Financial Highlights /Appendix

12345
QUARTERLY REPORT
1st Quarter ended June 30, 2004
(Results for the Period from April 1, 2004 to June 30, 2004)
Performance Outline (Consolidated)
Three months ended Three months ended
June 30, 2004
June 30, 2003
Change
Results
Results
(Billions of yen)
Year ending
March 31, 2005 Change
Forecast
Domestic sales
Overseas sales
Net sales
Gross profit
Operating income
Income before income taxes
Net income
233.3
203.2
436.5
189.1
39.3
41.3
24.8
224.3
213.1
437.4
192.7
38.4
37.3
22.3
4.0%
-4.6%
-0.2%
-1.9%
2.3%
10.7%
11.4%
935.0
875.0
1,810.0
785.0
175.0
165.0
95.0
2.3%
1.0%
1.7%
2.5%
16.7%
15.3%
3.5%
Exchange rate (Yen/US$)
Exchange rate (Yen/EURO)
109.65
132.17
118.52
134.67
-8.87
-2.50
106.16
130.54
-6.93
-2.11
Net income per share (yen)
33.69
30.04
3.65
128.58
4.95
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of period
42.2
-10.8
-21.2
215.4
39.8
-7.9
-6.4
215.9
2.3
-2.9
-14.8
-0.5
-
-
18.6
15.9
24.3
18.6
17.0
19.3
-0.0
-1.0
4.9
74.5
69.0
100.0
-1.0
1.3
7.4
Capital expenditures
Depreciation for tangible fixed assets
R&D expenditures
June 30, 2004
Total assets
Shareholders' equity
Interest-bearing debt
Change
1,855.7
812.9
423.7
1,852.7
795.1
432.7
2.9
17.7
-8.9
43.8
42.9
0.9
1,100.24
1,076.11
24.13
Equity ratio (%)
Shareholder's equity per share (yen)
March 31, 2004
Ricoh Company, Ltd.
* The Company bases the forecast estimates for March 31, 2005 above upon information currently available to management, which involves risks
and uncertainties that could cause actual results to differ materially from those projected.
1
Performance
*Overview
Consolidated net sales for the first quarter of fiscal 2005 (the three months period from April 1 to June 30, 2004) decreased
by 0.2% as compared to the previous corresponding period, to ¥436.5 billion. During this quarter, the average yen exchange
rates were at ¥109.65 against the U.S. dollar (an appreciation of approximately 7.5% as compared to the previous
corresponding period) and ¥132.17 against the Euro (an appreciation of approximately 1.9% as compared to the previous
corresponding period). Net sales would rise 1.3% excluding impacts of such foreign currency exchange fluctuations.
In Japan, sales of printing systems such as MFPs (multifunctional printers) and laser printers, especially color model,
increased reflecting the market needs of the shift from standalone, analog products to networking and color model. In
addition, solutions business such as support and service continued to be favorable. On the other hand, sales of optical disc
and semiconductor business decreased owing to sluggish period of demand cycle. Overall domestic sales consequently
increased by 4.0% as compared to the previous corresponding period.
As for overseas, sales of product categories such as color PPCs (plain paper copiers), MFPs and laser printers increased in
each region. Although sales in the Americas decreased by 1.4% as compared to the previous corresponding period due to
yen’s appreciation against the U.S. dollar (6.4% increase excluding currency exchange impact), sales in Europe increased by
1.7% with steady growth of sales volume. And sales in other region such as China, Asian and Oceania countries decreased
by 30.0%, owing to decline of optical disks demand and the sale of certain consolidated subsidiaries in optical related
business. As a result, overall overseas sales decreased by 4.6%, though it would have decreased by 1.6% excluding impacts
of the currency exchange fluctuations.
Gross profit decreased by 1.9% to ¥189.1 billion due to yen’s appreciation, in spite of increased sales for high-margin, highvalue-added products and ongoing cost-cutting activities such as continuous production improvement and so on.
Although strategic spending on research and development increased ¥4.9 billion as compared to the previous corresponding
period, to ¥24.3 billion, pension cost was, especially, reduced by the remodel of pension system in Japan in the previous
fiscal year. As a result, selling, general and administrative expenses decreased by 2.9% to ¥149.7 billion.
Consequently, operating income increased by 2.3% as compared to the previous corresponding period, to ¥39.3 billion.
Other (income) expense improved ¥3.0 billion, especially due to the interest expense decrease resulted from reduced
interest-bearing debt and foreign currency exchange gains on the contrary to the exchange loss in the previous corresponding
period.
As a result, income before income taxes increased by 10.7% as compared to the previous corresponding period, to ¥41.3
billion.
The expanded amount of tax exemption on the research and development expenses and spending on Information
Technology caused tax expense reduced. As a result, net income increased by 11.4% as compared to the previous
corresponding period, to ¥24.8 billion.
2
*Conditions by Product Line
Office Equipment (Sales up 0.1% to ¥383.9 billion)
Customer demand has shift more and more from standalone analog products to digital, networking, color and high-speed models in
Japan and overseas market place. Ricoh has enforced solution proposal to customers for the optimization of their total printing cost,
in order to support their efficient management of TDV (Total Document Volume). As a result, sales volume of color PPCs and
Printing Systems category such as MFPs and laser printers continued to grow, though sales of Imaging Solutions category decreased.
Sales of Network System Solutions category such as support and service increased, however the sales volume of optical disc
business decreased due to sluggish period of demand cycle and the in-between period of model change. In addition, yen’s
appreciation impacted. The total sales of Office Equipment increased by 0.1% as compared to the previous corresponding periods,
to ¥383.9 billion.
Imaging Solutions (Sales down 14.6% to ¥181.6 billion)
Digital Imaging Systems
- Shift from standalone products to MFPs all over the world caused the sales decline.
- The sales of color PPCs increased, with new offering to meet growing customer demand.
- As a result, sales in this category decreased by 12.3% as compared to the previous corresponding period.
Other Imaging Systems
- Sales were down by 21.4% due to the shift from analog products to MFPs and/or color products.
Network Input/Output Systems (Sales up 23.4% to ¥157.3 billion)
Printing Systems
- Constant offering new products to cope with the demand shift to networked and color models in Japan and overseas brought
about continuous sales increase.
MFPs:
Imagio Neo 352 and Imagio Neo 602 in Japan
Aficio 2035e/2045e series and Aficio 2105/2090 series overseas
Color MFPs: Imagio Neo C245 and Imagio Neo C325 in Japan
Aficio 2232C/2238C series overseas
- Sales of laser printers continued to increase.
- The sales volume of office use color printer with Ricoh’s original ‘GEL JET’ technology and strategic low price, launched in
February 2004, steadily increased.
- As a result, sales of this category increased by 30.9%.
Other Input/Output Systems
Sales decreased by 52.9% mainly due to model change influence in the optical discs business in Japan and overseas.
Network System Solutions (Sales up 3.6% to ¥44.9 billion)
- Solution business such as support and service continued to increase, due primarily to customer acceptance of our
solution proposal for the optimization of their total printing cost.
Consequently, overall sales of Office Equipment segment increased by 0.1% as compared to the previous corresponding period.
Operating income increased by 3.9% to ¥50.1 billion. It can be resulted from the sales increase of Printing Systems category, the
continuous offering of new products and ongoing cost-cutting activities by production improvement and so on.
Other Businesses (Sales down 2.1% to ¥52.5 billion)
Sales in this segment decreased by 2.1% as compared to the previous corresponding period, to ¥52.5 billion, due primarily to the sale
of certain consolidated subsidiaries in optical related business, and sluggish demand cycle for semiconductor.
As a result, overall operating income for Other Businesses segment decreased to ¥1.0 billion.
*Cash Flows (Three months from April 1, 2004 to June 30, 2004)
Net cash provided by operating activities increased ¥2.3 billion as compared to the previous corresponding period, to ¥42.2 billion.
It was due to the fact that net income increased as compared to the previous corresponding period and the decrease of trade
receivable due to sales growth in the fourth quarter of fiscal 2004.
Net cash used in investing activities increased ¥2.9 billion as compared to the previous corresponding period, to ¥10.8 billion, due
primarily to capital expenditures spending for new production lines and production development.
As a result, free cash flow generated by operating and investing activities totaled ¥31.3 billion, no significant change as compared to
the previous corresponding period.
Net cash used in financing activities amounted to ¥21.2 billion due primarily to decrease of interest-bearing debt and payment of
dividends.
As a result, cash and cash equivalents at the end of this first quarter were ¥12.4 billion higher than the end of the preceding fiscal
year, standing at ¥215.4 billion.
3
*Forecast for the entire fiscal year
As for the forecast of business results for the fiscal year ended March 31, 2005, we maintain our exchange rates
assumption of ¥105.00 against the U.S. dollar and of ¥130.00 against the Euro in and after the second quarter as
announced in April 2004.
And we maintain our forecast of sales as announced in April 2004. We intend to implement business strategies such
as continuous and effective offering of new products and so on in order to continue to grow in spite of fluctuations of
market demand and exchange rate.
As for income, we maintain our forecast of operation income, income before income tax and net income as announced
in April 2004, although the results of first quarter was more than our forecast at the beginning of this fiscal year and
we intend to improve profitability still more.
Our performance forecasts for fiscal 2005 are as follows:
Exchange Rate Assumptions for the full year ending March 31, 2005
US$ 1 = ¥106.16 (¥113.09 in previous fiscal year)
EURO 1 = ¥130.54 (¥132.65 in previous fiscal year)
(Billions of yen)
Year ending
March 31, 2005
Forecast
935.0
875.0
1,810.0
785.0
175.0
165.0
95.0
Year ended
March 31, 2004
Results
914.0
866.1
1,780.2
765.6
150.0
143.0
91.7
Change
Domestic sales
2.3%
Overseas sales
1.0%
Net sales
1.7% (*1)
Gross profit
2.5%
Operating income
16.7%
Income before income taxes
15.3%
Net income
3.5% (*2)
Notes:
*1…Net sales would be eleventh consecutive year of growth.
*2…Net income would be thirteenth consecutive year of growth and eleventh consecutive year of record high.
* Ricoh bases the forecast estimates for March 31, 2005 above upon information currently available to
management, which involves risks and uncertainties that could cause actual results to differ materially from those
projected.
4
Ricoh Company, Ltd. and Consolidated Subsidiaries
Financial Highlights for the 1st Quarter ended June 30, 2004 (U.S. GAAP Financial Information)
1. Items relating to 1st quarter financial statements
(1) No change in accounting method has been made
(2) Change relating to the scale of consolidation and the application of the equity method:
Consolidated subsidiaries: No addition; 20 removals
Companies accounted for by the equity method: 1 addition; 1 removal
2. Results for the period from April 1, 2004 to June 30, 2004
(1) Operating Results
Net sales
(% change from the previous corresponding period)
Operating income
(% change from the previous corresponding period)
Income before income taxes
(% change from the previous corresponding period)
Net income
(% change from the previous corresponding period)
Net income per share-basic (yen)
Net income per share-diluted (yen)
Three months ended
June 30, 2004
436,550
-0.2
39,387
2.3
41,319
10.7
24,894
11.4
33.69
-
Three months ended
June 30, 2003
437,453
2.1
38,484
7.1
37,317
15.6
22,355
14.5
30.04
-
(Millions of yen)
Year ended
March 31, 2004
1,780,245
2.4
150,006
12.2
143,063
15.9
91,766
26.6
123.63
-
June 30, 2004
1,855,745
812,915
43.8
1,100.24
June 30, 2003
1,924,631
685,730
35.6
920.97
(Millions of yen)
March 31, 2004
1,852,793
795,131
42.9
1,076.11
Three months ended
June 30, 2004
42,268
-10,899
-21,294
215,467
Three months ended
June 30, 2003
39,877
-7,973
-6,404
215,982
(Millions of yen)
Year ended
March 31, 2004
154,911
-63,383
-74,835
203,039
(2) Financial Position
Total assets
Shareholders' equity
Equity ratio (%)
Equity per share (yen)
Cash Flow
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of period
3. Forecast of operating results from April 1, 2004 to March 31, 2005
Though we maintain our forecast of each period as announced in April 2004, we revised the forecast of net income per share
(Consolidated) for the reason that average number of share outstanding has changed with purchase of treasury stocks.
(Millions of yen)
Half year ending
Year ending
March 31, 2005
September 30, 2004
Net sales
895,000
1,810,000
Operating income
78,000
175,000
Income before income taxes
74,500
165,000
Net income
43,800
95,000
Note: Net income per share (Consolidated) 128.58 yen
In accordance with Japanese regulations, Ricoh has issued forecast for its financial results for the fiscal year ending March 2005.
These forecast are forward-looking statements based on a number of assumptions and beliefs in light of the information currently
available to management and subject to significant risks and uncertainties.
5
Consolidated Performance
1. Consolidated Statements of Income
(Millions of yen)
Three months ended
June 30, 2004
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) expense
Interest and dividend income
Percentage of net sales (%)
Interest expense
Percentage of net sales (%)
Other, net
Percentage of net sales (%)
Income before income taxes,
equity income and minority interests
Percentage of net sales (%)
Provision for income taxes
Percentage of net sales (%)
Minority interests in earnings of subsidiaries
Percentage of net sales (%)
Equity in earnings of affiliates
Percentage of net sales (%)
Net income
Percentage of net sales (%)
Three months ended
June 30, 2003
436,550
247,379
56.7
189,171
43.3
149,784
34.3
39,387
9.0
437,453
244,701
55.9
192,752
44.1
154,268
35.3
38,484
8.8
603
0.1
1,230
0.3
-2,559
-0.7
696
0.1
1,524
0.3
339
0.1
41,319
9.5
15,919
3.6
1,118
0.3
612
0.1
24,894
5.7
37,317
8.5
14,062
3.2
1,352
0.3
452
0.1
22,355
5.1
Change
-0.2
1.1
-3,581
-1.9
-4,484
-2.9
903
2.3
-93
-13.4
-294
-19.3
-2,898
-
4,002
10.7
1,857
13.2
-234
-17.3
160
35.4
2,539
11.4
2-1. Consolidated Sales by Product Category
(Millions of yen)
Three months ended
June 30, 2004
<Office Equipment>
Imaging Solutions:
Digital Imaging Systems
Percentage of net sales (%)
Other Imaging Systems
Percentage of net sales (%)
Total Imaging Solutions
Percentage of net sales (%)
Network Input/Output Systems:
Printing Systems
Percentage of net sales (%)
Other Input/Output Systems
Percentage of net sales (%)
Total Network Input/Output Systems
Percentage of net sales (%)
Network System Solutions
Percentage of net sales (%)
Office Equipment Total
Percentage of net sales (%)
< Other Businesses >
Other Businesses
Percentage of net sales (%)
Grand Total
Percentage of net sales (%)
Three months ended
June 30, 2003
139,383
31.9
42,246
9.7
181,629
41.6
158,997
36.3
53,771
12.3
212,768
48.6
151,970
34.8
5,385
1.2
157,355
36.0
44,989
10.4
383,973
88.0
116,106
26.5
11,421
2.7
127,527
29.2
43,437
9.9
383,732
87.7
52,577
12.0
436,550
100.0
53,721
12.3
437,453
100.0
Change
%
-19,614
-12.3
-11,525
-21.4
-31,139
-14.6
35,864
30.9
-6,036
-52.9
29,828
23.4
1,552
3.6
241
0.1
-1,144
-2.1
-903
-0.2
2-2. Consolidated Sales by Geographic Area
(Millions of yen)
Three months ended
June 30, 2004
<Domestic>
Percentage of net sales (%)
<Overseas>
Percentage of net sales (%)
The Americas
Percentage of net sales (%)
Europe
Percentage of net sales (%)
Other
Percentage of net sales (%)
Grand Total
Percentage of net sales (%)
Reference : Exchange rate
US$ 1
EURO 1
%
-903
2,678
Three months ended
June 30, 2003
233,312
53.4
203,238
46.6
78,401
18.0
100,323
23.0
24,514
5.6
436,550
100.0
224,335
51.3
213,118
48.7
79,491
18.2
98,619
22.5
35,008
8.0
437,453
100.0
¥109.65
¥132.17
¥118.52
¥134.67
6
Change
%
8,977
4.0
-9,880
-4.6
-1,090
-1.4
1,704
1.7
-10,494
-30.0
-903
-0.2
3. Segment Information
(Millions of yen)
(1) Industry Segment Information
Three months ended
June 30, 2004
Office Equipment:
Net sales:
Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income
Operating income on office equipment sales(%)
Other Businesses:
Net sales:
Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income
Operating income on sales in other businesses (%)
Corporate and Eliminations:
Net sales:
Intersegment
Total
Operating expenses:
Intersegment
Corporate
Total
Operating income
Consolidated:
Net sales:
Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income
Operating income on consolidated net sales(%)
Three months ended
June 30, 2003
%
383,973
383,973
333,863
50,110
13.1
383,732
383,732
335,487
48,245
12.6
241
241
-1,624
1,865
0.1
0.1
-0.5
3.9
52,577
668
53,245
52,158
1,087
2.0
53,721
627
54,348
51,936
2,412
4.4
-1,144
41
-1,103
222
-1,325
-2.1
6.5
-2.0
0.4
-54.9
-668
-668
-627
-627
-41
-41
-
-678
11,820
11,142
-11,810
-647
12,193
11,546
-12,173
-31
-373
-404
363
-
436,550
436,550
397,163
39,387
9.0
437,453
437,453
398,969
38,484
8.8
-903
-903
-1,806
903
-0.2
-0.2
-0.5
2.3
(Millions of yen)
(2) Geographic Segment Information
Three months ended
June 30, 2004
Japan:
Net sales:
External customers
Intersegment
Total
Operating expenses
Operating income
Operating income on sales in Japan(%)
The Americas:
Net sales:
External customers
Intersegment
Total
Operating expenses
Operating income
Operating income on sales in the Americas(%)
Europe:
Net sales:
External customers
Intersegment
Total
Operating expenses
Operating income
Operating income on sales in Europe(%)
Other:
Net sales:
External customers
Intersegment
Total
Operating expenses
Operating income
Operating income on sales in other(%)
Corporate and Eliminations:
Net sales:
Intersegment
Total
Operating expenses:
Operating income
Consolidated:
Net sales:
External customers
Intersegment
Total
Operating expenses
Operating income
Operating income on consolidated net sales(%)
Change
Three months ended
June 30, 2003
Change
%
239,663
96,410
336,073
304,421
31,652
9.4
238,338
97,074
335,412
301,568
33,844
10.1
1,325
-664
661
2,853
-2,192
0.6
-0.7
0.2
0.9
-6.5
76,632
1,295
77,927
76,053
1,874
2.4
77,534
1,582
79,116
76,823
2,293
2.9
-902
-287
-1,189
-770
-419
-1.2
-18.1
-1.5
-1.0
-18.3
100,626
941
101,567
95,414
6,153
6.1
98,763
1,056
99,819
94,329
5,490
5.5
1,863
-115
1,748
1,085
663
1.9
-10.9
1.8
1.2
12.1
19,629
21,010
40,639
38,239
2,400
5.9
22,818
25,115
47,933
45,580
2,353
4.9
-3,189
-4,105
-7,294
-7,341
47
-14.0
-16.3
-15.2
-16.1
2.0
-119,656
-119,656
-116,964
-2,692
-124,827
-124,827
-119,331
-5,496
5,171
5,171
2,367
2,804
-
436,550
436,550
397,163
39,387
9.0
437,453
437,453
398,969
38,484
8.8
-903
-903
-1,806
903
-0.2
-0.2
-0.5
2.3
7
4. Consolidated Balance Sheets
Assets
June 30, 2004
Current Assets
Cash and time deposits
Trade receivables
Marketable securities
Inventories
Other current assets
Total Current Assets
Fixed Assets
Tangible fixed assets
Finance receivable
Other Investments
Total Fixed Assets
Total Assets
Note:
Contents of cash and time deposits:
Cash and cash equivalents
Time deposits
March 31, 2004
217,598
395,163
45,122
150,577
54,656
863,116
204,001
422,244
45,124
145,369
55,079
871,817
13,597
-27,081
-2
5,208
-423
-8,701
237,454
527,982
227,193
992,629
1,855,745
238,712
514,047
228,217
980,976
1,852,793
-1,258
13,935
-1,024
11,653
2,952
215,467
2,131
203,039
962
Liabilities and Shareholders’ Investment
June 30, 2004
Current Liabilities
Trade payables
Short-term borrowings
Other current liabilities
Total Current Liabilities
Fixed Liabilities
Long-term indebtedness
Retirement benefit obligation
Other fixed liabilities
Total Fixed Liabilities
Total Liabilities
Minority Interest
Shareholders’ Investment
Common stock
Additional paid-in capital
Retained earnings
Accumulated other comprehensive income (loss)
Treasury stock
Total Shareholders’ Investment
Total Liabilities and Shareholders’ Investment
Note: Other comprehensive income;
Net unrealized holding gains on available-for-sale securities
Pension liability adjustments
Net unrealized gains (losses) on derivative instruments
Cumulative translation adjustments
Reference: Exchange rate
US$ 1
EURO 1
8
(Millions of yen)
Change
March 31, 2004
(Millions of yen)
Change
283,044
183,217
163,113
629,374
297,672
151,162
158,594
607,428
-14,628
32,055
4,519
21,946
240,564
85,690
37,429
363,683
993,057
49,773
281,570
83,492
36,295
401,357
1,008,785
48,877
-41,006
2,198
1,134
-37,674
-15,728
896
135,364
186,599
533,654
-30,673
-12,029
812,915
1,855,745
135,364
186,599
515,372
-30,272
-11,932
795,131
1,852,793
0
18,282
-401
-97
17,784
2,952
4,210
-17,595
-17
-17,271
4,026
-14,863
-24
-19,411
184
-2,732
7
2,140
June 30, 2004
¥108.43
¥131.06
March 31, 2004
¥105.69
¥128.88
5. Consolidated Statements of Cash Flow
(Millions of yen)
Three months ended Three months ended
June 30, 2004
June 30, 2003
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 tangible fixed assets
Changes in assets and liabilities—
Decrease in trade receivables
Increase in inventories
Increase in finance receivables
(Decrease) Increase in trade payables
Increase in accrued income taxes and
accrued expenses and other
Retirement benefit obligation, net
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 tangible fixed assets
3. Payments for purchases of available-for-sale securities
4. Proceeds from sales of available-for-sale securities
5. (Increase) Decrease in time deposits
6. 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. Purchase of treasury stocks
8. Other, net
Net cash used in financing activities
IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents
V. Net Increase in Cash and Cash Equivalents
VI. Cash and Cash Equivalents at Beginning of Year
VII. Adjustment for Change of Fiscal Period on Consolidated Subsidiaries
VIII. Cash and Cash Equivalents at End of Period
9
24,894
22,355
18,790
-158
2,771
17
19,673
2
-3,382
22
23,735
-7,841
-13,546
-11,390
8,801
-14,126
-8,102
6,019
3,074
-429
2,351
42,268
3,792
6,835
-2,012
39,877
535
-18,647
-137
5
-1,182
8,527
-10,899
7
-18,657
-25,043
30,063
7,176
-1,519
-7,973
14,734
-18,929
-342
1,000
-10,000
-7,405
-98
-254
-21,294
-122
9,953
203,039
2,475
215,467
759
-8,596
11,907
-5,000
-5,195
-85
-194
-6,404
1,239
26,739
189,243
215,982
6. Significant Accounting Policies (Consolidated)
1. Change relating to the scale of consolidation and the application of the equity method from April 1, 2004 to June 30,
2004.
Consolidated subsidiaries:
No addition
20 removals including HANIMEX AUSTRALASIA PTY LTD.
Companies accounted for by the equity method:
Addition:TRIANGLE SPIRIT CORPORATION.
Removal: FOTO ISLAND (NSW) PTY. LTD.
2. Consolidated Accounting Policies (Summary)
(1) 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.
Certain overseas subsidiaries of the company changed the fiscal year end from December 31 to March 31, at the beginning of
fiscal 2005. As a result, retained earnings increased by ¥777 million and other comprehensive income (loss) decreased by ¥
1,665 million.
(2) Securities
In conformity with SFAS No.115, 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.
(3) Inventories
Inventories are mainly 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 and Other Intangible Assets
In conformity with SFAS No.142, Goodwill and intangible asset determined to have an indefinite useful life are not amortized.
SFAS No. 142 requires annual impairment testing thereof.
(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, 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 generally accepted
accounting principles. Actual results could differ from those estimates.
10
-APPENDIX1. Consolidated Sales by Product Category
(Millions of yen)
<Office Equipment>
Imaging Solutions:
Digital Imaging Systems
Percentage of net sales (%)
Domestic
Overseas
Other Imaging Systems
Percentage of net sales (%)
Domestic
Overseas
Total Imaging Solutions
Percentage of net sales (%)
Domestic
Overseas
Network Input/Output Systems:
Printing Systems
Percentage of net sales (%)
Domestic
Overseas
Other Input/Output Systems
Percentage of net sales (%)
Domestic
Overseas
Total Network Input/Output Systems
Percentage of net sales (%)
Domestic
Overseas
Network System Solutions
Percentage of net sales (%)
Domestic
Overseas
Office Equipment Total
Percentage of net sales (%)
Domestic
Overseas
The Americas
Europe
Other
< Other Businesses >
Other Businesses
Percentage of net sales (%)
Domestic
Overseas
The Americas
Europe
Other
Grand Total
Percentage of net sales (%)
Domestic
Percentage of net sales (%)
Overseas
Percentage of net sales (%)
The Americas
Percentage of net sales (%)
Europe
Percentage of net sales (%)
Other
Percentage of net sales (%)
Each category includes the following product line:
Digital Imaging Systems
Other Imaging Systems
Printing Systems
Other Input/Output Systems
Network System Solutions
Other Businesses
Reference:
Exchange rate
US$ 1
EURO 1
Three months ended
June 30, 2004
Three months ended
June 30, 2003
139,383
31.9
59,106
80,277
42,246
9.7
15,995
26,251
181,629
41.6
75,101
106,528
158,997
36.3
65,894
93,103
53,771
12.3
19,282
34,489
212,768
48.6
85,176
127,592
151,970
34.8
66,715
85,255
5,385
1.2
939
4,446
157,355
36.0
67,654
89,701
44,989
10.4
43,577
1,412
383,973
88.0
186,332
197,641
78,225
99,511
19,905
116,106
26.5
52,458
63,648
11,421
2.7
1,642
9,779
127,527
29.2
54,100
73,427
43,437
9.9
42,667
770
383,732
87.7
181,943
201,789
78,908
97,613
25,268
52,577
12.0
46,980
5,597
176
812
4,609
436,550
100.0
233,312
53.4
203,238
46.6
78,401
18.0
100,323
23.0
24,514
5.6
53,721
12.3
42,392
11,329
583
1,006
9,740
437,453
100.0
224,335
51.3
213,118
48.7
79,491
18.2
98,619
22.5
35,008
8.0
Change excluding
exchange impact
Change
%
-19,614
-12.3
-16,323
-10.3
-6,788
-12,826
-11,525
-10.3
-13.8
-21.4
-6,788
-9,535
-10,775
-10.3
-10.2
-20.0
-3,287
-8,238
-31,139
-17.0
-23.9
-14.6
-3,287
-7,488
-27,098
-17.0
-21.7
-12.7
-10,075
-21,064
-11.8
-16.5
-10,075
-17,023
-11.8
-13.3
35,864
30.9
38,072
32.8
14,257
21,607
-6,036
27.2
33.9
-52.9
14,257
23,815
-5,996
27.2
37.4
-52.5
-703
-5,333
29,828
-42.8
-54.5
23.4
-703
-5,293
32,076
-42.8
-54.1
25.2
13,554
16,274
1,552
25.1
22.2
3.6
13,554
18,522
1,581
25.1
25.2
3.6
910
642
241
2.1
83.4
0.1
910
671
6,559
2.1
87.1
1.7
4,389
-4,148
-683
1,898
-5,363
2.4
-2.1
-0.9
1.9
-21.2
4,389
2,170
5,503
1,417
-4,750
2.4
1.1
7.0
1.5
-18.8
-1,144
-2.1
-951
-1.8
4,588
-5,732
-407
-194
-5,131
-903
10.8
-50.6
-69.8
-19.3
-52.7
-0.2
4,588
-5,539
-393
-181
-4,965
5,608
10.8
-48.9
-67.4
-18.0
-51.0
1.3
8,977
4.0
8,977
4.0
-9,880
-4.6
-3,369
-1.6
-1,090
-1.4
5,110
6.4
1,704
1.7
1,236
1.3
-10,494
-30.0
-9,715
-27.8
Digital PPCs, color PPCs, digital duplicators and facsimile machines
Analog PPCs, diazo copiers, and thermal paper
MFPs(multifunctional printers), laser printers and software
Optical discs and system scanners
Personal computers, PC servers, network systems and network related software
Optical equipments, measuring equipments and semiconductors
Three months ended
June 30, 2004
¥109.65
¥132.17
Three months ended
June 30, 2003
¥118.52
¥134.67
A1
Change
¥-8.87
¥-2.50
%
2. Forecast of Consolidated Performance
(Billions of yen)
Three months ended
Net sales
Gross profit
Operating income
Income before income taxes
Net income
Net income per share (yen)
Capital expenditure
Depreciation for tangible fixed assets
R&D expenditure
Exchange rate (Yen/US$)
Exchange rate (Yen/EURO)
Three months ending
Half year ending
Year ending
June 30, 2004
Change
Sept. 30, 2004
Change
Sept. 30, 2004
Change
March 31, 2005
Change
Results
%
Forecast
%
Forecast
%
Forecast
%
436.5
189.1
39.3
41.3
24.8
33.69
18.6
15.9
24.3
109.65
132.17
-0.2
-1.9
2.3
10.7
11.4
-
458.4
197.6
38.6
33.1
18.9
25.59
18.3
18.0
25.6
105.00
130.00
1.7
1.2
-0.4
-2.7
-5.0
-
895.0
386.8
78.0
74.5
43.8
59.28
37.0
34.0
50.0
107.33
131.09
0.8
-0.3
1.0
4.3
3.6
-
1,810.0
785.0
175.0
165.0
95.0
128.58
74.5
69.0
100.0
106.16
130.54
1.7
2.5
16.7
15.3
3.5
-
3. Forecast of Consolidated Sales by Product Category
(Billions of yen)
Half year ending September 30, 2004
Change
Change
Forecast
Forecast(*)
%
%
<Office Equipment>
Imaging Solutions:
Digital Imaging Systems
Domestic
Overseas
Other Imaging Systems
Domestic
Overseas
Total Imaging Solutions
Domestic
Overseas
Network Input/Output Systems:
Printing Systems
Domestic
Overseas
Other Input/Output Systems
Domestic
Overseas
Total Network Input/Output Systems
Domestic
Overseas
Network System Solutions
Domestic
Overseas
Office Equipment Total
Domestic
Overseas
The Americas
Europe
Other
< Other Businesses >
Other Businesses
Domestic
Overseas
The Americas
Europe
Other
Grand Total
Domestic
Overseas
The Americas
Europe
Other
* Excluding foreign exchange impact
Year ending March 31, 2005
Change
Forecast
Forecast(*)
%
Change
%
275.3
114.2
161.1
83.7
30.2
53.5
359.1
144.4
214.7
-10.9
-8.5
-12.6
-20.9
-17.3
-22.9
-13.5
-10.5
-15.4
282.7
114.2
168.5
86.2
30.2
56.0
368.9
144.4
224.5
-8.6
-8.5
-8.6
-18.6
-17.3
-19.4
-11.1
-10.5
-11.6
537.0
225.0
312.0
157.3
59.5
97.8
694.4
284.5
409.9
-11.4
-11.4
-11.5
-20.2
-15.9
-22.7
-13.6
-12.4
-14.4
547.0
225.0
322.0
160.5
59.5
101.0
707.5
284.5
423.0
-9.8
-11.4
-8.6
-18.7
-15.9
-20.2
-12.0
-12.4
-11.7
307.6
130.1
177.5
18.4
1.5
16.9
326.0
131.6
194.4
98.9
95.5
3.4
784.1
371.5
412.6
164.7
199.7
48.1
31.8
29.6
33.4
-37.9
-45.3
-37.1
23.9
27.7
21.5
1.8
0.3
74.6
1.1
3.3
-0.8
-1.2
2.6
-11.4
315.6
130.1
185.5
19.1
1.5
17.6
334.7
131.6
203.1
99.1
95.5
3.6
802.7
371.5
431.2
181.3
200.9
49.0
35.2
29.6
39.4
-35.7
-45.3
-34.8
27.2
27.7
26.9
1.9
0.3
82.6
3.5
3.3
3.7
8.7
3.2
-9.9
654.7
277.3
377.4
45.1
2.7
42.4
699.9
280.0
419.9
198.1
190.5
7.6
1,592.4
755.0
837.4
324.5
412.0
100.8
28.6
27.1
29.7
-7.8
-45.8
-3.5
25.4
25.5
25.3
1.2
-0.4
69.4
2.2
2.2
2.3
-0.2
3.5
5.7
666.8
277.3
389.5
46.7
2.7
44.0
713.5
280.0
433.5
198.4
190.5
7.9
1,619.4
755.0
864.4
345.9
416.3
102.2
30.9
27.1
33.8
-4.7
-45.8
-0.0
27.8
25.5
29.4
1.3
-0.4
74.8
4.0
2.2
5.6
6.4
4.6
7.2
110.9
94.5
16.4
0.4
2.8
13.1
895.0
466.0
429.0
165.1
202.5
61.3
-1.5
6.2
-30.3
-47.6
26.7
-35.8
0.8
3.9
-2.4
-1.5
2.9
-18.1
111.2
94.5
16.7
0.5
2.9
13.3
913.9
466.0
447.9
181.8
203.8
62.3
-1.2
6.2
-29.1
-42.1
28.8
-35.0
2.9
3.9
1.9
8.4
3.5
-16.8
217.4
180.0
37.4
1.2
5.9
30.3
1,810.0
935.0
875.0
325.8
417.9
131.1
-2.3
2.8
-21.3
-3.5
38.0
-27.8
1.7
2.3
1.0
-0.2
3.9
-4.6
217.9
180.0
37.9
1.3
6.0
30.6
1,837.3
935.0
902.3
347.2
422.3
132.8
-2.1
2.8
-20.4
2.0
40.1
-27.2
3.2
2.3
4.2
6.4
4.9
-3.3
A2