FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of July, 2005
Commission File Number 2 - 68279
RICOH COMPANY, LTD.
-----------------------------------------------
(Translation of Registrant's name into English)
15-5, Minami-Aoyama 1-Chome, Minato-ku, Tokyo 107-8544, Japan
-------------------------------------------------------------
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.)
Form 20-F X Form 40-F __
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): __ )
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): __ )
(Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934.)
Yes __ No X
(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82-__ )
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Ricoh Company, Ltd.
------------------------------
(Registrant)
By: /S/ Zenji Miura
------------------------------
Zenji Miura
Director,
Corporate Executive Vice President
and Chief Financial Officer
July 28, 2005
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[COMPANY LOGO APPEARS HERE] July 28, 2005
QUARTERLY REPORT
First Quarter ended June 30, 2005
(Results for the Period from April 1, 2005 to June 30, 2005)
PERFORMANCE OUTLINE (CONSOLIDATED)
(Billions of yen)
---------------------------------------------------------------------------------------------- ------------------------
Three months ended Three months ended Year ending
June 30, 2005 June 30, 2004 Change March 31, 2006 Change
Results Results Forecast
---------------------------------------------------------------------------------------------- ------------------------
Domestic sales 233.9 233.3 0.3% 999.7 2.7%
Overseas sales 218.9 203.2 7.8% 886.3 5.4%
Net sales 452.9 436.5 3.8% 1,886.0 4.0%
Gross profit 194.7 189.1 2.9% 800.0 6.0%
Operating income 37.2 39.3 -5.3% 160.0 18.1%
Income before income taxes 38.0 41.3 -7.8% 160.0 18.2%
Net income 23.7 24.8 -4.7% 97.0 16.7%
---------------------------------------------------------------------------------------------- ------------------------
Exchange rate (Yen/US$) 107.60 109.65 -2.05 105.65 -1.93
Exchange rate (Yen/EURO) 135.55 132.17 3.38 131.39 -3.86
---------------------------------------------------------------------------------------------- -------------------------
Net income per share (yen) 32.32 33.69 -1.37 132.16 19.52
---------------------------------------------------------------------------------------------- -------------------------
Cash flows from operating activities 48.3 42.2 6.0 - -
Cash flows from investing activities -36.0 -10.8 -25.1 - -
Cash flows from financing activities -52.4 -21.2 -31.1 - -
Cash and cash equivalents at end of period 144.6 215.4 -70.8 - -
---------------------------------------------------------------------------------------------- ------------------------
Capital expenditures 34.7 18.6 16.0 114.0 29.2
Depreciation for tangible fixed assets 15.6 15.9 -0.3 69.0 2.2
R&D expenditures 25.5 24.3 1.1 116.0 5.5
---------------------------------------------------------------------------------------------- ------------------------
----------------------------------------------------------------------------------------------
June 30, 2005 March 31, 2005 Change
----------------------------------------------------------------------------------------------
Total assets 1,899.9 1,953.6 -53.6
Shareholders' equity 879.6 862.9 16.6
Interest-bearing debt 366.4 410.0 -43.6
----------------------------------------------------------------------------------------------
Equity ratio (%) 46.3 44.2 2.1
----------------------------------------------------------------------------------------------
Shareholders' equity per share (yen) 1,198.48 1,175.67 22.81
----------------------------------------------------------------------------------------------
RICOH COMPANY, LTD.
* The Company bases the forecast estimates for the fiscal year ending March 31,
2006 above upon information currently available to management, which involves
risks and uncertainties that could cause actual results to differ materially
from those projected.
1
$$/BREAK/$$END
PERFORMANCE
*Overview
Consolidated net sales for the first quarter of fiscal 2006 (the three months
period from April 1 to June 30, 2005) increased by 3.8% as compared to the
previous corresponding period, to Yen 452.9 billion. During this quarter, the
average yen exchange rates were Yen 107.60 against the U.S. dollar (up Yen 2.05)
and Yen 135.55 against the Euro (down Yen 3.38). Net sales would rise 3.5%
excluding impact of such foreign currency exchange fluctuation.
As for Japan, sales of product categories such as PPCs (plain paper copiers),
MFPs (multifunctional printers) and laser printers, especially color model,
increased. On the other hand, sales of personal computers and PC servers
decreased and sales of optical equipments and semiconductor businesses decreased
due to sluggish demand or its cycle. Consequently, overall domestic sales
increased by 0.3% as compared to the previous corresponding period.
As for overseas, sales of product categories such as digital PPCs, color PPCs,
MFPs and laser printers increased in each region. Sales in the Americas
increased by 11.2% as compared to the previous corresponding period, in spite of
yen's appreciation against the U.S. dollar. Sales in Europe increased by 4.1%
with steady growth of sales volume. And sales in other region such as China,
Asian and Oceania increased by 11.6%, owing to the growth of MFPs sales.
Consequently, overall overseas sales increased by 7.8%.
Gross profit increased by 2.9% to Yen 194.7 billion owing to increased sales of
high-margin, high-value-added products in the Office Solution Business segment
and ongoing cost-cutting activities for logistic, manufacturing and so on.
In terms of selling, general and administrative expenses, R&D expenses were Yen
25.5 billion, up Yen 1.1 billion from the previous corresponding period and 5.6%
of net sales. A part of expenses was spent for reorganization of domestic bases
and restructuring or integration of group companies in Japan and overseas.
Consequently, selling, general and administrative expenses increased by 5.1% to
Yen 157.4 billion.
As a result, operating income decreased by 5.3% as compared to the previous
corresponding period, to Yen 37.2 billion.
In terms of other (income) expenses, the interest expense decreased due to the
interest-bearing debt reduction, yet Ricoh recorded a gain on sale of certain
consolidated subsidiary in the previous corresponding period. As a result,
income before income taxes decreased by 7.8% as compared to the previous
corresponding period, to Yen 38.0 billion.
The expanded amount of tax exemption on the R&D expenses and investing in
Information Technology caused effective tax rate reduced. As a result, net
income decreased by 4.7% as compared to the previous corresponding period, to
Yen 23.7 billion.
2
$$/BREAK/$$END
*Conditions by Product Line
Office Solution Business (Sales up 5.5% to Yen 388.0 billion)
-------------------------------------------------------------
Sales in the Imaging Solution as our core business increased as compared to the
previous corresponding period due primarily to the continuously increase in
domestic and overseas sales of color PPCs, MFPs and laser printers. On the other
hand, net sales in the Network System Solution decreased as compared to the
previous corresponding period due primarily to the decrease in sales of personal
computers and PC servers. As a result, net sales in the Office Solution Business
increased by 5.5% as compared to the previous corresponding period, to Yen 388.0
billion.
Imaging Solution (Sales up 7.7% to Yen 349.4 billion)
-----------------------------------------------------
- Although domestic sales of digital PPCs decreased due primarily to the
shift in customer demands to MFPs from stand-alone products, overseas sales
of digital PPCs continued to perform well.
- Color PPCs increased by introducing a new series of products to the
market in responding to the increase of customer demands.
- In response to the demands for high speed, networking and coloration,
sales of MFPs continued to increase by offering new product
lineups in Japan and overseas.
MFPs: Imagio Neo 603 in Japan
Aficio 2015 overseas
Color MFPs: Imagio Neo C246 in Japan
Aficio 2228C/2235C/2245C series overseas
- Sales of laser printers continued to increase.
- As a result, sales in this category increased by 7.7%.
Network System Solution (Sales down 10.8% to Yen 38.5 billion)
--------------------------------------------------------------
- Sales in this category decreased due primarily to the decrease in sales
of personal computers and PC servers.
As a result, sales in the Office Solution Business increased by 5.5% as compared
to the previous corresponding period. Net operating income in this segment
decreased by 1.7% as compared to the previous corresponding period, to Yen 48.6
billion. Despite the effect of the sales increase and new product offering, and
the continuous cost cutting activities with respect to the improvements on
logistics and manufacturing and so on, it was offset by the costs incurred by
reorganization and integration of domestic bases and overseas subsidiaries and
affiliates.
Industry Business (Sales down 11.8% to Yen 26.0 billion)
--------------------------------------------------------
Sales in the Industry Business decreased by 11.8% as compared to the previous
corresponding period, to Yen 26.0 billion. This was due primarily to the
decrease in demand and the demand cycle of semiconductor and optical equipments
businesses. As a result, net operating loss for this segment was Yen 0.5
billion.
Other Business (Sales down 1.0% to Yen 38.8 billion)
----------------------------------------------------
Sales in the Other Business decreased by 1.0% as compared to the previous
corresponding period, to Yen 38.8 billion, due primarily to the decrease of
optical discs business in overseas. On the other hand, financing and logistics
businesses performed well in profits. As a result, net operating income for this
segment increased as compared to the previous corresponding period, to Yen 0.9
billion.
Note: Effective from this financial period, our business segment is changed into
three categories such as "Office Solution", "Industry" and "Other".
*Cash Flows (Three months from April 1, 2005 to June 30, 2005)
Net cash provided by operating activities increased by Yen 6.0 billion as
compared to the previous corresponding period, to Yen 48.3 billion. It was due
to the fact that the decrease of trade receivables and effective control of
inventories level despite trade payables decreased.
Net cash used in investing activities increased by Yen 25.1 billion as compared
to the previous corresponding period, to Yen 36.0 billion, due primarily to
capital expenditures for R&D and production.
As a result, free cash flow generated by operating and investing activities
decreased by Yen 19.0 billion as compared to the previous corresponding period,
to Yen 12.3 billion.
Net cash used in financing activities amounted to Yen 52.4 billion due primarily
to the repayment of interest-bearing debt such as bonds and the payment of
dividend.
As a result, cash and cash equivalents at the end of this first quarter
decreased by Yen 42.2 billion as compared to the end of the preceding fiscal
year, to Yen 144.6 billion.
3
$$/BREAK/$$END
*Forecast for the entire fiscal year
As for the forecast of business results for the fiscal year ending March 31,
2006, we have revised downward our forecast of sales, gross profit, operating
income, and income before income taxes from announced in April 2005. This
revision reflects the first quarter result, intense market competition, and
expected changes of business environment. We, however, intend to maintain our
forecast for net income in the current fiscal year. We maintain our exchange
rates assumption of Yen 105.00 against the U.S. dollar and of Yen 130.00 against
the Euro in and after the second quarter as announced in April 2005.
Compared to the previous fiscal year, on the other hand, we forecast improvement
both of sales and income. We believe the fluctuations of market demand and
exchange rate will be able to be managed by implementing business strategies,
such as the continuous and effective introduction of new products in Japan and
overseas.
Our performance forecast for fiscal 2006 is as follows:
Exchange Rate Assumptions for the full year ending March 31, 2006
US$ 1 = Yen 105.65 (Yen 107.58 in previous fiscal year)
EURO 1 = Yen 131.39 (Yen 135.25 in previous fiscal year)
(Billions of yen)
--------------------------------------------------------------------------------
Year ending Year ended
March 31, 2006 March 31, 2005 Change
(Forecast) (Results)
--------------------------------------------------------------------------------
Domestic sales 999.7 972.9 2.7%
Overseas sales 886.3 841.1 5.4%
Net sales 1,886.0 1,814.1 4.0%
Gross profit 800.0 754.5 6.0%
Operating income 160.0 135.5 18.1%
Income before income taxes 160.0 135.3 18.2%
Net income 97.0 83.1 16.7%
--------------------------------------------------------------------------------
* Ricoh bases the forecast estimates for the year ending March 31, 2006 above
upon information currently available to management, which involves risks and
uncertainties that could cause actual results to differ materially from those
projected.
4
$$/BREAK/$$END
RICOH COMPANY, LTD. AND CONSOLIDATED SUBSIDIARIES
FINANCIAL HIGHLIGHTS FOR THE FIRST QUARTER ENDED JUNE 30, 2005 (U.S. GAAP
FINANCIAL INFORMATION)
1. ITEMS RELATING TO FIRST QUARTER FINANCIAL STATEMENTS
(1) No change in accounting method has been made.
(2) No change relating to the scale of consolidation and the application of the
equity method has been made.
2. RESULTS FOR THE PERIOD FROM APRIL 1, 2005 TO JUNE 30, 2005
(1) Operating Results (Millions of yen)
--------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Year ended
June 30, 2005 June 30, 2004 March 31, 2005
--------------------------------------------------------------------------------------------------------------------
Net sales 452,982 436,550 1,814,108
(% change from the previous corresponding period) 3.8 -0.2 1.9
Operating income 37,282 39,387 135,506
(% change from the previous corresponding period) -5.3 2.3 -9.7
Income before income taxes 38,095 41,319 135,383
(% change from the previous corresponding period) -7.8 10.7 -5.4
Net income 23,723 24,894 83,143
(% change from the previous corresponding period) -4.7 11.4 -9.4
Net income per share-basic (yen) 32.32 33.69 112.64
Net income per share-diluted (yen) - - -
--------------------------------------------------------------------------------------------------------------------
(2) Financial Position (Millions of yen)
--------------------------------------------------------------------------------------------------------------------
June 30, 2005 June 30, 2004 March 31, 2005
--------------------------------------------------------------------------------------------------------------------
Total assets 1,899,986 1,855,745 1,953,669
Shareholders' equity 879,665 812,915 862,998
Equity ratio (%) 46.3 43.8 44.2
Equity per share (yen) 1,198.48 1,100.24 1,175.67
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Cash Flows (Millions of yen)
--------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Year ended
June 30, 2005 June 30, 2004 March 31, 2005
--------------------------------------------------------------------------------------------------------------------
Cash flows from operating activities 48,350 42,268 132,780
Cash flows from investing activities -36,038 -10,899 -96,198
Cash flows from financing activities -52,430 -21,294 -56,439
Cash and cash equivalents at end of period 144,617 215,467 186,857
--------------------------------------------------------------------------------------------------------------------
3. FORECAST OF OPERATING RESULTS FROM APRIL 1, 2005 TO MARCH 31, 2006
(Millions of yen)
--------------------------------------------------------------------------------------------------------------------
Half year ending Year ending
September 30, 2005 March 31, 2006
--------------------------------------------------------------------------------------------------------------------
Net sales 918,000 1,886,000
Operating income 70,800 160,000
Income before income taxes 71,300 160,000
Net income 43,000 97,000
--------------------------------------------------------------------------------------------------------------------
Note: Net income per share (Consolidated) Yen 132.16
In accordance with Japanese regulations, Ricoh has issued forecast for its
financial results for the fiscal year ending March 31, 2006. These forecast are
forward-looking statements based on a number of assumptions and beliefs in light
of the information.
5
$$/BREAK/$$END
CONSOLIDATED PERFORMANCE
1. CONSOLIDATED STATEMENTS OF INCOME
(Millions of yen)
-----------------------------------------------------------------------------------------------------------
Three months ended Three months ended
June 30, 2005 June 30, 2004 Change %
-----------------------------------------------------------------------------------------------------------
Net sales 452,982 436,550 16,432 3.8
Cost of sales 258,260 247,379 10,881 4.4
Percentage of net sales (%) 57.0 56.7
Gross Profit 194,722 189,171 5,551 2.9
Percentage of net sales (%) 43.0 43.3
Selling, general and administrative expenses 157,440 149,784 7,656 5.1
Percentage of net sales (%) 34.8 34.3
Operating income 37,282 39,387 -2,105 -5.3
Percentage of net sales (%) 8.2 9.0
Other (income) expense
Interest and dividend income 685 603 82 13.6
Percentage of net sales (%) 0.2 0.1
Interest expense 1,009 1,230 -221 -18.0
Percentage of net sales (%) 0.2 0.3
Other, net -1,137 -2,559 1,422 -55.6
Percentage of net sales (%) -0.2 -0.7
Income before income taxes,
equity income and minority interests 38,095 41,319 -3,224 -7.8
Percentage of net sales (%) 8.4 9.5
Provision for income taxes 13,509 15,919 -2,410 -15.1
Percentage of net sales (%) 3.0 3.6
Minority interests in earnings of subsidiaries 1,226 1,118 108 9.7
Percentage of net sales (%) 0.3 0.3
Equity in earnings of affiliates 363 612 -249 -40.7
Percentage of net sales (%) 0.1 0.1
Net income 23,723 24,894 -1,171 -4.7
Percentage of net sales (%) 5.2 5.7
-----------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 107.60 Yen 109.65
EURO 1 Yen 135.55 Yen 132.17
2-1. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Millions of yen)
-----------------------------------------------------------------------------------------------------------
Three months ended Three months ended
June 30, 2005 June 30, 2004 Change %
-----------------------------------------------------------------------------------------------------------
[Office Solution Business]
Imaging Solution Business 349,487 324,494 24,993 7.7
Percentage of net sales (%) 77.2 74.3
Network System Solution Business 38,586 43,251 -4,665 -10.8
Percentage of net sales (%) 8.5 9.9
Office Solution Business Total 388,073 367,745 20,328 5.5
Percentage of net sales (%) 85.7 84.2
-----------------------------------------------------------------------------------------------------------
[Industry Business]
Industry Business 26,078 29,583 -3,505 -11.8
Percentage of net sales (%) 5.8 6.8
-----------------------------------------------------------------------------------------------------------
[Other Business]
Other Business 38,831 39,222 -391 -1.0
Percentage of net sales (%) 8.5 9.0
-----------------------------------------------------------------------------------------------------------
Grand Total 452,982 436,550 16,432 3.8
Percentage of net sales (%) 100.0 100.0
-----------------------------------------------------------------------------------------------------------
Note: Effective from this financial period, our business segment is changed into
three categories such as "Office Solution", "Industry" and "Other". Accordingly,
information for the previous corresponding period has been reclassified to
conform with the current classification.
Each category includes the following product line:
Imaging Solution Business Digital PPCs, color PPCs, digital
duplicators, facsimile machines, analog
PPCs, diazo copiers, scanners,
MFPs(multifunctional printers), laser
printers and software
Network System Solution Business Personal computers, PC servers, network
systems and network related software
Industry Business Thermal media, optical equipments,
semiconductors, electronic component and
measuring equipments
Other Business Optical discs and digital camera
2-2. CONSOLIDATED SALES BY GEOGRAPHIC AREA
(Millions of yen)
-----------------------------------------------------------------------------------------------------------
Three months ended Three months ended Change %
June 30, 2005 June 30, 2004
-----------------------------------------------------------------------------------------------------------
[Domestic] 233,991 233,312 679 0.3
Percentage of net sales (%) 51.7 53.4
[Overseas] 218,991 203,238 15,753 7.8
Percentage of net sales (%) 48.3 46.6
The Americas 87,156 78,401 8,755 11.2
Percentage of net sales (%) 19.2 18.0
Europe 104,479 100,323 4,156 4.1
Percentage of net sales (%) 23.1 23.0
Other 27,356 24,514 2,842 11.6
Percentage of net sales (%) 6.0 5.6
Grand Total 452,982 436,550 16,432 3.8
Percentage of net sales (%) 100.0 100.0
-----------------------------------------------------------------------------------------------------------
6
$$/BREAK/$$END
3. CONSOLIDATED BALANCE SHEETS
Assets (Millions of yen)
-------------------------------------------------------------------------------------------------
June 30, 2005 March 31, 2005 Change
-------------------------------------------------------------------------------------------------
Current Assets
Cash and time deposits 146,312 188,311 -41,999
Trade receivables 589,987 620,568 -30,581
Marketable securities 132 138 -6
Inventories 170,526 167,365 3,161
Other current assets 53,790 53,365 425
Total Current Assets 960,747 1,029,747 -69,000
Fixed Assets
Tangible fixed assets 262,204 247,410 14,794
Finance receivables 395,273 391,947 3,326
Other Investments 281,762 284,565 -2,803
Total Fixed Assets 939,239 923,922 15,317
-------------------------------------------------------------------------------------------------
Total Assets 1,899,986 1,953,669 -53,683
-------------------------------------------------------------------------------------------------
Note:
Contents of cash and time deposits:
Cash and cash equivalents 144,617 186,857
Time deposits 1,695 1,454
Liabilities and Shareholders' Investment (Millions of yen)
-------------------------------------------------------------------------------------------------
June 30, 2005 March 31, 2005 Change
-------------------------------------------------------------------------------------------------
Current Liabilities
Trade payables 302,147 336,499 -34,352
Short-term borrowings 158,956 183,518 -24,562
Other current liabilities 158,991 151,497 7,494
Total Current Liabilities 620,094 671,514 -51,420
Fixed Liabilities
Long-term indebtedness 207,499 226,567 -19,068
Accrued pension and severance costs 93,576 92,672 904
Other fixed liabilities 46,974 48,767 -1,793
Total Fixed Liabilities 348,049 368,006 -19,957
-------------------------------------------------------------------------------------------------
Total Liabilities 968,143 1,039,520 -71,377
-------------------------------------------------------------------------------------------------
Minority Interest 52,178 51,151 1,027
-------------------------------------------------------------------------------------------------
Shareholders' Investment
Common stock 135,364 135,364 -
Additional paid-in capital 186,548 186,551 -3
Retained earnings 600,890 584,515 16,375
Accumulated other comprehensive income (loss) -21,597 -21,963 366
Treasury stock -21,540 -21,469 -71
Total Shareholders' Investment 879,665 862,998 16,667
-------------------------------------------------------------------------------------------------
Total Liabilities and Shareholders' Investment 1,899,986 1,953,669 -53,683
-------------------------------------------------------------------------------------------------
Note: Other comprehensive income;
Net unrealized holding gains on available-for-sale
securities 5,007 4,791 216
Pension liability adjustments -14,773 -14,652 -121
Net unrealized gains (losses) on derivative
instruments 122 117 5
Cumulative translation adjustments -11,953 -12,219 266
Reference: Exchange rate June 30, 2005 March 31, 2005
US$ 1 Yen 110.62 Yen 107.39
EURO 1 Yen 133.63 Yen 138.87
7
$$/BREAK/$$END
4. CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions of yen)
------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
June 30, 2005 June 30, 2004
------------------------------------------------------------------------------------------------------------------
I. Cash Flows from Operating Activities:
1. Net income 23,723 24,894
2. Adjustments to reconcile net income to net cash
provided by operating activities--
Depreciation and amortization 19,632 18,790
Equity in earnings of affiliates, net of dividends received 113 -158
Deferred income taxes 653 2,771
Loss on disposals and sales of tangible fixed assets 405 17
Changes in assets and liabilities--
Decrease in trade receivables 32,314 23,735
Increase in inventories -2,209 -7,841
Increase in finance receivables -6,166 -13,546
Decrease in trade payables -32,329 -11,390
Increase in accrued income taxes and
accrued expenses and other 7,241 3,074
Increase (Decrease) accrued pension and severance costs 883 -429
Other, net 4,090 2,351
------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 48,350 42,268
------------------------------------------------------------------------------------------------------------------
II. Cash Flows from Investing Activities:
1. Proceeds from sales of property, plant and equipment 21 535
2. Expenditures for tangible fixed assets -34,720 -18,647
3. Payments for purchases of available-for-sale securities -36,105 -137
4. Proceeds from sales of available-for-sale securities 36,542 5
5. Increase in time deposits -196 -1,182
6. Other, net -1,580 8,527
------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities -36,038 -10,899
------------------------------------------------------------------------------------------------------------------
III. Cash Flows from Financing Activities:
1. Proceeds from long-term indebtedness 13,366 14,734
2. Repayment of long-term indebtedness -20,420 -18,929
3. Increase (Decrease) in short-term borrowings, net 3,308 -342
4. Proceeds from issuance of long-term debt securities -- 1,000
5. Repayment of long-term debt securities -41,000 -10,000
6. Dividends paid -7,348 -7,405
7. Payment for purchase of treasury stock -100 -98
8. Other, net -236 -254
------------------------------------------------------------------------------------------------------------------
Net cash used in financing activities -52,430 -21,294
------------------------------------------------------------------------------------------------------------------
IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents -2,122 -122
------------------------------------------------------------------------------------------------------------------
V. Net Increase (Decrease) in Cash and Cash Equivalents -42,240 9,953
------------------------------------------------------------------------------------------------------------------
VI. Cash and Cash Equivalents at Beginning of Year 186,857 203,039
VII. Adjustment for Change in Fiscal Year End of Consolidated Subsidiaries -- 2,475
------------------------------------------------------------------------------------------------------------------
VIII. Cash and Cash Equivalents at End of Period 144,617 215,467
------------------------------------------------------------------------------------------------------------------
8
$$/BREAK/$$END
5. SEGMENT INFORMATION
(1) Industry Segment Information
(Millions of yen)
--------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
June 30, 2005 June 30, 2004 Change %
--------------------------------------------------------------------------------------------------------------------
OFFICE SOLUTION BUSINESS:
Net sales:
Unaffiliated customers 388,073 367,745 20,328 5.5
Intersegment - - - -
Total 388,073 367,745 20,328 5.5
--------------------------------------------------------------------------------------------------------------------
Operating expenses 339,394 318,210 21,184 6.7
--------------------------------------------------------------------------------------------------------------------
Operating income 48,679 49,535 -856 -1.7
Operating income on sales in Office Solution Business (%) 12.5 13.5
--------------------------------------------------------------------------------------------------------------------
INDUSTRY BUSINESS:
Net sales:
Unaffiliated customers 26,078 29,583 -3,505 -11.8
Intersegment 586 668 -82 -12.3
Total 26,664 30,251 -3,587 -11.9
--------------------------------------------------------------------------------------------------------------------
Operating expenses 27,188 29,220 -2,032 -7.0
--------------------------------------------------------------------------------------------------------------------
Operating income -524 1,031 -1,555 -
Operating income on sales in Industry Business (%) -2.0 3.4
--------------------------------------------------------------------------------------------------------------------
OTHER BUSINESS:
Net sales:
Unaffiliated customers 38,831 39,222 -391 -1.0
Intersegment - - - -
Total 38,831 39,222 -391 -1.0
--------------------------------------------------------------------------------------------------------------------
Operating expenses 37,873 38,591 -718 -1.9
--------------------------------------------------------------------------------------------------------------------
Operating income 958 631 327 51.8
Operating income on sales in Other Business (%) 2.5 1.6
--------------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -586 -668 82 -
Total -586 -668 82 -
--------------------------------------------------------------------------------------------------------------------
Operating expenses:
Intersegment -594 -678 84 -
Corporate 11,839 11,820 19 -
Total 11,245 11,142 103 -
--------------------------------------------------------------------------------------------------------------------
Operating income -11,831 -11,810 -21 -
--------------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
Unaffiliated customers 452,982 436,550 16,432 3.8
Intersegment - - - -
Total 452,982 436,550 16,432 3.8
--------------------------------------------------------------------------------------------------------------------
Operating expenses 415,700 397,163 18,537 4.7
--------------------------------------------------------------------------------------------------------------------
Operating income 37,282 39,387 -2,105 -5.3
Operating income on consolidated net sales (%) 8.2 9.0
--------------------------------------------------------------------------------------------------------------------
Note: Effective from this financial period, our business segment is changed into
three categories such as "Office Solution", "Industry" and "Other". Accordingly,
information for the previous corresponding period has been reclassified to
conform with the current classification.
9
$$/BREAK/$$END
(2) Geographic Segment Information
(Millions of yen)
--------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
June 30, 2005 June 30, 2004 Change %
--------------------------------------------------------------------------------------------------------------------
JAPAN:
Net sales:
External customers 241,524 239,663 1,861 0.8
Intersegment 104,986 96,410 8,576 8.9
Total 346,510 336,073 10,437 3.1
--------------------------------------------------------------------------------------------------------------------
Operating expenses 317,403 304,421 12,982 4.3
--------------------------------------------------------------------------------------------------------------------
Operating income 29,107 31,652 -2,545 -8.0
Operating income on sales in Japan (%) 8.4 9.4
--------------------------------------------------------------------------------------------------------------------
THE AMERICAS:
Net sales:
External customers 86,298 76,632 9,666 12.6
Intersegment 1,308 1,295 13 1.0
Total 87,606 77,927 9,679 12.4
--------------------------------------------------------------------------------------------------------------------
Operating expenses 86,282 76,053 10,229 13.4
--------------------------------------------------------------------------------------------------------------------
Operating income 1,324 1,874 -550 -29.3
Operating income on sales in the Americas (%) 1.5 2.4
--------------------------------------------------------------------------------------------------------------------
EUROPE:
Net sales:
External customers 103,476 100,626 2,850 2.8
Intersegment 1,120 941 179 19.0
Total 104,596 101,567 3,029 3.0
--------------------------------------------------------------------------------------------------------------------
Operating expenses 98,698 95,414 3,284 3.4
--------------------------------------------------------------------------------------------------------------------
Operating income 5,898 6,153 -255 -4.1
Operating income on sales in Europe (%) 5.6 6.1
--------------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 21,684 19,629 2,055 10.5
Intersegment 23,627 21,010 2,617 12.5
Total 45,311 40,639 4,672 11.5
--------------------------------------------------------------------------------------------------------------------
Operating expenses 42,126 38,239 3,887 10.2
--------------------------------------------------------------------------------------------------------------------
Operating income 3,185 2,400 785 32.7
Operating income on sales in Other (%) 7.0 5.9
--------------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -131,041 -119,656 -11,385 -
Total -131,041 -119,656 -11,385 -
--------------------------------------------------------------------------------------------------------------------
Operating expenses -128,809 -116,964 -11,845 -
--------------------------------------------------------------------------------------------------------------------
Operating income -2,232 -2,692 460 -
--------------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 452,982 436,550 16,432 3.8
Intersegment - - - -
Total 452,982 436,550 16,432 3.8
--------------------------------------------------------------------------------------------------------------------
Operating expenses 415,700 397,163 18,537 4.7
--------------------------------------------------------------------------------------------------------------------
Operating income 37,282 39,387 -2,105 -5.3
Operating income on consolidated net sales (%) 8.2 9.0
--------------------------------------------------------------------------------------------------------------------
10
$$/BREAK/SECTION=A/ELEMENT=1
/NOPRE/NOPOST/NOFOLIO/$$END
-APPENDIX- (Three months ended June 30, 2005)
1. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Millions of yen)
------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Change excluding
June 30, 2005 June 30, 2004 Change % exchange impact %
------------------------------------------------------------------------------------------------------------------------
[Office Solution Business]
Imaging Solution Business 349,487 324,494 24,993 7.7 24,043 7.4
Percentage of net sales (%) 77.2 74.3
Domestic 149,622 139,352 10,270 7.4 10,270 7.4
Overseas 199,865 185,142 14,723 8.0 13,773 7.4
Network System Solution Business 38,586 43,251 -4,665 -10.8 -4,687 -10.8
Percentage of net sales (%) 8.5 9.9
Domestic 36,599 41,839 -5,240 -12.5 -5,240 -12.5
Overseas 1,987 1,412 575 40.7 553 39.2
Office Solution Business Total 388,073 367,745 20,328 5.5 19,356 5.3
Percentage of net sales (%) 85.7 84.2
Domestic 186,221 181,191 5,030 2.8 5,030 2.8
Overseas 201,852 186,554 15,298 8.2 14,326 7.7
The Americas 82,966 74,145 8,821 11.9 10,404 14.0
Europe 98,671 93,979 4,692 5.0 2,353 2.5
Other 20,215 18,430 1,785 9.7 1,569 8.5
------------------------------------------------------------------------------------------------------------------------
[Industry Business]
Industry Business 26,078 29,583 -3,505 -11.8 -3,526 -11.9
Percentage of net sales (%) 5.8 6.8
Domestic 15,858 20,278 -4,420 -21.8 -4,420 -21.8
Overseas 10,220 9,305 915 9.8 894 9.6
The Americas 3,139 2,342 797 34.0 857 36.6
Europe 3,945 3,549 396 11.2 305 8.6
Other 3,136 3,414 -278 -8.1 -268 -7.9
------------------------------------------------------------------------------------------------------------------------
[Other Business]
Other Business 38,831 39,222 -391 -1.0 -404 -1.0
Percentage of net sales (%) 8.5 9.0
Domestic 31,912 31,843 69 0.2 69 0.2
Overseas 6,919 7,379 -460 -6.2 -473 -6.4
The Americas 1,051 1,914 -863 -45.1 -859 -44.9
Europe 1,863 2,795 -932 -33.3 -965 -34.5
Other 4,005 2,670 1,335 50.0 1,351 50.6
------------------------------------------------------------------------------------------------------------------------
Grand Total 452,982 436,550 16,432 3.8 15,426 3.5
Percentage of net sales (%) 100.0 100.0
Domestic 233,991 233,312 679 0.3 679 0.3
Percentage of net sales (%) 51.7 53.4
Overseas 218,991 203,238 15,753 7.8 14,747 7.3
Percentage of net sales (%) 48.3 46.6
The Americas 87,156 78,401 8,755 11.2 10,402 13.3
Percentage of net sales (%) 19.2 18.0
Europe 104,479 100,323 4,156 4.1 1,693 1.7
Percentage of net sales (%) 23.1 23.0
Other 27,356 24,514 2,842 11.6 2,652 10.8
Percentage of net sales (%) 6.0 5.6
------------------------------------------------------------------------------------------------------------------------
Reference: Exchange rate
US$ 1 Yen 107.60 Yen 109.65 Yen -2.05
EURO 1 Yen 135.55 Yen 132.17 Yen 3.38
Each category includes the following product line:
Imaging Solution Business Digital PPCs, color PPCs, digital
duplicators, facsimile machines, analog
PPCs, diazo copiers, scanners,
MFPs(multifunctional printers), laser
printers and software
Network System Solution Business Personal computers, PC servers, network
systems and network related software
Industry Business Thermal media, optical equipments,
semiconductors, electronic component and
measuring equipments
Other Business Optical discs and digital camera
A1
$$/BREAK/$$END
2. CONSOLIDATED SALES BY PREVIOUS PRODUCT CATEGORY (FOR REFERENCE)
(Millions of yen)
-----------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Change excluding
June 30, 2005 June 30, 2004 Change % exchange impact %
-----------------------------------------------------------------------------------------------------------------------
[Office Equipment]
Imaging Solutions:
Digital Imaging Systems 140,270 139,383 887 0.6 867 0.6
Percentage of net sales (%) 31.0 31.9
Domestic 56,811 59,106 -2,295 -3.9 -2,295 -3.9
Overseas 83,459 80,277 3,182 4.0 3,162 3.9
Other Imaging Systems 39,498 42,246 -2,748 -6.5 -2,913 -6.9
Percentage of net sales (%) 8.7 9.7
Domestic 15,441 15,995 -554 -3.5 -554 -3.5
Overseas 24,057 26,251 -2,194 -8.4 -2,359 -9.0
Total Imaging Solutions 179,768 181,629 -1,861 -1.0 -2,046 -1.1
Percentage of net sales (%) 39.7 41.6
Domestic 72,252 75,101 -2,849 -3.8 -2,849 -3.8
Overseas 107,516 106,528 988 0.9 803 0.8
-----------------------------------------------------------------------------------------------------------------------
Network Input/Output Systems:
Printing Systems 180,221 151,970 28,251 18.6 27,468 18.1
Percentage of net sales (%) 39.8 34.8
Domestic 80,062 66,715 13,347 20.0 13,347 20.0
Overseas 100,159 85,255 14,904 17.5 14,121 16.6
Other Input/Output Systems 3,209 5,385 -2,176 -40.4 -2,182 -40.5
Percentage of net sales (%) 0.7 1.2
Domestic 727 939 -212 -22.6 -212 -22.6
Overseas 2,482 4,446 -1,964 -44.2 -1,970 -44.3
Total Network Input/Output Systems 183,430 157,355 26,075 16.6 25,286 16.1
Percentage of net sales (%) 40.5 36.0
Domestic 80,789 67,654 13,135 19.4 13,135 19.4
Overseas 102,641 89,701 12,940 14.4 12,151 13.5
-----------------------------------------------------------------------------------------------------------------------
Network System Solutions 40,210 44,989 -4,779 -10.6 -4,801 -10.7
Percentage of net sales (%) 8.9 10.4
Domestic 38,223 43,577 -5,354 -12.3 -5,354 -12.3
Overseas 1,987 1,412 575 40.7 553 39.2
-----------------------------------------------------------------------------------------------------------------------
Office Equipment Total 403,408 383,973 19,435 5.1 18,439 4.8
Percentage of net sales (%) 89.1 88.0
Domestic 191,264 186,332 4,932 2.6 4,932 2.6
Overseas 212,144 197,641 14,503 7.3 13,507 6.8
The Americas 86,960 78,225 8,735 11.2 10,378 13.3
Europe 102,971 99,511 3,460 3.5 1,028 1.0
Other 22,213 19,905 2,308 11.6 2,101 10.6
-----------------------------------------------------------------------------------------------------------------------
[Other Business]
Other Business 49,574 52,577 -3,003 -5.7 -3,013 -5.7
Percentage of net sales (%) 10.9 12.0
Domestic 42,727 46,980 -4,253 -9.1 -4,253 -9.1
Overseas 6,847 5,597 1,250 22.3 1,240 22.2
The Americas 196 176 20 11.4 24 13.6
Europe 1,508 812 696 85.7 665 81.9
Other 5,143 4,609 534 11.6 551 12.0
-----------------------------------------------------------------------------------------------------------------------
Grand Total 452,982 436,550 16,432 3.8 15,426 3.5
Percentage of net sales (%) 100.0 100.0
Domestic 233,991 233,312 679 0.3 679 0.3
Percentage of net sales (%) 51.7 53.4
Overseas 218,991 203,238 15,753 7.8 14,747 7.3
Percentage of net sales (%) 48.3 46.6
The Americas 87,156 78,401 8,755 11.2 10,402 13.3
Percentage of net sales (%) 19.2 18.0
Europe 104,479 100,323 4,156 4.1 1,693 1.7
Percentage of net sales (%) 23.1 23.0
Other 27,356 24,514 2,842 11.6 2,652 10.8
Percentage of net sales (%) 6.0 5.6
-----------------------------------------------------------------------------------------------------------------------
Reference: Exchange rate
US$ 1 Yen 107.60 Yen 109.65 Yen -2.05
EURO 1 Yen 135.55 Yen 132.17 Yen 3.38
Each category includes the following product line:
Digital Imaging Systems Digital PPCs, color PPCs, digital duplicators
and facsimile machines
Other Imaging Systems Analog PPCs, diazo copiers, and thermal paper
Printing Systems MFPs(multifunctional printers), laser
printers and software
Other Input/Output Systems Optical discs and system scanners
Network System Solutions Personal computers, PC servers, network
systems and network related software
Other Business Optical equipments, metering equipments and
semiconductors
A2
$$/BREAK/$$END
3. FORECAST OF CONSOLIDATED PERFORMANCE
(Billions of yen)
------------------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ending Half year ending Year ending
June 30, 2005 Change Sept. 30, 2005 Change Sept. 30, 2005 Change Mar. 31, 2006 Change
Results % Forecast % Forecast % Forecast %
------------------------------------------------------------------------------------------------------------------------------------
Net sales 452.9 3.8 465.0 5.8 918.0 4.8 1,886.0 4.0
Gross profit 194.7 2.9 192.6 10.3 387.4 6.5 800.0 6.0
Operating income 37.2 -5.3 33.5 82.5 70.8 22.6 160.0 18.1
Income before income taxes 38.0 -7.8 33.2 77.1 71.3 18.7 160.0 18.2
Net income 23.7 -4.7 19.2 76.4 43.0 20.0 97.0 16.7
------------------------------------------------------------------------------------------------------------------------------------
Net income per share (yen) 32.32 - 26.26 - 58.58 - 132.16 -
------------------------------------------------------------------------------------------------------------------------------------
Capital expenditures 34.7 - 23.7 - 58.5 - 114.0 -
Depreciation for tangible
fixed assets 15.6 - 17.3 - 33.0 - 69.0 -
R&D expenditures 25.5 - 29.9 - 55.5 - 116.0 -
------------------------------------------------------------------------------------------------------------------------------------
Exchange rate (Yen/US$) 107.60 - 105.00 - 106.30 - 105.65 -
Exchange rate (Yen/EURO) 135.55 - 130.00 - 132.78 - 131.39 -
------------------------------------------------------------------------------------------------------------------------------------
4. FORECAST OF CONSOLIDATED SALES BY PRODUCT CATEGORY
(Billions of yen)
--------------------------------------------------------------------------------------------------------------------------
Half year ending September 30, 2005 Year ending March 31, 2006
----------------------------------- --------------------------
Change Change Change Change
Forecast % Forecast(*) % Forecast % Forecast(*) %
--------------------------------------------------------------------------------------------------------------------------
[Office Solution Business]
Imaging Solution Business 694.6 8.7 701.0 9.7 1,410.9 5.9 1,429.2 7.3
Domestic 293.6 9.6 293.6 9.6 600.0 6.4 600.0 6.4
Overseas 401.0 8.0 407.4 9.7 810.8 5.6 829.2 8.0
Network System Solution
Business 90.9 -4.9 90.9 -4.9 201.7 1.3 201.7 1.3
Domestic 86.9 -6.2 86.9 -6.2 193.4 0.6 193.4 0.6
Overseas 3.9 36.4 3.9 35.6 8.2 21.4 8.2 21.2
Office Solution Business
Total 785.6 6.9 791.9 7.8 1,612.7 5.3 1,631.0 6.5
Domestic 380.5 5.6 380.5 5.6 793.5 4.9 793.5 4.9
Overseas 405.0 8.2 411.3 9.9 819.1 5.7 837.4 8.1
The Americas 170.0 10.6 175.6 14.3 338.7 8.5 344.9 10.5
Europe 189.4 4.4 190.1 4.8 391.5 1.5 403.3 4.6
Other 45.5 16.7 45.5 16.9 88.8 15.2 89.1 15.7
--------------------------------------------------------------------------------------------------------------------------
[Industry Business]
Industry Business 56.4 -4.0 56.5 -3.7 116.1 -2.7 116.7 -2.2
Domestic 36.4 -8.1 36.4 -8.1 76.4 -5.4 76.4 -5.4
Overseas 19.9 4.5 20.0 5.5 39.7 3.0 40.2 4.5
The Americas 5.8 14.1 5.9 17.3 11.8 17.1 11.9 18.7
Europe 7.5 4.6 7.5 4.7 14.5 -5.2 14.9 -2.5
Other 6.5 -2.8 6.5 -2.7 13.3 1.6 13.3 1.7
--------------------------------------------------------------------------------------------------------------------------
[Other Business]
Other Business 75.9 -8.0 76.1 -7.8 157.0 -3.8 157.7 -3.4
Domestic 63.3 -8.3 63.3 -8.3 129.6 -4.4 129.6 -4.4
Overseas 12.6 -6.9 12.8 -5.6 27.4 -0.6 28.1 1.9
The Americas 1.6 -33.6 1.6 -33.5 1.8 -43.9 1.8 -43.9
Europe 3.4 -19.4 3.4 -20.2 8.7 11.2 9.0 15.1
Other 7.5 10.9 7.7 13.9 16.8 2.4 17.2 4.8
--------------------------------------------------------------------------------------------------------------------------
Grand Total 918.0 4.8 924.6 5.6 1,886.0 4.0 1,905.6 5.0
Domestic 480.4 2.4 480.4 2.4 999.7 2.7 999.7 2.7
Overseas 437.6 7.6 444.2 9.2 886.3 5.4 905.9 7.7
The Americas 177.5 10.1 183.3 13.6 352.4 8.2 358.7 10.2
Europe 200.4 3.9 201.1 4.2 414.8 1.5 427.3 4.5
Other 59.5 13.4 59.8 14.0 118.9 11.6 119.7 12.3
--------------------------------------------------------------------------------------------------------------------------
* Excluding foreign exchange impact
Each category includes the following product line:
Imaging Solution Business Digital PPCs, color PPCs, digital
duplicators, facsimile machines, analog
PPCs, diazo copiers, scanners,
MFPs(multifunctional printers), laser
printers and software
Network System Solution Business Personal computers, PC servers, network
systems and network related software
Industry Business Thermal media, optical equipments,
semiconductors, electronic component and
measuring equipments
Other Business Optical discs and digital camera
A3