October 28, 2011 QUARTERLY REPORT Half year ended September 30, 2011 (Results for the Period from April 1, 2011 to September 30, 2011) Three months ended September 30, 2011 (Results for the Period from July 1, 2011 to September 30, 2011) Performance Outline (Consolidated) (1) Half year ended September 30, 2011, 2010 and Year ending March 31, 2012 (Forecast) (Billions of yen) Half year ended September 30, 2011 Results Domestic sales Overseas sales Net sales Gross profit Operating income (loss) Income (loss) before income taxes Net income (loss) attributable to Ricoh Company, Ltd. Exchange rate (Yen/US$) Exchange rate (Yen/EURO) Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-diluted (yen) Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Capital expenditures Depreciation for tangible fixed assets R&D expenditures Half year ended September 30, 2010 Results Ricoh Company, Ltd. shareholders' equity ratio (%) Ricoh Company, Ltd. shareholders' equity per share (yen) Change 434.5 504.3 938.8 386.2 -1.7 -7.7 -7.3 439.0 531.7 970.8 402.9 38.0 28.0 12.5 -1.0% -5.2% -3.3% -4.1% - 905.0 1,045.0 1,950.0 780.0 37.0 26.5 10.0 3.3% -2.0% 0.4% -1.3% -38.5% -41.6% -49.1% 79.82 113.94 89.03 114.14 -9.21 -0.20 77.41 109.47 -8.36 -3.81 -10.15 17.24 -27.39 13.78 -13.30 -10.15 16.77 -26.92 13.77 -12.76 11.3 -52.8 5.9 136.3 67.5 -49.6 23.3 274.0 -56.2 -3.1 -17.3 -137.7 - - 36.7 30.8 59.5 39.5 33.4 53.9 -2.8 -2.5 5.5 65.0 65.0 115.0 -1.9 -2.2 4.1 September 30, 2011 Total assets Ricoh Company, Ltd. shareholders' equity Interest-bearing debt Change Year ending March 31, 2012 Forecast March 31, 2011 Change 2,186.9 861.7 643.2 2,262.3 929.8 630.4 -75.4 -68.1 12.7 39.4 41.1 -1.7 1,187.78 1,281.70 -93.92 (2) Three months ended September 30, 2010 and 2011 Three months ended September 30, 2011 Results Domestic sales Overseas sales Net sales Gross profit Operating income (loss) Income (loss) before income taxes Net income (loss) attributable to Ricoh Company, Ltd. Exchange rate (Yen/US$) Exchange rate (Yen/EURO) Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-diluted (yen) Capital expenditures Depreciation for tangible fixed assets R&D expenditures (Billions of yen) Three months ended September 30, 2010 Change Results 219.3 253.3 472.7 192.1 -11.7 -16.2 -10.8 226.1 261.7 487.9 198.6 16.1 12.5 5.1 -3.0% -3.2% -3.1% -3.2% - 77.94 110.31 85.95 110.80 -8.01 -0.49 -14.90 7.13 -22.03 -14.90 6.94 -21.84 20.0 15.2 31.8 23.7 17.3 28.3 -3.6 -2.1 3.4 Ricoh Company, Ltd. * The Company bases the forecast estimates for the fiscal year ending March 31, 2012 above upon information currently available to management, which involves risks and uncertainties that could cause actual results to differ materially from those projected. 1 Ricoh Company, Ltd. and Consolidated Subsidiaries Financial Highlights for the Second Quarter Ended September 30, 2011 (U.S. GAAP Financial Information) 1. Results for the Period from April 1, 2011 to September 30, 2011 (1) Operating Results Half year ended September 30, 2011 938,885 -3.3 -1,776 -7,754 -7,363 - (Millions of yen) Half year ended September 30, 2010 970,856 -1.8 38,012 171.6 28,065 314.8 12,512 592.0 September 30, 2011 2,186,920 916,126 861,736 39.4 (Millions of yen) March 31, 2011 2,262,396 982,764 929,877 41.1 Net sales (% change from the previous corresponding period) Operating income (loss) (% change from the previous corresponding period) Income (loss) before income taxes (% change from the previous corresponding period) Net income (loss) attributable to Ricoh Company, Ltd. (% change from the previous corresponding period) Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) -10.15 17.24 Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-diluted (yen) -10.15 16.77 Notes: i. Comprehensive income: ¥ -54,161 million ( - %) (¥ -30,822 million ( - %) in income in previous fiscal year) (2) Financial Position Total assets Total equity Ricoh Company, Ltd. shareholders' equity Ricoh Company, Ltd. shareholders' equity ratio (%) 2. Dividend information Year ended Year ending March 31, 2011 March 31, 2012 (Results) (Forecast) Cash dividends, applicable to the year (yen) Interim (yen) Year-end (yen) 33.00 16.50 16.50 33.00 16.50 16.50 Notes: Revision of expected dividends during this period: No 3. Forecast of Operating Results from April 1, 2011 to March 31, 2012 Net sales Operating income Income before income taxes Net income attributable to Ricoh Company, Ltd. Net income attributable to Ricoh Company, Ltd. shareholders per share (yen) (Millions of yen) Year ending March 31, 2012 1,950,000 37,000 26,500 10,000 13.78 Notes: Revision of forecast of consolidated operating results during this period: Yes 4. Others (1) Changes in significant subsidiaries: No (2) Adoption of concise quarterly accounting method or procedure: No (3) Changes in accounting method: No (4) Number of common stock outstanding (including treasury stock): As of September 30, 2011 744,912,078 shares As of March 31, 2011 744,912,078 shares (5) Number of treasury stock: As of September 30, 2011 19,413,429 shares As of March 31, 2011 19,409,410 shares (6) Average number of common stock: As of September 30, 2011 725,501,005 shares As of September 30, 2010 725,577,955 shares 2 Consolidated Performance 1. Operating results *Overview Consolidated net sales of Ricoh Group for the first half of fiscal year 2011 (the six months period from April 1, 2011 to September 30, 2011) decreased by 3.3% as compared to the previous corresponding period, to ¥938.8 billion. During this period, the average yen exchange rates were ¥79.82 against the U.S. dollar (up ¥9.21) and ¥ 113.94 against the Euro (up ¥0.20). Net sales would have decreased by 0.2% excluding impact of such foreign currency exchange fluctuation. The Japanese economy had shown recovery from the impact of the Great East Japan Earthquake. However, unpredictable situation remained because of the sharp appreciation of the Yen against the U.S. dollar and the Euro as well as decline of the stock market. Under the severe situation, domestic sales in all the segments such as the Imaging & Solutions, Industrial Products and Other decreased from the previous corresponding period. Consequently, overall sales in Japan decreased by 1.0% as compared to the previous corresponding period. As for the overseas economy, in the emerging markets such as China, recovery trend is generated from increase in their domestic demand. However, it remained uncertain due to the financial crisis and debt problem in some European countries. Ricoh continued to face the severe business environment in Americas and Europe due to the appreciation of the Yen. As for overseas sales by region, as compared to the previous corresponding period, sales in the Americas decreased by 11.6% due to foreign currency exchange fluctuation (1.2%, excluding foreign currency exchange fluctuation), sales in Europe, the Yen against Euro appreciated, however, increased by 0.4% (1.0%, excluding foreign currency exchange fluctuation), and sales in Other region, which includes China, South East Asia and Oceania, increased by 3.5% (5.9%, excluding foreign currency exchange fluctuation). As a result, sales in the overseas market decreased by 5.2% as compared to the previous corresponding period. Excluding effects of foreign currency fluctuations, net sales in overseas would have increased by 0.5% as compared to the previous corresponding period. Gross profit decreased by 4.1% as compared to the previous corresponding period, to ¥386.2 billion due primarily to decrease in sales, the appreciation of the Yen and ¥2.3 billion in restructuring cost. Selling, general and administrative expenses increased by 6.3% as compared to the previous corresponding period, to ¥388.0 billion due primarily to increase in R&D expenditures and ¥21.6 billion in restructuring cost. As a result, operating income sharply decreased as compared to the previous corresponding period, to ¥1.7 billion loss (operating income ¥38.0 billion for the previous corresponding period). As for other (income) expenses, foreign exchange loss decreased as compared to the previous corresponding period. However, income before income taxes decreased as compared to the previous corresponding period, to ¥7.7 billion loss (income before income taxes ¥28.0 billion for the previous corresponding period). As a result, net income attributable to Ricoh Company, Ltd. decreased by ¥19.8 billion as compared to the previous corresponding period, to ¥7.3 billion loss (net income ¥12.5 billion for the previous corresponding period). As for comprehensive income, comprehensive loss increased due primarily to decrease of cumulative translation adjustments. 3 *Conditions by Product Line Conditions by Product Line for half year ended September 30, 2011 are as follows; Imaging & Solutions (Sales down 2.6% to ¥829.1 billion) Imaging Solutions (Sales down 3.5% to ¥731.0 billion) Sales in this category decreased by 3.5% as compared to the previous corresponding period, to ¥731.0 billion. The sales would have increased by 0.4% excluding the effects of foreign currency fluctuations. As for sales of PPCs, MFPs and printers, while the sales of color products remained steady, the sales of monochrome products decreased as compared to the previous corresponding period. Network System Solutions (Sales up 4.9% to ¥98.0 billion) Sales in this category increased by 4.9% as compared to the previous corresponding period, to ¥98.0 billion due primarily to the sales of PC servers, installation and maintenance of network environment and enterprise system software. As a result, sales in the Imaging & Solutions segment decreased by 2.6% as compared to the previous corresponding period, to ¥829. billion. Operating income decreased by 48.4% as compared to the previous corresponding period, to ¥37.6 billion due primarily to restructuring cost and the appreciation of Japanese Yen. Increase in sales of value-added high-margin products in addition to ongoing cost reduction could not fully offset decrease in operating income. Industrial Products (Sales down 9.5% to ¥50.4 billion) Sales in the Industrial Products segment decreased by 9.5% as compared to the previous corresponding period, to ¥50.4 billion. Sales of semiconductor devices decreased in Japan as compared to the previous corresponding period. As a result, operating loss in the Industrial Products segment amounted to ¥2.1 billion (operating income ¥1.0 billion for the previous corresponding period). Other (Sales down 7.5% to ¥59.3 billion) Net sales in the Other segment decreased by 7.5% as compared to the previous corresponding period, to ¥59.3 billion. Sales of digital cameras decreased in Japan and overseas. In addition, investment in new business increased. As a result operating loss in the Other segment amounted to ¥2.8 billion (operating loss ¥0.4 billion for the previous corresponding period). 2. Financial Position *Assets, Liabilities and Equity For Assets, cash and time deposits and trade receivables decreased from the end of the previous fiscal year. The yen equivalent of foreign-currency-denominated assets decreased due to the appreciation of the Yen developed from the previous fiscal year. Inventories increased due partly to initial stock for launch of new products. As a result, total assets decreased by ¥75.4 billion, to ¥2,186.9 billion. For Liabilities, the interest-bearing debt increased, however, total liabilities decreased by ¥8.8 billion, to ¥1,270.7 billion. For Total Equity, the change in retained earnings resulted from payment for dividends and net loss attributable to Ricoh Company, Ltd. Accumulated other comprehensive loss increased due primarily to the fluctuation of cumulative translation adjustments reflecting exchange fluctuation from the end of the previous period. As a result, Total Equity decreased by ¥66.6 billion from the end of the previous fiscal year, to ¥916.1 billion. *Cash Flows (First half year from April 1, 2011 to September 30, 2011) Net cash provided by operating activities in this period decreased by ¥56.2 billion as compared to the previous corresponding period, to ¥11.3 billion due primarily to increase of inventory. Net cash used in investing activities in this period increased by ¥3.1 billion as compared to the previous corresponding period, to ¥52.8 billion. As a result, free cash outflows generated by operating and investing activities amounted to ¥41.5 billion while free cash inflows amounted to ¥17.8 billion in the previous corresponding period. Net cash provided by financing activities in this period decreased by ¥17.3 billion as compared to the previous corresponding period, to ¥5.9 billion. As a result, cash and cash equivalents at the end of this first half decreased by ¥13.7 billion as compared to the end of the previous fiscal year, to ¥136.3 billion. 4 3. Forecast for the entire fiscal year As for the forecast of business results for the fiscal year ending March 31,2012, Ricoh revises its forcast of sales, gross profit, operating income, income before income taxes and net income attributable to Ricoh Company, Ltd. downward, reflecting the recent business environment such as exchange rate fluctuation. Ricoh assumes exchange rates of ¥75.00 against the U.S. dollar and of ¥105.00 against the Euro in and after the third quarter, which were revised from the forecast that announced in August 2011. The actual exchange rates during the first half of fiscal year 2011 are incorporated in annual exchange rates assumption. Our performance forecast for fiscal year 2012 is as follows: Exchange Rate Assumptions for the full year ending March 31, 2012 US$ 1 = ¥77.41 (¥85.77 in previous fiscal year) EURO 1 = ¥109.47 (¥113.28 in previous fiscal year) (Billions of yen) Domestic sales Overseas sales Net sales Gross profit Operating income Income before income taxes Net income attributable to Ricoh Company, Ltd. Year ending March 31, 2012 (Forecast) 905.0 1,045.0 1,950.0 780.0 37.0 26.5 Year ended March 31, 2011 (Results) 875.8 1,066.1 1,942.0 790.0 60.1 45.4 10.0 19.6 Change 3.3% -2.0% 0.4% -1.3% -38.5% -41.6% -49.1% * Ricoh bases the forecast estimates for the year ending March 31, 2012 above upon information currently available to management, which involves risks and uncertainties that could cause actual results to differ materially from those projected. 4. Others (1) Changes in significant subsidiaries: Not applicable (2) Adoption of concise quarterly accounting method or procedure: Not applicable (3) Changes in accounting method: Not applicable 5 5. Consolidated Financial Statements (1) Consolidated Balance Sheets Assets September 30, 2011 Current Assets Cash and time deposits Trade receivables 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, 2011 138,605 625,423 188,934 60,051 1,013,013 181,179 657,817 171,033 63,990 1,074,019 -42,574 -32,394 17,901 -3,939 -61,006 262,509 445,068 466,330 1,173,907 2,186,920 264,740 445,782 477,855 1,188,377 2,262,396 -2,231 -714 -11,525 -14,470 -75,476 136,311 2,294 179,169 2,010 Liabilities and Equity September 30, 2011 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 Equity Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock Total Ricoh Company, Ltd. shareholders' equity Noncontrolling interests Total Equity Total Liabilities and Equity Note: Accumulated other comprehensive loss; 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 March 31, 2011 (Millions of yen) Change 245,969 162,788 208,466 617,223 250,483 151,023 213,194 614,700 -4,514 11,765 -4,728 2,523 480,422 134,138 39,011 653,571 1,270,794 479,422 140,975 44,535 664,932 1,279,632 1,000 -6,837 -5,524 -11,361 -8,838 135,364 186,083 796,625 -219,506 -36,830 861,736 54,390 916,126 2,186,920 135,364 186,083 815,970 -170,702 -36,838 929,877 52,887 982,764 2,262,396 -19,345 -48,804 8 -68,141 1,503 -66,638 -75,476 40 -48,015 -1,197 -170,334 2,466 -47,514 -1,168 -124,486 -2,426 -501 -29 -45,848 September 30, 2011 March 31, 2011 US$ 1 ¥76.65 ¥83.15 EURO 1 ¥104.11 ¥117.57 6 (Millions of yen) Change (2) Consolidated Statements of Income Half year ended September 30, 2011 and 2010 (Millions of yen) 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 (loss) 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 (loss) before income taxes, equity income and minority interests Percentage of net sales (%) Provision for income taxes Percentage of net sales (%) Equity in earnings of affiliates Percentage of net sales (%) Consolidated net income (loss) Percentage of net sales (%) Net income attributable to noncontrolling interests Percentage of net sales (%) Net income (loss) attributable to Ricoh Company, Ltd. Percentage of net sales (%) Reference : Exchange rate US$ 1 EURO 1 Half year ended September 30, 2011 938,885 552,623 58.9 386,262 41.1 388,038 41.3 -1,776 -0.2 Half year ended September 30, 2010 970,856 567,938 58.5 402,918 41.5 364,906 37.6 38,012 3.9 1,502 0.2 3,418 0.4 4,062 0.4 1,375 0.1 3,911 0.4 7,411 0.7 -7,754 -0.8 -2,542 -0.2 -1 -0.0 -5,213 -0.6 2,150 0.2 28,065 2.9 13,594 1.4 -7 -0.0 14,464 1.5 1,952 0.2 -7,363 -0.8 12,512 1.3 ¥79.82 ¥113.94 ¥89.03 ¥114.14 Three months ended September 30, 2011 472,737 280,571 59.4 192,166 40.6 203,949 43.1 -11,783 -2.5 Three months ended September 30, 2010 487,902 289,302 59.3 198,600 40.7 182,435 37.4 16,165 3.3 894 0.2 1,958 0.4 3,430 0.7 778 0.2 2,057 0.4 2,313 0.5 -16,277 -3.4 -6,436 -1.3 7 0.0 -9,834 -2.1 975 0.2 12,573 2.6 6,298 1.3 0 0.0 6,275 1.3 1,096 0.2 -10,809 -2.3 5,179 1.1 ¥77.94 ¥110.31 ¥85.95 ¥110.80 Change -31,971 -15,315 % -3.3 -2.7 -16,656 -4.1 23,132 6.3 -39,788 - 127 9.2 -493 -12.6 -3,349 -45.2 -35,819 - -16,136 - 6 - -19,677 - 198 10.1 -19,875 - Three months ended September 30, 2011 and 2010 (Millions of yen) 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 (loss) before income taxes, equity income and minority interests Percentage of net sales (%) Provision for income taxes Percentage of net sales (%) Equity in earnings of affiliates Percentage of net sales (%) Consolidated net income (loss) Percentage of net sales (%) Net income attributable to noncontrolling interests Percentage of net sales (%) Net income (loss) attributable to Ricoh Company, Ltd. Percentage of net sales (%) Reference : Exchange rate US$ 1 EURO 1 7 Change -15,165 -8,731 % -3.1 -3.0 -6,434 -3.2 21,514 11.8 -27,948 - 116 14.9 -99 -4.8 1,117 48.3 -28,850 - -12,734 - 7 - -16,109 - -121 -11.0 -15,988 - Consolidated Sales by Product Category Half year ended September 30, 2011 and 2010 (Millions of yen) Half year ended September 30, 2011 <Imaging & Solutions> Imaging Solutions Percentage of net sales (%) Network System Solutions Percentage of net sales (%) Imaging & Solutions Total Percentage of net sales (%) <Industrial Products> Industrial Products Percentage of net sales (%) <Other> Other Percentage of net sales (%) Grand Total Percentage of net sales (%) Reference : Exchange rate US$ 1 EURO 1 Half year ended September 30, 2010 Change 731,057 77.9 98,048 10.4 829,105 88.3 757,498 78.0 93,485 9.7 850,983 87.7 -26,441 -3.5 4,563 4.9 -21,878 -2.6 50,450 5.4 55,743 5.7 -5,293 -9.5 59,330 6.3 938,885 100.0 64,130 6.6 970,856 100.0 -4,800 -7.5 -31,971 -3.3 ¥79.82 ¥113.94 ¥89.03 ¥114.14 Three months ended September 30, 2011 and 2010 (Millions of yen) Three months ended September 30, 2011 <Imaging & Solutions> Imaging Solutions Percentage of net sales (%) Network System Solutions Percentage of net sales (%) Imaging & Solutions Total Percentage of net sales (%) <Industrial Products> Industrial Products Percentage of net sales (%) <Other> Other Percentage of net sales (%) Grand Total Percentage of net sales (%) Reference : Exchange rate US$ 1 EURO 1 *Each category includes the following product line: Imaging Solutions Network System Solutions Industrial Products Other % Three months ended September 30, 2010 Change % 363,245 76.8 53,755 11.4 417,000 88.2 371,938 76.2 54,356 11.2 426,294 87.4 -8,693 -2.3 -601 -1.1 -9,294 -2.2 25,306 5.4 27,838 5.7 -2,532 -9.1 30,431 6.4 472,737 100.0 33,770 6.9 487,902 100.0 -3,339 -9.9 -15,165 -3.1 ¥77.94 ¥110.31 ¥85.95 ¥110.80 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 Digital cameras *Product lines included in Product Category was changed in the first quarter of fiscal year 2011. Service&Support, such as MDS(Managed Document Services) was changed from Network System Solutions to Imaging Solutions. The reclassification was made to the prior year's figures to conform with the current year's presentation. 8 Consolidated Sales by Geographic Area Half year ended September 30, 2011 and 2010 (Millions of yen) Half year ended September 30, 2011 <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 Half year ended September 30, 2010 434,501 46.3 504,384 53.7 234,240 24.9 201,940 21.5 68,204 7.3 938,885 100.0 439,065 45.2 531,791 54.8 264,857 27.3 201,051 20.7 65,883 6.8 970,856 100.0 ¥79.82 ¥113.94 ¥89.03 ¥114.14 Change % -4,564 -1.0 -27,407 -5.2 -30,617 -11.6 889 0.4 2,321 3.5 -31,971 -3.3 Three months ended September 30, 2011 and 2010 (Millions of yen) Three months ended September 30, 2011 <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 9 Three months ended September 30, 2010 219,354 46.4 253,383 53.6 118,671 25.1 99,446 21.0 35,266 7.5 472,737 100.0 226,149 46.4 261,753 53.6 131,447 26.9 97,934 20.1 32,372 6.6 487,902 100.0 ¥77.94 ¥110.31 ¥85.95 ¥110.80 Change % -6,795 -3.0 -8,370 -3.2 -12,776 -9.7 1,512 1.5 2,894 8.9 -15,165 -3.1 (3) Consolidated Statements of Cash Flows (Millions of yen) Half year ended Half year ended September 30, 2011 September 30, 2010 I. Cash Flows from Operating Activities: Consolidated net income (loss) Adjustments to reconcile consolidated 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 disposals and sales of tangible fixed assets Loss on impairment of securities Pension and severance costs, less payments Changes in assets and liabilities— Decrease in trade receivables Increase in inventories Increase (Decrease) in finance receivables Decrease in trade payables Increase in accrued income taxes and accrued expenses and other Other, net Net cash provided by operating activities II. Cash Flows from Investing Activities: Proceeds from sales of property, plant and equipment Expenditures for property, plant and equipment, including interest capitalized Expenditures for intangible asset Payments for purchases of available-for-sale securities Proceeds from sales of available-for-sale securities Increase in time deposits Other, net Net cash used in investing activities III. Cash Flows from Financing Activities: Proceeds from long-term indebtedness Repayment of long-term indebtedness Decrease in short-term borrowings, net Proceeds from issuance of long-term debt securities Repayment of long-term debt securities Dividends paid Payment for purchase of treasury stock Other, net Net cash provided by 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 Period 10 -5,213 14,464 43,956 1 -13,980 330 73 -8,479 46,718 7 821 661 5 978 14,296 -29,161 -10,596 -1,089 21,391 -24,231 4,263 -20,612 8,040 13,126 11,304 13,044 9,999 67,508 523 429 -36,710 -8,371 -122 10 -400 -7,754 -52,824 -39,541 -7,886 -85 5 -57 -2,507 -49,642 23,386 -29,671 24,725 -231 -11,971 -14 -294 5,930 -7,268 -42,858 179,169 136,311 28,615 -61,958 -10,783 79,741 -11,972 -72 -264 23,307 -9,279 31,894 242,165 274,059 (4) Notes on premise going concern Not applicable (5) Segment Information (a) Operating Segments Information Half year ended September 30, 2011 and 2010 (Millions of yen) Half year ended Half year ended September 30, 2011 September 30, 2010 Imaging & Solutions: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating income Operating income on sales in Imaging & Solutions (%) Industrial Products: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating income (loss) Operating income on sales in Industrial Products (%) Other: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating loss Operating income on sales in Other (%) Corporate and Eliminations: Net sales: Intersegment Total Operating expenses: Intersegment Corporate Total Operating loss Consolidated: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating income (loss) Operating income on consolidated net sales (%) 11 829,105 829,105 791,425 37,680 850,983 850,983 777,982 73,001 4.5 8.6 50,450 2,264 52,714 54,880 -2,166 55,743 2,591 58,334 57,288 1,046 -4.1 1.8 59,330 59,330 62,174 -2,844 64,130 64,130 64,594 -464 -4.8 -0.7 -2,264 -2,264 Change % -21,878 -21,878 13,443 -35,321 -2.6 -2.6 1.7 -48.4 -5,293 -327 -5,620 -2,408 -3,212 -9.5 -12.6 -9.6 -4.2 - -4,800 -4,800 -2,420 -2,380 -7.5 -7.5 -3.7 - -2,591 -2,591 327 327 - -2,264 34,446 32,182 -34,446 -2,598 35,578 32,980 -35,571 334 -1,132 -798 1,125 - 938,885 938,885 940,661 -1,776 970,856 970,856 932,844 38,012 -31,971 -31,971 7,817 -39,788 -3.3 -3.3 0.8 - -0.2 3.9 Three months ended September 30, 2011 and 2010 (Millions of yen) Three months ended September 30, 2011 Imaging & Solutions: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating income Operating income on sales in Imaging & Solutions (%) Industrial Products: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating income (loss) Operating income on sales in Industrial Products (%) Other: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating loss Operating income on sales in Other (%) Corporate and Eliminations: Net sales: Intersegment Total Operating expenses: Intersegment Corporate Total Operating loss Consolidated: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating income (loss) Operating income on consolidated net sales (%) 12 Three months ended September 30, 2010 417,000 417,000 406,180 10,820 426,294 426,294 391,211 35,083 2.6 8.2 25,306 1,198 26,504 28,188 -1,684 27,838 1,406 29,244 28,682 562 -6.4 1.9 30,431 30,431 32,760 -2,329 33,770 33,770 34,106 -336 -7.7 -1.0 -1,198 -1,198 Change % -9,294 -9,294 14,969 -24,263 -2.2 -2.2 3.8 -69.2 -2,532 -208 -2,740 -494 -2,246 -9.1 -14.8 -9.4 -1.7 - -3,339 -3,339 -1,346 -1,993 -9.9 -9.9 -3.9 - -1,406 -1,406 208 208 - -1,198 18,590 17,392 -18,590 -1,413 19,151 17,738 -19,144 215 -561 -346 554 - 472,737 472,737 484,520 -11,783 487,902 487,902 471,737 16,165 -15,165 -15,165 12,783 -27,948 -3.1 -3.1 2.7 - -2.5 3.3 (b) Geographic Segments Information Half year ended September 30, 2011 and 2010 (Millions of yen) Half year ended Half year ended September 30, 2011 September 30, 2010 Japan: Net sales: External customers Intersegment Total Operating expenses Operating income (loss) Operating income on sales in Japan (%) The Americas: Net sales: External customers Intersegment Total Operating expenses Operating loss 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 (loss) Consolidated: Net sales: External customers Intersegment Total Operating expenses Operating income (loss) Operating income on consolidated net sales (%) 13 441,978 189,487 631,465 647,096 -15,631 447,617 212,040 659,657 634,603 25,054 -2.5 3.8 234,026 1,843 235,869 241,794 -5,925 264,701 1,605 266,306 268,386 -2,080 -2.5 -0.8 202,661 1,110 203,771 191,340 12,431 201,740 1,134 202,874 190,344 12,530 6.1 6.2 60,220 76,566 136,786 131,996 4,790 56,798 85,335 142,133 133,881 8,252 3.5 5.8 -269,006 -269,006 -271,565 2,559 Change % -5,639 -22,553 -28,192 12,493 -40,685 -1.3 -10.6 -4.3 2.0 - -30,675 238 -30,437 -26,592 -3,845 -11.6 14.8 -11.4 -9.9 - 921 -24 897 996 -99 0.5 -2.1 0.4 0.5 -0.8 3,422 -8,769 -5,347 -1,885 -3,462 6.0 -10.3 -3.8 -1.4 -42.0 -300,114 -300,114 -294,370 -5,744 31,108 31,108 22,805 8,303 - 938,885 938,885 940,661 -1,776 970,856 970,856 932,844 38,012 -31,971 -31,971 7,817 -39,788 -3.3 -3.3 0.8 - -0.2 3.9 Three months ended September 30, 2011 and 2010 (Millions of yen) Three months ended September 30, 2011 Japan: Net sales: External customers Intersegment Total Operating expenses Operating income (loss) Operating income on sales in Japan (%) The Americas: Net sales: External customers Intersegment Total Operating expenses Operating loss 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 (loss) Consolidated: Net sales: External customers Intersegment Total Operating expenses Operating income (loss) Operating income on consolidated net sales (%) (6) Notes on significant changes in Equity Not applicable 14 Three months ended September 30, 2010 222,918 102,409 325,327 346,739 -21,412 230,491 99,673 330,164 322,053 8,111 -6.6 2.5 118,503 951 119,454 121,179 -1,725 132,343 828 133,171 134,337 -1,166 -1.4 -0.9 99,847 508 100,355 93,217 7,138 96,500 510 97,010 90,743 6,267 7.1 6.5 31,469 42,371 73,840 70,786 3,054 28,568 42,422 70,990 67,201 3,789 4.1 5.3 -146,239 -146,239 -147,401 1,162 Change % -7,573 2,736 -4,837 24,686 -29,523 -3.3 2.7 -1.5 7.7 - -13,840 123 -13,717 -13,158 -559 -10.5 14.9 -10.3 -9.8 - 3,347 -2 3,345 2,474 871 3.5 -0.4 3.4 2.7 13.9 2,901 -51 2,850 3,585 -735 10.2 -0.1 4.0 5.3 -19.4 -143,433 -143,433 -142,597 -836 -2,806 -2,806 -4,804 1,998 - 472,737 472,737 484,520 -11,783 487,902 487,902 471,737 16,165 -15,165 -15,165 12,783 -27,948 -3.1 -3.1 2.7 - -2.5 3.3 -APPENDIX1. Consolidated Sales by Product Category (Millions of yen) Half year ended September 30, 2011 and 2010 Half year ended September 30, 2011 <Imaging & Solutions> Imaging Solutions Percentage of net sales (%) Domestic Overseas Network System Solutions Percentage of net sales (%) Domestic Overseas Imaging & 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 Half year ended September 30, 2010 731,057 77.9 258,688 472,369 98,048 10.4 89,911 8,137 829,105 88.3 348,599 480,506 227,937 194,561 58,008 757,498 78.0 255,868 501,630 93,485 9.7 86,625 6,860 850,983 87.7 342,493 508,490 258,660 193,881 55,949 50,450 5.4 28,173 22,277 6,080 6,717 9,480 Change % Change excluding exchange impact % -26,441 -3.5 2,682 0.4 2,820 -29,261 4,563 1.1 -5.8 4.9 2,820 -138 4,761 1.1 -0.0 5.1 3,286 1,277 -21,878 3.8 18.6 -2.6 3,286 1,475 7,443 3.8 21.5 0.9 6,106 -27,984 -30,723 680 2,059 1.8 -5.5 -11.9 0.4 3.7 6,106 1,337 -3,938 1,884 3,391 1.8 0.3 -1.5 1.0 6.1 55,743 5.7 34,619 21,124 5,962 6,670 8,492 -5,293 -9.5 -4,410 -7.9 -6,446 1,153 118 47 988 -18.6 5.5 2.0 0.7 11.6 -6,446 2,036 811 57 1,168 -18.6 9.6 13.6 0.9 13.8 59,330 6.3 57,729 1,601 223 662 716 938,885 100.0 434,501 46.3 504,384 53.7 234,240 24.9 201,940 21.5 68,204 7.3 64,130 6.6 61,953 2,177 235 500 1,442 970,856 100.0 439,065 45.2 531,791 54.8 264,857 27.3 201,051 20.7 65,883 6.8 -4,800 -7.5 -4,692 -7.3 -4,224 -576 -12 162 -726 -31,971 -6.8 -26.5 -5.1 32.4 -50.3 -3.3 -4,224 -468 14 163 -645 -1,659 -6.8 -21.5 6.0 32.6 -44.7 -0.2 -4,564 -1.0 -4,564 -1.0 -27,407 -5.2 2,905 0.5 -30,617 -11.6 -3,113 -1.2 889 0.4 2,104 1.0 2,321 3.5 3,914 5.9 ¥79.82 ¥113.94 ¥89.03 ¥114.14 ¥-9.21 ¥-0.20 *Each category includes the following product line: Imaging Solutions Digital PPCs, color PPCs, digital duplicators, facsimile machines, analog PPCs, diazo copiers, scanners, MFPs(multifunctional printers), laser printers and software Network System Solutions Personal computers, servers, network systems and network related software Industrial Products Thermal media, optical equipment, semiconductor devices, electronic components and measuring equipment Other Digital cameras *Product lines included in Product Category was changed in the first quarter of fiscal year 2011. Service&Support, such as MDS(Managed Document Services) was changed from Network System Solutions to Imaging Solutions. The reclassification was made to the prior year's figures to conform with the current year's presentation. A1 (Millions of yen) Three months ended September 30, 2011 and 2010 <Imaging & Solutions> Imaging Solutions Percentage of net sales (%) Domestic Overseas Network System Solutions Percentage of net sales (%) Domestic Overseas Imaging & 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 Three months ended Three months ended September 30, 2011 September 30, 2010 363,245 76.8 125,904 237,341 53,755 11.4 49,617 4,138 417,000 88.2 175,521 241,479 115,458 95,968 30,053 371,938 76.2 125,285 246,653 54,356 11.2 50,630 3,726 426,294 87.4 175,915 250,379 128,261 94,523 27,595 25,306 5.4 14,179 11,127 3,086 3,126 4,915 Change % Change excluding exchange impact % -8,693 -2.3 4,875 1.3 619 -9,312 -601 0.5 -3.8 -1.1 619 4,256 -505 0.5 1.7 -0.9 -1,013 412 -9,294 -2.0 11.1 -2.2 -1,013 508 4,370 -2.0 13.6 1.0 -394 -8,900 -12,803 1,445 2,458 -0.2 -3.6 -10.0 1.5 8.9 -394 4,764 -642 2,381 3,025 -0.2 1.9 -0.5 2.5 11.0 27,838 5.7 17,477 10,361 3,061 3,150 4,150 -2,532 -9.1 -2,201 -7.9 -3,298 766 25 -24 765 -18.9 7.4 0.8 -0.8 18.4 -3,298 1,097 343 -12 766 -18.9 10.6 11.2 -0.4 18.5 30,431 6.4 29,654 777 127 352 298 472,737 100.0 219,354 46.4 253,383 53.6 118,671 25.1 99,446 21.0 35,266 7.5 33,770 6.9 32,757 1,013 125 261 627 487,902 100.0 226,149 46.4 261,753 53.6 131,447 26.9 97,934 20.1 32,372 6.6 -3,339 -9.9 -3,295 -9.8 -3,103 -236 2 91 -329 -15,165 -9.5 -23.3 1.6 34.9 -52.5 -3.1 -3,103 -192 16 92 -300 -1,126 -9.5 -19.0 12.8 35.2 -47.8 -0.2 -6,795 -3.0 -6,795 -3.0 -8,370 -3.2 5,669 2.2 -12,776 -9.7 -283 -0.2 1,512 1.5 2,461 2.5 2,894 8.9 3,491 10.8 ¥77.94 ¥110.31 ¥85.95 ¥110.80 ¥-8.01 ¥-0.49 *Each category includes the following product line: Imaging Solutions Digital PPCs, color PPCs, digital duplicators, facsimile machines, analog PPCs, diazo copiers, scanners, MFPs(multifunctional printers), laser printers and software Network System Solutions Personal computers, servers, network systems and network related software Industrial Products Thermal media, optical equipment, semiconductor devices, electronic components and measuring equipment Other Digital cameras *Product lines included in Product Category was changed in the first quarter of fiscal year 2011. Service&Support, such as MDS(Managed Document Services) was changed from Network System Solutions to Imaging Solutions. The reclassification was made to the prior year's figures to conform with the current year's presentation. A2 2. Forecast of Consolidated Performance (Billions of yen) Half year ended Net sales Gross profit Operating income Income before income taxes Net income (loss) attributable to Ricoh Company, Ltd. Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-diluted (yen) Capital expenditures Depreciation for tangible fixed assets R&D expenditures Exchange rate (Yen/US$) Exchange rate (Yen/EURO) Half year ending Year ending Sept. 30, 2011 Change March 31, 2012 Change March 31, 2012 Change Results % Forecast % Forecast % 938.8 386.2 -1.7 -7.7 -3.3 -4.1 - 1,011.2 393.7 38.7 34.2 4.1 1.7 74.5 97.3 1,950.0 780.0 37.0 26.5 0.4 -1.3 -38.5 -41.6 -7.3 - 17.3 142.4 10.0 -49.1 -10.15 - 23.93 - 13.78 - -10.15 36.7 30.8 59.5 79.82 113.94 - 23.92 28.3 34.2 55.5 75.00 105.00 - 13.77 65.0 65.0 115.0 77.41 109.47 - 3. Forecast of Consolidated Sales by Product Category (Billions of yen) Half year ending March. 31, 2012 Change Forecast Forecast(*) % <Imaging & Solutions> Imaging Solutions Domestic Overseas Network System Solutions Domestic Overseas Imaging & 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 Change % Forecast Year ending March 31, 2012 Change Forecast(*) % Change % 783.3 284.1 499.2 102.9 93.8 9.1 886.3 377.9 508.3 244.9 202.4 61.0 1.2 5.5 -1.1 17.1 16.9 19.8 2.8 8.1 -0.8 -2.5 -1.5 9.1 827.4 284.1 543.3 103.5 93.8 9.7 931.0 377.9 553.0 269.5 216.4 67.1 6.8 5.5 7.6 17.8 16.9 27.7 8.0 8.1 7.9 7.3 5.3 20.0 1,514.4 542.7 971.6 201.0 183.8 17.2 1,715.4 726.5 988.8 472.8 396.9 119.0 -1.1 3.3 -3.5 10.8 10.1 19.2 0.1 5.0 -3.2 -7.3 -0.6 6.4 1,587.6 542.7 1,044.8 201.8 183.8 18.0 1,789.4 726.5 1,062.8 524.2 412.1 126.4 3.6 3.3 3.8 11.3 10.1 24.7 4.4 5.0 4.1 2.8 3.2 13.0 50.1 29.2 20.9 6.1 7.0 7.8 -1.9 -5.2 3.1 7.0 2.0 1.2 52.0 29.2 22.8 6.8 7.4 8.5 1.8 -5.2 12.6 20.3 8.8 10.2 100.5 57.3 43.1 12.1 13.7 17.2 -5.9 -12.3 4.3 4.4 1.3 6.7 103.3 57.3 45.9 13.6 14.1 18.1 -3.2 -12.3 11.1 16.9 4.9 12.1 74.6 63.3 11.3 3.0 6.6 1.7 1,011.2 470.5 540.7 254.1 216.0 70.5 29.3 12.4 690.1 130.4 4.1 7.7 1.2 -1.2 1.5 9.5 75.6 63.3 12.3 3.3 7.1 1.7 1,058.6 470.4 588.1 279.7 231.0 77.3 30.9 12.4 755.9 138.1 9.0 7.7 10.0 8.8 8.5 20.2 134.0 121.0 12.9 3.2 7.2 2.4 1,950.0 905.0 1,045.0 488.3 417.9 138.7 9.9 2.3 258.7 711.7 612.7 11.7 0.4 3.3 -2.0 -6.5 1.0 6.5 135.0 121.0 14.0 3.6 7.8 2.5 2,027.8 905.0 1,122.8 541.5 434.1 147.1 10.8 2.3 287.9 803.0 666.7 18.0 4.4 3.3 5.3 3.7 4.9 13.0 * Excluding foreign exchange impact A3