0000317891-12-000018.txt : 20120731 0000317891-12-000018.hdr.sgml : 20120731 20120731074640 ACCESSION NUMBER: 0000317891-12-000018 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20120731 FILED AS OF DATE: 20120731 DATE AS OF CHANGE: 20120731 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RICOH CO LTD CENTRAL INDEX KEY: 0000317891 STANDARD INDUSTRIAL CLASSIFICATION: PHOTOGRAPHIC EQUIPMENT & SUPPLIES [3861] IRS NUMBER: 000000000 STATE OF INCORPORATION: M0 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 002-68279 FILM NUMBER: 12995285 BUSINESS ADDRESS: STREET 1: 13-1, GINZA 8-CHOME STREET 2: CHUO-KU CITY: TOKYO 104-8222 JAPAN STATE: M0 ZIP: 00000 BUSINESS PHONE: 81-3-6278-5241 MAIL ADDRESS: STREET 1: 13-1, GINZA 8-CHOME STREET 2: CHUO-KU CITY: TOKYO 104-8222 JAPAN STATE: M0 ZIP: 00000 6-K 1 383509_001.txt QUARTERLY REPORT FIRST QUARTER ENDED JUNE 30, 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 July 31, 2012 RICOH July 31, 2012 QUARTERLY REPORT First Quarter ended June 30, 2012 (Results for the Period from April 1, 2012 to June 30, 2012) PERFORMANCE OUTLINE (CONSOLIDATED)
(Billions of yen) ------------------------------------------------------------------------------------------------------- ---------------------- Three months ended Three months ended Year ending June 30, 2011 June 30, 2012 March 31, 2013 Results Results Change Forecast Change ------------------------------------------------------------------------------------------------------- ---------------------- Domestic sales 215.3 215.4 0.1% 901.0 1.6% Overseas sales 252.0 243.9 -3.2% 1,019.0 0.2% Net sales 467.3 459.3 -1.7% 1,920.0 0.9% Gross profit 197.5 189.8 -3.9% 760.0 1.0% Operating income 11.3 14.2 26.1% 70.0 -- Income before income taxes 9.2 12.2 32.2% 62.5 -- Net income attributable to Ricoh Company, Ltd. 4.9 6.5 32.5% 33.0 -- ------------------------------------------------------------------------------------------------------- ---------------------- Exchange rate (Yen/US$) 81.71 80.23 -1.48 76.31 -2.77 Exchange rate (Yen/EURO) 117.62 103.06 -14.56 100.77 -8.28 ------------------------------------------------------------------------------------------------------- ---------------------- Net income attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) 6.80 9.02 2.22 45.51 106.93 Net income attributable to Ricoh Company, Ltd. shareholders per share-diluted (yen) 6.79 9.02 2.23 45.51 106.93 ------------------------------------------------------------------------------------------------------- ---------------------- Cash flows from operating activities 4.8 8.8 3.9 -- -- Cash flows from investing activities -24.9 -24.1 0.7 -- -- Cash flows from financing activities 12.9 12.4 -0.5 -- -- Cash and cash equivalents at end of period 162.7 148.5 -14.2 -- -- ------------------------------------------------------------------------------------------------------- ---------------------- Capital expenditures 16.8 19.1 2.3 83.0 9.7 Depreciation for tangible fixed assets 15.6 14.7 -0.9 65.0 0.1 R&D expenditures 28.0 27.0 -0.9 117.0 -2.0 ------------------------------------------------------------------------------------------------------- ----------------------
------------------------------------------------------------------------------------------------------- March 31, 2012 June 30, 2012 Change ------------------------------------------------------------------------------------------------------- Total assets 2,289.3 2,243.1 -46.2 Ricoh Company, Ltd. shareholders' equity 822.7 792.4 -30.2 Interest-bearing debt 741.8 758.8 16.9 ------------------------------------------------------------------------------------------------------- Ricoh Company, Ltd. shareholders' equity ratio (%) 35.9 35.3 -0.6 ------------------------------------------------------------------------------------------------------- Ricoh Company, Ltd. shareholders' equity per share (yen) 1,134.64 1,092.90 -41.74 -------------------------------------------------------------------------------------------------------
RICOH COMPANY, LTD. * The Company bases the forecast estimates for the fiscal 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. * During the previous fiscal year, 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 consolidated financial statements for the first quarter of fiscal year 2011. 1 RICOH COMPANY, LTD. AND CONSOLIDATED SUBSIDIARIES FINANCIAL HIGHLIGHTS FOR THE FIRST QUARTER ENDED JUNE 30, 2012 (U.S. GAAP FINANCIAL INFORMATION) 1. RESULTS FOR THE PERIOD FROM APRIL 1, 2012 TO JUNE 30, 2012 (1) Operating Results
(Millions of yen) --------------------------------------------------------------------------------------- Three months ended Three months ended June 30, 2011 June 30, 2012 --------------------------------------------------------------------------------------- Net sales 467,393 459,387 (% change from the previous corresponding period) -3.2 -1.7 Operating income 11,326 14,281 (% change from the previous corresponding period) -48.2 26.1 Income before income taxes 9,287 12,275 (% change from the previous corresponding period) -40.1 32.2 Net income attributable to Ricoh Company, Ltd. 4,933 6,537 (% change from the previous corresponding period) -32.7 32.5 Net income attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) 6.80 9.02 Net income attributable to Ricoh Company, Ltd. shareholders per share-diluted (yen) 6.79 9.02 ---------------------------------------------------------------------------------------
Notes: i. Comprehensive income: Yen -23,251 million ( - %) (Yen -661 million ( - %) in income in previous fiscal year) (2) Financial Position (Millions of yen) ------------------------------------------------------------------------------ March 31, 2012 June 30, 2012 ------------------------------------------------------------------------------ Total assets 2,289,358 2,243,118 Total equity 879,018 849,272 Ricoh Company, Ltd. shareholders' equity 822,704 792,438 Ricoh Company, Ltd. shareholders' equity ratio (%) 35.9 35.3 ------------------------------------------------------------------------------ 2. DIVIDEND INFORMATION ------------------------------------------------------------------------------- Year ended Year ending March 31, 2012 March 31, 2013 (Results) (Forecast) ------------------------------------------------------------------------------- Cash dividends, applicable to the year (yen) 25.00 25.00 Interim (yen) 16.50 12.50 Year-end (yen) 8.50 12.50 ------------------------------------------------------------------------------- Notes: Revision of expected dividends during this period: No 3. FORECAST OF OPERATING RESULTS FROM APRIL 1, 2012 TO MARCH 31, 2013
(Millions of yen) ------------------------------------------------------------------------------------------------ Half year ending Year ending September 30, 2012 March 31, 2013 ------------------------------------------------------------------------------------------------ Net sales 940,000 1,920,000 Operating income 30,000 70,000 Income before income taxes 26,600 62,500 Net income attributable to Ricoh Company, Ltd. 13,500 33,000 Net income attributable to Ricoh Company, Ltd. shareholders per share (yen) 18.62 45.51 ------------------------------------------------------------------------------------------------
Notes: Revision of forecast of consolidated operating results during this period: No 4. OTHERS (1) Changes in significant subsidiaries: No (2) Adoption of concise quarterly accounting method or procedure: No (3) Changes in accounting method: Yes *See note (3) Changes in accounting method, changes in accounting estimate and reclassifications:, 4. Other in the attachment. (4) Number of common stock outstanding (including treasury stock): As of June 30, 2012 744,912,078 shares As of March 31, 2012 744,912,078 shares
(5) Number of treasury stock: As of June 30, 2012 19,836,438 shares As of March 31, 2012 19,831,060 shares
(6) Average number of common stock: Three months ended June 30, 2012 725,077,330 shares Three months ended June 30, 2011 725,502,674 shares
2 CONSOLIDATED PERFORMANCE 1. OPERATING RESULTS *Overview Consolidated net sales of Ricoh Group for the first quarter of fiscal year 2012 (the three months period from April 1, 2012 to June 30, 2012) decreased by 1.7% as compared to the previous corresponding period, to Yen 459.3 billion. During this quarter, the average Yen exchange rates were Yen 80.23 against the U.S. dollar (up Yen 1.48) and Yen 103.06 against the Euro (up Yen 14.56). Net sales would have increased by 1.9% excluding impact of such foreign currency exchange fluctuation. As for the Japanese economy, although unpredictable situation remained due to the sharp appreciation of the Yen against the U.S. dollar and the Euro and the downturn in overseas economy, the recovery in domestic demand has been shown. Under the severe situation, although domestic sales in the Imaging & Solutions and the Industrial Products decreased from the previous corresponding period, domestic sales in the Other increased due to the acquisition of the PENTAX imaging systems business. Consequently, overall sales in Japan increased by 0.1% as compared to the previous corresponding period. As for the overseas economy, recovery from the recession is getting slower in the Americas and growth in the Asia including China has shown signs of slowdown. In Europe, it remained uncertain due to the protracted financial crisis in some countries. Ricoh continued to face the severe business environment in the Americas and Europe due to the appreciation of the Yen. Under such situation, sales in the Americas increased by 2.8% as compared to the previous corresponding period (4.7%, excluding foreign currency exchange fluctuation). Sales in Europe, Middle East and Africa decreased by 11.6% due primarily to the sharp appreciation of the Yen against the Euro as well as uncertain situation in European economy, however, excluding the net effect of the foreign currency exchange rate fluctuations, sales in this region would have increased by 0.8%. Sales in Other region, which includes China, South East Asia and Oceania, increased by 3.6% (7.6%, excluding foreign currency exchange fluctuation). As a result, sales in the overseas market decreased by 3.2% as compared to the previous corresponding period. Excluding effects of foreign currency fluctuations, net sales in overseas would have increased by 3.4% as compared to the previous corresponding period. Gross profit decreased by 3.9% as compared to the previous corresponding period, despite ongoing cost reduction efforts, to Yen 189.8 billion due primarily to the appreciation of the Yen. Selling, general and administrative expenses decreased by 5.7% as compared to the previous corresponding period, to Yen 175.6 billion due primarily to group-wide cost reduction efforts. As a result, operating income increased by 26.1% as compared to the previous corresponding period, to Yen 14.2 billion. For other (income) expenses, interest and dividend income increased as compared to the previous corresponding period. Foreign exchange loss also increased. As a result, income before income taxes increased by 32.2% as compared to the previous corresponding period, to Yen 12.2 billion. As a result, net income attributable to Ricoh Company, Ltd. increased by 32.5% as compared to the previous corresponding period, to Yen 6.5 billion. Comprehensive loss attributable to Ricoh Company, Ltd. increased due primarily to an increase in foreign exchange translation adjustment loss as a result of the appreication of the Yen. 3 *Conditions by Product Line Imaging & Solutions (Sales down 3.1% to Yen 400.5 billion) ----------------------------------------------------------- Office Imaging (Sales down 3.6% to Yen 321.7 billion) ------------------------------------------------------ Sales in this category decreased by 3.6% as compared to the previous corresponding period, to Yen 321.7 billion. Sales of color and monochrome products in MFPs decreased as compared to the previous corresponding period. As for laser printers, sales of color products decreased while sales of monochrome products increased. Production Printing (Sales down 1.8% to Yen 34.6 billion) ---------------------------------------------------------- Sales in this category decreased by 1.8% as compared to the previous corresponding period, to Yen 34.6 billion due primarily to the appreciation of the Yen, despite sales volume mainly in cut sheet products increased both in Japan and overseas market. Excluding the net effect of the foreign currency exchange rate fluctuations, sales in this category would have increased by 2.2%. Network System Solutions (Sales down 0.3% to Yen 44.1 billion) --------------------------------------------------------------- Sales in this category decreased by 0.3% as compared to the previous corresponding period, to Yen 44.1 billion. Although sales in overseas increased due primarily to the increased sales in software and IT services, sales in Japan decreased. As a result, sales in the Imaging & Solutions segment decreased by 3.1% as compared to the previous corresponding period, to Yen 400.5 billion. Operating income increased by 9.6% as compared to the previous corresponding period, to Yen 30.7 billion due primarily to the decreased selling, general and administrative expenses which was resulted from group-wide cost reduction efforts. Industrial Products (Sales down 6.7% to Yen 23.5 billion) ---------------------------------------------------------- Sales in the Industrial Products segment decreased by 6.7% as compared to the previous corresponding period, to Yen 23.5 billion. Sales of semiconductor devices and electronic components decreased as compared to the previous corresponding period although sales of thermal media increased. As a result, operating loss in the Industrial Products segment amounted to Yen 0.4 billion (operating loss Yen 0.4 billion for the previous corresponding period). Other (Sales up 22.4% to Yen 35.3 billion) ------------------------------------------- Sales in the Other segment increased by 22.4% as compared to the previous corresponding period, to Yen 35.3 billion due primarily to the acquisition of the PENTAX imaging systems business. As a result operating loss in the Other segment amounted to Yen 0.3 billion (operating loss Yen 0.3 billion for the previous corresponding period). 2. FINANCIAL POSITION *Assets, Liabilities and Equity For Assets, inventories increased from the end of the previous fiscal year due partly to the initial stock for new products in the Other business segment. The yen equivalent of foreign-currency-denominated assets decreased due to the appreciation of the Yen developed from the previous fiscal year. As a result, total assets decreased by Yen 46.2 billion, to Yen 2,243.1 billion. For Liabilities, trade payables decreased although the interest-bearing debt increased. As a result, total liabilities decreased by Yen 16.4 billion, to Yen 1,393.8 billion. For Total Equity, 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 29.7 billion from the end of the previous fiscal year, to Yen 849.2 billion. *Cash Flows (Three months from April 1, 2012 to June 30, 2012) Net cash provided by operating activities in this period increased by Yen 3.9 billion as compared to the previous corresponding period, to Yen 8.8 billion due primarily to the increased income before income taxes. Net cash used in investing activities in this period decreased by Yen 0.7 billion as compared to the previous corresponding period, to Yen 24.1 billion. As a result, free cash outflows generated by operating and investing activities in this period decreased by Yen 4.7 billion as compared to the previous corresponding period, to Yen 15.3 billion. Net cash provided by financing activities in this period decreased by Yen 0.5 billion as compared to the previous corresponding period, to Yen 12.4 billion. As a result, cash and cash equivalents at the end of this first quarter decreased by Yen 7.7 billion as compared to the end of the previous fiscal year, to Yen 148.5 billion. 4 3. FORECAST FOR THE ENTIRE FISCAL YEAR Ricoh assumes exchange rates of Yen 75.00 against the U.S. dollar and of Yen 100.00 against the Euro for the period from second quarter onward. Ricoh revised its exchange rate against Euro reflecting the recent drastic exchange rate fluctuation, which was revised from the forecast that announced in April 2012 Yen 105.00 against Euro assumed as of April). Ricoh has not revised its forecast of business results for the full fiscal year ending March 31, 2013 from the forecast that announced in April 2012. This forecast reflects the business result for the three months ended June 30, 2012 and the favorable progress on group-wide cost reduction efforts even though the net effect due to the appreciation of the Yen against the Euro is expected. The actual exchange rates during the first quarter were incorporated in annual exchange rates assumption. Our performance forecast for fiscal year 2013 is as follows: Exchange Rate Assumptions for the full year ending March 31, 2013 US$ 1 = Yen 76.31 (Yen 79.08 in previous fiscal year) EURO 1 = Yen 100.77 (Yen 109.05 in previous fiscal year)
(Billions of yen) -------------------------------------------------------------------------------------------------------------------- Half year ending Half year ended Year ending Year ended September 30, 2011 September 30, 2012 March 31, 2012 March 31, 2013 (Results) (Forecast) Change (Results) (Forecast) Change -------------------------------------------------------------------------------------------------------------------- Domestic sales 434.5 445.0 2.4% 886.4 901.0 1.6% Overseas sales 504.5 495.0 -1.9% 1,017.0 1,019.0 0.2% Net sales 939.0 940.0 0.1% 1,903.4 1,920.0 0.9% Gross profit 386.8 380.0 -1.8% 752.6 760.0 1.0% Operating income (loss) -2.0 30.0 -- -18.0 70.0 -- Income (loss) before income taxes -9.7 26.6 -- -31.9 62.5 -- Net income (loss) attributable to Ricoh Company, Ltd. -8.7 13.5 -- -44.5 33.0 -- --------------------------------------------------------------------------------------------------------------------
* 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. 4. OTHER (1) Changes in significant subsidiaries: Not applicable (2) Adoption of concise quarterly accounting method or procedure: Not applicable (3) Changes in accounting method, changes in accounting estimate and reclassifications: Ricoh adopted Accounting Standards Codification 220 as from April 1 2012, which was revised based on Accounting Standards Update (ASU) 2011-05 and 2011-12. ASU 2011-05 requires an entity to present net income and other comprehensive income either in a single continuous statement or in two separate, but consecutive, statements. This ASU also requires separate presentation in both net income and other comprehensive income of reclassification adjustments for items that are reclassified from other comprehensive income to net income. ASU 2011-12 defers the effective date for only the presentation requirements related to reclassifications in ASU 2011-05. Ricoh has presented this requirement in two separate, but consecutive statements. Management believes this adoption has not made a material effect on Ricoh's consolidated financial statements. The Company and its most of subsidiaries in Japan changed depreciation method of property, plant and equipment from declining-balance method to straight-line method for the period beginning after April 1, 2012. Management believes that straight-line method is appropriate in line with future use of property, plant and equipment. The effect generated from this change will be accounted for the periods onward because the change in depreciation method is applicable to the change in accounting estimate. Management believes this change has not made a material effect on Ricoh's consolidated financial statements. During the previous fiscal year, 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 for the first quarter of fiscal year 2011. 5 5. CONSOLIDATED FINANCIAL STATEMENTS (1) CONSOLIDATED BALANCE SHEETS
Assets (Millions of yen) --------------------------------------------------------------------------------------------------------------- March 31, 2012 June 30, 2012 Change --------------------------------------------------------------------------------------------------------------- Current Assets Cash and time deposits 158,671 152,825 -5,846 Trade receivables 686,930 665,871 -21,059 Inventories 195,009 199,426 4,417 Other current assets 65,896 69,007 3,111 Total Current Assets 1,106,506 1,087,129 -19,377 Fixed Assets Tangible fixed assets 268,527 266,275 -2,252 Finance receivables 468,004 465,270 -2,734 Other investments 446,321 424,444 -21,877 Total Fixed Assets 1,182,852 1,155,989 -26,863 --------------------------------------------------------------------------------------------------------------- Total Assets 2,289,358 2,243,118 -46,240 --------------------------------------------------------------------------------------------------------------- Note: Contents of cash and time deposits; Cash and cash equivalents 156,210 148,501 Time deposits 2,461 4,324
Liabilities and Equity (Millions of yen) --------------------------------------------------------------------------------------------------------------- March 31, 2012 June 30, 2012 Change --------------------------------------------------------------------------------------------------------------- Current Liabilities Trade payables 252,209 235,769 -16,440 Short-term borrowings 216,432 232,276 15,844 Other current liabilities 204,383 194,828 -9,555 Total Current Liabilities 673,024 662,873 -10,151 Fixed Liabilities Long-term indebtedness 525,435 526,566 1,131 Accrued pension and severance costs 164,757 163,007 -1,750 Other fixed liabilities 47,124 41,400 -5,724 Total Fixed Liabilities 737,316 730,973 -6,343 --------------------------------------------------------------------------------------------------------------- Total Liabilities 1,410,340 1,393,846 -16,494 --------------------------------------------------------------------------------------------------------------- Equity Common stock 135,364 135,364 -- Additional paid-in capital 186,083 186,083 -- Retained earnings 742,549 742,921 372 Accumulated other comprehensive loss -204,175 -234,811 -30,636 Treasury stock -37,117 -37,119 -2 Total Ricoh Company, Ltd. shareholders' equity 822,704 792,438 -30,266 Noncontrolling interests 56,314 56,834 520 --------------------------------------------------------------------------------------------------------------- Total Equity 879,018 849,272 -29,746 --------------------------------------------------------------------------------------------------------------- Total Liabilities and Equity 2,289,358 2,243,118 -46,240 --------------------------------------------------------------------------------------------------------------- Note: Accumulated other comprehensive loss March 31, 2012 June 30, 2012 Change Net unrealized holding gains (losses) on available-for-sale securities 3,681 2,986 -695 Pension liability adjustments -67,578 -67,813 -235 Net unrealized gains (losses) on derivative instruments -1,153 -1,381 -228 Cumulative translation adjustments -139,125 -168,603 -29,478 Reference: Exchange rate March 31, 2012 June 30, 2012 US$ 1 Yen 82.19 Yen 79.31 EURO 1 Yen 109.80 Yen 98.74
6 (2) CONSOLIDATED STATEMENTS OF INCOME AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME CONSOLIDATED STATEMENTS OF INCOME
(Millions of yen) ----------------------------------------------------------------------------------------------------------------------------- Three months ended Three months ended June 30, 2011 June 30, 2012 Change % ----------------------------------------------------------------------------------------------------------------------------- Net sales 467,393 459,387 -8,006 -1.7 Cost of sales 269,802 269,489 -313 -0.1 Percentage of net sales (%) 57.7 58.7 Gross profit 197,591 189,898 -7,693 -3.9 Percentage of net sales (%) 42.3 41.3 Selling, general and administrative expenses 186,265 175,617 -10,648 -5.7 Percentage of net sales (%) 39.9 38.2 Operating income 11,326 14,281 2,955 26.1 Percentage of net sales (%) 2.4 3.1 Other (income) expenses Interest and dividend income 607 842 235 38.7 Percentage of net sales (%) 0.1 0.2 Interest expense 1,463 1,521 58 4.0 Percentage of net sales (%) 0.3 0.3 Other, net 1,183 1,327 144 12.2 Percentage of net sales (%) 0.2 0.3 Income before income taxes, equity income and minority interests 9,287 12,275 2,988 32.2 Percentage of net sales (%) 2.0 2.7 Provision for income taxes 3,171 4,669 1,498 47.2 Percentage of net sales (%) 0.7 1.0 Equity in earnings of affiliates -8 41 49 -- Percentage of net sales (%) -0.0 0.0 Consolidated net income 6,108 7,647 1,539 25.2 Percentage of net sales (%) 1.3 1.7 Net income attributable to noncontrolling interests 1,175 1,110 -65 -5.5 Percentage of net sales (%) 0.2 0.3 Net income attributable to Ricoh Company, Ltd. 4,933 6,537 1,604 32.5 Percentage of net sales (%) 1.1 1.4 -----------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Millions of yen) ----------------------------------------------------------------------------------------------------------------------------- Three months ended Three months ended June 30, 2011 June 30, 2012 Change ----------------------------------------------------------------------------------------------------------------------------- Consolidated net income 6,108 7,647 1,539 Other comprehensive income (loss), net of tax Net unrealized holding losses on available-for-sale securities -697 -699 -2 Pension liability adjustments 748 -255 -1,003 Net unrealized losses on derivative instruments -529 -289 240 Foreign currency translation adjustments -6,291 -29,655 -23,364 ------------------------------------------------------------------------------------------------------------------- -6,769 -30,898 -24,129 ------------------------------------------------------------------------------------------------------------------- Comprehensive loss -661 -23,251 -22,590 Comprehensive income attributable to noncontrolling interests 1,115 848 -267 Comprehensive loss attributable to Ricoh Company, Ltd. -1,776 -24,099 -22,323 Reference : Exchange rate June 30, 2011 June 30, 2012 US$ 1 Yen 81.71 Yen 80.23 EURO 1 Yen 117.62 Yen 103.06
7 CONSOLIDATED SALES BY PRODUCT CATEGORY
(Millions of yen) ------------------------------------------------------------------------------------------------------------------------- Three months ended Three months ended June 30, 2011 June 30, 2012 Change % ------------------------------------------------------------------------------------------------------------------------- [Imaging & Solutions] Office Imaging 333,780 321,758 -12,022 -3.6 Percentage of net sales (%) 71.4 70.0 Production Printing 35,277 34,648 -629 -1.8 Percentage of net sales (%) 7.5 7.5 Network System Solutions 44,293 44,144 -149 -0.3 Percentage of net sales (%) 9.5 9.6 Imaging & Solutions Total 413,350 400,550 -12,800 -3.1 Percentage of net sales (%) 88.4 87.1 ------------------------------------------------------------------------------------------------------------------------- [Industrial Products] Industrial Products 25,199 23,520 -1,679 -6.7 Percentage of net sales (%) 5.4 5.1 ------------------------------------------------------------------------------------------------------------------------- [Other] Other 28,844 35,317 6,473 22.4 Percentage of net sales (%) 6.2 7.8 ------------------------------------------------------------------------------------------------------------------------- Grand Total 467,393 459,387 -8,006 -1.7 Percentage of net sales (%) 100.0 100.0 -------------------------------------------------------------------------------------------------------------------------
*Each category includes the following product line: Office Imaging MFPs (multifunctional printers), copiers, laser printers, digital duplicators, facsimile, scanners, related parts & supplies, services, support and software Production Printing Cut sheet printer, continuous feed printer, related parts & supplies, services, support and software Network System Solutions Personal computers, servers, network equipment, related services, support and software Industrial Products Thermal media, optical equipment, semiconductor devices and electronic components Other Digital cameras
*Product Category in Imaging & Solutions was reclassified as Office Imaging, Production Printing and Network System Solutions in this fiscal year (Imaging Solutions and Network System Solutions as previous category). Certain products were reclassified into Network System Solutions and Industrial Products from Other in this fiscal year. The above reclassification was made to the prior year's figures. CONSOLIDATED SALES BY GEOGRAPHIC AREA
(Millions of yen) ------------------------------------------------------------------------------------------------------------------------- Three months ended Three months ended June 30, 2011 June 30, 2012 Change % ------------------------------------------------------------------------------------------------------------------------- [Domestic] 215,312 215,449 137 0.1 Percentage of net sales (%) 46.1 46.9 [Overseas] 252,081 243,938 -8,143 -3.2 Percentage of net sales (%) 53.9 53.1 The Americas 114,243 117,467 3,224 2.8 Percentage of net sales (%) 24.4 25.6 Europe, Middle East and Africa 107,718 95,253 -12,465 -11.6 Percentage of net sales (%) 23.0 20.7 Other 30,120 31,218 1,098 3.6 Percentage of net sales (%) 6.5 6.8 Grand Total 467,393 459,387 -8,006 -1.7 Percentage of net sales (%) 100.0 100.0 ------------------------------------------------------------------------------------------------------------------------- *Middle East and Africa were reclassified from Other into Europe in this fiscal year. The reclassification was made to the prior year's figures. Reference : Exchange rate US$ 1 Yen 81.71 Yen 80.23 EURO 1 Yen 117.62 Yen 103.06
8 (3) CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions of yen) ----------------------------------------------------------------------------------------------------------------------------- Three months ended Three months ended June 30, 2011 June 30, 2012 ----------------------------------------------------------------------------------------------------------------------------- I. Cash Flows from Operating Activities: Consolidated net income 6,108 7,647 Adjustments to reconcile consolidated net income to net cash provided by operating activities-- Depreciation and amortization 22,199 20,891 Equity in earnings of affiliates, net of dividends received 8 -41 Deferred income taxes -3,758 1,686 Pension and severance costs, less payments 541 -1,734 Changes in assets and liabilities-- Decrease in trade receivables 8,488 1,037 Increase in inventories -18,159 -11,384 Increase in finance receivables -2,329 -5,384 Decrease in trade payables -12,335 -13,189 Increase in accrued income taxes and accrued expenses and other 643 4,312 Other, net 3,468 5,020 ----------------------------------------------------------------------------------------------------------------------------- Net cash provided by operating activities 4,874 8,861 ----------------------------------------------------------------------------------------------------------------------------- II. Cash Flows from Investing Activities: Proceeds from sales of property, plant and equipment 250 582 Expenditures for property, plant and equipment, including interest capitalized -16,846 -19,195 Expenditures for intangible asset -3,253 -3,609 Payments for purchases of available-for-sale securities -59 -8 Proceeds from sales of available-for-sale securities 10 -- Increase in time deposits -266 -2,028 Other, net -4,787 97 ----------------------------------------------------------------------------------------------------------------------------- Net cash used in investing activities -24,951 -24,161 ----------------------------------------------------------------------------------------------------------------------------- III. Cash Flows from Financing Activities: Proceeds from long-term indebtedness 2,569 25,564 Repayment of long-term indebtedness -17,358 -18,744 Increase(Decrease) in short-term borrowings, net 40,238 12,098 Repayment of long-term debt securities -237 -- Dividends paid -11,971 -6,163 Payment for purchase of treasury stock -5 -5 Other, net -301 -327 ----------------------------------------------------------------------------------------------------------------------------- Net cash provided in financing activities 12,935 12,423 ----------------------------------------------------------------------------------------------------------------------------- IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents -2,360 -4,832 ----------------------------------------------------------------------------------------------------------------------------- V. Net Decrease in Cash and Cash Equivalents -9,502 -7,709 ----------------------------------------------------------------------------------------------------------------------------- VI. Cash and Cash Equivalents at Beginning of Year 172,221 156,210 ----------------------------------------------------------------------------------------------------------------------------- VII. Cash and Cash Equivalents at End of Period 162,719 148,501 -----------------------------------------------------------------------------------------------------------------------------
(4) NOTES ON PREMISE GOING CONCERN Not applicable 9 (5) SEGMENT INFORMATION (a) Operating Segments Information
(Millions of yen) ------------------------------------------------------------------------------------------------------------------------- Three months ended Three months ended June 30, 2011 June 30, 2012 Change % ------------------------------------------------------------------------------------------------------------------------- IMAGING & SOLUTIONS: Net sales: Unaffiliated customers 413,350 400,550 -12,800 -3.1 Intersegment -- -- -- Total 413,350 400,550 -12,800 -3.1 ------------------------------------------------------------------------------------------------------------------------- Operating expenses 385,300 369,808 -15,492 -4.0 ------------------------------------------------------------------------------------------------------------------------- Operating income 28,050 30,742 2,692 9.6 Operating income on sales in Imaging & Solutions (%) 6.8 7.7 ------------------------------------------------------------------------------------------------------------------------- INDUSTRIAL PRODUCTS: Net sales: Unaffiliated customers 25,199 23,520 -1,679 -6.7 Intersegment 1,066 988 -78 -7.3 Total 26,265 24,508 -1,757 -6.7 ------------------------------------------------------------------------------------------------------------------------- Operating expenses 26,746 24,926 -1,820 -6.8 ------------------------------------------------------------------------------------------------------------------------- Operating loss -481 -418 63 -- Operating loss on sales in Industrial Products (%) -1.8 -1.7 ------------------------------------------------------------------------------------------------------------------------- OTHER: Net sales: Unaffiliated customers 28,844 35,317 6,473 22.4 Intersegment -- -- -- Total 28,844 35,317 6,473 22.4 ------------------------------------------------------------------------------------------------------------------------- Operating expenses 29,231 35,621 6,390 21.9 ------------------------------------------------------------------------------------------------------------------------- Operating loss -387 -304 83 -- Operating loss on sales in Other (%) -1.3 -0.9 ------------------------------------------------------------------------------------------------------------------------- CORPORATE AND ELIMINATIONS: Net sales: Intersegment -1,066 -988 78 Total -1,066 -988 78 -- ------------------------------------------------------------------------------------------------------------------------- Operating expenses: Intersegment -1,066 -988 78 Corporate 15,856 15,739 -117 Total 14,790 14,751 -39 -- ------------------------------------------------------------------------------------------------------------------------- Operating loss -15,856 -15,739 117 -- ------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED: Net sales: Unaffiliated customers 467,393 459,387 -8,006 -1.7 Intersegment -- -- -- Total 467,393 459,387 -8,006 -1.7 ------------------------------------------------------------------------------------------------------------------------- Operating expenses 456,067 445,106 -10,961 -2.4 ------------------------------------------------------------------------------------------------------------------------- Operating income 11,326 14,281 2,955 26.1 Operating income on consolidated net sales (%) 2.4 3.1 -------------------------------------------------------------------------------------------------------------------------
*Certain products were reclassified into Network System Solutions and Industrial Products from Other in this fiscal year. The above reclassification was made to the prior year's figures. 10 (b) Geographic Segments Information
(Millions of yen) ----------------------------------------------------------------------------------------------------------------- Three months ended Three months ended June 30, 2011 June 30, 2012 Change % ----------------------------------------------------------------------------------------------------------------- JAPAN: Net sales: External customers 219,224 219,007 -217 -0.1 Intersegment 87,078 97,196 10,118 11.6 Total 306,302 316,203 9,901 3.2 ----------------------------------------------------------------------------------------------------------------- Operating expenses 300,061 307,655 7,594 2.5 ----------------------------------------------------------------------------------------------------------------- Operating income 6,241 8,548 2,307 37.0 Operating income on sales in Japan (%) 2.0 2.7 ----------------------------------------------------------------------------------------------------------------- THE AMERICAS: Net sales: External customers 114,198 117,447 3,249 2.8 Intersegment 890 1,555 665 74.7 Total 115,088 119,002 3,914 3.4 ----------------------------------------------------------------------------------------------------------------- Operating expenses 119,406 118,102 -1,304 -1.1 ----------------------------------------------------------------------------------------------------------------- Operating income (loss) -4,318 900 5,218 -- Operating income on sales in the Americas (%) -3.8 0.8 ----------------------------------------------------------------------------------------------------------------- EUROPE, MIDDLE EAST AND AFRICA: Net sales: External customers 106,429 94,369 -12,060 -11.3 Intersegment 602 172 -430 -71.4 Total 107,031 94,541 -12,490 -11.7 ----------------------------------------------------------------------------------------------------------------- Operating expenses 100,481 88,336 -12,145 -12.1 ----------------------------------------------------------------------------------------------------------------- Operating income 6,550 6,205 -345 -5.3 Operating income on sales in Europe (%) 6.1 6.6 ----------------------------------------------------------------------------------------------------------------- OTHER: Net sales: External customers 27,542 28,564 1,022 3.7 Intersegment 34,195 46,834 12,639 37.0 Total 61,737 75,398 13,661 22.1 ----------------------------------------------------------------------------------------------------------------- Operating expenses 60,289 72,559 12,270 20.4 ----------------------------------------------------------------------------------------------------------------- Operating income 1,448 2,839 1,391 96.1 Operating income on sales in Other (%) 2.3 3.8 ----------------------------------------------------------------------------------------------------------------- CORPORATE AND ELIMINATIONS: Net sales: Intersegment -122,765 -145,757 -22,992 Total -122,765 -145,757 -22,992 -- ----------------------------------------------------------------------------------------------------------------- Operating expenses -124,170 -141,546 -17,376 -- ----------------------------------------------------------------------------------------------------------------- Operating income (loss) 1,405 -4,211 -5,616 -- ----------------------------------------------------------------------------------------------------------------- CONSOLIDATED: Net sales: External customers 467,393 459,387 -8,006 -1.7 Intersegment -- -- -- Total 467,393 459,387 -8,006 -1.7 ----------------------------------------------------------------------------------------------------------------- Operating expenses 456,067 445,106 -10,961 -2.4 ----------------------------------------------------------------------------------------------------------------- Operating income 11,326 14,281 2,955 26.1 Operating income on consolidated net sales (%) 2.4 3.1 -----------------------------------------------------------------------------------------------------------------
*Middle East and Africa were reclassified from Other into Europe in this fiscal year. The reclassification was made to the prior year's figures. (6) NOTES ON SIGNIFICANT CHANGES IN EQUITY Not applicable 11 -APPENDIX- (THREE MONTHS ENDED JUNE 30, 2012) 1. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Millions of yen) ------------------------------------------------------------------------------------------------------------------------------ Three months ended Three months ended Change excluding June 30, 2011 June 30, 2012 Change % exchange impact % ------------------------------------------------------------------------------------------------------------------------------ [Imaging & Solutions] Office Imaging 333,780 321,758 -12,022 -3.6 2,071 0.6 Percentage of net sales (%) 71.4 70.0 Domestic 125,075 124,021 -1,054 -0.8 -1,054 -0.8 Overseas 208,705 197,737 -10,968 -5.3 3,125 1.5 Production Printing 35,277 34,648 -629 -1.8 787 2.2 Percentage of net sales (%) 7.5 7.5 Domestic 7,874 8,256 382 4.9 382 4.9 Overseas 27,403 26,392 -1,011 -3.7 405 1.5 Network System Solutions 44,293 44,144 -149 -0.3 363 0.8 Percentage of net sales (%) 9.5 9.6 Domestic 40,294 39,451 -843 -2.1 -843 -2.1 Overseas 3,999 4,693 694 17.4 1,206 30.2 Imaging & Solutions Total 413,350 400,550 -12,800 -3.1 3,221 0.8 Percentage of net sales (%) 88.4 87.1 Domestic 173,243 171,728 -1,515 -0.9 -1,515 -0.9 Overseas 240,107 228,822 -11,285 -4.7 4,736 2.0 The Americas 111,153 112,988 1,835 1.7 3,912 3.5 Europe, Middle East and Africa 103,817 90,279 -13,538 -13.0 -833 -0.8 Other 25,137 25,555 418 1.7 1,657 6.6 ------------------------------------------------------------------------------------------------------------------------------ [Industrial Products] Industrial Products 25,199 23,520 -1,679 -6.7 -1,250 -5.0 Percentage of net sales (%) 5.4 5.1 Domestic 13,994 12,039 -1,955 -14.0 -1,955 -14.0 Overseas 11,205 11,481 276 2.5 705 6.3 The Americas 3,049 3,456 407 13.3 470 15.4 Europe, Middle East and Africa 3,591 3,339 -252 -7.0 144 4.0 Other 4,565 4,686 121 2.7 91 2.0 ------------------------------------------------------------------------------------------------------------------------------ [Other] Other 28,844 35,317 6,473 22.4 6,727 23.3 Percentage of net sales (%) 6.2 7.8 Domestic 28,075 31,682 3,607 12.8 3,607 12.8 Overseas 769 3,635 2,866 372.7 3,120 405.7 The Americas 41 1,023 982 -- 1,010 -- Europe, Middle East and Africa 310 1,635 1,325 427.4 1,555 501.6 Other 418 977 559 133.7 555 132.8 ------------------------------------------------------------------------------------------------------------------------------ Grand Total 467,393 459,387 -8,006 -1.7 8,698 1.9 Percentage of net sales (%) 100.0 100.0 Domestic 215,312 215,449 137 0.1 137 0.1 Percentage of net sales (%) 46.1 46.9 Overseas 252,081 243,938 -8,143 -3.2 8,561 3.4 Percentage of net sales (%) 53.9 53.1 The Americas 114,243 117,467 3,224 2.8 5,392 4.7 Percentage of net sales (%) 24.4 25.6 Europe, Middle East and Africa 107,718 95,253 -12,465 -11.6 866 0.8 Percentage of net sales (%) 23.0 20.7 Other 30,120 31,218 1,098 3.6 2,303 7.6 Percentage of net sales (%) 6.5 6.8 ------------------------------------------------------------------------------------------------------------------------------ Reference: Exchange rate US$ 1 Yen 81.71 Yen 80.23 Yen -1.48 EURO 1 Yen 117.62 Yen 103.06 Yen -14.56
*Each category includes the following product line: Office Imaging MFPs (multifunctional printers), copiers, laser printers, digital duplicators, facsimile, scanners, related parts & supplies, services, support and software Production Printing Cut sheet printer, continuous feed printer, related parts & supplies, services, support and software Network System Solutions Personal computers, servers, network equipment, related services, support and software Industrial Products Thermal media, optical equipment, semiconductor devices and electronic components Other Digital cameras
*Product Category and product lines included in Product Category was changed in this fiscal year. Product Category in Imaging & Solutions was reclassified as Office Imaging, Production Printing and Network System Solutions in this fiscal year (Imaging Solutions and Network System Solutions as previous category). Certain products were reclassified into Network System Solutions and Industrial Products from Other in this fiscal year. The above reclassification was made to the prior year's figures. *Geographic area was changed in this fiscal year. Middle East and Africa were reclassified from Other into Europe in this fiscal year. The reclassification was made to the prior year's figures. A1 2. FORECAST OF CONSOLIDATED PERFORMANCE
(Billions of yen) ------------------------------------------------------------------------------------------------------------------------------- Three months ended Three months ending Half year ending Year ending June 30, 2011 Change Sept. 30, 2012 Change Sept. 30, 2012 Change March 31, 2013 Change Results % Forecast % Forecast % Forecast % ------------------------------------------------------------------------------------------------------------------------------- Net sales 459.3 -1.7 480.6 1.9 940.0 0.1 1,920.0 0.9 Gross profit 189.8 -3.9 190.1 0.4 380.0 -1.8 760.0 1.0 Operating income 14.2 26.1 15.7 -- 30.0 -- 70.0 -- Income before income taxes 12.2 32.2 14.3 -- 26.6 -- 62.5 -- Net income attributable to Ricoh Company, Ltd. 6.5 32.5 6.9 -- 13.5 -- 33.0 -- ------------------------------------------------------------------------------------------------------------------------------- Net income attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) 9.02 -- 9.60 -- 18.62 -- 45.51 -- Net income attributable to Ricoh Company, Ltd. shareholders per share-diluted (yen) 9.02 -- 9.60 -- 18.62 -- 45.51 -- ------------------------------------------------------------------------------------------------------------------------------- Capital expenditures 19.1 -- 24.8 -- 44.0 -- 83.0 -- Depreciation for tangible fixed assets 14.7 -- 16.2 -- 31.0 -- 65.0 -- R&D expenditures 27.0 -- 31.9 -- 59.0 -- 117.0 -- ------------------------------------------------------------------------------------------------------------------------------- Exchange rate (Yen/US$) 80.23 -- 75.00 -- 77.62 -- 76.31 -- Exchange rate (Yen/EURO) 103.06 -- 100.00 -- 101.53 -- 100.77 -- -------------------------------------------------------------------------------------------------------------------------------
3. FORECAST OF CONSOLIDATED SALES BY PRODUCT CATEGORY
(Billions of yen) ---------------------------------------------------------------------------------------------------------------------------------- Half year ending September 30, 2012 Year ending March 31, 2013 ----------------------------------- -------------------------- Forecast Change Forecast(*) Change Change Change % % Forecast % Forecast(*) % ---------------------------------------------------------------------------------------------------------------------------------- [Imaging & Solutions] Office Imaging 639.0 -3.0 666.0 1.1 1,306.7 -1.3 1,351.2 2.1 Domestic 242.8 -0.2 242.8 -0.2 495.7 -0.2 495.7 -0.2 Overseas 396.2 -4.6 423.2 1.9 811.0 -1.9 855.5 3.5 Production Printing 71.9 -1.1 75.1 3.2 149.3 0.5 155.1 4.4 Domestic 16.4 5.7 16.4 5.7 34.2 5.1 34.2 5.1 Overseas 55.6 -3.0 58.7 2.5 115.2 -0.7 120.9 4.2 Network System Solutions 103.5 5.6 104.4 6.4 210.5 5.7 211.9 6.3 Domestic 93.3 3.7 93.3 3.7 187.6 3.0 187.6 3.0 Overseas 10.3 26.5 11.1 36.5 23.0 34.4 24.3 42.0 Imaging & Solutions Total 814.5 -1.8 845.4 1.9 1,666.6 -0.3 1,718.1 2.8 Domestic 352.4 1.1 352.4 1.1 717.4 0.9 717.4 0.9 Overseas 462.1 -3.9 493.0 2.6 949.2 -1.1 1,000.7 4.3 The Americas 227.0 -0.5 233.5 2.4 454.1 0.1 470.2 3.7 Europe, Middle East and Africa 180.3 -10.1 202.3 0.9 385.2 -4.4 415.7 3.2 Other 54.9 5.4 57.2 9.9 110.0 6.2 114.8 10.9 ---------------------------------------------------------------------------------------------------------------------------------- [Industrial Products] Industrial Products 49.7 -1.7 50.7 0.3 97.1 -1.0 99.1 1.1 Domestic 27.0 -4.0 27.0 -4.0 50.6 -5.1 50.6 -5.1 Overseas 22.7 1.2 23.7 5.8 46.5 4.0 48.5 8.5 The Americas 6.4 2.2 6.5 4.8 13.3 4.0 13.7 7.7 Europe, Middle East and Africa 6.7 0.3 7.4 10.7 13.5 4.0 14.4 10.9 Other 9.6 1.1 9.8 2.9 19.7 4.0 20.4 7.5 ---------------------------------------------------------------------------------------------------------------------------------- [Other] Other 75.8 28.1 76.6 29.4 156.3 16.4 157.7 17.4 Domestic 65.6 13.6 65.6 13.6 133.0 9.2 133.0 9.2 Overseas 10.2 600.1 11.0 651.6 23.3 86.7 24.7 97.5 The Americas 3.2 -- 3.4 -- 6.1 153.5 6.5 167.1 Europe, Middle East and Africa 4.2 539.7 4.8 619.8 10.0 79.4 10.8 92.4 Other 2.8 287.8 2.9 301.3 7.2 59.8 7.5 66.4 ---------------------------------------------------------------------------------------------------------------------------------- Grand Total 940.0 0.1 972.7 3.6 1,920.0 0.9 1,974.9 3.8 Domestic 445.0 2.4 445.0 2.4 901.0 1.6 901.0 1.6 Overseas 495.0 -1.9 527.7 4.6 1,019.0 0.2 1,073.9 5.6 The Americas 236.5 0.9 243.4 3.9 473.4 1.0 490.4 4.6 Europe, Middle East and Africa 191.3 -8.0 214.5 3.1 408.8 -3.0 440.9 4.6 Other 67.2 8.0 69.8 12.2 136.8 7.8 142.6 12.3 ----------------------------------------------------------------------------------------------------------------------------------
* Excluding foreign exchange impact A2