FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of April 2012
Commission File Number 2 - 68279
RICOH COMPANY, LTD.
-----------------------------------------------
(Translation of Registrant's name into English)
13-1, Ginza 8-Chome, Chuo-ku, Tokyo 104-8222, Japan
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(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
Representative Director,
Deputy President and
Chief Financial Officer
April 26, 2012
RICOH April 26, 2012
FLASH REPORT
Year ended March 31, 2012
(Results for the Period from April 1, 2011 to March 31, 2012)
Three months ended March 31, 2012
(Results for the Period from January 1, 2012 to March 31, 2012)
PERFORMANCE OUTLINE (CONSOLIDATED)
(1) Year ended March 31, 2011, 2012 and Year ending March 31, 2013 (Forecast)
(Billions of yen)
------------------------------------------------------------------------------------------------------- ----------------------
Year ended Year ended Year ending
March 31, 2011 March 31, 2012 March 31, 2013
(Results) (Results) Change (Forecast) Change
------------------------------------------------------------------------------------------------------- ----------------------
Domestic sales 875.8 886.4 1.2% 901.0 1.6%
Overseas sales 1,065.5 1,017.0 -4.5% 1,019.0 0.2%
Net sales 1,941.3 1,903.4 -2.0% 1,920.0 0.9%
Gross profit 788.9 752.6 -4.6% 760.0 1.0%
Operating income (loss) 58.0 -18.0 -- 70.0 --
Income (loss) before income taxes 44.1 -31.9 -- 62.5 --
Net income (loss) attributable to Ricoh Company, Ltd. 18.6 -44.5 -- 33.0 --
------------------------------------------------------------------------------------------------------- ----------------------
Exchange rate (Yen/US$) 85.77 79.08 -6.69 75.00 -4.08
Exchange rate (Yen/EURO) 113.28 109.05 -4.23 105.00 -4.05
------------------------------------------------------------------------------------------------------- ----------------------
Net income (loss) attributable to Ricoh Company, Ltd.
shareholders per share-basic (yen) 25.68 -61.42 -87.10 45.49 106.91
Net income (loss) attributable to Ricoh Company, Ltd.
shareholders per share-diluted (yen) 25.15 -61.42 -86.57 45.49 106.91
------------------------------------------------------------------------------------------------------- ----------------------
Return on equity attributable to Ricoh Company, Ltd.(%) 2.0 -5.1 -7.1 -- --
Income (loss) before income taxes on total assets (%) 1.9 -1.4 -3.3 -- --
Operating income (loss) on net sales (%) 3.0 -0.9 -3.9 3.6 4.5
------------------------------------------------------------------------------------------------------- ----------------------
Total assets 2,255.5 2,289.3 33.7 -- --
Ricoh Company, Ltd. shareholders' equity 925.2 822.7 -102.5 -- --
Interest-bearing debt 629.6 741.8 112.2 -- --
------------------------------------------------------------------------------------------------------- ----------------------
Ricoh Company, Ltd. shareholders' equity ratio (%) 41.0 35.9 -5.1 -- --
------------------------------------------------------------------------------------------------------- ----------------------
Ricoh Company, Ltd. shareholders' equity per share (yen) 1,275.31 1,134.64 -140.67 -- --
------------------------------------------------------------------------------------------------------- ----------------------
Cash flows from operating activities 128.6 11.2 -117.4 -- --
Cash flows from investing activities -91.9 -112.4 -20.5 -- --
Cash flows from financing activities -92.9 87.8 180.7 -- --
Cash and cash equivalents at end of period 172.2 156.2 -16.0 -- --
------------------------------------------------------------------------------------------------------- ----------------------
Capital expenditures 66.8 73.2 6.3 83.0 9.7
Depreciation for tangible fixed assets 67.2 64.9 -2.2 65.0 0.1
R&D expenditures 110.5 119.0 8.4 117.0 -2.0
------------------------------------------------------------------------------------------------------- ----------------------
Number of employees (Japan) (thousand people) 40.1 38.5 -1.6 -- --
Number of employees (Overseas) (thousand people) 68.9 70.7 1.8 -- --
------------------------------------------------------------------------------------------------------- ----------------------
RICOH COMPANY, LTD.
* Ricoh bases the forecast estimates for March 31, 2013 above upon information
currently available to management, which involves risks and uncertainties
that could cause actual results to differ materially from those projected.
* Ricoh has accounted for subsidiaries that changed their fiscal year-ends
from December 31 to March 31 as if their fiscal year-ends in prior years
were March 31 and has restated prior-year consolidated financial statements.
The changes from the previous corresponding period is based on the figures
retrospectively adjusted . Please see (8) Changes in Significant Accounting
Policies (Consolidated) on page 24.
1
(2) Three months ended March 31, 2011 and 2012
(Billions of yen)
---------------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2011 March 31, 2012 Change
---------------------------------------------------------------------------------------------------------------------------------
Domestic sales 225.7 241.3 6.9%
Overseas sales 274.0 265.2 -3.2%
Net sales 499.8 506.6 1.4%
Gross profit 189.2 184.3 -2.6%
Operating income 5.6 18.9 235.2%
Income before income taxes 3.9 16.6 316.9%
Net income (loss) attributable to Ricoh Company, Ltd. -2.5 8.6 --
---------------------------------------------------------------------------------------------------------------------------------
Exchange rate (Yen/US$) 82.32 79.32 -3.00
Exchange rate (Yen/EURO) 112.51 104.04 -8.47
---------------------------------------------------------------------------------------------------------------------------------
Net income (loss) attributable to Ricoh Company, Ltd.
shareholders per share-basic (yen) -3.49 11.89 15.38
Net income (loss) attributable to Ricoh Company, Ltd.
shareholders per share-diluted (yen) -3.49 11.89 15.38
---------------------------------------------------------------------------------------------------------------------------------
Return on equity attributable to Ricoh Company, Ltd.(%) -0.3 1.0 1.3
Income before income taxes on total assets (%) 0.2 0.7 0.5
Operating income on net sales (%) 1.1 3.7 2.6
---------------------------------------------------------------------------------------------------------------------------------
Capital expenditures 18.2 19.3 1.1
Depreciation for tangible fixed assets 17.0 18.1 1.0
R&D expenditures 29.2 29.7 0.5
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2
RICOH COMPANY, LTD. AND CONSOLIDATED SUBSIDIARIES
FLASH REPORT (CONSOLIDATED RESULTS FOR THE YEAR ENDED MARCH 31, 2012)
1. RESULTS FOR THE PERIOD FROM APRIL 1, 2011 TO MARCH 31, 2012
(1) Operating Results
(Millions of yen)
-------------------------------------------------------------------------------
Year ended Year ended
March 31, 2011 March 31, 2012
-------------------------------------------------------------------------------
Net sales 1,941,336 1,903,477
(% change from the previous corresponding
period) -3.7 -2.0
Operating income (loss) 58,071 -18,068
(% change from the previous corresponding
period) -11.9 --
Income (loss) before income taxes 44,169 -31,937
(% change from the previous corresponding
period) -22.6 --
Net income (loss) attributable to Ricoh Company, Ltd. 18,630 -44,560
(% change from the previous corresponding
period) -31.1 --
Net income (loss) attributable to Ricoh Company, Ltd.
shareholders per share-basic (yen) 25.68 -61.42
Net income (loss) attributable to Ricoh Company, Ltd.
shareholders per share-diluted (yen) 25.15 -61.42
-------------------------------------------------------------------------------
Return on equity attributable to Ricoh Company,
Ltd.(%) 2.0 -5.1
Income (loss) before income taxes on total assets (%) 2.0 -1.4
Operating income (loss) on net sales (%) 3.0 -0.9
-------------------------------------------------------------------------------
Notes:
i. Comprehensive loss: Yen 74,059 million ( - %) (Yen 16,311 million ( -
%) in loss in previous fiscal year)
ii. Equity in income of affiliates: Yen 39 million (Yen 22 million in loss
in previous fiscal year)
(2) Financial Position
(Millions of yen)
-------------------------------------------------------------------------------
March 31, 2011 March 31, 2012
-------------------------------------------------------------------------------
Total assets 2,255,564 2,289,358
Total equity 978,130 879,018
Ricoh Company, Ltd. shareholders' equity 925,243 822,704
Ricoh Company, Ltd. shareholders' equity
ratio (%) 41.0 35.9
Ricoh Company, Ltd. shareholders' equity
per share (yen) 1,275.31 1,134.64
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(3) Cash Flows
(Millions of yen)
-------------------------------------------------------------------------------
Year ended Year ended
March 31, 2011 March 31, 2012
-------------------------------------------------------------------------------
Cash flows from operating activities 128,636 11,206
Cash flows from investing activities -91,906 -112,443
Cash flows from financing activities -92,963 87,823
Cash and cash equivalents at end of period 172,221 156,210
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2. DIVIDEND INFORMATION
(Millions of yen)
------------------------------------------------------------------------------------------
Year ended Year ended Year ending
March 31, 2011 March 31, 2012 March 31, 2013
------------------------------------------------------------------------------------------
Cash dividends, applicable to the year (yen) 33.00 25.00 25.00
Half year (yen) 16.50 16.50 12.50
Year-end (yen) 16.50 8.50 12.50
Total annual dividends (millions of yen) 23,943 18,133
Payout Ratio (%) 128.5 -- 55.0
Dividends on shareholders' equity (%) 2.5 2.1
------------------------------------------------------------------------------------------
3. FORECAST OF OPERATING RESULTS FROM APRIL 1, 2012 TO MARCH 31, 2013
(Millions of yen)
-------------------------------------------------------------------------------
Year ending
March 31, 2013
-------------------------------------------------------------------------------
Net sales 1,920,000
Operating income 70,000
Income before income taxes 62,500
Net income attributable to Ricoh Company, Ltd. 33,000
Net income attributable to Ricoh Company, Ltd. shareholders
per share (yen) 45.49
-------------------------------------------------------------------------------
3
4. OTHERS
(1) Changes in significant subsidiaries: No
(2) Change in accounting method has been made.
* Please see (8) Changes in Significant Accounting Policies (Consolidated) on
page 24.
(3) Number of common stock outstanding (including treasury stock):
As of March 31, 2012 744,912,078 shares As of March 31, 2011 744,912,078 shares
(4) Number of treasury stock:
As of March 31, 2012 19,831,060 shares As of March 31, 2011 19,409,410 shares
(5) Average number of common stock:
As of March 31, 2012 725,483,319 shares As of March 31, 2011 725,554,477 shares
(REFERENCE) NON-CONSOLIDATED INFORMATION
1. RESULTS FOR THE PERIOD FROM APRIL 1, 2011 TO MARCH 31, 2012
(1) Operating Results
(Millions of yen)
-------------------------------------------------------------------------------
Year ended Year ended
March 31, 2011 March 31, 2012
-------------------------------------------------------------------------------
Net sales 842,297 795,471
(% change from the previous corresponding
period) -0.8 -5.6
Operating loss -6,397 -31,927
(% change from the previous corresponding
period) -- --
Ordinary income (loss) 7,126 -7,402
(% change from the previous corresponding
period) -73.5 --
Net income (loss) 9,714 -128,678
(% change from the previous corresponding
period) -58.3 --
Net income (loss) per share-basic (yen) 13.39 -177.37
Net income (loss) per share-diluted (yen) 13.07 --
-------------------------------------------------------------------------------
(2) Financial Position
(Millions of yen)
-------------------------------------------------------------------------------
March 31, 2011 March 31, 2012
-------------------------------------------------------------------------------
Total assets 1,252,421 1,135,182
Net assets 752,137 599,269
Equity ratio (%) 60.1 52.8
Net assets per share (yen) 1,036.71 826.02
-------------------------------------------------------------------------------
* Equity capital March 31, 2012 Yen 599,269 million March 31, 2011 Yen 752,137 million
4
1. PERFORMANCE
(1) OPERATING RESULTS
*Overview
Consolidated net sales of Ricoh Group for the fiscal year 2011 (April 1, 2011 to
March 31, 2012) decreased by 2.0% as compared to the previous corresponding
period, to Yen 1,903.4 billion. During this period, the average yen exchange
rates were Yen 79.08 against the U.S. dollar (up Yen 6.69) and Yen 109.05
against the Euro (up Yen 4.23). Net sales would have increased by 1.2%
excluding impact of such foreign currency exchange fluctuation.
In Japan, the business environment continued to be severe due to the impact of
the Great East Japan Earthquake and the flood in Thailand and also the sharp
appreciation of the Yen. Ricoh continued to face the severe business
environment. However, signs of improvement had been shown from latter part of
the fiscal year 2011,as a result, domestic sales in the Imaging & Solutions and
the Other increased, though domestic sales in the Industrial Products decreased
from the previous corresponding period. Consequently, overall sales in Japan
increased by 1.2% as compared to the previous corresponding period.
As for the overseas economy, in the Americas, individual consumption and capital
investment are slowly recovering and in Asian countries including China, high
growth is ongoing. However, it remained uncertain due to the European debt
crisis. Ricoh continued to face the severe business environment due to the
appreciation of the Yen.
As for overseas sales by region, as compared to the previous corresponding
period, sales in the Americas decreased by 9.9% due to foreign currency exchange
fluctuation (2.1%, excluding foreign currency exchange fluctuation), sales in
Europe, due to the Yen against Euro appreciated, decreased by 1.6% (increased by
2.3%, excluding foreign currency exchange fluctuation), and sales in Other
region, which includes China, South East Asia and Oceania, increased by 7.3%
(10.7%, excluding foreign currency exchange fluctuation).
As a result, sales in the overseas market decreased by 4.5% as compared to the
previous corresponding period. Excluding effects of foreign currency
fluctuations, sales in overseas would have increased by 1.2% as compared to the
previous corresponding period.
Gross profit decreased by 4.6% as compared to the previous corresponding period,
to Yen 752.6 billion due primarily to decrease in sales and the appreciation of
the Yen, despite ongoing cost reduction.
Selling, general and administrative expenses increased by 5.4% as compared to
the previous corresponding period, to Yen 770.6 billion due primarily to
impairment loss of Yen 37.0 billion on goodwill and long-lived assets for
Production Printing business as well as restructuring cost of Yen 34.1 billion.
As a result, operating income sharply decreased as compared to the previous
corresponding period, to Yen 18.0 billion loss (operating income Yen 58.0
billion for the previous corresponding period).
As for other (income) expenses, impairment loss on securities is included and
foreign exchange loss decreased.
Consequently, income before income taxes decreased as compared to the previous
corresponding period, to Yen 31.9 billion loss (income before income taxes
Yen 44.1 billion for the previous corresponding period).
In addition, due to the decrease in corporate tax rate ,deferred tax assets and
liabilities have been recalculated. As a result, net income (loss) attributable
to Ricoh Company, Ltd. amounted to Yen 44.5 billion loss (net income Yen 18.6
billion for the previous corresponding period). As for comprehensive income,
comprehensive loss increased due primarily to net loss attributable to Ricoh
Company, Ltd. as well as decrease of pension liability adjustments and
cumulative translation adjustments.
For Assets, from the end of the previous fiscal year, trade receivables
increased in Japan and Europe. In addition, inventories increased due partly to
initial stock for launch of new products in new business. As a result, total
assets increased by Yen 33.7 billion, to Yen 2,289.3 billion.
For Liabilities, the interest-bearing debt increased due primarily to payment
for costs in global restructuring program. Consequently, total liabilities
increased by Yen 132.9 billion, to Yen 1,410.3 billion.
For Total Equity, the change in retained earnings resulted from payment for
dividends and net loss attributable to Ricoh Company, Ltd. Accumulated other
comprehensive loss increased due primarily to the fluctuation of cumulative
translation adjustments reflecting exchange fluctuation from the end of the
previous period. As a result, Total Equity decreased by Yen 99.1 billion from
the end of the previous fiscal year, to Yen 879.0 billion.
A year-end cash dividend of Yen 8.50 per share is proposed due to net loss
attributable to Ricoh Company, Ltd. Combined with the interim dividend of
Yen 16.50 per share, the total dividend for the fiscal year ended March 31,
2012 will be Yen 25.00 per share.
5
*Consolidated Sales by Product Line
Imaging & Solutions (Sales down 2.4% to Yen 1,670.7 billion)
------------------------------------------------------------
Sales in the Imaging & Solutions segment which consists of Imaging Solutions and
Network System Solutions decreased by 2.4% from the previous corresponding
period, to Yen 1,670.7 billion.
Imaging Solutions (Sales down 3.9% to Yen 1,471.8 billion)
----------------------------------------------------------
Sales in this category decreased by 3.9% as compared to the previous
corresponding period, to Yen 1,471.8 billion. Sales of color Multi
Function Printer (MFP) increased steadily and color production printers
growed much, however, sales in this category decreased due to decrease of
monochrome products and effect of foreign exchange.
Network System Solutions (Sales up 9.7% to Yen 198.9 billion)
-------------------------------------------------------------
Sales in this category increased by 9.7% as compared to the previous
corresponding period, to Yen 198.9 billion due primarily to increase sales
of enterprise system software and IT service mainly in Europe.
Industrial Products (Sales down 9.6% to Yen 96.5 billion)
---------------------------------------------------------
Sales in the Industrial Products segment decreased by 9.6% as compared to the
previous corresponding period, to Yen 96.5 billion. Sales of semiconductor
devices and thermal media decreased as compared to the previous corresponding
period.
Other (Sales up 11.7% to Yen 136.1 billion)
-------------------------------------------
Sales in the Other segment increased by 11.7% as compared to the previous
corresponding period, to Yen 136.1 billion due primarily to acquisition of
PENTAX Imaging Corporation.
6
*Consolidated Sales by Geographic Area
Japan (Sales up 1.2% to Yen 886.4 billion)
------------------------------------------
In Japan, the business environment surrounding Ricoh continued to be severe due
to a series of adverse events such as negatively affecting the supply chains by
the Great East Japan Earthquake and followed by the flood in Thailand, the
shortfall crisis in electrical power supply and also the sharp appreciation of
the Yen against the U.S. dollar and the Euro.
In the Imaging & Solutions segment, Ricoh designed its ability to improve
management efficiency and to make prompt decisions in response to the
diversifying needs of its customers by building a sales structure based on Ricoh
Japan Corporation which was established previous fiscal year. Sales in the
Imaging & Solutions segment increased by 2.7% from the previous corresponding
period, to Yen 710.9 billion.
Sales in the Industrial Products segment decreased by 19.6% as compared to the
previous corresponding period, to Yen 52.6 billion. Sales of semiconductor
devices and thermal media decreased as compared to the previous corresponding
period.
Sales in the Other segment increased as compared to the previous corresponding
period due primarily to digital cameras by acquisition of PENTAX Imaging
Corporation in fiscal year 2011.
Overall sales in Japan increased by 1.2% from the previous corresponding period,
to Yen 886.4 billion.
The Americas (Sales down 9.9% to Yen 468.7 billion)
---------------------------------------------------
In the Americas, unpredictable situation remained despite the recovery in
individual consumption and capital investment in America. Although the
strengthened sales structure and expansion of sales channel after the
acquisition of IKON have contributed, overall sales in the Americas decreased by
9.9% from the previous corresponding period, to Yen 468.7 billion mainly due to
the abrupt appreciation of the Yen against the US dollar . The sales in this
area would have decreased by 2.1% excluding the effects of foreign currency
fluctuations.
Europe (Sales down 1.6% to Yen 408.5 billion)
----------------------------------------------
In Europe, it remained uncertain due to the widening intra-regional economic
disparities derived from the financial crisis and employment insecurity in some
countries. In addition, the sharp depreciation of the Euro developed.
As a result, under such severe conditions surrounding Ricoh, overall sales in
Europe decreased by 1.6% from the previous corresponding period, to Yen 408.5
billion. The sales in this area would have increased by 2.3% excluding the
effects of foreign currency fluctuations.
Other (Sales up 7.3% to Yen 139.7 billion)
-------------------------------------------
The Other segment includes China, South East Asia and Oceania. The emerging
markets including China and India achieved strong growth. Ricoh strengthened
sales force mainly in the emerging markets. Consequently, sales in all segment
increased from the previous corresponding period.
As a result, overall sales in Other increased by 7.3% from the previous
corresponding period, to Yen 139.7 billion. The sales in this area would have
increased by 10.7% excluding the effects of foreign currency fluctuations.
7
*Segment Information
Operating Segment
-----------------
Imaging & Solutions
-------------------
Even though the sales of color products increased, overall sales in Imaging &
Solutions segment decreased by 2.4% from the previous corresponding period, to
Yen 1,670.7 billion due to the appreciation of the yen.
In addition, due primarily to impairment loss on goodwill and long-lived assets,
restructuring cost and the sharp appreciation of the Yen, operating income
decreased by 57.4% from the previous corresponding period, to Yen 56.2 billion.
Industrial Products
-------------------
Sales in the Industrial Products segment decreased by 9.7% as compared to the
previous corresponding period, to Yen 101.3 billion. Sales of semiconductor
devices and thermal media decreased as compared to the previous corresponding
period.
As a result, operating loss in the Industrial Products segment amounted to
Yen 1.7 billion (operating income Yen 1.0 billion for the previous
corresponding period).
Other
-----
Sales in the Other segment increased by 11.7% as compared to the previous
corresponding period, to Yen 136.1 billion.
Sales of digital cameras increased due to acquisition of PENTAX Imaging
Corporation. However, investment in new business increased and operating loss in
the Other segment amounted to Yen 6.0 billion (operating loss Yen 4.9 billion
for the previous corresponding period).
(Billions of yen)
----------------------------------------------------------------------------------
Year ended Year ended
March 31, 2011 March 31, 2012 Change (%)
----------------------------------------------------------------------------------
Imaging & Solutions:
Net sales 1,712.6 1,670.7 -2.4
Operating income 132.2 56.2 -57.4
Operating income
on sales(%) 7.7 3.4 -4.3point
----------------------------------------------------------------------------------
Industrial Products:
Net sales 112.2 101.3 -9.7
Operating income (loss) 1.0 -1.7 --
Operating income
(loss) on sales(%) 0.9 -1.7 -2.6point
----------------------------------------------------------------------------------
Other:
Net sales 121.8 136.1 11.7
Operating loss -4.9 -6.0 --
Operating loss
on sales(%) -4.0 -4.4 -0.4point
----------------------------------------------------------------------------------
8
Geographic Segment
------------------
Japan
-----
Due to the global recession and the appreciation of the Yen, overall sales in
Japan segment decreased by 0.9% from the previous corresponding period, to
Yen 1,274.5 billion. Operating loss amounted to Yen 18.8 billion including
restructuring cost.
The Americas
------------
Although the strengthened sales structure and expansion of sales channel through
the acquisition of IKON have contributed, overall sales in the Americas segment
decreased by 9.3% from the previous corresponding period, to Yen 475.3 billion
due to the appreciation of the Yen. Operating loss was significantly increased
as compared to the previous corresponding period, to Yen 26.3 billion due to
impairment loss on goodwill and long-lived assets.
Europe
------
Overall sales in Europe segment decreased due to business recession in Europe
and also the sharp appreciation of the Yen by 2.2% to Yen 410.6 billion.
Operating income decreased by 35.6% from the previous corresponding period, to
Yen 17.6 billion due to the appreciation of the Yen and the costs for
strengthening of sales structures and other restructuring activities.
Other
-----
As for overall sales in Other segment, Ricoh strengthened sales force mainly in
the emerging markets. Consequently sales increased from the previous
corresponding period to Yen 283.7 billion despite the appreciation of the yen.
Operating income decreased by 38.0% from the previous corresponding period, to
Yen 7.6 billion.
9
*Forecast for the coming fiscal year
Economic projections and Ricoh Group's strategies for fiscal year 2012
----------------------------------------------------------------------
The global economy has shown trend of recovery because of moderate recovery in
the Americas and high growth in the emerging markets, while unpredictable
situation is expected due to some risk factors such as the European debt crisis
and the soaring oil prices.
Under such situation, Ricoh Group expects to achieve some positive impact
generating from the recent restructuring activities as well as no negative
impact by the Great East Japan Earthquake and the flood in Thailand.
Ricoh Group will continue to strengthen its management efficiency by ongoing
restructuring activities.
Our performance forecast is based on the assumptions at present.
However, as the situation will change from moment to moment, we will disclose
the forecast when it will change.
Our performance forecast for fiscal year ending March 31, 2013 is as follows:
Exchange Rate Assumptions for the full year ending March 31, 2013
US$ 1 = Yen 75.00 (Yen 79.08 in previous fiscal year)
EURO 1 = Yen 105.00 (Yen 109.05 in previous fiscal year)
(Billions of yen)
------------------------------------------------------------------------------
Year ended Year ending
March 31, 2012 March 31, 2013
(Results) (Forecast) Change
------------------------------------------------------------------------------
Domestic sales 886.4 901.0 1.6%
Overseas sales 1,017.0 1,019.0 0.2%
Net sales 1,903.4 1,920.0 0.9%
Gross profit 752.6 760.0 1.0%
Operating income (loss) -18.0 70.0 --
Income (loss) before income taxes -31.9 62.5 --
Net income (loss) attributable to
Ricoh Company, Ltd. -44.5 33.0 --
------------------------------------------------------------------------------
Notes:
* Ricoh bases the forecast estimates for the year ending March 31, 2013 above
upon information currently available to management, which involves risks and
uncertainties that could cause actual results to differ materially from those
projected.
10
(2) FINANCIAL POSITION
A) Assets, Liabilities, and Equity at Year-End
(Billions of yen)
-----------------------------------------------------------------------------------
March 31, 2011 March 31, 2012 Change
-----------------------------------------------------------------------------------
Total Assets 2,255.5 2,289.3 33.7
Total Equity 978.1 879.0 -99.1
Ricoh Company, Ltd. shareholders'
equity 925.2 822.7 -102.5
Ricoh Company, Ltd. shareholders'
equity ratio (%) 41.0% 35.9% -5.1points
-----------------------------------------------------------------------------------
For Assets, from the end of the previous fiscal year, trade receivables
increased in Japan and Europe. In addition, inventories increased due partly to
initial stock for launch of new products in new business. As a result, total
assets increased by Yen 33.7 billion, to Yen 2,289.3 billion.
For Liabilities, the interest-bearing debt increased due primarily to payment
for costs in global restructuring program. Consequently, total liabilities
increased by Yen 132.9 billion, to Yen 1,410.3 billion.
For Total Equity, the change in retained earnings resulted from payment for
dividends and net loss attributable to Ricoh Company, Ltd. Accumulated other
comprehensive loss increased due primarily to the fluctuation of cumulative
translation adjustments reflecting exchange fluctuation from the end of the
previous period. As a result, Total Equity decreased by Yen 99.1 billion from
the end of the previous fiscal year, to Yen 879.0 billion.
B) Cash Flows
(Billions of yen)
--------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2011 March 31, 2012 Change
--------------------------------------------------------------------------------------------
Cash flows from operating activities 128.6 11.2 -117.4
Cash flows from investing activities -91.9 -112.4 -20.5
Cash flows from financing activities -92.9 87.8 180.7
Cash and Cash Equivalents at end of period 172.2 156.2 -16.0
--------------------------------------------------------------------------------------------
Net cash provided by operating activities decreased by Yen 117.4 billion from
the previous corresponding period, to Yen 11.2 billion due primarily to
increase of trade receivables and inventory.
Net cash used in investing activities increased by Yen 20.5 billion from the
previous corresponding period, to Yen 112.4 billion due primarily to capital
expenditures as well as acquisition of PENTAX Imaging Corporation.
As a result, free cash outflows generated by operating and investing activities
amounted to Yen 101.2 billion while free cash inflows amounted to Yen 36.7
billion in the previous corresponding period.
Net cash provided by financing activities in this period amounted to Yen 87.8
billion due primarily to increase of the interest-bearing debt.
As a result of the above, cash and cash equivalents as of the end of this fiscal
year decreased by Yen 16.0 billion from the end of the previous corresponding
period, to Yen 156.2 billion.
C) Cash Flow Indices
-----------------------------------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended Year ended
March 31, 2008 March 31, 2009 March 31, 2010 March 31, 2011 March 31, 2012
-----------------------------------------------------------------------------------------------------------------------
Total Equity / Total assets 48.8% 38.8% 40.8% 41.0% 35.9%
Market capitalization / Total assets 53.3% 33.6% 44.4% 47.0% 25.5%
Interest bearing debt / Operating cash flow 2.0 8.9 3.6 5.3 66.2
Operating cash flow / Interest expense 40.2 14.9 23.4 15.1 1.6
-----------------------------------------------------------------------------------------------------------------------
Notes:
i. All indices are calculated based on consolidated data.
ii. Market capitalization equals the stock price at the end of fiscal year
multiples by the number of shares outstanding at the end of fiscal year.
iii. Operating cash flows is shown in consolidated statement of cash flow.
Interest bearing debt equals all debt in consolidated balance sheets.
iv. Indices of Year ended March31, 2008, 2009 and 2010 are not based on the
figures retrospectively adjusted.
11
(3) DIVIDEND POLICY
Ricoh endeavors to ensure that policies are regularly updated to take
the dividend payout ratio into consideration in the payment of
dividends, while at the same time increasing retained earnings for the
enhancement of corporate structure and the new business generation.
Furthermore, these retained earnings will be used both in the
reinforcement of core businesses and for investment in new fields with
both medium-term and long-term perspectives.
Ricoh truly regrets to announce that the total dividend per share for
the fiscal year ended March 31, 2012 will be reduced by Yen 8.00 as
compared to the previous corresponding period, to Yen 25.00, and for
the fiscal year ending March 31, 2013 will be Yen 25.00.
(4) RISK FACTORS
Risks that may affect Ricoh's financial results and financial position
are listed below, but are not limited to them. Ricoh's business may in
the future also be affected by other risks that are currently unknown
or that are not currently considered significant or material.
-Ability to respond to rapid technological changes in the document
imaging and management industry
-Highly competitive markets
-The risks of international operations and the risks of overseas
expansion
-Economic outlooks in major markets
-Foreign exchange fluctuations
-Crude oil price fluctuations
-Government regulation that can limit its activities or increase its
cost of operations
-Internal control evaluations and attestation over financial reporting
under section 404 of the Sarbanes-Oxley Act of 2002
-Dependence on protecting its intellectual property rights
-Dependence on securing and retaining specially skilled personnel
-Increase of employee benefit obligations
-Environmental laws and regulations
-Risks associated with Ricoh's equipment financing business
-Product liability claims that could significantly affect its
financial condition
-Alliances with other entities
-Risks associated with divulging of information
-Catastrophic disaster, information technology problems or infectious
diseases
-Fluctuations in a state of electricity supply
12
2. GROUP POSITION
The Ricoh Group comprises 223 subsidiaries and 7 affiliates as of March 31,
2012.
Their development, manufacturing, sales, and service activities center on
Imaging & Solutions, Industrial Products, and Other.
Ricoh Company, Ltd., a parent company, heads development. The parent company and
subsidiaries or affiliates maintain an integrated domestic and international
manufacturing structure. Below, we have listed our main product areas and the
positions of key subsidiaries and affiliates.
[Imaging & Solutions]
In this business category, Ricoh provides products and systems that support the
enhancement of the office productivity of customers. Major products include:
Digital/analog copiers, MFPs (multifunctional printers), laser printers,
facsimile machines, and digital duplicators. Ricoh also provides solution
systems including personal computers and servers, utilizing its information
technology. Another business Ricoh also provides are support, service, and
related supplies, as well as support and service including IT environment setup
and network administration.
[Main Subsidiaries and Affiliates]
Manufacturing
Japan...Tohoku Ricoh Co., Ltd., Ricoh Elemex Corporation, Ricoh Unitechno
Co., Ltd., Hasama Ricoh Inc., Ricoh Microelectronics Co., Ltd., Ricoh
Keiki Co., Ltd., and Ricoh Printing Systems, Ltd.
The Americas...Ricoh Electronics, Inc.
Europe... Ricoh UK Products Ltd., Ricoh Industrie France S.A.S.
Other regions...Ricoh Asia Industry (Shenzhen) Ltd., Shanghai Ricoh Digital
Equipment Co., Ltd. and Ricoh Manufacturing (Thailand) Ltd.
Sales and Service
Japan ...Ricoh Japan Corporation, Ricoh Technosystems Co., Ltd., Ricoh IT
Solutions Co.,Ltd., Ricoh Leasing Co., Ltd. and Ricoh Logistics System
Co., Ltd.
The Americas...Ricoh Americas Corporation, Ricoh Production Print
Solutions, LLC,
IKON Office Solutions, Inc.
Europe...Ricoh Europe PLC, Ricoh Deutschland GmbH, Ricoh UK Ltd., Ricoh
France S.A.S.,Ricoh Espana S.L.U. and Ricoh Italia Srl.
Other regions...Ricoh China Co., Ltd., Ricoh Hong Kong Ltd., Ricoh Asia
Pacific Operations Ltd.,Ricoh Asia Pacific Pte. Ltd., Ricoh Australia
Pty, Ltd. and Ricoh India Ltd.
[Industrial Products]
Manufacturing and marketing thermal media, optical equipments, semiconductors,
electronic component and measuring equipments
[Main Subsidiaries and Affiliates]
Manufacturing and Sales
Japan...Ricoh Optical Industries Co., Ltd., Ricoh Elemex Corporation and
Ricoh Microelectronics Co., Ltd.
The Americas...Ricoh Electronics, Inc.
Europe...Ricoh Industrie France S.A.S.
[Other]
Supplying digital camera, and providing leasing and logistics services
[Main Subsidiaries and Affiliates]
Manufacturing
Pentax Ricoh Imaging Products (Philippines) Corporation
Sales
Ricoh Americas Corporation, Pentax Ricoh Imaging Americas Corporation,
Ricoh Europe PLC, Pentax Ricoh Imaging France S.A.S
Other
Ricoh Leasing Co., Ltd., Ricoh Logistics System Co., Ltd., Pentax Ricoh
Imaging Co., Ltd.
[Chart of Business System]
The following chart is showing the group positions.
13
[Chart of Business System]
The chart of group position is omitted.
14
3. MANAGEMENT POLICY
(1) Basic Management Policy
Ricoh Group aims "To be the most trusted brand with irresistible appeal in the
global market.", and makes its missions "to be committed to providing excellence
to improve the quality of living" and "to save the precious earth and fulfill
its responsibilities for creating sustainable society".
To these ends, Ricoh is providing innovative products and services to all
customers who handle information at work in offices and in their lives out of
the office, based on the Ricoh brand benefits of "Harmonize with the
environment", "Simplify your life and work", and "Support knowledge management".
In the 17th medium-term management plan - which extends from April 2011 to March
2014, Ricoh has highlighted "business creation and integration" and
"establishment of highly efficient management" as the two basic strategies for
group management.
(2) Medium and Long Term Management Strategy
BUSINESS CREATION AND INTEGRATION
---------------------------------
In the printing business, Ricoh aims to acquire the No.1 market share in all
regions for MFPs, printers, etc., by providing customers with more value through
the combination of products and related services, while streamlining operations
to conduct business more efficiently.
Through these measures Ricoh will improve our profitability and shift more
resources to the service business and also to new business.
In the production printing business, Ricoh will continue to restructure and
strengthen the sales and service system and enhance our product lineup to make
the business more profitable.
In developed countries, customers attribute more importance to the quality of
service than ownership of equipment. Recently customers have been required to
reduce their total cost of ownership (TCO), and their needs for workflow
improvement have been increasing.
Ricoh will construct and apply Managed Document Services that provide document
systems with centralized storage, search and output functions, and management
services of customer's concentrated output center and multiple output devices.
Furthermore, Ricoh will support utilization of IT solutions and provide IT
services emphasized on customer's security and business continuity, and thereby
contribute to raising overall customer business productivity.
Ricoh will expand our product line, such as A4MFP, in the emerging markets.
Ricoh will also lower production cost for MFPs and Printers, by such measures as
the local development of products.
Ricoh will reinforce our sales capability, to expand our business in the
emerging markets.
The working styles of our customers have been changing. Amid this trend, which
will further increase the flexibility of information sharing and working styles,
Ricoh aims to lead customers in a constant manner. To this end, Ricoh will
develop products, software and services that foster communications and will
provide customers with new value through our highly competitive services and
support capabilities.
ESTABLISH HIGHLY EFFECTIVE MANAGEMENT
-------------------------------------
Ricoh will streamline its sales systems; integrate production sites and shift
resources to growth areas; review non-profitable businesses and decide either to
support and turn around such businesses or withdraw from such businesses;
encourage operational re-engineering; relocate human resources to new growth
areas; reduce purchase costs by centralizing purchase functions and aggregating
purchase orders; and review its development processes.
Basic strategy achievements this period until today are as follows.
In the Imaging & Solutions business, Ricoh continually creates new color
multifunction machines and color laser printers to improve customers'
businesses, further enhancing the product line. As to digital color
multifunction equipments, Ricoh released Aficio MP C5002/C4002/C3302/C2802
series with achieving excellent environmental performance and pursuing
operational efficiency improvement and usability.
The Aficio MP C5002/C4002/C3302/C2802 color multifunction copier, which achieved
unprecedented energy saving performance, features a new fixing technology to
conduct heat efficiently and to lower the fusion point of the toner.
By these new product launches, Ricoh's stronger product line has led it to
attain large market shares in colorcopier/multifunction equipment markets in all
regions.
In developing markets, Ricoh released the Aficio SP100 A4MFP, which Ricoh
independently developed and produced in China to meet Chinese users' demands for
the print quality. Ricoh is accelerating its step to march into the fast-growing
China A4MFP market.
As to production printing business, Ricoh released the RICOH Pro C751EX and the
RICOH Pro C651EX with higher image quality, variety of paper sizes, and improved
operability in additional superior cost performance.
The new Ricoh models, as well as the RICOH Pro C901 Series, which has received
good reviews for its high print image quality and ability to handle a variety of
media sizes and weights, will enable Ricoh to continue to meet the diversifying
product printer market requirements, such as high-mix, low lot size, and short
delivery time. As a result, it has led to attain large market shares in Japan
and overseas.
15
As to projection system business that was launched as part of our mission to
increase the value provided to our customers in the field of communications,
including projection and sound, Ricoh released the IPSiO PJ WX4130N/WX4130
series, which offers an ultra-short-throw business projector. Ricoh has provided
entire services from the equipment sales to solution proposals to meet
customers' needs, supporting costumers' business in response to evolving the
working style.
Ricoh has initiated developments of new value added device and module business
by collaborating in the area of marketing, development, manufacture and sales
for the industrial business such as semiconductor, electrical component and
optical equipment. As to thermal media business, Ricoh has developed emerging
markets and expand global businesses.
In the consumer business, Ricoh acquired HOYA Corporation's PENTAX Imaging
Systems business for strengthening the digital camera business and creation of
new business delivering added value to consumers. Ricoh aims to provide more
consumer-oriented offerings not only in the field of digital cameras but also
video conferencing systems, network appliances, and others, to their customers
around the world.
(3) Issues to Face
In FY2012, the second year of the 17th medium-term management plan, which
extends from April 2011 to March 2014, Ricoh make FY2012 the turning point for a
path of growth. Ricoh aims to rebuild foundation of management and win the new
competitions with expanding business areas, overcoming such challenges as the
Great East Japan Earthquake, the flood in Thailand and the sharp appreciation of
the Yen. In order to resolve these issues, Ricoh has set and will implement the
following three core action plans.
I.Further acceleration of restructuring
In addition to reducing costs, eliminating the duplication of functions and
optimizing human resource allocation, Ricoh reengineer all operational processes
by utilizing ICT. Also, as previously noted, Ricoh will implement such key
measures as streamlining of sales operations, regeneration of unprofitable
business, integration of the production facilities, promotion of centralized
global purchasing and improvement of development processes.
II.Reinforce earning structures
In the Imaging & Solutions business, Ricoh recognized major changes of business
environment. In developed markets, while the demand for copier/multifunction
copier is some moderately recovering from the world economic downturn triggered
by the world financial crisis, customers are buying fewer printing devices and
print output volume remains low growth.
Customer value has been shifting away from "owing products" to "service
usability". In addition, way to print is changing. In fact, mobile device usage
as a printing medium is accelerating.
Ricoh will miss none of new opportunities associated with imaging solutions as
Ricoh's core businesses.
Specifically, Ricoh will reinforce MDS and IT services, and expand projectors
and video-conference systems, which promote the real-time visual communication
in working place.
Also, Ricoh will create a new customer value through the linkage of MFPs,
Printers and smartphones, tablet PCs, which become widely used as internet
connection terminal.
In developing markets, total demand for copier/multifunction copier is expanding
rapidly. Ricoh will be adding a specific strategic marketing approach for each
developing markets which might be different from the approach for developed
markets.
Ricoh will expand businesses by enforcing sales channels and creating
products and services based on regional characteristics.
Ricoh aims to increase our share-of-wallet by combining existing and new
products and services through our strong customer relationship both in developed
markets and developing markets.
III.Prioritization of new business areas
In order to ensure medium and long-term growth, Ricoh aims to establish new core
businesses in addition to imaging solutions businesses as Ricoh's core
businesses. Based on our expertise and strength, Ricoh are prioritized the
following three areas for new businesses:
- Working place innovation: Projection System, Unified Communication System and
LED lamp
- Intelligent sensing: Optical Devices, modules and Rewritable Hybrid media
- Visual revolution: Digital SLR, Compact Cameras and Replacement Lenses
Finally, in order for today's companies to exist long into the future, they are
required to contribute to the sustainability of the global environment and the
human race. As a good corporate citizen, the Ricoh Group continues to increase
its corporate value with a three-pronged focus on society, environment and
economy. Ricoh is conducting an environmental management that enables us to
conserve the environment while generating profits at the same time. With the
participation of all employees around the globe, Ricoh aims to meet its medium
and long-term environmental targets based on the pillars of process reform and
technological innovation. Meanwhile, Ricoh will aim to provide customers with
products and services that carry a lighter environmental load at time of use,
and thereby contribute proactively to the creation of office environments for
the low-carbon society.
16
4. CONSOLIDATED FINANCIAL STATEMENTS
(1) CONSOLIDATED BALANCE SHEETS
(March 31, 2011 and 2012)
Assets (Millions of yen)
---------------------------------------------------------------------------------------------------------------
March 31, 2011 March 31, 2012 Change
---------------------------------------------------------------------------------------------------------------
Current Assets
Cash and time deposits 174,231 158,671 -15,560
Trade receivables 657,732 686,930 29,198
Inventories 171,883 195,009 23,126
Other current assets 64,004 65,896 1,892
Total Current Assets 1,067,850 1,106,506 38,656
Fixed Assets
Tangible fixed assets 264,818 268,527 3,709
Finance receivables 445,783 468,004 22,221
Other investments 477,113 446,321 -30,792
Total Fixed Assets 1,187,714 1,182,852 -4,862
---------------------------------------------------------------------------------------------------------------
Total Assets 2,255,564 2,289,358 33,794
---------------------------------------------------------------------------------------------------------------
Note:
Contents of cash and time deposits:
Cash and cash equivalents 172,221 156,210
Time deposits 2,010 2,461
Liabilities and Equity (Millions of yen)
---------------------------------------------------------------------------------------------------------------
March 31, 2011 March 31, 2012 Change
---------------------------------------------------------------------------------------------------------------
Current Liabilities
Trade payables 247,406 252,209 4,803
Short-term borrowings 150,201 216,432 66,231
Other current liabilities 211,857 204,383 -7,474
Total Current Liabilities 609,464 673,024 63,560
Fixed Liabilities
Long-term indebtedness 479,423 525,435 46,012
Accrued pension and severance costs 140,840 164,757 23,917
Other fixed liabilities 47,707 47,124 -583
Total Fixed Liabilities 667,970 737,316 69,346
---------------------------------------------------------------------------------------------------------------
Total Liabilities 1,277,434 1,410,340 132,906
---------------------------------------------------------------------------------------------------------------
Equity
Common stock 135,364 135,364 --
Additional paid-in capital 186,083 186,083 --
Retained earnings 811,082 742,549 -68,533
Accumulated other comprehensive loss -170,448 -204,175 -33,727
Treasury stock -36,838 -37,117 -279
Ricoh Company, Ltd. shareholders' equity 925,243 822,704 -102,539
Noncontrolling interests 52,887 56,314 3,427
---------------------------------------------------------------------------------------------------------------
Total Equity 978,130 879,018 -99,112
---------------------------------------------------------------------------------------------------------------
Total Liabilities and Equity 2,255,564 2,289,358 33,794
---------------------------------------------------------------------------------------------------------------
Note: Accumulated other comprehensive income (loss);
Net unrealized holding gains on available-for-sale
securities 2,466 3,681 1,215
Pension liability adjustments -47,493 -67,578 -20,085
Net unrealized losses on derivative instruments -1,168 -1,153 15
Cumulative translation adjustments -124,253 -139,125 -14,872
Reference: Exchange rate March 31, 2011 March 31, 2012
US$ 1 Yen 83.15 Yen 82.19
EURO 1 Yen 117.57 Yen 109.80
17
(2) CONSOLIDATED STATEMENTS OF INCOME
(Three months ended March 31, 2011 and 2012) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2011 March 31, 2012 Change %
-----------------------------------------------------------------------------------------------------------------------------
Net sales 499,824 506,610 6,786 1.4
Cost of sales 310,548 322,246 11,698 3.8
Percentage of net sales (%) 62.1 63.6
Gross Profit 189,276 184,364 -4,912 -2.6
Percentage of net sales (%) 37.9 36.4
Selling, general and administrative expenses 183,625 165,424 -18,201 -9.9
Percentage of net sales (%) 36.8 32.7
Operating income 5,651 18,940 13,289 235.2
Percentage of net sales (%) 1.1 3.7
Other (income) expense
Interest and dividend income 830 1,112 282 34.0
Percentage of net sales (%) 0.2 0.2
Interest expense 2,691 2,008 -683 -25.4
Percentage of net sales (%) 0.5 0.4
Loss on impairment of securities 1,639 -12 -1,651 --
Percentage of net sales (%) 0.3 0.0
Other, net -1,838 1,424 3,262 --
Percentage of net sales (%) -0.3 0.2
Income before income taxes
and equity in earnings of affiliates 3,989 16,632 12,643 316.9
Percentage of net sales (%) 0.8 3.3
Provision for income taxes 6,248 6,960 712 11.4
Percentage of net sales (%) 1.3 1.4
Equity in earnings of affiliates -7 22 29 --
Percentage of net sales (%) 0.0 0.0
Consolidated net income (loss) -2,266 9,694 11,960 --
Percentage of net sales (%) -0.5 1.9
Net income attributable to noncontrolling interests 268 1,069 801 298.9
Percentage of net sales (%) 0.1 0.2
Net income (loss) attributable to Ricoh Company, Ltd. -2,534 8,625 11,159 --
Percentage of net sales (%) -0.5 1.7
-----------------------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 82.32 Yen 79.32
EURO 1 Yen 112.51 Yen 104.04
(Year ended March 31, 2011 and 2012) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2011 March 31, 2012 Change %
-----------------------------------------------------------------------------------------------------------------------------
Net sales 1,941,336 1,903,477 -37,859 -2.0
Cost of sales 1,152,395 1,150,855 -1,540 -0.1
Percentage of net sales (%) 59.4 60.5
Gross Profit 788,941 752,622 -36,319 -4.6
Percentage of net sales (%) 40.6 39.5
Selling, general and administrative expenses 730,870 770,690 39,820 5.4
Percentage of net sales (%) 37.6 40.4
Operating income (loss) 58,071 -18,068 -76,139 --
Percentage of net sales (%) 3.0 -0.9
Other (income) expense
Interest and dividend income 2,985 3,129 144 4.8
Percentage of net sales (%) 0.2 0.2
Interest expense 8,528 6,979 -1,549 -18.2
Percentage of net sales (%) 0.4 0.4
Loss on impairment of securities 1,844 5,012 3,168 171.8
Percentage of net sales (%) 0.1 0.3
Other, net 6,515 5,007 -1,508 -23.1
Percentage of net sales (%) 0.4 0.2
Income (loss) before income taxes
and equity in earnings of affiliates 44,169 -31,937 -76,106 --
Percentage of net sales (%) 2.3 -1.7
Provision for income taxes 22,410 8,223 -14,187 -63.3
Percentage of net sales (%) 1.2 0.4
Equity in earnings of affiliates (22) 39 61 --
Percentage of net sales (%) -0.0 0.0
Consolidated net income (loss) 21,737 -40,121 -61,858 --
Percentage of net sales (%) 1.1 -2.1
Net income (loss) attributable to noncontrolling interests 3,107 4,439 1,332 42.9
Percentage of net sales (%) 0.2 0.2
Net income (loss) attributable to Ricoh Company, Ltd. 18,630 -44,560 -63,190 --
Percentage of net sales (%) 1.0 -2.3
-----------------------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 85.77 Yen 79.08
EURO 1 Yen 113.28 Yen 109.05
18
(3)-1. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Three months ended March 31, 2011 and 2012) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2011 March 31, 2012 Change %
-----------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 400,189 389,478 -10,711 -2.7
Percentage of net sales (%) 80.1 76.9
Network System Solutions 45,573 55,584 10,011 22.0
Percentage of net sales (%) 9.1 11.0
Total Imaging & Solutions 445,762 445,062 -700 -0.2
Percentage of net sales (%) 89.2 87.9
-----------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 24,694 22,497 -2,197 -8.9
Percentage of net sales (%) 4.9 4.4
-----------------------------------------------------------------------------------------------------------------
[Other]
Other 29,368 39,051 9,683 33.0
Percentage of net sales (%) 5.9 7.7
-----------------------------------------------------------------------------------------------------------------
Grand Total 499,824 506,610 6,786 1.4
Percentage of net sales (%) 100.0 100.0
-----------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 82.32 Yen 79.32
EURO 1 Yen 112.51 Yen 104.04
(Year ended March 31, 2011 and 2012) (Millions of yen)
------------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2011 March 31, 2012 Change %
------------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 1,531,219 1,471,827 -59,392 -3.9
Percentage of net sales (%) 78.9 77.3
Network System Solutions 181,411 198,945 17,534 9.7
Percentage of net sales (%) 9.3 10.5
Total Imaging & Solutions 1,712,630 1,670,772 -41,858 -2.4
Percentage of net sales (%) 88.2 87.8
-------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 106,830 96,584 -10,246 -9.6
Percentage of net sales (%) 5.5 5.1
-------------------------------------------------------------------------------------------------------------------
[Other]
Other 121,876 136,121 14,245 11.7
Percentage of net sales (%) 6.3 7.1
-------------------------------------------------------------------------------------------------------------------
Grand Total 1,941,336 1,903,477 -37,859 -2.0
Percentage of net sales (%) 100.0 100.0
-------------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 85.77 Yen 79.08
EURO 1 Yen 113.28 Yen 109.05
* Each category includes the following product line:
Imaging Solutions Digital PPCs, color PPCs, digital duplicators,
facsimile machines, analog PPCs, diazo copiers,
scanners, MFPs(multifunctional printers), laser
printers and software
Network System Solutions Personal computers, servers, network systems and
network related software
Industrial Products Thermal media, optical equipment, semiconductor
devices, electronic components and measuring equipment
Other Digital cameras
* Product lines included in Product Category was changed in the first quarter of
fiscal year 2011.
Service&Support, such as MDS(Managed Document Services) was changed from Network
System Solutions to Imaging Solutions.
The reclassification was made to the prior year's figures to conform with the
current year's presentation.
19
(3)-2. CONSOLIDATED SALES BY GEOGRAPHIC AREA
(Three months ended March 31, 2011 and 2012) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2011 March 31, 2012 Change %
-----------------------------------------------------------------------------------------------------------------
[Domestic] 225,756 241,317 15,561 6.9
Percentage of net sales (%) 45.2 47.6
[Overseas] 274,068 265,293 -8,775 -3.2
Percentage of net sales (%) 54.8 52.4
The Americas 130,541 121,572 -8,969 -6.9
Percentage of net sales (%) 26.1 24.0
Europe 110,127 106,399 -3,728 -3.4
Percentage of net sales (%) 22.0 21.0
Other 33,400 37,322 3,922 11.7
Percentage of net sales (%) 6.7 7.4
Grand Total 499,824 506,610 6,786 1.4
Percentage of net sales (%) 100.0 100.0
-----------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 82.32 Yen 79.32
EURO 1 Yen 112.51 Yen 104.04
(Year ended March 31, 2011 and 2012) (Millions of yen)
------------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2011 March 31, 2012 Change %
------------------------------------------------------------------------------------------------------------------
[Domestic] 875,819 886,425 10,606 1.2
Percentage of net sales (%) 45.1 46.6
[Overseas] 1,065,517 1,017,052 -48,465 -4.5
Percentage of net sales (%) 54.9 53.4
The Americas 520,000 468,728 -51,272 -9.9
Percentage of net sales (%) 26.8 24.6
Europe 415,189 408,542 -6,647 -1.6
Percentage of net sales (%) 21.4 21.5
Other 130,328 139,782 9,454 7.3
Percentage of net sales (%) 6.7 7.3
Grand Total 1,941,336 1,903,477 -37,859 -2.0
Percentage of net sales (%) 100.0 100.0
------------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 85.77 Yen 79.08
EURO 1 Yen 113.28 Yen 109.05
20
(4) CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Year ended March 31, 2011 (Millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
Accumulated
other Ricoh
Additional comprehensive Company, Ltd.
Common paid-in Retained income Treasury shareholders' Noncontrolling
stock capital earnings (loss) stock equity interest Total equity
--------------------------------------------------------------------------------------------------------------------------------
Beginning balance 135,364 186,083 820,701 -132,051 -36,756 973,341 50,533 1,023,874
Cumulative effect of a change
in accounting principle -
adoption of accounting
guidance for a variable
interest entity, net of tax -410 -410 -392 -802
Effect of a change in
accounting period of
subsidiaries, net of tax -3,868 -115 -3,983 -3,983
--------------------------------------------------------------------------------------------------------------------------------
Beginning balance (after
adjustment) 135,364 186,083 816,423 -132,166 -36,756 968,948 50,141 1,019,089
--------------------------------------------------------------------------------------------------------------------------------
Comprehensive income (loss)
Net income 18,630 18,630 3,107 21,737
Unrealized gains (losses)
on securities 94 94 -6 88
Pension liability
adjustment -158 -158 -7 -165
Unrealized losses on
derivatives -11 -11 -22 -33
Cumulative translation
adjustments -38,207 -38,207 269 -37,938
----------------------------------------------
Total comprehensive income
(loss) -19,652 3,341 -16,311
----------------------------------------------
Net changes in treasury stock -82 -82 -82
Loss on disposal of treasury
stock -28 -28 -28
Dividends declared and
approved to Ricoh Company,
Ltd. shareholders -23,943 -23,943 -23,943
Dividends to noncontrolling
interests -595 -595
--------------------------------------------------------------------------------------------------------------------------------
Ending balance 135,364 186,083 811,082 -170,448 -36,838 925,243 52,887 978,130
================================================================================================================================
Year ended March 31, 2012 (Millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
Accumulated
other Ricoh
Additional comprehensive Company, Ltd.
Common paid-in Retained income Treasury shareholders' Noncontrolling
stock capital earnings (loss) stock equity interest Total equity
--------------------------------------------------------------------------------------------------------------------------------
Beginning balance (after
adjustment) 135,364 186,083 811,082 -170,448 -36,838 925,243 52,887 978,130
Comprehensive income (loss)
Net income (loss) -44,560 -44,560 4,439 -40,121
Unrealized gains (losses)
on securities 1,215 1,215 -7 1,208
Pension liability
adjustment -20,085 -20,085 -78 -20,163
Unrealized gains on
derivatives 15 15 68 83
Cumulative translation
adjustments -14,872 -14,872 -194 -15,066
----------------------------------------------
Total comprehensive income
(loss) -78,287 4,228 -74,059
----------------------------------------------
Net changes in treasury stock -279 -279 -279
Loss on disposal of treasury
stock -31 -31 -31
Dividends declared and
approved to Ricoh Company,
Ltd. shareholders -23,942 -23,942 -23,942
Dividends to noncontrolling
interests -603 -603
Wholly owned subsidiaries -198 -198
--------------------------------------------------------------------------------------------------------------------------------
Ending balance 135,364 186,083 742,549 -204,175 -37,117 822,704 56,314 879,018
================================================================================================================================
21
(5) CONSOLIDATED STATEMENTS OF CASH FLOWS
(Year ended March 31, 2011 and 2012) (Millions of yen)
----------------------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2011 March 31, 2012
----------------------------------------------------------------------------------------------------------------------------
I. Cash Flows from Operating Activities:
Consolidated net income (loss) 21,737 -40,121
Adjustments to reconcile net income (loss) to net cash provided by operating activities -
Depreciation and amortization 93,677 91,137
Equity in earnings of affiliates, net of dividends received 22 -39
Deferred income taxes 908 -24,087
Loss on disposal and sales of tangible fixed assets 1,507 1,604
Loss on impairment of long-lived assets 842 10,070
Loss on impairment of securities 1,844 5,012
Loss on impairment of goodwill -- 27,491
Pension and severance costs, less payments -1,106 -5,386
Changes in assets and liabilities -
(Increase) Decrease in trade receivables 1,072 -20,393
Increasee in inventories -12,515 -17,126
(Increase) Decrease in finance receivables 13,917 -25,667
Decrease in trade payables -11,850 -5,096
(Decrease) Increase in accrued income taxes and accrued expenses and other 13,868 -5,623
Other, net 4,713 19,430
----------------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 128,636 11,206
----------------------------------------------------------------------------------------------------------------------------
II. Cash Flows from Investing Activities:
Proceeds from sales of property, plant and equipment 1,389 1,532
Expenditures for tangible fixed assets -66,875 -73,271
Expenditures for intangible fixed assets -18,807 -14,504
Payments for purchases of available-for-sale securities -235 -93
Proceeds from sales of available-for-sale securities 126 68
Increase in time deposits -401 -385
Purchase of business, net of cash acquired -1,415 -14,816
Other, net -5,688 -10,974
----------------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities -91,906 -112,443
----------------------------------------------------------------------------------------------------------------------------
III. Cash Flows from Financing Activities:
Proceeds from long-term indebtedness 58,622 147,034
Repayment of long-term indebtedness -87,147 -82,260
(Increase) Decrease in short-term borrowings, net -31,584 70,044
Proceeds from issuance of long-term debt securities 79,741 --
Repayment of long-term debt securities -87,975 -22,444
Dividend paid -23,943 -23,942
Payment for purchase of treasury stock -157 -23
Other, net -520 -586
----------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities -92,963 87,823
----------------------------------------------------------------------------------------------------------------------------
IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents -8,647 -2,597
----------------------------------------------------------------------------------------------------------------------------
V. Net Decrease in Cash and Cash Equivalents -64,880 -16,011
----------------------------------------------------------------------------------------------------------------------------
VI. Cash and Cash Equivalents at Beginning of Year 237,101 172,221
----------------------------------------------------------------------------------------------------------------------------
VII. Cash and Cash Equivalents at End of Year 172,221 156,210
----------------------------------------------------------------------------------------------------------------------------
22
(6) NOTE FOR GOING CONCERN ASSUMPTION
Not applicable.
(7) SIGNIFICANT ACCOUNTING POLICIES (CONSOLIDATED)
A) CHANGES IN THE SCALE OF CONSOLIDATION AND THE APPLICATION OF THE EQUITY
METHOD FROM APRIL 1, 2011 TO MARCH 31, 2012.
Consolidated subsidiaries:
26 Additions
19 Removals
Companies accounted for by the equity method:
1 Additions
1 Removals
B) CONSOLIDATED ACCOUNTING POLICIES (SUMMARY)
a. Principles of Consolidation
The consolidated financial statements include the accounts of Ricoh and its
consolidated subsidiaries. Investments in 20% to 50% owned companies when the
Company has the ability to exercise significant influence are accounted for on
the equity basis. All significant inter-company balances and transactions have
been eliminated in consolidation.
b. Securities
In conformity with FASB Accounting Standards Codification (ASC) 320, "Debt and
Equity Securities" , securities are mainly classified as available-for-sale
securities. Available-for-sale securities are reported at fair value with
unrealized gains and losses, net of related taxes, excluded from earnings and
reported in accumulated other comprehensive income (loss).
The cost of the securities sold is computed based on the average cost of each
security held at the time of sale.
c. Inventories
Inventories are mainly stated at the lower of average cost or market. Inventory
costs include raw materials, labor and manufacturing overheads.
d. Property, Plant and Equipment
Depreciation of property, plant and equipment is computed principally by using
the declining-balance method over the estimated useful lives. Most of the
foreign subsidiaries have adopted the straight-line method for computing
depreciation.
Certain leased buildings, machinery and equipment are accounted for as capital
leases in conformity with ASC 840 "Accounting for Leases".
e. Goodwill and Other Intangible Assets
In conformity with ASC 350, "Goodwill and Other Intangible Assets" , Goodwill
and intangible asset determined to have an indefinite useful life are not
amortized. ASC 350 requires annual impairment testing thereof.
f. Pension and Retirement Allowances Plans
The measurement of pension costs and liabilities is determined in accordance
with ASC 715, "Retirement Benefits".
g. Use of Estimates
Management of the Company has made a number of estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues and expenses,
including impairment losses of long-lived assets and the disclosures of fair
value of financial instruments and contingent assets and liabilities, to prepare
these financial statements in conformity with accounting principles generally
accepted in the United States of America. Actual results could differ from those
estimates.
23
(8) CHANGES IN SIGNIFICANT ACCOUNTING POLICIES (CONSOLIDATED)
CHANGES IN ACCOUNTING METHOD
Ricoh has accounted for subsidiaries that changed their fiscal year-ends from
December 31 to March 31 as if their fiscal year-ends in prior years were March
31 and has restated prior-year consolidated financial statements. As a result,
the previous fiscal year's consolidated balance sheet, consolidated statement of
income, consolidated sales by product category, consolidated statements of
changes in equity, consolidated statements of cash flows, segment information
and per share data have been restated. Adjustments to previous year's
consolidated net income attributable to Ricoh Company,Ltd.,total shareholders'
equity and total assets in line with this restatement are as follows.
(Millions of yen)
------------------------------------------------------------------------------------------------------
Pre-restatement Adjustment Restated
------------------------------------------------------------------------------------------------------
Net income attributable to Ricoh Company,Ltd. 19,650 -1,020 18,630
Total shareholders' equity 982,764 -4,634 978,130
Total assets 2,262,396 -6,832 2,255,564
------------------------------------------------------------------------------------------------------
24
(9) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A) SEGMENT INFORMATION
a. Operating Segment Information
(Three months ended March 31, 2011 and 2012) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2011 March 31, 2012 Change %
-----------------------------------------------------------------------------------------------------------------
IMAGING & SOLUTIONS:
Net sales:
External customers 445,762 445,062 -700 -0.2
Intersegment -- -- --
Total 445,762 445,062 -700 -0.2
-----------------------------------------------------------------------------------------------------------------
Operating expenses 420,010 408,998 -11,012 -2.6
-----------------------------------------------------------------------------------------------------------------
Operating income 25,752 36,064 10,312 40.0
Operating income on sales in Imaging & Solutions (%) 5.8 8.1
-----------------------------------------------------------------------------------------------------------------
INDUSTRIAL PRODUCTS:
Net sales:
External customers 24,694 22,497 -2,197 -8.9
Intersegment 1,266 1,043 -223 -17.6
Total 25,960 23,540 -2,420 -9.3
-----------------------------------------------------------------------------------------------------------------
Operating expenses 25,729 22,677 -3,052 -11.9
-----------------------------------------------------------------------------------------------------------------
Operating income 231 863 632 273.6
Operating income on sales in Industrial Products (%) 0.9 3.7
-----------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 29,368 39,051 9,683 33.0
Intersegment -- -- --
Total 29,368 39,051 9,683 33.0
-----------------------------------------------------------------------------------------------------------------
Operating expenses 32,746 41,464 8,718 26.6
-----------------------------------------------------------------------------------------------------------------
Operating loss -3,378 -2,413 965 --
Operating loss on sales in Other (%) -11.5 -6.2
-----------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -1,266 -1,043 223
Total -1,266 -1,043 223 --
-----------------------------------------------------------------------------------------------------------------
Operating expenses:
Intersegment -1,266 -1,043 223
Corporate 16,954 15,574 -1,380
Total 15,688 14,531 -1,157 --
-----------------------------------------------------------------------------------------------------------------
Operating loss -16,954 -15,574 1,380 --
-----------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 499,824 506,610 6,786 1.4
Intersegment -- -- --
Total 499,824 506,610 6,786 1.4
-----------------------------------------------------------------------------------------------------------------
Operating expenses 494,173 487,670 -6,503 -1.3
-----------------------------------------------------------------------------------------------------------------
Operating income 5,651 18,940 13,289 235.2
Operating income on consolidated net sales (%) 1.1 3.7
-----------------------------------------------------------------------------------------------------------------
25
(Year ended March 31, 2011 and 2012) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2011 March 31, 2012 Change %
-----------------------------------------------------------------------------------------------------------------
IMAGING & SOLUTIONS:
Net sales:
External customers 1,712,630 1,670,772 -41,858 -2.4
Intersegment -- -- --
Total 1,712,630 1,670,772 -41,858 -2.4
-----------------------------------------------------------------------------------------------------------------
Operating expenses 1,580,344 1,614,475 34,131 2.2
-----------------------------------------------------------------------------------------------------------------
Operating income 132,286 56,297 -75,989 -57.4
Operating income on sales in Imaging & Solutions (%) 7.7 3.4
----------------------------------------------------------------------------------------------------------------
INDUSTRIAL PRODUCTS:
Net sales:
External customers 106,830 96,584 -10,246 -9.6
Intersegment 5,413 4,731 -682 -12.6
Total 112,243 101,315 -10,928 -9.7
----------------------------------------------------------------------------------------------------------------
Operating expenses 111,237 103,057 -8,180 -7.4
----------------------------------------------------------------------------------------------------------------
Operating income (loss) 1,006 -1,742 -2,748 --
Operating income (loss) on sales in Industrial Products (%) 0.9 -1.7
----------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 121,876 136,121 14,245 11.7
Intersegment -- -- --
Total 121,876 136,121 14,245 11.7
----------------------------------------------------------------------------------------------------------------
Operating expenses 126,787 142,131 15,344 12.1
----------------------------------------------------------------------------------------------------------------
Operating loss -4,911 -6,010 -1,099 --
Operating loss on sales in Other (%) -4.0 -4.4
----------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -5,413 -4,731 682
Total -5,413 -4,731 682 --
----------------------------------------------------------------------------------------------------------------
Operating expenses:
Intersegment -5,420 -4,731 689
Corporate 70,317 66,613 -3,704
Total 64,897 61,882 -3,015 --
----------------------------------------------------------------------------------------------------------------
Operating loss -70,310 -66,613 3,697 --
----------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 1,941,336 1,903,477 -37,859 -2.0
Intersegment -- -- --
Total 1,941,336 1,903,477 -37,859 -2.0
----------------------------------------------------------------------------------------------------------------
Operating expenses 1,883,265 1,921,545 38,280 2.0
----------------------------------------------------------------------------------------------------------------
Operating income (loss) 58,071 -18,068 -76,139 --
Operating income (loss) on consolidated net sales (%) 3.0 -0.9
----------------------------------------------------------------------------------------------------------------
26
b. Geographic Segment Information
(Three months ended March 31, 2011 and 2012) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2011 March 31, 2012 Change %
-----------------------------------------------------------------------------------------------------------------
JAPAN:
Net sales:
External customers 229,444 248,599 19,155 8.3
Intersegment 83,995 86,074 2,079 2.5
Total 313,439 334,673 21,234 6.8
-----------------------------------------------------------------------------------------------------------------
Operating expenses 311,676 323,660 11,984 3.8
-----------------------------------------------------------------------------------------------------------------
Operating income 1,763 11,013 9,250 524.7
Operating income on sales in Japan(%) 0.6 3.3
-----------------------------------------------------------------------------------------------------------------
THE AMERICAS:
Net sales:
External customers 130,482 122,028 -8,454 -6.5
Intersegment 726 966 240 33.1
Total 131,208 122,994 -8,214 -6.3
-----------------------------------------------------------------------------------------------------------------
Operating expenses 132,555 122,783 -9,772 -7.4
-----------------------------------------------------------------------------------------------------------------
Operating income (loss) -1,347 211 1,558 --
Operating income (loss) on sales in the Americas(%) -1.0 0.2
-----------------------------------------------------------------------------------------------------------------
EUROPE:
Net sales:
External customers 112,355 105,133 -7,222 -6.4
Intersegment 606 145 -461 -76.1
Total 112,961 105,278 -7,683 -6.8
-----------------------------------------------------------------------------------------------------------------
Operating expenses 105,065 100,295 -4,770 -4.5
-----------------------------------------------------------------------------------------------------------------
Operating income 7,896 4,983 -2,913 -36.9
Operating income on sales in Europe(%) 7.0 4.7
-----------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 27,543 30,850 3,307 12.0
Intersegment 38,274 45,965 7,691 20.1
Total 65,817 76,815 10,998 16.7
-----------------------------------------------------------------------------------------------------------------
Operating expenses 63,166 74,028 10,862 17.2
-----------------------------------------------------------------------------------------------------------------
Operating income 2,651 2,787 136 5.1
Operating income on sales in Other(%) 4.0 3.6
-----------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -123,601 -133,150 -9,549 --
Total -123,601 -133,150 -9,549 --
-----------------------------------------------------------------------------------------------------------------
Operating expenses: -118,289 -133,096 -14,807 --
-----------------------------------------------------------------------------------------------------------------
Operating loss -5,312 -54 5,258 --
-----------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 499,824 506,610 6,786 1.4
Intersegment -- -- --
Total 499,824 506,610 6,786 1.4
-----------------------------------------------------------------------------------------------------------------
Operating expenses 494,173 487,670 -6,503 -1.3
-----------------------------------------------------------------------------------------------------------------
Operating income 5,651 18,940 13,289 235.2
Operating income on consolidated net sales(%) 1.1 3.7
-----------------------------------------------------------------------------------------------------------------
27
(Year ended March 31, 2011 and 2012) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2011 March 31, 2012 Change %
-----------------------------------------------------------------------------------------------------------------
JAPAN:
Net sales:
External customers 890,779 901,742 10,963 1.2
Intersegment 395,556 372,854 -22,702 -5.7
Total 1,286,335 1,274,596 -11,739 -0.9
-----------------------------------------------------------------------------------------------------------------
Operating expenses 1,257,207 1,293,454 36,247 2.9
-----------------------------------------------------------------------------------------------------------------
Operating income (loss) 29,128 -18,858 -47,986 --
Operating income (loss) on sales in Japan(%) 2.3 -1.5
-----------------------------------------------------------------------------------------------------------------
THE AMERICAS:
Net sales:
External customers 520,651 471,805 -48,846 -9.4
Intersegment 3,245 3,588 343 10.6
Total 523,896 475,393 -48,503 -9.3
-----------------------------------------------------------------------------------------------------------------
Operating expenses 529,157 501,785 -27,372 -5.2
-----------------------------------------------------------------------------------------------------------------
Operating loss -5,261 -26,392 -21,131 --
Operating loss on sales in the Americas(%) -1.0 -5.6
-----------------------------------------------------------------------------------------------------------------
EUROPE:
Net sales:
External customers 417,571 409,160 -8,411 -2.0
Intersegment 2,381 1,468 -913 -38.3
Total 419,952 410,628 -9,324 -2.2
-----------------------------------------------------------------------------------------------------------------
Operating expenses 392,499 392,935 436 0.1
-----------------------------------------------------------------------------------------------------------------
Operating income 27,453 17,693 -9,760 -35.6
Operating income on sales in Europe(%) 6.5 4.3
-----------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
External customers 112,335 120,770 8,435 7.5
Intersegment 161,150 162,971 1,821 1.1
Total 273,485 283,741 10,256 3.8
-----------------------------------------------------------------------------------------------------------------
Operating expenses 261,125 276,081 14,956 5.7
----------------------------------------------------------------------------------------------------------------
Operating income 12,360 7,660 -4,700 -38.0
Operating income on sales in Other(%) 4.5 2.7
-----------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -562,332 -540,881 21,451 --
Total -562,332 -540,881 21,451 --
-----------------------------------------------------------------------------------------------------------------
Operating expenses: -556,723 -542,710 14,013 --
-----------------------------------------------------------------------------------------------------------------
Operating income (loss) -5,609 1,829 7,438 --
-----------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
External customers 1,941,336 1,903,477 -37,859 -2.0
Intersegment -- -- --
Total 1,941,336 1,903,477 -37,859 -2.0
-----------------------------------------------------------------------------------------------------------------
Operating expenses 1,883,265 1,921,545 38,280 2.0
-----------------------------------------------------------------------------------------------------------------
Operating income (loss) 58,071 -18,068 -76,139 --
Operating income (loss) on consolidated net sales(%) 3.0 -0.9
-----------------------------------------------------------------------------------------------------------------
28
B) PER SHARE DATA
(Yen)
-------------------------------------------------------------------------
March 31, 2011 March 31, 2012
-------------------------------------------------------------------------
Shareholders' equity per share 1,275.31 1,134.64
Net income per share-basic 25.68 -61.42
Net income per share-diluted 25.15 -61.42
A reconciliation of the numerator and the denominators of the basic and diluted
per share computations for income is as follows:
(Millions of yen)
-------------------------------------------------------------------------
March 31, 2011 March 31, 2012
-------------------------------------------------------------------------
Net income (loss) 18,630 -44,560
Effect of dilutive securities -38 0
-------------------------------------------------------------------------
Diluted net income (loss) 18,592 -44,560
-------------------------------------------------------------------------
(Shares)
-------------------------------------------------------------------------
March 31, 2011 March 31, 2012
-------------------------------------------------------------------------
Weight average common shares outstanding 725,554,477 725,554,477
Effect of dilutive securities 13,739,286 0
-------------------------------------------------------------------------
Diluted common shares outstanding 739,293,763 725,554,477
-------------------------------------------------------------------------
C) SUBSEQUENT EVENTS
Not applicable.
29
5. NON-CONSOLIDATED PERFORMANCE
(1) BALANCE SHEETS (NON-CONSOLIDATED)
March 31, 2011 and 2012
Assets (Millions of yen)
---------------------------------------------------------------------------------------------------------------
March 31, 2011 March 31, 2012 Change
---------------------------------------------------------------------------------------------------------------
Current Assets 563,320 466,274 -97,046
Cash on hand and in banks 12,296 9,436 -2,860
Notes receivable-trade 2,814 1,795 -1,019
Accounts receivable-trade 169,172 165,852 -3,320
Marketable securities 66,677 64,387 -2,290
Finished goods 22,126 25,890 3,764
Raw materials 4,228 5,724 1,496
Work-in-process 7,582 8,671 1,089
Supplies 8,520 9,612 1,092
Prepaid expenses 7,493 7,868 375
Deferred tax assets 12,353 18,050 5,697
Accounts receivable-other 29,378 22,196 -7,182
Short-term loans receivable 218,615 124,595 -94,020
Other current assets 2,184 2,221 37
Allowance for doubtful accounts -124 -31 93
Fixed Assets 689,100 668,908 -20,192
Tangible Fixed Assets 136,777 130,720 -6,057
Buildings 65,570 61,478 -4,092
Structures 3,551 3,289 -262
Machinery and equipment 25,569 21,066 -4,503
Vehicles 5 7 2
Tools 10,475 9,446 -1,029
Land 28,769 28,339 -430
Leased assets 127 71 -56
Construction in progress 2,708 7,020 4,312
Intangible Fixed Assets 62,335 44,217 -18,118
Goodwill 16,770 7,762 -9,008
Patent rights 1,884 1,460 -424
Leased property rights 7,381 7,278 -103
Trademark rights 6,826 1,722 -5,104
Software 23,299 23,343 44
Leased assets 66 36 -30
Other intangible fixed assets 6,106 2,613 -3,493
Long-term loans to affiliates
Investments and Other Assets 489,987 493,971 3,984
Investment securities 17,093 16,415 -678
Affiliates' securities 351,872 319,792 -32,080
Investment in affiliates 19,252 19,252 --
Long-term loans receivable 92,172 182,591 90,419
Bankruptcy and rehabilitation debts 322 223 -99
Deferred tax assets -- 2,265 2,265
Lease deposit 6,629 6,328 -301
Other investments 3,185 4,253 1,068
Allowance for doubtful accounts -540 -57,151 -56,611
---------------------------------------------------------------------------------------------------------------
Total Assets 1,252,421 1,135,182 -117,239
---------------------------------------------------------------------------------------------------------------
Reference:
Exchange rate
March 31, 2012 March 31, 2012
US$ 1 83.15 82.19
EURO 1 117.57 109.80
30
March 31, 2011 and 2012
Liabilities (Millions of yen)
---------------------------------------------------------------------------------------------------------------
March 31, 2011 March 31, 2012 Change
---------------------------------------------------------------------------------------------------------------
Current Liabilities 205,750 263,755 58,005
Notes payable-trade 2,107 1,885 -222
Accounts payable-trade 116,267 116,550 283
Bonds maturing within one year 22,221 -- -22,221
Short-term borrowings 6,300 74,000 67,700
Leased obligations 403 217 -186
Accounts payable-other 9,433 21,635 12,202
Accrued expenses 27,870 29,465 1,595
Accrued corporate tax 709 303 -406
Advances by customers 4,880 4,895 15
Deposits payable 2,054 2,138 84
Accrued bonuses 9,214 7,447 -1,767
Accrued directors' bonuses 82 -- -82
Warranty reserve 1,000 875 -125
Derivative liabilities, at fair value 1,926 3,317 1,391
Other current liabilities 1,276 1,023 -253
Fixed Liabilities 294,533 272,157 -22,376
Bonds 125,000 125,000 --
Long-term borrowings 160,800 136,800 -24,000
Leased obligations 376 81 -295
Deferred tax liabilities 409 -- -409
Long accounts payable-other 265 262 -3
Retirement benefit obligation 5,167 4,289 -878
Asset retirement obligations 2,026 2,092 66
Other fixed liabilities 487 3,631 3,144
---------------------------------------------------------------------------------------------------------------
Total Liabilities 500,283 535,912 35,629
---------------------------------------------------------------------------------------------------------------
Net assets (Millions of yen)
---------------------------------------------------------------------------------------------------------------
March 31, 2011 March 31, 2012 Change
---------------------------------------------------------------------------------------------------------------
Stockholders' equity 747,607 594,677 -152,930
Common Stock 135,364 135,364 --
Additional paid-in-capital 180,804 180,804 --
Legal capital reserve 180,804 180,804 --
Retained earnings 468,112 315,461 -152,651
Legal reserve 14,955 14,955 --
Other retained earnings 453,157 300,506 -152,651
Reserve for deferral of capital gain on property 450 3,453 3,003
Reserve for special depreciation 411 351 -60
Reserve for social contribution 0 3 3
General reserve 430,350 415,350 -15,000
Retained earnings brought forward 21,946 -118,651 -140,597
Treasury stock -36,674 -36,953 -279
Difference of appreciation and conversion 4,530 4,592 62
Net unrealized holding gains on securities 4,530 4,592 62
Total Net assets 752,137 599,269 -152,868
---------------------------------------------------------------------------------------------------------------
Total Liabilities and Net assets 1,252,421 1,135,182 -117,239
---------------------------------------------------------------------------------------------------------------
31
(2) STATEMENT OF INCOME (NON-CONSOLIDATED)
For the years ended March 31, 2011 and 2012. (Millions of yen)
----------------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2011 March 31, 2012 Change (%)
----------------------------------------------------------------------------------------------------------------------
Net sales 842,297 795,471 -46,826 (-5.6)
Cost of sales 644,502 620,179 -24,323 (-3.8)
Percentage of net sales (%) 76.5 78.0
Gross profit 197,795 175,292 -22,503 (-11.4)
Percentage of net sales (%) 23.5 22.0
Selling, general and administrative expenses 204,193 207,219 3,026 (1.5)
Percentage of net sales (%) 24.2 26.0
Selling expenses 34,355 27,058 -7,297
General and administrative expenses 169,836 180,161 10,325
Operating loss -6,397 -31,927 -25,530 --
Percentage of net sales (%) -0.8 -4.0
Non-operating income 35,818 34,640 -1,178 (-3.3)
Percentage of net sales (%) 4.3 4.4
Interest 4,231 4,002 -229
Interest on securities 115 113 -2
Dividends 27,516 23,693 -3,823
Miscellaneous income 3,954 6,831 2,877
Non-operating expenses 22,293 10,116 -12,177 (-54.6)
Percentage of net sales (%) 2.6 1.3
Interest 2,822 3,330 508
Interest on bonds 1,539 1,617 78
Exchange loss 15,725 4,312 -11,413
Loss on disposition of fixed assets 575 505 -70
Miscellaneous expenses 1,631 350 -1,311
Ordinary income (loss) 7,126 -7,402 -14,528 --
Percentage of net sales (%) 0.8 -0.9
Extraordinary losses 3,641 133,046 129,405 (3554.1)
Percentage of net sales (%) 0.4 16.7
Provision of allowance for doubtful accounts of -- 56,723 56,723
long-term loans
Loss on valuation of affiliates' securities -- 51,113 51,113
Impairment of fixed assets 705 16,740 16,035
Special extra retirement payments -- 8,469 8,469
Loss on adjustment for changes of accounting
standard for asset retirement obligations 745 -- -745
Loss on disaster 2,190 -- -2,190
Income (loss) before income taxes 3,485 -140,449 -143,934 --
Percentage of net sales (%) 0.4 -17.7
Provision for income taxes -4,352 -3,635 717 --
Percentage of net sales (%) -0.5 -0.5
Refund of income taxes -760 -321 439 --
Percentage of net sales (%) -0.1 0.0
Corporate and other tax adjustments -1,116 -7,813 -6,697 --
Percentage of net sales (%) -0.1 -1.0
Net income (loss) 9,714 -128,678 -138,392 --
Percentage of net sales (%) 1.2 -16.2
----------------------------------------------------------------------------------------------------------------------
Reference:
Exchange rate
Year ended Year ended
March 31, 2011 March 31, 2012
US$ 1 85.85 78.98
EURO 1 112.99 108.74
32
(3) STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (NON-CONSOLIDATED)
RESULTS FOR THE PERIOD FROM APRIL 1, 2010 TO MARCH 31, 2011 (Millions of yen)
------------------------------------------------------------------------------------------------------------------------------
Difference of
appreciation
Stockholders' equity and conversion
---------------------------------------------------------------------------- --------------
Additional Retained
paid-in-capital earnings Net
------------------------ --------------------- unrealized
Legal Other Other Total holding Total
Common capital additional Legal retained Treasury stockholders' gains on Net
stock reserve paid-in-capital reserve earnings (*) stock equity securities assets
----------------------------------------------------------------------------- -------- ------------- -------------- -----------
Beginning balance 135,364 180,804 -- 14,955 467,415 -36,592 761,947 5,118 767,065
Changes in the term
Dividends from
surplus -23,943 -23,943 -23,943
Net income 9,714 9,714 9,714
Purchase of treasury
stock -156 -156 -156
Disposal of treasury
stock -28 74 46 46
Net change of items
other than -588 -588
stockholders' equity
------------------------------------------------------------------------------------------------------------------------------
Total changes in the
term -- -- -- -- -14,258 -82 -14,340 -588 -14,928
------------------------------------------------------------------------------------------------------------------------------
Ending balance 135,364 180,804 -- 14,955 453,157 -36,674 747,607 4,530 752,137
------------------------------------------------------------------------------------------------------------------------------
(*) Other retained earnings (Millions of yen)
--------------------------------------------------------------------------------------------------------------------------
Reserve for Reserve for Retained
deferral of Reserve for warranty on Reserve earnings Total Other
capital gain special computer for social General brought retained
on property depreciation programs contribution reserve forward earnings
--------------------------------------------------------------------------------------------------------------------------
Beginning balance 450 161 29 1 430,350 36,423 467,415
--------------------------------------------------------------------------------------------------------------------------
Changes in the term
Dividends from surplus -23,943 -23,943
Transfer to reserve for deferral of
capital gain on property 17 -17 --
Reversal of reserve for deferral of
capital gain on property -17 17 --
Transfer to reserve for special
depreciation 314 -314 --
Reversal of reserve for special
depreciation -65 65 --
Reversal of reserve for warranty on
computer programs -29 29 --
Transfer of reserve for social
contribution 87 -87 --
Reversal of reserve for social
contribution -88 88 --
Disposal of Treasury stock -28 -28
Net income 9,714 9,714
--------------------------------------------------------------------------------------------------------------------------
Total changes in the term 0 250 -29 -1 -- -14,477 -14,258
--------------------------------------------------------------------------------------------------------------------------
Ending balance 450 411 -- 0 430,350 21,946 453,157
--------------------------------------------------------------------------------------------------------------------------
33
RESULTS FOR THE PERIOD FROM APRIL 1, 2011 TO MARCH 31, 2012 (Millions of yen)
---------------------------------------------------------------------------------------------------------------------------------
Difference
of
appreciation
and
Stockholders' equity conversion
---------------------------------------------------------------------------------------
Additional Retained
paid-in-capital earnings Net
------------------------------------------- unrealized
Legal Other Other Total holding Total
Common capital additional Legal retained Treasury stockholders' gains on Net
stock reserve paid-in-capital reserve earnings(*) stock equity securities assets
---------------------------------------------------------------------------------------------------------------------------------
Beginning balance 135,364 180,804 -- 14,955 453,157 -36,674 747,607 4,530 752,137
---------------------------------------------------------------------------------------------------------------------------------
Changes in the term
Dividends from surplus -23,942 -23,942 -23,942
Net loss -128,678 -128,678 -128,678
Purchase of treasury stock -327 -327 -327
Disposal of treasury stock -31 48 17 17
Net change of items other
than stockholders' equity 62 62
---------------------------------------------------------------------------------------------------------------------------------
Total changes in the term -- -- -- -- -152,650 -279 -152,930 62 -152,868
---------------------------------------------------------------------------------------------------------------------------------
Ending balance 135,364 180,804 -- 14,955 300,506 -36,953 594,677 4,592 599,269
---------------------------------------------------------------------------------------------------------------------------------
(*) Other retained earnings (Millions of yen)
----------------------------------------------------------------------------------------------------------
Reserve for Retained
deferral of Reserve for Reserve for earnings Total Other
capital gain special social General brought retained
on property depreciation contribution reserve forward earnings
----------------------------------------------------------------------------------------------------------
Beginning balance 450 411 0 430,350 21,946 453,157
----------------------------------------------------------------------------------------------------------
Changes in the term
Dividends from surplus -23,942 -23,942
Transfer to reserve for deferral of
capital gain on property 3,164 -3,164 --
Reversal of reserve for deferral of
capital gain on property -161 161 --
Transfer to reserve for special
depreciation 25 -25 --
Reversal of reserve for special
depreciation -84 84 --
Transfer of reserve for social
contribution 94 -94 --
Reversal of reserve for social
contribution -91 91 --
Reversal of general reserve -15,000 15,000 --
Disposal of Treasury stock -31 -31
Net loss -128,678 -128,678
----------------------------------------------------------------------------------------------------------
Total changes in the term 3,003 -59 3 -15,000 -140,597 -152,650
----------------------------------------------------------------------------------------------------------
Ending balance 3,453 351 3 415,350 -118,651 300,506
----------------------------------------------------------------------------------------------------------
34
SIGNIFICANT ACCOUNTING POLICIES (NON-CONSOLIDATED)
1. Accounting policy for assets
(1) Inventories are stated at cost caused by profitability of inventories has
declined.
(2) Securities
Securities of subsidiaries and affiliates are stated at moving average
cost.
Other securities:
Marketable securities are marked to market based on the market price
at the end of the term and other factors (accounting for all valuation
differences with the full capital injection method; the cost of
securities sold is valued at moving average cost.)
Non-marketable securities are stated at cost based on the moving
average method.
(3) Derivatives are stated at market value.
2. Depreciation of fixed assets
(1) Tangible fixed assets
Tangible fixed assets are depreciated using the declining balance method.
For buildings (excluding fixtures) secured on and after April 1, 1998,
however, Ricoh uses straight-line depreciation.
(2) Intangible fixed assets
Ricoh uses straight-line depreciation for intangible fixed assets.
With software for sale in the marketplace, however, the Company records the
larger of a depreciation based on projected sales profits or a uniform
depreciation based on a projected effective sales period for the balance. The
initially projected effective sale term is three years. With software for
internal use, the company uses straight-line depreciation on a usable period
of five to ten years.
(3) Leased assets
Finance leases for which ownership does not transfer to lessees;
Ricoh uses straight-line depreciation for Leased assets regarding Lease-term
as useful life.
In addition, Ricoh uses accounting for in a similar manner with ordinary sale
and purchase transactions, regard to Lease contracts on before April 1,2008.
3. Accounting for deferred assets
Expenses of new stock issued are accounted for as the full amount at the time
of the expenditure.
Expenses of new stock issued at the end of the year is included in
"Miscellaneous expenses".
Discounts on bond issues are deferred and amortized uniformly over a
period(5years) up to the maturity of the relevant bond.
4. Basis for provision of reserves
(1) Allowance for Doubtful Accounts
The allowance for doubtful accounts is provided to cover possible losses from
bad debts and represents possible individual doubtful accounts based on
historical default rates and the potential for irrecoverableness.
(2) Reserve for Accrued Bonuses
The reserve for accrued bonuses is provided by estimating the amount of
bonuses payable to employees for the current financial year under our
corporate rules for calculating such bonus payment.
(3) Reserve for Accrued
Directors' Bonuses The reserve for accrued bonuses is provided by estimating
the amount of bonuses payable to Directors for the current of financial year.
(4) Warranty reserve
To cover product after-sales service expenses, the Company calculates the
product warranty reserve based on projected service costs during warranty
terms.
(5) Reserve for Retirement Benefit Obligations
To cover projected employee benefits, the Company records the estimated
obligations at the end of current fiscal year based on projected year-end
benefit obligations and plan assets. The company uses straight-line
depreciation for actuarial gains or losses and for prior service costs over
averaged remaining employment term. (15years)
5. Hedge accounting
(1) Hedge Accounting Methods
With interest swaps, RICOH adopts exceptional treatments if it meets
necessary requirements.
(2) Hedging Instruments and Targets
Targets: Interests of long-term borrowings
Hedging Instruments: Interest swaps
(3) Hedging policies
In keeping with its internal Market Risk Management Rules, Ricoh uses
derivatives to manage the exposure of its assets and liabilities to market
fluctuations.
(4) Hedge Effectiveness
Ricoh assesses the effectiveness of hedges by analyzing the ratios of the
total market fluctuations of hedged targets and instruments.
Ricoh omits assessment of effectiveness regarding interest swaps using
exceptional treatments.
6. Others
(1) Consumption taxes
Consumption taxes are excluded from revenues and expenses. The refundable
consumption tax at the end of the year is included in "Other current assets",
after offsetting suspense payments and receipt of consumption taxes and etc.
(2) The consolidated tax system
The consolidated tax system is applied from fiscal year 2009.
35
NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS
(BALANCE SHEETS)
-------------------------------------------------------------------------------------
March 31, 2011 March 31, 2012
-------------------------------------------------------------------------------------
1. Accumulated depreciation on tangible fixed assets 418,972 438,076
2. Guarantee obligations 227 25,669
(LEASE TRANSACTION)
Ricoh left note for lease transaction out because the Company discloses
financial statements on the electronic disclosure system, regulated in
paragraph 30-6 of the Financial Instruments and Exchange Law No. 27.
(SECURITIES)
Fair values of subsidiaries and affiliates
1. Year ended March 31, 2011
(Millions of yen) Balance Sheets Fair value Difference
Securities of consolidated companies 4,229 31,111 26,882
Securities of affiliated companies 4,927 26,616 21,689
------------------------------------------------------------------------------
Total 9,156 57,727 48,571
2. Year ended March 31, 2012
(Millions of yen) Balance Sheets Fair value Difference
Securities of consolidated companies 4,229 29,231 25,001
Securities of affiliated companies 4,927 24,366 19,439
------------------------------------------------------------------------------
Total 9,156 53,597 44,440
(STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY)
Treasury stock
1. March 31, 2011
-------------------------------------------------------------------------------------------
Number of shares held Number of shares held
Class of shares at March 31, 2010 Increase Decrease at March 31, 2011
-------------------------------------------------------------------------------------------
Common shares (shares) 19,320,723 128,167 39,480 19,409,410
-------------------------------------------------------------------------------------------
Reason for the Changes
Increase: Purchase of odd lot shares of common stock 128,167 shares Purchase
of treasury stock
Decrease: Release of treasury stock to allow shareholders with less than a
full lot to complete their holdings 39,480 shares
Treasury stock
2. March 31, 2012
-------------------------------------------------------------------------------------------
Number of shares held Number of shares held
Class of shares at March 31, 2011 Increase Decrease at March 31, 2012
-------------------------------------------------------------------------------------------
Common shares (shares) 19,409,410 477,350 25,700 19,831,060
-------------------------------------------------------------------------------------------
Reason for the Changes
Increase: Purchase of odd lot shares of common stock 477,350 shares Purchase
of treasury stock
Decrease: Release of treasury stock to allow shareholders with less than a
full lot to complete their holdings 25,700 shares
36
(TAX EFFECT ACCOUNTING)
1. The prime components of deferred tax assets and liabilities are as follows:
(Millions of yen)
-----------------------------------------------------------------------------------------------
March 31, 2011 March 31, 2012
-----------------------------------------------------------------------------------------------
Deferred tax assets:
Retirement benefit obligation 11,240 10,463
Accrued bonuses 3,766 2,818
Net operating loss carried forward 3,201 15,973
Loss on valuation of securities 2,834 20,609
Depreciation and amortization 1,083 4,167
Inventory revaluation 965 1,035
Asset retirement obligations 820 742
Allowance for doubtful accounts 175 20,277
Other 5,570 5,104
Subtotal 29,654 81,188
-----------------------------------------------------------------------------------------------
Valuation allowance -4,268 -48,076
Total deferred tax assets 25,386 33,112
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
March 31, 2011 March 31, 2012
-----------------------------------------------------------------------------------------------
Deferred tax liabilities:
Retirement benefit trust establishment -6,745 -5,907
Net unrealized holding gains on securities -3,084 -2,525
Succeeded intangible asset (*) -2,306 -1,837
Removal cost in correspond to asset retirement obligations -466 -389
Reserve for deferral of capital gain on property -306 -1,929
Reserve for special depreciation -279 -209
Other -256 --
Total deferred tax liabilities -13,442 -12,796
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
March 31, 2011 March 31, 2012
-----------------------------------------------------------------------------------------------
Net deferred tax assets/liabilities 11,944 20,316
Included in current assets 12,353 18,050
Included in investment and other assets -- 2,265
Included in fixed liabilities -409 --
-----------------------------------------------------------------------------------------------
* Deferred tax liability for the non-deductible intangible asset succeeded from
Ricoh Printing Systems, Ltd.
2. Difference in normal effective statutory tax rate and effective tax rate
after applying tax effect accounting
Normal effective statutory tax rate 40.5%
(Reconciliation)
Permanently non-taxable income 6.6
Effect of enacted changes in tax laws and rates on Japanese tax -1.2
Valuation allowance -35.5
Other -2.1
Effective tax rate 8.3%
The corporate tax rate has been changed due to new laws legislated on December
2, 2011. As a result of this law, the statutory tax rate applied when
calculating deferred tax assets and liabilities of temporary differences that
are expected to be eliminated, after the fiscal year ending March 31, 2013 and
2016 decreased from 40.5% to 37.8% and 35.4% respectively.
As a result, the net amount of deffered tax assets and liabilities decreased by
1,331 million yen, while net unrealized holding gains on securities increased by
358 million and corporate and other tax adjustments in 2011 increased by 1,689
million yen.
37
-APPENDIX- YEAR ENDED MARCH 31, 2012
1. CONSOLIDATED QUARTERLY PERFORMANCE OUTLINE
(1) Financial Statements Summary (Quarterly) (Billions of yen)
--------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q Change(%)
--------------------------------------------------------------------------------------------------------
Net sales 467.3 471.6 457.7 506.6 1.4
Gross profit 197.5 189.2 181.4 184.3 -2.6
Operating income (loss) 11.3 -13.3 -34.9 18.9 235.2
Income (loss) before income taxes 9.2 -19.0 -38.8 16.6 316.9
Net income (loss) 4.9 -13.7 -44.3 8.6 -440.4
--------------------------------------------------------------------------------------------------------
Net income (loss) per share (yen) 6.80 -18.92 -61.19 11.89 --
Net income (loss) per share-diluted (yen) 6.79 -18.92 -61.19 11.89 --
--------------------------------------------------------------------------------------------------------
Total assets 2,254.8 2,179.8 2,186.3 2,289.3 --
Shareholders' investment 911.4 856.6 798.9 822.7 --
--------------------------------------------------------------------------------------------------------
Shareholders' investment per share (yen) 1,256.37 1,180.77 1,101.24 1,134.64 --
--------------------------------------------------------------------------------------------------------
Cash flows from operating activities 4.8 10.6 -41.2 36.8 --
Cash flows from investing activities -24.9 -28.0 -35.9 -23.5 --
Cash flows from financing activities 12.9 -7.0 96.7 -14.7 --
Cash and cash equivalents at end of period 162.7 133.6 151.8 156.2 --
--------------------------------------------------------------------------------------------------------
(2) Capital expenditures and Depreciation (Billions of yen)
------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q
------------------------------------------------------------------------------------------------------
Capital expenditures 16.8 20.0 17.0 19.3
Depreciation for tangible fixed assets 15.6 15.2 15.9 18.1
------------------------------------------------------------------------------------------------------
(3) R&D Expenditures (Billions of yen)
------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q
------------------------------------------------------------------------------------------------------
R&D expenditures 28.0 31.7 29.5 29.7
R&D expenditures / Total Sales (%) 6.0 6.7 6.5 5.9
------------------------------------------------------------------------------------------------------
(4) Interest income (expenses) net (Billions of yen)
------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q
------------------------------------------------------------------------------------------------------
Interest income (expenses) net -0.8 -1.0 -1.0 -0.8
------------------------------------------------------------------------------------------------------
(5) Exchange Rate
------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q
------------------------------------------------------------------------------------------------------
Exchange rate (Yen/US$) 81.71 77.94 77.39 79.32
Exchange rate (Yen/EURO) 117.62 110.31 104.29 104.04
------------------------------------------------------------------------------------------------------
*Ricoh has accounted for subsidiaries that changed their fiscal year-ends from
December 31 to March 31 as if their fiscal year-ends in prior years were March
31 and has restated prior-year consolidated financial statements. The changes
from the previous corresponding period is based on the figures retrospectively
adjusted. Please see (8) Changes in Significant Accounting Policies
(Consolidated) on page 24.
A1
2. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Three months ended March 31, 2011 and 2012) (Millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Change excluding
March 31, 2011 March 31, 2012 Change % exchange impact %
--------------------------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 400,189 389,478 -10,711 -2.7 2,071 0.5
Percentage of net sales (%) 80.1 76.9
Domestic 141,090 145,972 4,882 3.5 4,882 3.5
Overseas 259,099 243,506 -15,593 -6.0 -2,811 -1.1
Network System Solutions 45,573 55,584 10,011 22.0 10,351 22.7
Percentage of net sales (%) 9.1 11.0
Domestic 41,524 50,959 9,435 22.7 9,435 22.7
Overseas 4,049 4,625 576 14.2 916 22.6
Imaging & Solutions Total 445,762 445,062 -700 -0.2 12,422 2.8
Percentage of net sales (%) 89.2 87.9
Domestic 182,614 196,931 14,317 7.8 14,317 7.8
Overseas 263,148 248,131 -15,017 -5.7 -1,895 -0.7
The Americas 127,589 117,073 -10,516 -8.2 -5,939 -4.7
Europe 106,395 101,190 -5,205 -4.9 2,294 2.2
Other 29,164 29,868 704 2.4 1,750 6.0
--------------------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 24,694 22,497 -2,197 -8.9 -1,735 -7.0
Percentage of net sales (%) 4.9 4.4
Domestic 14,502 11,583 -2,919 -20.1 -2,919 -20.1
Overseas 10,192 10,914 722 7.1 1,184 11.6
The Americas 2,858 3,226 368 12.9 501 17.5
Europe 3,485 3,093 -392 -11.2 -181 -5.2
Other 3,849 4,595 746 19.4 864 22.4
--------------------------------------------------------------------------------------------------------------------------------
[Other]
Other 29,368 39,051 9,683 33.0 9,933 33.8
Percentage of net sales (%) 5.9 7.7
Domestic 28,640 32,803 4,163 14.5 4,163 14.5
Overseas 728 6,248 5,520 758.2 5,770 792.6
The Americas 94 1,273 1,179 1,254.3 1,263 1,343.6
Europe 247 2,116 1,869 756.7 1,996 808.1
Other 387 2,859 2,472 638.8 2,511 648.8
--------------------------------------------------------------------------------------------------------------------------------
Grand Total 499,824 506,610 6,786 1.4 20,620 4.1
Percentage of net sales (%) 100.0 100.0
Domestic 225,756 241,317 15,561 6.9 15,561 6.9
Percentage of net sales (%) 45.2 47.6
Overseas 274,068 265,293 -8,775 -3.2 5,059 1.8
Percentage of net sales (%) 54.8 52.4
The Americas 130,541 121,572 -8,969 -6.9 -4,175 -3.2
Percentage of net sales (%) 26.1 24.0
Europe 110,127 106,399 -3,728 -3.4 4,109 3.7
Percentage of net sales (%) 22.0 21.0
Other 33,400 37,322 3,922 11.7 5,125 15.3
Percentage of net sales (%) 6.7 7.4
--------------------------------------------------------------------------------------------------------------------------------
Reference: Exchange rate
US$ 1 Yen 82.32 Yen 79.32 Yen-3.00
EURO 1 Yen 112.51 Yen 104.04 Yen-8.47
Each category includes the following product line:
Imaging Solutions Digital PPCs, color PPCs, digital duplicators,
facsimile machines, analog PPCs, diazo copiers,
scanners, MFPs(multifunctional printers), laser
printers and software
Network System Solutions Personal computers, servers, network systems and
Industrial Products network related software Thermal media, optical
equipment, semiconductor devices, electronic
components and measuring equipment
Other Digital cameras
*Product lines included in Product Category was changed in the first quarter of
fiscal year 2011.
Service&Support, such as MDS(Managed Document Services) was changed from Network
System Solutions to Imaging Solutions.
The reclassification was made to the prior year's figures to conform with the
current year's presentation.
*Ricoh has accounted for subsidiaries that changed their fiscal year-ends from
December 31 to March 31 as if their fiscal year-ends in prior years were March
31 and has restated prior-year consolidated financial statements.
The changes from the previous corresponding period is based on the figures
retrospectively adjusted.
Please see (8) Changes in Significant Accounting Policies (Consolidated) on page
24.
A2
(Year ended March 31, 2011 and 2012) (Millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
Year ended Year ended Change excluding
March 31, 2011 March 31, 2012 Change % exchange impact %
--------------------------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 1,531,219 1,471,827 -59,392 -3.9 -1,774 -0.1
Percentage of net sales (%) 78.9 77.3
Domestic 525,178 529,085 3,907 0.7 3,907 0.7
Overseas 1,006,041 942,742 -63,299 -6.3 -5,681 -0.6
Network System Solutions 181,411 198,945 17,534 9.7 18,420 10.2
Percentage of net sales (%) 9.3 10.5
Domestic 166,953 181,832 14,879 8.9 14,879 8.9
Overseas 14,458 17,113 2,655 18.4 3,541 24.5
Imaging & Solutions Total 1,712,630 1,670,772 -41,858 -2.4 16,646 1.0
Percentage of net sales (%) 88.2 87.8
Domestic 692,131 710,917 18,786 2.7 18,786 2.7
Overseas 1,020,499 959,855 -60,644 -5.9 -2,140 -0.2
The Americas 507,934 453,570 -54,364 -10.7 -15,239 -3.0
Europe 400,635 389,931 -10,704 -2.7 4,660 1.2
Other 111,930 116,354 4,424 4.0 8,439 7.5
--------------------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 106,830 96,584 -10,246 -9.6 -8,432 -7.9
Percentage of net sales (%) 5.5 5.1
Domestic 65,428 52,628 -12,800 -19.6 -12,800 -19.6
Overseas 41,402 43,956 2,554 6.2 4,368 10.6
The Americas 11,665 12,394 729 6.2 1,768 15.2
Europe 13,535 12,626 -909 -6.7 -493 -3.6
Other 16,202 18,936 2,734 16.9 3,093 19.1
--------------------------------------------------------------------------------------------------------------------------------
[Other]
Other 121,876 136,121 14,245 11.7 14,862 12.2
Percentage of net sales (%) 6.3 7.1
Domestic 118,260 122,880 4,620 3.9 4,620 3.9
Overseas 3,616 13,241 9,625 266.2 10,242 283.2
The Americas 401 2,764 2,363 589.3 2,584 644.4
Europe 1,019 5,985 4,966 487.3 5,191 509.4
Other 2,196 4,492 2,296 104.6 2,467 112.3
--------------------------------------------------------------------------------------------------------------------------------
Grand Total 1,941,336 1,903,477 -37,859 -2.0 23,076 1.2
Percentage of net sales (%) 100.0 100.0
Domestic 875,819 886,425 10,606 1.2 10,606 1.2
Percentage of net sales (%) 45.1 46.6
Overseas 1,065,517 1,017,052 -48,465 -4.5 12,470 1.2
Percentage of net sales (%) 54.9 53.4
The Americas 520,000 468,728 -51,272 -9.9 -10,887 -2.1
Percentage of net sales (%) 26.8 24.6
Europe 415,189 408,542 -6,647 -1.6 9,358 2.3
Percentage of net sales (%) 21.4 21.5
Other 130,328 139,782 9,454 7.3 13,999 10.7
Percentage of net sales (%) 6.7 7.3
--------------------------------------------------------------------------------------------------------------------------------
Reference: Exchange rate
US$ 1 Yen 85.77 Yen 79.08 Yen -6.69
EURO 1 Yen 113.28 Yen 109.05 Yen -4.23
Each category includes the following product line:
Imaging Solutions Digital PPCs, color PPCs, digital duplicators,
facsimile machines, analog PPCs, diazo copiers,
scanners, MFPs(multifunctional printers), laser
printers and software
Network System Solutions Personal computers, servers, network systems and
Industrial Products network related software Thermal media, optical
equipment, semiconductor devices, electronic
components and measuring equipment
Other Digital cameras
*Product lines included in Product Category was changed in the first quarter of
fiscal year 2011.
Service&Support, such as MDS(Managed Document Services) was changed from Network
System Solutions to Imaging Solutions.
The reclassification was made to the prior year's figures to conform with the
current year's presentation.
*Ricoh has accounted for subsidiaries that changed their fiscal year-ends from
December 31 to March 31 as if their fiscal year-ends in prior years were March
31 and has restated prior-year consolidated financial statements.
The changes from the previous corresponding period is based on the figures
retrospectively adjusted.
Please see (8) Changes in Significant Accounting Policies (Consolidated) on page
24.
A3
3. FORECAST OF CONSOLIDATED SALES BY PRODUCT CATEGORY
(Billions of yen)
---------------------------------------------------------------------------------------------------------------------------
Year ending March 31, 2013 Half year ending September 30, 2012
-------------------------- -----------------------------------
Year ended Change Change Change Change
March 31, 2012 Forecast % Forecast % Forecast % Forecast %
---------------------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 1,471.8 1,457.0 -1.0 1,500.0 1.9 711.0 -2.8 743.3 1.7
Domestic 529.0 530.3 0.2 530.3 0.2 259.1 0.2 259.1 0.2
Overseas 942.7 926.7 -1.7 969.7 2.9 451.9 -4.4 484.2 2.5
Network System Solutions 198.9 209.7 5.4 210.4 5.8 103.6 5.6 104.2 6.2
Domestic 181.8 187.2 3.0 187.2 3.0 93.3 3.7 93.3 3.7
Overseas 17.1 22.5 31.5 23.2 35.8 10.3 26.6 10.9 34.0
Imaging & Solutions Total 1,670.7 1,666.7 -0.2 1,710.5 2.4 814.5 -1.8 847.5 2.2
Domestic 710.9 717.5 0.9 717.5 0.9 352.4 1.1 352.4 1.1
Overseas 959.8 949.2 -1.1 993.0 3.5 462.2 -3.9 495.1 3.0
The Americas 453.5 442.9 -2.3 466.7 2.9 219.4 -3.8 233.3 2.3
Europe 389.9 385.3 -1.2 399.0 2.3 182.8 -6.0 198.2 1.9
Other 116.3 121.0 4.0 127.3 9.4 60.0 3.4 63.6 9.6
---------------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 96.5 97.1 0.5 99.4 3.0 49.7 -1.5 51.5 2.0
Domestic 52.6 50.6 -3.9 50.6 -3.9 27.0 -4.2 27.0 -4.2
Overseas 43.9 46.5 5.8 48.9 11.2 22.7 1.9 24.5 9.9
The Americas 12.3 13.3 7.3 14.0 13.3 6.4 5.3 6.8 12.5
Europe 12.6 13.5 6.9 14.1 11.8 6.7 -0.3 7.4 9.6
Other 18.9 19.7 4.0 20.7 9.5 9.6 1.3 10.3 8.4
---------------------------------------------------------------------------------------------------------------------------
[Other]
Other 136.1 156.2 14.8 157.4 15.6 75.8 27.7 76.7 29.3
Domestic 122.8 133.0 8.2 133.0 8.2 65.6 13.7 65.6 13.7
Overseas 13.2 23.3 75.7 24.4 84.5 10.1 532.7 11.1 593.3
The Americas 2.7 6.1 120.7 6.7 141.3 3.2 -- 3.6 --
Europe 5.9 10.0 67.1 10.4 73.8 4.2 534.4 4.6 593.4
Other 4.4 7.2 59.4 7.4 63.8 2.7 281.3 2.9 309.2
---------------------------------------------------------------------------------------------------------------------------
Grand Total 1,903.4 1,920.0 0.9 1,967.3 3.4 940.0 0.1 975.7 3.9
Domestic 886.4 901.0 1.6 901.0 1.6 445.0 2.4 445.0 2.4
Overseas 1,017.0 1,019.0 0.2 1,066.3 4.8 495.0 -1.9 530.7 5.2
The Americas 468.7 462.3 -1.4 487.4 4.0 228.9 -2.3 243.7 4.0
Europe 408.5 408.8 0.1 423.5 3.7 193.7 -4.1 210.2 4.1
Other 139.7 147.9 5.8 155.4 11.2 72.4 6.0 76.8 12.6
---------------------------------------------------------------------------------------------------------------------------
*Excluding foreign exchange impact
Reference: Year ended March 31, 2012 Year ending March 31, 2013 Half year ending September 30, 2012
Exchange rate (Results) (Forecast) (Forecast)
US$ 1 Yen 79.08 Yen 75.00 Yen 75.00
EURO 1 Yen 109.05 Yen 105.00 Yen 105.00
Each category includes the following product line:
Imaging Solutions Digital PPCs, color PPCs, digital duplicators,
facsimile machines, analog PPCs, diazo copiers,
scanners, MFPs(multifunctional printers), laser
printers and software
Network System Solutions Personal computers, servers, network systems and
Industrial Products network related software Thermal media, optical
equipment, semiconductor devices, electronic
components and measuring equipment
Other Digital cameras
A4