January 30, 2007
QUARTERLY REPORT
Third Quarter Ended December 31, 2006
(Results for the Period from October 1, 2006 to December 31, 2006)
Performance Outline (Consolidated)
(1) Three Months Ended December 31, 2006 and 2005
(Billions of yen)
Three months ended Three months ended
Change
December 31, 2006 December 31, 2005
Domestic sales
Overseas sales
Net sales
Gross profit
Operating income
Income from continuing operations before income taxes
Net income
Exchange rate (Yen/US$)
Exchange rate (Yen/EURO)
Net income per share (yen)
Net income per share-diluted (yen)
Capital expenditures
Depreciation for tangible fixed assets
R&D expenditures
236.8
268.8
505.7
219.3
48.6
48.7
31.2
229.5
244.8
474.4
200.1
36.3
38.0
23.0
3.1%
9.8%
6.6%
9.6%
33.7%
28.3%
35.9%
117.82
151.92
117.24
139.41
0.58
12.51
42.83
42.66
31.34
-
11.49
-
17.6
18.2
27.9
21.2
17.6
27.2
-3.6
0.6
0.7
(2) Nine Months Ended December 31, 2006, 2005 and Year Ending March 31, 2007
Nine months ended
December 31, 2006
Nine months ended
December 31, 2005
(Results)
(Results)
Change
(Billions of yen)
Year ending
March 31, 2007 Change
(Forecast)
Domestic sales
Overseas sales
Net sales
Gross profit
Operating income
Income from continuing operations before income taxes
Net income
729.3
763.3
1,492.6
627.2
121.8
123.0
83.2
707.3
686.9
1,394.3
585.8
101.4
105.5
65.8
3.1%
11.1%
7.0%
7.1%
20.1%
16.6%
26.5%
1,002.0
1,065.0
2,067.0
858.3
172.0
170.0
107.5
3.7%
12.9%
8.3%
8.0%
15.8%
11.3%
10.8%
Exchange rate (Yen/US$)
Exchange rate (Yen/EURO)
116.21
147.97
112.04
136.92
4.17
11.05
115.91
147.22
2.65
9.36
Net income per share (yen)
Net income per share-diluted (yen)
114.18
114.01
89.74
-
24.44
-
147.36
146.20
15.03
-
Total assets
Shareholders' equity
Interest-bearing debt
2,205.5
1,036.1
468.0
1,990.8
929.5
397.4
214.7
106.6
70.5
-
-
47.0
46.7
0.3
-
-
1,420.31
1,265.83
154.48
-
-
73.5
-60.6
63.6
269.3
90.9
-91.2
-32.0
154.8
-17.3
30.6
95.7
114.5
-
-
56.8
52.0
84.4
79.4
48.7
82.1
-22.6
3.2
2.2
82.0
72.0
120.0
-20.0
4.5
9.6
Equity ratio (%)
Shareholders' equity per share (yen)
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of period
Capital expenditures
Depreciation for tangible fixed assets
R&D expenditures
Ricoh Company, Ltd.
* As a result of the sale of a business, the operating results and cash flows from the discontinued operations have been reclassified in accordance with
Statement of Financial Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets".
* Ricoh has no dilutive securities outstanding as of December 31, 2005 and there is no difference between bases and diluted net income per share. Therefore
net income per share-diluted for the three months and nine months ended December 31, 2005 are omitted.
* Ricoh bases the forecast estimates for the year ending March 31, 2007 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 of Ricoh group for the third quarter of fiscal year 2007 (the three months period from October 1 to
December 31, 2006) increased by 6.6% as compared to the previous corresponding period, to ¥505.7 billion. During this
quarter, the average yen exchange rates were ¥117.82 against the U.S. dollar (down ¥0.58) and ¥151.92 against the Euro
(down ¥12.51). Net sales would have increased by 4.0% excluding impact of such foreign currency exchange fluctuations.
As for Japan, sales of color PPCs (plain paper copiers), color MFPs (multifunctional printers) and laser printers increased.
Sales of support and service related to solution business continued to perform well. Meanwhile, sales of monochrome PPCs
and MFPs decreased as compared to the previous corresponding period due to a shift in customer demand to color products.
Sales in Industrial Products were almost the same as the previous corresponding period. Sales in Other, including digital
cameras increased. As a result, domestic net sales increased by 3.1% as compared to the previous corresponding period.
As for overseas, the increase in sales of PPCs, MFPs, and laser printers, especially color products contributed to the favorite
performance in each geographic area. As a result, net sales in overseas increased by 9.8% as compared to the previous
corresponding period. Excluding effects of foreign currency fluctuations, net sales in overseas would have increased by
4.8% as compared to the previous corresponding period.
Gross profit increased by 9.6% as compared the previous corresponding period. Gross profit as percentage of net sales
increased as compared the previous corresponding period to 43.4%. This increase in gross profit primarily reflects increase
in sales of value-added high-margin products such as new color products in each geographic area. Ricoh incurred large
amount of strategic expenses related to (1) research and development activities, (2) enhancement of its sales and marketing
organization structure and (3) investments in information technologies in connection with development of its core operating
systems. Although selling, general and administrative expenses (SGA) increased by 4.2% as compared to the previous
corresponding period, SGA as percentage of net sales decreased as compared to the previous corresponding period to
33.8%. As a result, operating income increased by 33.7% as compared to the previous corresponding period, to ¥48.6
billion.
As for other (income) expenses, both interest income and expenses increased due to rise in interest rate. Net effect of
interest income and expenses on profit was the almost same as the previous corresponding period. Other (income) expenses
decreased, since the foreign currency exchange gain and other, net in the previous corresponding period was higher
relatively. As a result, income from continuing operations before income taxes increased by 28.3% as compared to the
previous corresponding period, to ¥48.7 billion.
As for provision for income taxes, effective tax rate in this quarter decreased as compared to the previous corresponding
period, due to the temporal recognition of deferred income tax accompanied with integration of group companies in the
previous corresponding period. An increase in minority interests in earnings of subsidiaries and equity in earnings of
affiliates were due to increase in income of subsidiaries and affiliates. As a result, net income from continuing operations
increased by 38.3% as compared to the previous corresponding period, to ¥31.2 billion and net income increased by 35.9%
as compared to the previous corresponding period, to ¥31.2 billion.
2
*Conditions by Product Line
Office Solutions (Sales up 6.7% to ¥435.3 billion)
Net sales in the Imaging Solutions as our core business increased as compared to the previous corresponding period due
primarily to increase in sales of color PPCs, color MFPs and laser printers in Japan and overseas. Net sales in Network
System Solutions are almost the same as the previous corresponding period due to the increase in sales of support and
services mainly in Japan. As a result, net sales in the Office Solutions increased by 6.7% as compared to the previous
corresponding period, to ¥435.3 billion.
Imaging Solutions (Sales up 7.4% to ¥394.3 billion)
- Sales of color PPCs and color MFPs increased due primarily to introduction of new products in all geographic
regions such as Japan, the Americas, Europe and Other.
- In Japan, the decrease in monochrome PPCs and monochrome MFPs was sufficiently offset by the increase in
sales of color products due to a shift in customer demand to color products. In overseas, the increase in sales of
monochrome PPCs and monochrome MFPs contributed to the increase in overall sales of PPCs and MFPs.
- While the growth of sales of color and monochrome products differed from region to region, overall sales of laser
printers increased.
Network System Solutions (Sales up 0.4% to ¥40.9 billion)
- Net sales in Network System Solutions are the almost the same as the previous corresponding period due to the
increase in sales of support and services mainly in Japan and almost the same as the PC and servers.
On the whole, operating income in this segment increased by 20.2% as compared to the previous corresponding period,
to ¥61.7 billion, since the increase in sales and introduction of new products offset the large amount of strategic
expenses. Operating income as a percentage of net sales increased by 1.6 percentage points as compared to the previous
corresponding period to 14.2%.
Industrial Products (Sales up 2.9% to ¥30.5 billion)
Net sales in the Industrial Products increased by 2.9% as compared to the previous corresponding period, to ¥30.5
billion. While sales in the optical equipment business decreased as compared to the previous corresponding period due
primarily to sluggish demand, such decrease in sales in optical equipment business was sufficiently offset by the
increase in sales in thermal media, electric component, semiconductor and measuring equipment businesses. As a result,
operating income in this segment was improved to ¥0.6 billion from the operating loss ¥0.7 billion in the previous
corresponding period.
Other (Sales up 8.3% to ¥39.8 billion)
Net sales in the Other increased by 8.3% as compared to the previous corresponding period, to ¥39.8 billion due mainly
to the favorite performance of lease business. The operating income in this segment decreased to ¥0.2 billion. This
decrease was due to the sale of non-core business in the previous corresponding period.
*Cash Flows (Nine months ended December 31, 2006)
Net cash provided by operating activities decreased by ¥17.3 billion as compared to the previous corresponding period,
to ¥73.5 billion. Although the total of net income and depreciation increased and the balance of trade receivables
slightly decreased as compared to the end of the preceding fiscal year, the balance of inventories increased as compared
to the end of the preceding fiscal year.
Net cash used in investing activities decreased by ¥30.6 billion to ¥60.6 billion, due to the decrease in capital
investment. In the previous corresponding period Ricoh made large capital investments to the key R&D facilities. Ricoh
received the cash inflows from the sale of the content delivery service business.
As a result, free cash flows generated by operating and investing activities increased by ¥13.2 billion as compared to the
previous corresponding period, to ¥12.9 billion.
Net cash provided by financing activities was ¥63.6 billion due primarily to the proceeds from issuance of the
convertible bonds (¥55.2 billion, issued on December 7, 2006).
As a result, cash and cash equivalents at the end of this third quarter increased by ¥82.3 billion as compared to the end
of the preceding fiscal year, to ¥269.3 billion.
3
*Forecast for the entire fiscal year
Net sales for fiscal year 2007 is forecasted same as announced in October 2006, which results from net of its decreasing domestic
sales and its increasing overseas sales, and gross profit operating income, income from continuing operations and net income are
revised upward, based on the result of the third quarter's performance, the latest competition and currency rate. Exchange rate of
¥115.00 against the U.S. dollar and of ¥145.00 in the fourth quarter are assumed.
Almost all necessary procedures for the acquisition of European business from Danka Business Systems PLC (announced on
October 12, 2006) have been taken. In near future, this acquisition will be completed.
Influence of the formation (planned in the next April to June) of a joint venture with IBM Corporation on the Ricoh's performance
for fiscal year 2007 will be immaterial, as announced on January 25, 2007.
Our performance forecasts for fiscal 2007 are as follows:
Exchange rate assumptions for the fiscal year ending March 31, 2007
US$ 1 = ¥115.91 (¥113.26 in previous fiscal year)
EURO 1 = ¥147.22 (¥137.86 in previous fiscal year)
(Billions of yen)
Year ending
March 31, 2007
(Forecast)
Domestic sales
Overseas sales
Net sales
Gross profit
Operating income
Income from continuing operations
before income taxes
Net income
Year ended
March 31, 2006
(Results)
Change
1,002.0
1,065.0
2,067.0
858.3
172.0
966.2
943.0
1,909.2
795.0
148.5
3.7%
12.9%
8.3%
8.0%
15.8%
170.0
107.5
152.7
97.0
11.3%
10.8%
* As a result of the sale of a business, the operating results and cash flows from the discontinued operations have been
reclassified in accordance with Statement of Financial Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment
or Disposal of Long-Lived Assets".
* In accordance with Japanese regulations, Ricoh has issued forecast for its financial results for the fiscal year ending March 31,
2007. 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.
4
Ricoh Company, Ltd. and Consolidated Subsidiaries
Financial Highlights for the Third Quarter Ended December 31, 2006 (U.S. GAAP Financial Information)
1. Items Relating to Third 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: 5 additions; 2 removals
Companies accounted for by the equity method: 2 removals
2. Results for the Period from October 1, 2006 to December 31, 2006
(1) Operating Results
Three months ended
Three months ended
December 31, 2006
December 31, 2005
Net sales
505,712
474,479
(% change from the previous corresponding period)
6.6
7.3
Operating income
48,652
36,399
(% change from the previous corresponding period)
33.7
-3.7
Income from continuing operations before income taxes
48,791
38,020
(% change from the previous corresponding period)
28.3
12.6
Net income
31,252
23,000
(% change from the previous corresponding period)
35.9
3.5
Net income per share-basic (yen)
42.83
31.34
Net income per share-diluted (yen)
42.66
Note: Equity in earnings of affiliates: ¥910 million (¥762 million in previous corresponding period)
(2) Financial Position
Total assets
Shareholders' equity
Equity ratio (%)
Equity per share (yen)
December 31, 2006
2,205,546
1,036,129
47.0
1,420.31
December 31, 2005
1,990,802
929,508
46.7
1,265.83
(Millions of yen)
March 31, 2006
2,041,183
960,245
47.0
1,316.21
Nine months ended
December 31, 2006
73,548
-60,610
63,675
269,361
Nine months ended
December 31, 2005
90,940
-91,247
-32,063
154,840
(Millions of yen)
Year ended
March 31, 2006
173,479
-120,051
-59,989
187,055
Cash Flows
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of period
(Millions of yen)
Year ended
March 31, 2006
1,909,238
5.6
148,584
13.3
152,766
16.6
97,057
16.7
132.33
-
3. Forecast of Operating Results from April 1, 2006 to March 31, 2007
Net sales
Operating income
Income before income taxes
Net income
Note: Net income per share (Consolidated)
¥147.36
(Millions of yen)
2,067,000
172,000
170,000
107,500
Notes:
* As a result of the sale of a business, the operating results and cash flows from the discontinued operations have been reclassified in
accordance with Statement of Financial Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment or Disposal of LongLived Assets".
* In accordance with Japanese regulations, Ricoh has issued forecast for its financial results for the fiscal year ending March 31, 2007.
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
(Three months ended December 31, 2006 and 2005)
(Millions of yen)
Three months ended Three months ended
December 31, 2006
December 31, 2005
505,712
474,479
286,344
274,312
56.6
57.8
219,368
200,167
43.4
42.2
170,716
163,768
33.8
34.5
48,652
36,399
9.6
7.7
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 from continuing operations 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 (%)
Income from continuing operations
Percentage of net sales (%)
Income from discontinued operations, net of tax
Percentage of net sales (%)
Net income
Percentage of net sales (%)
Reference : Exchange rate
US$ 1
EURO 1
1,465
0.3
1,885
0.4
-559
-0.1
887
0.2
1,450
0.3
-2,184
-0.4
48,791
9.6
17,104
3.3
1,345
0.3
910
0.2
31,252
6.2
31,252
6.2
38,020
8.0
15,190
3.2
999
0.2
762
0.2
22,593
4.8
407
0.0
23,000
4.8
¥117.82
¥151.92
¥117.24
¥139.41
(Nine months ended December 31, 2006 and 2005 and Year ended March 31, 2006)
Nine months ended
Nine months ended
December 31, 2006
December 31, 2005
Net sales
1,492,634
1,394,348
Cost of sales
865,350
808,455
Percentage of net sales (%)
58.0
58.0
Gross Profit
627,284
585,893
Percentage of net sales (%)
42.0
42.0
Selling, general and administrative expenses
505,469
484,482
Percentage of net sales (%)
33.8
34.7
Operating income
121,815
101,411
Percentage of net sales (%)
8.2
7.3
Other (income) expense
Interest and dividend income
3,446
2,271
Percentage of net sales (%)
0.2
0.2
Interest expense
5,123
3,646
Percentage of net sales (%)
0.3
0.3
Other, net
-2,921
-5,493
Percentage of net sales (%)
-0.1
-0.4
Income from continuing operations before income taxes
equity income and minority interests
123,059
105,529
Percentage of net sales (%)
8.2
7.6
Provision for income taxes
42,984
39,202
Percentage of net sales (%)
2.8
2.8
Minority interests in earnings of subsidiaries
4,226
3,689
Percentage of net sales (%)
0.3
0.3
Equity in earnings of affiliates
1,948
1,697
Percentage of net sales (%)
0.1
0.1
77,797
64,335
Income from continuing operations
Percentage of net sales (%)
5.2
4.6
5,500
1,532
Income from discontinued operations, net of tax
Percentage of net sales (%)
0.4
0.1
Net income
83,297
65,867
Percentage of net sales (%)
5.6
4.7
Reference : Exchange rate
US$ 1
EURO 1
¥116.21
¥147.97
¥112.04
¥136.92
Change
31,233
12,032
%
6.6
4.4
19,201
9.6
6,948
4.2
12,253
33.7
578
65.2
435
30.0
1,625
-
10,771
28.3
1,914
12.6
346
34.6
148
19.4
8,659
38.3
-407
-
8,252
35.9
Change
98,286
56,895
%
7.0
7.0
41,391
7.1
20,987
4.3
20,404
20.1
1,175
51.7
1,477
40.5
2,572
-
17,530
16.6
3,782
9.6
537
14.6
251
14.8
13,462
20.9
3,968
259.0
17,430
26.5
(Millions of yen)
Year ended
March 31, 2006
1,909,238
1,114,238
58.4
795,000
41.6
646,416
33.8
148,584
7.8
2,896
0.2
5,244
0.3
-6,530
-0.3
152,766
8.0
56,165
2.9
4,185
0.2
2,606
0.1
95,022
5.0
2,035
0.1
97,057
5.1
¥113.26
¥137.86
Note:
* As a result of the sale of a business, the operating results from the discontinued operations have been reclassified in accordance with Statement
of Financial Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets".
6
2-1. Consolidated Sales by Product Category
(Three months ended December 31, 2006 and 2005)
Three months ended
Three months ended
December 31, 2006
December 31, 2005
<Office Solutions>
Imaging Solutions
394,391
367,207
Percentage of net sales (%)
78.0
77.4
Network System Solutions
40,924
40,779
Percentage of net sales (%)
8.1
8.6
Total Office Solutions
435,315
407,986
Percentage of net sales (%)
86.1
86.0
<Industrial Products>
Industrial Products
30,570
29,715
Percentage of net sales (%)
6.0
6.3
<Other>
Other
39,827
36,778
Percentage of net sales (%)
7.9
7.7
Grand Total
505,712
474,479
Percentage of net sales (%)
100.0
100.0
Reference : Exchange rate
US$ 1
EURO 1
¥117.82
¥151.92
Change
%
27,184
7.4
145
0.4
27,329
6.7
855
2.9
3,049
8.3
31,233
6.6
¥117.24
¥139.41
(Nine months ended December 31, 2006 and 2005 and Year ended March 31, 2006)
Nine months ended
Nine months ended
December 31, 2006
December 31, 2005
<Office Solutions>
Imaging Solutions
1,138,017
1,060,337
Percentage of net sales (%)
76.2
76.0
Network System Solutions
135,388
133,930
Percentage of net sales (%)
9.1
9.7
Total Office Solutions
1,273,405
1,194,267
Percentage of net sales (%)
85.3
85.7
<Industrial Products>
Industrial Products
98,826
88,174
Percentage of net sales (%)
6.6
6.3
<Other>
Other
120,403
111,907
Percentage of net sales (%)
8.1
8.0
Grand Total
1,492,634
1,394,348
Percentage of net sales (%)
100.0
100.0
Reference : Exchange rate
US$ 1
EURO 1
(Millions of yen)
¥116.21
¥147.97
Change
(Millions of yen)
Year ended
March 31, 2006
%
77,680
7.3
1,458
1.1
79,138
6.6
10,652
12.1
120,636
6.3
8,496
7.6
98,286
7.0
151,374
7.9
1,909,238
100.0
¥112.04
¥136.92
1,446,635
75.8
190,593
10.0
1,637,228
85.8
¥113.26
¥137.86
Notes:
* As a result of the sale of a business, the operating results from the discontinued operations have been reclassified in accordance with Statement of Financial Accounting Standards
("SFAS") No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets".
* Each category includes the following product line:
Imaging Solutions
Network System Solutions
Industrial Products
Other
Digital PPCs, color PPCs, digital duplicators, facsimile machines, analog PPCs, diazo copiers, scanners,
MFPs(multifunctional printers), laser printers and software
Personal computers, servers, network systems and network related software
Thermal media, optical equipment, semiconductor devices, electronic components and measuring equipment
Optical discs and digital cameras
7
2-2. Consolidated Sales by Geographic Area
(Three months ended December 31, 2006 and 2005)
Three months ended
December 31, 2006
<Domestic>
236,817
Percentage of net sales (%)
46.8
<Overseas>
268,895
Percentage of net sales (%)
53.2
The Americas
105,785
Percentage of net sales (%)
20.9
Europe
129,798
Percentage of net sales (%)
25.7
Other
33,312
Percentage of net sales (%)
6.6
Grand Total
505,712
Percentage of net sales (%)
100.0
Reference : Exchange rate
US$ 1
EURO 1
(Millions of yen)
Three months ended
December 31, 2005
229,594
48.4
244,885
51.6
98,176
20.7
115,109
24.3
31,600
6.6
474,479
100.0
¥117.82
¥151.92
%
3.1
24,010
9.8
7,609
7.8
14,689
12.8
1,712
5.4
31,233
6.6
¥117.24
¥139.41
(Nine months ended December 31, 2006 and 2005 and Year ended March 31, 2006)
Nine months ended
Nine months ended
December 31, 2006
December 31, 2005
<Domestic>
729,308
707,360
Percentage of net sales (%)
48.9
50.7
<Overseas>
763,326
686,988
Percentage of net sales (%)
51.1
49.3
The Americas
309,369
282,091
20.2
Percentage of net sales (%)
20.7
Europe
356,302
316,508
Percentage of net sales (%)
23.9
22.7
Other
97,655
88,389
Percentage of net sales (%)
6.5
6.4
Grand Total
1,492,634
1,394,348
Percentage of net sales (%)
100.0
100.0
Reference : Exchange rate
US$ 1
EURO 1
Change
7,223
¥116.21
¥147.97
¥112.04
¥136.92
Change
21,948
%
3.1
76,338
11.1
27,278
9.7
39,794
12.6
9,266
10.5
98,286
7.0
(Millions of yen)
Year ended
March 31, 2006
966,224
50.6
943,014
49.4
387,412
20.3
434,800
22.8
120,802
6.3
1,909,238
100.0
¥113.26
¥137.86
Note:
* As a result of the sale of a business, the operating results from the discontinued operations have been reclassified in accordance with Statement of Financial Accounting Standards
("SFAS") No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets".
8
3. Consolidated Balance Sheets
(December 31, 2006 and March 31, 2006)
Assets
December 31, 2006
Current Assets
Cash and time deposits
Trade receivables
Marketable securities
Inventories
Other current assets
Total Current Assets
Fixed Assets
Tangible fixed assets
Finance receivables
Other Investments
Total Fixed Assets
Total Assets
Note:
Contents of cash and time deposits:
Cash and cash equivalents
Time deposits
March 31, 2006
270,821
655,105
179
207,369
60,451
1,193,925
188,525
630,501
162
169,245
55,110
1,043,543
82,296
24,604
17
38,124
5,341
150,382
268,572
429,401
313,648
1,011,621
2,205,546
268,243
415,435
313,962
997,640
2,041,183
329
13,966
-314
13,981
164,363
269,361
1,460
187,055
1,470
Liabilities and Shareholders’ Investment
December 31, 2006
Current Liabilities
Trade payables
Short-term borrowings
Other current liabilities
Total Current Liabilities
Fixed Liabilities
Long-term indebtedness
Accrued pension and severance costs
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 (losses) 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
March 31, 2006
(Millions of yen)
Change
329,575
221,210
161,056
711,841
339,152
185,651
159,225
684,028
-9,577
35,559
1,831
27,813
246,836
97,678
56,558
401,072
1,112,913
56,504
195,626
97,020
51,374
344,020
1,028,048
52,890
51,210
658
5,184
57,052
84,865
3,614
135,364
186,452
730,435
15,106
-31,228
1,036,129
2,205,546
135,364
186,450
665,394
4,099
-31,062
960,245
2,041,183
2
65,041
11,007
-166
75,884
164,363
6,235
-6,579
-36
15,486
8,928
-7,643
157
2,657
-2,693
1,064
-193
12,829
December 31, 2006
¥119.11
¥156.50
9
(Millions of yen)
Change
March 31, 2006
¥117.47
¥142.81
4. Consolidated Statements of Shareholders' Investment
Nine months ended December 31, 2006
(Millions of yen)
Common
stock
Beginning balance
Gain on disposal of treasury stock
Dividends declared and approved
Comprehensive income (loss)
Net income
Net unrealized holding losses
on available-for-sale securities
Pension liability adjustments
Net unrealized losses on derivative instruments
Cumulative translation adjustments
Total comprehensive income (loss)
Purchase of treasury stock, net
Ending balance
Additional
paid-in
capital
135,364
186,450
2
Retained
earnings
665,394
Accumulated
other
comprehensive
income (loss)
4,099
Treasury
stock
-31,062
-18,256
960,245
2
-18,256
83,297
83,297
-2,693
1,064
-193
12,829
135,364
186,452
730,435
15,106
-166
-31,228
Nine months ended December 31, 2005
Additional
paid-in
capital
135,364
186,551
-101
Retained
earnings
584,515
Accumulated
other
comprehensive
income (loss)
-21,963
Treasury
stock
-21,469
-16,178
65,867
65,867
3,064
699
-50
12,634
135,364
186,450
Total
Shareholders'
Investment
862,998
-101
-16,178
634,204
-5,616
575
-20,894
Year ended March 31, 2006
3,064
699
-50
12,634
82,214
575
929,508
(Millions of yen)
Common
stock
Beginning balance
Loss on disposal of treasury stock
Dividends declared and approved
Comprehensive income (loss)
Net income
Net unrealized holding gains
on available-for-sale securities
Pension liability adjustments
Net unrealized gains on derivative instruments
Cumulative translation adjustments
Total comprehensive income (loss)
Purchase of treasury stock, net
Ending balance
-2,693
1,064
-193
12,829
94,304
-166
1,036,129
(Millions of yen)
Common
stock
Beginning balance
Loss on disposal of treasury stock
Dividends declared and approved
Comprehensive income (loss)
Net income
Net unrealized holding gains
on available-for-sale securities
Pension liability adjustments
Net unrealized losses on derivative instruments
Cumulative translation adjustments
Total comprehensive income (loss)
Purchase of treasury stock, net
Ending balance
Total
Shareholders'
Investment
Additional
paid-in
capital
135,364
186,551
-101
Retained
earnings
584,515
Accumulated
other
comprehensive
income (loss)
-21,963
Treasury
stock
-21,469
-16,178
862,998
-101
-16,178
97,057
97,057
4,137
7,009
40
14,876
135,364
186,450
10
Total
Shareholders'
Investment
665,394
4,099
-9,593
-31,062
4,137
7,009
40
14,876
123,119
-9,593
960,245
5. Consolidated Statements of Cash Flows
(Nine months ended December 31, 2006 and 2005 and Year ended March 31, 2006)
Nine months ended Nine months ended
December 31, 2006 December 31, 2005
I. Cash Flows from Operating Activities:
Net income
83,297
65,867
Income from discontinued operations, net of tax
-5,500
-1,532
Income from continuing operations
77,797
64,335
Adjustments to reconcile net income to net cash
provided by operating activities—
Depreciation and amortization
65,280
61,997
Equity in earnings of affiliates, net of dividends received
-1,106
-872
Deferred income taxes
-1,540
-4,202
Loss on disposal and sales of tangible fixed assets
2,775
1,794
Pension and severance costs, less payments
-1,138
2,220
Changes in assets and liabilities—
Decrease in trade receivables
2,332
20,232
(Increase) decrease in inventories
-30,761
913
Increase in finance receivables
-15,705
-25,204
Decrease in trade payables
-13,571
-31,436
(Decrease) increase in accrued income taxes and
accrued expenses and other
-3,634
-2,745
Other, net
-7,181
3,908
Net cash provided by operating activities
73,548
90,940
II. Cash Flows from Investing Activities:
Proceeds from sales of property, plant and equipment
404
331
Expenditures for tangible fixed assets
-56,760
-79,263
Payments for purchases of available-for-sale securities
-73,155
-114,519
Proceeds from sales of available-for-sale securities
72,205
117,417
(Increase) decrease in time deposits, net
26
-331
Proceeds from sales of discontinued operation
12,000
Other, net
-15,330
-14,882
Net cash used in investing activities
-60,610
-91,247
III. Cash Flows from Financing Activities:
Proceeds from long-term indebtedness
54,782
61,160
Repayment of long-term indebtedness
-25,958
-67,833
Increase in short-term borrowings, net
7,064
43,887
Proceeds from issuance of long-term debt securities
65,274
Repayment of long-term debt securities
-18,000
-52,000
Dividend paid
-18,256
-16,178
Payment for purchase of treasury stock
-593
-487
Other, net
-638
-612
Net cash provided by (used in) financing activities
63,675
-32,063
IV. Net Increase in Cash and Cash Equivalents from discontinued operations
825
2,579
V. Effect of Exchange Rate Changes on Cash and Cash Equivalents
4,868
-2,226
VI. Net Increase (Decrease) in Cash and Cash Equivalents
82,306
-32,017
VII. Cash and Cash Equivalents at Beginning of Year
187,055
186,857
VIII. Cash and Cash Equivalents at End of Period
269,361
154,840
(Millions of yen)
Year ended
March 31, 2006
97,057
-2,035
95,022
84,089
-1,431
-4,692
920
3,340
13,411
3,726
-30,029
-4,442
2,505
11,060
173,479
3,085
-101,788
-138,607
141,620
-136
-24,225
-120,051
63,751
-93,752
39,618
10,000
-52,000
-16,178
-10,653
-775
-59,989
3,376
3,383
198
186,857
187,055
Note:
* As a result of the sale of a business, the operating results from the discontinued operations have been reclassified in accordance with Statement of Financial Accounting
Standards ("SFAS") No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets".
11
6. Segment Information
(1) Industry Segment Information
(Three months ended December 31, 2006 and 2005)
(Millions of yen)
Three months ended
December 31, 2006
Office Solutions:
Net sales:
Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income
435,315
435,315
373,589
61,726
407,986
407,986
356,613
51,373
14.2
12.6
30,570
1,313
31,883
31,262
621
29,715
658
30,373
31,074
-701
1.9
-2.3
39,827
39,827
39,570
257
36,778
36,778
34,983
1,795
0.6
4.9
-1,313
-1,313
Change
%
27,329
27,329
16,976
10,353
6.7
4.8
20.2
855
655
1,510
188
1,322
2.9
99.5
5.0
0.6
-
3,049
3,049
4,587
-1,538
8.3
8.3
13.1
-85.7
-658
-658
-655
-655
-
-1,268
13,907
12,639
-13,952
-662
16,072
15,410
-16,068
-606
-2,165
-2,771
2,116
-
505,712
505,712
457,060
48,652
474,479
474,479
438,080
36,399
31,233
31,233
18,980
12,253
6.6
9.6
7.7
Operating income on sales in Office Solutions (%)
Industrial Products:
Net sales:
Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income
Operating income on sales in Industrial Products (%)
Other:
Net sales:
Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income
Operating income on sales in Other (%)
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
Three months ended
December 31, 2005
Operating income on consolidated net sales (%)
Note:
* As a result of the sale of a business, the operating results from the discontinued operations have been reclassified in accordance with Statement of
Financial Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets".
12
6.7
6.6
4.3
33.7
(Millions of yen)
(Nine months ended December 31, 2006 and 2005 and Year ended March 31, 2006)
Nine months ended
December 31, 2006
Office Solutions:
Net sales:
Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income
12.6
11.9
98,826
3,638
102,464
100,949
1,515
88,174
1,902
90,076
90,948
-872
1.5
-1.0
120,403
120,403
118,248
2,155
111,907
111,907
109,879
2,028
1.8
1.8
-3,638
-3,638
-1,902
-1,902
-1,736
-1,736
-
-2,564
-2,564
-3,638
42,351
38,713
-42,351
-1,941
41,589
39,648
-41,550
-1,697
762
-935
-801
-
-2,594
56,169
53,575
-56,139
1,492,634
1,492,634
1,370,819
121,815
1,394,348
1,394,348
1,292,937
101,411
98,286
98,286
77,882
20,404
7.0
1,909,238
1,909,238
1,760,654
148,584
8.2
7.3
Operating income on sales in Other (%)
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 (%)
79,138
79,138
60,447
18,691
Year ended
March 31, 2006
%
1,194,267
1,194,267
1,052,462
141,805
Operating income on sales in Industrial Products (%)
Other:
Net sales:
Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income
Change
1,273,405
1,273,405
1,112,909
160,496
Operating income on sales in Office Solutions (%)
Industrial Products:
Net sales:
Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income
Nine months ended
December 31, 2005
6.6
6.6
5.7
13.2
1,637,228
1,637,228
1,434,279
202,949
12.4
10,652
1,736
12,388
10,001
2,387
12.1
91.3
13.8
11.0
-
120,636
2,564
123,200
124,108
-908
-0.7
8,496
8,496
8,369
127
7.6
7.6
7.6
6.3
151,374
151,374
148,692
2,682
1.8
7.0
6.0
20.1
7.8
Note:
* As a result of the sale of a business, the operating results from the discontinued operations have been reclassified in accordance with Statement of Financial Accounting Standards
("SFAS") No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets".
13
(2) Geographic Segment Information
(Three months ended December 31, 2006 and 2005)
(Millions of yen)
Three months ended
December 31, 2006
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(%)
Three months ended
December 31, 2005
243,239
132,630
375,869
342,864
33,005
235,852
104,330
340,182
313,356
26,826
8.8
7.9
105,618
795
106,413
102,834
3,579
98,122
5,405
103,527
101,728
1,799
3.4
1.7
130,042
1,366
131,408
122,581
8,827
116,178
869
117,047
112,612
4,435
6.7
3.8
26,813
42,843
69,656
64,700
4,956
24,327
25,335
49,662
46,029
3,633
7.1
7.3
-177,634
-177,634
-175,919
-1,715
Change
%
7,387
28,300
35,687
29,508
6,179
3.1
27.1
10.5
9.4
23.0
7,496
-4,610
2,886
1,106
1,780
7.6
-85.3
2.8
1.1
98.9
13,864
497
14,361
9,969
4,392
11.9
57.2
12.3
8.9
99.0
2,486
17,508
19,994
18,671
1,323
10.2
69.1
40.3
40.6
36.4
-135,939
-135,939
-135,645
-294
-41,695
-41,695
-40,274
-1,421
-
505,712
505,712
457,060
48,652
474,479
474,479
438,080
36,399
31,233
31,233
18,980
12,253
6.6
9.6
7.7
6.6
4.3
33.7
Note:
* As a result of the sale of a business, the operating results from the discontinued operations have been
reclassified in accordance with Statement of Financial Accounting Standards ("SFAS") No. 144, "Accounting for
the Impairment or Disposal of Long-Lived Assets".
14
(Nine months ended December 31, 2006 and 2005 and Year ended March 31, 2006)
Nine months ended
December 31, 2006
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(%)
(Millions of yen)
Nine months ended
December 31, 2005
Change
19,349
70,019
89,368
76,936
12,432
Year ended
March 31, 2006
%
747,668
378,662
1,126,330
1,041,717
84,613
728,319
308,643
1,036,962
964,781
72,181
2.7
22.7
8.6
8.0
17.2
992,945
413,087
1,406,032
1,310,233
95,799
7.5
7.0
309,178
2,526
311,704
299,175
12,529
280,441
7,158
287,599
279,335
8,264
4.0
2.9
356,865
3,106
359,971
341,558
18,413
315,747
3,315
319,062
304,660
14,402
5.1
4.5
78,923
115,245
194,168
180,387
13,781
69,841
73,354
143,195
132,963
10,232
7.1
7.1
-499,539
-499,539
-492,018
-7,521
-392,470
-392,470
-388,802
-3,668
-107,069
-107,069
-103,216
-3,853
-
-529,211
-529,211
-530,311
1,100
1,492,634
1,492,634
1,370,819
121,815
1,394,348
1,394,348
1,292,937
101,411
98,286
98,286
77,882
20,404
7.0
1,909,238
1,909,238
1,760,654
148,584
8.2
7.3
6.8
28,737
-4,632
24,105
19,840
4,265
10.2
-64.7
8.4
7.1
51.6
385,746
7,630
393,376
378,108
15,268
3.9
41,118
-209
40,909
36,898
4,011
13.0
-6.3
12.8
12.1
27.9
434,304
4,449
438,753
417,341
21,412
4.9
9,082
41,891
50,973
47,424
3,549
13.0
57.1
35.6
35.7
34.7
96,243
104,045
200,288
185,283
15,005
7.5
7.0
6.0
20.1
7.8
Note:
* As a result of the sale of a business, the operating results from the discontinued operations have been reclassified in accordance with
Statement of Financial Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets".
15
-APPENDIX- (Third Quarter Ended December 31, 2006)
1. Consolidated Quarterly Performance Outline
Fiscal 2007
(Millions of yen)
1Q
Net sales
Gross profit
Operating income
Income from continuing operations
before income taxes
Net income
Net income per share (yen)
Net income per share-diluted (yen)
Total assets
Shareholders' equity
Shareholders' equity per share (yen)
Change(%)
2Q
Change(%)
3Q
Change(%)
484,576
202,565
40,647
7.3
4.7
11.7
502,346
205,351
32,516
7.2
6.8
13.6
505,712
219,368
48,652
6.6
9.6
33.7
38,704
29,125
39.92
2,055,138
980,225
1,343.70
4.0
22.8
-
35,564
22,920
31.43
2,097,763
1,008,412
1,382.14
17.3
19.7
-
48,791
31,252
42.83
42.66
2,205,546
1,036,129
1,420.31
28.3
35.9
-
Fiscal 2006
(Millions of yen)
1Q
Net sales
Gross profit
Operating income
Income from continuing operations
before income taxes
Net income
Net income per share (yen)
Net income per share-diluted (yen)
Total assets
Shareholders' equity
Shareholders' equity per share (yen)
Change(%)
2Q
Change(%)
3Q
Change(%)
4Q
Change(%)
451,465
193,517
36,389
3.8
3.0
-5.0
468,404
192,209
28,623
7.0
10.9
66.3
474,479
200,167
36,399
7.3
4.8
-3.7
514,890
209,107
47,173
4.6
6.1
24.7
37,198
23,723
32.32
1,899,986
879,665
1,198.48
-7.5
-4.7
-
30,311
19,144
26.08
1,948,587
905,674
1,233.08
72.4
75.2
-
38,020
23,000
31.34
1,990,802
929,508
1,265.83
12.6
3.5
-
47,237
31,190
42.59
2,041,183
960,245
1,316.21
19.8
24.3
-
Note:
* Fiscal year refers to Ricoh's fiscal year ended March 31.
* As a result of the sale of a business, the operating results and cash flows from the discontinued operations have been reclassified in accordance with
Statement of Financial Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets".
* Ricoh has no dilutive securities outstanding in fiscal 2006 and in the first half of fiscal 2007, and there is no difference between bases and diluted net
income per share. Therefore net income per share-diluted except for third quarter of fiscal 2007 are omitted.
A1
2. Consolidated Sales by Product Category
(Three months ended December 31, 2006 and 2005)
<Office Solutions>
Imaging Solutions
Percentage of net sales (%)
Domestic
Overseas
Network System Solutions
Percentage of net sales (%)
Domestic
Overseas
Office Solutions Total
Percentage of net sales (%)
Domestic
Overseas
The Americas
Europe
Other
<Industrial Products>
Industrial Products
Percentage of net sales (%)
Domestic
Overseas
The Americas
Europe
Other
<Other>
Other
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 (%)
Reference: Exchange rate
US$ 1
EURO 1
(Millions of yen)
Three months ended
Three months ended
December 31, 2006
December 31, 2005
394,391
78.0
147,470
246,921
40,924
8.1
38,681
2,243
435,315
86.1
186,151
249,164
102,116
122,756
24,292
367,207
77.4
143,304
223,903
40,779
8.6
38,396
2,383
407,986
86.0
181,700
226,286
93,969
109,300
23,017
30,570
6.0
17,487
13,083
3,137
4,650
5,296
29,715
6.3
17,662
12,053
3,921
4,073
4,059
39,827
7.9
33,179
6,648
532
2,392
3,724
505,712
100.0
236,817
46.8
268,895
53.2
105,785
20.9
129,798
25.7
33,312
6.6
36,778
7.7
30,232
6,546
286
1,736
4,524
474,479
100.0
229,594
48.4
244,885
51.6
98,176
20.7
115,109
24.3
31,600
6.6
¥117.82
¥151.92
¥117.24
¥139.41
Change excluding
Change
%
exchange impact
%
27,184
7.4
15,753
4.3
4,166
23,018
145
2.9
10.3
0.4
4,166
11,587
-26
2.9
5.2
-0.1
285
-140
27,329
0.7
-5.9
6.7
285
-311
15,727
0.7
-13.1
3.9
4,451
22,878
8,147
13,456
1,275
2.4
10.1
8.7
12.3
5.5
4,451
11,276
7,526
3,478
272
2.4
5.0
8.0
3.2
1.2
855
2.9
527
1.8
-175
1,030
-784
577
1,237
-1.0
8.5
-20.0
14.2
30.5
-175
702
-704
236
1,170
-1.0
5.8
-18.0
5.8
28.8
3,049
8.3
2,824
7.7
2,947
102
246
656
-800
31,233
9.7
1.6
86.0
37.8
-17.7
6.6
2,947
-123
241
466
-830
19,078
9.7
-1.9
84.3
26.8
-18.3
4.0
7,223
3.1
7,223
3.1
24,010
9.8
11,855
4.8
7,609
7.8
7,063
7.2
14,689
12.8
4,180
3.6
1,712
5.4
612
1.9
¥0.58
¥12.51
Notes:
* As a result of the sale of a business, the operating results and cash flows from the discontinued operations have been reclassified in accordance with Statement of Financial
Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets".
* 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, PC servers, network systems and network related software
Industrial Products
Thermal media, optical equipments, semiconductors, electronic component and measuring equipments
Other
Optical discs and digital camera
A2
(Nine months ended December 31, 2006 and 2005 and Year ended March 31, 2006)
<Office Solutions>
Imaging Solutions
Percentage of net sales (%)
Domestic
Overseas
Network System Solutions
Percentage of net sales (%)
Domestic
Overseas
Office Solutions Total
Percentage of net sales (%)
Domestic
Overseas
The Americas
Europe
Other
<Industrial Products>
Industrial Products
Percentage of net sales (%)
Domestic
Overseas
The Americas
Europe
Other
<Other>
Other
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 (%)
Reference: Exchange rate
US$ 1
EURO 1
Nine months ended
Nine months ended
December 31, 2006
December 31, 2005
1,138,017
76.2
441,862
696,155
135,388
9.1
128,328
7,060
1,273,405
85.3
570,190
703,215
293,046
336,929
73,240
1,060,337
76.0
432,545
627,792
133,930
9.7
127,380
6,550
1,194,267
85.7
559,925
634,342
268,342
300,364
65,636
98,826
6.6
55,984
42,842
15,228
14,031
13,583
120,403
8.1
103,134
17,269
1,095
5,342
10,832
1,492,634
100.0
729,308
48.9
763,326
51.1
309,369
20.7
356,302
23.9
97,655
6.5
¥116.21
¥147.97
(Millions of yen)
Change excluding
Change
%
Year ended
exchange impact
%
77,680
7.3
38,884
3.7
9,317
68,363
1,458
2.2
10.9
1.1
9,317
29,567
916
2.2
4.7
0.7
948
510
79,138
0.7
7.8
6.6
948
-32
39,800
0.7
-0.5
3.3
10,265
68,873
24,704
36,565
7,604
1.8
10.9
9.2
12.2
11.6
10,265
29,535
14,187
11,535
3,813
1.8
4.7
5.3
3.8
5.8
88,174
6.3
53,740
34,434
12,142
11,546
10,746
10,652
12.1
8,937
10.1
2,244
8,408
3,086
2,485
2,837
4.2
24.4
25.4
21.5
26.4
2,244
6,693
2,540
1,559
2,594
4.2
19.4
20.9
13.5
24.1
111,907
8.0
93,695
18,212
1,607
4,598
12,007
1,394,348
100.0
707,360
50.7
686,988
49.3
282,091
20.2
316,508
22.7
88,389
6.4
8,496
7.6
7,762
6.9
9,439
-943
-512
744
-1,175
98,286
10.1
-5.2
-31.9
16.2
-9.8
7.0
9,439
-1,677
-545
350
-1,482
56,499
10.1
-9.2
-33.9
7.6
-12.3
4.1
21,948
3.1
21,948
3.1
76,338
11.1
34,551
5.0
27,278
9.7
16,182
5.7
39,794
12.6
13,444
4.2
9,266
10.5
4,925
5.6
¥112.04
¥136.92
March 31, 2006
1,446,635
75.8
585,363
861,272
190,593
10.0
181,149
9,444
1,637,228
85.8
766,512
870,716
368,184
412,550
89,982
120,636
6.3
72,379
48,257
17,391
16,049
14,817
151,374
7.9
127,333
24,041
1,837
6,201
16,003
1,909,238
100.0
966,224
50.6
943,014
49.4
387,412
20.3
434,800
22.8
120,802
6.3
¥4.17
¥11.05
Notes:
* As a result of the sale of a business, the operating results and cash flows from the discontinued operations have been reclassified in accordance with Statement of Financial
Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets".
* 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, PC servers, network systems and network related software
Industrial Products
Thermal media, optical equipments, semiconductors, electronic component and measuring equipments
Other
Optical discs and digital camera
A3
¥113.26
¥137.86
3. Forecast of Consolidated Performance
(Billions of yen)
Half year ended
Net sales
Gross profit
Operating income
Income from continuing operations
before income taxes
Net income
Net income per share (yen)
Net income per share-diluted (yen)
Capital expenditures
Depreciation for tangible fixed assets
R&D expenditures
Exchange rate (Yen/US$)
Exchange rate (Yen/EURO)
Three months ended
Three months ending
Year ending
Sept. 30, 2006
Change
Dec. 31, 2006
Change
Mar. 31, 2007
Change
Mar. 31, 2007
Change
Results
%
Results
%
Forecast
%
Forecast
%
986.9
407.9
73.1
7.3
5.8
12.5
505.7
219.3
48.6
6.6
9.6
33.7
574.3
231.0
50.1
11.6
10.5
6.4
2,067.0
858.3
172.0
8.3
8.0
15.8
74.2
52.0
71.35
39.1
33.7
56.5
115.40
145.98
10.0
21.4
-
48.7
31.2
42.83
42.66
17.6
18.2
27.9
117.82
151.92
28.3
35.9
-
46.9
24.2
33.18
32.19
25.1
19.9
35.5
115.00
145.00
-0.6
-22.4
-
170.0
107.5
147.36
146.20
82.0
72.0
120.0
115.91
147.22
11.3
10.8
-
4. Forecast of Consolidated Sales by Product Category
(Billions of yen)
Three months ending March 31, 2007
Change
Change
Forecast
Forecast(*)
%
%
<Office Solutions>
Imaging Solutions
Domestic
Overseas
Network System Solutions
Domestic
Overseas
Office Solutions Total
Domestic
Overseas
The Americas
Europe
Other
<Industrial Products>
Industrial Products
Domestic
Overseas
The Americas
Europe
Other
<Other>
Other
Domestic
Overseas
The Americas
Europe
Other
Grand Total
Domestic
Overseas
The Americas
Europe
Other
Year ending March 31, 2007
Change
Forecast
Forecast(*)
%
Change
%
447.4
166.1
281.2
57.7
54.7
3.0
505.1
220.8
284.2
117.2
139.9
27.1
15.8
8.8
20.5
1.8
1.7
3.7
14.0
6.9
20.3
17.4
24.7
11.6
445.0
166.1
278.8
57.6
54.7
2.9
502.6
220.8
281.7
119.3
135.8
26.6
15.2
8.8
19.4
1.7
1.7
0.2
13.5
6.9
19.2
19.5
21.0
9.6
1,585.4
608.0
977.4
193.0
183.0
10.0
1,778.5
791.0
987.4
410.2
476.8
100.4
9.6
3.9
13.5
1.3
1.0
6.5
8.6
3.2
13.4
11.4
15.6
11.6
1,544.2
608.0
936.2
192.4
183.0
9.4
1,736.7
791.0
945.6
401.8
447.6
96.1
6.8
3.9
8.7
1.0
1.0
-0.3
6.1
3.2
8.6
9.1
8.5
6.8
30.6
18.2
12.4
3.8
4.4
4.2
-5.7
-2.4
-10.3
-27.6
-2.3
3.2
30.6
18.2
12.4
3.9
4.3
4.2
-5.7
-2.4
-10.3
-25.7
-4.5
3.2
129.4
74.1
55.2
19.0
18.4
17.7
7.3
2.5
14.5
9.4
14.8
20.0
127.7
74.1
53.5
18.5
17.4
17.5
5.9
2.5
10.9
6.8
8.4
18.4
38.6
33.6
5.0
0.3
1.3
3.4
574.3
272.6
301.6
121.3
145.6
34.7
-2.2
-0.1
-14.2
30.2
-18.9
-14.9
11.6
5.3
17.8
15.2
23.1
7.3
38.5
33.6
4.9
0.3
1.3
3.3
571.7
272.6
299.0
123.5
141.4
34.1
-2.5
-0.1
-15.9
30.2
-18.9
-17.4
11.0
5.3
16.8
17.3
19.5
5.4
159.0
136.7
22.2
1.3
6.6
14.2
2,067.0
1,002.0
1,065.0
430.6
501.9
132.4
5.0
7.4
-7.4
-24.1
7.1
-11.1
8.3
3.7
12.9
11.2
15.4
9.6
158.1
136.7
21.4
1.3
6.2
13.8
2,022.6
1,002.0
1,020.6
421.7
471.3
127.4
4.5
7.4
-10.8
-25.9
0.8
-13.6
5.9
3.7
8.2
8.9
8.4
5.5
* Excluding foreign exchange impact
A4