
As a result, net income attributable to Ricoh Company, Ltd. increased by Yen
21.3 billion from the previous corresponding period, to Yen 27.8 billion.
Cash and cash equivalents decreased from the end of the previous corresponding
period to a standard level to reflect upon the current financial situation.
Inventory decreased due to inventory adjustment. As a result, total assets
decreased by Yen 129.5 billion from the end of the previous corresponding
period, to Yen 2,383.9 billion.
Interest-bearing debt decreased by Yen 94.7 billion from the end of the
previous corresponding period, to Yen 684.4 billion due to compression of free
cash flow and cash and cash equivalents.
For net assets, retained earnings fluctuated due to payment of dividends and
net income attributable to Ricoh Company, Ltd. Moreover, increase in the amount
of foreign currency translation adjustments due to exchange rate fluctuations
caused other comprehensive income to increase from the previous corresponding
period. As a result, shareholders' equity decreased by Yen 2.0 billion from the
end of the previous corresponding period, to Yen 973.3 billion. Furthermore,
from fiscal 2010 the company adopted FASB Accounting Standards Codification
Topic 810 (formerly SFAS No. 160, "Noncontrolling Interests in Consolidated
Financial Statements--an amendment to ARB No.50"). This standard changes the
presentation and disclosure of noncontrolling interests in subsidiaries,
formerly known as minority interest, within the net asset portion of the
consolidated financial statements. Net assets including noncontrolling
interests amount to Yen 1,023.8 billion. Total net assets decreased by Yen 0.4
billion from the end of the previous corresponding period when comparing
figures have been reclassified to conform to the current year's presentation.
A year-end cash dividend of Yen 16.50 per share is proposed. Combined with the
interim dividend of Yen 16.50 per share, the total dividend for the fiscal year
ended March 31, 2009 will be Yen 33.00 per share.
5
*Consolidated Sales by Product Line
Imaging & Solutions (Sales down 2.3% to Yen 1,790.2 billion)
------------------------------------------------------------
Net sales in the Imaging & Solutions segment which consists of Imaging
Solutions and Network System Solutions decreased by 2.3% from the previous
corresponding period, to Yen 1,790.2 billion.
The breakdown of sales for Imaging Solutions and Network System Solutions is as
shown below.
The sales would have increased by 2.8% excluding the effects of foreign
currency fluctuations.
Imaging Solutions (Sales down 5.2% to Yen 1,516.1 billion)
----------------------------------------------------------
Acquisition of IKON in the previous fiscal year has contributed to both the
strengething of the sales structure and increasing sales of printers and MFP
in the Americas region market. However, due to the economic downturn and
appreciation of the yen, sales have dropped in all other regions. Sales in
this category decreased by 5.2% as compared to the previous corresponding
period, to Yen 1,516.1 billion.
Sales would have increased by 0.2% excluding the effects of foreign currency
fluctuations.
Network System Solutions (Sales up 16.9% to Yen 274.0 billion)
------------------------------------------------------------
Sales in this category increased by 16.9% as compared to the previous
corresponding period, to Yen 274 billion due to the strengthening of direct
sales.
Industrial Products (Sales down 12.0% to Yen 101.6 billion)
-----------------------------------------------------------
Net sales in the Industrial Products segment decreased by 12.0% from the
previous corresponding period, to Yen 101.6 billion. Sales of thermal media,
semiconductor devices and electronic components decreased.
Other (Sales down 13.0% to Yen 124.4 billion)
---------------------------------------------
Net sales in this category decreased by 13.0% from the previous corresponding
period, to Yen 124.4 billion.
[Graph 1] Consolidated sales by Product Line
The graphs are omitted. The data in the omitted graphs can be shown at the
schedule 1 in APPENDIX B.
6
* Consolidated Sales by Geographic Area
Japan (Sales down 6.6% to Yen 876.5 billion)
--------------------------------------------
The Japanese economy has shown signs of recovery from one of the worst
downturns in decades starting from the second half of the previous year but the
stock market remains stagnant, capital assets have been held back due to
sluggish sales performance and appreciation of the yen, and personal
consumption remain weak. The business environment surrounding our company has
shown some modest recovery in the latter half of the year, but the situation
continues to be harsh. Under such conditions domestic sales in all the segments
such as the Imaging & Solutions, Industrial Products and Other decreased.
Overall sales in Japan decreased by 6.6% from the previous corresponding
period, to Yen 876.5 billion.
The Americas (Sales up 10.9% to Yen 557.6 billion)
--------------------------------------------------
Economic slowdown and exchange rate fluctuation had an effect on the overall
performance in the Americas region economy, but due to the strengthened sales
structure and expansion of sales channel through the acquisition of IKON, sales
in the Imaging & Solutions segment increased from the previous fiscal year.
As a result, overall sales in the Americas increased by 10.9% from the previous
corresponding period, to Yen 557.6 billion. The sales in this area would have
increased by 20.2% excluding the effects of foreign currency fluctuations.
Europe (Sales down 12.4% to Yen 458.5 billion)
----------------------------------------------
In addition to the economic downturn in the later half of the year, the debt
crisis in Greece and Dubai have all contributed to the prolonged economic
stagnation in the European region. Due to such situation, the euro depreciated
sharply against the yen. In the severe business environment, sales in the
Imaging & Solutions segment as well as sales in Industrial Products and Other
segments all decreased from the previous corresponding period.
As a result, overall sales in Europe decreased by 12.4% from the previous
corresponding period, to Yen 458.5 billion. The sales in this area would have
decreased by 4.1% excluding the effects of foreign currency fluctuations.
Other (Sales down 2.8% to Yen 123.4 billion)
--------------------------------------------
The Other segment includes China, other Asian countries and Oceania. Due mainly
to the appreciation of the yen, sales in the Imaging & Solutions segment as
well as sales in Industrial Products and Other segments all decreased from the
previous corresponding period.
As a result, overall sales in Other decreased by 2.8% from the previous
corresponding period, to Yen 123.4 billion. The sales in this area would have
increased by 3.3% excluding the effects of foreign currency fluctuations.
[Graph 2] Consolidated sales by geographic area
The graphs are omitted. The data in the omitted graphs can be shown at the
schedule 2 in APPENDIX B.
7
*Segment Information
Business Segment
----------------
Imaging & Solutions
-------------------
Sales of Imaging & Solutions segment increased in the Americas region due to
the strengthened sales structure and expansion of sales channel through the
acquisition of IKON. However, sales in other regions have dropped due to the
stagnant economic recovery and appreciation of the yen. As a result, overall
sales within the Imaging & Solutions segment decreased by 2.3% from the
previous corresponding period, to Yen 1,790.2 billion.
Operating income decreased by 3.4% from the previous corresponding period, to
Yen 140.4 billion due to decrease in sales and the appreciation of the yen.
Industrial Products
-------------------
Sales in semiconductors, thermal media and electronic components decreased. As
a result, overall sales in the Industrial Products segment decreased by 11.3%
from the previous corresponding period, to Yen 106.1 billion. Reduction of
costs and cutback in spending have both contributed to reducing the amount of
total operating loss.
Other
-----
Sales of digital camera decreased. As a result, sales in the Other segment
decreased by 13.0% from the previous corresponding period to Yen 124.4 billion,
and operating loss amounted to Yen 3.4 billion.
(Billions of yen)
----------------------------------------------------------------------------------
Year ended Year ended
March 31, 2009 March 31, 2010 Change (%)
----------------------------------------------------------------------------------
Imaging & Solutions:
Net sales 1,833.0 1,790.2 -2.3
Operating income 145.3 140.4 -3.4
Operating income
on sales(%) 7.9 7.8 -0.1points
Identifiable assets 1,870.1 1,827.0 -2.3
Capital expenditures 87.6 60.4 -31.0
Depreciation 64.3 62.4 -3.0
----------------------------------------------------------------------------------
Industrial Products:
Net sales 119.6 106.1 -11.3
Operating income -4.9 -1.3 --
Operating income
on sales(%) -4.1 -1.3 -2.8points
Identifiable assets 83.4 78.4 -5.9
Capital expenditures 4.5 3.3 -27.4
Depreciation 6.1 4.3 -28.5
----------------------------------------------------------------------------------
Other:
Net sales 143.0 124.4 -13.0
Operating income 0.3 -3.4 --
Operating income
on sales(%) 0.3 -2.8 -3.1points
Identifiable assets 97.0 89.3 -8.0
Capital expenditures 2.7 1.5 -44.1
Depreciation 2.4 1.9 -21.3
----------------------------------------------------------------------------------
8
Geographic Segment
------------------
Japan
-----
Due to global recession and the appreciation of the Yen, overall sales in Japan
decreased by 8.6% from the previous corresponding period, to Yen 1,273.4
billion. Consequently, operating income decreased by 46.3% to Yen 33.0 billion
and operating income on net sales decreased by 1.8 percentage points to 2.6%.
The Americas
------------
The strengthened sales structure and expansion of sales channel through the
acquisition of IKON have contributed to the increase in sales by 10.5% to Yen
560.0 billion. Total operating loss was reduced to Yen 11.8 billion compared to
the pervious corresponding period.
Europe
------
Sales decreased due to business recession in Europe. As a result, net
consolidated sales in Europe decreased by 11.6% to Yen 463.0 billion. Operating
income, on the other hand, increased by 55.4% from the pervious corresponding
period, to Yen 30.1 billion due to strengething of sales structures and other
restructuring activities.
Other
-----
Even though there were signs of recovery in other segmented regions, the
appreciation of the yen has caused sales to decrease by 7.4% from the previous
corresponding period, to Yen 245.9 billion. Operating income, on the other
hand, increased by 13.0% from the pervious corresponding period, to Yen 14.3
billion due to the cost reduction activities conducted by sales subsidiaries in
China.
[Graph 3] Geographic segment information
The graphs are omitted. The data in the omitted graphs can be shown at the
schedule 3 in APPENDIX B.
9
*Forecast for the entire fiscal year
Economic projections and Ricoh Group's strategies for fiscal year 2010
----------------------------------------------------------------------
The global economy has shown slight sign of recovery in the latter of the
fiscal year from the serious recession as the financial crisis, the
deteriorating employment conditions, the decline in the personal consumption
and other factors triggered by subprime loan crisis. However, there is no
strong feeling of recovery and considering weak employment in European market
and financial crisis in Greece, the sense of uncertainty is expected to
continue.
Customer needs will become increasingly diversified in the Ricoh Group's
markets. Competition is expected to heat up in the area of Imaging & Solutions,
especially the area of color products and solution business. Competition is
expected to be fierce in both the Industrial Products and Other segments as
companies try to respond to ever-diversifying customer needs.
Even under current economic conditions, we will continue expand our business
and implement structural reform to strengthen the company's financial and
business position to be prepared for facing the challenges of the future.
Our performance forecast for fiscal year 2010 is as follows:
Exchange Rate Assumptions for the full year ended March 31, 2011
US$ 1 = Yen 90.00 (Yen 92.91 in previous fiscal year)
EURO 1 = Yen 120.00 (Yen 131.21 in previous fiscal year)
(Billions of yen)
------------------------------------------------------------------------------
Year ended Year ending
March 31, 2010 March 31, 2011
(Results) (Forecast) Change
------------------------------------------------------------------------------
Domestic sales 876.5 900.0 2.7%
Overseas sales 1,139.7 1,150.0 0.9%
Net sales 2,016.3 2,050.0 1.7%
Gross profit 822.3 835.0 1.5%
Operating income 65.9 85.0 28.8%
Income before income taxes 57.5 75.0 30.4%
Net income attributable to
Ricoh Company, Ltd. 27.8 35.0 25.6%
------------------------------------------------------------------------------
Notes:
* Ricoh bases the forecast estimates for the year ending March 31, 2010 above
upon information currently available to management, which involves risks and
uncertainties that could cause actual results to differ materially from
those projected.
10
(2) FINANCIAL POSITION
A) Assets, Liabilities, and Equity at Year-End
(Billions of yen)
-----------------------------------------------------------------------------------
March 31, 2009 March 31, 2010 Change
-----------------------------------------------------------------------------------
Total Assets 2,513.4 2,383.9 -129.5
Total Equity 1,024.4 1,023.8 -0.4
Shareholders' investment 975.3 973.3 -2.0
Shareholders' investment ratio (%) 38.8% 40.8% -2.0points
-----------------------------------------------------------------------------------
For Assets, cash and cash equivalents decreased from the end of the previous
corresponding period to a standard level to reflect upon the current financial
situation. In addition, inventory decreased due primarily to continuous
activities in supply chain management. As a result, total assets decreased by
Yen 129.5 billion to Yen 2,383.9 billion.
For Liabilities, interest-bearing debt decreased by Yen 129.0 billion from the
end of the previous corresponding period, to Yen 1,360.0 billion due to
compression of free cash flow and cash and cash equivalents.
For the shareholders' equity, retained earnings fluctuated due to payment of
dividends and net income attributable to Ricoh Company, Ltd. Moreover, increase
in the amount of foreign currency translation adjustments due to exchange rate
fluctuations caused other comprehensive income to increase from the previous
corresponding period. Total shareholders' investment decreased by Yen 0.4
billion from the end of the previous corresponding period, to Yen 1023.8billion.
B) Cash Flows
(Billions of yen)
--------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2009 March 31, 2010 Change
--------------------------------------------------------------------------------------------
Cash flows from operating activities 87.4 190.7 103.2
Cash flows from investing activities -283.1 -89.5 193.6
Cash flows from financing activities 295.9 -113.3 -409.2
Cash and Cash Equivalents at end of period 258.4 242.1 -16.3
--------------------------------------------------------------------------------------------
Net cash provided by operating activities increased by Yen 103.2 billion from
the previous corresponding period, to Yen 190.7 billion due primarily to
increase of net income attributable to Ricoh Company, Ltd. and inventory
reduction due from continuous activities in supply chain management.
Net cash used in investing activities decreased by Yen 193.6 billion to Yen
89.5 billion from the previous corresponding period. Net cash used in investing
activities in the previous corresponding period consisted primarily of a
payment in connection with the acquisition of IKON.
As a result, free cash flow generated from operating activities and investment
activities increased to Yen 101.1 billion while cash outflows amounted to Yen
195.6 billion in the previous corresponding period.
Net cash used in financing activities amounted to Yen 113.3 billion due
primarily to decrease of interest bearing debt by using free cash flow
generated in this fiscal year and available cash and cash equivalents.
As a result of the above, cash and cash equivalents as of the end of this
fiscal year decreased by Yen 16.3 billion from the end of the previous
corresponding period, to Yen 242.1 billion.
C) Cash Flow Indices
-----------------------------------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended Year ended
March 31, 2006 March 31, 2007 March 31, 2008 March 31, 2009 March 31, 2010
-----------------------------------------------------------------------------------------------------------------------
Total Equity / Total assets 47.0% 47.7% 48.8% 38.8% 40.8%
Market capitalization / Total assets 82.2% 86.4% 53.3% 33.6% 44.4%
Interest bearing debt / Operating cash flow 2.2 2.5 2.0 8.9 3.6
Operating cash flow / Interest expense 33.7 22.8 40.2 14.9 23.4
-----------------------------------------------------------------------------------------------------------------------
Notes:
i. All indices are calculated based on consolidated data.
ii. Market capitalization equals the stock price at the end of fiscal year
multiples by the number of shares outstanding at the end of fiscal year.
iii. Operating cash flows is shown in consolidated statement of cash flow.
Interest bearing debt equals all debt in consolidated balance sheets.
11
(3) DIVIDEND POLICY
Ricoh endeavors to ensure that policies are regularly updated to take
the dividend payout ratio into consideration in the payment of
dividends, while at the same time increasing retained earnings for the
enhancement of corporate structure and the new business generation.
Furthermore, these retained earnings will be used both in the
reinforcement of core businesses and for investment in new fields with
both medium-term and long-term perspectives.
The total dividend per share for the fiscal year ended March 31, 2010
will be Yen 33.00 (same as the dividend for the fiscal year ended
March 31, 2009) and for the fiscal year ended March 31, 2011 will be Yen
33.00 respectively.
(4) RISK FACTORS
Ricoh is exposed to various risks which include the risks listed below.
Although certain risks that may affect Ricoh's businesses are listed in
this section, this list is not exhaustive. Ricoh's business may in the
future also be affected by other risks that are currently unknown or
that are not currently considered significant or material.
-Ability to respond to rapid technological changes in the document
imaging and management industry
-Highly competitive markets
-The risks of international operations and the risks of overseas
expansion
-Economic trends in Ricoh's major markets
-Foreign exchange fluctuations
-Crude oil price fluctuations
-Government regulation that can limit its activities or increase its
cost of operations
-Internal control evaluations and attestation over financial
reporting under section 404 of the Sarbanes-Oxley Act of 2002
-Dependence on protecting its intellectual property rights
-Dependence on securing and retaining specially skilled personnel
-Adverse affection by its employee benefit obligations
-Environmental laws and regulations
-Risks associated with Ricoh's equipment financing business
-Product liability claims that could significantly affect its
financial condition
-Alliances with other entities
-Catastrophic disaster, information technology problems or infectious
diseases
12
2. GROUP POSITION
The Ricoh Group comprises 266 subsidiaries and 6 affiliates as of March 31,
2010.
Their development, manufacturing, sales, and service activities center on
Office Solutions, Industrial Products, and Other.
Ricoh Company, Ltd., a parent company, heads development. The parent company
and subsidiaries or affiliates maintain an integrated domestic and
international manufacturing structure. Below, we have listed our main product
areas and the positions of key subsidiaries and affiliates.
[Imaging & Solutions]
In this business category, Ricoh provides products and systems that support the
enhancement of the office productivity of customers. Major products include:
Digital/analog copiers, MFPs (multifunctional printers), laser printers,
facsimile machines, and digital duplicators. Ricoh also provides solution
systems including personal computers and servers, utilizing its information
technology. Another business Ricoh also provides are support, service, and
related supplies, as well as support and service including IT environment setup
and network administration.
[Main Subsidiaries and Affiliates]
Production
Japan...Tohoku Ricoh Co., Ltd., Ricoh Elemex Corporation,
Ricoh Unitechno Co., Ltd., Hasama Ricoh Inc.,
Ricoh Microelectronics Co., Ltd., Ricoh Keiki Co., Ltd., and
Ricoh Printing Systems, Ltd.
The Americas...Ricoh Electronics, Inc.
Europe...Ricoh UK Products Ltd., Ricoh Industrie France S.A.S.
Other regions...Ricoh Asia Industry (Shenzhen) Ltd.,
Shanghai Ricoh Digital Equipment Co., Ltd.
Sales and Service
Japan...Ricoh Hokkaido Co., Ltd., Ricoh Tohoku Co., Ltd.,
Ricoh Sales Co., Ltd., Ricoh Chubu Co., Ltd.,
Ricoh Kansai Co., Ltd., Ricoh Chugoku Co., Ltd.,
Ricoh Kyushu Co., Ltd., Ricoh Technosystems Co., Ltd.,
Ricoh Leasing Co., Ltd., and Ricoh Logistics System Co., Ltd.
The Americas...Ricoh Americas Corporation,
InfoPrint Solutions Company, LLC, IKON Office Solutions, Inc.
Europe...Ricoh Europe PLC, Ricoh Deutschland GmbH, Ricoh UK Ltd.,
Ricoh France S.A.S., Ricoh Espana S.L.U., Ricoh Italia S.p.A.
and NRG Group PLC
Other regions...Ricoh China Co., Ltd., Ricoh Hong Kong Ltd.,
Ricoh Asia Pacific Operations Ltd., Ricoh Asia Pacific Pte. Ltd.,
Ricoh Australia Pty, Ltd., and Ricoh New Zealand Ltd.
[Industrial Products]
Manufacturing and marketing thermal media, optical equipments, semiconductors,
electronic component and measuring equipments
[Main Subsidiaries and Affiliates]
Production and Sales
Japan...Ricoh Optical Industries Co., Ltd., Ricoh Elemex Corporation, and
Ricoh Microelectronics Co., Ltd.
The Americas...Ricoh Electronics, Inc.
Europe...Ricoh Industrie France S.A.S.
[Other]
Supplying optical discs and digital camera, and providing leasing and logistics
services
[Main Subsidiaries and Affiliates]
Sales
Ricoh Americas Corporation, Ricoh Europe PLC
Other
Ricoh Leasing Co., Ltd., Ricoh Logistics System Co., Ltd.
[Chart of Business System]
The following chart is showing the group positions.
13
[Chart of Business System]
The chart of group position is omitted.
14
3. MANAGEMENT POLICY
(1) Basic Management Policy
Ricoh Group announced a group vision "Winner in the 21st Century" (Build a
strong global RICOH brand), and aims to gain the strong trust of customers by
continually contributing to greater customer productivity and knowledge
creation, thereby continuing to develop. To these ends, Ricoh is providing
innovative products and services for all customers who handle information at
work in offices and in their lives out of the office, based on the Ricoh values
of "Harmonize with the environment", "Simplify your life and work", and
"Support knowledge management".
In the 16th Mid-Term Management Plan for the period April 2008 to March 2011,
the following 5 basic strategies are established for group management.
i. Become the top company in targeted business areas
ii. Strengthen and accelerate environmental management
iii. Promote Ricoh Quality
iv. Create new business lines
v. Build a strong global RICOH brand
(2) Medium and Long Term Management Strategy
Up to now, in Ricoh Group's main business of Imaging & office solutions, in
addition to manufacturing and sales of simple copying machines and printers,
Ricoh has provided document management systems through digital image equipment
and networking, thereby improving customers' businesses. Ricoh also implemented
reforms for a higher productivity business structure.
Specifically, "Work flow", "Security", "TCO (Total Cost of Ownership)",
"Compliance", and "Environment" are important issues for customers. Ricoh will
focus on these to provide greater customer value.
For example, Ricoh will construct and apply document systems with centralized
storage, search and output functions, and provide management services of
customer's concentrated output center and multiple output devices. Furthermore,
Ricoh will support utilization of IT solutions and provide IT services
emphasized on customer's security and business continuity, and thereby
contribute to raising overall customer business productivity.
Ricoh continues to develop production printing business, and provides suitable
solutions such as workflow improvement, in order to meet the requirements of
all customers.
In the industrial market, allocation of business resources is focused on
businesses where large growth is expected. Ricoh will put efforts into
strengthening cooperation between technical fields and business areas in order
to combine diverse fields and create new businesses.
Ricoh is also making further advances in business development in emerging
markets mainly China, in both the Imaging & office solutions market and the
industrial market.
In order to increase or create customer value and boost earning power in each
business, it is important to secure competitive superiority through technology.
Ricoh will continue to actively work to strengthen its technical abilities.
Basic strategy achievements this period until today are as follows.
In the Imaging & office solutions market, Ricoh continually creates new color
multifunction machines and color laser printers, further enhancing the product
line. As to digital color printers, Ricoh released imagio MP C7501 with high
productivity of printing 70 pages per minute and high image quality satisfies
the needs of device consolidation in general offices, and also meet the light
production needs of data center in major accounts and printing service
industries.
Ricoh released imagio MP C1800 series with the advanced features in low price
and pursuing space saving mainly for the small offices.
Furthermore, Ricoh accomplished to release imagio MP 6001GP with the world's
first toner utilizing biomass resins that are recyclable and contribute less to
global warming.
By achieving excellent environmental performance, higher image quality, and
advanced security functions in these new product launches, Ricoh's stronger
product line has led it to attain large market shares in color
copier/multifunction equipment markets in Japan and overseas.
15
We have introduced the new Ricoh IPSiO GX e3300, the latest installment in our
Jel-jet line of color-inkjet printers. The Ricoh IPSiO GX e3300 can be used in
various work environments that require speed and durability of a laser printer
at the affordability and convenience of an inkjet color printer.
According to J.D. Powers Asia-Pacific "2009 Japan Color Copier Customer
Satisfaction Study", Ricoh was ranked the highest in color copier customer
satisfaction for both large and small/medium-sized businesses. We also received
the number 1 ranking in J.D. Powers Asia-Pacific "2009 Japan Color Printer
Customer Satisfaction Study". As a company, we will continually strive to
provide the best products and services to our customers.
We have streamlined our development and sales structure, which includes
business resources acquired through merger & acquisition, as a part of the
company's strategy to expand the production printing business.
We have collaborated the product planning, development, product and sales
departments within our industrial products segment (such as semiconductor,
electrical component and optical equipments) in aims to deliver new value added
devices and modules.
Projection system business was launched as part of our mission to increase the
value provided to our customers in the field of communications, including
projection and sound. With years of experience in the field of optical and
processing technology, powerful customer relations and a worldwide technical
support & services network, we can provide the whole process from manufacturing
components and units to providing customers with solutions proposals & sales,
installation and maintenance services as a one stop solution provider.
(3) Issues to Face
Even though there are signs of recovery from one of the worst recessions in
decades, we expect the severe business environment will continue throughout the
world economy.
The Ricoh Group will strive to further execute "high efficiency management",
which is one of our ongoing challenges. We are rapidly switching to a
management structure under which revenues can be surely maintained and
preserved even in circumstances of weak demand. We will maximize earnings by
thoroughly carrying out a range of measures as part of our various structural
innovations in development, production, sales, etc., and by shifting resources
to more profitable businesses.
We also aim to expand our field of business so as to participate in new growth
enterprises. We recognize that another vital issue is ensuring that our
achievements from investments, accumulated up until now, lead to earnings. In
addition, we will strengthen the distribution of management resources to new
business including the shift from an existing business.
Lastly, in addition to broadening our practice of "Customer Satisfaction
Management", through which we have actively uncovered new value, Ricoh is
pursuing "Harmonize with the environment", "Think solutions that fit", and
"Simplify knowledge creation" as customer values, which emphasize the Ricoh's
unique abilities. Ricoh will strive further to provide products and services
which help customers contribute to global environmental conservation, pursue
ease of use which enables customers to thoroughly utilize products and
services, support knowledge creation activities by customers, and create
environments for knowledge creation.
16
4. CONSOLIDATED FINANCIAL STATEMENTS
(1) CONSOLIDATED BALANCE SHEETS
(March 31, 2009 and 2010)
Assets (Millions of yen)
---------------------------------------------------------------------------------------------------------------
March 31, 2009 March 31, 2010 Change
---------------------------------------------------------------------------------------------------------------
Current Assets
Cash and time deposits 260,527 243,888 -16,639
Trade receivables 680,384 667,614 -12,770
Inventories 191,570 169,251 -22,319
Other current assets 79,385 63,859 -15,526
Total Current Assets 1,211,866 1,144,612 -67,254
Fixed Assets
Tangible fixed assets 269,336 263,021 -6,315
Finance receivables 465,262 445,896 -19,366
Other investments 567,031 530,414 -36,617
Total Fixed Assets 1,301,629 1,239,331 -62,298
---------------------------------------------------------------------------------------------------------------
Total Assets 2,513,495 2,383,943 -129,552
---------------------------------------------------------------------------------------------------------------
Note:
Contents of cash and time deposits:
Cash and cash equivalents 258,484 242,165
Time deposits 2,043 1,723
Liabilities and Equity (Millions of yen)
---------------------------------------------------------------------------------------------------------------
March 31, 2009 March 31, 2010 Change
---------------------------------------------------------------------------------------------------------------
Current Liabilities
Trade payables 285,413 273,397 -12,016
Short-term borrowings 269,792 169,727 -100,065
Other current liabilities 218,286 217,280 -1,006
Total Current Liabilities 773,491 660,404 -113,087
Fixed Liabilities
Long-term indebtedness 509,403 514,718 5,315
Accrued pension and severance costs 156,625 140,460 -16,165
Other fixed liabilities 49,626 44,487 -5,139
Total Fixed Liabilities 715,654 699,665 -15,989
---------------------------------------------------------------------------------------------------------------
Total Liabilities 1,489,145 1,360,069 -129,076
---------------------------------------------------------------------------------------------------------------
Equity
Common stock 135,364 135,364 --
Additional paid-in capital 186,083 186,083 --
Retained earnings 815,725 820,701 4,976
Accumulated other comprehensive loss -125,121 -132,051 -6,930
Treasury stock -36,678 -36,756 -78
Total Shareholders' investment 975,373 973,341 -2,032
Noncontrolling interests 48,977 50,533 1,556
---------------------------------------------------------------------------------------------------------------
Total Equity 1,024,350 1,023,874 -476
---------------------------------------------------------------------------------------------------------------
Total Liabilities and Equity 2,513,495 2,383,943 -129,552
---------------------------------------------------------------------------------------------------------------
Note: Other comprehensive income;
Net unrealized holding gains on available-for-sale securities 1,848 2,372 524
Pension liability adjustments -54,301 -47,335 6,966
Net unrealized gains (losses) on derivative instruments -373 -1,157 -784
Cumulative translation adjustments -72,295 -85,931 -13,636
Reference: Exchange rate March 31, 2009 March 31, 2010
US$ 1 Yen 98.23 Yen 93.04
EURO 1 Yen 129.84 Yen 124.92
17
(2) CONSOLIDATED STATEMENTS OF INCOME
(Three months ended March 31, 2009 and 2010) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2009 March 31, 2010 Change %
-----------------------------------------------------------------------------------------------------------------------------
Net sales 523,678 541,606 17,928 3.4
Cost of sales 326,781 327,669 888 0.3
Percentage of net sales (%) 62.4 60.5
Gross Profit 196,897 213,937 17,040 8.7
Percentage of net sales (%) 37.6 39.5
Selling, general and administrative expenses 208,739 185,672 -23,067 -11.1
Percentage of net sales (%) 39.9 34.3
Operating income -11,842 28,265 40,107 --
Percentage of net sales (%) -2 5.2
Other (income) expense
Interest and dividend income 1,399 1,256 -143 -10.2
Percentage of net sales (%) 0.3 0.2
Interest expense 1,541 1,988 447 29.0
Percentage of net sales (%) 0.3 0.4
Loss on valuation of securities 20,732 56 -20,676 -99.7
Percentage of net sales (%) 4.0 0.0
Other, net -3,592 776 4,368 --
Percentage of net sales (%) -0.7 0.1
Income before income taxes, equity income and
noncontrolling interests -29,124 26,701 55,825 --
Percentage of net sales (%) -5.6 4.9
Provision for income taxes -6,122 12,740 18,862 --
Percentage of net sales (%) -1.2 2.4
Equity in earnings of affiliates 56 0 -56 --
Percentage of net sales (%) 0.0 0.0
Consolidated net income -22,946 13,961 36,907 --
Percentage of net sales (%) -4.4 2.6
Net income attributable to noncontrolling
interests 64 504 440 687.5
Percentage of net sales (%) 0.0 0.0
Net income attributable to Ricoh Company, Ltd. -23,010 13,457 36,467 --
Percentage of net sales (%) -4.4 2.5
-----------------------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 93.61 Yen 90.76
EURO 1 Yen 122.35 Yen 125.64
(Year ended March 31, 2009 and 2010) (Millions of yen)
---------------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2009 March 31, 2010 Change %
---------------------------------------------------------------------------------------------------------------------
Net sales 2,091,696 2,016,337 -75,359 -3.6
Cost of sales 1,237,310 1,193,994 -43,316 -3.5
Percentage of net sales (%) 59.2 59.2
Gross Profit 854,386 822,343 -32,043 -3.8
Percentage of net sales (%) 40.8 40.8
Selling, general and administrative expenses 779,850 756,346 -23,504 -3.0
Percentage of net sales (%) 37.2 37.5
Operating income 74,536 65,997 -8,539 -11.5
Percentage of net sales (%) 3.6 3.3
Other (income) expense
Interest and dividend income 5,227 3,472 -1,755 -33.6
Percentage of net sales (%) 0.2 0.2
Interest expense 5,863 8,144 2,281 38.9
Percentage of net sales (%) 0.3 0.4
Loss on valuation of securities 26,837 169 -26,668 -99.4
Percentage of net sales (%) 1.3 0.0
Other, net 16,124 3,632 -12,492 -77.5
Percentage of net sales (%) 0.7 0.2
Income from continuing operations before income
taxes, equity income and noncontrolling
interests 30,939 57,524 26,585 85.9
Percentage of net sales (%) 1.5 2.9
Provision for income taxes 22,158 27,678 5,520 24.9
Percentage of net sales (%) 1.1 1.4
Equity in earnings of affiliates 71 6 -65 -91.5
Percentage of net sales (%) 0.0 0.0
Consolidated net income 8,852 29,852 21,000 237.2
Percentage of net sales (%) 0.4 1.5
Net income attributable to noncontrolling
interests 2,322 1,979 -343 -14.8
Percentage of net sales (%) 0.1 0.1
Net income attributable to Ricoh Company, Ltd. 6,530 27,873 21,343 326.8
Percentage of net sales (%) 0.3 1.4
---------------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 100.55 Yen 92.91
EURO 1 Yen 143.74 Yen 131.21
18
(3)-1. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Three months ended March 31, 2009 and 2010) (Millions of yen)
------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2009 March 31, 2010 Change %
------------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 400,512 402,911 2,399 0.6
Percentage of net sales (%) 76.5 74.4
Network System Solutions 68,818 81,242 12,424 18.1
Percentage of net sales (%) 13.1 15.0
Total Imaging & Solutions 469,330 484,153 14,823 3.2
Percentage of net sales (%) 89.6 89.4
------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 21,796 25,335 3,539 16.2
Percentage of net sales (%) 4.2 4.7
------------------------------------------------------------------------------------------------------------------
[Other]
Other 32,552 32,118 -434 -1.3
Percentage of net sales (%) 6.2 5.9
------------------------------------------------------------------------------------------------------------------
Grand Total 523,678 541,606 17,928 3.4
Percentage of net sales (%) 100.0 100.0
------------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 93.61 Yen 90.76
EURO 1 Yen 122.35 Yen 125.64
(Year ended March 31, 2009 and 2010) (Millions of yen)
---------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2009 March 31, 2010 Change %
---------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 1,598,614 1,516,172 -82,442 -5.2
Percentage of net sales (%) 76.4 75.2
Network System Solutions 234,484 274,071 39,587 16.9
Percentage of net sales (%) 11.2 13.6
Total Office Solutions 1,833,098 1,790,243 -42,855 -2.3
Percentage of net sales (%) 87.6 88.8
---------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 115,550 101,692 -13,858 -12.0
Percentage of net sales (%) 5.5 5.0
---------------------------------------------------------------------------------------------------------
[Other]
Other 143,048 124,402 -18,646 -13.0
Percentage of net sales (%) 6.9 6.2
---------------------------------------------------------------------------------------------------------
Grand Total 2,091,696 2,016,337 -75,359 -3.6
Percentage of net sales (%) 100.0 100.0
---------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 100.55 Yen 92.91
EURO 1 Yen 143.74 Yen 131.21
* 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, PC servers, network systems and
network related software
Industrial Products Thermal media, optical equipments, semiconductors,
electronic component and measuring equipments
Other Digital camera, and so on
19
(3)-2. CONSOLIDATED SALES BY GEOGRAPHIC AREA
(Three months ended March 31, 2009 and 2010) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2009 March 31, 2010 Change %
-----------------------------------------------------------------------------------------------------------------
[Domestic] 233,445 250,051 16,606 7.1
Percentage of net sales (%) 44.6 46.2
[Overseas] 290,233 291,555 1,322 0.5
Percentage of net sales (%) 55.4 53.8
The Americas 152,395 141,290 -11,105 -7.3
Percentage of net sales (%) 29.1 26.1
Europe 115,144 117,117 1,973 1.7
Percentage of net sales (%) 22.0 21.6
Other 22,694 33,148 10,454 46.1
Percentage of net sales (%) 4.3 6.1
Grand Total 523,678 541,606 17,928 3.4
Percentage of net sales (%) 100.0 100.0
-----------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 93.61 Yen 90.76
EURO 1 Yen 122.35 Yen 125.64
(Year ended March 31, 2009 and 2010) (Millions of yen)
---------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2009 March 31, 2010 Change %
---------------------------------------------------------------------------------------------------------
[Domestic] 938,331 876,578 -61,753 -6.6
Percentage of net sales (%) 44.9 43.5
[Overseas] 1,153,365 1,139,759 -13,606 -1.2
Percentage of net sales (%) 55.1 56.5
The Americas 502,862 557,687 54,825 10.9
Percentage of net sales (%) 24.0 27.7
Europe 523,407 458,584 -64,823 -12.4
Percentage of net sales (%) 25.0 22.7
Other 127,096 123,488 -3,608 -2.8
Percentage of net sales (%) 6.1 6.1
Grand Total 2,091,696 2,016,337 -75,359 -3.6
Percentage of net sales (%) 100.0 100.0
---------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 100.55 Yen 92.91
EURO 1 Yen 143.74 Yen 131.21
20
(4) CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT
Year ended March 31, 2009 (Millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
Accumulated
other
Additional comprehensive Total
Common paid-in Retained income Treasury Shareholders' Noncontrolling
stock capital earnings (loss) stock Investment interest Total equity
--------------------------------------------------------------------------------------------------------------------------------
Beginning balance 135,364 186,448 835,238 -31,005 -45,849 1,080,196 58,283 1,138,479
Cumulative effect of
adjustment resulted from
applying ASC 715 (former
SFAS 158) -643 -6 -649 -649
--------------------------------------------------------------------------------------------------------------------------------
Beginning balance (after
adjustment) 135,364 186,448 834,595 -31,011 -45,849 1,079,547 58,283 1,137,830
--------------------------------------------------------------------------------------------------------------------------------
Comprehensive income
Net income 6,530 6,530 2,322 8,852
Net unrealized holding
gains on
available-for-sale
securities 532 532 -121 411
Pension liability
adjustment -33,507 -33,507 -55 -33,562
Net unrealized losses on
derivative instruments 35 35 2 37
Cumulative translation
adjustments -61,170 -61,170 -198 -61,368
----------------------------------------------
Total comprehensive income -87,580 1,950 -85,630
----------------------------------------------
Net changes in treasury stock 9,171 9,171 9,171
Cash dividends on Common stock -25,320 -25,320 -25,320
Distributions to
Noncontrolling interest -683 -683
Wholly owned subsidiaries -10,516 -10,516
Other -365 -80 -445 -57 -502
--------------------------------------------------------------------------------------------------------------------------------
Ending balance 135,364 186,083 815,725 -125,121 -36,678 975,373 48,977 1,024,350
================================================================================================================================
Year ended March 31, 2010 (Millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
Accumulated
other
Additional comprehensive Total
Common paid-in Retained income Treasury Shareholders' Noncontrolling
stock capital earnings (loss) stock Investment interest Total equity
--------------------------------------------------------------------------------------------------------------------------------
Beginning balance 135,364 186,083 815,725 -125,121 -36,678 975,373 48,977 1,024,350
--------------------------------------------------------------------------------------------------------------------------------
Comprehensive income
Net income 27,873 27,873 1,979 29,852
Net unrealized holding
gains on
available-for-sale
securities 524 524 10 534
Pension liability
adjustment 6,966 6,966 65 7,031
Net unrealized losses on
derivative instruments -784 -784 4 -780
Cumulative translation
adjustments -13,636 -13,636 2 -13,634
----------------------------------------------
Total comprehensive income 20,943 2,060 23,003
----------------------------------------------
Net changes in treasury stock -78 -78 -78
Cash dividends on Common stock -22,858 -22,858 -22,858
Distributions to
Noncontrolling interest -557 -557
Other -39 -39 53 14
--------------------------------------------------------------------------------------------------------------------------------
Ending balance 135,364 186,083 820,701 -132,051 -36,756 973,341 50,533 1,023,874
================================================================================================================================
21
(5) CONSOLIDATED STATEMENTS OF CASH FLOWS
(Year ended March 31, 2009 and 2010) (Millions of yen)
----------------------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2009 March 31, 2010
----------------------------------------------------------------------------------------------------------------------------
I. Cash Flows from Operating Activities:
Consolidated net income 8,852 29,852
Adjustments to reconcile net income to net cash provided by operating activities--
Depreciation and amortization 101,817 98,941
Equity in earnings of affiliates, net of dividends received 117 -6
Deferred income taxes -5,163 183
Loss on disposal and sales of tangible fixed assets 1,885 2,586
Loss on valuation of securities 26,837 169
Pension and severance costs, less payments 2,031 -2,677
Changes in assets and liabilities--
Decrease in trade receivables 37,913 5,475
Decrease in inventories 2,836 19,599
(Increase) Decrease in finance receivables -3,050 23,397
Decrease in trade payables -97,372 -10,124
(Decrease) Increase in accrued income taxes and accrued expenses and other -14,094 15,589
Other, net 24,879 7,719
----------------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 87,488 190,703
----------------------------------------------------------------------------------------------------------------------------
II. Cash Flows from Investing Activities:
Proceeds from sales of property, plant and equipment 454 1,591
Expenditures for tangible fixed assets -96,945 -66,979
Payments for purchases of available-for-sale securities -1,781 -701
Proceeds from sales of available-for-sale securities 243 1,027
(Increase) Decrease in time deposits -615 249
Purchase of business, net of cash acquired -157,404 -4,760
Other, net -27,124 -19,997
----------------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities -283,172 -89,570
----------------------------------------------------------------------------------------------------------------------------
III. Cash Flows from Financing Activities:
Proceeds from long-term indebtedness 237,116 46,965
Repayment of long-term indebtedness -59,500 -66,564
Increase (Decrease) in short-term borrowings, net 110,211 -105,250
Proceeds from issuance of long-term debt securities 85,000 55,000
Repayment of long-term debt securities -50,539 -20,000
Dividend paid -25,320 -22,858
Payment for purchase of treasury stock -644 -183
Other, net -410 -488
----------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities 295,914 -113,378
----------------------------------------------------------------------------------------------------------------------------
IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents -12,353 -4,074
----------------------------------------------------------------------------------------------------------------------------
V. Net Increase (Decrease) in Cash and Cash Equivalents 87,877 -16,319
----------------------------------------------------------------------------------------------------------------------------
VI. Cash and Cash Equivalents at Beginning of Year 170,607 258,484
----------------------------------------------------------------------------------------------------------------------------
VII. Cash and Cash Equivalents at End of Year 258,484 242,165
----------------------------------------------------------------------------------------------------------------------------
22
(6) NOTE FOR GOING CONCERN ASSUMPTION
Not applicable.
(7) SIGNIFICANT ACCOUNTING POLICIES (CONSOLIDATED)
A) CHANGES IN THE SCALE OF CONSOLIDATION AND THE APPLICATION OF THE EQUITY
METHOD FROM APRIL 1, 2009 TO MARCH 31, 2010.
Consolidated subsidiaries:
13 Additions
49 Removals
Companies accounted for by the equity method:
0 Additions
3 Removals
B) CONSOLIDATED ACCOUNTING POLICIES (SUMMARY)
a. Principles of Consolidation
The consolidated financial statements include the accounts of Ricoh and its
consolidated subsidiaries. Investments in 20% to 50% owned companies when the
Company has the ability to exercise significant influence are accounted for on
the equity basis. All significant inter-company balances and transactions have
been eliminated in consolidation.
b. Securities
In conformity with FASB Accounting Standards Codification (ASC) 320, "Debt and
Equity Securities" (former SFAS No.115), securities are mainly classified as
available-for-sale securities. Available-for-sale securities are reported at
fair value with unrealized gains and losses, net of related taxes, excluded
from earnings and reported in accumulated other comprehensive income (loss).
The cost of the securities sold is computed based on the average cost of each
security held at the time of sale.
c. Inventories
Inventories are mainly stated at the lower of average cost or market. Inventory
costs include raw materials, labor and manufacturing overheads.
d. Plant and Equipment
Depreciation of plant and equipment is computed principally by using the
declining-balance method over the estimated useful lives. Most of the foreign
subsidiaries have adopted the straight-line method for computing depreciation.
Certain leased buildings, machinery and equipment are accounted for as capital
leases in conformity with ASC 840 "Accounting for Leases.", (former SFAS No.13).
e. Goodwill and Other Intangible Assets
In conformity with ASC 350, "Goodwill and Other Intangible Assets" (former SFAS
No.142) , Goodwill and intangible asset determined to have an indefinite useful
life are not amortized. ASC 350 requires annual impairment testing thereof.
f. Pension and Retirement Allowances Plans
The measurement of pension costs and liabilities is determined in accordance
with ASC 715, "Retirement Benefits" (former SFAS No.87 and SFAS No.158).
g. Use of Estimates
Management of the Company has made a number of estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues and expenses,
including impairment losses of long-lived assets and the disclosures of fair
value of financial instruments and contingent assets and liabilities, to
prepare these financial statements in conformity with accounting principles
enerally accepted in the United States of America. Actual results could differ
from those estimates.
23
(8) CHANGES IN SIGNIFICANT ACCOUNTING POLICIES (CONSOLIDATED)
CHANGES IN ACCOUNTING METHOD
From fiscal year 2010, the company has adopted FASB Accounting Standards
Codification (ASC) 805 "Business Combinations" (former SFAS No.141R). ASC 805
establishes principles and requirements for how an acquirer recognizes and
measures in its financial statements the identifiable assets acquired, the
liabilities assumed, any non-controlling interest in the acquiree and the
goodwill acquired. ASC 805 also establishes disclosure requirements to enable
the evaluation of the nature and financial effects of the business combination.
The adoption of ASC 805 did not have a material effect on Ricoh' s consolidated
financial position or results of operations
From fiscal year 2010, the company has adopted FASB Accounting Standards
Codification (ASC) 810 "Consolidation", (former SFAS No.160). In accordance ASC
810, non-controlling interest which were previously referred to as minority
interests and classified between total liabilities and shareholders' investment
on the consolidated balance sheets, are now included as a separate component of
total equity. In addition, consolidated net income on the consolidated
statements of income now includes the net income (loss) attributable to
non-controlling interest.These financial statement presentation requirements
have been adopted retrospectively and prior year amounts in the consolidated
financial statements including the consolidated statements of cash flows have
been reclassified or adjusted to conform to ASC 810.
From fiscal year 2010, the company has adopted FASB Accounting Standards
Codification (ASC) 105, "Generally Accepted Accounting Principles" (former SFAS
No.168). ASC 105 reduced the hierarchy of generally accepted accounting
principles from traditional four levels to two levels: authoritative (ASC) and
non-authoritative. The adoption of ASC 105 did not have a material effect on
Ricoh's consolidated financial position or results of operations.
24
(9) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A) SEGMENT INFORMATION
a. Operating Segment Information
(Three months ended March 31, 2009 and 2010) (Millions of yen)
-------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2009 March 31, 2010 Change %
-------------------------------------------------------------------------------------------------------------------------
IMAGING & SOLUTIONS:
Net sales:
Unaffiliated customers 469,330 484,153 14,823 3.2
Intersegment -- -- --
Total 469,330 484,153 14,823 3.2
-------------------------------------------------------------------------------------------------------------------------
Operating expenses 463,382 436,715 -26,667 -5.8
-------------------------------------------------------------------------------------------------------------------------
Operating income 5,948 47,438 41,490 697.5
Operating income on sales in Office Solutions (%) 1.3 9.8
-------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PRODUCTS:
Net sales:
Unaffiliated customers 21,796 25,335 3,539 16.2
Intersegment 649 1,283 634 97.7
Total 22,445 26,618 4,173 18.6
-------------------------------------------------------------------------------------------------------------------------
Operating expenses 26,403 26,939 536 2.0
-------------------------------------------------------------------------------------------------------------------------
Operating income -3,958 -321 3,637 --
Operating income on sales in Industrial Products (%) -17.6 -1.2
-------------------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
Unaffiliated customers 32,552 32,118 -434 -1.3
Intersegment -- -- --
Total 32,552 32,118 -434 -1.3
-------------------------------------------------------------------------------------------------------------------------
Operating expenses 32,773 33,579 806 2.5
-------------------------------------------------------------------------------------------------------------------------
Operating income -221 -1,461 -1,240 --
Operating income on sales in Other (%) -0.7 -4.5
-------------------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -649 -1,283 -634
Total -649 -1,283 -634 --
-------------------------------------------------------------------------------------------------------------------------
Operating expenses:
Intersegment -655 -1,288 -633
Corporate 13,617 17,396 3,779
Total 12,962 16,108 3,146 --
-------------------------------------------------------------------------------------------------------------------------
Operating income -13,611 -17,391 -3,780 --
-------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
Unaffiliated customers 523,678 541,606 17,928 3.4
Intersegment -- -- --
Total 523,678 541,606 17,928 3.4
-------------------------------------------------------------------------------------------------------------------------
Operating expenses 535,520 513,341 -22,179 -4.1
-------------------------------------------------------------------------------------------------------------------------
Operating income -11,842 28,265 40,107 --
Operating income on consolidated net sales (%) -2.3 5.2
-------------------------------------------------------------------------------------------------------------------------
Capital expenditures: (Millions of yen)
---------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2009 March 31, 2010 Change %
---------------------------------------------------------------------------------------------
Imaging & Solutions 22,192 16,579 -5,613 -25.3
Industrial Products 1,142 852 -290 -25.4
Other 587 346 -241 -41.1
Corporate 680 863 183 26.9
--------------------------------------------------------------------------------------------
Total 24,601 18,640 -5,961 -24.2
--------------------------------------------------------------------------------------------
Depreciation: (Millions of yen)
---------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2009 March 31, 2010 Change %
---------------------------------------------------------------------------------------------
Imaging & Solutions 16,752 15,977 -775 -4.6
Industrial Products 1,753 1,488 -265 -15.1
Other 666 439 -227 -34.1
Corporate 634 558 -76 -12.0
--------------------------------------------------------------------------------------------
Total 19,805 18,462 -1,343 -6.8
--------------------------------------------------------------------------------------------
Identifiable assets: (Millions of yen)
---------------------------------------------------------------------------------------------
March 31, March 31,
2009 2010 Change %
---------------------------------------------------------------------------------------------
Imaging & Solutions 1,870,110 1,827,063 -43,047 -2.3
Industrial Products 83,411 78,464 -4,947 -5.9
Other 97,092 89,342 -7,750 -8.0
Eliminations -612 -1,250 -638 --
Corporate assets 463,494 390,324 -73,170 -15.8
--------------------------------------------------------------------------------------------
Total 2,513,495 2,383,943 -129,552 -5.2
--------------------------------------------------------------------------------------------
25
(Year ended March 31, 2009 and 2010) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2009 March 31, 2010 Change %
-----------------------------------------------------------------------------------------------------------------
IMAGING & SOLUTIONS:
Net sales:
Unaffiliated customers 1,833,098 1,790,243 -42,855 -2.3
Intersegment -- -- --
Total 1,833,098 1,790,243 -42,855 -2.3
-----------------------------------------------------------------------------------------------------------------
Operating expenses 1,687,732 1,649,820 -37,912 -2.2
-----------------------------------------------------------------------------------------------------------------
Operating income 145,366 140,423 -4,943 -3.4
Operating income on sales in Office Solutions (%) 7.9 7.8
-----------------------------------------------------------------------------------------------------------------
INDUSTRIAL PRODUCTS:
Net sales:
Unaffiliated customers 115,550 101,692 -13,858 -12.0
Intersegment 4,121 4,436 315 7.6
Total 119,671 106,128 -13,543 -11.3
-----------------------------------------------------------------------------------------------------------------
Operating expenses 124,597 107,483 -17,114 -13.7
-----------------------------------------------------------------------------------------------------------------
Operating income -4,926 -1,355 3,571 --
Operating income on sales in Industrial Products (%) -4.1 -1.3
-----------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
Unaffiliated customers 143,048 124,402 -18,646 -13.0
Intersegment -- -- --
Total 143,048 124,402 -18,646 -13.0
-----------------------------------------------------------------------------------------------------------------
Operating expenses 142,690 127,849 -14,841 -10.4
-----------------------------------------------------------------------------------------------------------------
Operating income 358 -3,447 -3,805 --
Operating income on sales in Other (%) 0.3 -2.8
-----------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -4,121 -4,436 -315
Total -4,121 -4,436 -315 --
-----------------------------------------------------------------------------------------------------------------
Operating expenses:
Intersegment -4,128 -4,423 -295
Corporate 66,269 69,611 3,342
Total 62,141 65,188 3,047 --
-----------------------------------------------------------------------------------------------------------------
Operating income -66,262 -69,624 -3,362 --
-----------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
Unaffiliated customers 2,091,696 2,016,337 -75,359 -3.6
Intersegment -- -- --
Total 2,091,696 2,016,337 -75,359 -3.6
-----------------------------------------------------------------------------------------------------------------
Operating expenses 2,017,160 1,950,340 -66,820 -3.3
-----------------------------------------------------------------------------------------------------------------
Operating income 74,536 65,997 -8,539 -11.5
Operating income on consolidated net sales (%) 3.6 3.3
-----------------------------------------------------------------------------------------------------------------
Capital expenditures: (Millions of yen)
------------------------------------------------------------------------
Year ended Year ended
March 31, 2009 March 31, 2010 Change %
------------------------------------------------------------------------
Imaging & Solutions 87,658 60,482 -27,176 -31.0
Industrial Products 4,581 3,325 -1,256 -27.4
Other 2,776 1,553 -1,223 -44.1
Corporate 1,943 1,619 -324 -16.7
------------------------------------------------------------------------
Total 96,958 66,979 -29,979 -30.9
------------------------------------------------------------------------
Depreciation: (Millions of yen)
------------------------------------------------------------------------
Year ended Year ended
March 31, 2009 March 31, 2010 Change %
------------------------------------------------------------------------
Imaging & Solutions 64,356 62,432 -1,924 -3.0
Industrial Products 6,131 4,385 -1,746 -28.5
Other 2,442 1,922 -520 -21.3
Corporate 1,957 1,590 -367 -18.8
------------------------------------------------------------------------
Total 74,886 70,329 -4,557 -6.1
------------------------------------------------------------------------
Identifiable assets: (Millions of yen)
------------------------------------------------------------------------
March 31, 2009 March 31, 2010 Change %
------------------------------------------------------------------------
Imaging & Solutions 1,870,110 1,827,063 -43,047 -2.3
Industrial Products 83,411 78,464 -4,947 -5.9
Other 97,092 89,342 -7,750 -8.0
Eliminations -612 -1,250 -638 --
Corporate assets 463,494 390,324 -73,170 -15.8
------------------------------------------------------------------------
Total 2,513,495 2,383,943 -129,552 -5.2
------------------------------------------------------------------------
26
b. Geographic Segment Information
(Three months ended March 31, 2009 and 2010) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2009 March 31, 2010 Change %
-----------------------------------------------------------------------------------------------------------------
JAPAN:
Net sales:
External customers 236,950 255,085 18,135 7.7
Intersegment 85,553 90,107 4,554 5.3
Total 322,503 345,192 22,689 7.0
-----------------------------------------------------------------------------------------------------------------
Operating expenses 321,087 333,110 12,023 3.7
-----------------------------------------------------------------------------------------------------------------
Operating income 1,416 12,082 10,666 753.2
Operating income on sales in Japan(%) 0.4 3.5
-----------------------------------------------------------------------------------------------------------------
THE AMERICAS:
Net sales:
External customers 150,887 141,199 -9,688 -6.4
Intersegment 1,279 638 -641 -50.1
Total 152,166 141,837 -10,329 -6.8
-----------------------------------------------------------------------------------------------------------------
Operating expenses 165,448 141,939 -23,509 -14.2
-----------------------------------------------------------------------------------------------------------------
Operating income -13,282 -102 13,180 --
Operating income on sales in the Americas(%) -8.7 -0.1
-----------------------------------------------------------------------------------------------------------------
EUROPE:
Net sales:
External customers 115,530 118,431 2,901 2.5
Intersegment 431 500 69 16.0
Total 115,961 118,931 2,970 2.6
-----------------------------------------------------------------------------------------------------------------
Operating expenses 123,299 108,543 -14,756 -12.0
-----------------------------------------------------------------------------------------------------------------
Operating income -7,338 10,388 17,726 --
Operating income on sales in Europe(%) -6.3 8.7
-----------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 20,311 26,891 6,580 32.4
Intersegment 31,084 37,591 6,507 20.9
Total 51,395 64,482 13,087 25.5
-----------------------------------------------------------------------------------------------------------------
Operating expenses 48,765 60,144 11,379 23.3
-----------------------------------------------------------------------------------------------------------------
Operating income 2,630 4,338 1,708 64.9
Operating income on sales in Other(%) 5.1 6.7
-----------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -118,347 -128,836 -10,489 --
Total -118,347 -128,836 -10,489 --
-----------------------------------------------------------------------------------------------------------------
Operating expenses: -123,079 -130,395 -7,316 --
-----------------------------------------------------------------------------------------------------------------
Operating income 4,732 1,559 -3,173 --
-----------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 523,678 541,606 17,928 3.4
Intersegment -- -- --
Total 523,678 541,606 17,928 3.4
-----------------------------------------------------------------------------------------------------------------
Operating expenses 535,520 513,341 -22,179 -4.1
-----------------------------------------------------------------------------------------------------------------
Operating income 11,842 28,265 40,107 --
Operating income on consolidated net sales(%) -2.3 5.2
-----------------------------------------------------------------------------------------------------------------
Identifiable assets: (Millions of yen)
--------------------------------------------------------------------------------------
March 31, 2009 March 31, 2010 Change %
--------------------------------------------------------------------------------------
Japan 1,240,775 1,209,605 -31,170 -2.5
The Americas 524,511 493,029 -31,482 -6.0
Europe 318,032 306,077 -11,955 -3.8
Other 91,875 108,860 16,985 18.5
Eliminations -125,192 -123,952 1,240 --
Corporate assets 463,494 390,324 -73,170 -15.8
--------------------------------------------------------------------------------------
Total 2,513,495 2,383,943 -129,552 -5.2
--------------------------------------------------------------------------------------
27
(Year ended March 31, 2009 and 2010) (Millions of yen)
----------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2009 March 31, 2010 Change %
----------------------------------------------------------------------------------------------------------
JAPAN:
Net sales:
External customers 960,658 894,374 -66,284 -6.9
Intersegment 432,538 379,063 -53,475 -12.4
Total 1,393,196 1,273,437 -119,759 -8.6
----------------------------------------------------------------------------------------------------------
Operating expenses 1,331,638 1,240,361 -91,277 -6.9
----------------------------------------------------------------------------------------------------------
Operating income 61,558 33,076 -28,482 -46.3
Operating income on sales in Japan(%) 4.4 2.6
----------------------------------------------------------------------------------------------------------
THE AMERICAS:
Net sales:
External customers 502,338 556,673 54,335 10.8
Intersegment 4,451 3,348 -1,103 -24.8
Total 506,789 560,021 53,232 10.5
----------------------------------------------------------------------------------------------------------
Operating expenses 532,734 571,884 39,150 7.3
----------------------------------------------------------------------------------------------------------
Operating income -25,945 -11,863 14,082 --
Operating income on sales in the Americas(%) -5.1 -2.1
----------------------------------------------------------------------------------------------------------
EUROPE:
Net sales:
External customers 521,062 460,807 -60,255 -11.6
Intersegment 2,477 2,206 -271 -10.9
Total 523,539 463,013 -60,526 -11.6
----------------------------------------------------------------------------------------------------------
Operating expenses 504,116 432,822 -71,294 -14.1
----------------------------------------------------------------------------------------------------------
Operating income 19,423 30,191 10,768 55.4
Operating income on sales in Europe(%) 3.7 6.5
----------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 107,638 104,483 -3,155 -2.9
Intersegment 158,006 141,504 -16,502 -10.4
Total 265,644 245,987 -19,657 -7.4
----------------------------------------------------------------------------------------------------------
Operating expenses 252,951 231,646 -21,305 -8.4
----------------------------------------------------------------------------------------------------------
Operating income 12,693 14,341 1,648 13.0
Operating income on sales in Other(%) 4.8 5.8
----------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -597,472 -526,121 71,351 --
Total -597,472 -526,121 71,351 --
----------------------------------------------------------------------------------------------------------
Operating expenses: -604,279 -526,373 77,906 --
----------------------------------------------------------------------------------------------------------
Operating income 6,807 252 -6,555 --
----------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 2,091,696 2,016,337 -75,359 -3.6
Intersegment -- -- --
Total 2,091,696 2,016,337 -75,359 -3.6
----------------------------------------------------------------------------------------------------------
Operating expenses 2,017,160 1,950,340 -66,820 -3.3
----------------------------------------------------------------------------------------------------------
Operating income 74,536 65,997 -8,539 -11.5
Operating income on consolidated net sales(%) 3.6 3.3
----------------------------------------------------------------------------------------------------------
Identifiable assets: (Millions of yen)
----------------------------------------------------------------------------------
March 31, 2009 March 31, 2010 Change %
----------------------------------------------------------------------------------
Japan 1,240,775 1,209,605 -31,170 -2.5
The Americas 524,511 493,029 -31,482 -6.0
Europe 318,032 306,077 -11,955 -3.8
Other 91,875 108,860 16,985 18.5
Eliminations -125,192 -123,952 1,240 --
Corporate assets 463,494 390,324 -73,170 -15.8
----------------------------------------------------------------------------------
Total 2,513,495 2,383,943 -129,552 -5.2
----------------------------------------------------------------------------------
28
B) FAIR VALUE OF MARKETABLE SECURITIES
The securities and the respective cost, gross unrealized holding gains, gross
unrealized holding losses and fair value as of March 31, 2009 and March 31,
2010 are as follows:
(Millions of yen)
---------------------------------------------------------------------------------------------------
March 31, 2009
---------------------------------------------------------------------------------------------------
Gross unrealized Gross unrealized
Cost holding gains holding losses Fair value
---------------------------------------------------------------------------------------------------
Current:
Corporate debt securities 725 -- -- 725
---------------------------------------------------------------------------------------------------
725 -- -- 725
---------------------------------------------------------------------------------------------------
Noncurrent:
Equity securities 43,002 2,650 590 45,062
Corporate debt securities 1,279 -- -- 1,279
Nonmarketable securities (at cost) 1,474 -- -- 1,474
---------------------------------------------------------------------------------------------------
45,755 2,650 590 47,815
---------------------------------------------------------------------------------------------------
(Millions of yen)
---------------------------------------------------------------------------------------------------
March 31, 2010
---------------------------------------------------------------------------------------------------
Gross unrealized Gross unrealized
Cost holding gains holding losses Fair value
---------------------------------------------------------------------------------------------------
Current:
Other -- -- -- --
---------------------------------------------------------------------------------------------------
-- -- -- --
---------------------------------------------------------------------------------------------------
Noncurrent:
Equity securities 40,552 5,300 1,093 44,759
Corporate debt securities 1,865 -- -- 1,865
Nonmarketable securities (at cost) 2,425 -- -- 2,425
---------------------------------------------------------------------------------------------------
44,842 5,300 1,093 49,049
---------------------------------------------------------------------------------------------------
C) DERIVATIVES
The Company and certain of its subsidiaries enter into various financial
instrument contracts in the normal course of business and in connection with
the management of their assets and liabilities. The outstanding agreements,
carrying amount and estimated fair value of derivative financial instruments as
of March 31, 2009 and March 31, 2010 are as follows:
(Millions of yen)
------------------------------------------------------------------
March 31, 2009
------------------------------------------------------------------
Carrying Estimated
amount Fair value
------------------------------------------------------------------
Interest rate swap agreements, net -1,031 -1,031
Foreign currency contracts-net credit -2,994 -2,994
Currency options-net credit -1,443 -1,443
------------------------------------------------------------------
Total -5,468 -5,468
------------------------------------------------------------------
(Millions of yen)
------------------------------------------------------------------
March 31, 2010
------------------------------------------------------------------
Carrying Estimated
amount Fair value
------------------------------------------------------------------
Interest rate swap agreements, net -2,685 -2,685
Foreign currency contracts-net credit -4,067 -4,067
Currency options -298 -298
------------------------------------------------------------------
Total -7,050 -7,050
------------------------------------------------------------------
29
D) PER SHARE DATA
(Yen)
-------------------------------------------------------------------------
March 31, 2009 March 31, 2010
-------------------------------------------------------------------------
Shareholders' equity per share 1,344.08 1,341.45
Net income per share-basic 9.02 38.41
Net income per share-diluted 8.75 37.36
A reconciliation of the numerator and the denominators of the basic and diluted
per share computations for income is as follows:
(Millions of yen)
-------------------------------------------------------------------------
March 31, 2009 March 31, 2010
-------------------------------------------------------------------------
Net income 6,530 27,873
Effect of dilutive securities -25 -25
-------------------------------------------------------------------------
Diluted net income 6,505 27,848
-------------------------------------------------------------------------
(Shares)
-------------------------------------------------------------------------
March 31, 2009 March 31, 2010
-------------------------------------------------------------------------
Weight average common shares outstanding 723,924,525 725,613,259
Effect of dilutive securities 19,741,071 19,741,071
-------------------------------------------------------------------------
Diluted common shares outstanding 743,665,596 745,354,330
-------------------------------------------------------------------------
30
-APPENDIX- YEAR ENDED MARCH 31, 2010)
1. CONSOLIDATED QUARTERLY PERFORMANCE OUTLINE
(1) Financial Statements Summary (Quarterly) (Billions of yen)
-------------------------------------------------------------------------------------------------------------------------
1Q Change(%) 2Q Change(%) 3Q Change(%) 4Q Change(%)
-------------------------------------------------------------------------------------------------------------------------
Net sales 491.3 -5.8 497.4 -8.6 485.9 -3.2 541.6 3.4
Gross profit 200.3 -12.3 197.8 -7.9 210.2 -1.8 213.9 8.7
Operating income 6.0 -84.7 7.9 -68.7 23.7 11.4 28.2 --
Income before income taxes 3.4 -92.2 3.3 -77.9 24.0 -- 26.7 --
Net income 0.9 -96.5 0.9 -89.5 12.6 -- 13.4 --
-------------------------------------------------------------------------------------------------------------------------
Net income per share (yen) 1.24 -- 1.25 -- 17.38 -- 18.54 --
Net income per share-diluted (yen) 1.2 -- 1.21 -- 16.91 -- 18.04 --
-------------------------------------------------------------------------------------------------------------------------
Total assets 2,424.3 -- 2,376.9 -- 2,382.4 -- 2,383.9 --
Shareholders' investment 977.0 -- 955.6 -- 962.2 -- 973.3 --
-------------------------------------------------------------------------------------------------------------------------
Shareholders' investment per share (yen) 1,346.45 -- 1,316.96 -- 1,326.17 -- 1,341.45 --
-------------------------------------------------------------------------------------------------------------------------
Cash flows from operating activities 32.5 -- 50.6 -- 25.7 -- 81.7 --
Cash flows from investing activities -26.5 -- -26.9 -- -13.2 -- -22.8 --
Cash flows from financing activities -69.9 -- 8.3 -- -20.2 -- -31.4 --
Cash and cash equivalents at end of period 196.0 -- 224.2 -- 217.1 -- 242.1 --
-------------------------------------------------------------------------------------------------------------------------
(2) Capital expenditures and Depreciation (Billions of yen)
------------------------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q
------------------------------------------------------------------------------------------------------------------------
Capital expenditures 17.3 21.0 9.8 18.6
Depreciation for tangible fixed assets 16.6 17.3 17.8 18.4
------------------------------------------------------------------------------------------------------------------------
(3) R&D Expenditures (Billions of yen)
------------------------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q
------------------------------------------------------------------------------------------------------------------------
R&D expenditures 27.2 28.7 25.8 27.9
R&D expenditures / Total Sales (%) 5.6 5.8 5.3 5.2
------------------------------------------------------------------------------------------------------------------------
(4) Interest income (expenses) net (Billions of yen)
------------------------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q
------------------------------------------------------------------------------------------------------------------------
Interest income (expenses) net -1.5 -0.8 -1.6 -0.7
------------------------------------------------------------------------------------------------------------------------
(5) Exchange Rate
------------------------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q
------------------------------------------------------------------------------------------------------------------------
Exchange rate (Yen/US$) 97.51 93.64 89.75 90.76
Exchange rate (Yen/ EURO) 132.69 133.79 132.60 125.64
------------------------------------------------------------------------------------------------------------------------
A1
2. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Three months ended March 31, 2009 and 2010) (Millions of yen)
------------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Change excluding
March 31, 2009 March 31, 2010 Change % exchange impact %
------------------------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 400,512 402,911 2,399 0.6 3,722 0.9
Percentage of net sales (%) 76.5 74.4
Domestic 144,190 149,130 4,940 3.4 4,940 3.4
Overseas 256,322 253,781 -2,541 -1.0 -1,218 -0.5
Network System Solutions 68,818 81,242 12,424 18.1 12,960 18.8
Percentage of net sales (%) 13.1 15.0
Domestic 45,605 55,375 9,770 21.4 9,770 21.4
Overseas 23,213 25,867 2,654 11.4 3,190 13.7
Imaging & Solutions Total 469,330 484,153 14,823 3.2 16,682 3.6
Percentage of net sales (%) 89.6 89.4
Domestic 189,795 204,505 14,710 7.8 14,710 7.8
Overseas 279,535 279,648 113 0.0 1,972 0.7
The Americas 149,608 138,399 -11,209 -7.5 -6,329 -4.2
Europe 110,678 112,962 2,284 2.1 846 0.8
Other 19,249 28,287 9,038 47.0 7,455 38.7
------------------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 21,796 25,335 3,539 16.2 3,656 16.8
Percentage of net sales (%) 4.2 4.7
Domestic 11,888 14,553 2,665 22.4 2,665 22.4
Overseas 9,908 10,782 874 8.8 991 10.0
The Americas 2,624 2,808 184 7.0 251 9.6
Europe 4,073 3,920 -153 -3.8 -186 -4.6
Other 3,211 4,054 843 26.3 926 28.8
------------------------------------------------------------------------------------------------------------------------------
[Other]
Other 32,552 32,118 -434 -1.3 -435 -1.3
Percentage of net sales (%) 6.2 5.9
Domestic 31,762 30,993 -769 -2.4 -769 -2.4
Overseas 790 1,125 335 42.4 334 42.3
The Americas 163 83 -80 -49.1 -80 -49.1
Europe 393 235 -158 -40.2 -182 -46.3
Other 234 807 573 244.9 596 254.7
------------------------------------------------------------------------------------------------------------------------------
Grand Total 523,678 541,606 17,928 3.4 19,903 3.8
Percentage of net sales (%) 100.0 100.0
Domestic 233,445 250,051 16,606 7.1 16,606 7.1
Percentage of net sales (%) 44.6 46.2
Overseas 290,233 291,555 1,322 0.5 3,297 1.1
Percentage of net sales (%) 55.4 53.8
The Americas 152,395 141,290 -11,105 -7.3 -6,158 -4.0
Percentage of net sales (%) 29.1 26.1
Europe 115,144 117,117 1,973 1.7 478 0.4
Percentage of net sales (%) 22.0 21.6
Other 22,694 33,148 10,454 46.1 8,977 39.6
Percentage of net sales (%) 4.3 6.1
------------------------------------------------------------------------------------------------------------------------------
Reference: Exchange rate
US$ 1 Yen 93.61 Yen 90.76 Yen -2.85
EURO 1 Yen 122.35 Yen 125.64 Yen 3.29
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, PC servers, network systems and network related software
Industrial Products Thermal media, optical equipments, semiconductors, electronic component and measuring equipments
Other Digital camera, and so on
A2
(Year ended March 31, 2009 and 2010) (Millions of yen)
----------------------------------------------------------------------------------------------------------------------------
Year ended Year ended Change excluding
March 31, 2009 March 31, 2010 Change % exchange impact %
----------------------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 1,598,614 1,516,172 -82,442 -5.2 2,906 0.2
Percentage of net sales (%) 76.4 75.2
Domestic 567,222 530,723 -36,499 -6.4 -36,499 -6.4
Overseas 1,031,392 985,449 -45,943 -4.5 39,405 3.8
Network System Solutions 234,484 274,071 39,587 16.9 48,354 20.6
Percentage of net sales (%) 11.2 13.6
Domestic 172,932 171,035 -1,897 -1.1 -1,897 -1.1
Overseas 61,552 103,036 41,484 67.4 50,251 81.6
Imaging & Solutions Total 1,833,098 1,790,243 -42,855 -2.3 51,260 2.8
Percentage of net sales (%) 87.6 88.8
Domestic 740,154 701,758 -38,396 -5.2 -38,396 -5.2
Overseas 1,092,944 1,088,485 -4,459 -0.4 89,656 8.2
The Americas 487,563 544,206 56,643 11.6 102,145 21.0
Europe 501,887 441,649 -60,238 -12.0 -18,486 -3.7
Other 103,494 102,630 -864 -0.8 5,997 5.8
----------------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 115,550 101,692 -13,858 -12.0 -10,953 -9.5
Percentage of net sales (%) 5.5 5.0
Domestic 64,792 56,145 -8,647 -13.3 -8,647 -13.3
Overseas 50,758 45,547 -5,211 -10.3 -2,306 -4.5
The Americas 13,725 12,860 -865 -6.3 155 1.1
Europe 18,235 15,322 -2,913 -16.0 -1,681 -9.2
Other 18,798 17,365 -1,433 -7.6 -780 -4.1
----------------------------------------------------------------------------------------------------------------------------
[Other]
Other 143,048 124,402 -18,646 -13.0 -18,182 -12.7
Percentage of net sales (%) 6.9 6.2
Domestic 133,385 118,675 -14,710 -11.0 -14,710 -11.0
Overseas 9,663 5,727 -3,936 -40.7 -3,472 -35.9
The Americas 1,574 621 -953 -60.5 -910 -57.8
Europe 3,285 1,613 -1,672 -50.9 -1,534 -46.7
Other 4,804 3,493 -1,311 -27.3 -1,028 -21.4
----------------------------------------------------------------------------------------------------------------------------
Grand Total 2,091,696 2,016,337 -75,359 -3.6 22,125 1.1
Percentage of net sales (%) 100.0 100.0
Domestic 938,331 876,578 -61,753 -6.6 -61,753 -6.6
Percentage of net sales (%) 44.9 43.5
Overseas 1,153,365 1,139,759 -13,606 -1.2 83,878 7.3
Percentage of net sales (%) 55.1 56.5
The Americas 502,862 557,687 54,825 10.9 101,390 20.2
Percentage of net sales (%) 24.0 27.7
Europe 523,407 458,584 -64,823 -12.4 -21,701 -4.1
Percentage of net sales (%) 25.0 22.7
Other 127,096 123,488 -3,608 -2.8 4,189 3.3
Percentage of net sales (%) 6.1 6.1
----------------------------------------------------------------------------------------------------------------------------
Reference: Exchange rate
US$ 1 Yen 100.55 Yen 92.91 Yen -7.64
EURO 1 Yen 143.74 Yen 131.21 Yen -12.53
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, PC servers, network systems and network related software
Industrial Products Thermal media, optical equipments, semiconductors, electronic component and measuring equipments
Other Digital camera, and so on
A3
3. FORECAST OF CONSOLIDATED SALES BY PRODUCT CATEGORY
(Billions of yen)
---------------------------------------------------------------------------------------------------------------
Year ending March 31, 2011 Half year ending September 30, 2010
-------------------------- -----------------------------------
Year ended Change Change Change Change
Mar.31,'10 Forecast % Forecast(*) % Forecast % Forecast(*) %
---------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 1,516.2 1,534.2 1.2 1,590.8 4.9 741.9 -0.4 781.7 4.9
Domestic 530.7 538.4 1.4 538.4 1.4 257.5 0.6 257.5 0.6
Overseas 985.4 995.8 1.1 1,052.4 6.8 484.4 -1.0 524.2 7.2
Network System Solutions 274.1 277.2 1.1 282.0 2.9 132.2 1.6 136.0 4.6
Domestic 171.0 173.2 1.3 173.2 1.3 80.7 2.4 80.7 2.4
Overseas 103.0 104.0 0.9 108.8 5.6 51.5 0.5 55.3 7.9
Imaging & Solutions Total 1,790.2 1,811.4 1.2 1,872.8 4.6 874.1 -0.1 917.7 4.9
Domestic 701.8 711.6 1.4 711.6 1.4 338.2 1.0 338.2 1.0
Overseas 1,088.5 1,099.8 1.0 1,161.2 6.7 535.9 -0.8 579.5 7.2
The Americas 544.2 552.9 1.6 570.6 4.9 269.9 -1.4 286.8 4.8
Europe 441.6 438.2 -0.8 478.7 8.4 214.7 -1.3 238.4 9.6
Other 102.6 108.7 5.9 111.9 9.0 51.3 4.2 54.3 10.3
---------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 101.7 105.1 3.3 106.7 4.9 50.0 -2.3 51.0 -0.4
Domestic 56.1 61.1 8.8 61.1 8.8 29.3 6.6 29.3 6.6
Overseas 45.5 44.0 -3.4 45.6 0.0 20.7 -12.6 21.7 -8.5
The Americas 12.9 12.6 -2.0 13.0 0.8 5.9 -16.8 6.2 -12.4
Europe 15.3 12.9 -15.8 14.1 -7.9 6.2 -19.9 6.9 -11.2
Other 17.4 18.5 6.5 18.5 6.5 8.6 -3.0 8.6 -3.0
---------------------------------------------------------------------------------------------------------------
[Other]
Other 124.4 133.5 7.3 133.8 7.5 65.9 5.4 66.0 5.6
Domestic 118.7 127.3 7.3 127.3 7.3 62.5 5.1 62.5 5.1
Overseas 5.7 6.2 8.4 6.5 13.3 3.4 11.9 3.5 15.9
The Americas 0.6 0.6 -3.4 0.7 9.5 0.4 1.0 0.4 6.1
Europe 1.6 1.6 -0.8 1.8 11.6 0.9 -2.2 1.0 8.7
Other 3.5 4.0 14.8 4.0 14.8 2.1 22.2 2.1 22.2
---------------------------------------------------------------------------------------------------------------
Grand Total 2,016.3 2,050.0 1.7 2,113.3 4.8 990.0 0.1 1,034.6 4.6
Domestic 876.6 900.0 2.7 900.0 2.7 430.0 2.0 430.0 2.0
Overseas 1,139.8 1,150.0 0.9 1,213.3 6.5 560.0 -1.3 604.6 6.6
The Americas 557.7 566.1 1.5 584.3 4.8 276.2 -1.8 293.4 4.3
Europe 458.6 452.7 -1.3 494.6 7.9 221.8 -1.9 246.3 8.9
Other 123.5 131.2 6.2 134.4 8.8 62.0 3.6 65.0 8.7
---------------------------------------------------------------------------------------------------------------
* Excluding foreign exchange impact
Reference: Half year ending Sept.
Year ended Mar. 31, '10 Year ending Mar. 31, '11 30, '10
Exchange rate (Results) (Forecast) (Forecast)
US$ 1 Yen 92.91 Yen 90.00 Yen 90.00
EURO 1 Yen 131.21 Yen 120.00 Yen 120.00
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, PC servers, network systems and network related software
Industrial Products Thermal media, optical equipments, semiconductors, electronic component and measuring equipments
Other Digital camera and so on
A4
-APPENDIX B-
[SCHEDULE 1] CONSOLIDATED sALES BY PRODUCT LINE
Year ended Year ended Year ended
March 31, 2008 March 31, 2009 March 31, 2009
------------------------------------------------------------------------------------------------
Imaging Solution Business 1,709.4 1,598.6 1,516.1
Network System Solution Business 200.0 234.4 274.0
Industry Business 144.3 115.5 101.6
Other Business 166.0 143.0 124.4
------------------------------------------------------------------------------------------------
Imaging Solution Business (%) 77.0 76.4 75.2
Network System Solution Business (%) 9.0 11.2 13.6
Industry Business (%) 6.5 5.5 5.0
Other Business (%) 7.5 6.9 6.2
100.0 100.0 100.0
------------------------------------------------------------------------------------------------
[SCHEDULE 2] CONSOLIDATED sALES BY GEOGRAPHIC AREA
Year ended Year ended Year ended
March 31, 2008 March 31, 2009 March 31, 2009
------------------------------------------------------------------------------------------------
Japan 1,016.0 938.3 876.5
The Americas 434.7 502.8 557.6
Europe 603.2 523.4 458.5
Others 165.9 127.0 123.4
------------------------------------------------------------------------------------------------
Japan (%) 45.8 44.9 43.5
The Americas (%) 19.6 24.0 27.7
Europe (%) 27.2 25.0 22.7
Others (%) 7.4 6.1 6.1
Total 100.0 100.0 100.0
------------------------------------------------------------------------------------------------
[SCHEDULE 3] GEOGRAPHIC SEGMENT INFORMATION
Year ended Year ended Year ended
Japan March 31, 2008 March 31, 2009 March 31, 2009
------------------------------------------------------------------------------------------------
Net sales (Billions of yen) 1,535.5 1,393.1 1,273.4
Operating income (Billions of yen) 107.9 61.5 33.0
Operating income on net sales (%) 7.0 4.4 2.2
------------------------------------------------------------------------------------------------
Year ended Year ended Year ended
The Americas March 31, 2008 March 31, 2009 March 31, 2009
------------------------------------------------------------------------------------------------
Net sales (Billions of yen) 435.7 506.7 560.0
Operating income (Billions of yen) 2.3 -25.9 -11.8
Operating income on net sales (%) 0.5 -5.1 -2.1
------------------------------------------------------------------------------------------------
Year ended Year ended Year ended
Europe March 31, 2008 March 31, 2009 March 31, 2009
------------------------------------------------------------------------------------------------
Net sales (Billions of yen) 604.8 523.5 463.0
Operating income (Billions of yen) 39.0 19.4 30.1
Operating income on net sales (%) 6.5 3.7 6.5
------------------------------------------------------------------------------------------------
Year ended Year ended Year ended
Others March 31, 2008 March 31, 2009 March 31, 2009
------------------------------------------------------------------------------------------------
Net sales 317.5 265.6 245.9
Operating income 26.4 12.6 14.3
Operating income on net sales 8.3 4.8 5.8
------------------------------------------------------------------------------------------------
B1