Presentation

Consolidated
Results for
Nine Months
Ended
December 31,
2015
February 1, 2016
Ricoh Company, Ltd.
The mPower mP10i direct-to-garment printer from new Ricoh Group member AnaJet, Inc.
Forward-looking statements
The plans, prospects, strategies and other statements, except for the historical events,
mentioned in this material are forward-looking statements with respect to future events and
business results. Those statements were made based on the judge of RICOH's Directors from
the information that is now obtainable. Actual results may differ materially from those projected
or implied in such forward-looking statements and from any historical trends. Please refrain
from judging only from these forward-looking statements with respect to future events and
business results. The following important factors, without limiting the generality of the
foregoing, could affect future results and could cause those results to differ materially from
those expressed in the forward-looking statements:
a. General economic conditions and business trend
b. Exchange rates and their fluctuations
c. Rapid technological innovation
d. Uncertainty as to RICOH's ability to continue to design, develop, produce and market
products and services that achieve market acceptance in hot competitive market
No company's name and/or organization's name used, quoted and/or referenced in this
material shall be interpreted as a recommendation and/or endorsement by RICOH.
This material is not an offer or a solicitation to make investments. Please do not rely on this
material as your sole source of information for your actual investments, and be aware that
decisions regarding investments are the responsibility of themselves.
We have adopted a net basis for reporting a portion of lease transactions from this fiscal year in place of gross basis. Past sales figures
and related indicators have also been adjusted retroactively to conform to the current year.
February 1, 2016
(C)2016 Ricoh Company, Ltd. All Rights Reserved
1
FY2016/03 Apr-Dec Results Overview
Sales: ¥1,643.8 billion, up 4.6% from a year earlier, on the strength of
growth in Imaging & Solutions and Industrial Products
Operating profit was ¥85.4 billion, a 0.7% decrease that reflected an
adverse business climate and the impact of foreign exchange fluctuations,
which overshadowed greater-than-anticipated cost reductions from
progress in restructuring
Net profit was ¥51.4 billion, down 1.8%
Management is lowering its full-year net sales forecast while maintaining
its earnings projection in view of cost-cutting progress in companywide
restructuring efforts and enhanced contributions in non-hardware
performance from growth in number of machines in field
Year-end dividend plans unchanged
February 1, 2016
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2
Key Indicators
FY16/03
Apr-Dec
Sales
Operating profit
1,643.8 bil. yen
EPS
+4.6%
85.4 bil. yen
-0.7%
5.2%
-0.3 pt
51.4 bil. yen
-1.8%
Operating margin
Profit attributable to owners of
the parent
Change
70.93 yen
-1.29 yen
6.9 bil. yen
+38.2 bil. yen
R&D expenditures
86.5 bil. yen
-0.3 bil. yen
Capital expenditures
61.6 bil. yen
+6.6 bil. yen
Depreciation
52.5 bil. yen
-0.7 bil. yen
FCEF*
121.67 yen
134.42 yen
Exchange rate Yen/US$
Yen/Euro
Japan
-0.6%
The Americas -2.6%
EMEA
+5.9%
Other
+8.0%
Consolidated +1.2%
+14.83 yen
- 5.84 yen
＊FCEF : Free cash flow excluding finance business
February 1, 2016
Sales Changes
Excl. Forex
(C)2016 Ricoh Company, Ltd. All Rights Reserved
3
FY2016/03 Apr-Dec Operating Profit Comparisons
• Earnings declined amid efforts to step up sales, intensifying competition, foreign
exchange fluctuations, and other factors
• Produced greater than anticipated savings from groupwide restructuring initiatives
(billions of yen)
+29.2
-28.2
-4.7
-0.6
Forex,
net
+6.0
Sales
&
Product
Mix
FY15/03
Apr-Dec
Operating
Profit
February 1, 2016
Lower
product costs
-3.0
R&D
Other
Expenses
SG&A expense reduction +13.7
Other Income +15.5
Gross profit items
SG&A items
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FY16/03
Apr-Dec
Operating
Profit
4
Business Segments (1)
Highlights
Imaging & Solutions
(billions of yen)
1,468.0
1,394.1
Network
System
Solutions
yoy
+5.3%
(Excl. forex)
234.2
201.0
(+1.7%)
( Excl. forex）
+1.3% (-2.5%)
・ Expanded A4 MFP lineup with SP 3610SF,
MP C306, and MP 305+
・ Reinforced Eastern European sales
structure by acquiring Czech and Slovakian
operations of Impromat
165.4
137.9
Office Imaging
yoy
MP 305+
Production
Printing
Production Printing
Operating
margin
1,055.1
Office
Imaging
9.0%
Operating
margin
1,068.3
8.1%
・ Expanded in commercial printing market:
RICOH Pro C7100/C9100 remained popular
RICOH Pro VC60000 sales grew
Network System Solutions
125.7
119.4
+20.0% (+13.8%)
+16.5% (+15.5%)
• Overseas IT services expanded on solid performance of
Indian operations
• Kept investing to reinforce IT services structure
Sales
Operating
profit
FY15/03
Apr-Dec
Sales
Operating
profit
FY16/03
Apr-Dec
Acquired Ridgian（UK), Graycon （Canada）, Nassion
(Malaysia）, Capa 4 (Mexico） and Upfront （Belgium）
• Steadily expanded visual communications business
overseas
Note: Excluding corporate and eliminations.
February 1, 2016
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Supplement: Imaging & Solutions Hardware and
Non-Hardware Sales
• Experienced non-hardware recovery as machines in field increased for
production printing and multifunctional printers
• Non-hardware sales growth rate unchanged in Q3
Yoy changes for MFPs, Printers, and Production Printing combined
(Value, excl. forex)
By category
FY16/03 Apr-Dec
Hardware
Non-hardware
1H -2%
3Q +0%
Non-hardware
Unit
Value → Q3 Value → Q3
MFP
+1% -5% -8% -3% -1%
Printer +11% +2% +8% -1% -3%
+8% +20% +31% +9% +11%
PP
-2% -2% -1% +0%
Total
（Value, excl. Forex）
By region
Hardware
2012/03
2013/03
2014/03
2015/03
2016/03
Apr-Dec
Overview of FY16/03 Apr-Dec
・ Expanded unit sales of A3 color MFPs and A4 MFPs and
increased number of MFPs in field
・ In production printing, generated strong gains in cut sheet
color models; non-hardware growth continued
・ Non-hardware recovery reflecting production printing
contributions in Americas and hardware expansion in Europe
・ In Asia-Pacific & China, non-hardware sales grew solidly
February 1, 2016
FY16/03 Apr-Dec
Hardware Non-hardware
Japan
The Americas
EMEA
Other
Total
0%
-10%
+8%
-1%
-2%
-3%
0%
-1%
+4%
-1%
（Value, excl. forex）
Note: See Appendix for details of quarterly trends.
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6
Supplement: Imaging & Solutions Growth Areas
Production printing sales
IT services and visual communications sales*
*Including network solutions
High
ADA
IMC Communications
01 Innnovations
Low
(billions of yen)
Momentum
2,500
mindSHIFT
Npo Sistemi
FutureTech
Aventia
(billions of yen)
Ridgian
Graycon
Nassion
Capa4
Upfront
1,500
2,000
1,000
1,500
■Production Printers
(excl. color cut-sheet and continuous feed models)
1,000
500
500
■Color cut-sheet and continuous feed printers
0
0
FY11/03 FY12/03 FY13/03 FY14/03 FY15/03 FY16/03
Q1-Q3
• Maintained sales growth in color cut-sheet and
continuous feed models with sales over nine months
reaching levels for entire previous year
• Steadily expanded in commercial printing
February 1, 2016
FY11/03 FY12/03 FY13/03 FY14/03 FY15/03 FY16/03
Q1-Q3
・ Grew IT services worldwide through strategic
investments
・ Expanded new value proposition through imaging, IT
and visual communications
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Business Segments (2)
Industrial Products
Highlights
(billions of yen)
yoy
94.6
+7.6%
(Excl. Forex)
87.9
（+4.8%）
• Expanded thermal media business in Indonesia, setting
up a company to process and market thermal ribbons
• Expanded industrial inkjet business in industrial printing
and 3D printer areas
• Acquired AnaJet
• Increased optical module sales
• Rolled out automotive power management
semiconductors and set up European sales units
Operating
margin
8.1%
Operating
margin
4.5%
8.4
4.4
Sales
Operating
profit
FY15/03
Apr-Dec
Sales
Operating
profit
RICOH MH/GH series of
industrial inkjet heads
FY16/03
Apr-Dec
R1272S series
automotive
semiconductor
Note: Excluding corporate and eliminations.
February 1, 2016
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Expanding Industrial Products Business
through AnaJet Acquisition in January 2016
Digital industrial printing market forecast
*Ricoh research
(billions of yen)
World-class industrial inkjet
heads
2,000
1,500
＋
Proprietary UV-curable inks
Strong customer base in
printing and apparel industries
Global sales and service
structure
Around 50 employees
1,000
500
Leading U.S. producer and
seller of direct-to-garment
printers
0
2014
2020
Industrial printing growth areas
Textiles
Ornamentation
and decorating
February 1, 2016
Labels and
packaging
3D printing
mPower mP10i direct-to-garment printer
employs a Ricoh inkjet head
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Business Segments (3)
Other
Highlights
・ Lower sales owing to divestment of apparel business
(billions of yen)
・ Strengthened camera lineup with high-end GRII compact
model and water- and impact-resistant RICOH WG-40W
89.4
yoy
81.1
-9.3%
(Excl. Forex)
（-9.7%）
・ In camera business, expanded spherical imaging
solutions by enhancing image processing and resolution
of THETA S and bolstered business-to-business
solutions in real estate and other areas
Operating
margin
Operating
margin
2.6%
0.0%
2.0
0.0
Sales
Operating
profit
FY15/03
Apr-Dec
Sales
Operating
profit
FY16/03
Apr-Dec
RICOH WG-40W
RICOH THETA
Note: Excluding corporate and eliminations.
February 1, 2016
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Statement of Financial Position as of
December 31, 2015
Assets
(billions of yen)
As of
Dec 31, 2015
Change
from Mar
31, '15
1,263.9
+47.5
Cash & time deposits
163.1
+24.5
Trade and other receivables
549.1
-4.3
Other financial assets
269.0
+9.0
Inventories
234.8
+10.3
47.7
+8.0
1,530.0
+16.2
Property, plant and equipment
279.5
+2.9
Goodwill and intangible assets
432.3
-3.4
Other financial assets
625.1
+23.3
Other non-current assets
193.0
-6.6
2,794.0
+63.8
Current Assets
Other current assets
Non-current assets
Total Assets
Exchange rate as of Dec 31, ‘15 :
US$ 1 = ¥120.61 ( +0.44)
1 euro = ¥131.77 ( +1.45)
February 1, 2016
Highlights
The temporary cash rise of the second quarter was
no longer a factor in cash & time deposits
Among other financial assets (current and noncurrent), lease assets expanded on financial
business growth
Inventories stemming from the previous year‘s U.S.
port strikes declined, while inventories increased for
large orders
Inventory turns increased 0.2 point, to 2.18
Total assets were up ¥63.8 billion from end-March,
reflecting lease asset increases
(Change from Mar 31, 2015)
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(C)2015
11
Statement of Financial Position as of
December 31, 2015
Liabilities and Equity
Highlights
(billions of yen)
As of
Dec 31, 2015
Change
from Mar
31, '15
778.4
+6.3
Bonds and borrowings
272.5
+50.4
Trade and other payables
245.9
-31.0
Other current liabilities
259.9
-13.0
Non-current Liabilities
835.8
+32.0
Bonds and borrowings
612.9
+44.4
Accrued pension&retirement benefits
132.5
-11.5
90.2
-0.8
Total Liabilities
1,614.2
+38.3
Total Liabilities and Equity
2,794.0
+63.8
885.4
+94.8
Current Liabilities
Other non-current liabilities
Total Debt
Exchange rate as of Dec 31, ‘15 :
US$ 1 = ¥120.61 ( +0.44)
1 euro = ¥131.77 ( +1.45)
February 1, 2016
Total interest-bearing debt
increased ¥94.8 billion from end-March 2015 in line
with finance business expansion
The ratio of equity attributable to owners of the
parent remained unchanged, at 39.7%
(Change from Mar 31, 2015)
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12
FY2016/03 Apr-Dec Statement of Cash Flows
FCEF improved ¥38.2 billion on factors such as enhanced working capital and asset revisions
FY2015/03
Apr-Dec
FY2016/03
Apr-Dec
56.8
80.8
[ 137.7 ]
-102.0
35.6
-53.7
-8.4
-48.3
-110.6
84.5
-24.2
-0.7
59.5
11.8
-3.5
136.5
55.4
81.2
[ 136.6 ]
-103.5
33.1
-43.6
-4.8
-26.9
-75.3
96.5
-25.0
-3.1
68.3
-1.1
24.9
162.6
Free cash flow ( Operating + Investing net cash )
-74.9
-42.2
FCEF (Free cash flow excluding finance business)
-31.3
6.9
(billions of yen)
Profit
Depreciation and amortization
[ Net profit + Depreciation and amortization ]
Other operating activities
Net cash by operating activities
Plant and equipment
Purchase of business
Other investing activities
Net cash by investing activities
Increase (Decrease) of debt
Dividend paid
Other financing activities
Net cash by financing activities
Effect of exchange rate
Net increase in cash and equivalents
Cash and equivalents at end of period
Free cash flow (billions of yen)
Quarterly
FCF
FCF
60.7
50.6
FCEF
39.7
34.0
19.5
0.0
0.0
1.1
4.8
0.9
-7.1
-15.9
-21.2
-36.1
Q3
Q4
Q1
-29.7 -31.5
-51.7
Q2
2014/03
-30.1
Q3
Q4
Q1
Q2
Q3
2016/03
2015/03
IFRS
Annual
FCF
FCF
FCEF
FY
11/03
FY
12/03
FY
13/03
US-GAAP
FY
14/03
FY
15/03
ＩＦＲＳ
15/03 16/03
Apr-Dec Apr-Dec
ＩＦＲＳ
＊FCEF : Free cash flow excluding finance business
February 1, 2016
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13
FY2016/03 Profit Statement Forecast
FY2015/03
Results
FY2016/03
forecast
(on Oct '15)
FY2016/03
Forecast
759.5
1,391.8
2,151.4
906.9
42.2%
791.1
36.8%
115.7
5.4%
112.2
5.2%
68.5
3.2%
94.58
770.0
1,530.0
2,300.0
927.0
40.3%
811.0
35.3%
116.0
5.0%
111.0
4.8%
71.0
3.1%
97.94
765.0
1,485.0
2,250.0
907.0
40.3%
791.0
35.2%
116.0
5.2%
111.0
4.9%
71.0
3.2%
97.94
US $1
109.89
120.90
121.26
+11.37
Euro 1
138.85
132.57
133.32
-5.53
(billions of yen)
Sales
(Japan)
(Overseas)
Total
Gross profit
sales %
SG&A
sales %
Operating profit
sales %
Profit before income tax expenses
sales %
Profit attrib ute to owners of the parent
sales %
EPS (Yen)
Exchange rate
(Yen)
February 1, 2016
Y-o-Y comparison
Change
Change(%)
Change(%)
without Forex
+5.4
+0.7%
+0.7%
+93.1
+6.7%
+3.1%
+98.5
+4.6%
+2.2%
+0.0
+0.0%
-0.1
-0.0%
Investment
(billions of yen)
+0.2
+0.2%
FY15/03 FY16/03
result
forecast
118.7
123.0
5.5%
5.5%
CAPEX
75.9
Depreciation
70.9
80.0
70.0
R&D
% of sales
-1.2
+2.4
-1.2%
+3.6%
+3.36
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(tangible fixed assets)
FY2016/03 forex assumptions
US$1
1 euro
Q4
Full year
¥120.00
¥121.26
¥130.00
¥133.32
14
Full-Year Operating Profit Comparisons
Previous forecast
+18.8
+10.0
-8.0
+27.8
-10.7
New forecast
-26.7
+10.0
-8.0
+35.7
-10.7
H1 -22.2
Q3 - 6.0
Q4 + 1.5
H1 +3.5
Q3 +2.5
Q4 +4.0
H1 -3.1
Q3 0.0
Q4 -4.9
H1 +23.1
Q3 + 6.1
Q4 + 6.5
H1 -1.0
Q3 -3.7
Q4 -6.0
(billions of yen)
+0.2
Forex,
net
115.7
FY15/03
Operating
Profit
Sales
&
Product
Mix
Lower
product costs
R&D
Other
Expenses
SG&A expense reduction +20.2
Other Income +15.5
Gross profit items
SG&A items
116.0
FY16/03
Operating
Profit
Forecast
February 1, 2016
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15
Supplement: Management Indices
ROE/ROA*
7.5%
Payout
ratio
6.5%
6.5%
2.0%
122%
（-）
64%
33.0
32%
36%
35%
33.0
34.0
35.0
16.5
17.0
16.5
17.0
29.0
4.7%
-1.4%
(yen) Annual
dividend
3.8%
1.9%
Dividends
*Before income taxes
4.2%
4.2%
2.5%
25.0
Year-end
dividend
16.5
Interim
dividend
16.5
8.5
17.5
Forecast
16.5
●ROE
●ROA
-5.1%
FY11/03 FY12/03 FY13/03 FY14/03 FY15/03 FY16/03
16.5
12.5
17.5
FY11/03 FY12/03 FY13/03 FY14/03 FY15/03 FY16/03
Forecast
US-GAAP
February 1, 2016
ＩＦＲＳ
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February 1, 2016
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