6-K 1 335598aedg1.txt FLASH REPORT FOR THE FISCAL YEAR ENDED MARCH 31, 2012 FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 REPORT OF FOREIGN PRIVATE ISSUER Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of April 2012 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 Representative Director, Deputy President and Chief Financial Officer April 26, 2012 RICOH April 26, 2012 FLASH REPORT Year ended March 31, 2012 (Results for the Period from April 1, 2011 to March 31, 2012) Three months ended March 31, 2012 (Results for the Period from January 1, 2012 to March 31, 2012) PERFORMANCE OUTLINE (CONSOLIDATED) (1) Year ended March 31, 2011, 2012 and Year ending March 31, 2013 (Forecast)
(Billions of yen) ------------------------------------------------------------------------------------------------------- ---------------------- Year ended Year ended Year ending March 31, 2011 March 31, 2012 March 31, 2013 (Results) (Results) Change (Forecast) Change ------------------------------------------------------------------------------------------------------- ---------------------- Domestic sales 875.8 886.4 1.2% 901.0 1.6% Overseas sales 1,065.5 1,017.0 -4.5% 1,019.0 0.2% Net sales 1,941.3 1,903.4 -2.0% 1,920.0 0.9% Gross profit 788.9 752.6 -4.6% 760.0 1.0% Operating income (loss) 58.0 -18.0 -- 70.0 -- Income (loss) before income taxes 44.1 -31.9 -- 62.5 -- Net income (loss) attributable to Ricoh Company, Ltd. 18.6 -44.5 -- 33.0 -- ------------------------------------------------------------------------------------------------------- ---------------------- Exchange rate (Yen/US$) 85.77 79.08 -6.69 75.00 -4.08 Exchange rate (Yen/EURO) 113.28 109.05 -4.23 105.00 -4.05 ------------------------------------------------------------------------------------------------------- ---------------------- Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) 25.68 -61.42 -87.10 45.49 106.91 Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-diluted (yen) 25.15 -61.42 -86.57 45.49 106.91 ------------------------------------------------------------------------------------------------------- ---------------------- Return on equity attributable to Ricoh Company, Ltd.(%) 2.0 -5.1 -7.1 -- -- Income (loss) before income taxes on total assets (%) 1.9 -1.4 -3.3 -- -- Operating income (loss) on net sales (%) 3.0 -0.9 -3.9 3.6 4.5 ------------------------------------------------------------------------------------------------------- ---------------------- Total assets 2,255.5 2,289.3 33.7 -- -- Ricoh Company, Ltd. shareholders' equity 925.2 822.7 -102.5 -- -- Interest-bearing debt 629.6 741.8 112.2 -- -- ------------------------------------------------------------------------------------------------------- ---------------------- Ricoh Company, Ltd. shareholders' equity ratio (%) 41.0 35.9 -5.1 -- -- ------------------------------------------------------------------------------------------------------- ---------------------- Ricoh Company, Ltd. shareholders' equity per share (yen) 1,275.31 1,134.64 -140.67 -- -- ------------------------------------------------------------------------------------------------------- ---------------------- Cash flows from operating activities 128.6 11.2 -117.4 -- -- Cash flows from investing activities -91.9 -112.4 -20.5 -- -- Cash flows from financing activities -92.9 87.8 180.7 -- -- Cash and cash equivalents at end of period 172.2 156.2 -16.0 -- -- ------------------------------------------------------------------------------------------------------- ---------------------- Capital expenditures 66.8 73.2 6.3 83.0 9.7 Depreciation for tangible fixed assets 67.2 64.9 -2.2 65.0 0.1 R&D expenditures 110.5 119.0 8.4 117.0 -2.0 ------------------------------------------------------------------------------------------------------- ---------------------- Number of employees (Japan) (thousand people) 40.1 38.5 -1.6 -- -- Number of employees (Overseas) (thousand people) 68.9 70.7 1.8 -- -- ------------------------------------------------------------------------------------------------------- ----------------------
RICOH COMPANY, LTD. * Ricoh bases the forecast estimates for March 31, 2013 above upon information currently available to management, which involves risks and uncertainties that could cause actual results to differ materially from those projected. * Ricoh has accounted for subsidiaries that changed their fiscal year-ends from December 31 to March 31 as if their fiscal year-ends in prior years were March 31 and has restated prior-year consolidated financial statements. The changes from the previous corresponding period is based on the figures retrospectively adjusted . Please see (8) Changes in Significant Accounting Policies (Consolidated) on page 24. 1 (2) Three months ended March 31, 2011 and 2012
(Billions of yen) --------------------------------------------------------------------------------------------------------------------------------- Three months ended Three months ended March 31, 2011 March 31, 2012 Change --------------------------------------------------------------------------------------------------------------------------------- Domestic sales 225.7 241.3 6.9% Overseas sales 274.0 265.2 -3.2% Net sales 499.8 506.6 1.4% Gross profit 189.2 184.3 -2.6% Operating income 5.6 18.9 235.2% Income before income taxes 3.9 16.6 316.9% Net income (loss) attributable to Ricoh Company, Ltd. -2.5 8.6 -- --------------------------------------------------------------------------------------------------------------------------------- Exchange rate (Yen/US$) 82.32 79.32 -3.00 Exchange rate (Yen/EURO) 112.51 104.04 -8.47 --------------------------------------------------------------------------------------------------------------------------------- Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) -3.49 11.89 15.38 Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-diluted (yen) -3.49 11.89 15.38 --------------------------------------------------------------------------------------------------------------------------------- Return on equity attributable to Ricoh Company, Ltd.(%) -0.3 1.0 1.3 Income before income taxes on total assets (%) 0.2 0.7 0.5 Operating income on net sales (%) 1.1 3.7 2.6 --------------------------------------------------------------------------------------------------------------------------------- Capital expenditures 18.2 19.3 1.1 Depreciation for tangible fixed assets 17.0 18.1 1.0 R&D expenditures 29.2 29.7 0.5 ---------------------------------------------------------------------------------------------------------------------------------
2 RICOH COMPANY, LTD. AND CONSOLIDATED SUBSIDIARIES FLASH REPORT (CONSOLIDATED RESULTS FOR THE YEAR ENDED MARCH 31, 2012) 1. RESULTS FOR THE PERIOD FROM APRIL 1, 2011 TO MARCH 31, 2012 (1) Operating Results (Millions of yen) ------------------------------------------------------------------------------- Year ended Year ended March 31, 2011 March 31, 2012 ------------------------------------------------------------------------------- Net sales 1,941,336 1,903,477 (% change from the previous corresponding period) -3.7 -2.0 Operating income (loss) 58,071 -18,068 (% change from the previous corresponding period) -11.9 -- Income (loss) before income taxes 44,169 -31,937 (% change from the previous corresponding period) -22.6 -- Net income (loss) attributable to Ricoh Company, Ltd. 18,630 -44,560 (% change from the previous corresponding period) -31.1 -- Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) 25.68 -61.42 Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-diluted (yen) 25.15 -61.42 ------------------------------------------------------------------------------- Return on equity attributable to Ricoh Company, Ltd.(%) 2.0 -5.1 Income (loss) before income taxes on total assets (%) 2.0 -1.4 Operating income (loss) on net sales (%) 3.0 -0.9 ------------------------------------------------------------------------------- Notes: i. Comprehensive loss: Yen 74,059 million ( - %) (Yen 16,311 million ( - %) in loss in previous fiscal year) ii. Equity in income of affiliates: Yen 39 million (Yen 22 million in loss in previous fiscal year) (2) Financial Position (Millions of yen) ------------------------------------------------------------------------------- March 31, 2011 March 31, 2012 ------------------------------------------------------------------------------- Total assets 2,255,564 2,289,358 Total equity 978,130 879,018 Ricoh Company, Ltd. shareholders' equity 925,243 822,704 Ricoh Company, Ltd. shareholders' equity ratio (%) 41.0 35.9 Ricoh Company, Ltd. shareholders' equity per share (yen) 1,275.31 1,134.64 ------------------------------------------------------------------------------- (3) Cash Flows (Millions of yen) ------------------------------------------------------------------------------- Year ended Year ended March 31, 2011 March 31, 2012 ------------------------------------------------------------------------------- Cash flows from operating activities 128,636 11,206 Cash flows from investing activities -91,906 -112,443 Cash flows from financing activities -92,963 87,823 Cash and cash equivalents at end of period 172,221 156,210 ------------------------------------------------------------------------------- 2. DIVIDEND INFORMATION
(Millions of yen) ------------------------------------------------------------------------------------------ Year ended Year ended Year ending March 31, 2011 March 31, 2012 March 31, 2013 ------------------------------------------------------------------------------------------ Cash dividends, applicable to the year (yen) 33.00 25.00 25.00 Half year (yen) 16.50 16.50 12.50 Year-end (yen) 16.50 8.50 12.50 Total annual dividends (millions of yen) 23,943 18,133 Payout Ratio (%) 128.5 -- 55.0 Dividends on shareholders' equity (%) 2.5 2.1 ------------------------------------------------------------------------------------------
3. FORECAST OF OPERATING RESULTS FROM APRIL 1, 2012 TO MARCH 31, 2013 (Millions of yen) ------------------------------------------------------------------------------- Year ending March 31, 2013 ------------------------------------------------------------------------------- Net sales 1,920,000 Operating income 70,000 Income before income taxes 62,500 Net income attributable to Ricoh Company, Ltd. 33,000 Net income attributable to Ricoh Company, Ltd. shareholders per share (yen) 45.49 ------------------------------------------------------------------------------- 3 4. OTHERS (1) Changes in significant subsidiaries: No (2) Change in accounting method has been made. * Please see (8) Changes in Significant Accounting Policies (Consolidated) on page 24. (3) Number of common stock outstanding (including treasury stock): As of March 31, 2012 744,912,078 shares As of March 31, 2011 744,912,078 shares
(4) Number of treasury stock: As of March 31, 2012 19,831,060 shares As of March 31, 2011 19,409,410 shares
(5) Average number of common stock: As of March 31, 2012 725,483,319 shares As of March 31, 2011 725,554,477 shares
(REFERENCE) NON-CONSOLIDATED INFORMATION 1. RESULTS FOR THE PERIOD FROM APRIL 1, 2011 TO MARCH 31, 2012 (1) Operating Results (Millions of yen) ------------------------------------------------------------------------------- Year ended Year ended March 31, 2011 March 31, 2012 ------------------------------------------------------------------------------- Net sales 842,297 795,471 (% change from the previous corresponding period) -0.8 -5.6 Operating loss -6,397 -31,927 (% change from the previous corresponding period) -- -- Ordinary income (loss) 7,126 -7,402 (% change from the previous corresponding period) -73.5 -- Net income (loss) 9,714 -128,678 (% change from the previous corresponding period) -58.3 -- Net income (loss) per share-basic (yen) 13.39 -177.37 Net income (loss) per share-diluted (yen) 13.07 -- ------------------------------------------------------------------------------- (2) Financial Position (Millions of yen) ------------------------------------------------------------------------------- March 31, 2011 March 31, 2012 ------------------------------------------------------------------------------- Total assets 1,252,421 1,135,182 Net assets 752,137 599,269 Equity ratio (%) 60.1 52.8 Net assets per share (yen) 1,036.71 826.02 ------------------------------------------------------------------------------- * Equity capital March 31, 2012 Yen 599,269 million March 31, 2011 Yen 752,137 million
4 1. PERFORMANCE (1) OPERATING RESULTS *Overview Consolidated net sales of Ricoh Group for the fiscal year 2011 (April 1, 2011 to March 31, 2012) decreased by 2.0% as compared to the previous corresponding period, to Yen 1,903.4 billion. During this period, the average yen exchange rates were Yen 79.08 against the U.S. dollar (up Yen 6.69) and Yen 109.05 against the Euro (up Yen 4.23). Net sales would have increased by 1.2% excluding impact of such foreign currency exchange fluctuation. In Japan, the business environment continued to be severe due to the impact of the Great East Japan Earthquake and the flood in Thailand and also the sharp appreciation of the Yen. Ricoh continued to face the severe business environment. However, signs of improvement had been shown from latter part of the fiscal year 2011,as a result, domestic sales in the Imaging & Solutions and the Other increased, though domestic sales in the Industrial Products decreased from the previous corresponding period. Consequently, overall sales in Japan increased by 1.2% as compared to the previous corresponding period. As for the overseas economy, in the Americas, individual consumption and capital investment are slowly recovering and in Asian countries including China, high growth is ongoing. However, it remained uncertain due to the European debt crisis. Ricoh continued to face the severe business environment due to the appreciation of the Yen. As for overseas sales by region, as compared to the previous corresponding period, sales in the Americas decreased by 9.9% due to foreign currency exchange fluctuation (2.1%, excluding foreign currency exchange fluctuation), sales in Europe, due to the Yen against Euro appreciated, decreased by 1.6% (increased by 2.3%, excluding foreign currency exchange fluctuation), and sales in Other region, which includes China, South East Asia and Oceania, increased by 7.3% (10.7%, excluding foreign currency exchange fluctuation). As a result, sales in the overseas market decreased by 4.5% as compared to the previous corresponding period. Excluding effects of foreign currency fluctuations, sales in overseas would have increased by 1.2% as compared to the previous corresponding period. Gross profit decreased by 4.6% as compared to the previous corresponding period, to Yen 752.6 billion due primarily to decrease in sales and the appreciation of the Yen, despite ongoing cost reduction. Selling, general and administrative expenses increased by 5.4% as compared to the previous corresponding period, to Yen 770.6 billion due primarily to impairment loss of Yen 37.0 billion on goodwill and long-lived assets for Production Printing business as well as restructuring cost of Yen 34.1 billion. As a result, operating income sharply decreased as compared to the previous corresponding period, to Yen 18.0 billion loss (operating income Yen 58.0 billion for the previous corresponding period). As for other (income) expenses, impairment loss on securities is included and foreign exchange loss decreased. Consequently, income before income taxes decreased as compared to the previous corresponding period, to Yen 31.9 billion loss (income before income taxes Yen 44.1 billion for the previous corresponding period). In addition, due to the decrease in corporate tax rate ,deferred tax assets and liabilities have been recalculated. As a result, net income (loss) attributable to Ricoh Company, Ltd. amounted to Yen 44.5 billion loss (net income Yen 18.6 billion for the previous corresponding period). As for comprehensive income, comprehensive loss increased due primarily to net loss attributable to Ricoh Company, Ltd. as well as decrease of pension liability adjustments and cumulative translation adjustments. For Assets, from the end of the previous fiscal year, trade receivables increased in Japan and Europe. In addition, inventories increased due partly to initial stock for launch of new products in new business. As a result, total assets increased by Yen 33.7 billion, to Yen 2,289.3 billion. For Liabilities, the interest-bearing debt increased due primarily to payment for costs in global restructuring program. Consequently, total liabilities increased by Yen 132.9 billion, to Yen 1,410.3 billion. For Total Equity, the change in retained earnings resulted from payment for dividends and net loss attributable to Ricoh Company, Ltd. Accumulated other comprehensive loss increased due primarily to the fluctuation of cumulative translation adjustments reflecting exchange fluctuation from the end of the previous period. As a result, Total Equity decreased by Yen 99.1 billion from the end of the previous fiscal year, to Yen 879.0 billion. A year-end cash dividend of Yen 8.50 per share is proposed due to net loss attributable to Ricoh Company, Ltd. Combined with the interim dividend of Yen 16.50 per share, the total dividend for the fiscal year ended March 31, 2012 will be Yen 25.00 per share. 5 *Consolidated Sales by Product Line Imaging & Solutions (Sales down 2.4% to Yen 1,670.7 billion) ------------------------------------------------------------ Sales in the Imaging & Solutions segment which consists of Imaging Solutions and Network System Solutions decreased by 2.4% from the previous corresponding period, to Yen 1,670.7 billion. Imaging Solutions (Sales down 3.9% to Yen 1,471.8 billion) ---------------------------------------------------------- Sales in this category decreased by 3.9% as compared to the previous corresponding period, to Yen 1,471.8 billion. Sales of color Multi Function Printer (MFP) increased steadily and color production printers growed much, however, sales in this category decreased due to decrease of monochrome products and effect of foreign exchange. Network System Solutions (Sales up 9.7% to Yen 198.9 billion) ------------------------------------------------------------- Sales in this category increased by 9.7% as compared to the previous corresponding period, to Yen 198.9 billion due primarily to increase sales of enterprise system software and IT service mainly in Europe. Industrial Products (Sales down 9.6% to Yen 96.5 billion) --------------------------------------------------------- Sales in the Industrial Products segment decreased by 9.6% as compared to the previous corresponding period, to Yen 96.5 billion. Sales of semiconductor devices and thermal media decreased as compared to the previous corresponding period. Other (Sales up 11.7% to Yen 136.1 billion) ------------------------------------------- Sales in the Other segment increased by 11.7% as compared to the previous corresponding period, to Yen 136.1 billion due primarily to acquisition of PENTAX Imaging Corporation. 6 *Consolidated Sales by Geographic Area Japan (Sales up 1.2% to Yen 886.4 billion) ------------------------------------------ In Japan, the business environment surrounding Ricoh continued to be severe due to a series of adverse events such as negatively affecting the supply chains by the Great East Japan Earthquake and followed by the flood in Thailand, the shortfall crisis in electrical power supply and also the sharp appreciation of the Yen against the U.S. dollar and the Euro. In the Imaging & Solutions segment, Ricoh designed its ability to improve management efficiency and to make prompt decisions in response to the diversifying needs of its customers by building a sales structure based on Ricoh Japan Corporation which was established previous fiscal year. Sales in the Imaging & Solutions segment increased by 2.7% from the previous corresponding period, to Yen 710.9 billion. Sales in the Industrial Products segment decreased by 19.6% as compared to the previous corresponding period, to Yen 52.6 billion. Sales of semiconductor devices and thermal media decreased as compared to the previous corresponding period. Sales in the Other segment increased as compared to the previous corresponding period due primarily to digital cameras by acquisition of PENTAX Imaging Corporation in fiscal year 2011. Overall sales in Japan increased by 1.2% from the previous corresponding period, to Yen 886.4 billion. The Americas (Sales down 9.9% to Yen 468.7 billion) --------------------------------------------------- In the Americas, unpredictable situation remained despite the recovery in individual consumption and capital investment in America. Although the strengthened sales structure and expansion of sales channel after the acquisition of IKON have contributed, overall sales in the Americas decreased by 9.9% from the previous corresponding period, to Yen 468.7 billion mainly due to the abrupt appreciation of the Yen against the US dollar . The sales in this area would have decreased by 2.1% excluding the effects of foreign currency fluctuations. Europe (Sales down 1.6% to Yen 408.5 billion) ---------------------------------------------- In Europe, it remained uncertain due to the widening intra-regional economic disparities derived from the financial crisis and employment insecurity in some countries. In addition, the sharp depreciation of the Euro developed. As a result, under such severe conditions surrounding Ricoh, overall sales in Europe decreased by 1.6% from the previous corresponding period, to Yen 408.5 billion. The sales in this area would have increased by 2.3% excluding the effects of foreign currency fluctuations. Other (Sales up 7.3% to Yen 139.7 billion) ------------------------------------------- The Other segment includes China, South East Asia and Oceania. The emerging markets including China and India achieved strong growth. Ricoh strengthened sales force mainly in the emerging markets. Consequently, sales in all segment increased from the previous corresponding period. As a result, overall sales in Other increased by 7.3% from the previous corresponding period, to Yen 139.7 billion. The sales in this area would have increased by 10.7% excluding the effects of foreign currency fluctuations. 7 *Segment Information Operating Segment ----------------- Imaging & Solutions ------------------- Even though the sales of color products increased, overall sales in Imaging & Solutions segment decreased by 2.4% from the previous corresponding period, to Yen 1,670.7 billion due to the appreciation of the yen. In addition, due primarily to impairment loss on goodwill and long-lived assets, restructuring cost and the sharp appreciation of the Yen, operating income decreased by 57.4% from the previous corresponding period, to Yen 56.2 billion. Industrial Products ------------------- Sales in the Industrial Products segment decreased by 9.7% as compared to the previous corresponding period, to Yen 101.3 billion. Sales of semiconductor devices and thermal media decreased as compared to the previous corresponding period. As a result, operating loss in the Industrial Products segment amounted to Yen 1.7 billion (operating income Yen 1.0 billion for the previous corresponding period). Other ----- Sales in the Other segment increased by 11.7% as compared to the previous corresponding period, to Yen 136.1 billion. Sales of digital cameras increased due to acquisition of PENTAX Imaging Corporation. However, investment in new business increased and operating loss in the Other segment amounted to Yen 6.0 billion (operating loss Yen 4.9 billion for the previous corresponding period).
(Billions of yen) ---------------------------------------------------------------------------------- Year ended Year ended March 31, 2011 March 31, 2012 Change (%) ---------------------------------------------------------------------------------- Imaging & Solutions: Net sales 1,712.6 1,670.7 -2.4 Operating income 132.2 56.2 -57.4 Operating income on sales(%) 7.7 3.4 -4.3point ---------------------------------------------------------------------------------- Industrial Products: Net sales 112.2 101.3 -9.7 Operating income (loss) 1.0 -1.7 -- Operating income (loss) on sales(%) 0.9 -1.7 -2.6point ---------------------------------------------------------------------------------- Other: Net sales 121.8 136.1 11.7 Operating loss -4.9 -6.0 -- Operating loss on sales(%) -4.0 -4.4 -0.4point ----------------------------------------------------------------------------------
8 Geographic Segment ------------------ Japan ----- Due to the global recession and the appreciation of the Yen, overall sales in Japan segment decreased by 0.9% from the previous corresponding period, to Yen 1,274.5 billion. Operating loss amounted to Yen 18.8 billion including restructuring cost. The Americas ------------ Although the strengthened sales structure and expansion of sales channel through the acquisition of IKON have contributed, overall sales in the Americas segment decreased by 9.3% from the previous corresponding period, to Yen 475.3 billion due to the appreciation of the Yen. Operating loss was significantly increased as compared to the previous corresponding period, to Yen 26.3 billion due to impairment loss on goodwill and long-lived assets. Europe ------ Overall sales in Europe segment decreased due to business recession in Europe and also the sharp appreciation of the Yen by 2.2% to Yen 410.6 billion. Operating income decreased by 35.6% from the previous corresponding period, to Yen 17.6 billion due to the appreciation of the Yen and the costs for strengthening of sales structures and other restructuring activities. Other ----- As for overall sales in Other segment, Ricoh strengthened sales force mainly in the emerging markets. Consequently sales increased from the previous corresponding period to Yen 283.7 billion despite the appreciation of the yen. Operating income decreased by 38.0% from the previous corresponding period, to Yen 7.6 billion. 9 *Forecast for the coming fiscal year Economic projections and Ricoh Group's strategies for fiscal year 2012 ---------------------------------------------------------------------- The global economy has shown trend of recovery because of moderate recovery in the Americas and high growth in the emerging markets, while unpredictable situation is expected due to some risk factors such as the European debt crisis and the soaring oil prices. Under such situation, Ricoh Group expects to achieve some positive impact generating from the recent restructuring activities as well as no negative impact by the Great East Japan Earthquake and the flood in Thailand. Ricoh Group will continue to strengthen its management efficiency by ongoing restructuring activities. Our performance forecast is based on the assumptions at present. However, as the situation will change from moment to moment, we will disclose the forecast when it will change. Our performance forecast for fiscal year ending March 31, 2013 is as follows: Exchange Rate Assumptions for the full year ending March 31, 2013 US$ 1 = Yen 75.00 (Yen 79.08 in previous fiscal year) EURO 1 = Yen 105.00 (Yen 109.05 in previous fiscal year) (Billions of yen) ------------------------------------------------------------------------------ Year ended Year ending March 31, 2012 March 31, 2013 (Results) (Forecast) Change ------------------------------------------------------------------------------ Domestic sales 886.4 901.0 1.6% Overseas sales 1,017.0 1,019.0 0.2% Net sales 1,903.4 1,920.0 0.9% Gross profit 752.6 760.0 1.0% Operating income (loss) -18.0 70.0 -- Income (loss) before income taxes -31.9 62.5 -- Net income (loss) attributable to Ricoh Company, Ltd. -44.5 33.0 -- ------------------------------------------------------------------------------ Notes: * Ricoh bases the forecast estimates for the year ending March 31, 2013 above upon information currently available to management, which involves risks and uncertainties that could cause actual results to differ materially from those projected. 10 (2) FINANCIAL POSITION A) Assets, Liabilities, and Equity at Year-End
(Billions of yen) ----------------------------------------------------------------------------------- March 31, 2011 March 31, 2012 Change ----------------------------------------------------------------------------------- Total Assets 2,255.5 2,289.3 33.7 Total Equity 978.1 879.0 -99.1 Ricoh Company, Ltd. shareholders' equity 925.2 822.7 -102.5 Ricoh Company, Ltd. shareholders' equity ratio (%) 41.0% 35.9% -5.1points -----------------------------------------------------------------------------------
For Assets, from the end of the previous fiscal year, trade receivables increased in Japan and Europe. In addition, inventories increased due partly to initial stock for launch of new products in new business. As a result, total assets increased by Yen 33.7 billion, to Yen 2,289.3 billion. For Liabilities, the interest-bearing debt increased due primarily to payment for costs in global restructuring program. Consequently, total liabilities increased by Yen 132.9 billion, to Yen 1,410.3 billion. For Total Equity, the change in retained earnings resulted from payment for dividends and net loss attributable to Ricoh Company, Ltd. Accumulated other comprehensive loss increased due primarily to the fluctuation of cumulative translation adjustments reflecting exchange fluctuation from the end of the previous period. As a result, Total Equity decreased by Yen 99.1 billion from the end of the previous fiscal year, to Yen 879.0 billion. B) Cash Flows
(Billions of yen) -------------------------------------------------------------------------------------------- Year ended Year ended March 31, 2011 March 31, 2012 Change -------------------------------------------------------------------------------------------- Cash flows from operating activities 128.6 11.2 -117.4 Cash flows from investing activities -91.9 -112.4 -20.5 Cash flows from financing activities -92.9 87.8 180.7 Cash and Cash Equivalents at end of period 172.2 156.2 -16.0 --------------------------------------------------------------------------------------------
Net cash provided by operating activities decreased by Yen 117.4 billion from the previous corresponding period, to Yen 11.2 billion due primarily to increase of trade receivables and inventory. Net cash used in investing activities increased by Yen 20.5 billion from the previous corresponding period, to Yen 112.4 billion due primarily to capital expenditures as well as acquisition of PENTAX Imaging Corporation. As a result, free cash outflows generated by operating and investing activities amounted to Yen 101.2 billion while free cash inflows amounted to Yen 36.7 billion in the previous corresponding period. Net cash provided by financing activities in this period amounted to Yen 87.8 billion due primarily to increase of the interest-bearing debt. As a result of the above, cash and cash equivalents as of the end of this fiscal year decreased by Yen 16.0 billion from the end of the previous corresponding period, to Yen 156.2 billion. C) Cash Flow Indices
----------------------------------------------------------------------------------------------------------------------- Year ended Year ended Year ended Year ended Year ended March 31, 2008 March 31, 2009 March 31, 2010 March 31, 2011 March 31, 2012 ----------------------------------------------------------------------------------------------------------------------- Total Equity / Total assets 48.8% 38.8% 40.8% 41.0% 35.9% Market capitalization / Total assets 53.3% 33.6% 44.4% 47.0% 25.5% Interest bearing debt / Operating cash flow 2.0 8.9 3.6 5.3 66.2 Operating cash flow / Interest expense 40.2 14.9 23.4 15.1 1.6 -----------------------------------------------------------------------------------------------------------------------
Notes: i. All indices are calculated based on consolidated data. ii. Market capitalization equals the stock price at the end of fiscal year multiples by the number of shares outstanding at the end of fiscal year. iii. Operating cash flows is shown in consolidated statement of cash flow. Interest bearing debt equals all debt in consolidated balance sheets. iv. Indices of Year ended March31, 2008, 2009 and 2010 are not based on the figures retrospectively adjusted. 11 (3) DIVIDEND POLICY Ricoh endeavors to ensure that policies are regularly updated to take the dividend payout ratio into consideration in the payment of dividends, while at the same time increasing retained earnings for the enhancement of corporate structure and the new business generation. Furthermore, these retained earnings will be used both in the reinforcement of core businesses and for investment in new fields with both medium-term and long-term perspectives. Ricoh truly regrets to announce that the total dividend per share for the fiscal year ended March 31, 2012 will be reduced by Yen 8.00 as compared to the previous corresponding period, to Yen 25.00, and for the fiscal year ending March 31, 2013 will be Yen 25.00. (4) RISK FACTORS Risks that may affect Ricoh's financial results and financial position are listed below, but are not limited to them. Ricoh's business may in the future also be affected by other risks that are currently unknown or that are not currently considered significant or material. -Ability to respond to rapid technological changes in the document imaging and management industry -Highly competitive markets -The risks of international operations and the risks of overseas expansion -Economic outlooks in major markets -Foreign exchange fluctuations -Crude oil price fluctuations -Government regulation that can limit its activities or increase its cost of operations -Internal control evaluations and attestation over financial reporting under section 404 of the Sarbanes-Oxley Act of 2002 -Dependence on protecting its intellectual property rights -Dependence on securing and retaining specially skilled personnel -Increase of employee benefit obligations -Environmental laws and regulations -Risks associated with Ricoh's equipment financing business -Product liability claims that could significantly affect its financial condition -Alliances with other entities -Risks associated with divulging of information -Catastrophic disaster, information technology problems or infectious diseases -Fluctuations in a state of electricity supply 12 2. GROUP POSITION The Ricoh Group comprises 223 subsidiaries and 7 affiliates as of March 31, 2012. Their development, manufacturing, sales, and service activities center on Imaging & Solutions, Industrial Products, and Other. Ricoh Company, Ltd., a parent company, heads development. The parent company and subsidiaries or affiliates maintain an integrated domestic and international manufacturing structure. Below, we have listed our main product areas and the positions of key subsidiaries and affiliates. [Imaging & Solutions] In this business category, Ricoh provides products and systems that support the enhancement of the office productivity of customers. Major products include: Digital/analog copiers, MFPs (multifunctional printers), laser printers, facsimile machines, and digital duplicators. Ricoh also provides solution systems including personal computers and servers, utilizing its information technology. Another business Ricoh also provides are support, service, and related supplies, as well as support and service including IT environment setup and network administration. [Main Subsidiaries and Affiliates] Manufacturing Japan...Tohoku Ricoh Co., Ltd., Ricoh Elemex Corporation, Ricoh Unitechno Co., Ltd., Hasama Ricoh Inc., Ricoh Microelectronics Co., Ltd., Ricoh Keiki Co., Ltd., and Ricoh Printing Systems, Ltd. The Americas...Ricoh Electronics, Inc. Europe... Ricoh UK Products Ltd., Ricoh Industrie France S.A.S. Other regions...Ricoh Asia Industry (Shenzhen) Ltd., Shanghai Ricoh Digital Equipment Co., Ltd. and Ricoh Manufacturing (Thailand) Ltd. Sales and Service Japan ...Ricoh Japan Corporation, Ricoh Technosystems Co., Ltd., Ricoh IT Solutions Co.,Ltd., Ricoh Leasing Co., Ltd. and Ricoh Logistics System Co., Ltd. The Americas...Ricoh Americas Corporation, Ricoh Production Print Solutions, LLC, IKON Office Solutions, Inc. Europe...Ricoh Europe PLC, Ricoh Deutschland GmbH, Ricoh UK Ltd., Ricoh France S.A.S.,Ricoh Espana S.L.U. and Ricoh Italia Srl. Other regions...Ricoh China Co., Ltd., Ricoh Hong Kong Ltd., Ricoh Asia Pacific Operations Ltd.,Ricoh Asia Pacific Pte. Ltd., Ricoh Australia Pty, Ltd. and Ricoh India Ltd. [Industrial Products] Manufacturing and marketing thermal media, optical equipments, semiconductors, electronic component and measuring equipments [Main Subsidiaries and Affiliates] Manufacturing and Sales Japan...Ricoh Optical Industries Co., Ltd., Ricoh Elemex Corporation and Ricoh Microelectronics Co., Ltd. The Americas...Ricoh Electronics, Inc. Europe...Ricoh Industrie France S.A.S. [Other] Supplying digital camera, and providing leasing and logistics services [Main Subsidiaries and Affiliates] Manufacturing Pentax Ricoh Imaging Products (Philippines) Corporation Sales Ricoh Americas Corporation, Pentax Ricoh Imaging Americas Corporation, Ricoh Europe PLC, Pentax Ricoh Imaging France S.A.S Other Ricoh Leasing Co., Ltd., Ricoh Logistics System Co., Ltd., Pentax Ricoh Imaging Co., Ltd. [Chart of Business System] The following chart is showing the group positions. 13 [Chart of Business System] The chart of group position is omitted. 14 3. MANAGEMENT POLICY (1) Basic Management Policy Ricoh Group aims "To be the most trusted brand with irresistible appeal in the global market.", and makes its missions "to be committed to providing excellence to improve the quality of living" and "to save the precious earth and fulfill its responsibilities for creating sustainable society". To these ends, Ricoh is providing innovative products and services to all customers who handle information at work in offices and in their lives out of the office, based on the Ricoh brand benefits of "Harmonize with the environment", "Simplify your life and work", and "Support knowledge management". In the 17th medium-term management plan - which extends from April 2011 to March 2014, Ricoh has highlighted "business creation and integration" and "establishment of highly efficient management" as the two basic strategies for group management. (2) Medium and Long Term Management Strategy BUSINESS CREATION AND INTEGRATION --------------------------------- In the printing business, Ricoh aims to acquire the No.1 market share in all regions for MFPs, printers, etc., by providing customers with more value through the combination of products and related services, while streamlining operations to conduct business more efficiently. Through these measures Ricoh will improve our profitability and shift more resources to the service business and also to new business. In the production printing business, Ricoh will continue to restructure and strengthen the sales and service system and enhance our product lineup to make the business more profitable. In developed countries, customers attribute more importance to the quality of service than ownership of equipment. Recently customers have been required to reduce their total cost of ownership (TCO), and their needs for workflow improvement have been increasing. Ricoh will construct and apply Managed Document Services that provide document systems with centralized storage, search and output functions, and management services of customer's concentrated output center and multiple output devices. Furthermore, Ricoh will support utilization of IT solutions and provide IT services emphasized on customer's security and business continuity, and thereby contribute to raising overall customer business productivity. Ricoh will expand our product line, such as A4MFP, in the emerging markets. Ricoh will also lower production cost for MFPs and Printers, by such measures as the local development of products. Ricoh will reinforce our sales capability, to expand our business in the emerging markets. The working styles of our customers have been changing. Amid this trend, which will further increase the flexibility of information sharing and working styles, Ricoh aims to lead customers in a constant manner. To this end, Ricoh will develop products, software and services that foster communications and will provide customers with new value through our highly competitive services and support capabilities. ESTABLISH HIGHLY EFFECTIVE MANAGEMENT ------------------------------------- Ricoh will streamline its sales systems; integrate production sites and shift resources to growth areas; review non-profitable businesses and decide either to support and turn around such businesses or withdraw from such businesses; encourage operational re-engineering; relocate human resources to new growth areas; reduce purchase costs by centralizing purchase functions and aggregating purchase orders; and review its development processes. Basic strategy achievements this period until today are as follows. In the Imaging & Solutions business, Ricoh continually creates new color multifunction machines and color laser printers to improve customers' businesses, further enhancing the product line. As to digital color multifunction equipments, Ricoh released Aficio MP C5002/C4002/C3302/C2802 series with achieving excellent environmental performance and pursuing operational efficiency improvement and usability. The Aficio MP C5002/C4002/C3302/C2802 color multifunction copier, which achieved unprecedented energy saving performance, features a new fixing technology to conduct heat efficiently and to lower the fusion point of the toner. By these new product launches, Ricoh's stronger product line has led it to attain large market shares in colorcopier/multifunction equipment markets in all regions. In developing markets, Ricoh released the Aficio SP100 A4MFP, which Ricoh independently developed and produced in China to meet Chinese users' demands for the print quality. Ricoh is accelerating its step to march into the fast-growing China A4MFP market. As to production printing business, Ricoh released the RICOH Pro C751EX and the RICOH Pro C651EX with higher image quality, variety of paper sizes, and improved operability in additional superior cost performance. The new Ricoh models, as well as the RICOH Pro C901 Series, which has received good reviews for its high print image quality and ability to handle a variety of media sizes and weights, will enable Ricoh to continue to meet the diversifying product printer market requirements, such as high-mix, low lot size, and short delivery time. As a result, it has led to attain large market shares in Japan and overseas. 15 As to projection system business that was launched as part of our mission to increase the value provided to our customers in the field of communications, including projection and sound, Ricoh released the IPSiO PJ WX4130N/WX4130 series, which offers an ultra-short-throw business projector. Ricoh has provided entire services from the equipment sales to solution proposals to meet customers' needs, supporting costumers' business in response to evolving the working style. Ricoh has initiated developments of new value added device and module business by collaborating in the area of marketing, development, manufacture and sales for the industrial business such as semiconductor, electrical component and optical equipment. As to thermal media business, Ricoh has developed emerging markets and expand global businesses. In the consumer business, Ricoh acquired HOYA Corporation's PENTAX Imaging Systems business for strengthening the digital camera business and creation of new business delivering added value to consumers. Ricoh aims to provide more consumer-oriented offerings not only in the field of digital cameras but also video conferencing systems, network appliances, and others, to their customers around the world. (3) Issues to Face In FY2012, the second year of the 17th medium-term management plan, which extends from April 2011 to March 2014, Ricoh make FY2012 the turning point for a path of growth. Ricoh aims to rebuild foundation of management and win the new competitions with expanding business areas, overcoming such challenges as the Great East Japan Earthquake, the flood in Thailand and the sharp appreciation of the Yen. In order to resolve these issues, Ricoh has set and will implement the following three core action plans. I.Further acceleration of restructuring In addition to reducing costs, eliminating the duplication of functions and optimizing human resource allocation, Ricoh reengineer all operational processes by utilizing ICT. Also, as previously noted, Ricoh will implement such key measures as streamlining of sales operations, regeneration of unprofitable business, integration of the production facilities, promotion of centralized global purchasing and improvement of development processes. II.Reinforce earning structures In the Imaging & Solutions business, Ricoh recognized major changes of business environment. In developed markets, while the demand for copier/multifunction copier is some moderately recovering from the world economic downturn triggered by the world financial crisis, customers are buying fewer printing devices and print output volume remains low growth. Customer value has been shifting away from "owing products" to "service usability". In addition, way to print is changing. In fact, mobile device usage as a printing medium is accelerating. Ricoh will miss none of new opportunities associated with imaging solutions as Ricoh's core businesses. Specifically, Ricoh will reinforce MDS and IT services, and expand projectors and video-conference systems, which promote the real-time visual communication in working place. Also, Ricoh will create a new customer value through the linkage of MFPs, Printers and smartphones, tablet PCs, which become widely used as internet connection terminal. In developing markets, total demand for copier/multifunction copier is expanding rapidly. Ricoh will be adding a specific strategic marketing approach for each developing markets which might be different from the approach for developed markets. Ricoh will expand businesses by enforcing sales channels and creating products and services based on regional characteristics. Ricoh aims to increase our share-of-wallet by combining existing and new products and services through our strong customer relationship both in developed markets and developing markets. III.Prioritization of new business areas In order to ensure medium and long-term growth, Ricoh aims to establish new core businesses in addition to imaging solutions businesses as Ricoh's core businesses. Based on our expertise and strength, Ricoh are prioritized the following three areas for new businesses: - Working place innovation: Projection System, Unified Communication System and LED lamp - Intelligent sensing: Optical Devices, modules and Rewritable Hybrid media - Visual revolution: Digital SLR, Compact Cameras and Replacement Lenses Finally, in order for today's companies to exist long into the future, they are required to contribute to the sustainability of the global environment and the human race. As a good corporate citizen, the Ricoh Group continues to increase its corporate value with a three-pronged focus on society, environment and economy. Ricoh is conducting an environmental management that enables us to conserve the environment while generating profits at the same time. With the participation of all employees around the globe, Ricoh aims to meet its medium and long-term environmental targets based on the pillars of process reform and technological innovation. Meanwhile, Ricoh will aim to provide customers with products and services that carry a lighter environmental load at time of use, and thereby contribute proactively to the creation of office environments for the low-carbon society. 16 4. CONSOLIDATED FINANCIAL STATEMENTS (1) CONSOLIDATED BALANCE SHEETS (March 31, 2011 and 2012)
Assets (Millions of yen) --------------------------------------------------------------------------------------------------------------- March 31, 2011 March 31, 2012 Change --------------------------------------------------------------------------------------------------------------- Current Assets Cash and time deposits 174,231 158,671 -15,560 Trade receivables 657,732 686,930 29,198 Inventories 171,883 195,009 23,126 Other current assets 64,004 65,896 1,892 Total Current Assets 1,067,850 1,106,506 38,656 Fixed Assets Tangible fixed assets 264,818 268,527 3,709 Finance receivables 445,783 468,004 22,221 Other investments 477,113 446,321 -30,792 Total Fixed Assets 1,187,714 1,182,852 -4,862 --------------------------------------------------------------------------------------------------------------- Total Assets 2,255,564 2,289,358 33,794 --------------------------------------------------------------------------------------------------------------- Note: Contents of cash and time deposits: Cash and cash equivalents 172,221 156,210 Time deposits 2,010 2,461
Liabilities and Equity (Millions of yen) --------------------------------------------------------------------------------------------------------------- March 31, 2011 March 31, 2012 Change --------------------------------------------------------------------------------------------------------------- Current Liabilities Trade payables 247,406 252,209 4,803 Short-term borrowings 150,201 216,432 66,231 Other current liabilities 211,857 204,383 -7,474 Total Current Liabilities 609,464 673,024 63,560 Fixed Liabilities Long-term indebtedness 479,423 525,435 46,012 Accrued pension and severance costs 140,840 164,757 23,917 Other fixed liabilities 47,707 47,124 -583 Total Fixed Liabilities 667,970 737,316 69,346 --------------------------------------------------------------------------------------------------------------- Total Liabilities 1,277,434 1,410,340 132,906 --------------------------------------------------------------------------------------------------------------- Equity Common stock 135,364 135,364 -- Additional paid-in capital 186,083 186,083 -- Retained earnings 811,082 742,549 -68,533 Accumulated other comprehensive loss -170,448 -204,175 -33,727 Treasury stock -36,838 -37,117 -279 Ricoh Company, Ltd. shareholders' equity 925,243 822,704 -102,539 Noncontrolling interests 52,887 56,314 3,427 --------------------------------------------------------------------------------------------------------------- Total Equity 978,130 879,018 -99,112 --------------------------------------------------------------------------------------------------------------- Total Liabilities and Equity 2,255,564 2,289,358 33,794 --------------------------------------------------------------------------------------------------------------- Note: Accumulated other comprehensive income (loss); Net unrealized holding gains on available-for-sale securities 2,466 3,681 1,215 Pension liability adjustments -47,493 -67,578 -20,085 Net unrealized losses on derivative instruments -1,168 -1,153 15 Cumulative translation adjustments -124,253 -139,125 -14,872 Reference: Exchange rate March 31, 2011 March 31, 2012 US$ 1 Yen 83.15 Yen 82.19 EURO 1 Yen 117.57 Yen 109.80
17 (2) CONSOLIDATED STATEMENTS OF INCOME
(Three months ended March 31, 2011 and 2012) (Millions of yen) ----------------------------------------------------------------------------------------------------------------------------- Three months ended Three months ended March 31, 2011 March 31, 2012 Change % ----------------------------------------------------------------------------------------------------------------------------- Net sales 499,824 506,610 6,786 1.4 Cost of sales 310,548 322,246 11,698 3.8 Percentage of net sales (%) 62.1 63.6 Gross Profit 189,276 184,364 -4,912 -2.6 Percentage of net sales (%) 37.9 36.4 Selling, general and administrative expenses 183,625 165,424 -18,201 -9.9 Percentage of net sales (%) 36.8 32.7 Operating income 5,651 18,940 13,289 235.2 Percentage of net sales (%) 1.1 3.7 Other (income) expense Interest and dividend income 830 1,112 282 34.0 Percentage of net sales (%) 0.2 0.2 Interest expense 2,691 2,008 -683 -25.4 Percentage of net sales (%) 0.5 0.4 Loss on impairment of securities 1,639 -12 -1,651 -- Percentage of net sales (%) 0.3 0.0 Other, net -1,838 1,424 3,262 -- Percentage of net sales (%) -0.3 0.2 Income before income taxes and equity in earnings of affiliates 3,989 16,632 12,643 316.9 Percentage of net sales (%) 0.8 3.3 Provision for income taxes 6,248 6,960 712 11.4 Percentage of net sales (%) 1.3 1.4 Equity in earnings of affiliates -7 22 29 -- Percentage of net sales (%) 0.0 0.0 Consolidated net income (loss) -2,266 9,694 11,960 -- Percentage of net sales (%) -0.5 1.9 Net income attributable to noncontrolling interests 268 1,069 801 298.9 Percentage of net sales (%) 0.1 0.2 Net income (loss) attributable to Ricoh Company, Ltd. -2,534 8,625 11,159 -- Percentage of net sales (%) -0.5 1.7 ----------------------------------------------------------------------------------------------------------------------------- Reference : Exchange rate US$ 1 Yen 82.32 Yen 79.32 EURO 1 Yen 112.51 Yen 104.04
(Year ended March 31, 2011 and 2012) (Millions of yen) ----------------------------------------------------------------------------------------------------------------------------- Year ended Year ended March 31, 2011 March 31, 2012 Change % ----------------------------------------------------------------------------------------------------------------------------- Net sales 1,941,336 1,903,477 -37,859 -2.0 Cost of sales 1,152,395 1,150,855 -1,540 -0.1 Percentage of net sales (%) 59.4 60.5 Gross Profit 788,941 752,622 -36,319 -4.6 Percentage of net sales (%) 40.6 39.5 Selling, general and administrative expenses 730,870 770,690 39,820 5.4 Percentage of net sales (%) 37.6 40.4 Operating income (loss) 58,071 -18,068 -76,139 -- Percentage of net sales (%) 3.0 -0.9 Other (income) expense Interest and dividend income 2,985 3,129 144 4.8 Percentage of net sales (%) 0.2 0.2 Interest expense 8,528 6,979 -1,549 -18.2 Percentage of net sales (%) 0.4 0.4 Loss on impairment of securities 1,844 5,012 3,168 171.8 Percentage of net sales (%) 0.1 0.3 Other, net 6,515 5,007 -1,508 -23.1 Percentage of net sales (%) 0.4 0.2 Income (loss) before income taxes and equity in earnings of affiliates 44,169 -31,937 -76,106 -- Percentage of net sales (%) 2.3 -1.7 Provision for income taxes 22,410 8,223 -14,187 -63.3 Percentage of net sales (%) 1.2 0.4 Equity in earnings of affiliates (22) 39 61 -- Percentage of net sales (%) -0.0 0.0 Consolidated net income (loss) 21,737 -40,121 -61,858 -- Percentage of net sales (%) 1.1 -2.1 Net income (loss) attributable to noncontrolling interests 3,107 4,439 1,332 42.9 Percentage of net sales (%) 0.2 0.2 Net income (loss) attributable to Ricoh Company, Ltd. 18,630 -44,560 -63,190 -- Percentage of net sales (%) 1.0 -2.3 ----------------------------------------------------------------------------------------------------------------------------- Reference : Exchange rate US$ 1 Yen 85.77 Yen 79.08 EURO 1 Yen 113.28 Yen 109.05
18 (3)-1. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Three months ended March 31, 2011 and 2012) (Millions of yen) ----------------------------------------------------------------------------------------------------------------- Three months ended Three months ended March 31, 2011 March 31, 2012 Change % ----------------------------------------------------------------------------------------------------------------- [Imaging & Solutions] Imaging Solutions 400,189 389,478 -10,711 -2.7 Percentage of net sales (%) 80.1 76.9 Network System Solutions 45,573 55,584 10,011 22.0 Percentage of net sales (%) 9.1 11.0 Total Imaging & Solutions 445,762 445,062 -700 -0.2 Percentage of net sales (%) 89.2 87.9 ----------------------------------------------------------------------------------------------------------------- [Industrial Products] Industrial Products 24,694 22,497 -2,197 -8.9 Percentage of net sales (%) 4.9 4.4 ----------------------------------------------------------------------------------------------------------------- [Other] Other 29,368 39,051 9,683 33.0 Percentage of net sales (%) 5.9 7.7 ----------------------------------------------------------------------------------------------------------------- Grand Total 499,824 506,610 6,786 1.4 Percentage of net sales (%) 100.0 100.0 ----------------------------------------------------------------------------------------------------------------- Reference : Exchange rate US$ 1 Yen 82.32 Yen 79.32 EURO 1 Yen 112.51 Yen 104.04
(Year ended March 31, 2011 and 2012) (Millions of yen) ------------------------------------------------------------------------------------------------------------------ Year ended Year ended March 31, 2011 March 31, 2012 Change % ------------------------------------------------------------------------------------------------------------------ [Imaging & Solutions] Imaging Solutions 1,531,219 1,471,827 -59,392 -3.9 Percentage of net sales (%) 78.9 77.3 Network System Solutions 181,411 198,945 17,534 9.7 Percentage of net sales (%) 9.3 10.5 Total Imaging & Solutions 1,712,630 1,670,772 -41,858 -2.4 Percentage of net sales (%) 88.2 87.8 ------------------------------------------------------------------------------------------------------------------- [Industrial Products] Industrial Products 106,830 96,584 -10,246 -9.6 Percentage of net sales (%) 5.5 5.1 ------------------------------------------------------------------------------------------------------------------- [Other] Other 121,876 136,121 14,245 11.7 Percentage of net sales (%) 6.3 7.1 ------------------------------------------------------------------------------------------------------------------- Grand Total 1,941,336 1,903,477 -37,859 -2.0 Percentage of net sales (%) 100.0 100.0 ------------------------------------------------------------------------------------------------------------------- Reference : Exchange rate US$ 1 Yen 85.77 Yen 79.08 EURO 1 Yen 113.28 Yen 109.05
* 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 Digital cameras * Product lines included in Product Category was changed in the first quarter of fiscal year 2011. Service&Support, such as MDS(Managed Document Services) was changed from Network System Solutions to Imaging Solutions. The reclassification was made to the prior year's figures to conform with the current year's presentation. 19 (3)-2. CONSOLIDATED SALES BY GEOGRAPHIC AREA
(Three months ended March 31, 2011 and 2012) (Millions of yen) ----------------------------------------------------------------------------------------------------------------- Three months ended Three months ended March 31, 2011 March 31, 2012 Change % ----------------------------------------------------------------------------------------------------------------- [Domestic] 225,756 241,317 15,561 6.9 Percentage of net sales (%) 45.2 47.6 [Overseas] 274,068 265,293 -8,775 -3.2 Percentage of net sales (%) 54.8 52.4 The Americas 130,541 121,572 -8,969 -6.9 Percentage of net sales (%) 26.1 24.0 Europe 110,127 106,399 -3,728 -3.4 Percentage of net sales (%) 22.0 21.0 Other 33,400 37,322 3,922 11.7 Percentage of net sales (%) 6.7 7.4 Grand Total 499,824 506,610 6,786 1.4 Percentage of net sales (%) 100.0 100.0 ----------------------------------------------------------------------------------------------------------------- Reference : Exchange rate US$ 1 Yen 82.32 Yen 79.32 EURO 1 Yen 112.51 Yen 104.04
(Year ended March 31, 2011 and 2012) (Millions of yen) ------------------------------------------------------------------------------------------------------------------ Year ended Year ended March 31, 2011 March 31, 2012 Change % ------------------------------------------------------------------------------------------------------------------ [Domestic] 875,819 886,425 10,606 1.2 Percentage of net sales (%) 45.1 46.6 [Overseas] 1,065,517 1,017,052 -48,465 -4.5 Percentage of net sales (%) 54.9 53.4 The Americas 520,000 468,728 -51,272 -9.9 Percentage of net sales (%) 26.8 24.6 Europe 415,189 408,542 -6,647 -1.6 Percentage of net sales (%) 21.4 21.5 Other 130,328 139,782 9,454 7.3 Percentage of net sales (%) 6.7 7.3 Grand Total 1,941,336 1,903,477 -37,859 -2.0 Percentage of net sales (%) 100.0 100.0 ------------------------------------------------------------------------------------------------------------------ Reference : Exchange rate US$ 1 Yen 85.77 Yen 79.08 EURO 1 Yen 113.28 Yen 109.05
20 (4) CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Year ended March 31, 2011 (Millions of yen) -------------------------------------------------------------------------------------------------------------------------------- Accumulated other Ricoh Additional comprehensive Company, Ltd. Common paid-in Retained income Treasury shareholders' Noncontrolling stock capital earnings (loss) stock equity interest Total equity -------------------------------------------------------------------------------------------------------------------------------- Beginning balance 135,364 186,083 820,701 -132,051 -36,756 973,341 50,533 1,023,874 Cumulative effect of a change in accounting principle - adoption of accounting guidance for a variable interest entity, net of tax -410 -410 -392 -802 Effect of a change in accounting period of subsidiaries, net of tax -3,868 -115 -3,983 -3,983 -------------------------------------------------------------------------------------------------------------------------------- Beginning balance (after adjustment) 135,364 186,083 816,423 -132,166 -36,756 968,948 50,141 1,019,089 -------------------------------------------------------------------------------------------------------------------------------- Comprehensive income (loss) Net income 18,630 18,630 3,107 21,737 Unrealized gains (losses) on securities 94 94 -6 88 Pension liability adjustment -158 -158 -7 -165 Unrealized losses on derivatives -11 -11 -22 -33 Cumulative translation adjustments -38,207 -38,207 269 -37,938 ---------------------------------------------- Total comprehensive income (loss) -19,652 3,341 -16,311 ---------------------------------------------- Net changes in treasury stock -82 -82 -82 Loss on disposal of treasury stock -28 -28 -28 Dividends declared and approved to Ricoh Company, Ltd. shareholders -23,943 -23,943 -23,943 Dividends to noncontrolling interests -595 -595 -------------------------------------------------------------------------------------------------------------------------------- Ending balance 135,364 186,083 811,082 -170,448 -36,838 925,243 52,887 978,130 ================================================================================================================================
Year ended March 31, 2012 (Millions of yen) -------------------------------------------------------------------------------------------------------------------------------- Accumulated other Ricoh Additional comprehensive Company, Ltd. Common paid-in Retained income Treasury shareholders' Noncontrolling stock capital earnings (loss) stock equity interest Total equity -------------------------------------------------------------------------------------------------------------------------------- Beginning balance (after adjustment) 135,364 186,083 811,082 -170,448 -36,838 925,243 52,887 978,130 Comprehensive income (loss) Net income (loss) -44,560 -44,560 4,439 -40,121 Unrealized gains (losses) on securities 1,215 1,215 -7 1,208 Pension liability adjustment -20,085 -20,085 -78 -20,163 Unrealized gains on derivatives 15 15 68 83 Cumulative translation adjustments -14,872 -14,872 -194 -15,066 ---------------------------------------------- Total comprehensive income (loss) -78,287 4,228 -74,059 ---------------------------------------------- Net changes in treasury stock -279 -279 -279 Loss on disposal of treasury stock -31 -31 -31 Dividends declared and approved to Ricoh Company, Ltd. shareholders -23,942 -23,942 -23,942 Dividends to noncontrolling interests -603 -603 Wholly owned subsidiaries -198 -198 -------------------------------------------------------------------------------------------------------------------------------- Ending balance 135,364 186,083 742,549 -204,175 -37,117 822,704 56,314 879,018 ================================================================================================================================
21 (5) CONSOLIDATED STATEMENTS OF CASH FLOWS
(Year ended March 31, 2011 and 2012) (Millions of yen) ---------------------------------------------------------------------------------------------------------------------------- Year ended Year ended March 31, 2011 March 31, 2012 ---------------------------------------------------------------------------------------------------------------------------- I. Cash Flows from Operating Activities: Consolidated net income (loss) 21,737 -40,121 Adjustments to reconcile net income (loss) to net cash provided by operating activities - Depreciation and amortization 93,677 91,137 Equity in earnings of affiliates, net of dividends received 22 -39 Deferred income taxes 908 -24,087 Loss on disposal and sales of tangible fixed assets 1,507 1,604 Loss on impairment of long-lived assets 842 10,070 Loss on impairment of securities 1,844 5,012 Loss on impairment of goodwill -- 27,491 Pension and severance costs, less payments -1,106 -5,386 Changes in assets and liabilities - (Increase) Decrease in trade receivables 1,072 -20,393 Increasee in inventories -12,515 -17,126 (Increase) Decrease in finance receivables 13,917 -25,667 Decrease in trade payables -11,850 -5,096 (Decrease) Increase in accrued income taxes and accrued expenses and other 13,868 -5,623 Other, net 4,713 19,430 ---------------------------------------------------------------------------------------------------------------------------- Net cash provided by operating activities 128,636 11,206 ---------------------------------------------------------------------------------------------------------------------------- II. Cash Flows from Investing Activities: Proceeds from sales of property, plant and equipment 1,389 1,532 Expenditures for tangible fixed assets -66,875 -73,271 Expenditures for intangible fixed assets -18,807 -14,504 Payments for purchases of available-for-sale securities -235 -93 Proceeds from sales of available-for-sale securities 126 68 Increase in time deposits -401 -385 Purchase of business, net of cash acquired -1,415 -14,816 Other, net -5,688 -10,974 ---------------------------------------------------------------------------------------------------------------------------- Net cash used in investing activities -91,906 -112,443 ---------------------------------------------------------------------------------------------------------------------------- III. Cash Flows from Financing Activities: Proceeds from long-term indebtedness 58,622 147,034 Repayment of long-term indebtedness -87,147 -82,260 (Increase) Decrease in short-term borrowings, net -31,584 70,044 Proceeds from issuance of long-term debt securities 79,741 -- Repayment of long-term debt securities -87,975 -22,444 Dividend paid -23,943 -23,942 Payment for purchase of treasury stock -157 -23 Other, net -520 -586 ---------------------------------------------------------------------------------------------------------------------------- Net cash provided by (used in) financing activities -92,963 87,823 ---------------------------------------------------------------------------------------------------------------------------- IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents -8,647 -2,597 ---------------------------------------------------------------------------------------------------------------------------- V. Net Decrease in Cash and Cash Equivalents -64,880 -16,011 ---------------------------------------------------------------------------------------------------------------------------- VI. Cash and Cash Equivalents at Beginning of Year 237,101 172,221 ---------------------------------------------------------------------------------------------------------------------------- VII. Cash and Cash Equivalents at End of Year 172,221 156,210 ----------------------------------------------------------------------------------------------------------------------------
22 (6) NOTE FOR GOING CONCERN ASSUMPTION Not applicable. (7) SIGNIFICANT ACCOUNTING POLICIES (CONSOLIDATED) A) CHANGES IN THE SCALE OF CONSOLIDATION AND THE APPLICATION OF THE EQUITY METHOD FROM APRIL 1, 2011 TO MARCH 31, 2012. Consolidated subsidiaries: 26 Additions 19 Removals Companies accounted for by the equity method: 1 Additions 1 Removals B) CONSOLIDATED ACCOUNTING POLICIES (SUMMARY) a. Principles of Consolidation The consolidated financial statements include the accounts of Ricoh and its consolidated subsidiaries. Investments in 20% to 50% owned companies when the Company has the ability to exercise significant influence are accounted for on the equity basis. All significant inter-company balances and transactions have been eliminated in consolidation. b. Securities In conformity with FASB Accounting Standards Codification (ASC) 320, "Debt and Equity Securities" , securities are mainly classified as available-for-sale securities. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of related taxes, excluded from earnings and reported in accumulated other comprehensive income (loss). The cost of the securities sold is computed based on the average cost of each security held at the time of sale. c. Inventories Inventories are mainly stated at the lower of average cost or market. Inventory costs include raw materials, labor and manufacturing overheads. d. Property, Plant and Equipment Depreciation of property, plant and equipment is computed principally by using the declining-balance method over the estimated useful lives. Most of the foreign subsidiaries have adopted the straight-line method for computing depreciation. Certain leased buildings, machinery and equipment are accounted for as capital leases in conformity with ASC 840 "Accounting for Leases". e. Goodwill and Other Intangible Assets In conformity with ASC 350, "Goodwill and Other Intangible Assets" , Goodwill and intangible asset determined to have an indefinite useful life are not amortized. ASC 350 requires annual impairment testing thereof. f. Pension and Retirement Allowances Plans The measurement of pension costs and liabilities is determined in accordance with ASC 715, "Retirement Benefits". g. Use of Estimates Management of the Company has made a number of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, including impairment losses of long-lived assets and the disclosures of fair value of financial instruments and contingent assets and liabilities, to prepare these financial statements in conformity with accounting principles generally accepted in the United States of America. Actual results could differ from those estimates. 23 (8) CHANGES IN SIGNIFICANT ACCOUNTING POLICIES (CONSOLIDATED) CHANGES IN ACCOUNTING METHOD Ricoh has accounted for subsidiaries that changed their fiscal year-ends from December 31 to March 31 as if their fiscal year-ends in prior years were March 31 and has restated prior-year consolidated financial statements. As a result, the previous fiscal year's consolidated balance sheet, consolidated statement of income, consolidated sales by product category, consolidated statements of changes in equity, consolidated statements of cash flows, segment information and per share data have been restated. Adjustments to previous year's consolidated net income attributable to Ricoh Company,Ltd.,total shareholders' equity and total assets in line with this restatement are as follows.
(Millions of yen) ------------------------------------------------------------------------------------------------------ Pre-restatement Adjustment Restated ------------------------------------------------------------------------------------------------------ Net income attributable to Ricoh Company,Ltd. 19,650 -1,020 18,630 Total shareholders' equity 982,764 -4,634 978,130 Total assets 2,262,396 -6,832 2,255,564 ------------------------------------------------------------------------------------------------------
24 (9) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS A) SEGMENT INFORMATION a. Operating Segment Information
(Three months ended March 31, 2011 and 2012) (Millions of yen) ----------------------------------------------------------------------------------------------------------------- Three months ended Three months ended March 31, 2011 March 31, 2012 Change % ----------------------------------------------------------------------------------------------------------------- IMAGING & SOLUTIONS: Net sales: External customers 445,762 445,062 -700 -0.2 Intersegment -- -- -- Total 445,762 445,062 -700 -0.2 ----------------------------------------------------------------------------------------------------------------- Operating expenses 420,010 408,998 -11,012 -2.6 ----------------------------------------------------------------------------------------------------------------- Operating income 25,752 36,064 10,312 40.0 Operating income on sales in Imaging & Solutions (%) 5.8 8.1 ----------------------------------------------------------------------------------------------------------------- INDUSTRIAL PRODUCTS: Net sales: External customers 24,694 22,497 -2,197 -8.9 Intersegment 1,266 1,043 -223 -17.6 Total 25,960 23,540 -2,420 -9.3 ----------------------------------------------------------------------------------------------------------------- Operating expenses 25,729 22,677 -3,052 -11.9 ----------------------------------------------------------------------------------------------------------------- Operating income 231 863 632 273.6 Operating income on sales in Industrial Products (%) 0.9 3.7 ----------------------------------------------------------------------------------------------------------------- OTHER: Net sales: External customers 29,368 39,051 9,683 33.0 Intersegment -- -- -- Total 29,368 39,051 9,683 33.0 ----------------------------------------------------------------------------------------------------------------- Operating expenses 32,746 41,464 8,718 26.6 ----------------------------------------------------------------------------------------------------------------- Operating loss -3,378 -2,413 965 -- Operating loss on sales in Other (%) -11.5 -6.2 ----------------------------------------------------------------------------------------------------------------- CORPORATE AND ELIMINATIONS: Net sales: Intersegment -1,266 -1,043 223 Total -1,266 -1,043 223 -- ----------------------------------------------------------------------------------------------------------------- Operating expenses: Intersegment -1,266 -1,043 223 Corporate 16,954 15,574 -1,380 Total 15,688 14,531 -1,157 -- ----------------------------------------------------------------------------------------------------------------- Operating loss -16,954 -15,574 1,380 -- ----------------------------------------------------------------------------------------------------------------- CONSOLIDATED: Net sales: External customers 499,824 506,610 6,786 1.4 Intersegment -- -- -- Total 499,824 506,610 6,786 1.4 ----------------------------------------------------------------------------------------------------------------- Operating expenses 494,173 487,670 -6,503 -1.3 ----------------------------------------------------------------------------------------------------------------- Operating income 5,651 18,940 13,289 235.2 Operating income on consolidated net sales (%) 1.1 3.7 -----------------------------------------------------------------------------------------------------------------
25
(Year ended March 31, 2011 and 2012) (Millions of yen) ----------------------------------------------------------------------------------------------------------------- Year ended Year ended March 31, 2011 March 31, 2012 Change % ----------------------------------------------------------------------------------------------------------------- IMAGING & SOLUTIONS: Net sales: External customers 1,712,630 1,670,772 -41,858 -2.4 Intersegment -- -- -- Total 1,712,630 1,670,772 -41,858 -2.4 ----------------------------------------------------------------------------------------------------------------- Operating expenses 1,580,344 1,614,475 34,131 2.2 ----------------------------------------------------------------------------------------------------------------- Operating income 132,286 56,297 -75,989 -57.4 Operating income on sales in Imaging & Solutions (%) 7.7 3.4 ---------------------------------------------------------------------------------------------------------------- INDUSTRIAL PRODUCTS: Net sales: External customers 106,830 96,584 -10,246 -9.6 Intersegment 5,413 4,731 -682 -12.6 Total 112,243 101,315 -10,928 -9.7 ---------------------------------------------------------------------------------------------------------------- Operating expenses 111,237 103,057 -8,180 -7.4 ---------------------------------------------------------------------------------------------------------------- Operating income (loss) 1,006 -1,742 -2,748 -- Operating income (loss) on sales in Industrial Products (%) 0.9 -1.7 ---------------------------------------------------------------------------------------------------------------- OTHER: Net sales: External customers 121,876 136,121 14,245 11.7 Intersegment -- -- -- Total 121,876 136,121 14,245 11.7 ---------------------------------------------------------------------------------------------------------------- Operating expenses 126,787 142,131 15,344 12.1 ---------------------------------------------------------------------------------------------------------------- Operating loss -4,911 -6,010 -1,099 -- Operating loss on sales in Other (%) -4.0 -4.4 ---------------------------------------------------------------------------------------------------------------- CORPORATE AND ELIMINATIONS: Net sales: Intersegment -5,413 -4,731 682 Total -5,413 -4,731 682 -- ---------------------------------------------------------------------------------------------------------------- Operating expenses: Intersegment -5,420 -4,731 689 Corporate 70,317 66,613 -3,704 Total 64,897 61,882 -3,015 -- ---------------------------------------------------------------------------------------------------------------- Operating loss -70,310 -66,613 3,697 -- ---------------------------------------------------------------------------------------------------------------- CONSOLIDATED: Net sales: External customers 1,941,336 1,903,477 -37,859 -2.0 Intersegment -- -- -- Total 1,941,336 1,903,477 -37,859 -2.0 ---------------------------------------------------------------------------------------------------------------- Operating expenses 1,883,265 1,921,545 38,280 2.0 ---------------------------------------------------------------------------------------------------------------- Operating income (loss) 58,071 -18,068 -76,139 -- Operating income (loss) on consolidated net sales (%) 3.0 -0.9 ----------------------------------------------------------------------------------------------------------------
26 b. Geographic Segment Information
(Three months ended March 31, 2011 and 2012) (Millions of yen) ----------------------------------------------------------------------------------------------------------------- Three months ended Three months ended March 31, 2011 March 31, 2012 Change % ----------------------------------------------------------------------------------------------------------------- JAPAN: Net sales: External customers 229,444 248,599 19,155 8.3 Intersegment 83,995 86,074 2,079 2.5 Total 313,439 334,673 21,234 6.8 ----------------------------------------------------------------------------------------------------------------- Operating expenses 311,676 323,660 11,984 3.8 ----------------------------------------------------------------------------------------------------------------- Operating income 1,763 11,013 9,250 524.7 Operating income on sales in Japan(%) 0.6 3.3 ----------------------------------------------------------------------------------------------------------------- THE AMERICAS: Net sales: External customers 130,482 122,028 -8,454 -6.5 Intersegment 726 966 240 33.1 Total 131,208 122,994 -8,214 -6.3 ----------------------------------------------------------------------------------------------------------------- Operating expenses 132,555 122,783 -9,772 -7.4 ----------------------------------------------------------------------------------------------------------------- Operating income (loss) -1,347 211 1,558 -- Operating income (loss) on sales in the Americas(%) -1.0 0.2 ----------------------------------------------------------------------------------------------------------------- EUROPE: Net sales: External customers 112,355 105,133 -7,222 -6.4 Intersegment 606 145 -461 -76.1 Total 112,961 105,278 -7,683 -6.8 ----------------------------------------------------------------------------------------------------------------- Operating expenses 105,065 100,295 -4,770 -4.5 ----------------------------------------------------------------------------------------------------------------- Operating income 7,896 4,983 -2,913 -36.9 Operating income on sales in Europe(%) 7.0 4.7 ----------------------------------------------------------------------------------------------------------------- OTHER: Net sales: External customers 27,543 30,850 3,307 12.0 Intersegment 38,274 45,965 7,691 20.1 Total 65,817 76,815 10,998 16.7 ----------------------------------------------------------------------------------------------------------------- Operating expenses 63,166 74,028 10,862 17.2 ----------------------------------------------------------------------------------------------------------------- Operating income 2,651 2,787 136 5.1 Operating income on sales in Other(%) 4.0 3.6 ----------------------------------------------------------------------------------------------------------------- CORPORATE AND ELIMINATIONS: Net sales: Intersegment -123,601 -133,150 -9,549 -- Total -123,601 -133,150 -9,549 -- ----------------------------------------------------------------------------------------------------------------- Operating expenses: -118,289 -133,096 -14,807 -- ----------------------------------------------------------------------------------------------------------------- Operating loss -5,312 -54 5,258 -- ----------------------------------------------------------------------------------------------------------------- CONSOLIDATED: Net sales: External customers 499,824 506,610 6,786 1.4 Intersegment -- -- -- Total 499,824 506,610 6,786 1.4 ----------------------------------------------------------------------------------------------------------------- Operating expenses 494,173 487,670 -6,503 -1.3 ----------------------------------------------------------------------------------------------------------------- Operating income 5,651 18,940 13,289 235.2 Operating income on consolidated net sales(%) 1.1 3.7 -----------------------------------------------------------------------------------------------------------------
27
(Year ended March 31, 2011 and 2012) (Millions of yen) ----------------------------------------------------------------------------------------------------------------- Year ended Year ended March 31, 2011 March 31, 2012 Change % ----------------------------------------------------------------------------------------------------------------- JAPAN: Net sales: External customers 890,779 901,742 10,963 1.2 Intersegment 395,556 372,854 -22,702 -5.7 Total 1,286,335 1,274,596 -11,739 -0.9 ----------------------------------------------------------------------------------------------------------------- Operating expenses 1,257,207 1,293,454 36,247 2.9 ----------------------------------------------------------------------------------------------------------------- Operating income (loss) 29,128 -18,858 -47,986 -- Operating income (loss) on sales in Japan(%) 2.3 -1.5 ----------------------------------------------------------------------------------------------------------------- THE AMERICAS: Net sales: External customers 520,651 471,805 -48,846 -9.4 Intersegment 3,245 3,588 343 10.6 Total 523,896 475,393 -48,503 -9.3 ----------------------------------------------------------------------------------------------------------------- Operating expenses 529,157 501,785 -27,372 -5.2 ----------------------------------------------------------------------------------------------------------------- Operating loss -5,261 -26,392 -21,131 -- Operating loss on sales in the Americas(%) -1.0 -5.6 ----------------------------------------------------------------------------------------------------------------- EUROPE: Net sales: External customers 417,571 409,160 -8,411 -2.0 Intersegment 2,381 1,468 -913 -38.3 Total 419,952 410,628 -9,324 -2.2 ----------------------------------------------------------------------------------------------------------------- Operating expenses 392,499 392,935 436 0.1 ----------------------------------------------------------------------------------------------------------------- Operating income 27,453 17,693 -9,760 -35.6 Operating income on sales in Europe(%) 6.5 4.3 ----------------------------------------------------------------------------------------------------------------- OTHER: Net sales: External customers 112,335 120,770 8,435 7.5 Intersegment 161,150 162,971 1,821 1.1 Total 273,485 283,741 10,256 3.8 ----------------------------------------------------------------------------------------------------------------- Operating expenses 261,125 276,081 14,956 5.7 ---------------------------------------------------------------------------------------------------------------- Operating income 12,360 7,660 -4,700 -38.0 Operating income on sales in Other(%) 4.5 2.7 ----------------------------------------------------------------------------------------------------------------- CORPORATE AND ELIMINATIONS: Net sales: Intersegment -562,332 -540,881 21,451 -- Total -562,332 -540,881 21,451 -- ----------------------------------------------------------------------------------------------------------------- Operating expenses: -556,723 -542,710 14,013 -- ----------------------------------------------------------------------------------------------------------------- Operating income (loss) -5,609 1,829 7,438 -- ----------------------------------------------------------------------------------------------------------------- CONSOLIDATED: Net sales: External customers 1,941,336 1,903,477 -37,859 -2.0 Intersegment -- -- -- Total 1,941,336 1,903,477 -37,859 -2.0 ----------------------------------------------------------------------------------------------------------------- Operating expenses 1,883,265 1,921,545 38,280 2.0 ----------------------------------------------------------------------------------------------------------------- Operating income (loss) 58,071 -18,068 -76,139 -- Operating income (loss) on consolidated net sales(%) 3.0 -0.9 -----------------------------------------------------------------------------------------------------------------
28 B) PER SHARE DATA (Yen) ------------------------------------------------------------------------- March 31, 2011 March 31, 2012 ------------------------------------------------------------------------- Shareholders' equity per share 1,275.31 1,134.64 Net income per share-basic 25.68 -61.42 Net income per share-diluted 25.15 -61.42 A reconciliation of the numerator and the denominators of the basic and diluted per share computations for income is as follows: (Millions of yen) ------------------------------------------------------------------------- March 31, 2011 March 31, 2012 ------------------------------------------------------------------------- Net income (loss) 18,630 -44,560 Effect of dilutive securities -38 0 ------------------------------------------------------------------------- Diluted net income (loss) 18,592 -44,560 ------------------------------------------------------------------------- (Shares) ------------------------------------------------------------------------- March 31, 2011 March 31, 2012 ------------------------------------------------------------------------- Weight average common shares outstanding 725,554,477 725,554,477 Effect of dilutive securities 13,739,286 0 ------------------------------------------------------------------------- Diluted common shares outstanding 739,293,763 725,554,477 ------------------------------------------------------------------------- C) SUBSEQUENT EVENTS Not applicable. 29 5. NON-CONSOLIDATED PERFORMANCE (1) BALANCE SHEETS (NON-CONSOLIDATED) March 31, 2011 and 2012
Assets (Millions of yen) --------------------------------------------------------------------------------------------------------------- March 31, 2011 March 31, 2012 Change --------------------------------------------------------------------------------------------------------------- Current Assets 563,320 466,274 -97,046 Cash on hand and in banks 12,296 9,436 -2,860 Notes receivable-trade 2,814 1,795 -1,019 Accounts receivable-trade 169,172 165,852 -3,320 Marketable securities 66,677 64,387 -2,290 Finished goods 22,126 25,890 3,764 Raw materials 4,228 5,724 1,496 Work-in-process 7,582 8,671 1,089 Supplies 8,520 9,612 1,092 Prepaid expenses 7,493 7,868 375 Deferred tax assets 12,353 18,050 5,697 Accounts receivable-other 29,378 22,196 -7,182 Short-term loans receivable 218,615 124,595 -94,020 Other current assets 2,184 2,221 37 Allowance for doubtful accounts -124 -31 93 Fixed Assets 689,100 668,908 -20,192 Tangible Fixed Assets 136,777 130,720 -6,057 Buildings 65,570 61,478 -4,092 Structures 3,551 3,289 -262 Machinery and equipment 25,569 21,066 -4,503 Vehicles 5 7 2 Tools 10,475 9,446 -1,029 Land 28,769 28,339 -430 Leased assets 127 71 -56 Construction in progress 2,708 7,020 4,312 Intangible Fixed Assets 62,335 44,217 -18,118 Goodwill 16,770 7,762 -9,008 Patent rights 1,884 1,460 -424 Leased property rights 7,381 7,278 -103 Trademark rights 6,826 1,722 -5,104 Software 23,299 23,343 44 Leased assets 66 36 -30 Other intangible fixed assets 6,106 2,613 -3,493 Long-term loans to affiliates Investments and Other Assets 489,987 493,971 3,984 Investment securities 17,093 16,415 -678 Affiliates' securities 351,872 319,792 -32,080 Investment in affiliates 19,252 19,252 -- Long-term loans receivable 92,172 182,591 90,419 Bankruptcy and rehabilitation debts 322 223 -99 Deferred tax assets -- 2,265 2,265 Lease deposit 6,629 6,328 -301 Other investments 3,185 4,253 1,068 Allowance for doubtful accounts -540 -57,151 -56,611 --------------------------------------------------------------------------------------------------------------- Total Assets 1,252,421 1,135,182 -117,239 --------------------------------------------------------------------------------------------------------------- Reference: Exchange rate March 31, 2012 March 31, 2012 US$ 1 83.15 82.19 EURO 1 117.57 109.80
30
March 31, 2011 and 2012 Liabilities (Millions of yen) --------------------------------------------------------------------------------------------------------------- March 31, 2011 March 31, 2012 Change --------------------------------------------------------------------------------------------------------------- Current Liabilities 205,750 263,755 58,005 Notes payable-trade 2,107 1,885 -222 Accounts payable-trade 116,267 116,550 283 Bonds maturing within one year 22,221 -- -22,221 Short-term borrowings 6,300 74,000 67,700 Leased obligations 403 217 -186 Accounts payable-other 9,433 21,635 12,202 Accrued expenses 27,870 29,465 1,595 Accrued corporate tax 709 303 -406 Advances by customers 4,880 4,895 15 Deposits payable 2,054 2,138 84 Accrued bonuses 9,214 7,447 -1,767 Accrued directors' bonuses 82 -- -82 Warranty reserve 1,000 875 -125 Derivative liabilities, at fair value 1,926 3,317 1,391 Other current liabilities 1,276 1,023 -253 Fixed Liabilities 294,533 272,157 -22,376 Bonds 125,000 125,000 -- Long-term borrowings 160,800 136,800 -24,000 Leased obligations 376 81 -295 Deferred tax liabilities 409 -- -409 Long accounts payable-other 265 262 -3 Retirement benefit obligation 5,167 4,289 -878 Asset retirement obligations 2,026 2,092 66 Other fixed liabilities 487 3,631 3,144 --------------------------------------------------------------------------------------------------------------- Total Liabilities 500,283 535,912 35,629 ---------------------------------------------------------------------------------------------------------------
Net assets (Millions of yen) --------------------------------------------------------------------------------------------------------------- March 31, 2011 March 31, 2012 Change --------------------------------------------------------------------------------------------------------------- Stockholders' equity 747,607 594,677 -152,930 Common Stock 135,364 135,364 -- Additional paid-in-capital 180,804 180,804 -- Legal capital reserve 180,804 180,804 -- Retained earnings 468,112 315,461 -152,651 Legal reserve 14,955 14,955 -- Other retained earnings 453,157 300,506 -152,651 Reserve for deferral of capital gain on property 450 3,453 3,003 Reserve for special depreciation 411 351 -60 Reserve for social contribution 0 3 3 General reserve 430,350 415,350 -15,000 Retained earnings brought forward 21,946 -118,651 -140,597 Treasury stock -36,674 -36,953 -279 Difference of appreciation and conversion 4,530 4,592 62 Net unrealized holding gains on securities 4,530 4,592 62 Total Net assets 752,137 599,269 -152,868 --------------------------------------------------------------------------------------------------------------- Total Liabilities and Net assets 1,252,421 1,135,182 -117,239 ---------------------------------------------------------------------------------------------------------------
31 (2) STATEMENT OF INCOME (NON-CONSOLIDATED)
For the years ended March 31, 2011 and 2012. (Millions of yen) ---------------------------------------------------------------------------------------------------------------------- Year ended Year ended March 31, 2011 March 31, 2012 Change (%) ---------------------------------------------------------------------------------------------------------------------- Net sales 842,297 795,471 -46,826 (-5.6) Cost of sales 644,502 620,179 -24,323 (-3.8) Percentage of net sales (%) 76.5 78.0 Gross profit 197,795 175,292 -22,503 (-11.4) Percentage of net sales (%) 23.5 22.0 Selling, general and administrative expenses 204,193 207,219 3,026 (1.5) Percentage of net sales (%) 24.2 26.0 Selling expenses 34,355 27,058 -7,297 General and administrative expenses 169,836 180,161 10,325 Operating loss -6,397 -31,927 -25,530 -- Percentage of net sales (%) -0.8 -4.0 Non-operating income 35,818 34,640 -1,178 (-3.3) Percentage of net sales (%) 4.3 4.4 Interest 4,231 4,002 -229 Interest on securities 115 113 -2 Dividends 27,516 23,693 -3,823 Miscellaneous income 3,954 6,831 2,877 Non-operating expenses 22,293 10,116 -12,177 (-54.6) Percentage of net sales (%) 2.6 1.3 Interest 2,822 3,330 508 Interest on bonds 1,539 1,617 78 Exchange loss 15,725 4,312 -11,413 Loss on disposition of fixed assets 575 505 -70 Miscellaneous expenses 1,631 350 -1,311 Ordinary income (loss) 7,126 -7,402 -14,528 -- Percentage of net sales (%) 0.8 -0.9 Extraordinary losses 3,641 133,046 129,405 (3554.1) Percentage of net sales (%) 0.4 16.7 Provision of allowance for doubtful accounts of -- 56,723 56,723 long-term loans Loss on valuation of affiliates' securities -- 51,113 51,113 Impairment of fixed assets 705 16,740 16,035 Special extra retirement payments -- 8,469 8,469 Loss on adjustment for changes of accounting standard for asset retirement obligations 745 -- -745 Loss on disaster 2,190 -- -2,190 Income (loss) before income taxes 3,485 -140,449 -143,934 -- Percentage of net sales (%) 0.4 -17.7 Provision for income taxes -4,352 -3,635 717 -- Percentage of net sales (%) -0.5 -0.5 Refund of income taxes -760 -321 439 -- Percentage of net sales (%) -0.1 0.0 Corporate and other tax adjustments -1,116 -7,813 -6,697 -- Percentage of net sales (%) -0.1 -1.0 Net income (loss) 9,714 -128,678 -138,392 -- Percentage of net sales (%) 1.2 -16.2 ---------------------------------------------------------------------------------------------------------------------- Reference: Exchange rate Year ended Year ended March 31, 2011 March 31, 2012 US$ 1 85.85 78.98 EURO 1 112.99 108.74
32 (3) STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (NON-CONSOLIDATED)
RESULTS FOR THE PERIOD FROM APRIL 1, 2010 TO MARCH 31, 2011 (Millions of yen) ------------------------------------------------------------------------------------------------------------------------------ Difference of appreciation Stockholders' equity and conversion ---------------------------------------------------------------------------- -------------- Additional Retained paid-in-capital earnings Net ------------------------ --------------------- unrealized Legal Other Other Total holding Total Common capital additional Legal retained Treasury stockholders' gains on Net stock reserve paid-in-capital reserve earnings (*) stock equity securities assets ----------------------------------------------------------------------------- -------- ------------- -------------- ----------- Beginning balance 135,364 180,804 -- 14,955 467,415 -36,592 761,947 5,118 767,065 Changes in the term Dividends from surplus -23,943 -23,943 -23,943 Net income 9,714 9,714 9,714 Purchase of treasury stock -156 -156 -156 Disposal of treasury stock -28 74 46 46 Net change of items other than -588 -588 stockholders' equity ------------------------------------------------------------------------------------------------------------------------------ Total changes in the term -- -- -- -- -14,258 -82 -14,340 -588 -14,928 ------------------------------------------------------------------------------------------------------------------------------ Ending balance 135,364 180,804 -- 14,955 453,157 -36,674 747,607 4,530 752,137 ------------------------------------------------------------------------------------------------------------------------------
(*) Other retained earnings (Millions of yen) -------------------------------------------------------------------------------------------------------------------------- Reserve for Reserve for Retained deferral of Reserve for warranty on Reserve earnings Total Other capital gain special computer for social General brought retained on property depreciation programs contribution reserve forward earnings -------------------------------------------------------------------------------------------------------------------------- Beginning balance 450 161 29 1 430,350 36,423 467,415 -------------------------------------------------------------------------------------------------------------------------- Changes in the term Dividends from surplus -23,943 -23,943 Transfer to reserve for deferral of capital gain on property 17 -17 -- Reversal of reserve for deferral of capital gain on property -17 17 -- Transfer to reserve for special depreciation 314 -314 -- Reversal of reserve for special depreciation -65 65 -- Reversal of reserve for warranty on computer programs -29 29 -- Transfer of reserve for social contribution 87 -87 -- Reversal of reserve for social contribution -88 88 -- Disposal of Treasury stock -28 -28 Net income 9,714 9,714 -------------------------------------------------------------------------------------------------------------------------- Total changes in the term 0 250 -29 -1 -- -14,477 -14,258 -------------------------------------------------------------------------------------------------------------------------- Ending balance 450 411 -- 0 430,350 21,946 453,157 --------------------------------------------------------------------------------------------------------------------------
33
RESULTS FOR THE PERIOD FROM APRIL 1, 2011 TO MARCH 31, 2012 (Millions of yen) --------------------------------------------------------------------------------------------------------------------------------- Difference of appreciation and Stockholders' equity conversion --------------------------------------------------------------------------------------- Additional Retained paid-in-capital earnings Net ------------------------------------------- unrealized Legal Other Other Total holding Total Common capital additional Legal retained Treasury stockholders' gains on Net stock reserve paid-in-capital reserve earnings(*) stock equity securities assets --------------------------------------------------------------------------------------------------------------------------------- Beginning balance 135,364 180,804 -- 14,955 453,157 -36,674 747,607 4,530 752,137 --------------------------------------------------------------------------------------------------------------------------------- Changes in the term Dividends from surplus -23,942 -23,942 -23,942 Net loss -128,678 -128,678 -128,678 Purchase of treasury stock -327 -327 -327 Disposal of treasury stock -31 48 17 17 Net change of items other than stockholders' equity 62 62 --------------------------------------------------------------------------------------------------------------------------------- Total changes in the term -- -- -- -- -152,650 -279 -152,930 62 -152,868 --------------------------------------------------------------------------------------------------------------------------------- Ending balance 135,364 180,804 -- 14,955 300,506 -36,953 594,677 4,592 599,269 ---------------------------------------------------------------------------------------------------------------------------------
(*) Other retained earnings (Millions of yen) ---------------------------------------------------------------------------------------------------------- Reserve for Retained deferral of Reserve for Reserve for earnings Total Other capital gain special social General brought retained on property depreciation contribution reserve forward earnings ---------------------------------------------------------------------------------------------------------- Beginning balance 450 411 0 430,350 21,946 453,157 ---------------------------------------------------------------------------------------------------------- Changes in the term Dividends from surplus -23,942 -23,942 Transfer to reserve for deferral of capital gain on property 3,164 -3,164 -- Reversal of reserve for deferral of capital gain on property -161 161 -- Transfer to reserve for special depreciation 25 -25 -- Reversal of reserve for special depreciation -84 84 -- Transfer of reserve for social contribution 94 -94 -- Reversal of reserve for social contribution -91 91 -- Reversal of general reserve -15,000 15,000 -- Disposal of Treasury stock -31 -31 Net loss -128,678 -128,678 ---------------------------------------------------------------------------------------------------------- Total changes in the term 3,003 -59 3 -15,000 -140,597 -152,650 ---------------------------------------------------------------------------------------------------------- Ending balance 3,453 351 3 415,350 -118,651 300,506 ----------------------------------------------------------------------------------------------------------
34 SIGNIFICANT ACCOUNTING POLICIES (NON-CONSOLIDATED) 1. Accounting policy for assets (1) Inventories are stated at cost caused by profitability of inventories has declined. (2) Securities Securities of subsidiaries and affiliates are stated at moving average cost. Other securities: Marketable securities are marked to market based on the market price at the end of the term and other factors (accounting for all valuation differences with the full capital injection method; the cost of securities sold is valued at moving average cost.) Non-marketable securities are stated at cost based on the moving average method. (3) Derivatives are stated at market value. 2. Depreciation of fixed assets (1) Tangible fixed assets Tangible fixed assets are depreciated using the declining balance method. For buildings (excluding fixtures) secured on and after April 1, 1998, however, Ricoh uses straight-line depreciation. (2) Intangible fixed assets Ricoh uses straight-line depreciation for intangible fixed assets. With software for sale in the marketplace, however, the Company records the larger of a depreciation based on projected sales profits or a uniform depreciation based on a projected effective sales period for the balance. The initially projected effective sale term is three years. With software for internal use, the company uses straight-line depreciation on a usable period of five to ten years. (3) Leased assets Finance leases for which ownership does not transfer to lessees; Ricoh uses straight-line depreciation for Leased assets regarding Lease-term as useful life. In addition, Ricoh uses accounting for in a similar manner with ordinary sale and purchase transactions, regard to Lease contracts on before April 1,2008. 3. Accounting for deferred assets Expenses of new stock issued are accounted for as the full amount at the time of the expenditure. Expenses of new stock issued at the end of the year is included in "Miscellaneous expenses". Discounts on bond issues are deferred and amortized uniformly over a period(5years) up to the maturity of the relevant bond. 4. Basis for provision of reserves (1) Allowance for Doubtful Accounts The allowance for doubtful accounts is provided to cover possible losses from bad debts and represents possible individual doubtful accounts based on historical default rates and the potential for irrecoverableness. (2) Reserve for Accrued Bonuses The reserve for accrued bonuses is provided by estimating the amount of bonuses payable to employees for the current financial year under our corporate rules for calculating such bonus payment. (3) Reserve for Accrued Directors' Bonuses The reserve for accrued bonuses is provided by estimating the amount of bonuses payable to Directors for the current of financial year. (4) Warranty reserve To cover product after-sales service expenses, the Company calculates the product warranty reserve based on projected service costs during warranty terms. (5) Reserve for Retirement Benefit Obligations To cover projected employee benefits, the Company records the estimated obligations at the end of current fiscal year based on projected year-end benefit obligations and plan assets. The company uses straight-line depreciation for actuarial gains or losses and for prior service costs over averaged remaining employment term. (15years) 5. Hedge accounting (1) Hedge Accounting Methods With interest swaps, RICOH adopts exceptional treatments if it meets necessary requirements. (2) Hedging Instruments and Targets Targets: Interests of long-term borrowings Hedging Instruments: Interest swaps (3) Hedging policies In keeping with its internal Market Risk Management Rules, Ricoh uses derivatives to manage the exposure of its assets and liabilities to market fluctuations. (4) Hedge Effectiveness Ricoh assesses the effectiveness of hedges by analyzing the ratios of the total market fluctuations of hedged targets and instruments. Ricoh omits assessment of effectiveness regarding interest swaps using exceptional treatments. 6. Others (1) Consumption taxes Consumption taxes are excluded from revenues and expenses. The refundable consumption tax at the end of the year is included in "Other current assets", after offsetting suspense payments and receipt of consumption taxes and etc. (2) The consolidated tax system The consolidated tax system is applied from fiscal year 2009. 35 NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS
(BALANCE SHEETS) ------------------------------------------------------------------------------------- March 31, 2011 March 31, 2012 ------------------------------------------------------------------------------------- 1. Accumulated depreciation on tangible fixed assets 418,972 438,076 2. Guarantee obligations 227 25,669
(LEASE TRANSACTION) Ricoh left note for lease transaction out because the Company discloses financial statements on the electronic disclosure system, regulated in paragraph 30-6 of the Financial Instruments and Exchange Law No. 27. (SECURITIES) Fair values of subsidiaries and affiliates 1. Year ended March 31, 2011
(Millions of yen) Balance Sheets Fair value Difference Securities of consolidated companies 4,229 31,111 26,882 Securities of affiliated companies 4,927 26,616 21,689 ------------------------------------------------------------------------------ Total 9,156 57,727 48,571
2. Year ended March 31, 2012
(Millions of yen) Balance Sheets Fair value Difference Securities of consolidated companies 4,229 29,231 25,001 Securities of affiliated companies 4,927 24,366 19,439 ------------------------------------------------------------------------------ Total 9,156 53,597 44,440
(STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY) Treasury stock 1. March 31, 2011
------------------------------------------------------------------------------------------- Number of shares held Number of shares held Class of shares at March 31, 2010 Increase Decrease at March 31, 2011 ------------------------------------------------------------------------------------------- Common shares (shares) 19,320,723 128,167 39,480 19,409,410 -------------------------------------------------------------------------------------------
Reason for the Changes Increase: Purchase of odd lot shares of common stock 128,167 shares Purchase of treasury stock Decrease: Release of treasury stock to allow shareholders with less than a full lot to complete their holdings 39,480 shares Treasury stock 2. March 31, 2012
------------------------------------------------------------------------------------------- Number of shares held Number of shares held Class of shares at March 31, 2011 Increase Decrease at March 31, 2012 ------------------------------------------------------------------------------------------- Common shares (shares) 19,409,410 477,350 25,700 19,831,060 -------------------------------------------------------------------------------------------
Reason for the Changes Increase: Purchase of odd lot shares of common stock 477,350 shares Purchase of treasury stock Decrease: Release of treasury stock to allow shareholders with less than a full lot to complete their holdings 25,700 shares 36 (TAX EFFECT ACCOUNTING) 1. The prime components of deferred tax assets and liabilities are as follows:
(Millions of yen) ----------------------------------------------------------------------------------------------- March 31, 2011 March 31, 2012 ----------------------------------------------------------------------------------------------- Deferred tax assets: Retirement benefit obligation 11,240 10,463 Accrued bonuses 3,766 2,818 Net operating loss carried forward 3,201 15,973 Loss on valuation of securities 2,834 20,609 Depreciation and amortization 1,083 4,167 Inventory revaluation 965 1,035 Asset retirement obligations 820 742 Allowance for doubtful accounts 175 20,277 Other 5,570 5,104 Subtotal 29,654 81,188 ----------------------------------------------------------------------------------------------- Valuation allowance -4,268 -48,076 Total deferred tax assets 25,386 33,112 -----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------- March 31, 2011 March 31, 2012 ----------------------------------------------------------------------------------------------- Deferred tax liabilities: Retirement benefit trust establishment -6,745 -5,907 Net unrealized holding gains on securities -3,084 -2,525 Succeeded intangible asset (*) -2,306 -1,837 Removal cost in correspond to asset retirement obligations -466 -389 Reserve for deferral of capital gain on property -306 -1,929 Reserve for special depreciation -279 -209 Other -256 -- Total deferred tax liabilities -13,442 -12,796 -----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------- March 31, 2011 March 31, 2012 ----------------------------------------------------------------------------------------------- Net deferred tax assets/liabilities 11,944 20,316 Included in current assets 12,353 18,050 Included in investment and other assets -- 2,265 Included in fixed liabilities -409 -- -----------------------------------------------------------------------------------------------
* Deferred tax liability for the non-deductible intangible asset succeeded from Ricoh Printing Systems, Ltd. 2. Difference in normal effective statutory tax rate and effective tax rate after applying tax effect accounting Normal effective statutory tax rate 40.5% (Reconciliation) Permanently non-taxable income 6.6 Effect of enacted changes in tax laws and rates on Japanese tax -1.2 Valuation allowance -35.5 Other -2.1 Effective tax rate 8.3% The corporate tax rate has been changed due to new laws legislated on December 2, 2011. As a result of this law, the statutory tax rate applied when calculating deferred tax assets and liabilities of temporary differences that are expected to be eliminated, after the fiscal year ending March 31, 2013 and 2016 decreased from 40.5% to 37.8% and 35.4% respectively. As a result, the net amount of deffered tax assets and liabilities decreased by 1,331 million yen, while net unrealized holding gains on securities increased by 358 million and corporate and other tax adjustments in 2011 increased by 1,689 million yen. 37 -APPENDIX- YEAR ENDED MARCH 31, 2012 1. CONSOLIDATED QUARTERLY PERFORMANCE OUTLINE
(1) Financial Statements Summary (Quarterly) (Billions of yen) -------------------------------------------------------------------------------------------------------- 1Q 2Q 3Q 4Q Change(%) -------------------------------------------------------------------------------------------------------- Net sales 467.3 471.6 457.7 506.6 1.4 Gross profit 197.5 189.2 181.4 184.3 -2.6 Operating income (loss) 11.3 -13.3 -34.9 18.9 235.2 Income (loss) before income taxes 9.2 -19.0 -38.8 16.6 316.9 Net income (loss) 4.9 -13.7 -44.3 8.6 -440.4 -------------------------------------------------------------------------------------------------------- Net income (loss) per share (yen) 6.80 -18.92 -61.19 11.89 -- Net income (loss) per share-diluted (yen) 6.79 -18.92 -61.19 11.89 -- -------------------------------------------------------------------------------------------------------- Total assets 2,254.8 2,179.8 2,186.3 2,289.3 -- Shareholders' investment 911.4 856.6 798.9 822.7 -- -------------------------------------------------------------------------------------------------------- Shareholders' investment per share (yen) 1,256.37 1,180.77 1,101.24 1,134.64 -- -------------------------------------------------------------------------------------------------------- Cash flows from operating activities 4.8 10.6 -41.2 36.8 -- Cash flows from investing activities -24.9 -28.0 -35.9 -23.5 -- Cash flows from financing activities 12.9 -7.0 96.7 -14.7 -- Cash and cash equivalents at end of period 162.7 133.6 151.8 156.2 -- -------------------------------------------------------------------------------------------------------- (2) Capital expenditures and Depreciation (Billions of yen) ------------------------------------------------------------------------------------------------------ 1Q 2Q 3Q 4Q ------------------------------------------------------------------------------------------------------ Capital expenditures 16.8 20.0 17.0 19.3 Depreciation for tangible fixed assets 15.6 15.2 15.9 18.1 ------------------------------------------------------------------------------------------------------ (3) R&D Expenditures (Billions of yen) ------------------------------------------------------------------------------------------------------ 1Q 2Q 3Q 4Q ------------------------------------------------------------------------------------------------------ R&D expenditures 28.0 31.7 29.5 29.7 R&D expenditures / Total Sales (%) 6.0 6.7 6.5 5.9 ------------------------------------------------------------------------------------------------------ (4) Interest income (expenses) net (Billions of yen) ------------------------------------------------------------------------------------------------------ 1Q 2Q 3Q 4Q ------------------------------------------------------------------------------------------------------ Interest income (expenses) net -0.8 -1.0 -1.0 -0.8 ------------------------------------------------------------------------------------------------------ (5) Exchange Rate ------------------------------------------------------------------------------------------------------ 1Q 2Q 3Q 4Q ------------------------------------------------------------------------------------------------------ Exchange rate (Yen/US$) 81.71 77.94 77.39 79.32 Exchange rate (Yen/EURO) 117.62 110.31 104.29 104.04 ------------------------------------------------------------------------------------------------------
*Ricoh has accounted for subsidiaries that changed their fiscal year-ends from December 31 to March 31 as if their fiscal year-ends in prior years were March 31 and has restated prior-year consolidated financial statements. The changes from the previous corresponding period is based on the figures retrospectively adjusted. Please see (8) Changes in Significant Accounting Policies (Consolidated) on page 24. A1 2. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Three months ended March 31, 2011 and 2012) (Millions of yen) -------------------------------------------------------------------------------------------------------------------------------- Three months ended Three months ended Change excluding March 31, 2011 March 31, 2012 Change % exchange impact % -------------------------------------------------------------------------------------------------------------------------------- [Imaging & Solutions] Imaging Solutions 400,189 389,478 -10,711 -2.7 2,071 0.5 Percentage of net sales (%) 80.1 76.9 Domestic 141,090 145,972 4,882 3.5 4,882 3.5 Overseas 259,099 243,506 -15,593 -6.0 -2,811 -1.1 Network System Solutions 45,573 55,584 10,011 22.0 10,351 22.7 Percentage of net sales (%) 9.1 11.0 Domestic 41,524 50,959 9,435 22.7 9,435 22.7 Overseas 4,049 4,625 576 14.2 916 22.6 Imaging & Solutions Total 445,762 445,062 -700 -0.2 12,422 2.8 Percentage of net sales (%) 89.2 87.9 Domestic 182,614 196,931 14,317 7.8 14,317 7.8 Overseas 263,148 248,131 -15,017 -5.7 -1,895 -0.7 The Americas 127,589 117,073 -10,516 -8.2 -5,939 -4.7 Europe 106,395 101,190 -5,205 -4.9 2,294 2.2 Other 29,164 29,868 704 2.4 1,750 6.0 -------------------------------------------------------------------------------------------------------------------------------- [Industrial Products] Industrial Products 24,694 22,497 -2,197 -8.9 -1,735 -7.0 Percentage of net sales (%) 4.9 4.4 Domestic 14,502 11,583 -2,919 -20.1 -2,919 -20.1 Overseas 10,192 10,914 722 7.1 1,184 11.6 The Americas 2,858 3,226 368 12.9 501 17.5 Europe 3,485 3,093 -392 -11.2 -181 -5.2 Other 3,849 4,595 746 19.4 864 22.4 -------------------------------------------------------------------------------------------------------------------------------- [Other] Other 29,368 39,051 9,683 33.0 9,933 33.8 Percentage of net sales (%) 5.9 7.7 Domestic 28,640 32,803 4,163 14.5 4,163 14.5 Overseas 728 6,248 5,520 758.2 5,770 792.6 The Americas 94 1,273 1,179 1,254.3 1,263 1,343.6 Europe 247 2,116 1,869 756.7 1,996 808.1 Other 387 2,859 2,472 638.8 2,511 648.8 -------------------------------------------------------------------------------------------------------------------------------- Grand Total 499,824 506,610 6,786 1.4 20,620 4.1 Percentage of net sales (%) 100.0 100.0 Domestic 225,756 241,317 15,561 6.9 15,561 6.9 Percentage of net sales (%) 45.2 47.6 Overseas 274,068 265,293 -8,775 -3.2 5,059 1.8 Percentage of net sales (%) 54.8 52.4 The Americas 130,541 121,572 -8,969 -6.9 -4,175 -3.2 Percentage of net sales (%) 26.1 24.0 Europe 110,127 106,399 -3,728 -3.4 4,109 3.7 Percentage of net sales (%) 22.0 21.0 Other 33,400 37,322 3,922 11.7 5,125 15.3 Percentage of net sales (%) 6.7 7.4 -------------------------------------------------------------------------------------------------------------------------------- Reference: Exchange rate US$ 1 Yen 82.32 Yen 79.32 Yen-3.00 EURO 1 Yen 112.51 Yen 104.04 Yen-8.47
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 Industrial Products network related software Thermal media, optical equipment, semiconductor devices, electronic components and measuring equipment Other Digital cameras
*Product lines included in Product Category was changed in the first quarter of fiscal year 2011. Service&Support, such as MDS(Managed Document Services) was changed from Network System Solutions to Imaging Solutions. The reclassification was made to the prior year's figures to conform with the current year's presentation. *Ricoh has accounted for subsidiaries that changed their fiscal year-ends from December 31 to March 31 as if their fiscal year-ends in prior years were March 31 and has restated prior-year consolidated financial statements. The changes from the previous corresponding period is based on the figures retrospectively adjusted. Please see (8) Changes in Significant Accounting Policies (Consolidated) on page 24. A2
(Year ended March 31, 2011 and 2012) (Millions of yen) -------------------------------------------------------------------------------------------------------------------------------- Year ended Year ended Change excluding March 31, 2011 March 31, 2012 Change % exchange impact % -------------------------------------------------------------------------------------------------------------------------------- [Imaging & Solutions] Imaging Solutions 1,531,219 1,471,827 -59,392 -3.9 -1,774 -0.1 Percentage of net sales (%) 78.9 77.3 Domestic 525,178 529,085 3,907 0.7 3,907 0.7 Overseas 1,006,041 942,742 -63,299 -6.3 -5,681 -0.6 Network System Solutions 181,411 198,945 17,534 9.7 18,420 10.2 Percentage of net sales (%) 9.3 10.5 Domestic 166,953 181,832 14,879 8.9 14,879 8.9 Overseas 14,458 17,113 2,655 18.4 3,541 24.5 Imaging & Solutions Total 1,712,630 1,670,772 -41,858 -2.4 16,646 1.0 Percentage of net sales (%) 88.2 87.8 Domestic 692,131 710,917 18,786 2.7 18,786 2.7 Overseas 1,020,499 959,855 -60,644 -5.9 -2,140 -0.2 The Americas 507,934 453,570 -54,364 -10.7 -15,239 -3.0 Europe 400,635 389,931 -10,704 -2.7 4,660 1.2 Other 111,930 116,354 4,424 4.0 8,439 7.5 -------------------------------------------------------------------------------------------------------------------------------- [Industrial Products] Industrial Products 106,830 96,584 -10,246 -9.6 -8,432 -7.9 Percentage of net sales (%) 5.5 5.1 Domestic 65,428 52,628 -12,800 -19.6 -12,800 -19.6 Overseas 41,402 43,956 2,554 6.2 4,368 10.6 The Americas 11,665 12,394 729 6.2 1,768 15.2 Europe 13,535 12,626 -909 -6.7 -493 -3.6 Other 16,202 18,936 2,734 16.9 3,093 19.1 -------------------------------------------------------------------------------------------------------------------------------- [Other] Other 121,876 136,121 14,245 11.7 14,862 12.2 Percentage of net sales (%) 6.3 7.1 Domestic 118,260 122,880 4,620 3.9 4,620 3.9 Overseas 3,616 13,241 9,625 266.2 10,242 283.2 The Americas 401 2,764 2,363 589.3 2,584 644.4 Europe 1,019 5,985 4,966 487.3 5,191 509.4 Other 2,196 4,492 2,296 104.6 2,467 112.3 -------------------------------------------------------------------------------------------------------------------------------- Grand Total 1,941,336 1,903,477 -37,859 -2.0 23,076 1.2 Percentage of net sales (%) 100.0 100.0 Domestic 875,819 886,425 10,606 1.2 10,606 1.2 Percentage of net sales (%) 45.1 46.6 Overseas 1,065,517 1,017,052 -48,465 -4.5 12,470 1.2 Percentage of net sales (%) 54.9 53.4 The Americas 520,000 468,728 -51,272 -9.9 -10,887 -2.1 Percentage of net sales (%) 26.8 24.6 Europe 415,189 408,542 -6,647 -1.6 9,358 2.3 Percentage of net sales (%) 21.4 21.5 Other 130,328 139,782 9,454 7.3 13,999 10.7 Percentage of net sales (%) 6.7 7.3 -------------------------------------------------------------------------------------------------------------------------------- Reference: Exchange rate US$ 1 Yen 85.77 Yen 79.08 Yen -6.69 EURO 1 Yen 113.28 Yen 109.05 Yen -4.23
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 Industrial Products network related software Thermal media, optical equipment, semiconductor devices, electronic components and measuring equipment Other Digital cameras
*Product lines included in Product Category was changed in the first quarter of fiscal year 2011. Service&Support, such as MDS(Managed Document Services) was changed from Network System Solutions to Imaging Solutions. The reclassification was made to the prior year's figures to conform with the current year's presentation. *Ricoh has accounted for subsidiaries that changed their fiscal year-ends from December 31 to March 31 as if their fiscal year-ends in prior years were March 31 and has restated prior-year consolidated financial statements. The changes from the previous corresponding period is based on the figures retrospectively adjusted. Please see (8) Changes in Significant Accounting Policies (Consolidated) on page 24. A3 3. FORECAST OF CONSOLIDATED SALES BY PRODUCT CATEGORY
(Billions of yen) --------------------------------------------------------------------------------------------------------------------------- Year ending March 31, 2013 Half year ending September 30, 2012 -------------------------- ----------------------------------- Year ended Change Change Change Change March 31, 2012 Forecast % Forecast % Forecast % Forecast % --------------------------------------------------------------------------------------------------------------------------- [Imaging & Solutions] Imaging Solutions 1,471.8 1,457.0 -1.0 1,500.0 1.9 711.0 -2.8 743.3 1.7 Domestic 529.0 530.3 0.2 530.3 0.2 259.1 0.2 259.1 0.2 Overseas 942.7 926.7 -1.7 969.7 2.9 451.9 -4.4 484.2 2.5 Network System Solutions 198.9 209.7 5.4 210.4 5.8 103.6 5.6 104.2 6.2 Domestic 181.8 187.2 3.0 187.2 3.0 93.3 3.7 93.3 3.7 Overseas 17.1 22.5 31.5 23.2 35.8 10.3 26.6 10.9 34.0 Imaging & Solutions Total 1,670.7 1,666.7 -0.2 1,710.5 2.4 814.5 -1.8 847.5 2.2 Domestic 710.9 717.5 0.9 717.5 0.9 352.4 1.1 352.4 1.1 Overseas 959.8 949.2 -1.1 993.0 3.5 462.2 -3.9 495.1 3.0 The Americas 453.5 442.9 -2.3 466.7 2.9 219.4 -3.8 233.3 2.3 Europe 389.9 385.3 -1.2 399.0 2.3 182.8 -6.0 198.2 1.9 Other 116.3 121.0 4.0 127.3 9.4 60.0 3.4 63.6 9.6 --------------------------------------------------------------------------------------------------------------------------- [Industrial Products] Industrial Products 96.5 97.1 0.5 99.4 3.0 49.7 -1.5 51.5 2.0 Domestic 52.6 50.6 -3.9 50.6 -3.9 27.0 -4.2 27.0 -4.2 Overseas 43.9 46.5 5.8 48.9 11.2 22.7 1.9 24.5 9.9 The Americas 12.3 13.3 7.3 14.0 13.3 6.4 5.3 6.8 12.5 Europe 12.6 13.5 6.9 14.1 11.8 6.7 -0.3 7.4 9.6 Other 18.9 19.7 4.0 20.7 9.5 9.6 1.3 10.3 8.4 --------------------------------------------------------------------------------------------------------------------------- [Other] Other 136.1 156.2 14.8 157.4 15.6 75.8 27.7 76.7 29.3 Domestic 122.8 133.0 8.2 133.0 8.2 65.6 13.7 65.6 13.7 Overseas 13.2 23.3 75.7 24.4 84.5 10.1 532.7 11.1 593.3 The Americas 2.7 6.1 120.7 6.7 141.3 3.2 -- 3.6 -- Europe 5.9 10.0 67.1 10.4 73.8 4.2 534.4 4.6 593.4 Other 4.4 7.2 59.4 7.4 63.8 2.7 281.3 2.9 309.2 --------------------------------------------------------------------------------------------------------------------------- Grand Total 1,903.4 1,920.0 0.9 1,967.3 3.4 940.0 0.1 975.7 3.9 Domestic 886.4 901.0 1.6 901.0 1.6 445.0 2.4 445.0 2.4 Overseas 1,017.0 1,019.0 0.2 1,066.3 4.8 495.0 -1.9 530.7 5.2 The Americas 468.7 462.3 -1.4 487.4 4.0 228.9 -2.3 243.7 4.0 Europe 408.5 408.8 0.1 423.5 3.7 193.7 -4.1 210.2 4.1 Other 139.7 147.9 5.8 155.4 11.2 72.4 6.0 76.8 12.6 ---------------------------------------------------------------------------------------------------------------------------
*Excluding foreign exchange impact
Reference: Year ended March 31, 2012 Year ending March 31, 2013 Half year ending September 30, 2012 Exchange rate (Results) (Forecast) (Forecast) US$ 1 Yen 79.08 Yen 75.00 Yen 75.00 EURO 1 Yen 109.05 Yen 105.00 Yen 105.00
Each category includes the following product line: Imaging Solutions Digital PPCs, color PPCs, digital duplicators, facsimile machines, analog PPCs, diazo copiers, scanners, MFPs(multifunctional printers), laser printers and software Network System Solutions Personal computers, servers, network systems and Industrial Products network related software Thermal media, optical equipment, semiconductor devices, electronic components and measuring equipment Other Digital cameras
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