-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QAR8fkhEmL3ELD870knUjwgykWQCWV4oa4UU0QhV5dxzcv7ywOqAdgKOdmgmQyXV Xeah3TyHcaYazReXcuDyMA== 0000317891-04-000002.txt : 20040204 0000317891-04-000002.hdr.sgml : 20040204 20040204060830 ACCESSION NUMBER: 0000317891-04-000002 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20040204 FILED AS OF DATE: 20040204 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RICOH CO LTD CENTRAL INDEX KEY: 0000317891 STANDARD INDUSTRIAL CLASSIFICATION: PHOTOGRAPHIC EQUIPMENT & SUPPLIES [3861] IRS NUMBER: 000000000 STATE OF INCORPORATION: M0 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 002-68279 FILM NUMBER: 04564646 BUSINESS ADDRESS: STREET 1: 15-5 1-CHOME MINAMI-AOYAMA STREET 2: MINATO-KU CITY: TOKYO 107-8544 JAPAN STATE: M0 ZIP: 00000 MAIL ADDRESS: STREET 1: 15-5 1-CHOME MINAMI-AOYAMA STREET 2: MINATO-KU CITY: TOKYO 107-8544 JAPAN STATE: M0 ZIP: 00000 6-K 1 r6kh16feb04.txt QUARTERLY REPORT 2-4-2004 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 February, 2004 Commission File Number 2 - 68279 RICOH COMPANY, LTD. ----------------------------------------------- (Translation of Registrant's name into English) 15-5, Minami-Aoyama 1-Chome, Minato-ku, Tokyo 107-8544, Japan ------------------------------------------------------------- (Address of Principal Executive Offices) (Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.) Form 20-F X Form 40-F __ (Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): __ ) (Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): __ ) (Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.) Yes __ No X (If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-__ ) - -------------------------------------------------------------------------------- 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 Senior Vice President General Manager of Finance & Accounting Division February 4, 2004 - -------------------------------------------------------------------------------- [LOGO] RICOH QUARTERLY REPORT 3rd Quarter ended December 31, 2003 (Results for the Period from October 1, 2003 to December 31, 2003) PERFORMANCE OUTLINE (CONSOLIDATED) (1) Three months ended December 31, 2003 and 2002
(Billions of yen) - --------------------------------------------------------------------------------------------------- Three months ended Three months ended December 31, 2003 December 31, 2002 Change - --------------------------------------------------------------------------------------------------- Domestic sales 212.9 210.1 1.3% Overseas sales 207.9 210.5 -1.2% Net sales 420.9 420.7 0.0% Gross profit 185.7 184.9 0.5% Operating income 36.2 33.3 8.4% Income before income taxes 33.2 29.9 10.9% Net income 19.6 17.8 10.5% - --------------------------------------------------------------------------------------------------- Exchange rate (Yen/US$) 108.92 122.59 -13.67 Exchange rate (Yen/EURO) 129.58 122.59 6.99 - --------------------------------------------------------------------------------------------------- Net income per share (yen) 26.53 24.51 2.02 - --------------------------------------------------------------------------------------------------- Capital expenditures 15.5 16.7 -1.1 Depreciation for tangible fixed assets 15.7 17.5 -1.7 R&D expenditures 24.2 20.8 3.3 - ---------------------------------------------------------------------------------------------------
(2) Nine months ended December 31, 2003, 2002 and year ended March 31, 2004 (forecast)
(Billions of yen) - ------------------------------------------------------------------------------------------------- ---------------------------- Nine months ended Nine months ended Year ended December 31, 2003 December 31, 2002 Change March 31, 2004 Change (Results) (Results) (Forecast) - ------------------------------------------------------------------------------------------------- ---------------------------- Domestic sales 661.5 659.7 0.3% 900.0 0.4% Overseas sales 647.4 617.7 4.8% 877.0 4.1% Net sales 1,308.9 1,277.5 2.5% 1,777.0 2.2% Gross profit 573.8 545.5 5.2% 778.0 4.4% Operating income 113.4 94.7 19.8% 153.0 14.5% Income before income taxes 104.6 85.6 22.2% 144.0 16.6% Net income 61.9 51.3 20.7% 85.0 17.2% - ------------------------------------------------------------------------------------------------- ---------------------------- Exchange rate (Yen/US$) 115.00 122.92 -7.92 113.26 -8.70 Exchange rate (Yen/EURO) 132.17 118.84 13.33 131.13 10.13 - ------------------------------------------------------------------------------------------------- ---------------------------- Net income per share (yen) 83.32 70.62 12.70 114.89 15.10 - ------------------------------------------------------------------------------------------------- ---------------------------- Total assets 1,922.1 1,807.2 114.8 - - Shareholders' equity 708.8 671.1 37.7 - - Interest-bearing debt 513.1 541.2 -28.0 - - - ------------------------------------------------------------------------------------------------- ---------------------------- Equity ratio (%) 36.9 37.1 -0.2 - - - ------------------------------------------------------------------------------------------------- ---------------------------- Shareholder's equity per share (yen) 958.20 925.98 32.22 - - - ------------------------------------------------------------------------------------------------- ---------------------------- Cash flows from operating activities 81.6 112.1 -30.4 - - Cash flows from investing activities -40.4 -76.6 36.2 - - Cash flows from financing activities 9.2 -26.2 35.4 - - Cash and cash equivalents at end of period 238.3 177.5 60.8 - - - ------------------------------------------------------------------------------------------------- ---------------------------- Capital expenditures 51.8 55.1 -3.2 71.0 -2.9 Depreciation for tangible fixed assets 49.4 51.4 -2.0 68.0 -1.5 R&D expenditures 68.4 61.0 7.4 94.0 10.4 - ------------------------------------------------------------------------------------------------- ----------------------------
RICOH COMPANY, LTD. * The Company bases the forecast estimates for March 31, 2004 above upon information currently available to management, which involves risks and uncertainties that could cause actual results to differ materially from those projected. 1 PERFORMANCE *Overview Consolidated net sales for the 3rd quarter of fiscal 2004 (the three months period from October 1 to December 31, 2003) amounted to Yen 420.9 billion. During this quarter, the average yen exchange rates were at Yen 108.92 against the U.S. dollar (an appreciation of approximately 11.2% as compared to the previous corresponding period) and Yen 129.58 against the Euro (a depreciation of approximately 5.7% as compared to the previous corresponding period). Net sales would rise 0.6% excluding impacts of such foreign currency exchange fluctuations. In Japan, sales of printing systems such as MFPs (multifunctional printers) and laser printers increased. We strategically focused these product categories in order to deal with customer needs shifting to multifunctional and networking. In addition, solutions business such as useware and support continued to be favorable. Overall domestic sales consequently increased by 1.3% as compared to the previous corresponding period. As for overseas, sales of product categories such as PPCs (plain paper copier), MFPs and laser printers, especially color models, increased in each region. Although sales in Europe increased by 12.5% as compared to the previous corresponding period, sales in the Americas decreased by 9.8% as compared to the previous corresponding period (1.2% increase excluding foreign currency exchange impact), due to the yen's appreciation to the U.S. dollar. And sales in other region such as China, Asian and Oceania countries decreased by 14.1% as compared to the previous corresponding period, owing to decline of optical disks demands and cutback of analog camera business. As the result, overall overseas sales decreased by 1.2% as compared to the previous corresponding period. Excluding impacts of the foreign exchange fluctuations, overall overseas sales would have decreased by 0.1%. Operating income increased by 8.4% to Yen 36.2 billion in spite of increase of social insurance premium and strategic costs in research and development and the others. It is due mainly to the effect of new offering and sales growth of high-margin, high-value-added categories such as color PPCs, MFPs and laser printers, as well as ongoing cost cutting activities. Income before income taxes consequently increased by 10.9% as compared to the previous corresponding period, to Yen 33.2 billion, despite of foreign exchange losses in other income expense. Due to the change of the Corporate Tax Law in Japan, the amount of tax exemption on research and development expenses was increased, and the overall profitability improved, thereby leading to a decline in the effective tax rate. As a result, net income increased by 10.5% as compared to the previous corresponding period, to Yen 19.6 billion. 2 *Conditions by Product Line Office Equipment (Sales up 0.8% to Yen 368.5 billion) Customer demand has shift more and more to networking and colorization in Japan and overseas market place. In that business environment, we have enforced solution proposal to customers for the optimization of their total printing cost in order to support their efficient management of TDV (total document volume). As a result, sales of printing systems such as MFPs and laser printers have continued to grow. In Japan, sales of Network System Solution category such as useware and support continuously increased in addition to that demand's shift. And overseas sales increased despite of the yen's appreciation to the U.S. dollar, due primarily to color products and the continuous offerings of new products. As a result, the total sales of Office Equipment increased by 0.8% as compared to the previous corresponding period, to Yen 368.5 billion. Imaging Solutions (Sales down 9.3% to Yen 189.0 billion) Digital Imaging Systems - Shift to multifunctional products cause the sales decline of facsimiles and duplicators - Overseas sales of color PPCs increased in each region. As a result, sales in this category decreased by 5.0%. Other Imaging Systems - Sales were down by 20.6% due to the shift from analog products to MFPs and color products Network Input/Output Systems (Sales up 17.5% to Yen 137.9 billion) Printing Systems - Continuous new offering products to cope with the shift to networked and color models in Japan and overseas (Imagio Neo 352/452 series and Imagio Neo C385/C325 series in Japan) (Aficio 2022/2027 series and Aficio CL3000/CL7000 series overseas) - Sales of MFPs and laser printers continued increasing. - Steadily progressed sales of color products, especially overseas As a result, sales of this category increased by 21.0%. Other Input/Output Systems Sales in the optical discs business, which was favorable results in the previous term, decreased by 7.5%. Network System Solutions (Sales up 3.9% to Yen 41.6 billion) - Responded to customer's needs for cost cutting on information technology and workflow performance improvement on data processing. - Continuous sales growth of solution business such as useware and support - Sluggish customer demand for PC and server touched bottom. Operating income for the entire office equipment business increased by 12.5% as compared to the previous corresponding period, to Yen 49.9 billion. This can be ascribed to the continued introduction of new high-margin, high-value-added products, an increase in their sales, and the effects of ongoing cost-cutting efforts in production, although yen's appreciation to U.S. dollar was unfavorably impacted. Other Businesses (Sales down 4.8% to Yen 52.3 billion) Sales in this category decreased by 4.8% as compared to the previous corresponding period, to Yen 52.3 billion, due primarily to the cutback of analog camera business and sluggish demand for meter equipments. Other business such as leasing achieved steady gains. As a result, overall operating income for other businesses decreased to Yen 1.0 billion. *Cash Flows (Nine months from April 1, 2003 to December 31, 2003) Net cash provided by operating activities decreased Yen 30.4 billion as compared to the previous corresponding period, to Yen 81.6 billion. It was due to the fact that net income increased as compared to the previous corresponding period and trade receivable decreased, although inventories increased in order to cope with overseas sales expansion, and income tax and bonus were paid. Net cash used in investing activities was Yen 40.4 billion due to capital investment in new product lines and product development. As a result, free cash flow generated by operating and investing activities totaled Yen 41.2 billion, up Yen 5.8 billion as compared to the previous corresponding period. Net cash provided in financing activities amounted to Yen 9.2 billion due primarily to temporary increase of interest-bearing debt, payment of dividends and reacquisition of treasury stock. As a result, cash and cash equivalents at the end of the 3rd quarter were Yen 49.1 billion higher than the end of the preceding year, standing at Yen 238.3 billion. 3 *Forecast for the entire fiscal year As for the forecast of business results for the fiscal year ended March 31, 2004, we have slightly reduced our sales forecast as announced in October 2003 to Yen 1,777.0 billion with 2.2% growth as compared to the previous year. However, we believe that domestic sales can continuously increase due to the effect of sales strategies taken proactively in this 3rd quarter, and overseas sales can further increase. For the 4th quarter and onward, we maintain our exchange rate assumption of Yen 108.00 against the U.S. dollar and of Yen 128.00 against the Euro. As for income, we revised upward our forecast of operating income from Yen 152.0 billion announced in October 2003 to Yen 153.0 billion, due primarily to steady results up to 3rd quarter and our anticipation of further improvement in profitability. In terms of our forecast of income before income tax and net income in the current fiscal year, we intend to remain as announced in October 2003, Yen 144.0 billion and Yen 85.0 billion respectively. Exchange Rate Assumptions for the full year ended March 31, 2004 US$ 1 = Yen 113.26 (Yen 121.96 in previous fiscal year) EURO 1 = Yen 131.13 (Yen 121.00 in previous fiscal year)
(Billions of yen) - ----------------------------------------------------------------------------------------------------------- Year ended Year ended March 31, 2004 March 31, 2003 Change (Forecast) (Results) - ----------------------------------------------------------------------------------------------------------- Domestic sales 900.0 896.0 0.4% Overseas sales 877.0 842.3 4.1% Net sales 1,777.0 1,738.3 2.2% (*1) Gross profit 778.0 745.3 4.4% Operating income 153.0 133.6 14.5% Income before income taxes 144.0 123.4 16.6% Net income 85.0 72.5 17.2% (*2) - -----------------------------------------------------------------------------------------------------------
Notes: *1...Net sales would be tenth consecutive year of growth. *2...Net income would be twelfth consecutive year of growth and tenth consecutive year of record high. * Ricoh bases the forecast estimates for March 31, 2004 above upon information currently available to management, which involves risks and uncertainties that could cause actual results to differ materially from those projected. 4 RICOH COMPANY, LTD. AND CONSOLIDATED SUBSIDIARIES FINANCIAL HIGHLIGHTS FOR THE 3RD QUARTER ENDED DECEMBER 31, 2003 (U.S. GAAP FINANCIAL INFORMATION) 1. ITEMS RELATING TO 3RD QUARTER FINANCIAL STATEMENTS (1) No change in accounting method has been made. (2) Change relating to the scale of consolidation and the application of the equity method: Consolidated subsidiaries: No change Companies accounted for by the equity method: No addition; 1 removal 2. RESULTS FOR THE PERIOD FROM OCTOBER 1, 2003 TO DECEMBER 31, 2003
(1) Operating Results (Millions of yen) - ----------------------------------------------------------------------------------------------------------------------------------- Three months ended Three months ended Year ended December 31, 2003 December 31, 2002 March 31, 2003 - ----------------------------------------------------------------------------------------------------------------------------------- Net sales 420,903 420,739 1,738,358 (% change from the previous corresponding period) 0.0 4.8 3.9 Operating income 36,214 33,394 133,654 (% change from the previous corresponding period) 8.4 12.3 3.1 Income before income taxes 33,266 29,987 123,470 (% change from the previous corresponding period) 10.9 15.9 8.4 Net income 19,664 17,801 72,513 (% change from the previous corresponding period) 10.5 19.5 17.7 Net income per share-basic (yen) 26.53 24.51 99.79 Net income per share-diluted (yen) - 23.74 96.81 - ----------------------------------------------------------------------------------------------------------------------------------- Note: Equity in earnings of affiliates: Yen 932 million (Yen 459 million in previous corresponding period) (2) Financial Position (Millions of yen) - ----------------------------------------------------------------------------------------------------------------------------------- December 31, 2003 December 31, 2002 March 31, 2003 - ----------------------------------------------------------------------------------------------------------------------------------- Total assets 1,922,150 1,807,267 1,884,922 Shareholders' equity 708,888 671,132 657,514 Equity ratio (%) 36.9 37.1 34.9 Equity per share (yen) 958.20 925.98 885.41 - ----------------------------------------------------------------------------------------------------------------------------------- Note: Number of shares outstanding as of December 31, 2003: 739,813,149 shares (724,777,428 shares as of December 31, 2002) Cash Flow (Millions of yen) - ----------------------------------------------------------------------------------------------------------------------------------- Nine months ended Nine months ended Year ended December 31, 2003 December 31, 2002 March 31, 2003 - ----------------------------------------------------------------------------------------------------------------------------------- Cash flows from operating activities 81,698 112,173 185,742 Cash flows from investing activities -40,400 -76,695 -98,199 Cash flows from financing activities 9,223 -26,212 -67,143 Cash and cash equivalents at end of period 238,389 177,564 189,243 - ----------------------------------------------------------------------------------------------------------------------------------- 3. FORECAST OF OPERATING RESULTS FROM APRIL 1, 2003 TO MARCH 31, 2004 (Millions of yen) - ----------------------------------------------------------------------------------------------------------------------------------- Net sales 1,777,000 Operating income 153,000 Income before income taxes 144,000 Net income 85,000 - -----------------------------------------------------------------------------------------------------------------------------------
Note: Net income per share (Consolidated) 114.89 yen In accordance with Japanese regulations, Ricoh has issued forecast for its financial results for the fiscal year ending March 2004. These forecast are forward-looking statements based on a number of assumptions and beliefs in light of the information currently available to management and subject to significant risks and uncertainties. 5 CONSOLIDATED PERFORMANCE 1. CONSOLIDATED STATEMENTS OF INCOME
(Three months ended December 31, 2003 and 2002) (Millions of yen) - ------------------------------------------------------------------------------------------------------------------ Three months ended Three months ended December 31, 2003 December 31, 2002 Change % - ------------------------------------------------------------------------------------------------------------------ Net sales 420,903 420,739 164 0.0 Cost of sales 235,124 235,802 -678 -0.3 Percentage of net sales (%) 55.9 56.0 Gross Profit 185,779 184,937 842 0.5 Percentage of net sales (%) 44.1 44.0 Selling, general and administrative expenses 149,565 151,543 -1,978 -1.3 Percentage of net sales (%) 35.5 36.1 Operating income 36,214 33,394 2,820 8.4 Percentage of net sales (%) 8.6 7.9 Other (income) expense Interest and dividend income 434 603 -169 -28.0 Percentage of net sales (%) 0.1 0.1 Interest expense 1,337 1,298 39 3.0 Percentage of net sales (%) 0.3 0.3 Other, net 2,045 2,712 -667 -24.6 Percentage of net sales (%) 0.5 0.6 Income before income taxes, equity income and minority interests 33,266 29,987 3,279 10.9 Percentage of net sales (%) 7.9 7.1 Provision for income taxes 13,473 12,729 744 5.8 Percentage of net sales (%) 3.2 3.0 Minority interests in earnings of subsidiaries 1,061 -84 1,145 - Percentage of net sales (%) 0.2 0.0 Equity in earnings of affiliates 932 459 473 103.1 Percentage of net sales (%) 0.2 0.1 Net income 19,664 17,801 1,863 10.5 Percentage of net sales (%) 4.7 4.2 - ------------------------------------------------------------------------------------------------------------------ Reference : Exchange rate US$ 1 Yen 108.92 Yen 122.59 EURO 1 Yen 129.58 Yen 122.59
(Nine months ended December 31, 2003, 2002 and year ended March 31, 2003) (Millions of yen) - ------------------------------------------------------------------------------------------------------------------------------------ Nine months ended Nine months ended Year ended December 31, 2003 December 31, 2002 Change % March 31, 2003 - ------------------------------------------------------------------------------------------------------------------------------------ Net sales 1,308,993 1,277,560 31,433 2.5 1,738,358 Cost of sales 735,107 731,978 3,129 0.4 993,009 Percentage of net sales (%) 56.2 57.3 57.1 Gross Profit 573,886 545,582 28,304 5.2 745,349 Percentage of net sales (%) 43.8 42.7 42.9 Selling, general and administrative expenses 460,417 450,860 9,557 2.1 611,695 Percentage of net sales (%) 35.1 35.3 35.2 Operating income 113,469 94,722 18,747 19.8 133,654 Percentage of net sales (%) 8.7 7.4 7.7 Other (income) expense Interest and dividend income 1,747 2,638 -891 -33.8 3,772 Percentage of net sales (%) 0.1 0.2 0.2 Interest expense 4,200 5,328 -1,128 -21.2 6,853 Percentage of net sales (%) 0.3 0.4 0.4 Other, net 6,334 6,372 -38 -0.6 7,103 Percentage of net sales (%) 0.5 0.5 0.4 Income before income taxes, equity income and minority interests 104,682 85,660 19,022 22.2 123,470 Percentage of net sales (%) 8.0 6.7 7.1 Provision for income taxes 41,897 36,749 5,148 14.0 51,984 Percentage of net sales (%) 3.2 2.9 3.0 Minority interests in earnings of subsidiaries 2,760 -348 3,108 - 1,376 Percentage of net sales (%) 0.2 0.0 0.0 Equity in earnings of affiliates 1,904 2,067 -163 -7.9 2,403 Percentage of net sales (%) 0.1 0.2 0.1 Net income 61,929 51,326 10,603 20.7 72,513 Percentage of net sales (%) 4.7 4.0 4.2 - ------------------------------------------------------------------------------------------------------------------------------------ Reference : Exchange rate US$ 1 Yen 115.00 Yen 122.92 Yen 121.96 EURO 1 Yen 132.17 Yen 118.84 Yen 121.00
6 2-1. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Three months ended December 31, 2003 and 2002) (Millions of yen) - ------------------------------------------------------------------------------------------------------------------------- Three months ended Three months ended December 31, 2003 December 31, 2002 Change % - ------------------------------------------------------------------------------------------------------------------------- (Office Equipment) Imaging Solutions: Digital Imaging Systems 143,882 151,471 -7,589 -5.0 Percentage of net sales (%) 34.2 36.0 Other Imaging Systems 45,151 56,852 -11,701 -20.6 Percentage of net sales (%) 10.7 13.5 Total Imaging Solutions 189,033 208,323 -19,290 -9.3 Percentage of net sales (%) 44.9 49.5 - ------------------------------------------------------------------------------------------------------------------------- Network Input/Output Systems: Printing Systems 124,564 102,972 21,592 21.0 Percentage of net sales (%) 29.6 24.5 Other Input/Output Systems 13,372 14,449 -1,077 -7.5 Percentage of net sales (%) 3.2 3.4 Total Network Input/Output Systems 137,936 117,421 20,515 17.5 Percentage of net sales (%) 32.8 27.9 - ------------------------------------------------------------------------------------------------------------------------- Network System Solutions 41,623 40,073 1,550 3.9 Percentage of net sales (%) 9.9 9.5 - ------------------------------------------------------------------------------------------------------------------------- Office Equipment Total 368,592 365,817 2,775 0.8 Percentage of net sales (%) 87.6 86.9 - ------------------------------------------------------------------------------------------------------------------------- (Other Businesses) Other Businesses 52,311 54,922 -2,611 -4.8 Percentage of net sales (%) 12.4 13.1 - ------------------------------------------------------------------------------------------------------------------------- Grand Total 420,903 420,739 164 0.0 Percentage of net sales (%) 100.0 100.0 - ------------------------------------------------------------------------------------------------------------------------- Reference : Exchange rate US$ 1 Yen 108.92 Yen 122.59 EURO 1 Yen 129.58 Yen 122.59 (Nine months ended December 31, 2003, 2002 and year ended March 31, 2003) (Millions of yen) - ------------------------------------------------------------------------------------------------------------------------------------ Nine months ended Nine months ended Year ended December 31, 2003 December 31, 2002 Change % March 31, 2003 - ------------------------------------------------------------------------------------------------------------------------------------ (Office Equipment) Imaging Solutions: Digital Imaging Systems 453,040 460,856 -7,816 -1.7 626,967 Percentage of net sales (%) 34.6 36.1 36.1 Other Imaging Systems 151,087 177,829 -26,742 -15.0 232,746 Percentage of net sales (%) 11.6 13.9 13.4 Total Imaging Solutions 604,127 638,685 -34,558 -5.4 859,713 Percentage of net sales (%) 46.2 50.0 49.5 - ------------------------------------------------------------------------------------------------------------------------------------ Network Input/Output Systems: Printing Systems 358,021 292,380 65,641 22.5 408,830 Percentage of net sales (%) 27.4 22.9 23.5 Other Input/Output Systems 43,097 43,984 -887 -2.0 54,549 Percentage of net sales (%) 3.2 3.4 3.2 Total Network Input/Output Systems 401,118 336,364 64,754 19.3 463,379 Percentage of net sales (%) 30.6 26.3 26.7 - ------------------------------------------------------------------------------------------------------------------------------------ Network System Solutions 138,855 140,125 -1,270 -0.9 197,482 Percentage of net sales (%) 10.6 11.0 11.3 - ------------------------------------------------------------------------------------------------------------------------------------ Office Equipment Total 1,144,100 1,115,174 28,926 2.6 1,520,574 Percentage of net sales (%) 87.4 87.3 87.5 - ------------------------------------------------------------------------------------------------------------------------------------ (Other Businesses) Other Businesses 164,893 162,386 2,507 1.5 217,784 Percentage of net sales (%) 12.6 12.7 12.5 - ------------------------------------------------------------------------------------------------------------------------------------ Grand Total 1,308,993 1,277,560 31,433 2.5 1,738,358 Percentage of net sales (%) 100.0 100.0 100.0 - ------------------------------------------------------------------------------------------------------------------------------------ Reference : Exchange rate US$ 1 Yen 115.00 Yen 122.92 Yen 121.96 EURO 1 Yen 132.17 Yen 118.84 Yen 121.00 Each category includes the following product line: Digital Imaging Systems Digital PPCs, color PPCs, digital duplicators and facsimile machines Other Imaging Systems Analog PPCs, diazo copiers, and thermal paper Printing Systems MFPs(multifunctional printers), laser printers and software Other Input/Output Systems Optical discs and system scanners Network System Solutions Personal computers, PC servers, network systems and network related software Other Businesses Optical equipments, metering equipments and semiconductors
7 2-2. CONSOLIDATED SALES BY GEOGRAPHIC AREA
(Three months ended December 31, 2003 and 2002) (Millions of yen) - ---------------------------------------------------------------------------------------------------------------- Three months ended Three months ended December 31, 2003 December 31, 2002 Change % - ---------------------------------------------------------------------------------------------------------------- (Domestic) 212,908 210,197 2,711 1.3 Percentage of net sales (%) 50.6 50.0 (Overseas) 207,995 210,542 -2,547 -1.2 Percentage of net sales (%) 49.4 50.0 The Americas 75,933 84,177 -8,244 -9.8 Percentage of net sales (%) 18.0 20.0 Europe 99,422 88,381 11,041 12.5 Percentage of net sales (%) 23.6 21.0 Other 32,640 37,984 -5,344 -14.1 Percentage of net sales (%) 7.8 9.0 Grand Total 420,903 420,739 164 0.0 Percentage of net sales (%) 100.0 100.0 - ----------------------------------------------------------------------------------------------------------------- Reference : Exchange rate US$ 1 Yen 108.92 Yen 122.59 EURO 1 Yen 129.58 Yen 122.59 (Nine months ended December 31, 2003, 2002 and year ended March 31, 2003) (Millions of yen) - ------------------------------------------------------------------------------------------------------------------------------------ Nine months ended Nine months ended Year ended December 31, 2003 December 31, 2002 Change % March 31, 2003 - ------------------------------------------------------------------------------------------------------------------------------------ (Domestic) 661,544 659,772 1,772 0.3 896,022 Percentage of net sales (%) 50.5 51.6 51.5 (Overseas) 647,449 617,788 29,661 4.8 842,336 Percentage of net sales (%) 49.5 48.4 48.5 The Americas 243,597 254,610 -11,013 -4.3 343,940 Percentage of net sales (%) 18.6 20.0 19.8 Europe 296,373 254,550 41,823 16.4 354,477 Percentage of net sales (%) 22.6 19.9 20.4 Other 107,479 108,628 -1,149 -1.1 143,919 Percentage of net sales (%) 8.3 8.5 8.3 Grand Total 1,308,993 1,277,560 31,433 2.5 1,738,358 Percentage of net sales (%) 100.0 100.0 100.0 - ------------------------------------------------------------------------------------------------------------------------------------ Reference : Exchange rate US$ 1 Yen 115.00 Yen 122.92 Yen 121.96 EURO 1 Yen 132.17 Yen 118.84 Yen 121.00
8 3. CONSOLIDATED BALANCE SHEETS (December 31, 2003 and March 31, 2003)
Assets (Millions of yen) - ---------------------------------------------------------------------------------------------------------------------- December 31, 2003 March 31, 2003 Change - ---------------------------------------------------------------------------------------------------------------------- Current Assets Cash and time deposits 239,179 200,330 38,849 Trade receivables 402,866 417,942 -15,076 Marketable securities 123 107 16 Inventories 163,101 146,051 17,050 Other current assets 52,466 58,083 -5,617 Total Current Assets 857,735 822,513 35,222 Fixed Assets Tangible fixed assets 237,071 248,752 -11,681 Finance receivable 502,198 476,293 25,905 Other Investments 325,146 337,364 -12,218 Total Fixed Assets 1,064,415 1,062,409 2,006 - ---------------------------------------------------------------------------------------------------------------------- Total Assets 1,922,150 1,884,922 37,228 - ---------------------------------------------------------------------------------------------------------------------- Note: Contents of cash and time deposits: Cash and cash equivalents 238,389 189,243 Time deposits 790 11,087 Liabilities and Shareholders' Investment (Millions of yen) - ---------------------------------------------------------------------------------------------------------------------- December 31, 2003 March 31, 2003 Change - ---------------------------------------------------------------------------------------------------------------------- Current Liabilities Trade payables 271,165 280,798 -9,633 Short-term borrowings 222,565 138,713 83,852 Other current liabilities 136,632 169,072 -32,440 Total Current Liabilities 630,362 588,583 41,779 Fixed Liabilities Long-term indebtedness 290,556 345,902 -55,346 Retirement benefit obligation 214,863 209,011 5,852 Other fixed liabilities 28,596 30,653 -2,057 Total Fixed Liabilities 534,015 585,566 -51,551 - ---------------------------------------------------------------------------------------------------------------------- Total Liabilities 1,164,377 1,174,149 -9,772 - ---------------------------------------------------------------------------------------------------------------------- Minority Interest 48,885 53,259 -4,374 - ---------------------------------------------------------------------------------------------------------------------- Shareholders' Investment Common stock 135,364 135,364 - Additional paid-in capital 186,599 186,521 78 Retained earnings 485,535 434,748 50,787 Accumulated other comprehensive income (loss) -88,454 -94,733 6,279 Treasury stock -10,156 -4,386 -5,770 Total Shareholders' Investment 708,888 657,514 51,374 - ---------------------------------------------------------------------------------------------------------------------- Total Liabilities and Shareholders' Investment 1,922,150 1,884,922 37,228 - ---------------------------------------------------------------------------------------------------------------------- Note: Other comprehensive income; Net unrealized holding gains on available-for-sale securities 11,877 8,582 3,295 Pension liability adjustments -81,322 -89,119 7,797 Net unrealized gains (losses) on derivative instruments -43 -178 135 Cumulative translation adjustments -18,966 -14,018 -4,948
Reference: Exchange rate December 31, 2003 March 31, 2003 US$ 1 Yen 107.13 Yen 120.20 EURO 1 Yen 133.74 Yen 129.83 9 4. CONSOLIDATED STATEMENTS OF CASH FLOW
(Nine months ended December 31, 2003, 2002 and year ended March 31, 2003) (Millions of yen) - ------------------------------------------------------------------------------------------------------------------------------------ Nine months ended Nine months ended Year ended December 31, 2003 December 31, 2002 March 31, 2003 - ------------------------------------------------------------------------------------------------------------------------------------ I. Cash Flows from Operating Activities: 1. Net income 61,929 51,326 72,513 2. Adjustments to reconcile net income to net cash provided by operating activities-- Depreciation and amortization 56,381 56,519 76,551 Equity in earnings of affiliates, net of dividends received -1,162 -1,129 -1,167 Deferred income taxes 1,026 -5,139 -9,289 Loss on disposal and sales of tangible fixed assets 1,094 1,078 1,975 Changes in assets and liabilities-- Decrease in trade receivables 10,563 32,308 22,176 (Increase) decrease in inventories -21,209 9,765 14,983 Increase in finance receivables -22,666 -20,517 -33,109 (Decrease) increase in trade payables -6,111 -22,407 5,632 (Decrease) increase in accrued income taxes and accrued expenses and other -28,587 -13,965 11,173 Retirement benefit obligation, net 15,455 4,804 7,806 Other, net 14,985 19,530 16,498 - ------------------------------------------------------------------------------------------------------------------------------------ Net cash provided by operating activities 81,698 112,173 185,742 - ------------------------------------------------------------------------------------------------------------------------------------ II. Cash Flows from Investing Activities: 1. Proceeds from sales of property, plant and equipment 134 201 245 2. Expenditures for tangible fixed assets -51,830 -53,300 -71,984 3. Payments for purchases of available-for-sale securities -25,200 -52,142 -52,219 4. Proceeds from sales of available-for-sale securities 34,047 24,148 24,513 5. Decrease in time deposits 10,192 4,882 944 6. Other, net -7,743 -484 302 - ------------------------------------------------------------------------------------------------------------------------------------ Net cash used in investing activities -40,400 -76,695 -98,199 - ------------------------------------------------------------------------------------------------------------------------------------ III. Cash Flows from Financing Activities: 1. Proceeds from long-term indebtedness 1,104 57,685 58,194 2. Repayment of long-term indebtedness -25,788 -15,547 -23,133 3. (Decrease) increase in short-term borrowings, net 68,169 -52,257 -73,393 4. Proceeds from issuance of long-term debt securities 1,000 11,000 11,000 5. Repayment of long-term debt securities -14,000 -11,553 -11,723 6. Cash dividends paid -11,136 -10,174 -10,176 7. Purchase of treasury stocks -9,634 -4,897 -17,281 8. Other, net -492 -469 -631 - ------------------------------------------------------------------------------------------------------------------------------------ Net cash provided by (used in) financing activities 9,223 -26,212 -67,143 - ------------------------------------------------------------------------------------------------------------------------------------ IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents -1,375 -1,874 -1,329 - ------------------------------------------------------------------------------------------------------------------------------------ V. Net Increase in Cash and Cash Equivalents 49,146 7,392 19,071 - ------------------------------------------------------------------------------------------------------------------------------------ VI. Cash and Cash Equivalents at Beginning of Year 189,243 170,172 170,172 - ------------------------------------------------------------------------------------------------------------------------------------ VII. Cash and Cash Equivalents at End of Period 238,389 177,564 189,243 - ------------------------------------------------------------------------------------------------------------------------------------
10 5. SEGMENT INFORMATION (1) Industry Segment Information
(Three months ended December 31, 2003 and 2002) (Millions of yen) - ------------------------------------------------------------------------------------------- ----------------------------- Three months ended Three months ended December 31, 2003 December 31, 2002 Change % - ------------------------------------------------------------------------------------------------------------------------- OFFICE EQUIPMENT: Net sales: Unaffiliated customers 368,592 365,817 2,775 0.8 Intersegment - - - - Total 368,592 365,817 2,775 0.8 - ------------------------------------------------------------------------------------------------------------------------- Operating expenses 318,629 321,425 -2,796 -0.9 - ------------------------------------------------------------------------------------------------------------------------- Operating income 49,963 44,392 5,571 12.5 Operating income on office equipment sales(%) 13.6 12.1 - ------------------------------------------------------------------------------------------------------------------------- OTHER BUSINESSES: Net sales: Unaffiliated customers 52,311 54,922 -2,611 -4.8 Intersegment 575 657 -82 -12.5 Total 52,886 55,579 -2,693 -4.8 - ------------------------------------------------------------------------------------------------------------------------- Operating expenses 51,878 54,425 -2,547 -4.7 - ------------------------------------------------------------------------------------------------------------------------- Operating income 1,008 1,154 -146 -12.7 Operating income on sales in other businesses (%) 1.9 2.1 - ------------------------------------------------------------------------------------------------------------------------- CORPORATE AND ELIMINATIONS: Net sales: Intersegment -575 -657 82 - Total -575 -657 82 - - ------------------------------------------------------------------------------------------------------------------------- Operating expenses: Intersegment -569 -666 97 - Corporate 14,751 12,161 2,590 - Total 14,182 11,495 2,687 - - ------------------------------------------------------------------------------------------------------------------------- Operating income -14,757 -12,152 -2,605 - - ------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED: Net sales: Unaffiliated customers 420,903 420,739 164 0.0 Intersegment - - - - Total 420,903 420,739 164 0.0 - ------------------------------------------------------------------------------------------------------------------------- Operating expenses 384,689 387,345 -2,656 -0.7 - ------------------------------------------------------------------------------------------------------------------------- Operating income 36,214 33,394 2,820 8.4 Operating income on consolidated net sales(%) 8.6 7.9 - -------------------------------------------------------------------------------------------------------------------------
(Nine months ended December 31, 2003, 2002 and year ended March 31, 2003) (Millions of yen) - ----------------------------------------------------------------------------------------------------------------------------------- Nine months ended Nine months ended Year ended December 31, 2003 December 31, 2002 Change % March 31, 2003 - ----------------------------------------------------------------------------------------------------------------------------------- OFFICE EQUIPMENT: Net sales: Unaffiliated customers 1,144,100 1,115,174 28,926 2.6 1,520,574 Intersegment - - - - - Total 1,144,100 1,115,174 28,926 2.6 1,520,574 - ------------------------------------------------------------------------------------------------------------------------------------ Operating expenses 991,438 977,198 14,240 1.5 1,329,776 - ------------------------------------------------------------------------------------------------------------------------------------ Operating income 152,662 137,976 14,686 10.6 190,798 Operating income on office equipment sales(%) 13.3 12.4 12.5 - ------------------------------------------------------------------------------------------------------------------------------------ OTHER BUSINESSES: Net sales: Unaffiliated customers 164,893 162,386 2,507 1.5 217,784 Intersegment 1,740 2,149 -409 -19.0 2,755 Total 166,633 164,535 2,098 1.3 220,539 - ------------------------------------------------------------------------------------------------------------------------------------ Operating expenses 162,639 166,472 -3,833 -2.3 222,772 - ------------------------------------------------------------------------------------------------------------------------------------ Operating income 3,994 -1,937 5,931 - -2,233 Operating income on sales in other businesses (%) 2.4 -1.2 -1.0 - ------------------------------------------------------------------------------------------------------------------------------------ CORPORATE AND ELIMINATIONS: Net sales: Intersegment -1,740 -2,149 409 - -2,755 Total -1,740 -2,149 409 - -2,755 - ------------------------------------------------------------------------------------------------------------------------------------ Operating expenses: Intersegment -1,764 -2,153 389 - -2,726 Corporate 43,211 41,321 1,890 - 54,882 Total 41,447 39,168 2,279 - 52,156 - ------------------------------------------------------------------------------------------------------------------------------------ Operating income -43,187 -41,317 -1,870 - -54,911 - ------------------------------------------------------------------------------------------------------------------------------------ CONSOLIDATED: Net sales: Unaffiliated customers 1,308,993 1,277,560 31,433 2.5 1,738,358 Intersegment - - - - - Total 1,308,993 1,277,560 31,433 2.5 1,738,358 - ------------------------------------------------------------------------------------------------------------------------------------ Operating expenses 1,195,524 1,182,838 12,686 1.1 1,604,704 - ------------------------------------------------------------------------------------------------------------------------------------ Operating income 113,469 94,722 18,747 19.8 133,654 Operating income on consolidated net sales(%) 8.7 7.4 7.7 - ------------------------------------------------------------------------------------------------------------------------------------
11 (2) Geographic Segment Information
(Three months ended December 31, 2003 and 2002) (Millions of yen) - ------------------------------------------------------------------------------------------------------------------- Three months ended Three months ended December 31, 2003 December 31, 2002 Change % - ------------------------------------------------------------------------------------------------------------------- JAPAN: Net sales: External customers 224,398 226,091 -1,693 -0.7 Intersegment 83,101 84,816 -1,715 -2.0 Total 307,499 310,907 -3,408 -1.1 - ------------------------------------------------------------------------------------------------------------------- Operating expenses 286,985 284,768 2,217 0.8 - ------------------------------------------------------------------------------------------------------------------- Operating income 20,514 26,139 -5,625 -21.5 Operating income on sales in Japan(%) 6.7 8.4 - ------------------------------------------------------------------------------------------------------------------- THE AMERICAS: Net sales: External customers 72,323 82,058 -9,735 -11.9 Intersegment 872 1,273 -401 -31.5 Total 73,195 83,331 -10,136 -12.2 - ------------------------------------------------------------------------------------------------------------------- Operating expenses 71,067 81,538 -10,471 -12.8 - ------------------------------------------------------------------------------------------------------------------- Operating income 2,128 1,793 335 18.7 Operating income on sales in the Americas(%) 2.9 2.2 - ------------------------------------------------------------------------------------------------------------------- EUROPE: Net sales: External customers 98,864 87,571 11,293 12.9 Intersegment 1,036 651 385 59.1 Total 99,900 88,222 11,678 13.2 - ------------------------------------------------------------------------------------------------------------------- Operating expenses 93,998 83,717 10,281 12.3 - ------------------------------------------------------------------------------------------------------------------- Operating income 5,902 4,505 1,397 31.0 Operating income on sales in Europe(%) 5.9 5.1 - ------------------------------------------------------------------------------------------------------------------- OTHER: Net sales: External customers 25,318 25,019 299 1.2 Intersegment 20,227 19,345 882 4.6 Total 45,545 44,364 1,181 2.7 - ------------------------------------------------------------------------------------------------------------------- Operating expenses 42,923 41,298 1,625 3.9 - ------------------------------------------------------------------------------------------------------------------- Operating income 2,622 3,066 -444 -14.5 Operating income on sales in other(%) 5.8 6.9 - ------------------------------------------------------------------------------------------------------------------- CORPORATE AND ELIMINATIONS: Net sales: Intersegment -105,236 -106,085 849 - Total -105,236 -106,085 849 - - ------------------------------------------------------------------------------------------------------------------- Operating expenses: -110,284 -103,976 -6,308 - - ------------------------------------------------------------------------------------------------------------------- Operating income 5,048 -2,109 7,157 - - ------------------------------------------------------------------------------------------------------------------- CONSOLIDATED: Net sales: External customers 420,903 420,739 164 0.0 Intersegment - - - - Total 420,903 420,739 164 0.0 - ------------------------------------------------------------------------------------------------------------------- Operating expenses 384,689 387,345 -2,656 -0.7 - ------------------------------------------------------------------------------------------------------------------- Operating income 36,214 33,394 2,820 8.4 Operating income on consolidated net sales(%) 8.6 7.9 - -------------------------------------------------------------------------------------------------------------------
12
(Nine months ended December 31, 2003, 2002 and year ended March 31, 2003) (Millions of yen) - ------------------------------------------------------------------------------------------------------------------------------------ Nine months ended Nine months ended Year ended December 31, 2003 December 31, 2002 Change % March 31, 2003 - ------------------------------------------------------------------------------------------------------------------------------------ JAPAN: Net sales: External customers 703,320 704,905 -1,585 -0.2 954,310 Intersegment 267,432 237,214 30,218 12.7 320,596 Total 970,752 942,119 28,633 3.0 1,274,906 - ------------------------------------------------------------------------------------------------------------------------------------ Operating expenses 893,451 878,746 14,705 1.7 1,188,760 - ------------------------------------------------------------------------------------------------------------------------------------ Operating income 77,301 63,373 13,928 22.0 86,146 Operating income on sales in Japan(%) 8.0 6.7 6.8 - ------------------------------------------------------------------------------------------------------------------------------------ THE AMERICAS: Net sales: External customers 234,288 246,998 -12,710 -5.1 333,935 Intersegment 3,864 3,810 54 1.4 5,620 Total 238,152 250,808 -12,656 -5.0 339,555 - ------------------------------------------------------------------------------------------------------------------------------------ Operating expenses 228,341 241,474 -13,133 -5.4 325,228 - ------------------------------------------------------------------------------------------------------------------------------------ Operating income 9,811 9,334 477 5.1 14,327 Operating income on sales in the Americas(%) 4.1 3.7 4.2 - ------------------------------------------------------------------------------------------------------------------------------------ EUROPE: Net sales: External customers 295,424 253,239 42,185 16.7 352,943 Intersegment 2,807 2,083 724 34.8 3,019 Total 298,231 255,322 42,909 16.8 355,962 - ------------------------------------------------------------------------------------------------------------------------------------ Operating expenses 282,817 243,814 39,003 16.0 337,693 - ------------------------------------------------------------------------------------------------------------------------------------ Operating income 15,414 11,508 3,906 33.9 18,269 Operating income on sales in Europe(%) 5.2 4.5 5.1 - ------------------------------------------------------------------------------------------------------------------------------------ OTHER: Net sales: External customers 75,961 72,418 3,543 4.9 97,170 Intersegment 69,452 54,175 15,277 28.2 72,664 Total 145,413 126,593 18,820 14.9 169,834 - ------------------------------------------------------------------------------------------------------------------------------------ Operating expenses 138,225 118,967 19,258 16.2 159,864 - ------------------------------------------------------------------------------------------------------------------------------------ Operating income 7,188 7,626 -438 -5.7 9,970 Operating income on sales in other(%) 4.9 6.0 5.9 - ------------------------------------------------------------------------------------------------------------------------------------ CORPORATE AND ELIMINATIONS: Net sales: Intersegment -343,555 -297,282 -46,273 - -401,899 Total -343,555 -297,282 -46,273 - -401,899 - ------------------------------------------------------------------------------------------------------------------------------------ Operating expenses: -347,310 -300,163 -47,147 - -406,841 - ------------------------------------------------------------------------------------------------------------------------------------ Operating income 3,755 2,881 874 - 4,942 - ------------------------------------------------------------------------------------------------------------------------------------ CONSOLIDATED: Net sales: External customers 1,308,993 1,277,560 31,433 2.5 1,738,358 Intersegment - - - - - Total 1,308,993 1,277,560 31,433 2.5 1,738,358 - ------------------------------------------------------------------------------------------------------------------------------------ Operating expenses 1,195,524 1,182,838 12,686 1.1 1,604,704 - ------------------------------------------------------------------------------------------------------------------------------------ Operating income 113,469 94,722 18,747 19.8 133,654 Operating income on consolidated net sales(%) 8.7 7.4 7.7 - ------------------------------------------------------------------------------------------------------------------------------------
13 6. SIGNIFICANT ACCOUNTING POLICIES (CONSOLIDATED) 1. CHANGE RELATING TO THE SCALE OF CONSOLIDATION AND THE APPLICATION OF THE EQUITY METHOD FROM OCTOBER 1, 2003 TO DECEMBER 31, 2003. Consolidated subsidiaries: No change Companies accounted for by the equity method: No addition Removal: T&P Co., Ltd. 2. CONSOLIDATED ACCOUNTING POLICIES (SUMMARY) (1) Principles of Consolidation The consolidated financial statements include the accounts of Ricoh and its consolidated subsidiaries. Investments in 20% to 50% owned companies when the company has the ability to exercise significant influence are accounted for on the equity basis. All significant inter-company balances and transactions have been eliminated in consolidation. (2) Securities In conformity with SFAS No.115, securities are mainly classified as available-for-sale securities. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of related taxes, excluded from earnings and reported in accumulated other comprehensive income (loss). The cost of the securities sold is computed based on the average cost of each security held at the time of sale. (3) Inventories Inventories are mainly stated at the lower of average cost or market. Inventory costs include raw materials, labor and manufacturing overheads. (4) Plant and Equipment Depreciation of plant and equipment is computed principally by using the declining-balance method over the estimated useful lives. Most of the foreign subsidiaries have adopted the straight-line method for computing depreciation. Certain leased buildings, machinery and equipment are accounted for as capital leases in conformity with SFAS No. 13, "Accounting for Leases." (5) Goodwill and Other Intangible Assets In conformity with SFAS No.142, Goodwill and intangible asset determined to have an indefinite useful life are not amortized. SFAS No. 142 requires annual impairment testing thereof. (6) Use of Estimates Management of the Company has made a number of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, including impairment losses of long-lived assets and the disclosures of fair value of financial instruments and contingent assets and liabilities, to prepare these financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates. 14 -APPENDIX- (3rd Quarter ended December 31, 2003)
1. CONSOLIDATED QUARTERLY PERFORMANCE OUTLINE Fiscal 2004 (Millions of yen) - --------------------------------------------------------------------------------------------------------------------- 1Q Change(%) 2Q Change(%) 3Q Change(%) - --------------------------------------------------------------------------------------------------------------------- Net sales 437,453 2.1 450,637 5.2 420,903 0.0 Gross profit 192,752 3.4 195,355 12.2 185,779 0.5 Operating income 38,484 7.1 38,771 52.6 36,214 8.4 Income before income taxes 37,317 15.6 34,099 45.7 33,266 10.9 Net income 22,355 14.5 19,910 42.2 19,664 10.5 - --------------------------------------------------------------------------------------------------------------------- Net income per share (yen) 30.04 - 26.75 - 26.53 - - --------------------------------------------------------------------------------------------------------------------- Total assets 1,924,631 - 1,912,162 - 1,922,150 - Shareholders' equity 685,730 - 703,075 - 708,888 - - --------------------------------------------------------------------------------------------------------------------- Shareholders' equity per share (yen) 920.97 - 946.38 - 958.20 - - ---------------------------------------------------------------------------------------------------------------------
Fiscal 2003 (Millions of yen) - ----------------------------------------------------------------------------------------------------------------------------------- 1Q Change(%) 2Q Change(%) 3Q Change(%) 4Q Change(%) - ----------------------------------------------------------------------------------------------------------------------------------- Net sales 428,271 4.0 428,550 5.0 420,739 4.8 460,798 2.2 Gross profit 186,497 7.2 174,148 3.7 184,937 6.5 199,767 8.3 Operating income 35,927 13.6 25,401 -10.2 33,394 12.3 38,932 -2.8 Income before income taxes 32,270 18.7 23,403 -7.7 29,987 15.9 37,810 6.3 Net income 19,521 31.2 14,004 3.5 17,801 19.5 21,187 15.7 - ----------------------------------------------------------------------------------------------------------------------------------- Net income per share (yen) 26.85 - 19.26 - 24.51 - 29.17 - - ----------------------------------------------------------------------------------------------------------------------------------- Total assets 1,821,949 - 1,826,385 - 1,807,267 - 1,884,922 - Shareholders' equity 648,343 - 663,665 - 671,132 - 657,514 - - ------------------------------------------------------------------- --------------------------------------------------------------- Shareholders' equity per share (yen) 891.78 - 912.98 - 925.98 - 885.41 - - -----------------------------------------------------------------------------------------------------------------------------------
A1 2. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Three months ended December 31, 2003 and 2002) (Millions of yen) - ------------------------------------------------------------------------------------------------------------------------------------ Three months ended Three months ended Change excluding December 31, 2003 December 31, 2002 Change % exchange impact % - ------------------------------------------------------------------------------------------------------------------------------------ (Office Equipment) Imaging Solutions: Digital Imaging Systems 143,882 151,471 -7,589 -5.0 -5,217 -3.4 Percentage of net sales (%) 34.2 36.0 Domestic 60,016 63,618 -3,602 -5.7 -3,602 -5.7 Overseas 83,866 87,853 -3,987 -4.5 -1,615 -1.8 Other Imaging Systems 45,151 56,852 -11,701 -20.6 -11,453 -20.1 Percentage of net sales (%) 10.7 13.5 Domestic 17,291 20,737 -3,446 -16.6 -3,446 -16.6 Overseas 27,860 36,115 -8,255 -22.9 -8,007 -22.2 Total Imaging Solutions 189,033 208,323 -19,290 -9.3 -16,670 -8.0 Percentage of net sales (%) 44.9 49.5 Domestic 77,307 84,355 -7,048 -8.4 -7,048 -8.4 Overseas 111,726 123,968 -12,242 -9.9 -9,622 -7.8 - ------------------------------------------------------------------------------------------------------------------------------------ Network Input/Output Systems: Printing Systems 124,564 102,972 21,592 21.0 21,844 21.2 Percentage of net sales (%) 29.6 24.5 Domestic 53,559 44,451 9,108 20.5 9,108 20.5 Overseas 71,005 58,521 12,484 21.3 12,736 21.8 Other Input/Output Systems 13,372 14,449 -1,077 -7.5 -1,329 -9.2 Percentage of net sales (%) 3.2 3.4 Domestic 1,052 2,274 -1,222 -53.7 -1,222 -53.7 Overseas 12,320 12,175 145 1.2 -107 -0.9 Total Network Input/Output Systems 137,936 117,421 20,515 17.5 20,515 17.5 Percentage of net sales (%) 32.8 27.9 Domestic 54,611 46,725 7,886 16.9 7,886 16.9 Overseas 83,325 70,696 12,629 17.9 12,629 17.9 - ------------------------------------------------------------------------------------------------------------------------------------ Network System Solutions 41,623 40,073 1,550 3.9 1,555 3.9 Percentage of net sales (%) 9.9 9.5 Domestic 40,540 39,324 1,216 3.1 1,216 3.1 Overseas 1,083 749 334 44.6 339 45.3 - ------------------------------------------------------------------------------------------------------------------------------------ Office Equipment Total 368,592 365,817 2,775 0.8 5,400 1.5 Percentage of net sales (%) 87.6 86.9 Domestic 172,458 170,404 2,054 1.2 2,054 1.2 Overseas 196,134 195,413 721 0.4 3,346 1.7 The Americas 75,643 83,705 -8,062 -9.6 1,149 1.4 Europe 98,428 86,837 11,591 13.3 4,848 5.6 Other 22,063 24,871 -2,808 -11.3 -2,651 -10.7 - ------------------------------------------------------------------------------------------------------------------------------------ (Other Businesses) Other Businesses 52,311 54,922 -2,611 -4.8 -2,956 -5.4 Percentage of net sales (%) 12.4 13.1 Domestic 40,450 39,793 657 1.7 657 1.7 Overseas 11,861 15,129 -3,268 -21.6 -3,613 -23.9 The Americas 290 472 -182 -38.6 -140 -29.7 Europe 994 1,544 -550 -35.6 -593 -38.4 Other 10,577 13,113 -2,536 -19.3 -2,880 -22.0 - ------------------------------------------------------------------------------------------------------------------------------------ Grand Total 420,903 420,739 164 0.0 2,444 0.6 Percentage of net sales (%) 100.0 100.0 Domestic 212,908 210,197 2,711 1.3 2,711 1.3 Percentage of net sales (%) 50.6 50.0 Overseas 207,995 210,542 -2,547 -1.2 -267 -0.1 Percentage of net sales (%) 49.4 50.0 The Americas 75,933 84,177 -8,244 -9.8 1,009 1.2 Percentage of net sales (%) 18.0 20.0 Europe 99,422 88,381 11,041 12.5 4,255 4.8 Percentage of net sales (%) 23.6 21.0 Other 32,640 37,984 -5,344 -14.1 -5,531 -14.6 Percentage of net sales (%) 7.8 9.0 - ------------------------------------------------------------------------------------------------------------------------------------ Reference: Exchange rate US$ 1 Yen 108.92 Yen 122.59 Yen -13.67 EURO 1 Yen 129.58 Yen 122.59 Yen 6.99 Each category includes the following product line: Digital Imaging Systems Digital PPCs, color PPCs, digital duplicators and facsimile machines Other Imaging Systems Analog PPCs, diazo copiers, and thermal paper Printing Systems MFPs(multifunctional printers), laser printers and software Other Input/Output Systems Optical discs and system scanners Network System Solutions Personal computers, PC servers, network systems and network related software Other Businesses Optical equipments, metering equipments and semiconductors
A2
(Nine months ended December 31, 2003, 2002 and year ended March 31, 2003) (Millions of yen) - ------------------------------------------------------------------------------------------------------------------------------------ Nine months ended Nine months ended Change excluding Year ended December 31, 2003 December 31, 2002 Change % exchange impact % March 31, 2003 - ------------------------------------------------------------------------------------------------------------------------------------ (Office Equipment) Imaging Solutions: Digital Imaging Systems 453,040 460,856 -7,816 -1.7 -11,077 -2.4 626,967 Percentage of net sales (%) 34.6 36.1 36.1 Domestic 184,789 199,484 -14,695 -7.4 -14,695 -7.4 265,654 Overseas 268,251 261,372 6,879 2.6 3,618 1.4 361,313 Other Imaging Systems 151,087 177,829 -26,742 -15.0 -29,717 -16.7 232,746 Percentage of net sales (%) 11.6 13.9 13.4 Domestic 53,788 61,698 -7,910 -12.8 -7,910 -12.8 80,520 Overseas 97,299 116,131 -18,832 -16.2 -21,807 -18.8 152,226 Total Imaging Solutions 604,127 638,685 -34,558 -5.4 -40,794 -6.4 859,713 Percentage of net sales (%) 46.2 50.0 49.5 Domestic 238,577 261,182 -22,605 -8.7 -22,605 -8.7 346,174 Overseas 365,550 377,503 -11,953 -3.2 -18,189 -4.8 513,539 - ------------------------------------------------------------------------------------------------------------------------------------ Network Input/Output Systems: Printing Systems 358,021 292,380 65,641 22.5 59,743 20.4 408,830 Percentage of net sales (%) 27.4 22.9 23.5 Domestic 153,910 126,467 27,443 21.7 27,443 21.7 177,510 Overseas 204,111 165,913 38,198 23.0 32,300 19.5 231,320 Other Input/Output Systems 43,097 43,984 -887 -2.0 -1,778 -4.0 54,549 Percentage of net sales (%) 3.2 3.4 3.2 Domestic 3,795 8,232 -4,437 -53.9 -4,437 -53.9 10,100 Overseas 39,302 35,752 3,550 9.9 2,659 7.4 44,449 Total Network Input/Output Systems 401,118 336,364 64,754 19.3 57,965 17.2 463,379 Percentage of net sales (%) 30.6 26.3 26.7 Domestic 157,705 134,699 23,006 17.1 23,006 17.1 187,610 Overseas 243,413 201,665 41,748 20.7 34,959 17.3 275,769 - ------------------------------------------------------------------------------------------------------------------------------------ Network System Solutions 138,855 140,125 -1,270 -0.9 -1,345 -1.0 197,482 Percentage of net sales (%) 10.6 11.0 11.3 Domestic 135,800 138,078 -2,278 -1.6 -2,278 -1.6 194,873 Overseas 3,055 2,047 1,008 49.2 933 45.6 2,609 - ------------------------------------------------------------------------------------------------------------------------------------ Office Equipment Total 1,144,100 1,115,174 28,926 2.6 15,826 1.4 1,520,574 Percentage of net sales (%) 87.4 87.3 87.5 Domestic 532,082 533,959 -1,877 -0.4 -1,877 -0.4 728,657 Overseas 612,018 581,215 30,803 5.3 17,703 3.0 791,917 The Americas 242,443 253,632 -11,189 -4.4 4,870 1.9 342,568 Europe 293,128 251,268 41,860 16.7 13,448 5.4 349,577 Other 76,447 76,315 132 0.2 -615 -0.8 99,772 - ------------------------------------------------------------------------------------------------------------------------------------ (Other Businesses) Other Businesses 164,893 162,386 2,507 1.5 1,188 0.7 217,784 Percentage of net sales (%) 12.6 12.7 12.5 Domestic 129,462 125,813 3,649 2.9 3,649 2.9 167,365 Overseas 35,431 36,573 -1,142 -3.1 -2,461 -6.7 50,419 The Americas 1,154 978 176 18.0 253 25.9 1,372 Europe 3,245 3,282 -37 -1.1 -319 -9.7 4,900 Other 31,032 32,313 -1,281 -4.0 -2,395 -7.4 44,147 - ------------------------------------------------------------------------------------------------------------------------------------ Grand Total 1,308,993 1,277,560 31,433 2.5 17,014 1.3 1,738,358 Percentage of net sales (%) 100.0 100.0 100.0 Domestic 661,544 659,772 1,772 0.3 1,772 0.3 896,022 Percentage of net sales (%) 50.5 51.6 51.5 Overseas 647,449 617,788 29,661 4.8 15,242 2.5 842,336 Percentage of net sales (%) 49.5 48.4 48.5 The Americas 243,597 254,610 -11,013 -4.3 5,123 2.0 343,940 Percentage of net sales (%) 18.6 20.0 19.8 Europe 296,373 254,550 41,823 16.4 13,129 5.2 354,477 Percentage of net sales (%) 22.6 19.9 20.4 Other 107,479 108,628 -1,149 -1.1 -3,010 -2.8 143,919 Percentage of net sales (%) 8.3 8.5 8.3 - ------------------------------------------------------------------------------------------------------------------------------------ Reference: Exchange rate US$ 1 Yen 115.00 Yen 122.92 Yen -7.92 Yen 121.96 EURO 1 Yen 132.17 Yen 118.84 Yen 13.33 Yen 121.00 Each category includes the following product line: Digital Imaging Systems Digital PPCs, color PPCs, digital duplicators and facsimile machines Other Imaging Systems Analog PPCs, diazo copiers, and thermal paper Printing Systems MFPs(multifunctional printers), laser printers and software Other Input/Output Systems Optical discs and system scanners Network System Solutions Personal computers, PC servers, network systems and network related software Other Businesses Optical equipments, metering equipments and semiconductors
A3 3. FORECAST OF CONSOLIDATED PERFORMANCE
(Billions of yen) - ------------------------------------------------------------------------------------------------------------------------------------ Half year ended Three months ended Three months ended Year ended Sept. 30, 2003 Change Dec. 31, 2003 Change Mar. 31, 2004 Change Mar. 31, 2004 Change Results % Results % Forecast % Forecast % - ------------------------------------------------------------------------------------------------------------------------------------ Net sales 888.0 3.6 420.9 0.0 468.0 1.6 1,777.0 2.2 Gross profit 388.1 7.6 185.7 0.5 204.1 2.2 778.0 4.4 Operating income 77.2 26.0 36.2 8.4 39.5 1.5 153.0 14.5 Income before income taxes 71.4 28.3 33.2 10.9 39.3 4.0 144.0 16.6 Net income 42.2 26.1 19.6 10.5 23.0 8.9 85.0 17.2 - ------------------------------------------------------------------------------------------------------------------------------------ Net income per share (yen) 56.79 - 26.53 - 31.57 - 114.89 - - ------------------------------------------------------------------------------------------------------------------------------------ Capital expenditure 36.3 - 15.5 - 19.1 - 71.0 - Depreciation for tangible fixed assets 33.6 - 15.7 - 18.5 - 68.0 - R&D expenditure 44.2 - 24.2 - 25.5 - 94.0 - - ------------------------------------------------------------------------------------------------------------------------------------ Exchange rate (Yen/US$) 118.06 - 108.92 - 108.00 - 113.26 - Exchange rate (Yen/EURO) 133.47 - 129.58 - 128.00 - 131.13 - - ------------------------------------------------------------------------------------------------------------------------------------ 4. FORECAST OF CONSOLIDATED SALES BY PRODUCT CATEGORY (Billions of yen) - ------------------------------------------------------------------------------------------------------------------------------------ Three months ended March 31, 2004 Year ended March 31, 2004 Forecast Change Forecast(*) Change Forecast Change Forecast(*) Change % % % % - ------------------------------------------------------------------------------------------------------------------------------------ (Office Equipment) Imaging Solutions: Digital Imaging Systems 157.4 -5.2 160.1 -3.6 610.5 -2.6 609.9 -2.7 Domestic 61.2 -7.5 61.2 -7.5 246.0 -7.4 246.0 -7.4 Overseas 96.2 -3.7 98.9 -1.0 364.5 0.9 363.9 0.7 Other Imaging Systems 43.0 -21.7 44.3 -19.3 194.0 -16.6 192.4 -17.3 Domestic 15.7 -16.5 15.7 -16.5 69.5 -13.7 69.5 -13.7 Overseas 27.2 -24.4 28.5 -20.8 124.5 -18.2 122.9 -19.3 Total Imaging Solutions 200.4 -9.3 204.4 -7.5 804.6 -6.4 802.3 -6.7 Domestic 76.9 -9.5 76.9 -9.5 315.5 -8.9 315.5 -8.9 Overseas 123.5 -9.2 127.5 -6.2 489.1 -4.8 486.8 -5.2 - ------------------------------------------------------------------------------------------------------------------------------------ Network Input/Output Systems: Printing Systems 146.5 25.8 150.9 29.6 504.5 23.4 503.0 23.0 Domestic 63.6 24.8 63.6 24.8 217.6 22.6 217.6 22.6 Overseas 82.8 26.6 87.2 33.4 286.9 24.0 285.4 23.4 Other Input/Output Systems 11.3 7.2 11.8 12.5 54.4 -0.2 54.0 -0.8 Domestic 1.0 -46.2 1.0 -46.2 4.8 -52.5 4.8 -52.5 Overseas 10.3 18.7 10.8 25.1 49.6 11.6 49.2 10.9 Total Network Input/Output Systems 157.8 24.3 162.8 28.2 558.9 20.6 557.1 20.2 Domestic 64.6 22.3 64.6 22.3 222.4 18.5 222.4 18.5 Overseas 93.1 25.7 98.1 32.4 336.5 22.0 334.7 21.4 - ------------------------------------------------------------------------------------------------------------------------------------ Network System Solutions 55.7 -2.8 55.8 -2.7 194.6 -1.5 194.5 -1.5 Domestic 54.8 -3.5 54.8 -3.5 190.6 -2.2 190.6 -2.2 Overseas 0.9 70.7 1.0 80.0 4.0 53.9 3.9 53.0 - ------------------------------------------------------------------------------------------------------------------------------------ Office Equipment Total 414.1 2.1 423.0 4.4 1,558.2 2.5 1,554.0 2.2 Domestic 196.4 0.9 196.4 0.9 728.5 -0.0 728.5 -0.0 Overseas 217.6 3.3 226.6 7.6 829.7 4.8 825.5 4.3 The Americas 84.5 -5.0 93.5 5.2 326.9 -4.6 352.0 2.8 Europe 107.8 9.7 107.8 9.7 400.9 14.7 372.5 6.6 Other 25.3 8.0 25.2 7.7 101.7 2.0 100.9 1.2 - ------------------------------------------------------------------------------------------------------------------------------------ (Other Businesses) Other Businesses 53.8 -2.7 53.4 -3.4 218.7 0.5 217.0 -0.3 Domestic 42.0 1.2 42.0 1.2 171.5 2.5 171.5 2.5 Overseas 11.8 -14.4 11.4 -17.3 47.2 -6.2 45.5 -9.6 The Americas 0.3 -3.8 0.4 6.4 1.5 11.6 1.6 20.2 Europe 1.1 -25.9 1.1 -29.7 4.4 -9.3 4.1 -16.3 Other 10.2 -13.1 9.8 -16.4 41.3 -6.4 39.8 -9.8 - ------------------------------------------------------------------------------------------------------------------------------------ Grand Total 468.0 1.6 476.5 3.4 1,777.0 2.2 1,771.1 1.9 Domestic 238.4 0.9 238.4 0.9 900.0 0.4 900.0 0.4 Overseas 229.5 2.2 238.1 6.0 877.0 4.1 871.1 3.4 The Americas 84.8 -5.0 94.0 5.2 328.4 -4.5 353.7 2.8 Europe 109.0 9.1 108.9 9.0 405.4 14.4 376.6 6.3 Other 35.6 0.9 35.1 -0.4 143.0 -0.6 140.7 -2.2 - ------------------------------------------------------------------------------------------------------------------------------------
* Excluding foreign exchange impact A4 -----END PRIVACY-ENHANCED MESSAGE-----