-----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, JL9a25WONJkyhLdLGudCpnleD3V4cGRGoE3BMnRKCtwdyAmW9MjP87dWJlKaFKQG YoliKaE9rO4owZzxbuCZhg== 0000317891-04-000010.txt : 20040803 0000317891-04-000010.hdr.sgml : 20040803 20040803060142 ACCESSION NUMBER: 0000317891-04-000010 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20040803 FILED AS OF DATE: 20040803 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: 04946493 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 r6kh16aug03.txt QUARTERLY REPORT 8-3-2004 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 August, 2004 Commission File Number 2 - 68279 RICOH COMPANY, LTD. ----------------------------------------------- (Translation of Registrant's name into English) 15-5, Minami-Aoyama 1-Chome, Minato-ku, Tokyo 107-8544, Japan ------------------------------------------------------------- (Address of Principal Executive Offices) (Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.) Form 20-F X Form 40-F __ (Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): __ ) (Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): __ ) (Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.) Yes __ No X (If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-__ ) - -------------------------------------------------------------------------------- SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Ricoh Company, Ltd. ------------------------------ (Registrant) By: /S/ Zenji Miura ------------------------------ Zenji Miura Managing Director Executive Vice President General Manager of the Finance & Accounting Division August 3, 2004 - -------------------------------------------------------------------------------- RICOH QUARTERLY REPORT 1st Quarter ended June 30, 2004 (Results for the Period from April 1, 2004 to June 30, 2004) PERFORMANCE OUTLINE (CONSOLIDATED)
(Billions of yen) - ----------------------------------------------------------------------------------------------------------------------- Three months ended Three months ended Year ending June 30, 2004 June 30, 2003 Change March 31, 2005 Change Results Results Forecast - ----------------------------------------------------------------------------------------------------------------------- Domestic sales 233.3 224.3 4.0% 935.0 2.3% Overseas sales 203.2 213.1 -4.6% 875.0 1.0% Net sales 436.5 437.4 -0.2% 1,810.0 1.7% Gross profit 189.1 192.7 -1.9% 785.0 2.5% Operating income 39.3 38.4 2.3% 175.0 16.7% Income before income taxes 41.3 37.3 10.7% 165.0 15.3% Net income 24.8 22.3 11.4% 95.0 3.5% - ----------------------------------------------------------------------------------------------------------------------- Exchange rate (Yen/US$) 109.65 118.52 -8.87 106.16 -6.93 Exchange rate (Yen/EURO) 132.17 134.67 -2.50 130.54 -2.11 - ----------------------------------------------------------------------------------------------------------------------- Net income per share (yen) 33.69 30.04 3.65 128.58 4.95 - ----------------------------------------------------------------------------------------------------------------------- Cash flows from operating activities 42.2 39.8 2.3 -- -- Cash flows from investing activities -10.8 -7.9 -2.9 -- -- Cash flows from financing activities -21.2 -6.4 -14.8 -- -- Cash and cash equivalents at end of period 215.4 215.9 -0.5 -- -- - ----------------------------------------------------------------------------------------------------------------------- Capital expenditures 18.6 18.6 -0.0 74.5 -1.0 Depreciation for tangible fixed assets 15.9 17.0 -1.0 69.0 1.3 R&D expenditures 24.3 19.3 4.9 100.0 7.4 - -----------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------ June 30, 2004 March 31, 2004 Change - ------------------------------------------------------------------------------ Total assets 1,855.7 1,852.7 2.9 Shareholders' equity 812.9 795.1 17.7 Interest-bearing debt 423.7 432.7 -8.9 - ------------------------------------------------------------------------------ Equity ratio (%) 43.8 42.9 0.9 - ------------------------------------------------------------------------------ Shareholder's equity per share (yen) 1,100.24 1,076.11 24.13 - ------------------------------------------------------------------------------ RICOH COMPANY, LTD. * The Company bases the forecast estimates for March 31, 2005 above upon information currently available to management, which involves risks and uncertainties that could cause actual results to differ materially from those projected. 1 PERFORMANCE *Overview Consolidated net sales for the first quarter of fiscal 2005 (the three months period from April 1 to June 30, 2004) decreased by 0.2% as compared to the previous corresponding period, to Yen 436.5 billion. During this quarter, the average yen exchange rates were at Yen 109.65 against the U.S. dollar (an appreciation of approximately 7.5% as compared to the previous corresponding period) and Yen 132.17 against the Euro (an appreciation of approximately 1.9% as compared to the previous corresponding period). Net sales would rise 1.3% excluding impacts of such foreign currency exchange fluctuations. In Japan, sales of printing systems such as MFPs (multifunctional printers) and laser printers, especially color model, increased reflecting the market needs of the shift from standalone, analog products to networking and color model. In addition, solutions business such as support and service continued to be favorable. On the other hand, sales of optical disc and semiconductor business decreased owing to sluggish period of demand cycle. Overall domestic sales consequently increased by 4.0% as compared to the previous corresponding period. As for overseas, sales of product categories such as color PPCs (plain paper copiers), MFPs and laser printers increased in each region. Although sales in the Americas decreased by 1.4% as compared to the previous corresponding period due to yen's appreciation against the U.S. dollar (6.4% increase excluding currency exchange impact), sales in Europe increased by 1.7% with steady growth of sales volume. And sales in other region such as China, Asian and Oceania countries decreased by 30.0%, owing to decline of optical disks demand and the sale of certain consolidated subsidiaries in optical related business. As a result, overall overseas sales decreased by 4.6%, though it would have decreased by 1.6% excluding impacts of the currency exchange fluctuations. Gross profit decreased by 1.9% to Yen 189.1 billion due to yen's appreciation, in spite of increased sales for high-margin, high-value-added products and ongoing cost-cutting activities such as continuous production improvement and so on. Although strategic spending on research and development increased Yen 4.9 billion as compared to the previous corresponding period, to Yen 24.3 billion, pension cost was, especially, reduced by the remodel of pension system in Japan in the previous fiscal year. As a result, selling, general and administrative expenses decreased by 2.9% to Yen 149.7 billion. Consequently, operating income increased by 2.3% as compared to the previous corresponding period, to Yen 39.3 billion. Other (income) expense improved Yen 3.0 billion, especially due to the interest expense decrease resulted from reduced interest-bearing debt and foreign currency exchange gains on the contrary to the exchange loss in the previous corresponding period. As a result, income before income taxes increased by 10.7% as compared to the previous corresponding period, to Yen 41.3 billion. The expanded amount of tax exemption on the research and development expenses and spending on Information Technology caused tax expense reduced. As a result, net income increased by 11.4% as compared to the previous corresponding period, to Yen 24.8 billion. 2 *Conditions by Product Line Office Equipment (Sales up 0.1% to Yen 383.9 billion) - ----------------------------------------------------- Customer demand has shift more and more from standalone analog products to digital, networking, color and high-speed models in Japan and overseas market place. Ricoh has enforced solution proposal to customers for the optimization of their total printing cost, in order to support their efficient management of TDV (Total Document Volume). As a result, sales volume of color PPCs and Printing Systems category such as MFPs and laser printers continued to grow, though sales of Imaging Solutions category decreased. Sales of Network System Solutions category such as support and service increased, however the sales volume of optical disc business decreased due to sluggish period of demand cycle and the in-between period of model change. In addition, yen's appreciation impacted. The total sales of Office Equipment increased by 0.1% as compared to the previous corresponding periods, to Yen 383.9 billion. Imaging Solutions (Sales down 14.6% to Yen 181.6 billion) --------------------------------------------------------- Digital Imaging Systems - Shift from standalone products to MFPs all over the world caused the sales decline. - The sales of color PPCs increased, with new offering to meet growing customer demand. - As a result, sales in this category decreased by 12.3% as compared to the previous corresponding period. Other Imaging Systems - Sales were down by 21.4% due to the shift from analog products to MFPs and/or color products. Network Input/Output Systems (Sales up 23.4% to Yen 157.3 billion) ------------------------------------------------------------------ Printing Systems - Constant offering new products to cope with the demand shift to networked and color models in Japan and overseas brought about continuous sales increase. MFPs: Imagio Neo 352 and Imagio Neo 602 in Japan Aficio 2035e/2045e series and Aficio 2105/2090 series overseas Color MFPs: Imagio Neo C245 and Imagio Neo C325 in Japan Aficio 2232C/2238C series overseas - Sales of laser printers continued to increase. - The sales volume of office use color printer with Ricoh's original 'GEL JET' technology and strategic low price, launched in February 2004, steadily increased. - As a result, sales of this category increased by 30.9%. Other Input/Output Systems Sales decreased by 52.9% mainly due to model change influence in the optical discs business in Japan and overseas. Network System Solutions (Sales up 3.6% to Yen 44.9 billion) ------------------------------------------------------------ - Solution business such as support and service continued to increase, due primarily to customer acceptance of our solution proposal for the optimization of their total printing cost. Consequently, overall sales of Office Equipment segment increased by 0.1% as compared to the previous corresponding period. Operating income increased by 3.9% to Yen 50.1 billion. It can be resulted from the sales increase of Printing Systems category, the continuous offering of new products and ongoing cost-cutting activities by production improvement and so on. Other Businesses (Sales down 2.1% to Yen 52.5 billion) - ------------------------------------------------------ Sales in this segment decreased by 2.1% as compared to the previous corresponding period, to Yen 52.5 billion, due primarily to the sale of certain consolidated subsidiaries in optical related business, and sluggish demand cycle for semiconductor. As a result, overall operating income for Other Businesses segment decreased to Yen 1.0 billion. *Cash Flows (Three months from April 1, 2004 to June 30, 2004) Net cash provided by operating activities increased Yen 2.3 billion as compared to the previous corresponding period, to Yen 42.2 billion. It was due to the fact that net income increased as compared to the previous corresponding period and the decrease of trade receivable due to sales growth in the fourth quarter of fiscal 2004. Net cash used in investing activities increased Yen 2.9 billion as compared to the previous corresponding period, to Yen 10.8 billion, due primarily to capital expenditures spending for new production lines and production development. As a result, free cash flow generated by operating and investing activities totaled Yen 31.3 billion, no significant change as compared to the previous corresponding period. Net cash used in financing activities amounted to Yen 21.2 billion due primarily to decrease of interest-bearing debt and payment of dividends. As a result, cash and cash equivalents at the end of this first quarter were Yen 12.4 billion higher than the end of the preceding fiscal year, standing at Yen 215.4 billion. 3 *Forecast for the entire fiscal year As for the forecast of business results for the fiscal year ended March 31, 2005, we maintain our exchange rates assumption of Yen 105.00 against the U.S. dollar and of Yen 130.00 against the Euro in and after the second quarter as announced in April 2004. And we maintain our forecast of sales as announced in April 2004. We intend to implement business strategies such as continuous and effective offering of new products and so on in order to continue to grow in spite of fluctuations of market demand and exchange rate. As for income, we maintain our forecast of operation income, income before income tax and net income as announced in April 2004, although the results of first quarter was more than our forecast at the beginning of this fiscal year and we intend to improve profitability still more. Our performance forecasts for fiscal 2005 are as follows: Exchange Rate Assumptions for the full year ending March 31, 2005 US$ 1 = Yen 106.16 (Yen 113.09 in previous fiscal year) EURO 1 = Yen 130.54 (Yen 132.65 in previous fiscal year) (Billions of yen) - -------------------------------------------------------------------------------- Year ending Year ended March 31, 2005 March 31, 2004 Forecast Results Change - -------------------------------------------------------------------------------- Domestic sales 935.0 914.0 2.3% Overseas sales 875.0 866.1 1.0% Net sales 1,810.0 1,780.2 1.7% (*1) Gross profit 785.0 765.6 2.5% Operating income 175.0 150.0 16.7% Income before income taxes 165.0 143.0 15.3% Net income 95.0 91.7 3.5% (*2) - -------------------------------------------------------------------------------- Notes: *1...Net sales would be eleventh consecutive year of growth. *2...Net income would be thirteenth consecutive year of growth and eleventh consecutive year of record high. * Ricoh bases the forecast estimates for March 31, 2005 above upon information currently available to management, which involves risks and uncertainties that could cause actual results to differ materially from those projected. 4 RICOH COMPANY, LTD. AND CONSOLIDATED SUBSIDIARIES FINANCIAL HIGHLIGHTS FOR THE 1ST QUARTER ENDED JUNE 30, 2004 (U.S. GAAP FINANCIAL INFORMATION) 1. ITEMS RELATING TO 1ST QUARTER FINANCIAL STATEMENTS (1) No change in accounting method has been made. (2) Change relating to the scale of consolidation and the application of the equity method: Consolidated subsidiaries: No addition; 20 removals Companies accounted for by the equity method: 1 addition; 1 removal 2. RESULTS FOR THE PERIOD FROM APRIL 1, 2004 TO JUNE 30, 2004
(1) Operating Results (Millions of yen) - --------------------------------------------------------------------------------------------------------------- Three months ended Three months ended Year ended June 30, 2004 June 30, 2003 March 31, 2004 - --------------------------------------------------------------------------------------------------------------- Net sales 436,550 437,453 1,780,245 (% change from the previous corresponding period) -0.2 2.1 2.4 Operating income 39,387 38,484 150,006 (% change from the previous corresponding period) 2.3 7.1 12.2 Income before income taxes 41,319 37,317 143,063 (% change from the previous corresponding period) 10.7 15.6 15.9 Net income 24,894 22,355 91,766 (% change from the previous corresponding period) 11.4 14.5 26.6 Net income per share-basic (yen) 33.69 30.04 123.63 Net income per share-diluted (yen) -- -- -- - ---------------------------------------------------------------------------------------------------------------
(2) Financial Position (Millions of yen) - ----------------------------------------------------------------------------------------------------- June 30, 2004 June 30, 2003 March 31, 2004 - ----------------------------------------------------------------------------------------------------- Total assets 1,855,745 1,924,631 1,852,793 Shareholders' equity 812,915 685,730 795,131 Equity ratio (%) 43.8 35.6 42.9 Equity per share (yen) 1,100.24 920.97 1,076.11 - -----------------------------------------------------------------------------------------------------
Cash Flow (Millions of yen) - --------------------------------------------------------------------------------------------------------------- Three months ended Three months ended Year ended June 30, 2004 June 30, 2003 March 31, 2004 - --------------------------------------------------------------------------------------------------------------- Cash flows from operating activities 42,268 39,877 154,911 Cash flows from investing activities -10,899 -7,973 -63,383 Cash flows from financing activities -21,294 -6,404 -74,835 Cash and cash equivalents at end of period 215,467 215,982 203,039 - ---------------------------------------------------------------------------------------------------------------
3. FORECAST OF OPERATING RESULTS FROM APRIL 1, 2004 TO MARCH 31, 2005 Though we maintain our forecast of each period as announced in April 2004, we revised the forecast of net income per share (Consolidated) for the reason that average number of share outstanding has changed with purchase of treasury stocks. (Millions of yen) - -------------------------------------------------------------------------------- Half year ending Year ending September 30, 2004 March 31, 2005 - -------------------------------------------------------------------------------- Net sales 895,000 1,810,000 Operating income 78,000 175,000 Income before income taxes 74,500 165,000 Net income 43,800 95,000 - -------------------------------------------------------------------------------- Note: Net income per share (Consolidated) 128.58 yen In accordance with Japanese regulations, Ricoh has issued forecast for its financial results for the fiscal year ending March 2005. These forecast are forward-looking statements based on a number of assumptions and beliefs in light of the information currently available to management and subject to significant risks and uncertainties. 5 CONSOLIDATED PERFORMANCE
1. CONSOLIDATED STATEMENTS OF INCOME (Millions of yen) - ------------------------------------------------------------------------------------------------ Three months ended Three months ended June 30, 2004 June 30, 2003 Change % - ------------------------------------------------------------------------------------------------ Net sales 436,550 437,453 -903 -0.2 Cost of sales 247,379 244,701 2,678 1.1 Percentage of net sales (%) 56.7 55.9 Gross Profit 189,171 192,752 -3,581 -1.9 Percentage of net sales (%) 43.3 44.1 Selling, general and administrative expenses 149,784 154,268 -4,484 -2.9 Percentage of net sales (%) 34.3 35.3 Operating income 39,387 38,484 903 2.3 Percentage of net sales (%) 9.0 8.8 Other (income) expense Interest and dividend income 603 696 -93 -13.4 Percentage of net sales (%) 0.1 0.1 Interest expense 1,230 1,524 -294 -19.3 Percentage of net sales (%) 0.3 0.3 Other, net -2,559 339 -2,898 -- Percentage of net sales (%) -0.7 0.1 Income before income taxes, equity income and minority interests 41,319 37,317 4,002 10.7 Percentage of net sales (%) 9.5 8.5 Provision for income taxes 15,919 14,062 1,857 13.2 Percentage of net sales (%) 3.6 3.2 Minority interests in earnings of subsidiaries 1,118 1,352 -234 -17.3 Percentage of net sales (%) 0.3 0.3 Equity in earnings of affiliates 612 452 160 35.4 Percentage of net sales (%) 0.1 0.1 Net income 24,894 22,355 2,539 11.4 Percentage of net sales (%) 5.7 5.1 - ------------------------------------------------------------------------------------------------
2-1. CONSOLIDATED SALES BY PRODUCT CATEGORY (Millions of yen) - ------------------------------------------------------------------------------------------------ Three months ended Three months ended June 30, 2004 June 30, 2003 Change % - ------------------------------------------------------------------------------------------------ (Office Equipment) Imaging Solutions: Digital Imaging Systems 139,383 158,997 -19,614 -12.3 Percentage of net sales (%) 31.9 36.3 Other Imaging Systems 42,246 53,771 -11,525 -21.4 Percentage of net sales (%) 9.7 12.3 Total Imaging Solutions 181,629 212,768 -31,139 -14.6 Percentage of net sales (%) 41.6 48.6 - ------------------------------------------------------------------------------------------------ Network Input/Output Systems: Printing Systems 151,970 116,106 35,864 30.9 Percentage of net sales (%) 34.8 26.5 Other Input/Output Systems 5,385 11,421 -6,036 -52.9 Percentage of net sales (%) 1.2 2.7 Total Network Input/Output Systems 157,355 127,527 29,828 23.4 Percentage of net sales (%) 36.0 29.2 - ------------------------------------------------------------------------------------------------ Network System Solutions 44,989 43,437 1,552 3.6 Percentage of net sales (%) 10.4 9.9 - ------------------------------------------------------------------------------------------------ Office Equipment Total 383,973 383,732 241 0.1 Percentage of net sales (%) 88.0 87.7 - ------------------------------------------------------------------------------------------------ (Other Businesses) Other Businesses 52,577 53,721 -1,144 -2.1 Percentage of net sales (%) 12.0 12.3 - ------------------------------------------------------------------------------------------------ Grand Total 436,550 437,453 -903 -0.2 Percentage of net sales (%) 100.0 100.0 - ------------------------------------------------------------------------------------------------
2-2. CONSOLIDATED SALES BY GEOGRAPHIC AREA (Millions of yen) - ------------------------------------------------------------------------------------------------ Three months ended Three months ended June 30, 2004 June 30, 2003 Change % - ------------------------------------------------------------------------------------------------ (Domestic) 233,312 224,335 8,977 4.0 Percentage of net sales (%) 53.4 51.3 (Overseas) 203,238 213,118 -9,880 -4.6 Percentage of net sales (%) 46.6 48.7 The Americas 78,401 79,491 -1,090 -1.4 Percentage of net sales (%) 18.0 18.2 Europe 100,323 98,619 1,704 1.7 Percentage of net sales (%) 23.0 22.5 Other 24,514 35,008 -10,494 -30.0 Percentage of net sales (%) 5.6 8.0 Grand Total 436,550 437,453 -903 -0.2 Percentage of net sales (%) 100.0 100.0 - ------------------------------------------------------------------------------------------------ Reference : Exchange rate US$ 1 Yen 109.65 Yen 118.52 EURO 1 Yen 132.17 Yen 134.67
6 3. SEGMENT INFORMATION
(1) Industry Segment Information (Millions of yen) - ----------------------------------------------------------------------------------------------- Three months ended Three months ended June 30, 2004 June 30, 2003 Change % - ----------------------------------------------------------------------------------------------- OFFICE EQUIPMENT: Net sales: Unaffiliated customers 383,973 383,732 241 0.1 Intersegment -- -- -- -- Total 383,973 383,732 241 0.1 - ----------------------------------------------------------------------------------------------- Operating expenses 333,863 335,487 -1,624 -0.5 - ----------------------------------------------------------------------------------------------- Operating income 50,110 48,245 1,865 3.9 Operating income on office equipment sales(%) 13.1 12.6 - ----------------------------------------------------------------------------------------------- OTHER BUSINESSES: Net sales: Unaffiliated customers 52,577 53,721 -1,144 -2.1 Intersegment 668 627 41 6.5 Total 53,245 54,348 -1,103 -2.0 - ----------------------------------------------------------------------------------------------- Operating expenses 52,158 51,936 222 0.4 - ----------------------------------------------------------------------------------------------- Operating income 1,087 2,412 -1,325 -54.9 Operating income on sales in other businesses (%) 2.0 4.4 - ----------------------------------------------------------------------------------------------- CORPORATE AND ELIMINATIONS: Net sales: Intersegment -668 -627 -41 -- Total -668 -627 -41 -- - ----------------------------------------------------------------------------------------------- Operating expenses: Intersegment -678 -647 -31 -- Corporate 11,820 12,193 -373 -- Total 11,142 11,546 -404 -- - ----------------------------------------------------------------------------------------------- Operating income -11,810 -12,173 363 -- - ----------------------------------------------------------------------------------------------- CONSOLIDATED: Net sales: Unaffiliated customers 436,550 437,453 -903 -0.2 Intersegment -- -- -- -- Total 436,550 437,453 -903 -0.2 - ----------------------------------------------------------------------------------------------- Operating expenses 397,163 398,969 -1,806 -0.5 - ----------------------------------------------------------------------------------------------- Operating income 39,387 38,484 903 2.3 Operating income on consolidated net sales(%) 9.0 8.8 - -----------------------------------------------------------------------------------------------
(2) Geographic Segment Information (Millions of yen) - ----------------------------------------------------------------------------------------------- Three months ended Three months ended June 30, 2004 June 30, 2003 Change % - ----------------------------------------------------------------------------------------------- JAPAN: Net sales: External customers 239,663 238,338 1,325 0.6 Intersegment 96,410 97,074 -664 -0.7 Total 336,073 335,412 661 0.2 - ----------------------------------------------------------------------------------------------- Operating expenses 304,421 301,568 2,853 0.9 - ----------------------------------------------------------------------------------------------- Operating income 31,652 33,844 -2,192 -6.5 Operating income on sales in Japan(%) 9.4 10.1 - ----------------------------------------------------------------------------------------------- THE AMERICAS: Net sales: External customers 76,632 77,534 -902 -1.2 Intersegment 1,295 1,582 -287 -18.1 Total 77,927 79,116 -1,189 -1.5 - ----------------------------------------------------------------------------------------------- Operating expenses 76,053 76,823 -770 -1.0 - ----------------------------------------------------------------------------------------------- Operating income 1,874 2,293 -419 -18.3 Operating income on sales in the Americas(%) 2.4 2.9 - ----------------------------------------------------------------------------------------------- EUROPE: Net sales: External customers 100,626 98,763 1,863 1.9 Intersegment 941 1,056 -115 -10.9 Total 101,567 99,819 1,748 1.8 - ----------------------------------------------------------------------------------------------- Operating expenses 95,414 94,329 1,085 1.2 - ----------------------------------------------------------------------------------------------- Operating income 6,153 5,490 663 12.1 Operating income on sales in Europe(%) 6.1 5.5 - ----------------------------------------------------------------------------------------------- OTHER: Net sales: External customers 19,629 22,818 -3,189 -14.0 Intersegment 21,010 25,115 -4,105 -16.3 Total 40,639 47,933 -7,294 -15.2 - ----------------------------------------------------------------------------------------------- Operating expenses 38,239 45,580 -7,341 -16.1 - ----------------------------------------------------------------------------------------------- Operating income 2,400 2,353 47 2.0 Operating income on sales in other(%) 5.9 4.9 - ----------------------------------------------------------------------------------------------- CORPORATE AND ELIMINATIONS: Net sales: Intersegment -119,656 -124,827 5,171 -- Total -119,656 -124,827 5,171 -- - ----------------------------------------------------------------------------------------------- Operating expenses: -116,964 -119,331 2,367 -- - ----------------------------------------------------------------------------------------------- Operating income -2,692 -5,496 2,804 -- - ----------------------------------------------------------------------------------------------- CONSOLIDATED: Net sales: External customers 436,550 437,453 -903 -0.2 Intersegment -- -- -- -- Total 436,550 437,453 -903 -0.2 - ----------------------------------------------------------------------------------------------- Operating expenses 397,163 398,969 -1,806 -0.5 - ----------------------------------------------------------------------------------------------- Operating income 39,387 38,484 903 2.3 Operating income on consolidated net sales(%) 9.0 8.8 - -----------------------------------------------------------------------------------------------
7 4. CONSOLIDATED BALANCE SHEETS
Assets (Millions of yen) - ------------------------------------------------------------------------------------------- June 30, 2004 March 31, 2004 Change - ------------------------------------------------------------------------------------------- Current Assets Cash and time deposits 217,598 204,001 13,597 Trade receivables 395,163 422,244 -27,081 Marketable securities 45,122 45,124 -2 Inventories 150,577 145,369 5,208 Other current assets 54,656 55,079 -423 Total Current Assets 863,116 871,817 -8,701 Fixed Assets Tangible fixed assets 237,454 238,712 -1,258 Finance receivable 527,982 514,047 13,935 Other Investments 227,193 228,217 -1,024 Total Fixed Assets 992,629 980,976 11,653 - ------------------------------------------------------------------------------------------- Total Assets 1,855,745 1,852,793 2,952 - ------------------------------------------------------------------------------------------- Note: Contents of cash and time deposits: Cash and cash equivalents 215,467 203,039 Time deposits 2,131 962
Liabilities and Shareholders' Investment (Millions of yen) - ------------------------------------------------------------------------------------------- June 30, 2004 March 31, 2004 Change - ------------------------------------------------------------------------------------------- Current Liabilities Trade payables 283,044 297,672 -14,628 Short-term borrowings 183,217 151,162 32,055 Other current liabilities 163,113 158,594 4,519 Total Current Liabilities 629,374 607,428 21,946 Fixed Liabilities Long-term indebtedness 240,564 281,570 -41,006 Retirement benefit obligation 85,690 83,492 2,198 Other fixed liabilities 37,429 36,295 1,134 Total Fixed Liabilities 363,683 401,357 -37,674 - ------------------------------------------------------------------------------------------- Total Liabilities 993,057 1,008,785 -15,728 - ------------------------------------------------------------------------------------------- Minority Interest 49,773 48,877 896 - ------------------------------------------------------------------------------------------- Shareholders' Investment Common stock 135,364 135,364 -- Additional paid-in capital 186,599 186,599 0 Retained earnings 533,654 515,372 18,282 Accumulated other comprehensive income (loss) -30,673 -30,272 -401 Treasury stock -12,029 -11,932 -97 Total Shareholders' Investment 812,915 795,131 17,784 - ------------------------------------------------------------------------------------------- Total Liabilities and Shareholders' Investment 1,855,745 1,852,793 2,952 - ------------------------------------------------------------------------------------------- Note: Other comprehensive income; Net unrealized holding gains on available-for-sale securities 4,210 4,026 184 Pension liability adjustments -17,595 -14,863 -2,732 Net unrealized gains (losses) on derivative instruments -17 -24 7 Cumulative translation adjustments -17,271 -19,411 2,140
Reference: Exchange rate June 30, 2004 March 31, 2004 US$ 1 Yen 108.43 Yen 105.69 EURO 1 Yen 131.06 Yen 128.88
8 5. CONSOLIDATED STATEMENTS OF CASH FLOW
(Millions of yen) - ------------------------------------------------------------------------------------------------------------------ Three months ended Three months ended June 30, 2004 June 30, 2003 - ------------------------------------------------------------------------------------------------------------------ I. Cash Flows from Operating Activities: 1. Net income 24,894 22,355 2. Adjustments to reconcile net income to net cash provided by operating activities-- Depreciation and amortization 18,790 19,673 Equity in earnings of affiliates, net of dividends received -158 2 Deferred income taxes 2,771 -3,382 Loss on disposal and sales of tangible fixed assets 17 22 Changes in assets and liabilities-- Decrease in trade receivables 23,735 8,801 Increase in inventories -7,841 -14,126 Increase in finance receivables -13,546 -8,102 (Decrease) Increase in trade payables -11,390 6,019 Increase in accrued income taxes and accrued expenses and other 3,074 3,792 Retirement benefit obligation, net -429 6,835 Other, net 2,351 -2,012 - ------------------------------------------------------------------------------------------------------------------ Net cash provided by operating activities 42,268 39,877 - ------------------------------------------------------------------------------------------------------------------ II. Cash Flows from Investing Activities: 1. Proceeds from sales of plant and equipment 535 7 2. Expenditures for tangible fixed assets -18,647 -18,657 3. Payments for purchases of available-for-sale securities -137 -25,043 4. Proceeds from sales of available-for-sale securities 5 30,063 5. (Increase) Decrease in time deposits -1,182 7,176 6. Other, net 8,527 -1,519 - ------------------------------------------------------------------------------------------------------------------ Net cash used in investing activities -10,899 -7,973 - ------------------------------------------------------------------------------------------------------------------ III. Cash Flows from Financing Activities: 1. Proceeds from long-term indebtedness 14,734 759 2. Repayment of long-term indebtedness -18,929 -8,596 3. (Decrease) Increase in short-term borrowings, net -342 11,907 4. Proceeds from issuance of long-term debt securities 1,000 -- 5. Repayment of long-term debt securities -10,000 -5,000 6. Cash dividends paid -7,405 -5,195 7. Purchase of treasury stocks -98 -85 8. Other, net -254 -194 - ------------------------------------------------------------------------------------------------------------------ Net cash used in financing activities -21,294 -6,404 - ------------------------------------------------------------------------------------------------------------------ IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents -122 1,239 - ------------------------------------------------------------------------------------------------------------------ V. Net Increase in Cash and Cash Equivalents 9,953 26,739 - ------------------------------------------------------------------------------------------------------------------ VI. Cash and Cash Equivalents at Beginning of Year 203,039 189,243 VII. Adjustment for Change of Fiscal Period on Consolidated Subsidiaries 2,475 -- - ------------------------------------------------------------------------------------------------------------------ VIII. Cash and Cash Equivalents at End of Period 215,467 215,982 - ------------------------------------------------------------------------------------------------------------------
9 6. SIGNIFICANT ACCOUNTING POLICIES (CONSOLIDATED) 1. CHANGE RELATING TO THE SCALE OF CONSOLIDATION AND THE APPLICATION OF THE EQUITY METHOD FROM APRIL 1, 2004 TO JUNE 30, 2004. Consolidated subsidiaries: No addition 20 removals including HANIMEX AUSTRALASIA PTY LTD. Companies accounted for by the equity method: Addition: TRIANGLE SPIRIT CORPORATION. Removal: FOTO ISLAND (NSW) PTY. LTD. 2. CONSOLIDATED ACCOUNTING POLICIES (SUMMARY) (1) Principles of Consolidation The consolidated financial statements include the accounts of Ricoh and its consolidated subsidiaries. Investments in 20% to 50% owned companies when the company has the ability to exercise significant influence are accounted for on the equity basis. All significant inter-company balances and transactions have been eliminated in consolidation. Certain overseas subsidiaries of the company changed the fiscal year end from December 31 to March 31, at the beginning of fiscal 2005. As a result, retained earnings increased by Yen 777 million and other comprehensive income (loss) decreased by Yen 1,665 million. (2) Securities In conformity with SFAS No.115, securities are mainly classified as available-for-sale securities. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of related taxes, excluded from earnings and reported in accumulated other comprehensive income (loss). The cost of the securities sold is computed based on the average cost of each security held at the time of sale. (3) Inventories Inventories are mainly stated at the lower of average cost or market. Inventory costs include raw materials, labor and manufacturing overheads. (4) Plant and Equipment Depreciation of plant and equipment is computed principally by using the declining-balance method over the estimated useful lives. Most of the foreign subsidiaries have adopted the straight-line method for computing depreciation. Certain leased buildings, machinery and equipment are accounted for as capital leases in conformity with SFAS No. 13, "Accounting for Leases." (5) Goodwill and Other Intangible Assets In conformity with SFAS No.142, Goodwill and intangible asset determined to have an indefinite useful life are not amortized. SFAS No. 142 requires annual impairment testing thereof. (6) Use of Estimates Management of the Company has made a number of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, including impairment losses of long-lived assets and the disclosures of fair value of financial instruments and contingent assets and liabilities, to prepare these financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates. 10 - -APPENDIX- 1. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Millions of yen) - ------------------------------------------------------------------------------------------------------------------------------ Three months ended Three months ended Change excluding June 30, 2004 June 30, 2003 Change % exchange impact % - ------------------------------------------------------------------------------------------------------------------------------ (Office Equipment) Imaging Solutions: Digital Imaging Systems 139,383 158,997 -19,614 -12.3 -16,323 -10.3 Percentage of net sales (%) 31.9 36.3 Domestic 59,106 65,894 -6,788 -10.3 -6,788 -10.3 Overseas 80,277 93,103 -12,826 -13.8 -9,535 -10.2 Other Imaging Systems 42,246 53,771 -11,525 -21.4 -10,775 -20.0 Percentage of net sales (%) 9.7 12.3 Domestic 15,995 19,282 -3,287 -17.0 -3,287 -17.0 Overseas 26,251 34,489 -8,238 -23.9 -7,488 -21.7 Total Imaging Solutions 181,629 212,768 -31,139 -14.6 -27,098 -12.7 Percentage of net sales (%) 41.6 48.6 Domestic 75,101 85,176 -10,075 -11.8 -10,075 -11.8 Overseas 106,528 127,592 -21,064 -16.5 -17,023 -13.3 - ------------------------------------------------------------------------------------------------------------------------------ Network Input/Output Systems: Printing Systems 151,970 116,106 35,864 30.9 38,072 32.8 Percentage of net sales (%) 34.8 26.5 Domestic 66,715 52,458 14,257 27.2 14,257 27.2 Overseas 85,255 63,648 21,607 33.9 23,815 37.4 Other Input/Output Systems 5,385 11,421 -6,036 -52.9 -5,996 -52.5 Percentage of net sales (%) 1.2 2.7 Domestic 939 1,642 -703 -42.8 -703 -42.8 Overseas 4,446 9,779 -5,333 -54.5 -5,293 -54.1 Total Network Input/Output Systems 157,355 127,527 29,828 23.4 32,076 25.2 Percentage of net sales (%) 36.0 29.2 Domestic 67,654 54,100 13,554 25.1 13,554 25.1 Overseas 89,701 73,427 16,274 22.2 18,522 25.2 - ------------------------------------------------------------------------------------------------------------------------------ Network System Solutions 44,989 43,437 1,552 3.6 1,581 3.6 Percentage of net sales (%) 10.4 9.9 Domestic 43,577 42,667 910 2.1 910 2.1 Overseas 1,412 770 642 83.4 671 87.1 - ------------------------------------------------------------------------------------------------------------------------------ Office Equipment Total 383,973 383,732 241 0.1 6,559 1.7 Percentage of net sales (%) 88.0 87.7 Domestic 186,332 181,943 4,389 2.4 4,389 2.4 Overseas 197,641 201,789 -4,148 -2.1 2,170 1.1 The Americas 78,225 78,908 -683 -0.9 5,503 7.0 Europe 99,511 97,613 1,898 1.9 1,417 1.5 Other 19,905 25,268 -5,363 -21.2 -4,750 -18.8 - ------------------------------------------------------------------------------------------------------------------------------ (Other Businesses) Other Businesses 52,577 53,721 -1,144 -2.1 -951 -1.8 Percentage of net sales (%) 12.0 12.3 Domestic 46,980 42,392 4,588 10.8 4,588 10.8 Overseas 5,597 11,329 -5,732 -50.6 -5,539 -48.9 The Americas 176 583 -407 -69.8 -393 -67.4 Europe 812 1,006 -194 -19.3 -181 -18.0 Other 4,609 9,740 -5,131 -52.7 -4,965 -51.0 - ------------------------------------------------------------------------------------------------------------------------------ Grand Total 436,550 437,453 -903 -0.2 5,608 1.3 Percentage of net sales (%) 100.0 100.0 Domestic 233,312 224,335 8,977 4.0 8,977 4.0 Percentage of net sales (%) 53.4 51.3 Overseas 203,238 213,118 -9,880 -4.6 -3,369 -1.6 Percentage of net sales (%) 46.6 48.7 The Americas 78,401 79,491 -1,090 -1.4 5,110 6.4 Percentage of net sales (%) 18.0 18.2 Europe 100,323 98,619 1,704 1.7 1,236 1.3 Percentage of net sales (%) 23.0 22.5 Other 24,514 35,008 -10,494 -30.0 -9,715 -27.8 Percentage of net sales (%) 5.6 8.0 - ------------------------------------------------------------------------------------------------------------------------------
Each category includes the following product line: Digital Imaging Systems Digital PPCs, color PPCs, digital duplicators and facsimile machines Other Imaging Systems Analog PPCs, diazo copiers, and thermal paper Printing Systems MFPs(multifunctional printers), laser printers and software Other Input/Output Systems Optical discs and system scanners Network System Solutions Personal computers, PC servers, network systems and network related software Other Businesses Optical equipments, measuring equipments and semiconductors
Reference: Three months ended Three months ended Exchange rate June 30, 2004 June 30, 2003 Change US$ 1 Yen 109.65 Yen 118.52 Yen -8.87 EURO 1 Yen 132.17 Yen 134.67 Yen -2.50 A1 2. FORECAST OF CONSOLIDATED PERFORMANCE
(Billions of yen) - ---------------------------------------------------------------------------------------------------------------------------------- Three months ended Three months ending Half year ending Year ending June 30, 2004 Change Sept. 30, 2004 Change Sept. 30, 2004 Change March 31, 2005 Change Results % Forecast % Forecast % Forecast % - ---------------------------------------------------------------------------------------------------------------------------------- Net sales 436.5 -0.2 458.4 1.7 895.0 0.8 1,810.0 1.7 Gross profit 189.1 -1.9 197.6 1.2 386.8 -0.3 785.0 2.5 Operating income 39.3 2.3 38.6 -0.4 78.0 1.0 175.0 16.7 Income before income taxes 41.3 10.7 33.1 -2.7 74.5 4.3 165.0 15.3 Net income 24.8 11.4 18.9 -5.0 43.8 3.6 95.0 3.5 - ---------------------------------------------------------------------------------------------------------------------------------- Net income per share (yen) 33.69 -- 25.59 -- 59.28 -- 128.58 -- - ---------------------------------------------------------------------------------------------------------------------------------- Capital expenditure 18.6 -- 18.3 -- 37.0 -- 74.5 -- Depreciation for tangible fixed assets 15.9 -- 18.0 -- 34.0 -- 69.0 -- R&D expenditure 24.3 -- 25.6 -- 50.0 -- 100.0 -- - ---------------------------------------------------------------------------------------------------------------------------------- Exchange rate (Yen/US$) 109.65 -- 105.00 -- 107.33 -- 106.16 -- Exchange rate (Yen/EURO) 132.17 -- 130.00 -- 131.09 -- 130.54 -- - ----------------------------------------------------------------------------------------------------------------------------------
3. FORECAST OF CONSOLIDATED SALES BY PRODUCT CATEGORY
(Billions of yen) - ---------------------------------------------------------------------------------------------------------------------------------- Half year ending September 30, 2004 Year ending March 31, 2005 --------------------------------------------- ------------------------------------------- Change Change Change Change Forecast % Forecast(*) % Forecast % Forecast(*) % - ---------------------------------------------------------------------------------------------------------------------------------- (Office Equipment) Imaging Solutions: Digital Imaging Systems 275.3 -10.9 282.7 -8.6 537.0 -11.4 547.0 -9.8 Domestic 114.2 -8.5 114.2 -8.5 225.0 -11.4 225.0 -11.4 Overseas 161.1 -12.6 168.5 -8.6 312.0 -11.5 322.0 -8.6 Other Imaging Systems 83.7 -20.9 86.2 -18.6 157.3 -20.2 160.5 -18.7 Domestic 30.2 -17.3 30.2 -17.3 59.5 -15.9 59.5 -15.9 Overseas 53.5 -22.9 56.0 -19.4 97.8 -22.7 101.0 -20.2 Total Imaging Solutions 359.1 -13.5 368.9 -11.1 694.4 -13.6 707.5 -12.0 Domestic 144.4 -10.5 144.4 -10.5 284.5 -12.4 284.5 -12.4 Overseas 214.7 -15.4 224.5 -11.6 409.9 -14.4 423.0 -11.7 - ---------------------------------------------------------------------------------------------------------------------------------- Network Input/Output Systems: Printing Systems 307.6 31.8 315.6 35.2 654.7 28.6 666.8 30.9 Domestic 130.1 29.6 130.1 29.6 277.3 27.1 277.3 27.1 Overseas 177.5 33.4 185.5 39.4 377.4 29.7 389.5 33.8 Other Input/Output Systems 18.4 -37.9 19.1 -35.7 45.1 -7.8 46.7 -4.7 Domestic 1.5 -45.3 1.5 -45.3 2.7 -45.8 2.7 -45.8 Overseas 16.9 -37.1 17.6 -34.8 42.4 -3.5 44.0 -0.0 Total Network Input/Output Systems 326.0 23.9 334.7 27.2 699.9 25.4 713.5 27.8 Domestic 131.6 27.7 131.6 27.7 280.0 25.5 280.0 25.5 Overseas 194.4 21.5 203.1 26.9 419.9 25.3 433.5 29.4 - ---------------------------------------------------------------------------------------------------------------------------------- Network System Solutions 98.9 1.8 99.1 1.9 198.1 1.2 198.4 1.3 Domestic 95.5 0.3 95.5 0.3 190.5 -0.4 190.5 -0.4 Overseas 3.4 74.6 3.6 82.6 7.6 69.4 7.9 74.8 - ---------------------------------------------------------------------------------------------------------------------------------- Office Equipment Total 784.1 1.1 802.7 3.5 1,592.4 2.2 1,619.4 4.0 Domestic 371.5 3.3 371.5 3.3 755.0 2.2 755.0 2.2 Overseas 412.6 -0.8 431.2 3.7 837.4 2.3 864.4 5.6 The Americas 164.7 -1.2 181.3 8.7 324.5 -0.2 345.9 6.4 Europe 199.7 2.6 200.9 3.2 412.0 3.5 416.3 4.6 Other 48.1 -11.4 49.0 -9.9 100.8 5.7 102.2 7.2 - ---------------------------------------------------------------------------------------------------------------------------------- (Other Businesses) Other Businesses 110.9 -1.5 111.2 -1.2 217.4 -2.3 217.9 -2.1 Domestic 94.5 6.2 94.5 6.2 180.0 2.8 180.0 2.8 Overseas 16.4 -30.3 16.7 -29.1 37.4 -21.3 37.9 -20.4 The Americas 0.4 -47.6 0.5 -42.1 1.2 -3.5 1.3 2.0 Europe 2.8 26.7 2.9 28.8 5.9 38.0 6.0 40.1 Other 13.1 -35.8 13.3 -35.0 30.3 -27.8 30.6 -27.2 - ---------------------------------------------------------------------------------------------------------------------------------- Grand Total 895.0 0.8 913.9 2.9 1,810.0 1.7 1,837.3 3.2 Domestic 466.0 3.9 466.0 3.9 935.0 2.3 935.0 2.3 Overseas 429.0 -2.4 447.9 1.9 875.0 1.0 902.3 4.2 The Americas 165.1 -1.5 181.8 8.4 325.8 -0.2 347.2 6.4 Europe 202.5 2.9 203.8 3.5 417.9 3.9 422.3 4.9 Other 61.3 -18.1 62.3 -16.8 131.1 -4.6 132.8 -3.3 - ----------------------------------------------------------------------------------------------------------------------------------
* Excluding foreign exchange impact A2 -----END PRIVACY-ENHANCED MESSAGE-----