Consolidated Results

Ricoh Company, Ltd. and Consolidated Subsidiaries
Financial Highlights (1st Quarter Ended June 30, 2001) –Translation–
1. Results for the period from April 1, 2001 to June 30, 2001
(1) Operating Results
(Millions of yen)
1st quarter ended
June 30, 2001
Net sales.............................................................................................................
(% change from previous period).............................................................
Operating income..............................................................................................
(% change from previous period).............................................................
Income before income taxes ............................................................................
(% change from previous period).............................................................
Net income .........................................................................................................
(% change from previous period).............................................................
Net income per share-basic (yen)...................................................................
Net income per share-diluted (yen)................................................................
Note:
1st quarter ended
June 30, 2000
411,963
12.2
31,612
20.6
27,181
17.3
14,879
17.9
21.47
19.84
367,244
26,223
23,177
12,623
18.23
16.76
i. Equity in earnings of affiliates: ¥ 382 million (¥ 517 million in previous period)
ii. Changes in accounting method, etc.: no change
iii. Average number of shares outstanding: 693,073,668 share (692,345,854 shares in previous period)
(2)Financial Position
(Millions of yen)
June 30, 2001
Total assets .......................................................................................................
Shareholders’ equity........................................................................................
March 31, 2001
1,728,588
570,326
(3)Cash Flows
1,704,791
556,728
(Millions of yen)
1st quarter ended
June 30, 2001
Cash flows from operating activities .............................................................
Cash flows from investing activities..............................................................
Cash flows from financing activities..............................................................
Cash and cash equivalents at End of Year...................................................
Year ended
March 31, 2000
16,548
-5,358
-3,123
72,886
102,728
-62,728
-88,382
64,457
(4) Items relating to the scale of consolidation and the application of the equity method:
Number of consolidated subsidiaries: 318; nonconsolidated subsidiaries: 44; affiliated companies: 27
(5) Changes in the scale of consolidation and the application of equity method:
Companies accounted for by the equity method: 1 removal
2. Forecast of operating results from April 1, 2001 to March 31, 2002
(Millions of yen)
Half year ended
September 30, 2001
Net sales.............................................................................................................
Operating income..............................................................................................
Income before income taxes ............................................................................
Net income .........................................................................................................
830,000
61,000
54,500
29,500
Year ended
March 31, 2002
1,705,000
130,000
117,000
64,000
Notes: Net income per share (Consolidated) 92.38 yen
The consolidated forecasts made at the end of March 2001(announced on May 9, 2001) remain unchanged.
Financial data other than for fiscal 2001, ended March 31, 2001, has not been audited by independent public
accountants.
-1 -
Ricoh Co., Ltd. Quarterly Report
1st Quarter ended June 30, 2001
Performance
*Overview
- In the first quarter of fiscal 2002, ended June 30, 2001, net sales climbed 12.2%, to ¥ 411.9 billion. For your reference, if
the exchange rate had remained the same as the previous year, the growth would have been 7.9%.
- Although domestic sales were up just 1.1%, Ricoh did particularly well in its core office equipment area, which sales
were up 3.6%. Overseas sales soared 29.9%, reflecting increased revenues from the consolidation of Lanier Worldwide,
Inc., and the impact of a lower yen. With foreign exchange changes excluded, overseas sales would have increased
18.8%.
Net sales rose primarily because of the dramatically higher popularity of printing systems, especially multifunctional
printers (MFPs). Such offerings as digital plain-paper copiers and optical discs also contributed to sales.
- Operating income increased 20.6% from the previous corresponding period, owing to increased unit sales of highmargin MFPs and the low yen. Other expenses were up because of higher interest expenses due to the consolidation of
Lanier Worldwide, Inc. and increased foreign exchange losses. Nonetheless, income before income taxes was up 17.3%.
- As a result of these factors, net income increased 17.9%.
(Billions of yen)
1st quarter ended
June 30, 2001
Net sales.......................................................................
Domestic sales .......................................................
Overseas sales .......................................................
Gross profit ..................................................................
Operating income........................................................
Income before income taxes ......................................
Net income ...................................................................
Net income per share-basic (yen).............................
Net income per share-diluted (yen)..........................
Exchange rate (US$) ...................................................
Exchange rate (EURO)................................................
Expenditure for plant and equipment (billions of yen)
Depreciation for tangible fixed assets (billions of yen)
R&D Expenditure (billions of yen)...........................
411.9
228.7
183.2
174.0
31.6
27.1
14.8
21.47
19.84
122.60
107.25
17.9
15.1
17.8
-2 -
1st quarter ended
June 30, 2000
367.2
226.1
141.0
148.3
26.2
23.1
12.6
18.23
16.76
106.82
99.72
15.2
13.9
16.5
Change
12.2%
1.1%
29.9%
17.3%
20.6%
17.3%
17.9%
3.24
3.08
15.78
7.53
2.7
1.2
1.3
Ricoh Co., Ltd. Quarterly Report
1st Quarter ended June 30, 2001
*Consolidated Sales by Category (excluding foreign currency exchange effect)
Imaging Solutions
Digital Imaging Solutions
Sales of digital plain-paper copiers rose 5.6%, reflecting solid demand for mid-volume models domestically and
abroad, especially the imagio Neo 350/450 series (Aficio 1045/1035 series overseas).
Overseas sales climbed 12.9%.
Other Imaging Solutions
Sales of analog plain-paper copiers dropped 4.6%, because of a demand shift to digital models and MFPs.
Network Input/Output Systems
Printing Systems
The Ricoh Group has proactively expanded its printing equipment lineup domestically and abroad while
strengthening its printing solutions capabilities. Sales in this area jumped 55.6%, owing to booming demand for
MFPs and such models as the IPSiO Color 8000 high-speed, high-resolution color printer.
Other Input/Output Systems
Sales of this segment advanced 15.2% due to its favorable optical disc business.
Network System Solutions
Sales of this segment improved 3.0%. This was due mainly to domestic demand for our reinforced solutions business,
which encompasses personal computers, useware, document solutions, and other network areas.
Other Businesses
Sales of this segment declined 8.8%. This was because of a downturn in demand for mobile communications equipment
large-scale integrated circuits, which caused semiconductor sales to drop. Another factor was that demand declined
owing to lower sales of analog cameras and metering equipment.
Consolidated Sales by Category
(billions of yen)
450
Imaging solutions
Networking I/O systems
Network System solutions
Other Businesses
43.9
47.7
43.5
48.7
48.7
300
47.3
87.6
83.1
55.7
150
216.4
231.6
220.8
1st Quarter ended
June 30, 2000
1st Quarter ended
June 30, 2001
1st Quarter ended
June 30, 2001
*Sales amount excluding exchange
effect
0
-3 -
Ricoh Co., Ltd. Quarterly Report
1st Quarter ended June 30, 2001
* Consolidated Sales by Geographic Area
Japan
During the period under review, Ricoh strengthened its printing systems and network solutions businesses, centered on
MFPs.
Sales rose just 1.1%, however, as a downturn in semiconductor demand partially offset a 3.6% increase in imaging
equipment sales.
The Americas
Demand for digital plain-paper copiers and MFPs was in progress mainly in North America. As a result, sales soared on
growth in demand for printing solutions.
Lanier Worldwide, Inc. also contributed significantly to performance. Thus, sales in this region jumped 25.6%.
Europe
Ricoh benefited from its top market shares in digital plain-paper copiers and MFPs. As a result, European sales
increased 18.6%.
Others
Demand for mainline imaging equipment and optical discs was solid in China and the Asia-Pacific, with overall sales
rising 3.9%.
Sales by Geographic Area
(billions of yen)
450
Other
Europe
The Americas
Japan
27.1
25.7
24.7
76.1
72.1
60.8
300
79.8
69.6
55.4
150
226.1
228.7
228.7
1st Quarter ended
June 30, 2000
1st Quarter ended
June 30, 2001
1st Quarter ended
June 30, 2001
*Sales amount excluding exchange
effect
0
-4 -
Ricoh Co., Ltd. Quarterly Report
1st Quarter ended June 30, 2001
1. Consolidated Sales by Product Line
For the 1st Quarter Ended June 30, 2001 and 2000
(Millions of yen)
1st quarter ended 1st quarter ended Change(%) Change excluding
June 30, 2001
June 30, 2000
exchange rate e ffect(%)
Copiers and Related Supplies:
Domestic ............................................................
Overseas ............................................................
Total
............................................................
Percentage of net sales (%) ...........................
120,737
140,319
261,056
63.3
118,942
103,298
222,240
60.5
+1,795 (1.5)
+37,021 (35.8)
+38,816 (17.5)
+1,795 (1.5)
+24,223 (23.4)
+26,018 (11.7)
Communications and Information Systems :
Domestic
............................................................
Overseas ................................................................
Total
............................................................
Percentage of net sales (%) ...........................
72,281
34,711
106,992
26.0
67,285
29,951
97,236
26.5
+4,996 (7.4)
+4,760 (15.9)
+9,756 (10.0)
+4,996 (7.4)
+2,253 (7.5)
+7,249 (7.5)
Other Businesses:
Domestic ............................................................
Overseas ............................................................
Total
............................................................
Percentage of net sales (%) ...............................
35,723
8,192
43,915
10.7
39,930
7,838
47,768
13.0
-4,207(-10.5)
+354 (4.5)
-3,853 (-8.1)
-4,207(-10.5)
+14 (0.2)
-4,193 (-8.8)
Total:
Domestic ............................................................
228,741
Percentage of net sales (%) ...........................
55.5
Overseas ................................................................
183,222
Percentage of net sales (%) ..........................
44.5
The Americas...............................................
79,890
Percentage of net sales (%) .............
19.4
Europe...........................................................
76,169
Percentage of net sales (%) .............
18.5
Other .............................................................
27,163
Percentage of net sales (%) .............
6.6
Total..............................................................................
411,963
Reference:
Exchange rate (average rate for the corresponding periods)
226,157
61.6
141,087
38.4
55,462
15.1
60,866
16.6
24,759
6.7
367,244
+2,584 (1.1)
+2,584 (1.1)
+42,135 (29.9)
+26,490 (18.8)
+24,428 (44.0)
+14,191 (25.6)
+15,303 (25.1)
+11,327 (18.6)
+2,404 (9.7)
+972 (3.9)
+44,719 (12.2)
+29,074 (7.9)
1st quarter ended 1st quarter ended
June 30, 2001
June 30, 2000
US$1.................................
EURO 1............................
¥ 122.60
¥107.25
¥ 106.82
¥ 99.72
-5 -
Ricoh Co., Ltd. Quarterly Report
1st Quarter ended June 30, 2001
2. Consolidated Sales by Category
For the 1st Quarter Ended June 30, 2001 and 2000
(Millions of yen)
1st quarter ended 1st quarter ended Change(%) Change excluding
June 30, 2001
June 30, 2000
exchange rate e ffect(%)
<Office Equipment>
Imaging Solutions:
Digital Imaging Systems ......................................
Percentage of net sales (%) ...........................
Domestic ............................................................
Overseas ............................................................
155,181
37.7
81,244
73,937
140,686
38.3
81,077
59,609
+14,495 (10.3)
+7,841 (5.6)
+167 (0.2)
+14,328 (24.0)
+167 (0.2)
+7,674 (12.9)
Other Imaging Systems ..............................................
Percentage of net sales (%) ...........................
Domestic ............................................................
Overseas ............................................................
76,483
18.5
27,937
48,546
75,751
20.6
33,398
42,353
+732 (1.0)
-3,478 (-4.6)
-5,461(-16.4)
+6,193 (14.6)
-5,461(-16.4)
+1,983 (4.7)
Total Imaging Solutions ............................................
Percentage of net sales (%) ...........................
Domestic ............................................................
Overseas ............................................................
231,664
56.2
109,181
122,483
216,437
58.9
114,475
101,962
+15,227 (7.0)
+4,363 (2.0)
-5,294 (-4.6)
+20,521 (20.1)
-5,294 (-4.6)
+9,657 (9.5)
Networking input/output systems:
Printing Systems ...................................................
Percentage of net sales (%) ............................
Domestic ............................................................
Overseas ............................................................
77,451
18.8
31,483
45,968
47,067
12.8
21,981
25,086
+30,384 (64.6)
+26,168 (55.6)
+9,502 (43.2)
+20,882 (83.2)
+9,502 (43.2)
+16,666 (66.4)
Other Input/Output Systems ....................................
Percentage of net sales (%) ............................
Domestic ............................................................
Overseas ............................................................
10,167
2.5
3,989
6,178
8,634
2.4
3,443
5,191
+1,533 (17.8)
+1,313 (15.2)
+546 (15.9)
+987 (19.0)
+546 (15.9)
+767 (14.8)
Total Networking input/output systems .................
Percentage of net sales (%) ...........................
Domestic ............................................................
Overseas ............................................................
87,618
21.3
35,472
52,146
55,701
15.2
25,424
30,277
+31,917 (57.3)
+27,481 (49.3)
+10,048 (39.5)
+21,869 (72.2)
+10,048 (39.5)
+17,433 (57.6)
Network system solutions.........................................
Percentage of net sales (%) ...........................
Domestic ............................................................
Overseas ............................................................
Office Equipment Total..............................................
Percentage of net sales (%) ............................
Domestic ............................................................
Overseas ............................................................
48,766
11.8
48,365
401
368,048
89.3
193,018
175,030
47,338
12.9
46,328
1,010
319,476
87.0
186,227
133,249
+1,428 (3.0)
+1,423 (3.0)
+2,037 (4.4)
-609(-60.3)
+48,572 (15.2)
+2,037 (4.4)
-614(-60.8)
+33,267 (10.4)
+6,791 (3.6)
+41,781 (31.4)
+6,791 (3.6)
+26,476 (19.9)
-6 -
Ricoh Co., Ltd. Quarterly Report
1st Quarter ended June 30, 2001
2. Consolidated Sales by Category (Continued)
For the 1st Quarter Ended June 30, 2001 and 2000
(Millions of yen)
1st quarter ended 1st quarter ended Change(%) Change excluding
June 30, 2001
June 30, 2000
exchange rate e ffect(%)
< Other Businesses >
Other Businesses........................................................
43,915
47,768
-3,853 (-8.1)
-4,193 (-8.8)
Percentage of net sales (%) ...........................
10.7
13.0
Domestic ............................................................
35,723
39,930
-4,207(-10.5)
-4,207(-10.5)
Overseas ............................................................
8,192
7,838
+354 (4.5)
+14 (0.2)
Grand Total ............................................................
411,963
367,244
+44,719 (12.2) +29,074 (7.9)
Percentage of net sales (%) ............................
100.0
100.0
Domestic ............................................................
228,741
226,157
+2,584 (1.1)
+2,584 (1.1)
Percentage of net sales (%) ...........................
55.5
61.6
Overseas ............................................................
183,222
141,087
+42,135 (29.9) +26,490 (18.8)
Percentage of net sales (%) ...........................
44.5
38.4
The Americas ...................................
79,890
55,462
+24,428 (44.0) +14,191 (25.6)
Percentage of net sales (%) ..........
19.4
15.1
Europe ...............................................
76,169
60,866
+15,303 (25.1) +11,327 (18.6)
Percentage of net sales (%) ..........
18.5
16.6
Other..................................................
27,163
24,759
+2,404 (9.7)
+972 (3.9)
Percentage of net sales (%) ..........
6.6
6.7
Each category includes the following products:
Digital Imaging Systems .................. Digital PPCs, color PPCs, digital duplicators, facsimile machines, related
supplies and services
Other Imaging Systems .................... Analog PPCs, diazo copiers, and related supplies including thermal paper, and
services
Printing Systems ............................... Multifunctional printers (MFPs), laser printers, related supplies, services and
software
Other Input/Output Systems .......... Optical discs and system scanners
Network System Solutions.............. Personal computers, PC servers, network systems, network related software,
and service/support
Other Businesses.............................. Digital cameras, analog cameras, semiconductors
Reference:
Exchange rate (average rate for the corresponding periods)
1st quarter ended 1st quarter ended
June 30, 2001
June 30, 2000
US$1.................................
EURO 1............................
¥ 122.60
¥107.25
¥ 106.82
¥ 99.72
-7 -
Ricoh Co., Ltd. Quarterly Report
1st Quarter ended June 30, 2001
3. Consolidated Statements of Income
For the 1st Quarter Ended June 30, 2001 and 2000
(Millions of yen)
1st quarter ended 1st quarter ended
June 30, 2001
June 30, 2000
Net sales .....................................................................................
Cost of sales ..............................................................................
Percentage of net sales (%) .................................................
Gross profit ...................................................................................
Percentage of net sales (%) .................................................
Selling, general and administrative expenses ...........................
Percentage of net sales (%) .................................................
Operating income..........................................................................
Percentage of net sales (%) .................................................
Other (income) expenses
Interest and dividend income ...............................................
Percentage of net sales (%) ............................................
Interest expense......................................................................
Percentage of net sales (%) ............................................
Other, net.................................................................................
Percentage of net sales (%) ............................................
Income before income taxes, minority interests and
equity in earnings of affiliates.............................................. ......
Percentage of net sales (%) .................................................
Provision for income taxes ..........................................................
Percentage of net sales (%) ............................................
Minority interests .........................................................................
Percentage of net sales (%)
.........................................
Equity in earnings of affiliates
.........................................
Percentage of net sales (%)
.........................................
Net income
.........................................
Percentage of net sales (%)
.........................................
Change (%)
411,963
237,946
57.8
174,017
42.2
142,405
34.5
31,612
7.7
367,244
218,862
59.6
148,382
40.4
122,159
33.3
26,223
7.1
+44,719 (12.2)
+19,084 (8.7)
1,138
0.3
2,415
0.6
3,154
0.8
1,774
0.5
1,273
0.3
3,547
1.0
-636 (-35.9)
27,181
6.6
12,109
2.9
575
0.1
382
0.0
14,879
3.6
23,177
6.3
9,874
2.7
1,197
0.3
517
0.1
12,623
3.4
+25,635 (17.3)
+20,246 (16.6)
+5,389 (20.6)
+1,142 (89.7)
-396 (-11.1)
+4,004 (17.3)
+2,235 (22.6)
-622 (-52.0)
-135 (-26.1)
+2,256 (17.9)
Reference:
Exchange rate (average rate for the corresponding periods)
1st quarter ended 1st quarter ended
June 30, 2001
June 30, 2000
US$1.................................
EURO 1............................
¥ 122.60
¥107.25
¥ 106.82
¥ 99.72
-8 -
Ricoh Co., Ltd. Quarterly Report
1st Quarter ended June 30, 2001
4. Consolidated Balance Sheets
June 30, 2001 and March 31, 2001
Assets
(Millions of yen)
June 30, 2001March 31, 2001Change
Current Assets
Cash and deposits.....................................................................
84,171
75,644
Trade receivables ......................................................................
417,490
410,861
Marketable securities................................................................
57,444
62,213
Inventories .................................................................................
175,434
176,383
Other current assets .................................................................
55,654
54,306
Total Current Assets.......................................................................
790,193
779,407
+8,527
+6,629
-4,769
-949
+1,348
+10,786
Fixed Assets
Tangible fixed assets ..................................................................
Finance receivable ......................................................................
Other Investments and other assets ........................................
Total Fixed Assets...........................................................................
Total Assets .....................................................................................
266,735
440,550
231,110
938,395
267,249
428,790
229,345
925,384
-514
+11,760
+1,765
+13,011
1,728,588
1,704,791
+23,797
Liabilities and Minority Interest
(Millions of yen)
June 30, 2001March 31, 2001Change
Current Liabilities
Trade payable ............................................................................
288,283
291,791
Short-term borrowings..............................................................
305,386
321,185
Other current liabilities .............................................................
172,833
166,460
Total Current Liabilities ..................................................................
766,502
779,436
-3,508
-15,799
+6,373
-12,934
Fixed Liabilities
Long-term indebtedness ..........................................................
Retirement benefit obligation ..................................................
Other fixed liabilities..................................................................
Total Fixed Liabilities ......................................................................
233,441
85,476
24,780
343,697
217,743
82,828
20,625
321,196
+15,698
+2,648
+4,155
+22,501
Total Liabilities.................................................................................
1,110,199
1,100,632
+9,567
Minority Interest..............................................................................
48,063
47,431
+632
Shareholders’ Investment
(Millions of yen)
June 30, 2001 March 31, 2001
Shareholders’ Investment
Common stock...........................................................................
Additional paid-in capital.........................................................
Retained earnings......................................................................
Accumulated other comprehensive income ..........................
Total Shareholders’ Investment....................................................
Change
103,842
155,042
343,170
-31,728
570,326
103,434
154,635
332,447
-33,788
556,728
+408
+407
+10,723
+2,060
+13,598
1,728,588
1,704,791
+23,797
Contents of cash and deposits
Cash and cash equivalents ......................................................
Time deposits.............................................................................
72,886
11,285
64,457
11,187
Accumulated other comprehensive income;
Net unrealized holding gains on
available-for-sale securities .....................................................
Minimum pension liability adjustments .................................
Net unrealized gains (losses) on derivative instruments ....
Cumulative translation adjustments .......................................
11,331
-23,583
-97
-19,379
11,332
-23,579
-21,541
Total Liabilities and Shareholders’ Investment .........................
Notes:
Exchange rate (end of year)
US$ 1................................
EURO 1............................
March 31, 2001
¥ 124.60
¥ 105.20
-1
-4
+2,162
March 31, 2000
¥ 123.90
¥109.33
-9 -
Ricoh Co., Ltd. Quarterly Report
1st Quarter ended June 30, 2001
5. Statements of Cash Flow (Consolidated)
For the 1st Quarter Ended June 30, 2001, and the Year Ended March 31, 2001
(Millions of yen)
1st quarter ended
June 30, 2001
I. Cash Flows from Operating Activities:
1. Net income................................................................................................
2. Adjustments to reconcile net income to net cash
provided by operating activities—
Depreciation and amortization...........................................................
Equity in earnings of affiliates, net of dividends received............
Deferred income taxes.........................................................................
Loss on disposal and sales of plant and equipment......................
Changes in assets and liabilities, net of effects from acquisition—
Decrease (increase) in trade receivables..................................
Decrease (increase) in inventories............................................
Decrease (increase) in finance receivables..............................
(Decrease) increase in trade payables......................................
(Decrease) increase in accrued income taxes and
accrued expenses and other ......................................................
(Decrease) increase in retirement benefit obligation..............
Other, net......................................................................................
Net cash provided by operating activities.................................................
II. Cash Flows from Investing Activities:
1. Proceeds from sales of plant and equipment ......................................
2. Expenditures for plant and equipment .................................................
3. Payments for purchases of available-for-sale securities ...................
4. Proceeds from sales of available-for-sale securities ..........................
5. Decrease (increase) in time deposits ....................................................
6. Acquisition amount of Lanier Worldwide, Inc ...................................
7. Other, net..................................................................................................
Net cash used in investing activities..........................................................
III. Cash Flows from Financing Activities:
1. Proceeds from long-term indebtedness ...............................................
2. Repayment of long-term indebtedness................................................
3. (Decrease) increase in short-term borrowings, net ............................
4. Proceeds from issuance of long-term debt securities ........................
5. Repayment of long-term debt securities ..............................................
6. Cash dividends paid ...............................................................................
7. Other, net..................................................................................................
Net cash provided by (used in) financing activities ................................
IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents .....
V. Net Increase (Decrease) in Cash and Cash Equivalents ........................
VI. Cash and Cash Equivalents at Beginning of Year.................................
VII. Cash and Cash Equivalents at End of Year...........................................
- 10 -
Year ended
March 31, 2001
14,879
53,228
15,149
143
(3,586)
114
62,142
(1,056)
(9,994)
2,223
(7,017)
941
(11,379)
(4,111)
(32,476)
(7,167)
(15,127)
16,235
6,364
2,625
2,426
16,548
27,310
1,667
5,743
102,728
273
(17,954)
(7,595)
21,043
(144)
(981)
(5,358)
1,120
(73,040)
(52,853)
93,705
6,797
(28,103)
(10,354)
(62,728)
7,805
(8,758)
(7,789)
10,000
(4,154)
(227)
(3,123)
362
8,429
64,457
72,886
33,183
(114,701)
5,565
(2,990)
(7,964)
(1,475)
(88,382)
1,001
(47,381)
111,838
64,457
Ricoh Co., Ltd. Quarterly Report
1st Quarter ended June 30, 2001
6. Segment Information
(1) Business Segment Information
For the 1st Quarter Ended June 30, 2001
(Millions of yen)
Office equipment Other Businesses
Corporate and
Total
eliminations
Net sales:
Segment sales ..................................
Intersegment transaction ...............
Total ........................................................
Operating expenses:
Segment operating expenses .........
Intersegment transaction ...............
Unallocated operating expense.....
Total ........................................................
Operating income:
Segment operating income.............
Intersegment transaction ...............
Unallocated operating income.......
Consolidated operating income...........
Other income(expenses).......................
Consolidated pretax profit ....................
368,048
368,048
45,066
45,066
-1,151
-1,151
413,114
-1,151
411,963
326,030
326,030
44,445
44,445
-1,151
11,027
9,876
370,475
-1,151
11,027
380,351
42,018
42,018
-
621
621
-
0
-11,027
-11,027
-
42,639
0
-11,027
31,612
-4,431
27,181
(2) Geographic Segment Information
For the 1st Quarter Ended June 30, 2001
(Millions of yen)
Japan
The Americas Europe
Other
Corporate and
Total
eliminations
Net sales:
External customers ..........................
Intersegment ....................................
Total ........................................................
Operating expenses:..............................
Operating income:..................................
Other income(expenses).......................
Consolidated pretax profit ....................
235,115
78,923
314,038
280,952
33,086
-
79,527
1,492
81,019
81,869
-850
-
- 11 -
76,206
936
77,142
74,602
2,540
-
21,115
14,513
35,628
34,419
1,209
-
-95,864
-95,864
-91,491
-4,373
-
411,963
411,963
380,351
31,612
-4,431
27,181
Ricoh Co., Ltd. Quarterly Report
1st Quarter ended June 30, 2001
7. Significant Accounting Policies (Consolidated)
1. Items relating to the scale of consolidation and the application of the equity method
Companies accounted for by the equity method:
1 removal: Sakura Technos Ltd..(liquidation)
2. Consolidated Accounting Policies
(1) Principles of Consolidation
The consolidated financial statements include the accounts of Ricoh. All significant intercompany balances and
transactions have been eliminated in consolidation. Investments in affiliated companies are accounted for on the equity
basis.
(2) Securities
Ricoh conforms with SFAS No.115, "Accounting for Certain Investments in Debt and Equity Securities," which requires
certain investments in debt and equity securities to be classified as either held-to-maturity, trading, or available-for-sale
securities. Available-for-sale 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 was computed based on the average cost of each security held at the time of sale.
(3) Inventories
Inventories are stated at the lower of average cost or market. Inventory costs include raw materials, labor and
manufacturing overheads.
(4) Plant and Equipment
Depreciation of 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 SFAS No. 13,
"Accounting for Leases."
(5) Goodwill
Ricoh has classified as goodwill the cost in excess of fair value of the net assets of major companies acquired in purchase
transactions. Goodwill is being amortized on a straight-line method over the estimated periods
benefited, not to exceed 20 years.
(6) 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, and the disclosure of contingent assets and liabilities, to prepare these
financial statements in conformity with generally accepted accounting principles. Actual results could differ from those
estimates.
3. Notes
From fiscal 2002, Ricoh has adopted SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities,”
and SFAS No. 138, “Accounting for Certain Derivative Instruments and Certain Hedging Activities,” an amendment of
FASB Statement No. 133. These standards require all that every derivative instrument be measured at its fair value and
be recorded in the consolidated balance sheets as an asset or liability.
Under the new standards, the unrealized gains of ¥ 1,864 million net of the income tax effect are deducted from other
comprehensive income in the consolidated balance sheets, and a decrease to net income of ¥ 66 million are recorded in
the consolidated statements of income.
- 12 -
Ricoh Co., Ltd. Quarterly Report
1st Quarter ended June 30, 2001
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