-----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, IItXYiiDdoX+OZreGAP/QNcuUw4QWFDdyb50zgXZBZWEntvra+dt0slTnQb3RcOK FWI/xXMzVPoAwobAP3iI2A== 0000317891-08-000025.txt : 20080725 0000317891-08-000025.hdr.sgml : 20080725 20080725060544 ACCESSION NUMBER: 0000317891-08-000025 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20080725 FILED AS OF DATE: 20080725 DATE AS OF CHANGE: 20080725 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: 08969475 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 r6k080725.txt 1ST QUARTER RESULTS 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 July 2008 Commission File Number 2 - 68279 RICOH COMPANY, LTD. ----------------------------------------------- (Translation of Registrant's name into English) 13-1, Ginza 8-Chome, Chuo-ku, Tokyo 104-8222, Japan --------------------------------------------------- (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 Director, Chief Financial Officer Corporate Executive Vice President July 25, 2008 - -------------------------------------------------------------------------------- RICOH July 25, 2008 QUARTERLY REPORT First Quarter ended June 30, 2008 (Results for the Period from April 1, 2008 to June 30, 2008) PERFORMANCE OUTLINE (CONSOLIDATED) (Billions of yen)
Three months ended Three months ended Year ending June 30, 2008 June 30, 2007 March 31, 2009 Results Results Change Forecast Change - ----------------------------------------------------------------------------------------------------- ---------------------- Domestic sales 233.8 244.7 -4.4% 1,038.0 2.2% Overseas sales 287.7 285.3 0.8% 1,222.0 1.5% Net sales 521.5 530.1 -1.6% 2,260.0 1.8% Gross profit 228.3 228.7 -0.2% 932.0 0.5% Operating income 39.7 46.6 -14.7% 180.0 -0.8% Income before income taxes 43.7 53.2 -17.9% 176.0 0.8% Net income 25.7 33.8 -24.0% 108.0 1.4% - ----------------------------------------------------------------------------------------------------- ---------------------- Exchange rate (Yen/US$) 104.66 120.77 -16.11 101.17 -13.23 Exchange rate (Yen/EURO) 163.48 162.72 0.76 160.87 -0.82 - ----------------------------------------------------------------------------------------------------- ---------------------- Net income per share-basic (yen) 35.71 46.38 -10.67 149.81 3.77 Net income per share-diluted (yen) 34.75 45.15 -10.40 145.78 3.63 - ----------------------------------------------------------------------------------------------------- ---------------------- Cash flows from operating activities 10.2 21.4 -11.1 -- -- Cash flows from investing activities -30.7 -107.2 76.5 -- -- Cash flows from financing activities 18.0 -2.8 20.9 -- -- Cash and cash equivalents at end of period 174.2 171.6 2.6 -- -- - ----------------------------------------------------------------------------------------------------- ---------------------- Capital expenditures 20.4 17.1 3.3 90.0 4.7 Depreciation for tangible fixed assets 17.7 16.8 0.8 75.0 2.2 R&D expenditures 31.7 27.2 4.5 130.0 3.9 - ----------------------------------------------------------------------------------------------------- ----------------------
June 30, 2008 March 31, 2008 Change - ----------------------------------------------------------------------------------------------------- Total assets 2,304.7 2,214.3 90.4 Shareholders' investment 1,123.4 1,080.1 43.2 Interest-bearing debt 420.1 384.3 35.8 - ----------------------------------------------------------------------------------------------------- Equity ratio (%) 48.7 48.8 -0.1 - ----------------------------------------------------------------------------------------------------- Shareholders' investment per share (yen) 1,558.37 1,498.29 60.08 - -----------------------------------------------------------------------------------------------------
RICOH COMPANY, LTD. * The Company bases the forecast estimates for the fiscal year ending March 31, 2009 above upon information currently available to management, which involves risks and uncertainties that could cause actual results to differ materially from those projected. 1 RICOH COMPANY, LTD. AND CONSOLIDATED SUBSIDIARIES FINANCIAL HIGHLIGHTS FOR THE FIRST QUARTER ENDED JUNE 30, 2008 (U.S. GAAP FINANCIAL INFORMATION) 1. RESULTS FOR THE PERIOD FROM APRIL 1, 2008 TO JUNE 30, 2008 (1) Operating Results (Millions of yen)
Three months ended Three months ended June 30, 2008 June 30, 2007 - --------------------------------------------------------------------------------------------- Net sales 521,574 530,113 (% change from the previous corresponding period) -- 9.4 Operating income 39,750 46,616 (% change from the previous corresponding period) -- 14.7 Income before income taxes 43,735 53,264 (% change from the previous corresponding period) -- 37.6 Net income 25,743 33,855 (% change from the previous corresponding period) -- 16.2 Net income per share-basic (yen) 35.71 46.38 Net income per share-diluted (yen) 34.75 45.15 - ---------------------------------------------------------------------------------------------
(2) Financial Position (Millions of yen)
June 30, 2008 March 31, 2008 - ------------------------------------------------------------------------------------------- Total assets 2,304,769 2,214,368 Shareholders' Investment 1,123,460 1,080,196 Equity ratio (%) 48.7 48.8 Shareholders' investment per share (yen) 1,558.37 1,498.29 - -------------------------------------------------------------------------------------------
2. DIVIDEND INFORMATION
Year ended Year ending March 31, 2008 March 31, 2009 (Results) (Forecast) - --------------------------------------------------------------------------------------------- Cash dividends, applicable to the year (yen) 33.00 37.00 Interim (yen) 16.00 18.00 Year-end (yen) 17.00 19.00 - ---------------------------------------------------------------------------------------------
Notes: Revision of expected dividends during this period: No 3. FORECAST OF OPERATING RESULTS FROM APRIL 1, 2008 TO MARCH 31, 2009 (Millions of yen)
Half year ending Year ending September 30, 2008 March 31, 2009 - ------------------------------------------------------------------------------------------- Net sales 1,088,000 2,260,000 Operating income 72,500 180,000 Income before income taxes 72,000 176,000 Net income 42,800 108,000 Net income per share (yen) 59.37 149.81 - -------------------------------------------------------------------------------------------
Notes: Revision of forecast of consolidated operating results during this period: Yes 4. OTHERS (1) Changes in significant subsidiaries: No (2) Changes in accounting method: Yes * For details see "4.Others"on page 5. (3) Number of common stock outstanding (including treasury stock): As of June 30, 2008 744,912,078 shares As of March 31, 2008 744,912,078 shares
(4) Number of treasury stock: As of June 30, 2008 23,991,766 shares As of March 31, 2008 23,960,828 shares
(5) Average number of common stock: As of June 30, 2008 720,931,645 shares As of March 31, 2008 729,953,364 shares
2 CONSOLIDATED PERFORMANCE 1. OPERATING RESULTS *Overview Consolidated net sales of Ricoh Group for the first quarter of fiscal year 2009 (the three months period from April 1, 2008 to June 30, 2008) decreased by 1.6% as compared to the previous corresponding period, to Yen 521.5 billion. During this quarter, the average yen exchange rates were Yen 104.66 against the U.S. Dollar (up Yen 16.11) and Yen 163.48 against the Euro (down Yen 0.76). Net sales would have increased by 1.9% excluding impact of such foreign currency exchange fluctuation. As for Japan, while sales of PPCs (plain paper copiers), MFPs (multifunctional printers) and laser printers, especially color models, increased, sales of black & white PPCs and MFPs as well as sales in Industrial Products and Other segments decreased. Consequently, overall domestic sales decreased by 4.4% as compared to the previous corresponding period. As for overseas, despite the appreciation of the Yen against the U.S. Dollar, the increase in sales of color MFPs and color laser printers contributed to the favorable performance in each geographic area to strengthen its sales structures and expand printer business operations. Although sales in the Americas decreased by 1.5% (+13.6%, excluding foreign currency exchange fluctuation) due mainly to economic downturns and the appreciation of the Yen against the U.S. Dollar, sales in Europe increased by 1.2% (+1.5%, excluding foreign currency exchange fluctuation) and sales in Other, comprised of China, South East Asia and Oceania, increased by 5.7% (+12.6%, excluding foreign currency exchange fluctuation). As a result, sales in the overseas market increased by 0.8% as compared to the previous corresponding period. Excluding effects of foreign currency fluctuations, net sales in overseas would have increased by 7.3% as compared to the previous corresponding period. Although gross profit decreased by 0.2% as compared to the previous corresponding period, to Yen 228.3 billion due mainly to decrease in sales, the appreciation of the Yen, gross profit as a percentage of net sales increased by 0.6 percentage point as compared to the previous corresponding period, to 43.8%. This increase primarily reflects the increase in sales derived from the value-added high-margin products and cost reduction. Selling, general and administrative expenses increased by 3.6% as compared to the previous corresponding period, to Yen 188.6 billion due to the increase of expenses relating to expanding printer business operations and R&D activity. As a result, operating income decreased by 14.7% as compared to the previous corresponding period, to Yen 39.7 billion. Other (income) expenses, foreign exchange gain decreased as compared to the previous corresponding period. As a result, income before income taxes decreased by 17.9% as compared to the previous corresponding period, to Yen 43.7 billion. As a result, net income decreased by 24.0% as compared to the previous corresponding period, to Yen 25.7 billion. 3 *Conditions by Product Line Imaging & Solutions (Sales up 0.5% to Yen 455.2 billion) - ------------------------------------------------------- Imaging Solutions (Sales down 0.5% to Yen 410.1 billion) ------------------------------------------------------- As for PPCs and MFPs, while sales of color products remained steady, sales of monochrome products decreased significantly as compared to the previous corresponding period. As for printers, sales increased both in Japan and overseas, reflecting Ricoh's continuing effort to strengthen its sales structures and expand printer business operations. Excluding effects of foreign currency fluctuations, net sales in this category would have increased by 3.6% as compared to the previous corresponding period. Network System Solutions (Sales up 11.0% to Yen 45.1 billion) ------------------------------------------------------------ Sales in this category increased by 11.0% as compared to the previous corresponding period, to Yen 45.1 billion. Excluding effects of foreign currency fluctuations, net sales in this category would have increased as compared to the previous corresponding period, to Yen 5.0 billion. Overseas IT service business was changed from Imaging Solutions to Network System Solutions in this period. The effect of the change was Yen 4.6 billion. As a result, sales in the Imaging & Solutions segment increased by 0.5% as compared to the previous corresponding period, to Yen 455.2 billion. Operating income decreased by 8.8% as compared to the previous corresponding period, to Yen 55.4 billion due to the increase of expenses relating to the R&D activity and the expansion of its business operations as well as the appreciation of the Yen against U.S. Dollar. Industrial Products (Sales down 6.9% to Yen 33.0 billion) - --------------------------------------------------------- Sales in the Industrial Products segment decreased by 6.9% as compared to the previous corresponding period, to Yen 33.0 billion. Sales of electronic components in Japan decreased. As a result, operating income in the Industrial Products segment was Yen 1.0 billion (Yen 1.1 billion for the previous corresponding period). Other (Sales down 20.4% to Yen 33.2 billion) - -------------------------------------------- Net sales in the Other segment decreased by 20.4% as compared to the previous corresponding period, to Yen 33.2 billion. Sales of financing business decreased in Japan and sales of digital cameras decreased both in Japan and overseas. As a result operating income in the Other segment was Yen 0.5 billion (Yen 0.8 billion for the previous corresponding period). 2. FINANCIAL POSITION *Assets, Liabilities and Shareholders' Investment For Assets, inventories increased from the end of the previous period. Assets denominated in foreign currency increased due primarily to the foreign currency exchange fluctuations from the end of the previous period. As a result, total assets increased by Yen 90.4 billion, to Yen 2,304.7 billion. For Liabilities, short-term borrowings increased. As a result, total liabilities increased by Yen 46.1 billion, to Yen 1,122.0 billion. Shareholders' investment increased by Yen 43.2 billion, to Yen 1,123.4 billion due primarily to the fact that the decrease by dividends payment was sufficiently offset by the increase by earning profit, and an increase in cumulative translation adjustments for foreign currency exchange fluctuations. *Cash Flows (Three months from April 1, 2008 to June 30, 2008) Net cash provided by operating activities in this period decreased by Yen 11.1 billion as compared to the previous corresponding period, to Yen 10.2 billion. Net income decreased and inventories increased as compared to the previous corresponding period. Net cash used in investing activities in this period decreased by Yen 76.5 billion as compared to the previous corresponding period, to Yen 30.7 billion. Net cash used in investing activities in the previous corresponding period consisted primarily of a payment in connection with the establishment and commencement of a joint venture company with IBM Corporation. As a result, free cash flows generated by operating and investing activities decreased by Yen 65.3 billion as compared to the previous corresponding period, to cash outflows of Yen 20.4 billion. Net cash used in financing activities amounted to Yen 18.0 billion due primarily to an increase in short-term borrowings. As a result, cash and cash equivalents at the end of this first quarter increased by Yen 3.6 billion as compared to the end of the preceding fiscal year, to Yen 174.2 billion. 4 3. FORECAST FOR THE ENTIRE FISCAL YEAR As for the forecast of business results for the first half of fiscal year ending March 31, 2009, we have revised downward our forecast of sales and upward our forecast of income before income taxes from announced in April 2008. This revision reflects the first quarter result and so on. Ricoh has not changed its fiscal forecast for the year ending March 31, 2009 that previously announced in April 2008 although the exchange rate fluctuations would effect its financial statements as with this first quarter results. Ricoh assumes that exchange rates of Yen 100.00 against the U.S. Dollar and of Yen 160.00 against the Euro in and after the second quarter, which were the same forecast that announced in April 2008. The actual exchange rates during the first quarter were incorporated in annual exchange rates assumption. Our performance forecast for fiscal year 2009 is as follows: Exchange Rate Assumptions for the full year ending March 31, 2009 US$ 1 = Yen 101.17 (Yen 114.40 in previous fiscal year) EURO 1 = Yen 160.87 (Yen 161.69 in previous fiscal year) (Billions of yen)
Year ending Year ended March 31, 2009 March 31, 2008 (Forecast) (Results) Change - --------------------------------------------------------------------- Domestic sales 1,038.0 1,016.0 2.2% Overseas sales 1,222.0 1,203.9 1.5% Net sales 2,260.0 2,219.9 1.8% Gross profit 932.0 927.7 0.5% Operating income 180.0 181.5 -0.8% Income before income taxes 176.0 174.6 0.8% Net income 108.0 106.4 1.4% - ---------------------------------------------------------------------
* Ricoh bases the forecast estimates for the year ending March 31, 2009 above upon information currently available to management, which involves risks and uncertainties that could cause actual results to differ materially from those projected. 4. OTHERS (1) Changes in significant subsidiaries: Not applicable (2) Changes in accounting method: Adoption of new accounting standards: i. In September 2006, the FASB issued SFAS No.157, "Fair Value Measurements". The effect that adoption of SFAS 157 has on its consolidated results of operations and financial condition was not material. ii. In September 2006, the FASB issued SFAS 158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans". The effect that adoption of SFAS 158 has on its consolidated results of operations and financial condition was not material. 5 5. CONSOLIDATED FINANCIAL STATEMENTS (1) CONSOLIDATED BALANCE SHEETS
Assets (Millions of yen) - ---------------------------------------------------------------------------------------------------------- June 30, 2008 March 31, 2008 Change - ---------------------------------------------------------------------------------------------------------- Current Assets Cash and time deposits 176,237 172,138 4,099 Trade receivables 718,115 699,043 19,072 Inventories 218,752 192,023 26,729 Other current assets 62,663 60,936 1,727 Total Current Assets 1,175,767 1,124,140 51,627 Fixed Assets Tangible fixed assets 257,307 254,633 2,674 Finance receivables 461,764 445,436 16,328 Other investments 409,931 390,159 19,772 Total Fixed Assets 1,129,002 1,090,228 38,774 - ---------------------------------------------------------------------------------------------------------- Total Assets 2,304,769 2,214,368 90,401 - ---------------------------------------------------------------------------------------------------------- Note: Contents of cash and time deposits; Cash and cash equivalents 174,259 170,607 Time deposits 1,978 1,531
Liabilities and Shareholders' Investment (Millions of yen) - ---------------------------------------------------------------------------------------------------------- June 30, 2008 March 31, 2008 Change - ---------------------------------------------------------------------------------------------------------- Current Liabilities Trade payables 352,009 360,569 -8,560 Short-term borrowings 201,724 158,442 43,282 Other current liabilities 211,061 194,745 16,316 Total Current Liabilities 764,794 713,756 51,038 Fixed Liabilities Long-term indebtedness 218,449 225,930 -7,481 Accrued pension and severance costs 99,109 99,830 -721 Other fixed liabilities 39,729 36,373 3,356 Total Fixed Liabilities 357,287 362,133 -4,846 - ---------------------------------------------------------------------------------------------------------- Total Liabilities 1,122,081 1,075,889 46,192 - ---------------------------------------------------------------------------------------------------------- Minority Interest 59,228 58,283 945 - ---------------------------------------------------------------------------------------------------------- Shareholders' Investment Common stock 135,364 135,364 -- Additional paid-in capital 186,447 186,448 -1 Retained earnings 848,725 835,238 13,487 Accumulated other comprehensive income (loss) -1,188 -31,005 29,817 Treasury stock -45,888 -45,849 -39 Total Shareholders' Investment 1,123,460 1,080,196 43,264 - ---------------------------------------------------------------------------------------------------------- Total Liabilities and Shareholders' Investment 2,304,769 2,214,368 90,401 - ---------------------------------------------------------------------------------------------------------- Note: Other comprehensive income; Net unrealized holding gains on available-for-sale securities 3,619 1,316 2,303 Pension liability adjustments -19,132 -20,788 1,656 Net unrealized gains (losses) on derivative instruments -27 -408 381 Cumulative translation adjustments 14,352 -11,125 25,477 Reference: Exchange rate June 30, 2008 March 31, 2008 US$ 1 Yen 106.42 Yen 100.19 EURO 1 Yen 168.07 Yen 158.19
6 (2) CONSOLIDATED STATEMENTS OF INCOME
(Millions of yen) - ----------------------------------------------------------------------------------------------------------------- Three months ended Three months ended June 30, 2008 June 30, 2007 Change % - ----------------------------------------------------------------------------------------------------------------- Net sales 521,574 530,113 -8,539 -1.6 Cost of sales 293,177 301,343 -8,166 -2.7 Percentage of net sales (%) 56.2 56.8 Gross Profit 228,397 228,770 -373 -0.2 Percentage of net sales (%) 43.8 43.2 Selling, general and administrative expenses 188,647 182,154 6,493 3.6 Percentage of net sales (%) 36.2 34.4 Operating income 39,750 46,616 -6,866 -14.7 Percentage of net sales (%) 7.6 8.8 Other (income) expenses Interest and dividend income 1,288 1,305 -17 -1.3 Percentage of net sales (%) 0.2 0.2 Interest expense 1,069 1,149 -80 -7.0 Percentage of net sales (%) 0.2 0.2 Other, net -3,766 -6,492 2,726 -- Percentage of net sales (%) -0.7 -1.2 Income before income taxes, equity income and minority interests 43,735 53,264 -9,529 -17.9 Percentage of net sales (%) 8.4 10.0 Provision for income taxes 16,825 18,192 -1,367 -7.5 Percentage of net sales (%) 3.2 3.4 Minority interests in earnings of subsidiaries 1,174 1,622 -448 -27.6 Percentage of net sales (%) 0.2 0.3 Equity in earnings of affiliates 7 405 -398 -98.3 Percentage of net sales (%) 0.0 0.1 Net Income 25,743 33,855 -8,112 -24.0 Percentage of net sales (%) 4.9 6.4 - ----------------------------------------------------------------------------------------------------------------- Reference : Exchange rate US$ 1 Yen 104.66 Yen 120.77 EURO 1 Yen 163.48 Yen 162.72
CONSOLIDATED SALES BY PRODUCT CATEGORY (Millions of yen) - ----------------------------------------------------------------------------------------------------------------- Three months ended Three months ended June 30, 2008 June 30, 2007 Change % - ----------------------------------------------------------------------------------------------------------------- [Imaging & Solutions] Imaging Solutions 410,118 412,183 -2,065 -0.5 Percentage of net sales (%) 78.6 77.8 Network System Solutions 45,140 40,655 4,485 11.0 Percentage of net sales (%) 8.7 7.6 Imaging & Solutions Total 455,258 452,838 2,420 0.5 Percentage of net sales (%) 87.3 85.4 - ----------------------------------------------------------------------------------------------------------------- [Industrial Products] Industrial Products 33,095 35,536 -2,441 -6.9 Percentage of net sales (%) 6.3 6.7 - ----------------------------------------------------------------------------------------------------------------- [Other] Other 33,221 41,739 -8,518 -20.4 Percentage of net sales (%) 6.4 7.9 - ----------------------------------------------------------------------------------------------------------------- Grand Total 521,574 530,113 -8,539 -1.6 Percentage of net sales (%) 100.0 100.0 - -----------------------------------------------------------------------------------------------------------------
* Overseas IT service business was changed from Imaging Solutions to Network System Solutions in this period. The effect of the change was Yen 4,692 million.
CONSOLIDATED SALES BY GEOGRAPHIC AREA (Millions of yen) - ----------------------------------------------------------------------------------------------------------------- Three months ended Three months ended June 30, 2008 June 30, 2007 Change % - ----------------------------------------------------------------------------------------------------------------- [Domestic] 233,869 244,734 -10,865 -4.4 Percentage of net sales (%) 44.8 46.2 [Overseas] 287,705 285,379 2,326 0.8 Percentage of net sales (%) 55.2 53.8 The Americas 101,664 103,174 -1,510 -1.5 Percentage of net sales (%) 19.5 19.5 Europe 148,671 146,849 1,822 1.2 Percentage of net sales (%) 28.5 27.7 Other 37,370 35,356 2,014 5.7 Percentage of net sales (%) 7.2 6.6 Grand Total 521,574 530,113 -8,539 -1.6 Percentage of net sales (%) 100.0 100.0 - -----------------------------------------------------------------------------------------------------------------
7 (3) CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions of yen) - -------------------------------------------------------------------------------------------------------------- Three months ended Three months ended June 30, 2008 June 30, 2007 - -------------------------------------------------------------------------------------------------------------- I. Cash Flows from Operating Activities: Net income 25,743 33,855 Adjustments to reconcile net income to net cash provided by operating activities-- Depreciation and amortization 24,312 21,652 Equity in earnings of affiliates, net of dividends received -7 170 Deferred income taxes -2,654 1,236 Loss on disposals and sales of tangible fixed assets 348 126 Pension and severance costs, less payments 695 -3,074 Changes in assets and liabilities-- Decrease in trade receivables 238 4,886 Increase in inventories -18,258 -14,148 Increase in finance receivables -11,369 -4,068 Decrease in trade payables -16,658 -13,989 Increase (Decrease) in accrued income taxes and accrued expenses and other 9,427 -32 Other, net -1,552 -5,189 - -------------------------------------------------------------------------------------------------------------- Net cash provided by operating activities 10,265 21,425 - -------------------------------------------------------------------------------------------------------------- II. Cash Flows from Investing Activities: Proceeds from sales of property, plant and equipment 0 56 Expenditures for property, plant and equipment -20,414 -17,104 Payments for purchases of available-for-sale securities -504 -24,261 Proceeds from sales of available-for-sale securities 224 24,421 Increase in time deposits -377 -131 Other, net -9,631 -90,223 - -------------------------------------------------------------------------------------------------------------- Net cash used in investing activities -30,702 -107,242 - -------------------------------------------------------------------------------------------------------------- III. Cash Flows from Financing Activities: Proceeds from long-term indebtedness 13,777 9,683 Repayment of long-term indebtedness -17,515 -22,562 Increase in short-term borrowings, net 34,484 31,441 Repayment of long-term debt securities -- -10,000 Dividends paid -12,256 -10,950 Payment for purchase of treasury stock -54 -186 Other, net -387 -308 - -------------------------------------------------------------------------------------------------------------- Net cash used in financing activities 18,049 -2,882 - -------------------------------------------------------------------------------------------------------------- IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents 6,040 4,564 - -------------------------------------------------------------------------------------------------------------- V. Net Increase (Decrease) in Cash and Cash Equivalents 3,652 -84,135 - -------------------------------------------------------------------------------------------------------------- VI. Cash and Cash Equivalents at Beginning of Year 170,607 255,737 - -------------------------------------------------------------------------------------------------------------- VII. Cash and Cash Equivalents at End of Period 174,259 171,602 - --------------------------------------------------------------------------------------------------------------
(4) NOTES ON PREMISE GOING CONCERN Not applicable 8 (5) SEGMENT INFORMATION (a) Operating Segments Information (Millions of yen)
Three months ended Three months ended June 30, 2008 June 30, 2007 Change % - ----------------------------------------------------------------------------------------------------------------------- IMAGING & SOLUTIONS: Net sales: Unaffiliated customers 455,258 452,838 2,420 0.5 Intersegment -- -- -- -- Total 455,258 452,838 2,420 0.5 - --------------------------------------------------------------------------------------------------------------------- Operating expenses 399,840 392,081 7,759 2.0 - --------------------------------------------------------------------------------------------------------------------- Operating income 55,418 60,757 -5,339 -8.8 Operating income on sales in Imaging & Solutions (%) 12.2 13.4 - --------------------------------------------------------------------------------------------------------------------- INDUSTRIAL PRODUCTS: Net sales: Unaffiliated customers 33,095 35,536 -2,441 -6.9 Intersegment 1,158 1,119 39 3.5 Total 34,253 36,655 -2,402 -6.6 - --------------------------------------------------------------------------------------------------------------------- Operating expenses 33,247 35,554 -2,307 -6.5 - --------------------------------------------------------------------------------------------------------------------- Operating income 1,006 1,101 -95 -8.6 Operating income on sales in Industrial Products (%) 2.9 3.0 - --------------------------------------------------------------------------------------------------------------------- OTHER: Net sales: Unaffiliated customers 33,221 41,739 -8,518 -20.4 Intersegment -- -- -- -- Total 33,221 41,739 -8,518 -20.4 - --------------------------------------------------------------------------------------------------------------------- Operating expenses 32,708 40,897 -8,189 -20.0 - --------------------------------------------------------------------------------------------------------------------- Operating income 513 842 -329 -39.1 Operating income on sales in Other (%) 1.5 2.0 - --------------------------------------------------------------------------------------------------------------------- CORPORATE AND ELIMINATIONS: Net sales: Intersegment -1,158 -1,119 -39 -- Total -1,158 -1,119 -39 -- - --------------------------------------------------------------------------------------------------------------------- Operating expenses: Intersegment -1,157 -1,117 -40 -- Corporate 17,186 16,082 1,104 -- Total 16,029 14,965 1,064 -- - --------------------------------------------------------------------------------------------------------------------- Operating income -17,187 -16,084 -1,103 -- - --------------------------------------------------------------------------------------------------------------------- CONSOLIDATED: Net sales: Unaffiliated customers 521,574 530,113 -8,539 -1.6 Intersegment -- -- -- -- Total 521,574 530,113 -8,539 -1.6 - --------------------------------------------------------------------------------------------------------------------- Operating expenses 481,824 483,497 -1,673 -0.3 - --------------------------------------------------------------------------------------------------------------------- Operating income 39,750 46,616 -6,866 -14.7 Operating income on consolidated net sales (%) 7.6 8.8 - ---------------------------------------------------------------------------------------------------------------------
9 (b) Geographic Segments Information (Millions of yen)
Three months ended Three months ended June 30, 2008 June 30, 2007 Change % - ----------------------------------------------------------------------------------------------------------------------- JAPAN: Net sales: External customers 241,120 252,126 -11,006 -4.4 Intersegment 123,371 141,627 -18,256 -12.9 Total 364,491 393,753 -29,262 -7.4 - ----------------------------------------------------------------------------------------------------------------------- Operating expenses 338,415 358,680 -20,265 -5.6 - ----------------------------------------------------------------------------------------------------------------------- Operating income 26,076 35,073 -8,997 -25.7 Operating income on sales in Japan (%) 7.2 8.9 - ----------------------------------------------------------------------------------------------------------------------- THE AMERICAS: Net sales: External customers 101,285 102,511 -1,226 -1.2 Intersegment 1,224 829 395 47.6 Total 102,509 103,340 -831 -0.8 - ----------------------------------------------------------------------------------------------------------------------- Operating expenses 103,722 101,504 2,218 2.2 - ----------------------------------------------------------------------------------------------------------------------- Operating income (1,213) 1,836 -3,049 -- Operating income on sales in the Americas (%) -1.2 1.8 - ----------------------------------------------------------------------------------------------------------------------- EUROPE: Net sales: External customers 148,256 146,618 1,638 1.1 Intersegment 723 1,210 -487 -40.2 Total 148,979 147,828 1,151 0.8 - ----------------------------------------------------------------------------------------------------------------------- Operating expenses 137,310 141,063 -3,753 -2.7 - ----------------------------------------------------------------------------------------------------------------------- Operating income 11,669 6,765 4,904 72.5 Operating income on sales in Europe (%) 7.8 4.6 - ----------------------------------------------------------------------------------------------------------------------- OTHER: Net sales: External customers 30,913 28,858 2,055 7.1 Intersegment 43,927 47,426 -3,499 -7.4 Total 74,840 76,284 -1,444 -1.9 - ----------------------------------------------------------------------------------------------------------------------- Operating expenses 70,273 70,614 -341 -0.5 - ----------------------------------------------------------------------------------------------------------------------- Operating income 4,567 5,670 -1,103 -19.5 Operating income on sales in Other (%) 6.1 7.4 - ----------------------------------------------------------------------------------------------------------------------- CORPORATE AND ELIMINATIONS: Net sales: Intersegment -169,245 -191,092 21,847 -- Total -169,245 -191,092 21,847 -- - ----------------------------------------------------------------------------------------------------------------------- Operating expenses -167,896 -188,364 20,468 -- - ----------------------------------------------------------------------------------------------------------------------- Operating income -1,349 -2,728 1,379 -- - ----------------------------------------------------------------------------------------------------------------------- CONSOLIDATED: Net sales: External customers 521,574 530,113 -8,539 -1.6 Intersegment -- -- -- -- Total 521,574 530,113 -8,539 -1.6 - ----------------------------------------------------------------------------------------------------------------------- Operating expenses 481,824 483,497 -1,673 -0.3 - ----------------------------------------------------------------------------------------------------------------------- Operating income 39,750 46,616 -6,866 -14.7 Operating income on consolidated net sales (%) 7.6 8.8 - -----------------------------------------------------------------------------------------------------------------------
(6) NOTES ON SIGNIFICANT CHANGES IN SHAREHOLDERS' INVESTMENT Not applicable 10 -APPENDIX- (THREE MONTHS ENDED JUNE 30, 2008) 1. CONSOLIDATED SALES BY PRODUCT CATEGORY (Millions of yen)
Three months ended Three months ended Change excluding June 30, 2008 June 30, 2007 Change % exchange impact % - --------------------------------------------------------------------------------------------------------------------------------- [Imaging & Solutions] Imaging Solutions 410,118 412,183 -2,065 -0.5 14,884 3.6 Percentage of net sales (%) 78.6 77.8 Domestic 148,069 151,673 -3,604 -2.4 -3,604 -2.4 Overseas 262,049 260,510 1,539 0.6 18,488 7.1 Network System Solutions 45,140 40,655 4,485 11.0 5,009 12.3 Percentage of net sales (%) 8.7 7.6 Domestic 37,337 38,038 -701 -1.8 -701 -1.8 Overseas 7,803 2,617 5,186 198.2 5,710 218.2 Imaging & Solutions Total 455,258 452,838 2,420 0.5 19,893 4.4 Percentage of net sales (%) 87.3 85.4 Domestic 185,406 189,711 -4,305 -2.3 -4,305 -2.3 Overseas 269,852 263,127 6,725 2.6 24,198 9.2 The Americas 97,360 98,657 -1,297 -1.3 13,668 13.9 Europe 141,904 138,259 3,645 2.6 4,037 2.9 Other 30,588 26,211 4,377 16.7 6,493 24.8 - ---------------------------------------------------------------------------------------------------------------------------------- [Industrial Products] Industrial Products 33,095 35,536 -2,441 -6.9 -1,846 -5.2 Percentage of net sales (%) 6.3 6.7 Domestic 18,518 20,660 -2,142 -10.4 -2,142 -10.4 Overseas 14,577 14,876 -299 -2.0 296 2.0 The Americas 3,879 3,494 385 11.0 946 27.1 Europe 5,755 5,968 -213 -3.6 -234 -3.9 Other 4,943 5,414 -471 -8.7 -416 -7.7 - ---------------------------------------------------------------------------------------------------------------------------------- [Other] Other 33,221 41,739 -8,518 -20.4 -8,177 -19.6 Percentage of net sales (%) 6.4 7.9 Domestic 29,945 34,363 -4,418 -12.9 -4,418 -12.9 Overseas 3,276 7,376 -4,100 -55.6 -3,759 -51.0 The Americas 425 1,023 -598 -58.5 -537 -52.5 Europe 1,012 2,622 -1,610 -61.4 -1,610 -61.4 Other 1,839 3,731 -1,892 -50.7 -1,612 -43.2 - ---------------------------------------------------------------------------------------------------------------------------------- Grand Total 521,574 530,113 -8,539 -1.6 9,870 1.9 Percentage of net sales (%) 100.0 100.0 Domestic 233,869 244,734 -10,865 -4.4 -10,865 -4.4 Percentage of net sales (%) 44.8 46.2 Overseas 287,705 285,379 2,326 0.8 20,735 7.3 Percentage of net sales (%) 55.2 53.8 The Americas 101,664 103,174 -1,510 -1.5 14,077 13.6 Percentage of net sales (%) 19.5 19.5 Europe 148,671 146,849 1,822 1.2 2,193 1.5 Percentage of net sales (%) 28.5 27.7 Other 37,370 35,356 2,014 5.7 4,465 12.6 Percentage of net sales (%) 7.2 6.6 - --------------------------------------------------------------------------------------------------------------------------------- Reference: Exchange rate US$ 1 Yen 104.66 Yen 120.77 Yen -16.11 EURO 1 Yen 163.48 Yen 162.72 Yen 0.76
*Each category includes the following product line: Imaging Solutions Digital PPCs, color PPCs, digital duplicators, facsimile machines, analog PPCs, diazo copiers, scanners, MFPs(multifunctional printers), laser printers and software Network System Solutions Personal computers, servers, network systems and network related software Industrial Products Thermal media, optical equipment, semiconductor devices, electronic components and measuring equipment Other Optical discs and digital cameras * Overseas IT service business was changed from Imaging Solutions to Network System Solutions in this period. The effect of the change was Yen 4,692 million. A1 2. FORECAST OF CONSOLIDATED PERFORMANCE
(Billions of yen) - ------------------------------------------------------------------------------------------------------------------------------------ Three months ended Three months ending Half year ending Year ending June 30, 2008 Change Sept. 30, 2008 Change Sept. 30, 2008 Change March 31, 2009 Change Results % Forecast % Forecast % Forecast % - ------------------------------------------------------------------------------------------------------------------------------------ Net sales 521.5 -1.6 566.4 1.5 1,088.0 -0.0 2,260.0 1.8 Gross profit 228.3 -0.2 221.1 -0.6 449.5 -0.4 932.0 0.5 Operating income 39.7 -14.7 32.7 -13.7 72.5 -14.3 180.0 -0.8 Income before income taxes 43.7 -17.9 28.2 -11.1 72.0 -15.3 176.0 0.8 Net income 25.7 -24.0 17.0 -11.6 42.8 -19.5 108.0 1.4 - ------------------------------------------------------------------------------------------------------------------------------------ Net income per share-basic (yen) 35.71 -- 23.66 -- 59.37 -- 149.81 -- Net income per share-diluted (yen) 34.75 -- 23.02 -- 57.77 -- 145.78 -- - ------------------------------------------------------------------------------------------------------------------------------------ Capital expenditures 20.4 -- 25.0 -- 45.5 -- 90.0 -- Depreciation for tangible fixed assets 17.7 -- 18.7 -- 36.5 -- 75.0 -- R&D expenditures 31.7 -- 32.2 -- 64.0 -- 130.0 -- - ------------------------------------------------------------------------------------------------------------------------------------ Exchange rate (Yen/US$) 104.66 -- 100.00 -- 102.33 -- 101.17 -- Exchange rate (Yen/EURO) 163.48 -- 160.00 -- 161.74 -- 160.87 -- - ------------------------------------------------------------------------------------------------------------------------------------
3. FORECAST OF CONSOLIDATED SALES BY PRODUCT CATEGORY
(Billions of yen) - --------------------------------------------------------------------------------------------------------- Half year ending September 30, 2008 Year ending March 31, 2009 ----------------------------------- -------------------------- Change Change Change Change Forecast % Forecast(*) % Forecast % Forecast(*) % - --------------------------------------------------------------------------------------------------------- [Imaging & Solutions] Imaging Solutions 839.5 1.5 875.8 5.9 1,748.5 2.3 1,804.6 5.6 Domestic 305.3 2.9 305.3 2.9 636.7 4.6 636.7 4.6 Overseas 534.1 0.6 570.4 7.5 1,111.7 1.0 1,167.8 6.1 Network System Solutions 108.3 11.4 109.5 12.7 228.3 14.1 230.1 15.0 Domestic 93.1 1.7 93.1 1.7 195.9 4.2 195.9 4.2 Overseas 15.1 171.2 16.4 193.0 32.3 171.3 34.2 186.6 Imaging & Solutions Total 947.8 2.5 985.4 6.6 1,976.8 3.5 2,034.8 6.6 Domestic 398.5 2.6 398.5 2.6 832.7 4.5 832.7 4.5 Overseas 549.3 2.4 586.9 9.4 1,144.1 2.8 1,202.1 8.1 The Americas 198.2 -3.9 231.4 12.2 400.4 -3.8 452.2 8.6 Europe 284.3 4.7 286.5 5.5 603.5 5.6 607.5 6.3 Other 66.7 14.3 68.8 17.9 140.1 12.5 142.2 14.2 - --------------------------------------------------------------------------------------------------------- [Industrial Products] Industrial Products 67.1 -13.3 68.4 -11.6 137.0 -5.0 139.0 -3.6 Domestic 37.7 -14.8 37.7 -14.8 76.1 -2.7 76.1 -2.7 Overseas 29.4 -11.3 30.7 -7.4 60.9 -7.8 62.9 -4.8 The Americas 7.6 -4.2 8.8 10.3 14.9 -7.3 16.8 4.2 Europe 10.8 -5.8 10.9 -5.1 21.3 -4.8 21.4 -4.4 Other 10.9 -20.0 10.9 -19.6 24.6 -10.5 24.6 -10.3 - --------------------------------------------------------------------------------------------------------- [Other] Other 72.9 -15.5 73.2 -15.1 146.0 -12.1 146.3 -11.9 Domestic 64.7 -10.0 64.7 -10.0 129.1 -8.3 129.1 -8.3 Overseas 8.1 -43.1 8.5 -40.7 16.8 -33.3 17.2 -32.0 The Americas 0.8 -40.9 0.8 -36.5 1.6 -25.9 1.6 -23.2 Europe 3.1 -48.0 3.1 -48.0 6.8 -26.9 6.8 -26.9 Other 4.2 -39.3 4.5 -35.3 8.4 -38.9 8.7 -36.8 - --------------------------------------------------------------------------------------------------------- Grand Total 1,088.0 -0.0 1,127.2 3.6 2,260.0 1.8 2,320.3 4.5 Domestic 501.0 -0.7 501.0 -0.7 1,038.0 2.2 1,038.0 2.2 Overseas 587.0 0.5 626.2 7.2 1,222.0 1.5 1,282.3 6.5 The Americas 206.7 -4.1 241.1 11.8 417.0 -4.1 470.7 8.3 Europe 298.2 3.2 300.6 4.0 631.6 4.7 635.8 5.4 Other 81.9 3.6 84.4 6.7 173.2 4.4 175.7 5.9 - ---------------------------------------------------------------------------------------------------------
* Excluding foreign exchange impact A2 -----END PRIVACY-ENHANCED MESSAGE-----