July 31, 2012 QUARTERLY REPORT First Quarter ended June 30, 2012 (Results for the Period from April 1, 2012 to June 30, 2012) Performance Outline (Consolidated) (Billions of yen) Three months ended June 30, 2011 Results Domestic sales Overseas sales Net sales Gross profit Operating income Income before income taxes Net income attributable to Ricoh Company, Ltd. Exchange rate (Yen/US$) Exchange rate (Yen/EURO) Net income attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) Net income 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 Ricoh Company, Ltd. shareholders' equity ratio (%) Ricoh Company, Ltd. shareholders' equity per share (yen) Change Year ending March 31, 2013 Forecast Change 215.3 252.0 467.3 197.5 11.3 9.2 4.9 215.4 243.9 459.3 189.8 14.2 12.2 6.5 0.1% -3.2% -1.7% -3.9% 26.1% 32.2% 32.5% 901.0 1,019.0 1,920.0 760.0 70.0 62.5 33.0 1.6% 0.2% 0.9% 1.0% - 81.71 117.62 80.23 103.06 -1.48 -14.56 76.31 100.77 -2.77 -8.28 6.80 9.02 2.22 45.51 106.93 6.79 9.02 2.23 45.51 106.93 4.8 -24.9 12.9 162.7 8.8 -24.1 12.4 148.5 3.9 0.7 -0.5 -14.2 - - 16.8 15.6 28.0 19.1 14.7 27.0 2.3 -0.9 -0.9 83.0 65.0 117.0 9.7 0.1 -2.0 March 31, 2012 Total assets Ricoh Company, Ltd. shareholders' equity Interest-bearing debt Three months ended June 30, 2012 Results June 30, 2012 Change 2,289.3 822.7 741.8 2,243.1 792.4 758.8 -46.2 -30.2 16.9 35.9 35.3 -0.6 1,134.64 1,092.90 -41.74 Ricoh Company, Ltd. * The Company bases the forecast estimates for the fiscal year ending March 31, 2013 above upon information currently available to management, which involves risks and uncertainties that could cause actual results to differ materially from those projected. *During the previous fiscal year, Ricoh has accounted for subsidiaries that changed their fiscal year-ends from December 31 to March 31 as if their fiscal year-ends in prior years were March 31 and has restated consolidated financial statements for the first quarter of fiscal year 2011. 1 Ricoh Company, Ltd. and Consolidated Subsidiaries Financial Highlights for the First Quarter Ended June 30, 2012 (U.S. GAAP Financial Information) 1. Results for the Period from April 1, 2012 to June 30, 2012 (1) Operating Results Three months ended June 30, 2011 467,393 -3.2 11,326 -48.2 9,287 -40.1 4,933 -32.7 (Millions of yen) Three months ended June 30, 2012 459,387 -1.7 14,281 26.1 12,275 32.2 6,537 32.5 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 attributable to Ricoh Company, Ltd. (% change from the previous corresponding period) Net income attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) 6.80 Net income attributable to Ricoh Company, Ltd. shareholders per share-diluted (yen) 6.79 Notes: i. Comprehensive income: ¥ -23,251 million ( - %) (¥ -661 million ( - %) in income in previous fiscal year) (2) Financial Position March 31, 2012 2,289,358 879,018 822,704 35.9 Total assets Total equity Ricoh Company, Ltd. shareholders' equity Ricoh Company, Ltd. shareholders' equity ratio (%) 9.02 9.02 (Millions of yen) June 30, 2012 2,243,118 849,272 792,438 35.3 2. Dividend information Year ended Year ending March 31, 2012 March 31, 2013 (Results) (Forecast) Cash dividends, applicable to the year (yen) Interim (yen) Year-end (yen) 25.00 16.50 8.50 25.00 12.50 12.50 3. Forecast of Operating Results from April 1, 2012 to March 31, 2013 Half year ending September 30, 2012 Net sales 940,000 Operating income 30,000 Income before income taxes 26,600 Net income attributable to Ricoh Company, Ltd. 13,500 Net income attributable to Ricoh Company, Ltd. shareholders per share (yen) 18.62 (Millions of yen) Year ending March 31, 2013 1,920,000 70,000 62,500 33,000 Notes: Revision of expected dividends during this period: No 45.51 Notes: Revision of forecast of consolidated operating results during this period: No 4. Others (1) Changes in significant subsidiaries: No (2) Adoption of concise quarterly accounting method or procedure: No (3) Changes in accounting method: Yes *See note (3) Changes in accounting method, changes in accounting estimate and reclassifications:, 4. Other in the attachment. (4) Number of common stock outstanding (including treasury stock): As of June 30, 2012 744,912,078 shares As of March 31, 2012 744,912,078 shares (5) Number of treasury stock: As of June 30, 2012 19,836,438 shares As of March 31, 2012 19,831,060 shares (6) Average number of common stock: Three months ended June 30, 2012 725,077,330 shares Three months ended June 30, 2011 725,502,674 shares 2 Consolidated Performance 1. Operating results *Overview Consolidated net sales of Ricoh Group for the first quarter of fiscal year 201 2 (the three months period from April 1, 2012 to June 30, 2012) decreased by 1.7% as compared to the previous corresponding period, to ¥ 459.3 billion. During this quarter, the average yen exchange rates were ¥80.23 against the U.S. dollar (up ¥ 1.48) and ¥103.06 against the Euro (up ¥14.56). Net sales would have increased by 1.9% excluding impact of such foreign currency exchange fluctuation. As for the Japanese economy, although unpredictable situation remained due to the sharp appreciation of the Yen against the U.S. dollar and the Euro and the downturn in overseas economy, the recovery in domestic demand has been shown. Under the severe situation, although domestic sales in the Imaging & Solutions and the Industrial Products decreased from the previous corresponding period, domestic sales in the Other increased due to the acquisition of the PENTAX imaging systems business. Consequently, overall sales in Japan increased by 0.1% as compared to the previous corresponding period. As for the overseas economy, recovery from the recession is getting slower in the Americas and growth in the Asia including China has shown signs of slowdown. In Europe, it remained uncertain due to the protracted financial crisis in some countries. Ricoh continued to face the severe business environment in the Americas and Europe due to the appreciation of the Yen. Under such situation, sales in the Americas increased by 2.8% as compared to the previous corresponding period (4.7%, excluding foreign currency exchange fluctuation). Sales in Europe, Middle East and Africa decreased by 11.6% due primarily to the sharp appreciation of the Yen against the Euro as well as uncertain situation in European economy, however, excluding the net effect of the foreign currency exchange rate fluctuations, sales in this region would have increased by 0.8%. Sales in Other region, which includes China, South East Asia and Oceania, increased by 3.6% (7.6%, excluding foreign currency exchange fluctuation). As a result, sales in the overseas market decreased by 3.2% as compared to the previous corresponding period. Excluding effects of foreign currency fluctuations, net sales in overseas would have increased by 3.4% as compared to the previous corresponding period. Gross profit decreased by 3.9% as compared to the previous corresponding period, despite ongoing cost reduction efforts, to ¥189.8 billion due primarily to the appreciation of the Yen. Selling, general and administrative expenses decreased by 5.7% as compared to the previous corresponding period, to ¥175.6 billion due primarily to group-wide cost reduction efforts. As a result, operating income increased by 26.1% as compared to the previous corresponding period, to ¥14.2 billion. For other (income) expenses, interest and dividend income increased as compared to the previous corresponding period. Foreign exchange loss also increased. As a result, income before income taxes increased by 32.2% as compared to the previous corresponding period, to ¥12.2 billion. As a result, net income attributable to Ricoh Company, Ltd. increased by 32.5% as compared to the previous corresponding period, to ¥6.5 billion. Comprehensive loss attributable to Ricoh Company, Ltd. increased due primarily to an increase in foreign exchange translation adjustment loss as a result of the appreication of the Yen. 3 *Conditions by Product Line Imaging & Solutions (Sales down 3.1% to ¥400.5 billion) Office Imaging (Sales down 3.6% to ¥321.7 billion) Sales in this category decreased by 3.6% as compared to the previous corresponding period, to ¥321.7 billion. Sales of color and monochrome products in MFPs decreased as compared to the previous corresponding period. As for laser printers, sales of color products decreased while sales of monochrome products increased. Production Printing (Sales down 1.8% to ¥34.6 billion) Sales in this category decreased by 1.8% as compared to the previous corresponding period, to ¥34.6 billion due primarily to the appreciation of the Yen, despite sales volume mainly in cut sheet products increased both in Japan and overseas market. Excluding the net effect of the foreign currency exchange rate fluctuations, sales in this category would have increased by 2.2%. Network System Solutions (Sales down 0.3% to ¥44.1 billion) Sales in this category decreased by 0.3% as compared to the previous corresponding period, to ¥44.1 billion. Although sales in overseas increased due primarily to the increased sales in software and IT services, sales in Japan decreased. As a result, sales in the Imaging & Solutions segment decreased by 3.1% as compared to the previous corresponding period, to ¥ 400.5 billion. Operating income increased by 9.6% as compared to the previous corresponding period, to ¥30.7 billion due primarily to the decreased selling, general and administrative expenses which was resulted from group-wide cost reduction efforts. Industrial Products (Sales down 6.7% to ¥23.5 billion) Sales in the Industrial Products segment decreased by 6.7% as compared to the previous corresponding period, to ¥23.5 billion. Sales of semiconductor devices and electronic components decreased as compared to the previous corresponding period although sales of thermal media increased. As a result, operating loss in the Industrial Products segment amounted to ¥0.4 billion (operating loss ¥0.4 billion for the previous corresponding period). Other (Sales up 22.4% to ¥35.3 billion) Sales in the Other segment increased by 22.4% as compared to the previous corresponding period, to ¥35.3 billion due primarily to the acquisition of the PENTAX imaging systems business. As a result operating loss in the Other segment amounted to ¥0.3 billion (operating loss ¥0.3 billion for the previous corresponding period). 2. Financial Position *Assets, Liabilities and Equity For Assets, inventories increased from the end of the previous fiscal year due partly to the initial stock for new products in the Other business segment. The yen equivalent of foreign-currency-denominated assets decreased due to the appreciation of the Yen developed from the previous fiscal year. As a result, total assets decreased by ¥46.2 billion, to ¥2,243.1 billion. For Liabilities, trade payables decreased although the interest-bearing debt increased. As a result, total liabilities decreased by ¥ 16.4 billion, to ¥1,393.8 billion. For Total Equity, 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 ¥29.7 billion from the end of the previous fiscal year, to ¥849.2 billion. *Cash Flows (Three months from April 1, 2012 to June 30, 2012) Net cash provided by operating activities in this period increased by ¥3.9 billion as compared to the previous corresponding period, to ¥8.8 billion due primarily to the increased income before income taxes. Net cash used in investing activities in this period decreased by ¥0.7 billion as compared to the previous corresponding period, to ¥ 24.1 billion. As a result, free cash outflows generated by operating and investing activities in this period decreased by ¥4.7 billion as compared to the previous corresponding period, to¥15.3 billion. Net cash provided by financing activities in this period decreased by ¥0.5 billion as compared to the previous corresponding period, to ¥12.4 billion. As a result, cash and cash equivalents at the end of this first quarter decreased by ¥7.7 billion as compared to the end of the previous fiscal year, to ¥148.5 billion. 4 3. Forecast for the entire fiscal year Ricoh assumes exchange rates of ¥75.00 against the U.S. dollar and of ¥100.00 against the Euro for the period from second quarter onward. Ricoh revised its exchange rate against Euro reflecting the recent drastic exchange rate fluctuation, which was revised from the forecast that announced in April 2012 (¥105.00 against Euro assumed as of April). Ricoh has not revised its forecast of business results for the full fiscal year ending March 31, 2013 from the forecast that announced in April 2012. This forecast reflects the business result for the three months ended June 30, 2012 and the favorable progress on group-wide cost reduction efforts even though the net effect due to the appreciation of the Yen against the Euro is expected. The actual exchange rates during the first quarter were incorporated in annual exchange rates assumption. Our performance forecast for fiscal year 2013 is as follows: Exchange Rate Assumptions for the full year ending March 31, 2013 US$ 1 = ¥76.31 (¥79.08 in previous fiscal year) EURO 1 = ¥100.77 (¥109.05 in previous fiscal year) (Billions of yen) Domestic sales Overseas sales Net sales Gross profit Operating income (loss) Income (loss) before income taxes Net income (loss) attributable to Ricoh Company, Ltd. Half year ending Half year ended September 30, 2011 September 30, 2012 (Results) (Forecast) 434.5 445.0 504.5 495.0 939.0 940.0 386.8 380.0 -2.0 30.0 -9.7 26.6 -8.7 Change 2.4% -1.9% 0.1% -1.8% - 13.5 - Year ending Year ended March 31, 2012 March 31, 2013 (Results) (Forecast) 886.4 901.0 1,017.0 1,019.0 1,903.4 1,920.0 752.6 760.0 -18.0 70.0 -31.9 62.5 -44.5 Change 1.6% 0.2% 0.9% 1.0% - 33.0 * Ricoh bases the forecast estimates for the year ending March 31, 2013 above upon information currently available to management, which involves risks and uncertainties that could cause actual results to differ materially from those projected. 4. Other (1) Changes in significant subsidiaries: Not applicable (2) Adoption of concise quarterly accounting method or procedure: Not applicable (3) Changes in accounting method, changes in accounting estimate and reclassifications: Ricoh adopted Accounting Standards Codification 220 as from April 1 2012, which was revised based on Accounting Standards Update (ASU) 2011-05 and 2011-12. ASU 2011-05 requires an entity to present net income and other comprehensive income either in a single continuous statement or in two separate, but consecutive, statements. This ASU also requires separate presentation in both net income and other comprehensive income of reclassification adjustments for items that are reclassified from other comprehensive income to net income. ASU 2011-12 defers the effective date for only the presentation requirements related to reclassifications in ASU 2011-05. Ricoh has presented this requirement in two separate, but consecutive statements. Management believes this adoption has not made a material effect on Ricoh's consolidated financial statements. The Company and its most of subsidiaries in Japan changed depreciation method of property, plant and equipment from declining-balance method to straight-line method for the period beginning after April 1, 2012. Management believes that straight-line method is appropriate in line with future use of property, plant and equipment. The effect generated from this change will be accounted for the periods onward because the change in depreciation method is applicable to the change in accounting estimate. Management believes this change has not made a material effect on Ricoh's consolidated financial statements. During the previous fiscal year, Ricoh has accounted for subsidiaries that changed their fiscal year-ends from December 31 to March 31 as if their fiscal year-ends in prior years were March 31 and has restated prior-year consolidated financial statements for the first quarter of fiscal year 2011. 5 - 5. Consolidated Financial Statements (1) Consolidated Balance Sheets Assets March 31, 2012 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 June 30, 2012 158,671 686,930 195,009 65,896 1,106,506 152,825 665,871 199,426 69,007 1,087,129 -5,846 -21,059 4,417 3,111 -19,377 268,527 468,004 446,321 1,182,852 2,289,358 266,275 465,270 424,444 1,155,989 2,243,118 -2,252 -2,734 -21,877 -26,863 -46,240 156,210 2,461 148,501 4,324 Liabilities and Equity March 31, 2012 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 US$ 1 EURO 1 6 (Millions of yen) Change June 30, 2012 (Millions of yen) Change 252,209 216,432 204,383 673,024 235,769 232,276 194,828 662,873 -16,440 15,844 -9,555 -10,151 525,435 164,757 47,124 737,316 1,410,340 526,566 163,007 41,400 730,973 1,393,846 1,131 -1,750 -5,724 -6,343 -16,494 135,364 186,083 742,549 -204,175 -37,117 822,704 56,314 879,018 2,289,358 135,364 186,083 742,921 -234,811 -37,119 792,438 56,834 849,272 2,243,118 372 -30,636 -2 -30,266 520 -29,746 -46,240 March 31, 2012 3,681 -67,578 -1,153 -139,125 June 30, 2012 2,986 -67,813 -1,381 -168,603 Change -695 -235 -228 -29,478 March 31, 2012 ¥82.19 ¥109.80 June 30, 2012 ¥79.31 ¥98.74 (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income Consolidated Statements of Income Net sales Cost of sales Percentage of net sales (%) Gross profit Percentage of net sales (%) Selling, general and administrative expenses Percentage of net sales (%) Operating income Percentage of net sales (%) Other (income) expenses Interest and dividend income Percentage of net sales (%) Interest expense Percentage of net sales (%) Other, net Percentage of net sales (%) Income before income taxes, 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 Percentage of net sales (%) Net income attributable to noncontrolling interests Percentage of net sales (%) Net income attributable to Ricoh Company, Ltd. Percentage of net sales (%) (Millions of yen) Three months ended June 30, 2011 467,393 269,802 57.7 197,591 42.3 186,265 39.9 11,326 2.4 Three months ended June 30, 2012 459,387 269,489 58.7 189,898 41.3 175,617 38.2 14,281 3.1 607 0.1 1,463 0.3 1,183 0.2 842 0.2 1,521 0.3 1,327 0.3 9,287 2.0 3,171 0.7 -8 -0.0 6,108 1.3 1,175 0.2 4,933 1.1 12,275 2.7 4,669 1.0 41 0.0 7,647 1.7 1,110 0.3 6,537 1.4 Three months ended June 30, 2011 6,108 Three months ended June 30, 2012 7,647 -697 748 -529 -6,291 -6,769 -661 1,115 -1,776 -699 -255 -289 -29,655 -30,898 -23,251 848 -24,099 June 30, 2011 ¥81.71 ¥117.62 June 30, 2012 ¥80.23 ¥103.06 Consolidated Statements of Comprehensive Income Consolidated net income Other comprehensive income (loss), net of tax Net unrealized holding losses on available-for-sale securities Pension liability adjustments Net unrealized losses on derivative instruments Foreign currency translation adjustments 7 % -1.7 -0.1 -7,693 -3.9 -10,648 -5.7 2,955 26.1 235 38.7 58 4.0 144 12.2 2,988 32.2 1,498 47.2 49 - 1,539 25.2 -65 -5.5 1,604 32.5 (Millions of yen) Comprehensive loss Comprehensive income attributable to noncontrolling interests Comprehensive loss attributable to Ricoh Company, Ltd. Reference : Exchange rate US$ 1 EURO 1 Change -8,006 -313 Change 1,539 -2 -1,003 240 -23,364 -24,129 -22,590 -267 -22,323 Consolidated Sales by Product Category (Millions of yen) Three months ended June 30, 2011 <Imaging & Solutions> Office Imaging Percentage of net sales (%) Production Printing 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 (%) Three months ended June 30, 2012 Change % 333,780 71.4 35,277 7.5 44,293 9.5 413,350 88.4 321,758 70.0 34,648 7.5 44,144 9.6 400,550 87.1 -12,022 -3.6 -629 -1.8 -149 -0.3 -12,800 -3.1 25,199 5.4 23,520 5.1 -1,679 -6.7 28,844 6.2 467,393 100.0 35,317 7.8 459,387 100.0 6,473 22.4 -8,006 -1.7 *Each category includes the following product line: Office Imaging MFPs (multifunctional printers), copiers, laser printers, digital duplicators, facsimile, scanners, related parts & supplies, services, support and software Production Printing Cut sheet printer, continuous feed printer, related parts & supplies, services, support and software Network System Solutions Personal computers, servers, network equipment, related services, support and software Industrial Products Thermal media, optical equipment, semiconductor devices and electronic components Other Digital cameras *Product Category in Imaging & Solutions was reclassified as Office Imaging, Production Printing and Network System Solutions in this fiscal year (Imaging Solutions and Network System Solutions as previous category). Certain products were reclassified into Network System Solutions and Industrial Products from Other in this fiscal year. The above reclassification was made to the prior year's figures. Consolidated Sales by Geographic Area <Domestic> Percentage of net sales (%) <Overseas> Percentage of net sales (%) The Americas Percentage of net sales (%) Europe, Middle East and Africa Percentage of net sales (%) Other Percentage of net sales (%) Grand Total Percentage of net sales (%) (Millions of yen) Three months ended June 30, 2011 215,312 46.1 252,081 53.9 114,243 24.4 107,718 23.0 30,120 6.5 467,393 100.0 Three months ended June 30, 2012 215,449 46.9 243,938 53.1 117,467 25.6 95,253 20.7 31,218 6.8 459,387 100.0 *Middle East and Africa were reclassified from Other into Europe in this fiscal year. The reclassification was made to the prior year's figures. Reference : Exchange rate US$ 1 EURO 1 ¥81.71 ¥117.62 8 ¥80.23 ¥103.06 Change % 137 0.1 -8,143 -3.2 3,224 2.8 -12,465 -11.6 1,098 3.6 -8,006 -1.7 (3) Consolidated Statements of Cash Flows (Millions of yen) Three months ended Three months ended June 30, 2011 I. Cash Flows from Operating Activities: Consolidated net income 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 Pension and severance costs, less payments Changes in assets and liabilities— Decrease in trade receivables Increase in inventories Increase 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 Increase(Decrease) in short-term borrowings, net Repayment of long-term debt securities Dividends paid Payment for purchase of treasury stock Other, net Net cash provided in financing activities IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents V. Net Decrease in Cash and Cash Equivalents VI. Cash and Cash Equivalents at Beginning of Year VII. Cash and Cash Equivalents at End of Period (4) Notes on premise going concern Not applicable 9 June 30, 2012 6,108 7,647 22,199 8 -3,758 541 20,891 -41 1,686 -1,734 8,488 -18,159 -2,329 -12,335 1,037 -11,384 -5,384 -13,189 643 3,468 4,874 4,312 5,020 8,861 250 582 -16,846 -3,253 -59 10 -266 -4,787 -24,951 -19,195 -3,609 -8 -2,028 97 -24,161 2,569 -17,358 40,238 -237 -11,971 -5 -301 12,935 -2,360 -9,502 172,221 162,719 25,564 -18,744 12,098 -6,163 -5 -327 12,423 -4,832 -7,709 156,210 148,501 (5) Segment Information (a) Operating Segments Information (Millions of yen) Three months ended June 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 loss Operating loss on sales in Industrial Products (%) Other: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating loss Operating loss 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 Operating income on consolidated net sales (%) Three months ended June 30, 2012 413,350 413,350 385,300 28,050 400,550 400,550 369,808 30,742 6.8 7.7 25,199 1,066 26,265 26,746 -481 23,520 988 24,508 24,926 -418 -1.8 -1.7 28,844 28,844 29,231 -387 35,317 35,317 35,621 -304 -1.3 -0.9 -1,066 -1,066 % -12,800 -12,800 -15,492 2,692 -3.1 -4.0 9.6 -1,679 -78 -1,757 -1,820 63 -6.7 -7.3 -6.7 -6.8 - 6,473 6,473 6,390 83 22.4 22.4 21.9 - -988 -988 78 78 - -1,066 15,856 14,790 -15,856 -988 15,739 14,751 -15,739 78 -117 -39 117 - 467,393 467,393 456,067 11,326 459,387 459,387 445,106 14,281 -8,006 -8,006 -10,961 2,955 2.4 3.1 *Certain products were reclassified into Network System Solutions and Industrial Products from Other in this fiscal year. The above reclassification was made to the prior year's figures. 10 Change -3.1 -1.7 -1.7 -2.4 26.1 (b) Geographic Segments Information (Millions of yen) Three months ended June 30, 2011 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 (loss) Operating income on sales in the Americas (%) Europe, Middle East and Africa: 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 Operating income on consolidated net sales (%) 219,224 87,078 306,302 300,061 6,241 219,007 97,196 316,203 307,655 8,548 2.0 2.7 114,198 890 115,088 119,406 -4,318 117,447 1,555 119,002 118,102 900 -3.8 0.8 106,429 602 107,031 100,481 6,550 94,369 172 94,541 88,336 6,205 6.1 6.6 27,542 34,195 61,737 60,289 1,448 28,564 46,834 75,398 72,559 2,839 2.3 3.8 -122,765 -122,765 -124,170 1,405 Not applicable 11 Change % -217 10,118 9,901 7,594 2,307 -0.1 11.6 3.2 2.5 37.0 3,249 665 3,914 -1,304 5,218 2.8 74.7 3.4 -1.1 - -12,060 -430 -12,490 -12,145 -345 -11.3 -71.4 -11.7 -12.1 -5.3 1,022 12,639 13,661 12,270 1,391 3.7 37.0 22.1 20.4 96.1 -145,757 -145,757 -141,546 -4,211 -22,992 -22,992 -17,376 -5,616 - 467,393 467,393 456,067 11,326 459,387 459,387 445,106 14,281 -8,006 -8,006 -10,961 2,955 2.4 3.1 *Middle East and Africa were reclassified from Other into Europe in this fiscal year. The reclassification was made to the prior year's figures. (6) Notes on significant changes in Equity Three months ended June 30, 2012 -1.7 -1.7 -2.4 26.1 -APPENDIX- (Three months ended June 30, 2012) 1. Consolidated Sales by Product Category (Millions of yen) Three months ended June 30, 2011 <Imaging & Solutions> Office Imaging Percentage of net sales (%) Domestic Overseas Production Printing 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, Middle East and Africa Other <Industrial Products> Industrial Products Percentage of net sales (%) Domestic Overseas The Americas Europe, Middle East and Africa Other <Other> Other Percentage of net sales (%) Domestic Overseas The Americas Europe, Middle East and Africa Other Grand Total Percentage of net sales (%) Domestic Percentage of net sales (%) Overseas Percentage of net sales (%) The Americas Percentage of net sales (%) Europe, Middle East and Africa Percentage of net sales (%) Other Percentage of net sales (%) Reference: Exchange rate US$ 1 EURO 1 Three months ended June 30, 2012 333,780 71.4 125,075 208,705 35,277 7.5 7,874 27,403 44,293 9.5 40,294 3,999 413,350 88.4 173,243 240,107 111,153 103,817 25,137 321,758 70.0 124,021 197,737 34,648 7.5 8,256 26,392 44,144 9.6 39,451 4,693 400,550 87.1 171,728 228,822 112,988 90,279 25,555 25,199 5.4 13,994 11,205 3,049 3,591 4,565 Change % Change excluding exchange impact % -12,022 -3.6 2,071 0.6 -1,054 -10,968 -629 -0.8 -5.3 -1.8 -1,054 3,125 787 -0.8 1.5 2.2 382 -1,011 -149 4.9 -3.7 -0.3 382 405 363 4.9 1.5 0.8 -843 694 -12,800 -2.1 17.4 -3.1 -843 1,206 3,221 -2.1 30.2 0.8 -1,515 -11,285 1,835 -13,538 418 -0.9 -4.7 1.7 -13.0 1.7 -1,515 4,736 3,912 -833 1,657 -0.9 2.0 3.5 -0.8 6.6 23,520 5.1 12,039 11,481 3,456 3,339 4,686 -1,679 -6.7 -1,250 -5.0 -1,955 276 407 -252 121 -14.0 2.5 13.3 -7.0 2.7 -1,955 705 470 144 91 -14.0 6.3 15.4 4.0 2.0 28,844 6.2 28,075 769 41 310 418 467,393 100.0 215,312 46.1 252,081 53.9 114,243 24.4 107,718 23.0 30,120 6.5 35,317 7.8 31,682 3,635 1,023 1,635 977 459,387 100.0 215,449 46.9 243,938 53.1 117,467 25.6 95,253 20.7 31,218 6.8 6,473 22.4 6,727 23.3 3,607 2,866 982 1,325 559 -8,006 12.8 372.7 427.4 133.7 -1.7 3,607 3,120 1,010 1,555 555 8,698 12.8 405.7 501.6 132.8 1.9 137 0.1 137 0.1 -8,143 -3.2 8,561 3.4 3,224 2.8 5,392 4.7 -12,465 -11.6 866 0.8 1,098 3.6 2,303 7.6 ¥81.71 ¥117.62 ¥80.23 ¥103.06 ¥-1.48 ¥-14.56 *Each category includes the following product line: MFPs (multifunctional printers), copiers, laser printers, digital duplicators, facsimile, scanners, Office Imaging related parts & supplies, services, support and software Production Printing Cut sheet printer, continuous feed printer, related parts & supplies, services, support and software Network System Solutions Personal computers, servers, network equipment, related services, support and software Industrial Products Thermal media, optical equipment, semiconductor devices and electronic components Other Digital cameras *Product Category and product lines included in Product Category was changed in this fiscal year. Product Category in Imaging & Solutions was reclassified as Office Imaging, Production Printing and Network System Solutions in this fiscal year (Imaging Solutions and Network System Solutions as previous category). Certain products were reclassified into Network System Solutions and Industrial Products from Other in this fiscal year. The above reclassification was made to the prior year's figures. *Geographic area was changed in this fiscal year. Middle East and Africa were reclassified from Other into Europe in this fiscal year. The reclassification was made to the prior year's figures. A1 2. Forecast of Consolidated Performance (Billions of yen) Three months ended Net sales Gross profit Operating income Income before income taxes Net income attributable to Ricoh Company, Ltd. Net income attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) Net income 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) Three months ending Half year ending Year ending June 30, 2011 Change Sept. 30, 2012 Change Sept. 30, 2012 Change March 31, 2013 Change Results % Forecast % Forecast % Forecast % 459.3 189.8 14.2 12.2 -1.7 -3.9 26.1 32.2 480.6 190.1 15.7 14.3 1.9 0.4 - 940.0 380.0 30.0 26.6 0.1 -1.8 - 1,920.0 760.0 70.0 62.5 0.9 1.0 - 6.5 32.5 6.9 - 13.5 - 33.0 - 9.02 - 9.60 - 18.62 - 45.51 - 9.02 19.1 14.7 27.0 80.23 103.06 - 9.60 24.8 16.2 31.9 75.00 100.00 - 18.62 44.0 31.0 59.0 77.62 101.53 - 45.51 83.0 65.0 117.0 76.31 100.77 - 3. Forecast of Consolidated Sales by Product Category (Billions of yen) Half year ending September 30, 2012 Change Change Forecast(*) Forecast % % <Imaging & Solutions> Office Imaging Domestic Overseas Production Printing Domestic Overseas Network System Solutions Domestic Overseas Imaging & Solutions Total Domestic Overseas The Americas Europe, Middle East and Africa Other <Industrial Products> Industrial Products Domestic Overseas The Americas Europe, Middle East and Africa Other <Other> Other Domestic Overseas The Americas Europe, Middle East and Africa Other Grand Total Domestic Overseas The Americas Europe, Middle East and Africa Other Year ending March 31, 2013 Change Forecast(*) Forecast % Change % 639.0 242.8 396.2 71.9 16.4 55.6 103.5 93.3 10.3 814.5 352.4 462.1 227.0 180.3 54.9 -3.0 -0.2 -4.6 -1.1 5.7 -3.0 5.6 3.7 26.5 -1.8 1.1 -3.9 -0.5 -10.1 5.4 666.0 242.8 423.2 75.1 16.4 58.7 104.4 93.3 11.1 845.4 352.4 493.0 233.5 202.3 57.2 1.1 -0.2 1.9 3.2 5.7 2.5 6.4 3.7 36.5 1.9 1.1 2.6 2.4 0.9 9.9 1,306.7 495.7 811.0 149.3 34.2 115.2 210.5 187.6 23.0 1,666.6 717.4 949.2 454.1 385.2 110.0 -1.3 -0.2 -1.9 0.5 5.1 -0.7 5.7 3.0 34.4 -0.3 0.9 -1.1 0.1 -4.4 6.2 1,351.2 495.7 855.5 155.1 34.2 120.9 211.9 187.6 24.3 1,718.1 717.4 1,000.7 470.2 415.7 114.8 2.1 -0.2 3.5 4.4 5.1 4.2 6.3 3.0 42.0 2.8 0.9 4.3 3.7 3.2 10.9 49.7 27.0 22.7 6.4 6.7 9.6 -1.7 -4.0 1.2 2.2 0.3 1.1 50.7 27.0 23.7 6.5 7.4 9.8 0.3 -4.0 5.8 4.8 10.7 2.9 97.1 50.6 46.5 13.3 13.5 19.7 -1.0 -5.1 4.0 4.0 4.0 4.0 99.1 50.6 48.5 13.7 14.4 20.4 1.1 -5.1 8.5 7.7 10.9 7.5 75.8 65.6 10.2 3.2 4.2 2.8 940.0 445.0 495.0 236.5 191.3 67.2 28.1 13.6 600.1 539.7 287.8 0.1 2.4 -1.9 0.9 -8.0 8.0 76.6 65.6 11.0 3.4 4.8 2.9 972.7 445.0 527.7 243.4 214.5 69.8 29.4 13.6 651.6 619.8 301.3 3.6 2.4 4.6 3.9 3.1 12.2 156.3 133.0 23.3 6.1 10.0 7.2 1,920.0 901.0 1,019.0 473.4 408.8 136.8 16.4 9.2 86.7 153.5 79.4 59.8 0.9 1.6 0.2 1.0 -3.0 7.8 157.7 133.0 24.7 6.5 10.8 7.5 1,974.9 901.0 1,073.9 490.4 440.9 142.6 17.4 9.2 97.5 167.1 92.4 66.4 3.8 1.6 5.6 4.6 4.6 12.3 * Excluding foreign exchange impact A2