-----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, LRy3iHbpRiXjnAj5El7DoBgsEJvV1pSYbHSNvQS4IsgVIgqGsloYE0/jZaVDCJ7T UUyYwxED+MF+qiaMyAbERg== 0000317891-06-000001.txt : 20060130 0000317891-06-000001.hdr.sgml : 20060130 20060130070133 ACCESSION NUMBER: 0000317891-06-000001 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20060130 FILED AS OF DATE: 20060130 DATE AS OF CHANGE: 20060130 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: 06559920 BUSINESS ADDRESS: STREET 1: 13-1, GINZA 8-CHOME STREET 2: CHUO-KU CITY: TOKYO 104-8222 JAPAN STATE: M0 ZIP: 00000 BUSINESS PHONE: 81-3-6278-5241 MAIL ADDRESS: STREET 1: 13-1, GINZA 8-CHOME STREET 2: CHUO-KU CITY: TOKYO 104-8222 JAPAN STATE: M0 ZIP: 00000 6-K 1 r6k060130.txt QUARTERLY REPORT 12-31-2005 FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 REPORT OF FOREIGN PRIVATE ISSUER Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of January 2006 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 January 30, 2006 - -------------------------------------------------------------------------------- RICOH January 30, 2006 QUARTERLY REPORT Third Quarter Ended December 31, 2005 (Results for the Period from October 1, 2005 to December 31, 2005) PERFORMANCE OUTLINE (CONSOLIDATED) (1)Three Months Ended December 31, 2005 and 2004 (Billions of yen) - ----------------------------------------------------------------------- Three months Three months ended ended December 31, December 31, 2005 2004 Change - ----------------------------------------------------------------------- Domestic sales 230.8 231.3 -0.2% Overseas sales 244.8 212.4 15.3% Net sales 475.7 443.7 7.2% Gross profit 201.1 192.1 4.7% Operating income 37.0 38.7 -4.2% Income before income taxes 38.7 34.6 11.7% Net income 23.0 22.2 3.5% - ----------------------------------------------------------------------- Exchange rate (Yen/US$) 117.24 106.01 11.23 Exchange rate (Yen/EURO) 139.41 137.16 2.25 - ----------------------------------------------------------------------- Net income per share (yen) 31.34 30.08 1.26 - ----------------------------------------------------------------------- Capital expenditures 21.2 20.5 0.7 Depreciation for tangible fixed assets 17.6 16.9 0.6 R&D expenditures 27.2 26.1 1.0 - ----------------------------------------------------------------------- (2)Nine Months Ended December 31, 2005, 2004 and Year Ending March 31, 2006
(Billions of yen) - ---------------------------------------------------------------------------- ------------------ Nine months Nine months ended ended Year ending December 31, December 31, March 31, 2005 2004 2006 (Results) (Results) Change (Forecast) Change - ---------------------------------------------------------------------------- ------------------ Domestic sales 711.8 700.4 1.6% 990.0 1.7% Overseas sales 686.9 619.3 10.9% 920.0 9.4% Net sales 1,398.7 1,319.8 6.0% 1,910.0 5.3% Gross profit 589.4 555.9 6.0% 802.0 6.3% Operating income 103.9 96.4 7.8% 153.0 12.9% Income before income taxes 108.1 94.7 14.1% 157.5 16.3% Net income 65.8 58.0 13.5% 97.0 16.7% - ---------------------------------------------------------------------------- ------------------ Exchange rate (Yen/US$) 112.04 108.55 3.49 111.52 3.94 Exchange rate (Yen/EURO) 136.92 134.60 2.32 136.44 1.19 - ---------------------------------------------------------------------------- ------------------ Net income per share (yen) 89.74 78.56 11.18 132.10 19.46 - ---------------------------------------------------------------------------- ------------------ Total assets 1,990.8 1,899.8 90.9 -- -- Shareholders' equity 929.5 841.9 87.5 -- -- Interest-bearing debt 397.4 446.4 -49.0 -- -- - ---------------------------------------------------------------------------- ------------------ Equity ratio (%) 46.7 44.3 2.4 -- -- - ---------------------------------------------------------------------------- ------------------ Shareholders' equity per share (yen) 1,265.83 1,139.87 125.96 -- -- - ---------------------------------------------------------------------------- ------------------ Cash flows from operating activities 93.5 74.3 19.2 -- -- Cash flows from investing activities -91.2 -90.5 -0.6 -- -- Cash flows from financing activities -32.0 -22.9 -9.1 -- -- Cash and cash equivalents at end of period 154.8 168.1 -13.3 -- -- - ---------------------------------------------------------------------------- ------------------ Capital expenditures 79.4 58.7 20.6 110.0 25.2 Depreciation for tangible fixed assets 48.7 48.0 0.7 67.0 0.2 R&D expenditures 82.1 79.6 2.5 116.0 5.5 - ---------------------------------------------------------------------------- ------------------
RICOH COMPANY, LTD. * Ricoh bases the forecast estimates for the year ending March 31, 2006 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 The Ricoh groups' consolidated net sales for the third quarter of fiscal 2006 (the three months period from October 1 to December 31, 2005) increased by 7.2% as compared to the previous corresponding period, to Yen 475.7 billion. During this quarter, the average yen exchange rates were Yen 117.24 against the U.S. dollar (down Yen 11.23) and Yen 139.41 against the Euro (down Yen 2.25). Net sales would increase by 4.2% excluding impact of such foreign currency exchange fluctuations. As for Japan, net sales of product categories such as PPCs (plain paper copiers), MFPs (multifunctional printers) and laser printers and net sales of solution business such as support service increased. Moreover, Industry Business and Other Business achieved steady sales growth. On the other hand, net sales of stand-alone products, and personal computers and PC servers decreased. As a result, domestic sales decreased by 0.2% as compared to the previous corresponding period. As for overseas, net sales of digital PPCs increased in the Americas and China. Net sales of MFPs and laser printers increased in each region. Net sales increased by 25.5% (13.4% excluding exchange fluctuation impact) in the Americas, 7.0% (5.0%) in Europe and 18.7% (11.9%) in Other area such as China and Asia. As a result for overseas, net sales increased by 15.3% as compared to the previous corresponding period and would increase by 9.0%, excluding impact of currency exchange fluctuations. Gross profit increased by 4.7% due primarily to increased sales in the Imaging Solution as our core business such as digital PPCs, MFPs and laser printers. As for operating income, it decreased by 4.2% as compared to the previous corresponding period, to Yen 37.0 billion due primarily to an increase of selling, general and administrative expenses that consists of R&D expenses (increased Yen 1.0 billion, 5.7% of net sales), the reorganization of domestic bases and integration of group companies in Japan and overseas. A gain from foreign currency exchange was included in the other (income) expenses. As a result, income before income taxes increased by 11.7% as compared to the previous corresponding period, to Yen 38.7 billion. As for provision for income taxes, effective tax rate during this quarter raised temporarily due to the recognition of deferred income tax accompanied with integration of group companies. A decrease in minority interests in earnings of subsidiaries and equity in earnings of affiliates were due to decreased income of subsidiaries and affiliates. As a result, net income increased by 3.5% as compared to the previous corresponding period, to Yen 23.0 billion. 2 *Conditions by Product Line Office Solution Business (Sales up 7.4% to Yen 407.9 billion) - -------------------------------------------------------------- Net sales in the Imaging Solution as our core business increased as compared to the previous corresponding period due primarily to a continuously sales increase of color PPCs, MFPs and laser printers in Japan and overseas. On the other hand, net sales in the Network System Solution decreased due primarily to a decrease in sales of personal computers and PC servers. As a result, net sales in the Office Solution Business increased by 7.4% to Yen 407.9 billion. Imaging Solution (Sales up 8.6% to Yen 367.2 billion) ------------------------------------------------------ - Although domestic sales of digital PPCs decreased due primarily to a shift in customer demands to MFPs from stand-alone products, overseas sales of digital PPCs continued performing well. - Color PPCs increased by introducing a new series of products to the market in responding to an increase of customer demands. - In response to customer demands for high speed, networking and coloration, sales of MFPs continued to increase by offering new product lineups in Japan and overseas. MFPs: Imagio Neo 250, Imagio Neo 453 in Japan Aficio 2020/2020D series overseas Color MFPs: Imagio Neo C246 in Japan Aficio 3260C overseas - Sales of laser printers continued to increase. - As a result, sales in this category increased by 8.6%. Network System Solution (Sales down 2.6% to Yen 40.7 billion) -------------------------------------------------------------- - Net sales in this category decreased due primarily to a decline in sales of personal computers and PC servers as compared to the previous corresponding period, although net sales of solution business such as support service increased. Operating income in this segment decreased by 6.2% as compared to the previous corresponding period, to Yen 51.3 billion. Despite the profit effect of increased sales and new product offering, it was offset by R&D expenses and costs incurred by the reorganization of domestic bases and integration of group companies. Industry Business (Sales up 13.9% to Yen 29.7 billion) - ------------------------------------------------------- Net sales in the Industry Business increased by 13.9% as compared to the previous corresponding period, to Yen 29.7 billion. Despite a decrease in demand of optical equipments business, sales in thermal business and electronic component business increased, and semiconductor business also increased its sales as compared to the previous corresponding period. However, the Industry Business resulted losses of Yen 0.7 billion in operating income due primarily to countermeasures to the market of measuring equipments business. Other Business (Sales up 0.8% to Yen 38.0 billion) - --------------------------------------------------- Net sales in the Other Business increased by 0.8% as compared to the previous corresponding period, to Yen 38.0 billion. Despite decreased sales of optical discs business in overseas and sales of non-core business subsidiary, financing and logistics businesses performed well and contributed in profits. As a result, operating income in this segment increased to Yen 2.4 billion. Note: Effective from the year ending March 31, 2006, our business segment is changed into three categories such as "Office Solution", "Industry" and "Other". *Cash Flows (Nine months ended December 31, 2005) Net cash provided by operating activities increased Yen 19.2 billion as compared to the previous corresponding period, to Yen 93.5 billion. It was due mainly to the fact that net income and depreciation increased and trade receivables were collected, despite a decrease in trade payables and increase in finance receivables. Net cash used in investing activities increased Yen 0.6 billion to Yen 91.2 billion, due to capital expenditure on research and development facilities and new plants. As a result, free cash flows generated by operating and investing activities increased Yen 18.5 billion as compared to the previous corresponding period, to Yen 2.2 billion. Net cash used in financing activities amounted to Yen 32.0 billion due primarily to the repayment of interest-bearing debt and dividend payments. As a result, cash and cash equivalents at the end of this third quarter decreased by Yen 32.0 billion as compared to the end of the preceding fiscal year, to Yen 154.8 billion. 3 * Forecast for the entire fiscal year As for consolidated operating results forecast for the fiscal year ending March 31, 2006, we have revised our sales forecast as announced in October 2005, up to Yen 1,910.0 billion in view of increased sales for nine months ended December 31, 2005. Assumed foreign exchange rates for the fourth quarter of Yen 110.00 to the U.S. dollar and Yen 135.00 to the Euro have been unchanged. As for income, we revised downward our forecast to operating income of Yen 153.0 billion and income before income taxes of Yen 157.5 billion, from Yen 160.0 billion and Yen 160.0 billion of which we announced in October 2005, respectively. It is due primarily to the activities of which include production and sales promotion for new core products in the Imaging Solutions in the second half of this fiscal year, additional spending for the integration of domestic bases and group companies, and building of core operating system. Net income forecast of Yen 97.0 billion has been unchanged. Our performance forecasts for fiscal 2006 are as follows: Exchange rate assumptions for the fiscal year ending March 31, 2006 US$ 1 = Yen 111.52 (Yen 107.58 in previous fiscal year) EURO 1 = Yen 136.44 (Yen 135.25 in previous fiscal year) (Billions of yen) - --------------------------------------------------------------- Year ending Year ended March 31, 2006 March 31, 2005 (Forecast) (Results) Change - --------------------------------------------------------------- Domestic sales 990.0 972.9 1.7% Overseas sales 920.0 841.1 9.4% Net sales 1,910.0 1,814.1 5.3% Gross profit 802.0 754.5 6.3% Operating income 153.0 135.5 12.9% Income before income taxes 157.5 135.3 16.3% Net income 97.0 83.1 16.7% - --------------------------------------------------------------- * Ricoh bases the forecast estimates for the year ending March 31, 2006 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 THIRD QUARTER ENDED DECEMBER 31, 2005 (U.S. GAAP FINANCIAL INFORMATION) 1. ITEMS RELATING TO THIRD 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: 2 additions; 13 removals Companies accounted for by the equity method: No change 2. RESULTS FOR THE PERIOD FROM OCTOBER 1, 2005 TO DECEMBER 31, 2005 (1) Operating Results
(Millions of yen) - ------------------------------------------------------------------------------------------------------- Three months ended Three months ended Year ended December 31, 2005 December 31, 2004 March 31, 2005 - ------------------------------------------------------------------------------------------------------- Net sales 475,770 443,799 1,814,108 (% change from the previous corresponding period) 7.2 5.4 1.9 Operating income 37,086 38,709 135,506 (% change from the previous corresponding period) -4.2 6.9 -9.7 Income before income taxes 38,707 34,661 135,383 (% change from the previous corresponding period) 11.7 4.2 -5.4 Net income 23,000 22,223 83,143 (% change from the previous corresponding period) 3.5 13.0 -9.4 Net income per share-basic (yen) 31.34 30.08 112.64 Net income per share-diluted (yen) -- -- -- - -------------------------------------------------------------------------------------------------------
Note: Equity in earnings of affiliates: Yen 762 million (Yen 1,532 million in previous corresponding period) (2) Financial Position (Millions of yen) - ------------------------------------------------------------------------- December 31, 2005 December 31, 2004 March 31, 2005 - ------------------------------------------------------------------------- Total assets 1,990,802 1,899,898 1,953,669 Shareholders' equity 929,508 841,998 862,998 Equity ratio (%) 46.7 44.3 44.2 Equity per share (yen) 1,265.83 1,139.87 1,175.67 - -------------------------------------------------------------------------
Cash Flows (Millions of yen) - --------------------------------------------------------------------------------------------- Nine months ended Nine months ended Year ended December 31, 2005 December 31, 2004 March 31, 2005 - --------------------------------------------------------------------------------------------- Cash flows from operating activities 93,524 74,318 132,780 Cash flows from investing activities -91,252 -90,576 -96,198 Cash flows from financing activities -32,063 -22,949 -56,439 Cash and cash equivalents at end of period 154,840 168,173 186,857 - ---------------------------------------------------------------------------------------------
3. FORECAST OF OPERATING RESULTS FROM APRIL 1, 2005 TO MARCH 31, 2006 (Millions of yen) - ------------------------------------------------------------------------ Net sales 1,910,000 Operating income 153,000 Income before income taxes 157,500 Net income 97,000 - ------------------------------------------------------------------------ Note: Net income per share (Consolidated) Yen 132.10 In accordance with Japanese regulations, Ricoh has issued forecast for its financial results for the fiscal year ending March 31, 2006. 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, 2005 and 2004) (Millions of yen) - ------------------------------------------------------------------------------------------------------- Three months Three months ended ended December 31, December 31, 2005 2004 Change % - ------------------------------------------------------------------------------------------------------- Net sales 475,770 443,799 31,971 7.2 Cost of sales 274,616 251,696 22,920 9.1 Percentage of net sales (%) 57.7 56.7 Gross Profit 201,154 192,103 9,051 4.7 Percentage of net sales (%) 42.3 43.3 Selling, general and administrative expenses 164,068 153,394 10,674 7.0 Percentage of net sales (%) 34.5 34.6 Operating income 37,086 38,709 -1,623 -4.2 Percentage of net sales (%) 7.8 8.7 Other (income) expense Interest and dividend income 886 358 528 147.5 Percentage of net sales (%) 0.2 0.1 Interest expense 1,450 1,276 174 13.6 Percentage of net sales (%) 0.3 0.3 Other, net -2,185 3,130 -5,315 -- Percentage of net sales (%) -0.4 0.7 Income before income taxes, equity income and minority interests 38,707 34,661 4,046 11.7 Percentage of net sales (%) 8.1 7.8 Provision for income taxes 15,470 12,500 2,970 23.8 Percentage of net sales (%) 3.3 2.8 Minority interests in earnings of subsidiaries 999 1,470 -471 -32.0 Percentage of net sales (%) 0.2 0.3 Equity in earnings of affiliates 762 1,532 -770 -50.3 Percentage of net sales (%) 0.2 0.3 Net income 23,000 22,223 777 3.5 Percentage of net sales (%) 4.8 5.0 - ------------------------------------------------------------------------------------------------------- Reference : Exchange rate US$ 1 Yen 117.24 Yen 106.01 EURO 1 Yen 139.41 Yen 137.16
(Nine months ended December 31, 2005 and 2004 and Year ended March 31, 2005) (Millions of yen) - -------------------------------------------------------------------------------------------------------------------------- Nine months Nine months ended ended Year ended December 31, December 31, March 31, 2005 2004 Change % 2005 - -------------------------------------------------------------------------------------------------------------------------- Net sales 1,398,790 1,319,802 78,988 6.0 1,814,108 Cost of sales 809,383 763,819 45,564 6.0 1,059,531 Percentage of net sales (%) 57.9 57.9 58.4 Gross Profit 589,407 555,983 33,424 6.0 754,577 Percentage of net sales (%) 42.1 42.1 41.6 Selling, general and administrative expenses 485,414 459,516 25,898 5.6 619,071 Percentage of net sales (%) 34.7 34.8 34.1 Operating income 103,993 96,467 7,526 7.8 135,506 Percentage of net sales (%) 7.4 7.3 7.5 Other (income) expense Interest and dividend income 2,270 1,431 839 58.6 2,240 Percentage of net sales (%) 0.2 0.1 0.1 Interest expense 3,645 3,592 53 1.5 4,684 Percentage of net sales (%) 0.3 0.3 0.3 Other, net -5,496 -419 -5,077 -- -2,321 Percentage of net sales (%) -0.4 -0.1 -0.2 Income before income taxes, equity income and minority interests 108,114 94,725 13,389 14.1 135,383 Percentage of net sales (%) 7.7 7.2 7.5 Provision for income taxes 40,255 36,279 3,976 11.0 50,634 Percentage of net sales (%) 2.8 2.7 2.8 Minority interests in earnings of subsidiaries 3,689 3,368 321 9.5 4,726 Percentage of net sales (%) 0.3 0.3 0.3 Equity in earnings of affiliates 1,697 2,966 -1,269 -42.8 3,120 Percentage of net sales (%) 0.1 0.2 0.2 Net income 65,867 58,044 7,823 13.5 83,143 Percentage of net sales (%) 4.7 4.4 4.6 - -------------------------------------------------------------------------------------------------------------------------- Reference : Exchange rate US$ 1 Yen 112.04 Yen 108.55 Yen 107.58 EURO 1 Yen 136.92 Yen 134.60 Yen 135.25
6 2-1. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Three months ended December 31, 2005 and 2004) (Millions of yen) - --------------------------------------------------------------------------------------- Three months Three months ended ended December 31, December 31, 2005 2004 Change % - --------------------------------------------------------------------------------------- [Office Solution Business] Imaging Solution Business 367,207 338,074 29,133 8.6 Percentage of net sales (%) 77.2 76.2 Network System Solution Business 40,779 41,852 -1,073 -2.6 Percentage of net sales (%) 8.6 9.4 Total Office Solution Business 407,986 379,926 28,060 7.4 Percentage of net sales (%) 85.8 85.6 - --------------------------------------------------------------------------------------- [Industry Business] Industry Business 29,715 26,091 3,624 13.9 Percentage of net sales (%) 6.2 5.9 - --------------------------------------------------------------------------------------- [Other Business] Other Business 38,069 37,782 287 0.8 Percentage of net sales (%) 8.0 8.5 - --------------------------------------------------------------------------------------- Grand Total 475,770 443,799 31,971 7.2 Percentage of net sales (%) 100.0 100.0 - --------------------------------------------------------------------------------------- Reference : Exchange rate US$ 1 Yen 117.24 Yen 106.01 EURO 1 Yen 139.41 Yen 137.16
(Nine months ended December 31, 2005 and 2004 and Year ended March 31, 2005) (Millions of yen) - ---------------------------------------------------------------------------------------------------------- Nine months Nine months ended ended Year ended December 31, December 31, March 31, 2005 2004 Change % 2005 - ---------------------------------------------------------------------------------------------------------- [Office Solution Business] Imaging Solution Business 1,060,337 977,130 83,207 8.5 1,332,299 Percentage of net sales (%) 75.8 74.0 73.4 Network System Solution Business 133,930 137,458 -3,528 -2.6 199,129 Percentage of net sales (%) 9.6 10.5 11.0 Total Office Solution Business 1,194,267 1,114,588 79,679 7.1 1,531,428 Percentage of net sales (%) 85.4 84.5 84.4 - ---------------------------------------------------------------------------------------------------------- [Industry Business] Industry Business 88,174 84,851 3,323 3.9 119,408 Percentage of net sales (%) 6.3 6.4 6.6 - ---------------------------------------------------------------------------------------------------------- [Other Business] Other Business 116,349 120,363 -4,014 -3.3 163,272 Percentage of net sales (%) 8.3 9.1 9.0 - ---------------------------------------------------------------------------------------------------------- Grand Total 1,398,790 1,319,802 78,988 6.0 1,814,108 Percentage of net sales (%) 100.0 100.0 100.0 - ---------------------------------------------------------------------------------------------------------- Reference : Exchange rate US$ 1 Yen 112.04 Yen 108.55 Yen 107.58 EURO 1 Yen 136.92 Yen 134.60 Yen 135.25
Note: Effective from the year ending March 31, 2006, our business segment is changed into three categories such as "Office Solution", "Industry" and "Other". Accordingly, information for the previous corresponding period has been reclassified to conform with the current classification. Each category includes the following product line: Imaging Solution Business Digital PPCs, color PPCs, digital duplicators, facsimile machines, analog PPCs, diazo copiers, scanners, MFPs(multifunctional printers), laser printers and software Network System Solution Business Personal computers, PC servers, network systems and network related software Industry Business Thermal media, optical equipments, semiconductors, electronic component and measuring equipments Other Business Optical discs and digital camera
7 2-2. CONSOLIDATED SALES BY GEOGRAPHIC AREA (Three months ended December 31, 2005 and 2004) (Millions of yen) - --------------------------------------------------------------------------- Three months Three months ended ended December 31, December 31, 2005 2004 Change % - --------------------------------------------------------------------------- [Domestic] 230,885 231,321 -436 -0.2 Percentage of net sales (%) 48.5 52.1 [Overseas] 244,885 212,478 32,407 15.3 Percentage of net sales (%) 51.5 47.9 The Americas 98,176 78,246 19,930 25.5 Percentage of net sales (%) 20.6 17.6 Europe 115,109 107,610 7,499 7.0 Percentage of net sales (%) 24.2 24.2 Other 31,600 26,622 4,978 18.7 Percentage of net sales (%) 6.7 6.1 Grand Total 475,770 443,799 31,971 7.2 Percentage of net sales (%) 100.0 100.0 - --------------------------------------------------------------------------- Reference : Exchange rate US$ 1 Yen 117.24 Yen 106.01 EURO 1 Yen 139.41 Yen 137.16
(Nine months ended December 31, 2005 and 2004 and Year ended March 31, 2005) (Millions of yen) - ------------------------------------------------------------------------------------------------ Nine months Nine months ended ended Year ended December 31, December 31, March 31, 2005 2004 Change % 2005 - ------------------------------------------------------------------------------------------------ [Domestic] 711,802 700,497 11,305 1.6 972,975 Percentage of net sales (%) 50.9 53.1 53.6 [Overseas] 686,988 619,305 67,683 10.9 841,133 Percentage of net sales (%) 49.1 46.9 46.4 The Americas 282,091 239,576 42,515 17.7 325,597 Percentage of net sales (%) 20.2 18.2 17.9 Europe 316,508 300,597 15,911 5.3 408,906 Percentage of net sales (%) 22.6 22.8 22.5 Other 88,389 79,132 9,257 11.7 106,630 Percentage of net sales (%) 6.3 5.9 6.0 Grand Total 1,398,790 1,319,802 78,988 6.0 1,814,108 Percentage of net sales (%) 100.0 100.0 100.0 - ------------------------------------------------------------------------------------------------ Reference : Exchange rate US$ 1 Yen 112.04 Yen 108.55 Yen 107.58 EURO 1 Yen 136.92 Yen 134.60 Yen 135.25
8 3. CONSOLIDATED BALANCE SHEETS (December 31, 2005 and March 31, 2005)
Assets (Millions of yen) - ------------------------------------------------------------------------------------------------------------------ December 31, 2005 March 31, 2005 Change - ------------------------------------------------------------------------------------------------------------------ Current Assets Cash and time deposits 156,552 188,311 -31,759 Trade receivables 622,651 620,568 2,083 Marketable securities 159 138 21 Inventories 171,703 167,365 4,338 Other current assets 56,536 53,365 3,171 Total Current Assets 1,007,601 1,029,747 -22,146 Fixed Assets Tangible fixed assets 264,192 247,410 16,782 Finance receivables 415,063 391,947 23,116 Other Investments 303,946 284,565 19,381 Total Fixed Assets 983,201 923,922 59,279 - ------------------------------------------------------------------------------------------------------------------ Total Assets 1,990,802 1,953,669 37,133 - ------------------------------------------------------------------------------------------------------------------ Note: Contents of cash and time deposits: Cash and cash equivalents 154,840 186,857 Time deposits 1,712 1,454 Liabilities and Shareholders' Investment (Millions of yen) - ------------------------------------------------------------------------------------------------------------------ December 31, 2005 March 31, 2005 Change - ------------------------------------------------------------------------------------------------------------------ Current Liabilities Trade payables 311,927 336,499 -24,572 Short-term borrowings 158,703 183,518 -24,815 Other current liabilities 154,892 151,497 3,395 Total Current Liabilities 625,522 671,514 -45,992 Fixed Liabilities Long-term indebtedness 238,745 226,567 12,178 Accrued pension and severance costs 95,503 92,672 2,831 Other fixed liabilities 48,776 48,767 9 Total Fixed Liabilities 383,024 368,006 15,018 - ------------------------------------------------------------------------------------------------------------------ Total Liabilities 1,008,546 1,039,520 -30,974 - ------------------------------------------------------------------------------------------------------------------ Minority Interest 52,748 51,151 1,597 - ------------------------------------------------------------------------------------------------------------------ Shareholders' Investment Common stock 135,364 135,364 -- Additional paid-in capital 186,450 186,551 -101 Retained earnings 634,204 584,515 49,689 Accumulated other comprehensive income (loss) -5,616 -21,963 16,347 Treasury stock -20,894 -21,469 575 Total Shareholders' Investment 929,508 862,998 66,510 - ------------------------------------------------------------------------------------------------------------------ Total Liabilities and Shareholders' Investment 1,990,802 1,953,669 37,133 - ------------------------------------------------------------------------------------------------------------------ Note: Other comprehensive income; Net unrealized holding gains on available-for-sale securities 7,855 4,791 3,064 Pension liability adjustments -13,953 -14,652 699 Net unrealized gains (losses) on derivative instruments 67 117 -50 Cumulative translation adjustments 415 -12,219 12,634 Reference: Exchange rate December 31, 2005 March 31, 2005 US$ 1 Yen 118.07 Yen 107.39 EURO 1 Yen 139.83 Yen 138.87
9 4. CONSOLIDATED STATEMENTS OF CASH FLOWS
(Nine months ended December 31, 2005 and 2004 and Year ended March 31, 2005) (Millions of yen) - --------------------------------------------------------------------------------------------------------------- Nine months Nine months ended ended Year ended December 31, December 31, March 31, 2005 2004 2005 - --------------------------------------------------------------------------------------------------------------- I. Cash Flows from Operating Activities: 1. Net income 65,867 58,044 83,143 2. Adjustments to reconcile net income to net cash provided by operating activities-- Depreciation and amortization 62,275 57,498 78,201 Equity in earnings of affiliates, net of dividends received -872 -2,163 -1,966 Deferred income taxes -3,149 5,731 11,353 Losses on disposal and sales of tangible fixed assets 1,794 1,600 4,056 Changes in assets and liabilities, net of effects from acquisition-- (Increase) decrease in trade receivables 20,194 23,847 -26,429 (Increase) decrease in inventories 913 -14,111 -12,885 Increase in finance receivables -25,204 -19,659 -30,294 (Decrease) increase in trade payables -31,404 -23,282 27,276 Decrease in accrued income taxes and accrued expenses and other -2,758 -24,387 -13,719 Increase in accrued pension and severance costs 2,222 2,454 4,307 Other, net 3,646 8,746 9,737 - ------------------------------------------------------------------------------------------------------------ Net cash provided by operating activities 93,524 74,318 132,780 - ------------------------------------------------------------------------------------------------------------ II. Cash Flows from Investing Activities: 1. Proceeds from sales of property, plant and equipment 331 1,631 721 2. Expenditures for tangible fixed assets -79,267 -58,253 -84,076 3. Payments for purchases of available-for-sale securities -114,519 -27,161 -79,431 4. Proceeds from sales of available-for-sale securities 117,417 39,024 118,120 5. (Increase) decrease in time deposits, net -155 108 -511 6. Acquisition of new subsidiaries, net of cash acquired -- -41,673 -43,214 7. Other, net -15,059 -4,252 -7,807 - ------------------------------------------------------------------------------------------------------------ Net cash used in investing activities -91,252 -90,576 -96,198 - ------------------------------------------------------------------------------------------------------------ III. Cash Flows from Financing Activities: 1. Proceeds from long-term indebtedness 61,160 45,053 72,206 2. Repayment of long-term indebtedness -67,833 -37,522 -60,613 3. (Decrease) increase in short-term borrowings, net 43,887 -1,628 -38,052 4. Proceeds from issuance of long-term debt securities -- 9,000 18,000 5. Repayment of long-term debt securities -52,000 -22,000 -22,000 6. Dividends paid -16,178 -14,793 -14,793 7. Payment for purchase of treasury stock -487 -480 -10,624 8. Other, net -612 -579 -563 - ------------------------------------------------------------------------------------------------------------ Net cash used in financing activities -32,063 -22,949 -56,439 - ------------------------------------------------------------------------------------------------------------ IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents -2,226 1,866 1,200 - ------------------------------------------------------------------------------------------------------------ V. Net Decrease in Cash and Cash Equivalents -32,017 -37,341 -18,657 - ------------------------------------------------------------------------------------------------------------ VI. Cash and Cash Equivalents at Beginning of Year 186,857 203,039 203,039 VII. Adjustment for Change of Fiscal Period on Consolidated Subsidiaries -- 2,475 2,475 - ------------------------------------------------------------------------------------------------------------ VIII. Cash and Cash Equivalents at End of Period 154,840 168,173 186,857 - ------------------------------------------------------------------------------------------------------------
10 5. SEGMENT INFORMATION (1) Industry Segment Information
(Three months ended December 31, 2005 and 2004) (Millions of yen) - ---------------------------------------------------------------------------------------------------- Three months Three months ended ended December 31, December 31, 2005 2004 Change % - ---------------------------------------------------------------------------------------------------- OFFICE SOLUTION BUSINESS: Net sales: Unaffiliated customers 407,986 379,926 28,060 7.4 Intersegment -- -- -- -- Total 407,986 379,926 28,060 7.4 - ---------------------------------------------------------------------------------------------------- Operating expenses 356,613 325,162 31,451 9.7 - ---------------------------------------------------------------------------------------------------- Operating income 51,373 54,764 -3,391 -6.2 Operating income on sales in Office Solution Business (%) 12.6 14.4 - ---------------------------------------------------------------------------------------------------- INDUSTRY BUSINESS: Net sales: Unaffiliated customers 29,715 26,091 3,624 13.9 Intersegment 658 596 62 10.4 Total 30,373 26,687 3,686 13.8 - ---------------------------------------------------------------------------------------------------- Operating expenses 31,074 27,179 3,895 14.3 - ---------------------------------------------------------------------------------------------------- Operating income -701 -492 -209 -- Operating income on sales in Industry Business (%) -2.3 -1.8 - ---------------------------------------------------------------------------------------------------- OTHER BUSINESS: Net sales: Unaffiliated customers 38,069 37,782 287 0.8 Intersegment -- -- -- -- Total 38,069 37,782 287 0.8 - ---------------------------------------------------------------------------------------------------- Operating expenses 35,587 37,434 -1,847 -4.9 - ---------------------------------------------------------------------------------------------------- Operating income 2,482 348 2,134 613.2 Operating income on sales in Other Business (%) 6.5 0.9 - ---------------------------------------------------------------------------------------------------- CORPORATE AND ELIMINATIONS: Net sales: Intersegment -658 -596 -62 -- Total -658 -596 -62 -- - ---------------------------------------------------------------------------------------------------- Operating expenses: Intersegment -662 -592 -70 -- Corporate 16,072 15,907 165 -- Total 15,410 15,315 95 -- - ---------------------------------------------------------------------------------------------------- Operating income -16,068 -15,911 -157 -- - ---------------------------------------------------------------------------------------------------- CONSOLIDATED: Net sales: Unaffiliated customers 475,770 443,799 31,971 7.2 Intersegment -- -- -- -- Total 475,770 443,799 31,971 7.2 - ---------------------------------------------------------------------------------------------------- Operating expenses 438,684 405,090 33,594 8.3 - ---------------------------------------------------------------------------------------------------- Operating income 37,086 38,709 -1,623 -4.2 Operating income on consolidated net sales (%) 7.8 8.7 - ----------------------------------------------------------------------------------------------------
Note: Effective from the year ending March 31, 2006, our business segment is changed into three categories such as "Office Solution", "Industry" and "Other". Accordingly, information for the previous corresponding period has been reclassified to conform with the current classification. 11
(Nine months ended December 31, 2005 and 2004 and Year ended March 31, 2005) (Millions of yen) - ------------------------------------------------------------------------------------------------------------ Nine months Nine months ended ended Year ended December December March 31, 31, 2005 31, 2004 Change % 2005 - ------------------------------------------------------------------------------------------------------------ OFFICE SOLUTION BUSINESS: Net sales: Unaffiliated customers 1,194,267 1,114,588 79,679 7.1 1,531,428 Intersegment -- -- -- -- -- Total 1,194,267 1,114,588 79,679 7.1 1,531,428 - ----------------------------------------------------------------------------------------------------------- Operating expenses 1,052,462 975,903 76,559 7.8 1,335,059 - ----------------------------------------------------------------------------------------------------------- Operating income 141,805 138,685 3,120 2.2 196,369 Operating income on sales in Office Solution Business (%) 11.9 12.4 12.8 - ----------------------------------------------------------------------------------------------------------- INDUSTRY BUSINESS: Net sales: Unaffiliated customers 88,174 84,851 3,323 3.9 119,408 Intersegment 1,902 1,862 40 2.1 2,506 Total 90,076 86,713 3,363 3.9 121,914 - ----------------------------------------------------------------------------------------------------------- Operating expenses 90,948 86,424 4,524 5.2 121,872 - ----------------------------------------------------------------------------------------------------------- Operating income -872 289 -1,161 -- 42 Operating income on sales in Industry Business (%) -1.0 0.3 0.0 - ----------------------------------------------------------------------------------------------------------- OTHER BUSINESS: Net sales: Unaffiliated customers 116,349 120,363 -4,014 -3.3 163,272 Intersegment -- -- -- -- -- Total 116,349 120,363 -4,014 -3.3 163,272 - ----------------------------------------------------------------------------------------------------------- Operating expenses 111,739 121,254 -9,515 -7.8 167,431 - ----------------------------------------------------------------------------------------------------------- Operating income 4,610 -891 5,501 -- -4,159 Operating income on sales in Other Business (%) 4.0 -0.7 -2.5 - ----------------------------------------------------------------------------------------------------------- CORPORATE AND ELIMINATIONS: Net sales: Intersegment -1,902 -1,862 -40 -- -2,506 Total -1,902 -1,862 -40 -- -2,506 - ----------------------------------------------------------------------------------------------------------- Operating expenses: Intersegment -1,941 -1,860 -81 -- -2,475 Corporate 41,589 41,614 -25 -- 56,715 Total 39,648 39,754 -106 -- 54,240 - ----------------------------------------------------------------------------------------------------------- Operating income -41,550 -41,616 66 -- -56,746 - ----------------------------------------------------------------------------------------------------------- CONSOLIDATED: Net sales: Unaffiliated customers 1,398,790 1,319,802 78,988 6.0 1,814,108 Intersegment -- -- -- -- -- Total 1,398,790 1,319,802 78,988 6.0 1,814,108 - ----------------------------------------------------------------------------------------------------------- Operating expenses 1,294,797 1,223,335 71,462 5.8 1,678,602 - ----------------------------------------------------------------------------------------------------------- Operating income 103,993 96,467 7,526 7.8 135,506 Operating income on consolidated net sales (%) 7.4 7.3 7.5 - -----------------------------------------------------------------------------------------------------------
Note: Effective from the year ending March 31, 2006, our business segment is changed into three categories such as "Office Solution", "Industry" and "Other". Accordingly, information for the previous corresponding period has been reclassified to conform with the current classification. 12 (2)Geographic Segment Information
(Three months ended December 31, 2005 and 2004) (Millions of yen) - ---------------------------------------------------------------------------------------------------- Three months ended Three months ended December 31, 2005 December 31, 2004 Change % - ---------------------------------------------------------------------------------------------------- JAPAN: Net sales: External customers 237,143 236,003 1,140 0.5 Intersegment 104,330 104,719 -389 -0.4 Total 341,473 340,722 751 0.2 - ---------------------------------------------------------------------------------------------------- Operating expenses 313,960 311,668 2,292 0.7 - ---------------------------------------------------------------------------------------------------- Operating income 27,513 29,054 -1,541 -5.3 Operating income on sales in Japan(%) 8.1 8.5 - ---------------------------------------------------------------------------------------------------- THE AMERICAS: Net sales: External customers 98,122 78,146 19,976 25.6 Intersegment 5,405 1,327 4,078 307.3 Total 103,527 79,473 24,054 30.3 - ---------------------------------------------------------------------------------------------------- Operating expenses 101,728 77,846 23,882 30.7 - ---------------------------------------------------------------------------------------------------- Operating income 1,799 1,627 172 10.6 Operating income on sales in the Americas(%) 1.7 2.0 - ---------------------------------------------------------------------------------------------------- EUROPE: Net sales: External customers 116,178 108,085 8,093 7.5 Intersegment 869 747 122 16.3 Total 117,047 108,832 8,215 7.5 - ---------------------------------------------------------------------------------------------------- Operating expenses 112,612 103,620 8,992 8.7 - ---------------------------------------------------------------------------------------------------- Operating income 4,435 5,212 -777 -14.9 Operating income on sales in Europe(%) 3.8 4.8 - ---------------------------------------------------------------------------------------------------- OTHER: Net sales: External customers 24,327 21,565 2,762 12.8 Intersegment 25,335 21,501 3,834 17.8 Total 49,662 43,066 6,596 15.3 - ---------------------------------------------------------------------------------------------------- Operating expenses 46,029 39,925 6,104 15.3 - ---------------------------------------------------------------------------------------------------- Operating income 3,633 3,141 492 15.7 Operating income on sales in Other(%) 7.3 7.3 - ---------------------------------------------------------------------------------------------------- CORPORATE AND ELIMINATIONS: Net sales: Intersegment -135,939 -128,294 -7,645 -- Total -135,939 -128,294 -7,645 -- - ---------------------------------------------------------------------------------------------------- Operating expenses -135,645 -127,969 -7,676 -- - ---------------------------------------------------------------------------------------------------- Operating income -294 -325 31 -- - ---------------------------------------------------------------------------------------------------- CONSOLIDATED: Net sales: External customers 475,770 443,799 31,971 7.2 Intersegment -- -- -- -- Total 475,770 443,799 31,971 7.2 - ---------------------------------------------------------------------------------------------------- Operating expenses 438,684 405,090 33,594 8.3 - ---------------------------------------------------------------------------------------------------- Operating income 37,086 38,709 -1,623 -4.2 Operating income on consolidated net sales(%) 7.8 8.7 - ----------------------------------------------------------------------------------------------------
13
(Nine months ended December 31, 2005 and 2004 and Year ended March 31, 2005) (Millions of yen) - -------------------------------------------------------------------------------------------------------------- Year ended Nine months ended Nine months ended March 31, December 31, 2005 December 31, 2004 Change % 2005 - -------------------------------------------------------------------------------------------------------------- JAPAN: Net sales: External customers 732,761 717,476 15,285 2.1 994,499 Intersegment 308,643 294,539 14,104 4.8 392,216 Total 1,041,404 1,012,015 29,389 2.9 1,386,715 - ------------------------------------------------------------------------------------------------------------- Operating expenses 966,641 943,269 23,372 2.5 1,298,640 - ------------------------------------------------------------------------------------------------------------- Operating income 74,763 68,746 6,017 8.8 88,075 Operating income on sales in Japan(%) 7.2 6.8 6.4 - ------------------------------------------------------------------------------------------------------------- THE AMERICAS: Net sales: External customers 280,441 237,330 43,111 18.2 322,975 Intersegment 7,158 6,141 1,017 16.6 7,486 Total 287,599 243,471 44,128 18.1 330,461 - ------------------------------------------------------------------------------------------------------------- Operating expenses 279,335 235,711 43,624 18.5 316,651 - ------------------------------------------------------------------------------------------------------------- Operating income 8,264 7,760 504 6.5 13,810 Operating income on sales in the Americas(%) 2.9 3.2 4.2 - ------------------------------------------------------------------------------------------------------------- EUROPE: Net sales: External customers 315,747 302,026 13,721 4.5 412,333 Intersegment 3,315 2,536 779 30.7 3,310 Total 319,062 304,562 14,500 4.8 415,643 - ------------------------------------------------------------------------------------------------------------- Operating expenses 304,660 288,388 16,272 5.6 391,271 - ------------------------------------------------------------------------------------------------------------- Operating income 14,402 16,174 -1,772 -11.0 24,372 Operating income on sales in Europe(%) 4.5 5.3 5.9 - ------------------------------------------------------------------------------------------------------------- OTHER: Net sales: External customers 69,841 62,970 6,871 10.9 84,301 Intersegment 73,354 65,319 8,035 12.3 89,647 Total 143,195 128,289 14,906 11.6 173,948 - ------------------------------------------------------------------------------------------------------------- Operating expenses 132,963 119,713 13,250 11.1 162,042 - ------------------------------------------------------------------------------------------------------------- Operating income 10,232 8,576 1,656 19.3 11,906 Operating income on sales in Other(%) 7.1 6.7 6.8 - ------------------------------------------------------------------------------------------------------------- CORPORATE AND ELIMINATIONS: Net sales: Intersegment -392,470 -368,535 -23,935 -- -492,659 Total -392,470 -368,535 -23,935 -- -492,659 - ------------------------------------------------------------------------------------------------------------- Operating expenses -388,802 -363,746 -25,056 -- -490,002 - ------------------------------------------------------------------------------------------------------------- Operating income -3,668 -4,789 1,121 -- -2,657 - ------------------------------------------------------------------------------------------------------------- CONSOLIDATED: Net sales: External customers 1,398,790 1,319,802 78,988 6.0 1,814,108 Intersegment -- -- -- -- -- Total 1,398,790 1,319,802 78,988 6.0 1,814,108 - ------------------------------------------------------------------------------------------------------------- Operating expenses 1,294,797 1,223,335 71,462 5.8 1,678,602 - ------------------------------------------------------------------------------------------------------------- Operating income 103,993 96,467 7,526 7.8 135,506 Operating income on consolidated net sales(%) 7.4 7.3 7.5 - -------------------------------------------------------------------------------------------------------------
14 - -APPENDIX- (Third Quarter Ended December 31, 2005) 1. CONSOLIDATED QUARTERLY PERFORMANCE OUTLINE
Fiscal 2006 (Millions of yen) - --------------------------------------------------------------------------------------------- 1Q Change(%) 2Q Change(%) 3Q Change(%) - --------------------------------------------------------------------------------------------- Net sales 452,982 3.8 470,038 7.0 475,770 7.2 Gross profit 194,722 2.9 193,531 10.8 201,154 4.7 Operating income 37,282 -5.3 29,625 61.3 37,086 -4.2 Income before income taxes 38,095 -7.8 31,312 67.0 38,707 11.7 Net income 23,723 -4.7 19,144 75.2 23,000 3.5 - --------------------------------------------------------------------------------------------- Net income per share (yen) 32.32 -- 26.08 -- 31.34 -- - --------------------------------------------------------------------------------------------- Total assets 1,899,986 -- 1,948,587 -- 1,990,802 -- Shareholders' equity 879,665 -- 905,674 -- 929,508 -- - --------------------------------------------------------------------------------------------- Shareholders' equity per share (yen) 1,198.48 -- 1,233.08 -- 1,265.83 -- - ---------------------------------------------------------------------------------------------
Fiscal 2005 (Millions of yen) - ----------------------------------------------------------------------------------------------------------------- 1Q Change(%) 2Q Change(%) 3Q Change(%) 4Q Change(%) - ----------------------------------------------------------------------------------------------------------------- Net sales 436,550 -0.2 439,453 -2.5 443,799 5.4 494,306 4.9 Gross profit 189,171 -1.9 174,709 -10.6 192,103 3.4 198,594 3.6 Operating income 39,387 2.3 18,371 -52.6 38,709 6.9 39,039 6.8 Income before income taxes 41,319 10.7 18,745 -45.0 34,661 4.2 40,658 5.9 Net income 24,894 11.4 10,927 -45.1 22,223 13.0 25,099 -15.9 - ----------------------------------------------------------------------------------------------------------------- Net income per share (yen) 33.69 -- 14.79 -- 30.08 -- 34.08 -- - ----------------------------------------------------------------------------------------------------------------- Total assets 1,855,745 -- 1,877,455 -- 1,899,898 -- 1,953,669 -- Shareholders' equity 812,915 -- 830,280 -- 841,998 -- 862,998 -- - ----------------------------------------------------------------------------------------------------------------- Shareholders' equity per share (yen) 1,100.24 -- 1,123.84 -- 1,139.87 -- 1,175.67 -- - -----------------------------------------------------------------------------------------------------------------
Note:Fiscal year refers to Ricoh's fiscal year ended March 31. A1 2. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Three months ended December 31, 2005 and 2004) (Millions of yen) - ------------------------------------------------------------------------------------------------------------------------------- Three months ended Three months ended Change excluding December 31, 2005 December 31, 2004 Change % exchange impact % - ------------------------------------------------------------------------------------------------------------------------------- [Office Solution Business] Imaging Solution Business 367,207 338,074 29,133 8.6 16,659 4.9 Percentage of net sales (%) 77.2 76.2 Domestic 143,304 143,259 45 0.0 45 0.0 Overseas 223,903 194,815 29,088 14.9 16,614 8.5 Network System Solution Business 40,779 41,852 -1,073 -2.6 -1,168 -2.8 Percentage of net sales (%) 8.6 9.4 Domestic 38,396 40,145 -1,749 -4.4 -1,749 -4.4 Overseas 2,383 1,707 676 39.6 581 34.0 Office Solution Business Total 407,986 379,926 28,060 7.4 15,491 4.1 Percentage of net sales (%) 85.8 85.6 Domestic 181,700 183,404 -1,704 -0.9 -1,704 -0.9 Overseas 226,286 196,522 29,764 15.1 17,195 8.7 The Americas 93,969 75,560 18,409 24.4 9,420 12.5 Europe 109,300 102,215 7,085 6.9 5,030 4.9 Other 23,017 18,747 4,270 22.8 2,745 14.6 - ------------------------------------------------------------------------------------------------------------------------------- [Industry Business] Industry Business 29,715 26,091 3,624 13.9 3,147 12.1 Percentage of net sales (%) 6.2 5.9 Domestic 17,662 16,725 937 5.6 937 5.6 Overseas 12,053 9,366 2,687 28.7 2,210 23.6 The Americas 3,921 2,409 1,512 62.8 1,104 45.8 Europe 4,073 3,873 200 5.2 143 3.7 Other 4,059 3,084 975 31.6 963 31.2 - ------------------------------------------------------------------------------------------------------------------------------- [Other Business] Other Business 38,069 37,782 287 0.8 -36 -0.1 Percentage of net sales (%) 8.0 8.5 Domestic 31,523 31,192 331 1.1 331 1.1 Overseas 6,546 6,590 -44 -0.7 -367 -5.6 The Americas 286 277 9 3.1 -13 -4.6 Europe 1,736 1,522 214 14.1 187 12.3 Other 4,524 4,791 -267 -5.6 -541 -11.3 - ------------------------------------------------------------------------------------------------------------------------------- Grand Total 475,770 443,799 31,971 7.2 18,602 4.2 Percentage of net sales (%) 100.0 100.0 Domestic 230,885 231,321 -436 -0.2 -436 -0.2 Percentage of net sales (%) 48.5 52.1 Overseas 244,885 212,478 32,407 15.3 19,038 9.0 Percentage of net sales (%) 51.5 47.9 The Americas 98,176 78,246 19,930 25.5 10,511 13.4 Percentage of net sales (%) 20.6 17.6 Europe 115,109 107,610 7,499 7.0 5,360 5.0 Percentage of net sales (%) 24.2 24.2 Other 31,600 26,622 4,978 18.7 3,167 11.9 Percentage of net sales (%) 6.7 6.1 - ------------------------------------------------------------------------------------------------------------------------------- Reference: Exchange rate US$ 1 Yen 117.24 Yen 106.01 Yen 11.23 EURO 1 Yen 139.41 Yen 137.16 Yen 2.25
Each category includes the following product line: Imaging Solution Business Digital PPCs, color PPCs, digital duplicators, facsimile machines, analog PPCs, diazo copiers, scanners, MFPs(multifunctional printers), laser printers and software Network System Solution Business Personal computers, PC servers, network systems and network related software Industry Business Thermal media, optical equipments, semiconductors, electronic component and measuring equipments Other Business Optical discs and digital camera
A2
(Nine months ended December 31, 2005 and 2004 and Year ended March 31, 2005) (Millions of yen) - -------------------------------------------------------------------------------------------------------------------------------- Nine months Nine months Change ended ended excluding Year ended December December exchange March 31, 31, 2005 31, 2004 Change % impact % 2005 - -------------------------------------------------------------------------------------------------------------------------------- [Office Solution Business] Imaging Solution Business 1,060,337 977,130 83,207 8.5 67,440 6.9 1,332,299 Percentage of net sales (%) 75.8 74.0 73.4 Domestic 432,545 411,029 21,516 5.2 21,516 5.2 564,163 Overseas 627,792 566,101 61,691 10.9 45,924 8.1 768,136 Network System Solution Business 133,930 137,458 -3,528 -2.6 -3,666 -2.7 199,129 Percentage of net sales (%) 9.6 10.5 11.0 Domestic 127,380 132,828 -5,448 -4.1 -5,448 -4.1 192,304 Overseas 6,550 4,630 1,920 41.5 1,782 38.5 6,825 Office Solution Business Total 1,194,267 1,114,588 79,679 7.1 63,774 5.7 1,531,428 Percentage of net sales (%) 85.4 84.5 84.4 Domestic 559,925 543,857 16,068 3.0 16,068 3.0 756,467 Overseas 634,342 570,731 63,611 11.1 47,706 8.4 774,961 The Americas 268,342 229,287 39,055 17.0 30,714 13.4 312,188 Europe 300,364 283,691 16,673 5.9 11,449 4.0 385,689 Other 65,636 57,753 7,883 13.6 5,543 9.6 77,084 - -------------------------------------------------------------------------------------------------------------------------------- [Industry Business] Industry Business 88,174 84,851 3,323 3.9 2,772 3.3 119,408 Percentage of net sales (%) 6.3 6.4 6.6 Domestic 53,740 56,429 -2,689 -4.8 -2,689 -4.8 80,833 Overseas 34,434 28,422 6,012 21.2 5,461 19.2 38,575 The Americas 12,142 7,525 4,617 61.4 4,240 56.3 10,112 Europe 11,546 11,087 459 4.1 279 2.5 15,338 Other 10,746 9,810 936 9.5 942 9.6 13,125 - -------------------------------------------------------------------------------------------------------------------------------- [Other Business] Other Business 116,349 120,363 -4,014 -3.3 -4,422 -3.7 163,272 Percentage of net sales (%) 8.3 9.1 9.0 Domestic 98,137 100,211 -2,074 -2.1 -2,074 -2.1 135,675 Overseas 18,212 20,152 -1,940 -9.6 -2,348 -11.7 27,597 The Americas 1,607 2,764 -1,157 -41.9 -1,178 -42.6 3,297 Europe 4,598 5,819 -1,221 -21.0 -1,288 -22.1 7,879 Other 12,007 11,569 438 3.8 118 1.0 16,421 - -------------------------------------------------------------------------------------------------------------------------------- Grand Total 1,398,790 1,319,802 78,988 6.0 62,124 4.7 1,814,108 Percentage of net sales (%) 100.0 100.0 100.0 Domestic 711,802 700,497 11,305 1.6 11,305 1.6 972,975 Percentage of net sales (%) 50.9 53.1 53.6 Overseas 686,988 619,305 67,683 10.9 50,819 8.2 841,133 Percentage of net sales (%) 49.1 46.9 46.4 The Americas 282,091 239,576 42,515 17.7 33,776 14.1 325,597 Percentage of net sales (%) 20.2 18.2 17.9 Europe 316,508 300,597 15,911 5.3 10,440 3.5 408,906 Percentage of net sales (%) 22.6 22.8 22.5 Other 88,389 79,132 9,257 11.7 6,603 8.3 106,630 Percentage of net sales (%) 6.3 5.9 6.0 - -------------------------------------------------------------------------------------------------------------------------------- Reference: Exchange rate US$ 1 Yen 112.04 Yen 108.55 Yen 3.49 Yen 107.58 EURO 1 Yen 136.92 Yen 134.60 Yen 2.32 Yen 135.25
Each category includes the following product line: Imaging Solution Business Digital PPCs, color PPCs, digital duplicators, facsimile machines, analog PPCs, diazo copiers, scanners, MFPs(multifunctional printers), laser printers and software Network System Solution Business Personal computers, PC servers, network systems and network related software Industry Business Thermal media, optical equipments, semiconductors, electronic component and measuring equipments Other Business Optical discs and digital camera
A3 3. CONSOLIDATED SALES BY PREVIOUS PRODUCT CATEGORY (FOR REFERENCE)
(Three months ended December 31, 2005 and 2004) (Millions of yen) - ------------------------------------------------------------------------------------------------------------------------------ Three months ended Three months ended Change excluding December 31, 2005 December 31, 2004 Change % exchange impact % - ------------------------------------------------------------------------------------------------------------------------------ [Office Equipment] Imaging Solutions: Digital Imaging Systems 140,060 140,909 -849 -0.6 -6,291 -4.5 Percentage of net sales (%) 29.4 31.8 Domestic 54,789 56,640 -1,851 -3.3 -1,851 -3.3 Overseas 85,271 84,269 1,002 1.2 -4,440 -5.3 Other Imaging Systems 38,019 37,408 611 1.6 -469 -1.3 Percentage of net sales (%) 8.0 8.4 Domestic 15,277 15,470 -193 -1.2 -193 -1.2 Overseas 22,742 21,938 804 3.7 -276 -1.3 Total Imaging Solutions 178,079 178,317 -238 -0.1 -6,760 -3.8 Percentage of net sales (%) 37.4 40.2 Domestic 70,066 72,110 -2,044 -2.8 -2,044 -2.8 Overseas 108,013 106,207 1,806 1.7 -4,716 -4.4 - ------------------------------------------------------------------------------------------------------------------------------ Network Input/Output Systems: Printing Systems 200,082 169,281 30,801 18.2 24,494 14.5 Percentage of net sales (%) 42.1 38.1 Domestic 76,198 73,923 2,275 3.1 2,275 3.1 Overseas 123,884 95,358 28,526 29.9 22,219 23.3 Other Input/Output Systems 2,020 2,043 -23 -1.1 -41 -2.0 Percentage of net sales (%) 0.4 0.5 Domestic 768 431 337 78.2 337 78.2 Overseas 1,252 1,612 -360 -22.3 -378 -23.4 Total Network Input/Output Systems 202,102 171,324 30,778 18.0 24,453 14.3 Percentage of net sales (%) 42.5 38.6 Domestic 76,966 74,354 2,612 3.5 2,612 3.5 Overseas 125,136 96,970 28,166 29.0 21,841 22.5 - ------------------------------------------------------------------------------------------------------------------------------ Network System Solutions 42,305 43,531 -1,226 -2.8 -1,321 -3.0 Percentage of net sales (%) 8.9 9.8 Domestic 39,922 41,824 -1,902 -4.5 -1,902 -4.5 Overseas 2,383 1,707 676 39.6 581 34.0 - ------------------------------------------------------------------------------------------------------------------------------ Office Equipment Total 422,486 393,172 29,314 7.5 16,372 4.2 Percentage of net sales (%) 88.8 88.6 Domestic 186,954 188,288 -1,334 -0.7 -1,334 -0.7 Overseas 235,532 204,884 30,648 15.0 17,706 8.6 The Americas 97,074 78,056 19,018 24.4 9,727 12.5 Europe 113,323 105,862 7,461 7.0 5,346 5.0 Other 25,135 20,966 4,169 19.9 2,633 12.6 - ------------------------------------------------------------------------------------------------------------------------------ [Other Businesses] Other Businesses 53,284 50,627 2,657 5.2 2,230 4.4 Percentage of net sales (%) 11.2 11.4 Domestic 43,931 43,033 898 2.1 898 2.1 Overseas 9,353 7,594 1,759 23.2 1,332 17.5 The Americas 1,102 190 912 480.0 784 412.6 Europe 1,786 1,748 38 2.2 14 0.8 Other 6,465 5,656 809 14.3 534 9.4 - ------------------------------------------------------------------------------------------------------------------------------ Grand Total 475,770 443,799 31,971 7.2 18,602 4.2 Percentage of net sales (%) 100.0 100.0 Domestic 230,885 231,321 -436 -0.2 -436 -0.2 Percentage of net sales (%) 48.5 52.1 Overseas 244,885 212,478 32,407 15.3 19,038 9.0 Percentage of net sales (%) 51.5 47.9 The Americas 98,176 78,246 19,930 25.5 10,511 13.4 Percentage of net sales (%) 20.6 17.6 Europe 115,109 107,610 7,499 7.0 5,360 5.0 Percentage of net sales (%) 24.2 24.2 Other 31,600 26,622 4,978 18.7 3,167 11.9 Percentage of net sales (%) 6.7 6.1 - ------------------------------------------------------------------------------------------------------------------------------ Reference: Exchange rate US$ 1 Yen 117.24 Yen 106.01 Yen 11.23 EURO 1 Yen 139.41 Yen 137.16 Yen 2.25
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
A4
(Nine months ended December 31, 2005 and 2004 and Year ended March 31, 2005) (Millions of yen) - --------------------------------------------------------------------------------------------------------------------------------- Nine months Nine months ended ended Year ended December December Change excluding March 31, 31, 2005 31, 2004 Change % exchange impact % 2005 - --------------------------------------------------------------------------------------------------------------------------------- [Office Equipment] Imaging Solutions: Digital Imaging Systems 416,289 416,440 -151 -0.0 -6,460 -1.6 559,023 Percentage of net sales (%) 29.8 31.6 30.8 Domestic 166,198 170,564 -4,366 -2.6 -4,366 -2.6 231,526 Overseas 250,091 245,876 4,215 1.7 -2,094 -0.9 327,497 Other Imaging Systems 113,573 118,482 -4,909 -4.1 -6,387 -5.4 156,074 Percentage of net sales (%) 8.1 8.9 8.6 Domestic 45,434 46,382 -948 -2.0 -948 -2.0 59,371 Overseas 68,139 72,100 -3,961 -5.5 -5,439 -7.5 96,703 Total Imaging Solutions 529,862 534,922 -5,060 -0.9 -12,847 -2.4 715,097 Percentage of net sales (%) 37.9 40.5 39.4 Domestic 211,632 216,946 -5,314 -2.4 -5,314 -2.4 290,897 Overseas 318,230 317,976 254 0.1 -7,533 -2.4 424,200 - --------------------------------------------------------------------------------------------------------------------------------- Network Input/Output Systems: Printing Systems 561,811 470,624 91,187 19.4 82,777 17.6 655,328 Percentage of net sales (%) 40.2 35.7 36.1 Domestic 229,175 201,898 27,277 13.5 27,277 13.5 283,141 Overseas 332,636 268,726 63,910 23.8 55,500 20.7 372,187 Other Input/Output Systems 7,862 11,022 -3,160 -28.7 -3,191 -29.0 15,508 Percentage of net sales (%) 0.5 0.8 0.9 Domestic 2,110 1,921 189 9.8 189 9.8 3,247 Overseas 5,752 9,101 -3,349 -36.8 -3,380 -37.1 12,261 Total Network Input/Output Systems 569,673 481,646 88,027 18.3 79,586 16.5 670,836 Percentage of net sales (%) 40.7 36.5 37.0 Domestic 231,285 203,819 27,466 13.5 27,466 13.5 286,388 Overseas 338,388 277,827 60,561 21.8 52,120 18.8 384,448 - --------------------------------------------------------------------------------------------------------------------------------- Network System Solutions 138,656 142,569 -3,913 -2.7 -4,051 -2.8 205,895 Percentage of net sales (%) 9.9 10.8 11.3 Domestic 132,106 137,939 -5,833 -4.2 -5,833 -4.2 199,070 Overseas 6,550 4,630 1,920 41.5 1,782 38.5 6,825 - --------------------------------------------------------------------------------------------------------------------------------- Office Equipment Total 1,238,191 1,159,137 79,054 6.8 62,688 5.4 1,591,828 Percentage of net sales (%) 88.5 87.8 87.7 Domestic 575,023 558,704 16,319 2.9 16,319 2.9 776,355 Overseas 663,168 600,433 62,735 10.4 46,369 7.7 815,473 The Americas 278,300 239,000 39,300 16.4 30,679 12.8 324,853 Europe 312,333 297,051 15,282 5.1 9,871 3.3 403,574 Other 72,535 64,382 8,153 12.7 5,819 9.0 87,046 - --------------------------------------------------------------------------------------------------------------------------------- [Other Businesses] Other Businesses 160,599 160,665 -66 -0.0 -564 -0.4 222,280 Percentage of net sales (%) 11.5 12.2 12.3 Domestic 136,779 141,793 -5,014 -3.5 -5,014 -3.5 196,620 Overseas 23,820 18,872 4,948 26.2 4,450 23.6 25,660 The Americas 3,791 576 3,215 558.2 3,097 537.7 744 Europe 4,175 3,546 629 17.7 569 16.0 5,332 Other 15,854 14,750 1,104 7.5 784 5.3 19,584 - --------------------------------------------------------------------------------------------------------------------------------- Grand Total 1,398,790 1,319,802 78,988 6.0 62,124 4.7 1,814,108 Percentage of net sales (%) 100.0 100.0 100.0 Domestic 711,802 700,497 11,305 1.6 11,305 1.6 972,975 Percentage of net sales (%) 50.9 53.1 53.6 Overseas 686,988 619,305 67,683 10.9 50,819 8.2 841,133 Percentage of net sales (%) 49.1 46.9 46.4 The Americas 282,091 239,576 42,515 17.7 33,776 14.1 325,597 Percentage of net sales (%) 20.2 18.2 17.9 Europe 316,508 300,597 15,911 5.3 10,440 3.5 408,906 Percentage of net sales (%) 22.6 22.8 22.5 Other 88,389 79,132 9,257 11.7 6,603 8.3 106,630 Percentage of net sales (%) 6.3 5.9 6.0 - --------------------------------------------------------------------------------------------------------------------------------- Reference: Exchange rate US$ 1 Yen 112.04 Yen 108.55 Yen 3.49 Yen 107.58 EURO 1 Yen 136.92 Yen 134.60 Yen 2.32 Yen 135.25
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
A5 4. FORECAST OF CONSOLIDATED PERFORMANCE
(Billions of yen) - --------------------------------------------------------------------------------------------------------------------------- Half year ended Three months ended Three months ending Year ending Sept. 30, 2005 Change Dec. 31, 2005 Change Mar. 31, 2006 Change Mar. 31, 2006 Change Results % Results % Forecast % Forecast % - --------------------------------------------------------------------------------------------------------------------------- Net sales 923.0 5.4 475.7 7.2 511.2 3.4 1,910.0 5.3 Gross profit 388.2 6.7 201.1 4.7 212.5 7.0 802.0 6.3 Operating income 66.9 15.8 37.0 -4.2 49.0 25.5 153.0 12.9 Income before income taxes 69.4 15.6 38.7 11.7 49.3 21.5 157.5 16.3 Net income 42.8 19.7 23.0 3.5 31.1 24.0 97.0 16.7 - -------------------------------------------------------------------------------------------------------------------------- Net income per share (yen) 58.40 -- 31.34 -- 42.36 -- 132.10 -- - -------------------------------------------------------------------------------------------------------------------------- Capital expenditure 58.1 -- 21.2 -- 30.5 -- 110.0 -- Depreciation for tangible fixed assets 31.1 -- 17.6 -- 18.2 -- 67.0 -- R&D expenditure 54.9 -- 27.2 -- 33.8 -- 116.0 -- - -------------------------------------------------------------------------------------------------------------------------- Exchange rate (Yen/US$) 109.42 -- 117.24 -- 110.00 -- 111.52 -- Exchange rate (Yen/EURO) 135.67 -- 139.41 -- 135.00 -- 136.44 -- - --------------------------------------------------------------------------------------------------------------------------
5. FORECAST OF CONSOLIDATED SALES BY PRODUCT CATEGORY
(Billions of yen) - ----------------------------------------------------------------------------------------------------------------------- Three months ending March 31, 2006 Year ending March 31, 2006 ---------------------------------- -------------------------- Change Change Change Change Forecast % Forecast(*) % Forecast % Forecast(*) % - ----------------------------------------------------------------------------------------------------------------------- [Office Solution Business] Imaging Solution Business 373.6 5.2 371.1 4.5 1,433.9 7.6 1,415.6 6.3 Domestic 162.2 5.9 162.2 5.9 594.7 5.4 594.7 5.4 Overseas 211.3 4.6 208.8 3.4 839.1 9.2 820.9 6.9 Network System Solution Business 64.6 4.7 64.6 4.7 198.5 -0.3 198.3 -0.4 Domestic 62.2 4.6 62.2 4.6 189.5 -1.4 189.5 -1.4 Overseas 2.4 9.3 2.4 9.3 8.9 31.1 8.8 29.1 Office Solution Business Total 438.2 5.1 435.7 4.5 1,632.4 6.6 1,614.0 5.4 Domestic 224.4 5.6 224.4 5.6 784.3 3.7 784.3 3.7 Overseas 213.7 4.7 211.2 3.5 848.1 9.4 829.7 7.1 The Americas 90.1 8.7 85.8 3.5 358.4 14.8 345.8 10.8 Europe 103.4 1.4 105.2 3.1 403.7 4.7 400.3 3.8 Other 20.2 5.0 20.2 5.0 85.9 11.5 83.5 8.4 - ---------------------------------------------------------------------------------------------------------------------- [Industry Business] Industry Business 31.6 -8.6 31.5 -8.8 119.7 0.3 119.1 -0.2 Domestic 19.0 -22.1 19.0 -22.1 72.7 -10.0 72.7 -10.0 Overseas 12.6 24.1 12.5 23.1 47.0 21.9 46.3 20.2 The Americas 4.0 54.6 3.8 46.9 16.1 59.6 15.5 53.9 Europe 4.5 5.9 4.6 8.2 16.0 4.6 15.9 4.1 Other 4.1 23.7 4.1 23.7 14.8 13.1 14.8 13.2 - ---------------------------------------------------------------------------------------------------------------------- [Other Business] Other Business 41.4 -3.5 41.3 -3.6 157.7 -3.4 157.3 -3.6 Domestic 34.7 -1.9 34.7 -1.9 132.9 -2.0 132.9 -2.0 Overseas 6.6 -11.1 6.6 -11.3 24.8 -10.0 24.4 -11.6 The Americas 0.1 -81.2 0.1 -81.2 1.7 -48.2 1.6 -48.9 Europe 3.1 50.5 3.1 50.5 7.6 -2.3 7.6 -3.1 Other 3.4 -29.5 3.4 -29.9 15.4 -6.1 15.0 -8.1 - ---------------------------------------------------------------------------------------------------------------------- Grand Total 511.2 3.4 508.5 2.9 1,910.0 5.3 1,890.5 4.2 Domestic 278.1 2.1 278.1 2.1 990.0 1.7 990.0 1.7 Overseas 233.0 5.0 230.3 3.9 920.0 9.4 900.5 7.1 The Americas 94.2 9.5 89.7 4.3 376.2 15.6 363.0 11.5 Europe 111.0 2.5 112.9 4.2 427.5 4.5 423.9 3.7 Other 27.8 1.2 27.7 1.1 116.2 9.0 113.5 6.5 ---------------------------------------------------------------------------------------------------------------------
* Excluding foreign exchange impact A6 -----END PRIVACY-ENHANCED MESSAGE-----