0000317891-13-000002.txt : 20130131 0000317891-13-000002.hdr.sgml : 20130131 20130131060955 ACCESSION NUMBER: 0000317891-13-000002 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20130131 FILED AS OF DATE: 20130131 DATE AS OF CHANGE: 20130131 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: 13560699 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 471312_001.txt QUARTERLY REPORT THIRD QUARTER ENDED DECEMBER 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 December 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 Deputy President and Chief Financial Officer January 31, 2013 RICOH January 31, 2013 QUARTERLY REPORT Nine months ended December 31, 2012 Results for the Period from April 1, 2012 to December 31, 2012 Three months ended December 31, 2012 Results for the Period from October 1, 2012 to December 31, 2012 PERFORMANCE OUTLINE (CONSOLIDATED) (1) Third Quarter ended December 31, 2011, 2012 and Year ending March 31, 2013 (Forecast)
(Billions of yen) -------------------------------------------------------------------------------------------------------- --------------------- Third Quarter ended Third Quarter ended Year ending December 31, 2011 December 31, 2012 March 31, 2013 Results Results Change Forecast Change -------------------------------------------------------------------------------------------------------- --------------------- Domestic sales 645.1 640.9 -0.7% 883.0 -0.4% Overseas sales 751.7 746.1 -0.7% 1,037.0 2.0% Net sales 1,396.8 1,387.0 -0.7% 1,920.0 0.9% Gross profit 568.2 563.4 -0.9% 765.0 1.6% Operating income (loss) -37.0 40.4 -- 75.0 -- Income (loss) before income taxes -48.5 36.2 -- 67.5 -- Net income (loss) attributable to Ricoh Company, Ltd. -53.1 17.3 -- 36.0 -- -------------------------------------------------------------------------------------------------------- --------------------- Exchange rate (Yen/US$) 79.00 80.05 1.05 81.29 2.21 Exchange rate (Yen/EURO) 110.71 102.26 -8.45 105.44 -3.61 -------------------------------------------------------------------------------------------------------- --------------------- Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) -73.31 23.86 97.17 49.65 111.07 Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-diluted (yen) -73.31 -- -- -- -- -------------------------------------------------------------------------------------------------------- --------------------- Cash flows from operating activities -25.6 28.3 53.9 -- -- Cash flows from investing activities -88.8 -76.2 12.6 -- -- Cash flows from financing activities 102.6 25.4 -77.2 -- -- Cash and cash equivalents at end of period 151.8 134.4 -17.4 -- -- -------------------------------------------------------------------------------------------------------- --------------------- Capital expenditures 53.9 61.1 7.1 79.0 5.7 Depreciation for tangible fixed assets 46.8 44.5 -2.2 60.0 -4.9 R&D expenditures 89.3 82.1 -7.1 113.0 -6.0 -------------------------------------------------------------------------------------------------------- --------------------- March 31, 2012 December 31, 2012 Change -------------------------------------------------------------------------------------------------------- Total assets 2,289.3 2,343.0 53.7 Ricoh Company, Ltd. shareholders' equity 822.7 845.6 22.9 Interest-bearing debt 741.8 789.1 47.2 -------------------------------------------------------------------------------------------------------- Ricoh Company, Ltd. shareholders' equity ratio (%) 35.9 36.1 0.2 -------------------------------------------------------------------------------------------------------- Ricoh Company, Ltd. shareholders' equity per share (yen) 1,134.64 1,166.31 31.67 --------------------------------------------------------------------------------------------------------
(2) Three months ended December 31, 2011 and 2012
---------------------------------------------------------------------------------------------- Three months ended Three months ended December 31, 2011 December 31, 2012 Results Results Change ---------------------------------------------------------------------------------------------- Domestic sales 210.5 210.1 -0.2% Overseas sales 247.1 259.4 5.0% Net sales 457.7 469.6 2.6% Gross profit 181.4 188.9 4.2% Operating income (loss) -34.9 13.0 -- Income (loss) before income taxes -38.8 11.7 -- Net income (loss) attributable to Ricoh Company, Ltd. -44.3 5.5 -- --------------------------------------------------------------------------------------------- Exchange rate (Yen/US$) 77.39 81.27 3.88 Exchange rate (Yen/EURO) 104.29 105.43 1.14 --------------------------------------------------------------------------------------------- Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) -61.19 7.71 68.90 Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-diluted (yen) -61.19 -- -- --------------------------------------------------------------------------------------------- Capital expenditures 17.0 19.7 2.6 Depreciation for tangible fixed assets 15.9 13.9 -2.0 R&D expenditures 29.5 27.4 -2.1 ---------------------------------------------------------------------------------------------
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 third quarter of fiscal year 2011. 1 RICOH COMPANY, LTD. AND CONSOLIDATED SUBSIDIARIES FINANCIAL HIGHLIGHTS FOR THE THIRD QUARTER ENDED DECEMBER 31, 2012 (U.S. GAAP FINANCIAL INFORMATION) 1. RESULTS FOR THE PERIOD FROM APRIL 1, 2012 TO DECEMBER 31, 2012 (1) Operating Results
(Millions of yen) ---------------------------------------------------------------------------------------- Third Quarter ended Third Quarter ended December 31, 2011 December 31, 2012 ---------------------------------------------------------------------------------------- Net sales 1,396,867 1,387,099 (% change from the previous corresponding period) -5.3 -0.7 Operating income (loss) -37,008 40,483 (% change from the previous corresponding period) -- -- Income (loss) before income taxes -48,569 36,274 (% change from the previous corresponding period) -- -- Net income (loss) attributable to Ricoh Company, Ltd. -53,185 17,302 (% change from the previous corresponding period) -- -- Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) -73.31 23.86 Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-diluted (yen) -73.31 -- ----------------------------------------------------------------------------------------
Notes: i. Comprehensive income: Yen 41,526 million (- %) (Yen -99,140 million (- %) in income in previous fiscal year) ii. 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 third quarter of fiscal year 2011. (2) Financial Position
(Millions of yen) --------------------------------------------------------------------------------------- March 31, 2012 December 31, 2012 --------------------------------------------------------------------------------------- Total assets 2,289,358 2,343,072 Total equity 879,018 904,600 Ricoh Company, Ltd. shareholders' equity 822,704 845,632 Ricoh Company, Ltd. shareholders' equity ratio (%) 35.9 36.1 ---------------------------------------------------------------------------------------
2. DIVIDEND INFORMATION
-------------------------------------------------------------------------------------- Year ended Year ending March 31, 2012 March 31, 2013 (Results) (Forecast) -------------------------------------------------------------------------------------- Cash dividends, applicable to the year (yen) 25.00 29.00 Interim (yen) 16.50 12.50 Year-end (yen) 8.50 16.50 --------------------------------------------------------------------------------------
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) -------------------------------------------------------------------------------------- Year ending March 31, 2013 -------------------------------------------------------------------------------------- Net sales 1,920,000 Operating income 75,000 Income before income taxes 67,500 Net income attributable to Ricoh Company, Ltd. 36,000 Net income attributable to Ricoh Company, Ltd. shareholders per share (yen) 49.65 --------------------------------------------------------------------------------------
Notes: Revision of forecast of consolidated operating results during this period: Yes 4. OTHERS (1) Changes in significant subsidiaries: No (2) Adoption of concise quarterly accounting method or procedure: No (3) Changes in accounting method: Yes * For details see "4.Others" on page 5. (4) Number of common stock outstanding (including treasury stock): As of December 31, 2012 744,912,078 shares As of March 31, 2012 744,912,078 shares
(5) Number of treasury stock: As of December 31, 2012 19,860,338 shares As of March 31, 2012 19,831,060 shares
(6) Average number of common stock: As of December 31, 2012 725,069,001 shares As of December 31, 2011 725,500,788 shares
2 CONSOLIDATED PERFORMANCE 1. OPERATING RESULTS *Overview Consolidated net sales of Ricoh Group for the third quarter of fiscal year 2012 (the nine months period from April 1, 2012 to December 31, 2012) decreased by 0.7% as compared to the previous corresponding period, to Yen 1,387.0 billion. During this period, the average yen exchange rates were Yen 80.05 against the U.S. dollar (down Yen 1.05) and Yen 102.26 against the Euro (up Yen 8.45). Net sales would have increased by 0.7% excluding impact of such foreign currency exchange fluctuation. The Japanese economy has shown signs of gradual recovery with the increase in demand relating to the recovery and restoration of the areas affected by the Great East Japan Earthquake. However, with the continued strength of the Yen against the U.S. dollar and the Euro along with the continued worry of a global slowdown, the economic environment remained fairly stagnant for most of the third quarter. The higher expectations arising from the economic recovery plans introduced by the LDP has helped to weaken the Yen and increase the stock prices during the end of the third quarter, but the overall economic outlook still remains unpredictable. Under such conditions, domestic sales in the Imaging & Solutions segment and the Industrial Products segment decreased from the previous corresponding period. The Other segment increased compared to the previous corresponding period due to the additional sales contribution from Pentax Ricoh Imaging Co., Ltd. Overall, domestic sales decreased by 0.7% compared to the previous corresponding period. Outside of the domestic market, the U.S. economy is showing signs of a modest recovery but the European economy remains stagnant under the prolonged Euro-debt crisis along with the economic slowdown in China and the rest of the emerging markets. These economic conditions together with the strong Yen have affected the overseas sales of Ricoh. As for overseas sales by region, sales in the Americas increased by 1.9% compared to the previous corresponding period (an increase of 0.6% excluding foreign currency exchange fluctuation), sales in Europe, Middle East and Africa decreased by 5.5% due to the continued economic uncertainties in the region along with the strong Yen against the Euro (an increase of 2.3% excluding foreign currency exchange fluctuation). Sales in Other region, which includes China, South East Asia and Oceania, increased by 5.1% (an increase of 5.0%, excluding foreign currency exchange fluctuation). As a result, sales in the overseas market decreased by 0.7% compared to the previous corresponding period. Excluding effects of foreign currency fluctuations, net sales in overseas would have increased by 1.8% compared to the previous corresponding period. Although continued cost reduction activities have helped to reduce overall cost of the company, gross profit decreased by 0.9% as compared to the previous corresponding period, to Yen 563.4 billion due to the decrease in sales and the strong Yen. The group-wide activities to streamline costs have contributed significantly in reducing selling, general and administrative expenses. The costs related to these activities have decreased in total for the first three quarters of 2012, compared to the previous corresponding period. Furthermore, due to the impairment of long-lived assets and goodwill during the previous third quarter, the selling, general and administrative expenses decreased by 13.6% as compared to the previous corresponding period to Yen 522.9 billion. As a result, operating income increased to Yen 40.4 billion (operating loss was Yen 37.0 billion for the previous corresponding period). Other (income) and expenses have improved this quarter compared to the previous corresponding period due to reduced losses from securities revaluation and the decrease in foreign exchange loss. As a result, income before income taxes increased as compared to the previous corresponding period; to Yen 36.2 billion (loss before income taxes was Yen 48.5 billion for the previous corresponding period). Consequently, net income attributable to Ricoh Company, Ltd. increased by Yen 70.4 billion as compared to the previous corresponding period; to Yen 17.3 billion (net loss was Yen 53.1 billion for the previous corresponding period). Comprehensive income increased due primarily by the increase in net income and the increase of cumulative translation adjustments. 3 *Conditions by Product Line Conditions by Product Line for nine months ended December 31, 2012 are as follows; Imaging & Solutions (Sales down 1.5% to Yen 1,207.2 billion) ------------------------------------------------------------ Office Imaging (Sales down 2.1% to Yen 951.7 billion) ----------------------------------------------------- Sales in this category decreased by 2.1% as compared to the previous corresponding period, to Yen 951.7 billion. The sales would have decreased by 0.4% excluding the effects of foreign currency fluctuations. While sales of monochome printers increased, the sales of color and monochome PPCs and MFPs decreased as compared to the previous corresponding period. Production Printing (Sales down 5.3% to Yen 104.7 billion) ---------------------------------------------------------- Despite the increase in the sales of cut sheet products, sales in this category decreased by 5.3% as compared to the previous corresponding period, to Yen 104.7 billion due to the decrease in the sales of solution services in the overseas market. Network System Solutions (Sales up 5.1% to Yen 150.7 billion) ------------------------------------------------------------- Sales in this category increased by 5.1% as compared to the previous corresponding period, to Yen 150.7 billion due primarily to the increase in overseas sales of IT services. As a result, sales in the Imaging & Solutions segment decreased by 1.5% as compared to the previous corresponding period, to Yen 1,207.2 billion. Impairment of long-lived assets and goodwill during the previous third quarter along with the decrease in restructuring costs that contributed to the decrease in selling, general and administrative expenses in the current third quarter have both contributed to a significant improvement of our operating income compared to the previous corresponding period, to Yen 91.8 billion. Industrial Products (Sales down 6.3% to Yen 70.2 billion) --------------------------------------------------------- Sales in the Industrial Products segment decreased by 6.3%, as compared to the previous corresponding period, to Yen 70.2 billion. Sales of thermal media products increased from the previous corresponding period but the sales of semiconductor devices and electronic components decreased as compared to the previous corresponding period. The group-wide activities to streamline costs has contributed to the decrease in selling, general and administrative expenses, which also helped to reduce operating loss for this segment to a total of Yen 0.4 billion (operating loss was Yen 2.5 billion for the previous corresponding period). Other (Sales up 13.9% to Yen 109.6 billion) ------------------------------------------- Net sales in the Other segment increased by 13.9% as compared to the previous corresponding period, to Yen 109.6 billion due to contribution in sales from Pentax Ricoh Imaging Co., Ltd. As a result operating loss in the Other segment amounted to Yen 2.3 billion (operating loss was Yen 3.0 billion for the previous corresponding period). 2. FINANCIAL POSITION *Assets, Liabilities and Equity For Assets, cash and time deposits decreased compared to the previous corresponding period. Furthermore, foreign currency translation amount increased due to the depreciation of the Yen near the end of the fiscal quarter. As a result, total assets increased by Yen 53.7 billion, to Yen 2,343.0 billion. For Liabilities, trade payables decreased in the domestic market and interest-bearing debt increased compared to the previous corresponding period. As a result, total liabilities increased by Yen 28.1 billion, to Yen 1,438.4 billion. For Total Equity, the accumulated other comprehensive loss decreased due primarily to the fluctuation of cumulative translation adjustments reflecting exchange fluctuation from the end of the previous period. As a result, Total Equity increased by Yen 25.5 billion from the end of the previous fiscal year, to Yen 904.6 billion. *Cash Flows (Nine months from April 1, 2012 to December 31, 2012) Due to increases current net income before tax, net cash provided by operating activities in this period increased by Yen 53.9 billion as compared to the previous corresponding period, to Yen 28.3 billion. Net cash used in investing activities increased this quarter due to expenditures for PP&E. However, due to purchase of business in the previous corresponding period, net cash used in investing activities decreased by Yen 12.6 billion, as compared to the previous corresponding period, to Yen 76.2 billion. Free cash outflows generated by operating and investing activities decreased by Yen 66.5 billion, compared to the previous corresponding period, resulting in a negative free cash flow of Yen 47.9 billion. Net cash provided by financing activities in this period amounted to Yen 25.4 billion, due primarily to the increase in interest-bearing debt. As a result, cash and cash equivalents as of December 31, 2012 decreased by Yen 21.8 billion as compared to the end of the previous fiscal year, to Yen 134.4 billion. 4 3. FORECAST FOR THE ENTIRE FISCAL YEAR Based upon the changes in the business environment (i.e. exchange rate fluctuation) along with the third quarter business results, Ricoh will revise its forecast upwards for sales, gross profit, operating income, income before income taxes and net income attributable to Ricoh Company, Ltd from those previously announced in October. Furthermore, in order to more accurately reflect the recent fluctuation in the exchange rate, Ricoh assumes exchange rates of Yen 85.00 against the U.S. dollar and of Yen 115.00 against the Euro in the fourth quarter. Our performance forecast for fiscal year 2012 is as follows: Exchange Rate Assumptions for the full year ending March 31, 2013 US$ 1 = Yen 81.29 (Yen 79.08 in previous fiscal year) EURO 1 = Yen 105.44 (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 886.4 883.0 -0.4% Overseas sales 1,017.0 1,037.0 2.0% Net sales 1,903.4 1,920.0 0.9% Gross profit 752.6 765.0 1.6% Operating income (loss) -18.0 75.0 -- Income (loss) before income taxes -31.9 67.5 -- Net income (loss) attributable to Ricoh Company, Ltd. -44.5 36.0 -- --------------------------------------------------------------------------------------------
* 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. OTHERS (1) Changes in significant subsidiaries: Not applicable (2) Adoption of concise quarterly accounting method or procedure: Not applicable (3) Changes in accounting method: Ricoh adopted Accounting Standards Codification/TM/ 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 third quarter of fiscal year 2011. 5 5. CONSOLIDATED FINANCIAL STATEMENTS (1) CONSOLIDATED BALANCE SHEETS
Assets (Millions of yen) ------------------------------------------------------------------------------------------------------- March 31, 2012 December 31, 2012 Change ------------------------------------------------------------------------------------------------------- Current Assets Cash and time deposits 158,671 138,425 -20,246 Trade receivables 686,930 709,822 22,892 Inventories 195,009 212,155 17,146 Other current assets 65,896 63,003 -2,893 Total Current Assets 1,106,506 1,123,405 16,899 Fixed Assets Tangible fixed assets 268,527 281,630 13,103 Finance receivables 468,004 482,717 14,713 Other investments 446,321 455,320 8,999 Total Fixed Assets 1,182,852 1,219,667 36,815 ------------------------------------------------------------------------------------------------------- Total Assets 2,289,358 2,343,072 53,714 ------------------------------------------------------------------------------------------------------- Note: Contents of cash and time deposits; March 31, 2012 December 31, 2012 Cash and cash equivalents 156,210 134,408 Time deposits 2,461 4,017 Liabilities and Equity (Millions of yen) ------------------------------------------------------------------------------------------------------- March 31, 2012 December 31, 2012 Change ------------------------------------------------------------------------------------------------------- Current Liabilities Trade payables 252,209 235,568 -16,641 Short-term borrowings 216,432 224,116 7,684 Other current liabilities 204,383 196,729 -7,654 Total Current Liabilities 673,024 656,413 -16,611 Fixed Liabilities Long-term indebtedness 525,435 565,020 39,585 Accrued pension and severance costs 164,757 163,354 -1,403 Other fixed liabilities 47,124 53,685 6,561 Total Fixed Liabilities 737,316 782,059 44,743 ------------------------------------------------------------------------------------------------------- Total Liabilities 1,410,340 1,438,472 28,132 ------------------------------------------------------------------------------------------------------- Equity Common stock 135,364 135,364 -- Additional paid-in capital 186,083 186,083 -- Retained earnings 742,549 744,618 2,069 Accumulated other comprehensive loss -204,175 -183,302 20,873 Treasury stock -37,117 -37,131 -14 Total Ricoh Company, Ltd. shareholders' equity 822,704 845,632 22,928 Noncontrolling interests 56,314 58,968 2,654 ------------------------------------------------------------------------------------------------------- Total Equity 879,018 904,600 25,582 ------------------------------------------------------------------------------------------------------- Total Liabilities and Equity 2,289,358 2,343,072 53,714 ------------------------------------------------------------------------------------------------------- Note: Accumulated other comprehensive loss; March 31, 2012 December 31, 2012 Change Net unrealized holding gains on available-for-sale securities 3,681 3,234 -447 Pension liability adjustments -67,578 -68,339 -761 Net unrealized losses on derivative instruments -1,153 -1,268 -115 Cumulative translation adjustments -139,125 -116,929 22,196 Reference: Exchange rate March 31, 2012 December 31, 2012 US$ 1 Yen 82.19 Yen 86.58 EURO 1 Yen 109.80 Yen 114.71
6 (2) CONSOLIDATED STATEMENTS OF INCOME AND CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME CONSOLIDATED STATEMENTS OF INCOME
Third Quarter ended December 31, 2011 and 2012 (Millions of yen) ------------------------------------------------------------------------------------------------------------------------------ Third Quarter ended Third Quarter ended December 31, 2011 December 31, 2012 Change % ------------------------------------------------------------------------------------------------------------------------------ Net sales 1,396,867 1,387,099 -9,768 -0.7 Cost of sales 828,609 823,697 -4,912 -0.6 Percentage of net sales (%) 59.3 59.4 Gross Profit 568,258 563,402 -4,856 -0.9 Percentage of net sales (%) 40.7 40.6 Selling, general and administrative expenses 605,266 522,919 -82,347 -13.6 Percentage of net sales (%) 43.3 37.7 Operating income (loss) -37,008 40,483 77,491 -- Percentage of net sales (%) -2.6 2.9 Other (income) expenses Interest and dividend income 2,017 1,916 -101 -5.0 Percentage of net sales (%) 0.1 0.1 Interest expense 4,971 5,047 76 1.5 Percentage of net sales (%) 0.4 0.4 Other, net 8,607 1,078 -7,529 -87.5 Percentage of net sales (%) 0.6 0.0 Income (Loss) before income taxes, equity income and noncontrolling interests -48,569 36,274 84,843 -- Percentage of net sales (%) -3.5 2.6 Provision for income taxes 1,263 15,510 14,247 -- Percentage of net sales (%) 0.1 1.1 Equity in earnings of affiliates 17 47 30 176.5 Percentage of net sales (%) 0.0 0.0 Consolidated net income (loss) -49,815 20,811 70,626 -- Percentage of net sales (%) -3.6 1.5 Net income (loss) attributable to noncontrolling interests 3,370 3,509 139 4.1 Percentage of net sales (%) 0.2 0.3 Net income (loss) attributable to Ricoh Company, Ltd. -53,185 17,302 70,487 -- Percentage of net sales (%) -3.8 1.2 ------------------------------------------------------------------------------------------------------------------------------ Reference : Exchange rate December 31, 2011 December 31, 2012 US$ 1 Yen 79.00 Yen 80.05 EURO 1 Yen 110.71 Yen 102.26
Three months ended December 31, 2011 and 2012 (Millions of yen) ---------------------------------------------------------------------------------------------------------------------------- Three months ended Three months ended December 31, 2011 December 31, 2012 Change % ---------------------------------------------------------------------------------------------------------------------------- Net sales 457,785 469,632 11,847 2.6 Cost of sales 276,379 280,636 4,257 1.5 Percentage of net sales (%) 60.4 59.8 Gross Profit 181,406 188,996 7,590 4.2 Percentage of net sales (%) 39.6 40.2 Selling, general and administrative expenses 216,381 175,901 -40,480 -18.7 Percentage of net sales (%) 47.2 37.4 Operating income (loss) -34,975 13,095 48,070 -- Percentage of net sales (%) -7.6 2.8 Other (income) expenses Interest and dividend income 514 380 -134 -26.1 Percentage of net sales (%) 0.1 0.1 Interest expense 1,541 1,492 -49 -3.2 Percentage of net sales (%) 0.4 0.3 Other, net 2,843 199 -2,644 -93.0 Percentage of net sales (%) 0.6 0.1 Income (Loss) before income taxes, equity income and noncontrolling interests -38,845 11,784 50,629 -- Percentage of net sales (%) -8.5 2.5 Provision for income taxes 4,346 5,109 763 17.6 Percentage of net sales (%) 0.9 1.1 Equity in earnings of affiliates 18 -10 -28 -- Percentage of net sales (%) 0.0 -0.0 Consolidated net income (loss) -43,173 6,665 49,838 -- Percentage of net sales (%) -9.4 1.4 Net income (loss) attributable to noncontrolling interests 1,220 1,076 -144 -11.8 Percentage of net sales (%) 0.3 0.2 Net income (loss) attributable to Ricoh Company, Ltd. -44,393 5,589 49,982 -- Percentage of net sales (%) -9.7 1.2 ---------------------------------------------------------------------------------------------------------------------------- Reference : Exchange rate December 31, 2011 December 31, 2012 US$ 1 Yen 77.39 Yen 81.27 EURO 1 Yen 104.29 Yen 105.43
7 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Third Quarter ended December 31, 2011 and 2012 (Millions of yen) ------------------------------------------------------------------------------------------------------------------ Third Quarter ended Third Quarter ended December 31, 2011 December 31, 2012 Change ------------------------------------------------------------------------------------------------------------------ Consolidated net income (loss) -49,815 20,811 70,626 Other comprehensive income (loss), net of tax Net unrealized holding losses on available-for-sale securities -1,265 -449 816 Pension liability adjustments -1,589 -747 842 Net unrealized losses on derivative instruments -283 -117 166 Foreign currency translation adjustments -46,188 22,028 68,216 -49,325 20,715 70,040 Comprehensive gain (loss) -99,140 41,526 140,666 Comprehensive income attributable to noncontrolling interests 3,209 3,351 142 Comprehensive gain (loss) attributable to Ricoh Company, Ltd. -102,349 38,175 140,524 ------------------------------------------------------------------------------------------------------------------ Reference: Exchange rate December 31, 2011 December 31, 2012 US$ 1 Yen 79.00 Yen 80.05 EURO 1 Yen 110.71 Yen 102.26
Three months ended December 31, 2011 and 2012 (Millions of yen) ------------------------------------------------------------------------------------------------------------------ Three months ended Three months ended December 31, 2011 December 31, 2012 Change ------------------------------------------------------------------------------------------------------------------ Consolidated net income (loss) -43,173 6,665 49,838 Other comprehensive income (loss), net of tax Net unrealized holding gains on available-for-sale securities 1,170 1,040 -130 Pension liability adjustments -1,033 -4,195 -3,162 Net unrealized gains (losses) on derivative instruments -256 175 431 Foreign currency translation adjustments -1,234 50,876 52,110 -1,353 47,896 49,249 Comprehensive gain (loss) -44,526 54,561 99,087 Comprehensive income attributable to noncontrolling interests 1,203 1,204 1 Comprehensive gain (loss) attributable to Ricoh Company, Ltd. -45,729 53,357 99,086 ------------------------------------------------------------------------------------------------------------------ Reference: Exchange rate December 31, 2011 December 31, 2012 US$ 1 Yen 77.39 Yen 81.27 EURO 1 Yen 104.29 Yen 105.43
8 CONSOLIDATED SALES BY PRODUCT CATEGORY
Third Quarter ended December 31, 2011 and 2012 (Millions of yen) ------------------------------------------------------------------------------------------------------------------ Third Quarter ended Third Quarter ended December 31, 2011 December 31, 2012 Change % ------------------------------------------------------------------------------------------------------------------ [Imaging & Solutions] Office Imaging 971,707 951,753 -19,954 -2.1 Percentage of net sales (%) 69.6 68.6 Production Printing 110,642 104,774 -5,868 -5.3 Percentage of net sales (%) 7.9 7.6 Network System Solutions 143,367 150,714 7,347 5.1 Percentage of net sales (%) 10.3 10.9 Imaging & Solutions Total 1,225,716 1,207,241 -18,475 -1.5 Percentage of net sales (%) 87.8 87.1 ------------------------------------------------------------------------------------------------------------------ [Industrial Products] Industrial Products 74,903 70,201 -4,702 -6.3 Percentage of net sales (%) 5.4 5.1 ------------------------------------------------------------------------------------------------------------------ [Other] Other 96,248 109,657 13,409 13.9 Percentage of net sales (%) 6.8 7.8 ------------------------------------------------------------------------------------------------------------------ Grand Total 1,396,867 1,387,099 -9,768 -0.7 Percentage of net sales (%) 100.0 100.0 ------------------------------------------------------------------------------------------------------------------ Reference : Exchange rate December 31, 2011 December 31, 2012 US$ 1 Yen 79.00 Yen 80.05 EURO 1 Yen 110.71 Yen 102.26
Three months ended December 31, 2011 and 2012 (Millions of yen) ------------------------------------------------------------------------------------------------------------------ Three months ended Three months ended December 31, 2011 December 31, 2012 Change % ------------------------------------------------------------------------------------------------------------------ [Imaging & Solutions] Office Imaging 313,222 325,473 12,251 3.9 Percentage of net sales (%) 68.4 69.3 Production Printing 37,873 35,339 -2,534 -6.7 Percentage of net sales (%) 8.3 7.5 Network System Solutions 45,312 48,792 3,480 7.7 Percentage of net sales (%) 9.9 10.4 Imaging & Solutions Total 396,407 409,604 13,197 3.3 Percentage of net sales (%) 86.6 87.2 ------------------------------------------------------------------------------------------------------------------ [Industrial Products] Industrial Products 24,314 22,764 -1,550 -6.4 Percentage of net sales (%) 5.3 4.8 ------------------------------------------------------------------------------------------------------------------ [Other] Other 37,064 37,264 200 0.5 Percentage of net sales (%) 8.1 8.0 ------------------------------------------------------------------------------------------------------------------ Grand Total 457,785 469,632 11,847 2.6 Percentage of net sales (%) 100.0 100.0 ------------------------------------------------------------------------------------------------------------------ Reference : Exchange rate December 31, 2011 December 31, 2012 US$ 1 Yen 77.39 Yen 81.27 EURO 1 Yen 104.29 Yen 105.43
*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. 9 CONSOLIDATED SALES BY GEOGRAPHIC AREA
Third Quarter ended December 31, 2011 and 2012 (Millions of yen) --------------------------------------------------------------------------------------------------------------- Third Quarter ended Third Quarter ended December 31, 2011 December 31, 2012 Change % --------------------------------------------------------------------------------------------------------------- [Domestic] 645,108 640,902 -4,206 -0.7 Percentage of net sales (%) 46.2 46.2 [Overseas] 751,759 746,197 -5,562 -0.7 Percentage of net sales (%) 53.8 53.8 The Americas 347,156 353,827 6,671 1.9 Percentage of net sales (%) 24.9 25.5 Europe, Middle East and Africa 311,360 294,340 -17,020 -5.5 Percentage of net sales (%) 22.3 21.2 Other 93,243 98,030 4,787 5.1 Percentage of net sales (%) 6.6 7.1 Grand Total 1,396,867 1,387,099 -9,768 -0.7 Percentage of net sales (%) 100.0 100.0 --------------------------------------------------------------------------------------------------------------- Reference: Exchange rate December 31, 2011 December 31, 2012 US$ 1 Yen 79.00 Yen 80.05 EURO 1 Yen 110.71 Yen 102.26
Three months ended December 31, 2011 and 2012 (Millions of yen) ------------------------------------------------------------------------------------------------------------ Three months ended Three months ended December 31, 2011 December 31, 2012 Change % ------------------------------------------------------------------------------------------------------------ [Domestic] 210,593 210,140 -453 -0.2 Percentage of net sales (%) 46.0 44.7 [Overseas] 247,192 259,492 12,300 5.0 Percentage of net sales (%) 54.0 55.3 The Americas 112,762 119,508 6,746 6.0 Percentage of net sales (%) 24.6 25.4 Europe, Middle East and Africa 103,411 107,177 3,766 3.6 Percentage of net sales (%) 22.6 22.8 Other 31,019 32,807 1,788 5.8 Percentage of net sales (%) 6.8 7.1 Grand Total 457,785 469,632 11,847 2.6 Percentage of net sales (%) 100.0 100.0 ------------------------------------------------------------------------------------------------------------ Reference: Exchange rate December 31, 2011 December 31, 2012 US$ 1 Yen 77.39 Yen 81.27 EURO 1 Yen 104.29 Yen 105.43
*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. 10 (3) CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions of yen) --------------------------------------------------------------------------------------------------------------- Third Quarter ended Third Quarter ended December 31, 2011 December 31, 2012 --------------------------------------------------------------------------------------------------------------- I. Cash Flows from Operating Activities: Consolidated net income (loss) -49,815 20,811 Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activities- Depreciation and amortization 65,887 62,918 Equity in earnings of affiliates, net of dividends received -17 -47 Deferred income taxes -14,489 1,935 Loss on impairment of long-lived assets 9,898 420 Loss on impairment of securities 5,024 120 Loss on impairment of goodwill 27,464 -- Pension and severance costs, less payments -5,535 -2,843 Changes in assets and liabilities- Increase (Decrease) in trade receivables 16,436 -4,714 Increase in inventories -32,466 -9,259 Increase in finance receivables -13,229 -12,800 Decrease in trade payables -22,075 -15,464 Decrease in accrued income taxes and accrued expenses and other -27,672 -17,068 Other, net 14,952 4,331 --------------------------------------------------------------------------------------------------------------- Net cash provided by (used in) operating activities -25,637 28,340 --------------------------------------------------------------------------------------------------------------- II. Cash Flows from Investing Activities: Proceeds from sales of property, plant and equipment 826 1,399 Expenditures for property, plant and equipment, including interest capitalized -53,968 -61,156 Expenditures for intangible fixed asset including interest capitalized -10,664 -8,340 Payments for purchases of available-for-sale securities -127 -91 Proceeds from sales of available-for-sale securities 32 64 Increase in time deposits -631 -1,276 Purchase of business, net of cash acquired -15,089 -2,118 Other, net -9,278 -4,768 --------------------------------------------------------------------------------------------------------------- Net cash used in investing activities -88,899 -76,286 --------------------------------------------------------------------------------------------------------------- III. Cash Flows from Financing Activities: Proceeds from long-term indebtedness 81,396 68,441 Repayment of long-term indebtedness -59,102 -29,673 Decrease (Increase) in short-term borrowings, net 105,094 -17,436 Proceeds from issuance of long-term debt securities -- 20,000 Repayment of long-term debt securities -226 -- Dividends paid -23,942 -15,226 Payment for purchase of treasury stock -20 -8 Other, net -585 -694 --------------------------------------------------------------------------------------------------------------- Net cash provided by financing activities 102,615 25,404 --------------------------------------------------------------------------------------------------------------- IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents -8,413 740 --------------------------------------------------------------------------------------------------------------- V. Net Decrease in Cash and Cash Equivalents -20,334 -21,802 --------------------------------------------------------------------------------------------------------------- VI. Cash and Cash Equivalents at Beginning of Year 172,221 156,210 --------------------------------------------------------------------------------------------------------------- VII. Cash and Cash Equivalents at End of Period 151,887 134,408 ---------------------------------------------------------------------------------------------------------------
11 (4) NOTES ON PREMISE GOING CONCERN Not applicable (5) SEGMENT INFORMATION (a) Operating Segments Information
Third Quarter ended December 31, 2011 and 2012 (Millions of yen) ----------------------------------------------------------------------------------------------------------------------- Third Quarter ended Third Quarter ended December 31, 2011 December 31, 2012 Change % ----------------------------------------------------------------------------------------------------------------------- IMAGING & SOLUTIONS: Net sales: Unaffiliated customers 1,225,716 1,207,241 -18,475 -1.5 Intersegment -- -- -- -- Total 1,225,716 1,207,241 -18,475 -1.5 ----------------------------------------------------------------------------------------------------------------------- Operating expenses 1,206,085 1,115,362 -90,723 -7.5 ----------------------------------------------------------------------------------------------------------------------- Operating income 19,631 91,879 72,248 368.0 Operating income on sales in Imaging & Solutions (%) 1.6 7.6 ----------------------------------------------------------------------------------------------------------------------- INDUSTRIAL PRODUCTS: Net sales: Unaffiliated customers 74,903 70,201 -4,702 -6.3 Intersegment 3,688 3,200 -488 -13.2 Total 78,591 73,401 -5,190 -6.6 ----------------------------------------------------------------------------------------------------------------------- Operating expenses 81,142 73,846 -7,296 -9.0 ----------------------------------------------------------------------------------------------------------------------- Operating loss -2,551 -445 2,106 -- Operating loss on sales in Industrial Products (%) -3.2 -0.6 ----------------------------------------------------------------------------------------------------------------------- OTHER: Net sales: Unaffiliated customers 96,248 109,657 13,409 13.9 Intersegment -- -- -- -- Total 96,248 109,657 13,409 13.9 ----------------------------------------------------------------------------------------------------------------------- Operating expenses 99,297 112,025 12,728 12.8 ----------------------------------------------------------------------------------------------------------------------- Operating loss -3,049 -2,368 681 -- Operating loss on sales in Other (%) -3.2 -2.2 ----------------------------------------------------------------------------------------------------------------------- CORPORATE AND ELIMINATIONS: Net sales: Intersegment -3,688 -3,200 488 Total -3,688 -3,200 488 -- ----------------------------------------------------------------------------------------------------------------------- Operating expenses: Intersegment -3,688 -3,200 488 Corporate 51,039 48,583 -2,456 Total 47,351 45,383 -1,968 -- ----------------------------------------------------------------------------------------------------------------------- Operating loss -51,039 -48,583 2,456 -- ----------------------------------------------------------------------------------------------------------------------- CONSOLIDATED: Net sales: Unaffiliated customers 1,396,867 1,387,099 -9,768 -0.7 Intersegment -- -- -- -- Total 1,396,867 1,387,099 -9,768 -0.7 ----------------------------------------------------------------------------------------------------------------------- Operating expenses 1,433,875 1,346,616 -87,259 -6.1 ----------------------------------------------------------------------------------------------------------------------- Operating income (loss) -37,008 40,483 77,491 -- Operating income (loss) on consolidated net sales (%) -2.6 2.9 -----------------------------------------------------------------------------------------------------------------------
*Certain products were reclassified into segment "Imaging & Solutions" and "Industrial Products" from "Other" in this fiscal year. The above reclassification was made to the prior year's figures. 12
Three months ended December 31, 2011 and 2012 (Millions of yen) --------------------------------------------------------------------------------------------------------------------------- Three months ended Three months ended December 31, 2011 December 31, 2012 Change % --------------------------------------------------------------------------------------------------------------------------- IMAGING & SOLUTIONS: Net sales: Unaffiliated customers 396,407 409,604 13,197 3.3 Intersegment -- -- -- -- Total 396,407 409,604 13,197 3.3 --------------------------------------------------------------------------------------------------------------------------- Operating expenses 413,830 377,318 -36,512 -8.8 --------------------------------------------------------------------------------------------------------------------------- Operating income (loss) -17,423 32,286 49,709 -- Operating income (loss) on sales in Imaging & Solutions (%) -4.4 7.9 --------------------------------------------------------------------------------------------------------------------------- INDUSTRIAL PRODUCTS: Net sales: Unaffiliated customers 24,314 22,764 -1,550 -6.4 Intersegment 1,424 1,148 -276 -19.4 Total 25,738 23,912 -1,826 -7.1 --------------------------------------------------------------------------------------------------------------------------- Operating expenses 26,133 23,699 -2,434 -9.3 --------------------------------------------------------------------------------------------------------------------------- Operating income (loss) -395 213 608 -- Operating income (loss) on sales in Industrial Products (%) -1.5 0.9 --------------------------------------------------------------------------------------------------------------------------- OTHER: Net sales: Unaffiliated customers 37,064 37,264 200 0.5 Intersegment -- -- -- -- Total 37,064 37,264 200 0.5 --------------------------------------------------------------------------------------------------------------------------- Operating expenses 37,628 38,889 1,261 3.4 --------------------------------------------------------------------------------------------------------------------------- Operating loss -564 -1,625 -1,061 -- Operating loss on sales in Other (%) -1.5 -4.4 --------------------------------------------------------------------------------------------------------------------------- CORPORATE AND ELIMINATIONS: Net sales: Intersegment -1,424 -1,148 276 Total -1,424 -1,148 276 -- --------------------------------------------------------------------------------------------------------------------------- Operating expenses: Intersegment -1,424 -1,148 276 Corporate 16,593 17,779 1,186 Total 15,169 16,631 1,462 -- --------------------------------------------------------------------------------------------------------------------------- Operating loss -16,593 -17,779 -1,186 -- --------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED: Net sales: Unaffiliated customers 457,785 469,632 11,847 2.6 Intersegment -- -- -- -- Total 457,785 469,632 11,847 2.6 --------------------------------------------------------------------------------------------------------------------------- Operating expenses 492,760 456,537 -36,223 -7.4 --------------------------------------------------------------------------------------------------------------------------- Operating income (loss) -34,975 13,095 48,070 -- Operating income (loss) on consolidated net sales (%) -7.6 2.8 ---------------------------------------------------------------------------------------------------------------------------
*Certain products were reclassified into segment "Imaging & Solutions" and "Industrial Products" from "Other" in this fiscal year. The above reclassification was made to the prior year's figures. 13 (b) Geographic Segments Information
Third Quarter ended December 31, 2011 and 2012 (Millions of yen) ---------------------------------------------------------------------------------------------------------------------------- Third Quarter ended Third Quarter ended December 31, 2011 December 31, 2012 Change % ---------------------------------------------------------------------------------------------------------------------------- JAPAN: Net sales: External customers 653,143 652,650 -493 -0.1 Intersegment 286,780 278,203 -8,577 -3.0 Total 939,923 930,853 -9,070 -1.0 ---------------------------------------------------------------------------------------------------------------------------- Operating expenses 969,794 912,933 -56,861 -5.9 ---------------------------------------------------------------------------------------------------------------------------- Operating income (loss) -29,871 17,920 47,791 -- Operating income (loss) on sales in Japan (%) -3.2 1.9 ---------------------------------------------------------------------------------------------------------------------------- THE AMERICAS: Net sales: External customers 349,777 353,795 4,018 1.1 Intersegment 2,622 5,152 2,530 96.5 Total 352,399 358,947 6,548 1.9 ---------------------------------------------------------------------------------------------------------------------------- Operating expenses 379,002 355,196 -23,806 -6.3 ---------------------------------------------------------------------------------------------------------------------------- Operating income (loss) -26,603 3,751 30,354 -- Operating income (loss) on sales in the Americas (%) -7.5 1.0 ---------------------------------------------------------------------------------------------------------------------------- EUROPE, MIDDLE EAST AND AFRICA: Net sales: External customers 308,332 291,776 -16,556 -5.4 Intersegment 1,323 517 -806 -60.9 Total 309,655 292,293 -17,362 -5.6 ---------------------------------------------------------------------------------------------------------------------------- Operating expenses 296,814 275,162 -21,652 -7.3 ---------------------------------------------------------------------------------------------------------------------------- Operating income 12,841 17,131 4,290 33.4 Operating income on sales in Europe (%) 4.1 5.9 ---------------------------------------------------------------------------------------------------------------------------- OTHER: Net sales: External customers 85,615 88,878 3,263 3.8 Intersegment 117,006 138,838 21,832 18.7 Total 202,621 227,716 25,095 12.4 ---------------------------------------------------------------------------------------------------------------------------- Operating expenses 197,879 218,793 20,914 10.6 ---------------------------------------------------------------------------------------------------------------------------- Operating income 4,742 8,923 4,181 88.2 Operating income on sales in Other (%) 2.3 3.9 ---------------------------------------------------------------------------------------------------------------------------- CORPORATE AND ELIMINATIONS: Net sales: Intersegment -407,731 -422,710 -14,979 Total -407,731 -422,710 -14,979 -- ---------------------------------------------------------------------------------------------------------------------------- Operating expenses -409,614 -415,468 -5,854 -- ---------------------------------------------------------------------------------------------------------------------------- Operating income (loss) 1,883 -7,242 -9,125 -- ---------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED: Net sales: External customers 1,396,867 1,387,099 -9,768 -0.7 Intersegment -- -- -- -- Total 1,396,867 1,387,099 -9,768 -0.7 ---------------------------------------------------------------------------------------------------------------------------- Operating expenses 1,433,875 1,346,616 -87,259 -6.1 ---------------------------------------------------------------------------------------------------------------------------- Operating income (loss) -37,008 40,483 77,491 -- Operating income (loss) on consolidated net sales (%) -2.6 2.9 ----------------------------------------------------------------------------------------------------------------------------
*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. 14
Three months ended December 31, 2011 and 2012 (Millions of yen) ---------------------------------------------------------------------------------------------------------------------- Three months ended Three months ended December 31, 2011 December 31, 2012 Change % ---------------------------------------------------------------------------------------------------------------------- JAPAN: Net sales: External customers 211,130 214,035 2,905 1.4 Intersegment 97,293 92,231 -5,062 -5.2 Total 308,423 306,266 -2,157 -0.7 ---------------------------------------------------------------------------------------------------------------------- Operating expenses 323,308 301,137 -22,171 -6.9 ---------------------------------------------------------------------------------------------------------------------- Operating income (loss) -14,885 5,129 20,014 -- Operating income (loss) on sales in Japan (%) -4.8 1.7 ---------------------------------------------------------------------------------------------------------------------- THE AMERICAS: Net sales: External customers 115,617 119,503 3,886 3.4 Intersegment 753 1,652 899 119.4 Total 116,370 121,155 4,785 4.1 ---------------------------------------------------------------------------------------------------------------------- Operating expenses 137,898 118,919 -18,979 -13.8 ---------------------------------------------------------------------------------------------------------------------- Operating income (loss) -21,528 2,236 23,764 -- Operating income (loss) on sales in the Americas (%) -18.5 1.8 ---------------------------------------------------------------------------------------------------------------------- EUROPE, MIDDLE EAST AND AFRICA: Net sales: External customers 102,692 106,308 3,616 3.5 Intersegment 213 192 -21 -9.9 Total 102,905 106,500 3,595 3.5 ---------------------------------------------------------------------------------------------------------------------- Operating expenses 102,050 100,056 -1,994 -2.0 ---------------------------------------------------------------------------------------------------------------------- Operating income 855 6,444 5,589 653.7 Operating income on sales in Europe (%) 0.8 6.1 ---------------------------------------------------------------------------------------------------------------------- OTHER: Net sales: External customers 28,346 29,786 1,440 5.1 Intersegment 40,440 47,075 6,635 16.4 Total 68,786 76,861 8,075 11.7 ---------------------------------------------------------------------------------------------------------------------- Operating expenses 68,680 73,501 4,821 7.0 ---------------------------------------------------------------------------------------------------------------------- Operating income 106 3,360 3,254 -- Operating income on sales in Other (%) 0.2 4.4 ---------------------------------------------------------------------------------------------------------------------- CORPORATE AND ELIMINATIONS: Net sales: Intersegment -138,699 -141,150 -2,451 Total -138,699 -141,150 -2,451 -- ---------------------------------------------------------------------------------------------------------------------- Operating expenses -139,176 -137,076 2,100 -- ---------------------------------------------------------------------------------------------------------------------- Operating income (loss) 477 -4,074 -4,551 -- ---------------------------------------------------------------------------------------------------------------------- CONSOLIDATED: Net sales: External customers 457,785 469,632 11,847 2.6 Intersegment -- -- -- -- Total 457,785 469,632 11,847 2.6 ---------------------------------------------------------------------------------------------------------------------- Operating expenses 492,760 456,537 -36,223 -7.4 ---------------------------------------------------------------------------------------------------------------------- Operating income (loss) -34,975 13,095 48,070 -- Operating income (loss) on consolidated net sales (%) -7.6 2.8 ----------------------------------------------------------------------------------------------------------------------
*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. (6) NOTES ON SIGNIFICANT CHANGES IN EQUITY Not applicable 15 -APPENDIX- 1. CONSOLIDATED SALES BY PRODUCT CATEGORY
Third Quarter ended December 31, 2011 and 2012 (Millions of yen) -------------------------------------------------------------------------------------------------------------------------------- Third Quarter ended Third Quarter ended Change excluding December 31, 2011 December 31, 2012 Change % exchange impact % -------------------------------------------------------------------------------------------------------------------------------- [Imaging & Solutions] Office Imaging 971,707 951,753 -19,954 -2.1 -3,885 -0.4 Percentage of net sales (%) 69.6 68.6 Domestic 359,189 354,442 -4,747 -1.3 -4,747 -1.3 Overseas 612,518 597,311 -15,207 -2.5 862 0.1 Production Printing 110,642 104,774 -5,868 -5.3 -4,530 -4.1 Percentage of net sales (%) 7.9 7.6 Domestic 23,924 24,500 576 2.4 576 2.4 Overseas 86,718 80,274 -6,444 -7.4 -5,106 -5.9 Network System Solutions 143,367 150,714 7,347 5.1 8,712 6.1 Percentage of net sales (%) 10.3 10.9 Domestic 130,879 129,970 -909 -0.7 -909 -0.7 Overseas 12,488 20,744 8,256 66.1 9,621 77.0 Imaging & Solutions Total 1,225,716 1,207,241 -18,475 -1.5 297 0.0 Percentage of net sales (%) 87.8 87.1 Domestic 513,992 508,912 -5,080 -1.0 -5,080 -1.0 Overseas 711,724 698,329 -13,395 -1.9 5,377 0.8 The Americas 336,497 340,199 3,702 1.1 -733 -0.2 Europe, Middle East and Africa 297,958 279,286 -18,672 -6.3 4,350 1.5 Other 77,269 78,844 1,575 2.0 1,760 2.3 -------------------------------------------------------------------------------------------------------------------------------- [Industrial Products] Industrial Products 74,903 70,201 -4,702 -6.3 -4,465 -6.0 Percentage of net sales (%) 5.4 5.1 Domestic 41,449 34,743 -6,706 -16.2 -6,706 -16.2 Overseas 33,454 35,458 2,004 6.0 2,241 6.7 The Americas 9,401 10,312 911 9.7 777 8.3 Europe, Middle East and Africa 9,712 9,534 -178 -1.8 470 4.8 Other 14,341 15,612 1,271 8.9 994 6.9 -------------------------------------------------------------------------------------------------------------------------------- [Other] Other 96,248 109,657 13,409 13.9 13,767 14.3 Percentage of net sales (%) 6.8 7.8 Domestic 89,667 97,247 7,580 8.5 7,580 8.5 Overseas 6,581 12,410 5,829 88.6 6,187 94.0 The Americas 1,258 3,316 2,058 163.6 2,022 160.7 Europe, Middle East and Africa 3,690 5,520 1,830 49.6 2,284 61.9 Other 1,633 3,574 1,941 118.9 1,881 115.2 -------------------------------------------------------------------------------------------------------------------------------- Grand Total 1,396,867 1,387,099 -9,768 -0.7 9,599 0.7 Percentage of net sales (%) 100.0 100.0 Domestic 645,108 640,902 -4,206 -0.7 -4,206 -0.7 Percentage of net sales (%) 46.2 46.2 Overseas 751,759 746,197 -5,562 -0.7 13,805 1.8 Percentage of net sales (%) 53.8 53.8 The Americas 347,156 353,827 6,671 1.9 2,066 0.6 Percentage of net sales (%) 24.9 25.5 Europe, Middle East and Africa 311,360 294,340 -17,020 -5.5 7,104 2.3 Percentage of net sales (%) 22.3 21.2 Other 93,243 98,030 4,787 5.1 4,635 5.0 Percentage of net sales (%) 6.6 7.1 -------------------------------------------------------------------------------------------------------------------------------- Reference: Exchange rate December 31, 2011 December 31, 2012 Change US$ 1 Yen 79.00 Yen 80.05 Yen 1.05 EURO 1 Yen 110.71 Yen 102.26 Yen -8.45
* 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
Three months ended December 31, 2011 and 2012 (Millions of yen) ------------------------------------------------------------------------------------------------------------------------------- Three months ended Three months ended Change excluding December 31, 2011 December 31, 2012 Change % exchange impact % ------------------------------------------------------------------------------------------------------------------------------- [Imaging & Solutions] Office Imaging 313,222 325,473 12,251 3.9 5,698 1.8 Percentage of net sales (%) 68.4 69.3 Domestic 115,956 118,445 2,489 2.1 2,489 2.1 Overseas 197,266 207,028 9,762 4.9 3,209 1.6 Production Printing 37,873 35,339 -2,534 -6.7 -3,504 -9.3 Percentage of net sales (%) 8.3 7.5 Domestic 8,455 8,065 -390 -4.6 -390 -4.6 Overseas 29,418 27,274 -2,144 -7.3 -3,114 -10.6 Network System Solutions 45,312 48,792 3,480 7.7 3,512 7.8 Percentage of net sales (%) 9.9 10.4 Domestic 40,961 40,181 -780 -1.9 -780 -1.9 Overseas 4,351 8,611 4,260 97.9 4,292 98.6 Imaging & Solutions Total 396,407 409,604 13,197 3.3 5,706 1.4 Percentage of net sales (%) 86.6 87.2 Domestic 165,372 166,691 1,319 0.8 1,319 0.8 Overseas 231,035 242,913 11,878 5.1 4,387 1.9 The Americas 108,406 114,748 6,342 5.9 818 0.8 Europe, Middle East and Africa 97,388 101,855 4,467 4.6 4,160 4.3 Other 25,241 26,310 1,069 4.2 -591 -2.3 ------------------------------------------------------------------------------------------------------------------------------- [Industrial Products] Industrial Products 24,314 22,764 -1,550 -6.4 -1,961 -8.1 Percentage of net sales (%) 5.3 4.8 Domestic 13,276 10,740 -2,536 -19.1 -2,536 -19.1 Overseas 11,038 12,024 986 8.9 575 5.2 The Americas 3,182 3,428 246 7.7 78 2.5 Europe, Middle East and Africa 2,995 3,175 180 6.0 130 4.3 Other 4,861 5,421 560 11.5 367 7.5 ------------------------------------------------------------------------------------------------------------------------------- [Other] Other 37,064 37,264 200 0.5 113 0.3 Percentage of net sales (%) 8.1 8.0 Domestic 31,945 32,709 764 2.4 764 2.4 Overseas 5,119 4,555 -564 -11.0 -651 -12.7 The Americas 1,174 1,332 158 13.5 100 8.5 Europe, Middle East and Africa 3,028 2,147 -881 -29.1 -871 -28.8 Other 917 1,076 159 17.3 120 13.1 ------------------------------------------------------------------------------------------------------------------------------- Grand Total 457,785 469,632 11,847 2.6 3,858 0.8 Percentage of net sales (%) 100.0 100.0 Domestic 210,593 210,140 -453 -0.2 -453 -0.2 Percentage of net sales (%) 46.0 44.7 Overseas 247,192 259,492 12,300 5.0 4,311 1.7 Percentage of net sales (%) 54.0 55.3 The Americas 112,762 119,508 6,746 6.0 996 0.9 Percentage of net sales (%) 24.6 25.4 Europe, Middle East and Africa 103,411 107,177 3,766 3.6 3,419 3.3 Percentage of net sales (%) 22.6 22.8 Other 31,019 32,807 1,788 5.8 -104 -0.3 Percentage of net sales (%) 6.8 7.1 ------------------------------------------------------------------------------------------------------------------------------- Reference: Exchange rate December 31, 2011 December 31, 2012 Change US$ 1 Yen 77.39 Yen 81.27 Yen 3.88 EURO 1 Yen 104.29 Yen 105.43 Yen 1.14
*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. A2 2. FORECAST OF CONSOLIDATED PERFORMANCE
(Billions of yen) ---------------------------------------------------------------------------------------------------------------------- Third Quarter ended Fourth Quarter ending Year ending December 31, 2012 Change March 31, 2013 Change March 31, 2013 Change Results % Forecast % Forecast % ---------------------------------------------------------------------------------------------------------------------- Net sales 1,387.0 -0.7 532.9 5.2 1,920.0 0.9 Gross profit 563.4 -0.9 201.5 9.3 765.0 1.6 Operating income (loss) 40.4 -- 34.5 82.2 75.0 -- Income (loss) before income taxes 36.2 -- 31.2 87.6 67.5 -- Net income (loss) attributable to Ricoh Company, Ltd. 17.3 -- 18.6 115.7 36.0 -- ---------------------------------------------------------------------------------------------------------------------- Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) 23.86 -- 25.79 -- 49.65 -- Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-diluted (yen) -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------- Capital expenditures 61.1 17.9 79.0 Depreciation for tangible fixed assets 44.5 15.5 60.0 R&D expenditures 82.1 30.9 113.0 ---------------------------------------------------------------------------------------------------------------------- Exchange rate (Yen/US$) 80.05 85.00 81.29 Exchange rate (Yen/EURO) 102.26 115.00 105.44 ----------------------------------------------------------------------------------------------------------------------
3. FORECAST OF CONSOLIDATED SALES BY PRODUCT CATEGORY
(Billions of yen) ------------------------------------------------------------------------------------------------------------------------- Fourth Quarter ending March 31, 2013 Year ending March 31, 2013 ------------------------------------ -------------------------- Change Change Change Change Forecast % Forecast(*) % Forecast % Forecast(*) % ------------------------------------------------------------------------------------------------------------------------- [Imaging & Solutions] Office Imaging 372.0 5.8 353.5 0.6 1,323.8 0.0 1,321.3 -0.1 Domestic 137.8 0.3 137.8 0.3 492.2 -0.9 492.2 -0.9 Overseas 234.2 9.4 215.7 0.7 831.5 0.6 829.1 0.3 Production Printing 39.4 4.0 37.0 -2.3 144.2 -2.9 143.2 -3.6 Domestic 8.7 1.7 8.7 1.7 33.2 2.2 33.2 2.2 Overseas 30.7 4.7 28.3 -3.5 111.0 -4.4 109.9 -5.3 Network System Solutions 59.1 5.7 58.4 4.4 209.8 5.3 210.5 5.6 Domestic 51.7 0.8 51.7 0.8 181.6 -0.3 181.6 -0.3 Overseas 7.4 60.0 6.7 45.1 28.1 64.5 28.8 68.4 Imaging & Solutions Total 470.5 5.6 448.9 0.8 1,677.8 0.4 1,674.9 0.2 Domestic 198.2 0.5 198.2 0.5 707.1 -0.6 707.1 -0.6 Overseas 272.3 9.7 250.7 1.0 970.6 1.1 967.8 0.8 The Americas 127.4 8.8 118.9 1.6 467.6 3.1 454.7 0.2 Europe, Middle East and Africa 116.3 11.0 105.2 0.4 395.6 -1.8 407.5 1.2 Other 28.6 8.9 26.6 1.4 107.4 3.8 105.6 2.0 ------------------------------------------------------------------------------------------------------------------------- [Industrial Products] Industrial Products 23.0 -0.6 22.2 -4.3 93.2 -4.9 92.6 -5.6 Domestic 10.9 -8.5 10.9 -8.5 45.6 -14.5 45.6 -14.5 Overseas 12.1 7.6 11.3 0.2 47.6 6.4 47.0 5.1 The Americas 3.5 4.7 3.4 0.2 13.8 8.4 13.5 6.2 Europe, Middle East and Africa 3.7 12.0 3.3 0.2 13.2 1.7 13.5 3.7 Other 4.9 6.6 4.6 0.1 20.5 8.3 19.9 5.3 ------------------------------------------------------------------------------------------------------------------------- [Other] Other 39.4 3.5 38.9 2.1 149.0 11.0 148.9 10.9 Domestic 33.0 2.6 33.0 2.6 130.2 6.9 130.2 6.9 Overseas 6.4 8.1 5.9 -0.4 18.8 50.5 18.7 49.3 The Americas 1.3 12.4 1.2 3.7 4.6 91.1 4.5 85.5 Europe, Middle East and Africa 2.1 10.2 1.9 -0.3 7.6 36.2 7.9 40.7 Other 3.0 4.9 2.8 -2.1 6.6 46.3 6.3 40.6 ------------------------------------------------------------------------------------------------------------------------- Grand Total 532.9 5.2 510.0 0.7 1,920.0 0.9 1,916.5 0.7 Domestic 242.1 0.3 242.1 0.3 883.0 -0.4 883.0 -0.4 Overseas 290.8 9.6 267.9 1.0 1,037.0 2.0 1,033.5 1.6 The Americas 132.2 8.7 123.5 1.5 486.0 3.7 472.7 0.8 Europe, Middle East and Africa 122.1 11.0 110.4 0.4 416.4 -1.2 428.9 1.8 Other 36.5 8.3 34.0 0.9 134.5 6.0 131.9 3.9 -------------------------------------------------------------------------------------------------------------------------
* Excluding foreign exchange impact A3