Consolidated Results

Ricoh Company, Ltd. and Consolidated Subsidiaries
FLASH REPORT (Consolidated. Year ended March 31, 2000) –Translation–
Date of approval for the financial results for the year ended March 31, 2000,
at the Board of Directors' meeting: May 11, 2000
1. Results for the period from April 1, 1999 to March 31, 2000
(1)Operating Results
(Millions of yen)
Net sales.............................................................................................
(% change from previous period)....................................................
Operating income...............................................................................
(% change from previous period)....................................................
Income before income taxes................................................................
(% change from previous period)....................................................
Net income.........................................................................................
(% change from previous period)....................................................
Net income per share-basic (yen)........................................................
Net income per share-diluted (yen).....................................................
Return on equity (%) ..........................................................................
Income before income taxes on total assets (%)...................................
Income before income taxes on net sales (%) ......................................
Note:
Year ended
March 31, 2000
Year ended
March 31, '99
1,447,157
1.5
88,921
20.9
70,393
32.7
41,928
36.8
60.61
56.06
8.1
4.4
4.9
1,425,999
1.6
73,547
-18.0
53,054
-22.5
30,655
1.7
44.33
40.94
6.4
3.2
3.7
i. Equity in income (loss) of affiliates: ¥2,497 million (¥4,095 million in previous period)
ii. Difference between fair value of available-for-sale securities and cost amount: ¥15,643 million
iii. The difference between derivative transaction estimated fair value and carrying amount: ¥2,520 million.
iv. Changes in accounting method, etc.: no change
(2)Financial Position
(Millions of yen)
Total assets.........................................................................................
Shareholders’ equity...........................................................................
Equity ratio (%)..................................................................................
Equity per share (yen) ........................................................................
Year ended
March 31, 2000
Year ended
March 31, '99
1,543,320
541,506
35.1
782.43
1,628,017
487,459
29.9
704.83
(3)Cash Flows
(Millions of yen)
Year ended
March 31, 2000
Cash flows from operating activities ...................................................
Cash flows from investing activities ...................................................
Cash flows from financing activities...................................................
Cash and cash equivalents at End of Year ..........................................
135,640
-28,490
-121,249
111,838
Year ended
March 31, '99
106,708
-89,235
-25,437
130,655
(4) Items relating to the scale of consolidation and the application of the equity method:
Number of consolidated subsidiaries: 258; nonconsolidated subsidiaries: 45; affiliated companies: 24
(5) Changes in accounting method, etc.:
Consolidated subsidiaries: 18 additions; 6 removals
Companies accounted for by the equity method: 3 additions; 16 removals
Notes: Consolidated financial statements of the Company and its consolidated subsidiaries have been prepared in
conformity with accounting principles generally accepted in the United States of America.
Net income per share is calculated based on Statement of Financial Accounting Standards(SFAS) No.128.
2. Forecast of operating results from April 1, 2000 to March 31, 2001
(Millions of yen)
Half year ended
September 30, 2000
Net sales.............................................................................................
Operating income...............................................................................
Income before income taxes................................................................
Net income.........................................................................................
730,000
48,000
41,000
23,500
Year ended
March 31, 2001
1,500,000
100,000
85,000
48,000
Notes: Net income per share (Consolidated) 69.36 yen
Ricoh Co., Ltd. Flash Report
Year ended March 31 ,2000
Group Position
The Ricoh Group comprises 327 companies. Their development, manufacturing, sales, and service activities center
on office equipment (copiers and related supplies and communications and information systems), optical equipment,
and other devices.
The parent company heads development. The parent company and subsidiaries and affiliates maintain an
integrated domestic and international manufacturing structure. Below, we have listed our main product areas and the
positions of key subsidiaries and affiliates.
<Office Equipment>
In this business category, the Company provides products and systems that help enhance the office productivity of
customers. Major products include:
Digital/analog copiers, laser printers, facsimile machines, stencil duplicators, optical disks.
Ricoh also provides solution systems including personal computers and servers, utilizing its information technology.
The Company also provides support, service, and related supplies, as well as use ware including IT environment
setup, network administration, and user support.
[Main Subsidiaries and Affiliates]
Production
Japan...Tohoku Ricoh Co., Ltd.; Ricoh Elemex Corporation, Ricoh Unitechno Co., Ltd.,
Hasama Ricoh Inc., Ricoh Microelectronics Co., Ltd., Ricoh Keiki Co., Ltd.
The Americas...Ricoh Electronics, Inc.
Europe...Ricoh UK Products Ltd. and Ricoh Industrie France S.A.
Other regions...Ricoh Asia Industry (Shenzhen) Ltd., Sindo Ricoh Co., Ltd., Shanghai Ricoh Facsimile Co., Ltd.
Sales and Service
Japan ...Tokyo Ricoh Co., Ltd. Osaka Ricoh Co., Ltd. and 44 other sales companies nationwide,
Ricoh Technosystems Co., Ltd.; NBS Ricoh Co., Ltd.
The Americas...Ricoh Corporation Savin Corporation
Europe...Ricoh Europe B.V., Ricoh Deutschland GmbH, Ricoh UK Ltd., Ricoh France S.A.,
Ricoh Espana S.A., Ricoh Italia S.p.A., Gestetner Holdings PLC
Other regions...Ricoh Hong Kong Ltd., Ricoh Asia Pacific Pte. Ltd., Ricoh Australia Pty, Ltd.,
Ricoh New Zealand Ltd.
<Other Businesses>
Manufacturing and marketing analog cameras and optical lenses, semiconductor devices, and measuring equipment,
and providing leasing and logistics services
[Main Subsidiaries and Affiliates]
Production
Japan...Ricoh Optical Industries Co., Ltd., Ricoh Elemex Corporation
Overseas...Taiwan Ricoh Co., Ltd., Dong Guan Tailien Optical Co., Ltd.
Sales
Ricoh Corporation, Ricoh Photo Products (Asia) Ltd.
Other areas
Ricoh Leasing Company, Ltd., Ricoh Logistics System Co., Ltd.
<Business System Chart>
This group potion can be shown by the following chart.
Ricoh Co., Ltd. Flash Report
Year ended March 31, 2000
Customer
Customer
【Overseas Sales Subsidiaries 】
(The Americas)
RICOH CORPORATION ※
(Europe)
RICOH EUROPE B.V.
RICOH DEUTSCHLAND GmbH.
RICOH UK LTD.
RICOH FRANCE S.A.
RICOH ITALIA S.p.A.
GESTETNER HOLDINGS PLC.※
(Other regions)
RICOH HONG KONG, LTD.
RICOH ASIA PACIFIC PTE,LTD
RICOH AUSTRALIA PTY, LTD.
RICOH NEW ZEALAND LTD.
and so on.
【Domestic Sales
Subsidiaries 】
Hokkaido Ricoh Co., Ltd.
Miyagi Ricoh Co., Ltd.
Saitama Ricoh Co., Ltd..
Tokyo Ricoh Co., Ltd..
Kanagawa Ricoh Co., Ltd..
Aichi Ricoh Co., Ltd..
Osaka Ricoh Co., Ltd..
Hyogo Ricoh Co., Ltd..
Fukuoka Ricoh Co., Ltd..
NBS Ricoh Co., Ltd..
Ricoh Technosystems
Co., Ltd.
and so on.
【Overseas Sales
Subsidiaries】
(The Americas)
RICOH CORPORATION ※
(Europe)
GESTETNER
HOLDINGS PLC. ※
(Other regions)
RICOH PHOTO
PRODUCTS (ASIA) LTD.
and so on.
【Parent
company】
【Parentcompany】
Ricoh
Ricoh Company,
Company, Ltd.
Ltd.
【Domestic Production Subsidiaries】
Tohoku Ricoh Co., Ltd., Hasama Ricoh Inc.,
Ricoh Optical Industries Co., Ltd., Ricoh Unitechno Co., Ltd.,
Ricoh Elemex Corporation, Ricoh Keiki Co., Ltd.,
Ricoh Microelectronics, Co., Ltd.
【Overseas Production Subsidiaries】 【Overseas Production Affiliates】
(The Americas)
(Other regions)
RICOH ELECTRONICS,INC.
SINDO RICOH CO., LTD.
(Europe)
SHANGHAI RICOH FACSIMILE
RICOH UK PRODUCTS LTD.
CO., LTD.
RICOH INDUSTRIE FRANCE S.A. and so on
GR ADVANCED MATERIALS LTD.
(Other regions)
RICOH ASIA INDUSTRY (SHENZHEN) LTD. and so on
【Overseas Production Subsidiaries】
(Other regions)
TAIWAN RICOH CO., LTD.
DONG GUAN TAILIEN
OPTICAL CO., LTD.
and so on
【Other Subsidiaries】
Ricoh Leasing Co., Ltd.
Ricoh Logistics Systems Co., Ltd.
Ricoh San-Ai Service Co., Ltd.
【Other Affiliates】
Coca-Cola West Japan Co., Ltd.
Office
Office Equipment
Equipment
Supply of products and service
Supply of parts and equipment
Other
OtherBusinesses
Businesses
* RICOH CORPORATION and GESTETNER HOLDINDS
PLC.conduct both Office Equipment and Other Businesses.
Ricoh Co., Ltd. Flash Report
Year ended March 31, 2000
Sales by Product Line (Consolidated)
For the years ended March 31, 2000 and 1999.
(Millions of yen)
Year ended
Year ended
March 31, 2000 March 31, '99
Change(%)
Copiers and Related Supplies:
Domestic ..................................................................
Overseas ..................................................................
Total................................................................................
Percentage of net sales (%) ......................................
453,600
416,691
870,291
60.1
450,797
456,111
906,908
63.6
+2,803 (0.6)
-39,420 (-8.6)
-36,617 (-4.0)
Communications and Information Systems:
Domestic ..................................................................
Overseas ......................................................................
Total.................................................................................
Percentage of net sales (%) ......................................
262,186
120,593
382,779
26.5
237,389
106,641
344,030
24.1
+24,797 (10.4)
+13,952 (13.1)
+38,749 (11.3)
Other Businesses:
Domestic ..................................................................
Overseas .....................................................................
Total................................................................................
Percentage of net sales (%) ......................................
157,384
36,703
194,087
13.4
132,789
42,272
175,061
12.3
+24,595 (18.5)
-5,569(-13.2)
+19,026 (10.9)
Total:
Domestic ..................................................................
873,170
820,975
+52,195 (6.4)
Percentage of net sales (%) ......................................
60.3
57.6
Overseas ......................................................................
573,987
605,024
-31,037 (-5.1)
Percentage of net sales (%)........................................
39.7
42.4
The Americas ......................................................
231,181
239,623
-8,442 (-3.5)
Percentage of net sales (%)…………………........
16.0
16.8
Europe .................................................................
258,515
283,373
-24,858 (-8.8)
Percentage of net sales (%)…………………........
17.9
19.9
Other ...................................................................
84,291
82,028
+2,263 (2.8)
Percentage of net sales (%)…………………........
5.8
5.8
Total................................................................................ 1,447,157
1,425,999
+21,158 (1.5)
Percentage of net sales (%).........................................
100.0
100.0
Note:
From the period under review, Ricoh moved optical disc products from Other Businesses to the Communications and
Information Systems category.
In accordance with it, optical disc products business in the fiscal year 1999, ended March 31, is included in the
Communications and Information Systems category.
Fiscal year ended March 31, 1999: Domestic ¥3,316 million; Overseas ¥13,171 million;
Total ¥16,487 million
Ricoh Co., Ltd. Flash Report
Year ended March 31, 2000
(Reference) Consolidated Sales by Category
(Office equipment; other businesses)
For the years ended March 31, 2000 and 1999.
(Millions of yen)
Year ended
Year ended
March 31, 2000 March 31, '99
Change(%)
<Office Equipment>
Imaging Solutions:
Digital Imaging Systems ..............................................
Percentage of net sales (%) .......................................
Domestic ..................................................................
Overseas ..................................................................
546,206
37.7
299,709
246,497
486,310
34.1
266,640
219,670
Other Imaging Systems................................................
Percentage of net sales (%) .......................................
Domestic ..................................................................
Overseas ..................................................................
351,817
24.3
149,221
202,596
467,996
32.8
191,432
276,564
-116,179(-24.8)
Total Imaging Solutions ....................................................
Percentage of net sales (%) ......................................
Domestic ..................................................................
Overseas ..................................................................
898,023
62.1
448,930
449,093
954,306
66.9
458,072
496,234
-56,283 (-5.9)
Networking input/output systems:
Printing Systems ..........................................................
Percentage of net sales (%) .......................................
Domestic ..................................................................
Overseas ..................................................................
141,098
9.8
77,649
63,449
108,902
7.6
58,744
50,158
+32,196 (29.6)
Other Input/Output Systems ..............................................
Percentage of net sales (%) .......................................
Domestic ..................................................................
Overseas ..................................................................
32,010
2.2
9,521
22,489
19,454
1.4
3,610
15,844
+12,556 (64.5)
Total Networking input/output systems..............................
Percentage of net sales (%) ......................................
Domestic......................................................................
Overseas ......................................................................
173,108
12.0
87,170
85,938
128,356
9.0
62,354
66,002
+44,752 (34.9)
Network system solutions ..................................................
Percentage of net sales (%) ......................................
Domestic ..................................................................
Overseas ......................................................................
Office Equipment Total .....................................................
Percentage of net sales (%) .......................................
Domestic ..................................................................
Overseas ......................................................................
181,939
12.6
179,686
2,253
1,253,070
86.6
715,786
537,284
168,276
11.8
167,760
516
1,250,938
87.7
688,186
562,752
+13,663 (8.1)
+59,896 (12.3)
+33,069 (12.4)
+26,827 (12.2)
-42,211(-22.1)
-73,968(-26.7)
-9,142 (-2.0)
-47,141 (-9.5)
+18,905 (32.2)
+13,291 (26.5)
+5,911(163.7)
+6,645 (41.9)
+24,816 (39.8)
+19,936 (30.2)
+11,926 (7.1)
+1,737(336.6)
+2,132 (0.2)
+27,600 (4.0)
+25,468 (-4.5)
Ricoh Co., Ltd. Flash Report
Year ended March 31, 2000
(Reference) Consolidated Sales by Category
(Office equipment; other businesses)(Continued)
For the years ended March 31, 2000 and 1999.
Year ended
Year ended
March 31, 2000 March 31, '99
(Millions of yen)
Change(%)
< Other Businesses >
Other Businesses............................................................. ..
194,087
175,061
+19,026 (10.9)
Percentage of net sales (%) ......................................
13.4
12.3
Domestic ..................................................................
157,384
132,789
+24,595 (18.5)
Overseas ......................................................................
36,703
42,272
-5,569(-13.2)
Grand Total........................................................................... 1,447,157
1,425,999
+21,158 (1.5)
Percentage of net sales (%).........................................
100.0
100.0
Domestic ..................................................................
873,170
820,975
+52,195 (6.4)
Percentage of net sales (%) ......................................
60.3
57.6
Overseas ......................................................................
573,987
605,024
-31,037 (-5.1)
Percentage of net sales (%)........................................
39.7
42.4
The Americas ......................................................
231,181
239,623
-8,442 (-3.5)
Percentage of net sales (%)…………………........
16.0
16.8
Europe .................................................................
258,515
283,373
-24,858 (-8.8)
Percentage of net sales (%)…………………........
17.9
19.9
Other ...................................................................
84,291
82,028
+2,263 (2.8)
Percentage of net sales (%)…………………........
5.8
5.8
Each category includes the following products:
Digital Imaging Systems ............. Digital PPCs, color PPCs, stencil duplicators, facsimile machines, related
supplies and services
Other Imaging Systems ............... Analog PPCs, diazo copiers, and related supplies including thermal paper, and
services
Printing Systems ........................ Multifunctional printers(MFPs), laser printers, related supplies, services and
software
Other Input/Output Systems ........ Optical discs and system scanners
Network System Solutions........... Personal computers, PC servers, network systems, network related software,
And service/support
Other Businesses ......................... Digital cameras, analog cameras, semiconductors
Ricoh Co., Ltd. Flash Report
Year ended March 31, 2000
II. Statements of Income (Consolidated)
For the years ended March 31, 2000 and 1999
(Millions of yen)
Year ended
Year ended
March 31, 2000 March 31, '99
Net sales .........................................................................
1,447,157
Cost of sales ..................................................................
867,148
Percentage of net sales (%) ..........................................
59.9
Gross profit ......................................................................
580,009
Percentage of net sales (%) ..........................................
40.1
Selling, general and administrative expenses........................
491,088
Percentage of net sales (%) ..........................................
33.9
Operating income..............................................................
88,921
Percentage of net sales (%) ..........................................
6.1
Other (income) expenses
Interest and dividend income .......................................
5,997
Percentage of net sales (%) .....................................
0.4
Interest expense ...........................................................
10,181
Percentage of net sales (%) .....................................
0.7
Other, net.....................................................................
14,344
Percentage of net sales (%) .....................................
1.0
Income before income taxes, minority interests and
equity in earnings of affiliates..............................................
70,393
Percentage of net sales (%) ..........................................
4.9
Provision for income taxes...................................................
28,363
Percentage of net sales (%) ..........................................
2.0
Minority interests…………………. ..................................
2,599
Percentage of net sales (%).............................................
0.2
Equity in earnings of affiliates..............................................
2,497
Percentage of net sales (%).............................................
0.2
Net income............................................................................
41,928
Percentage of net sales (%).............................................
2.9
1,425,999
857,423
60.1
568,576
39.9
495,029
34.7
73,547
5.2
5,933
0.4
11,661
0.8
14,765
1.0
53,054
3.7
24,555
1.7
1,939
0.1
4,095
0.3
30,655
2.1
Change (%)
+21,158 (1.5)
+9,725 (1.1)
+11,433 (2.0)
-3,941 (-0.8)
+15,374 (20.9)
+64 (1.1)
-1,480(-12.7)
-421 (-2.9)
+17,339 (32.7)
+3,808 (15.5)
+660 (34.0)
-1,598(-39.0)
+11,273 (36.8)
III. Net Income Per Share (Consolidated)
For the years ended March 31, 2000 and 1999
(Yen)
Year ended
Year ended
March 31, 2000 March 31, '99
Net income per share-basic (yen) ...................................
Net income per share- diluted (yen)...................................
60.61
56.06
44.33
40.94
Change
+16.28
+15.12
Ricoh Co., Ltd. Flash Report
Year ended March 31, 2000
IV. Balance Sheets (Consolidated)
March 31, 2000 and 1999
(1) Assets
(Millions of yen)
March 31, 2000 March 31, '99
Current Assets
Cash and cash equivalents..............................................
Trade receivables ...........................................................
Marketable securities .....................................................
Inventories .....................................................................
Other current assets .......................................................
Total Current Assets............................................................
Fixed Assets
Tangible fixed assets........................................................
Finance receivable ...........................................................
Other Investments and other assets....................................
Total Fixed Assets...............................................................
Total Assets.........................................................................
Change
128,914
341,246
128,768
143,161
37,658
779,747
147,132
347,134
98,246
162,298
82,557
837,367
-18,218
-5,888
+30,522
-19,137
-44,899
-57,620
243,514
372,861
147,198
763,573
1,543,320
264,917
350,384
175,349
790,650
1,628,017
-21,403
+22,477
-28,151
-27,077
-84,697
(2)Liabilities and Minority Interest
(Millions of yen)
March 31, 2000 March 31, '99
Change
Current Liabilities
Trade payable.................................................................
Short-term borrowings ...................................................
Other current liabilities ..................................................
Total Current Liabilities ......................................................
261,100
207,162
123,932
592,194
249,159
308,716
103,331
661,206
+11,941
-101,554
+20,601
-69,012
Fixed Liabilities
Long-term indebtedness....................................................
Estimated retirement allowances......................................
Other fixed liabilities........................................................
Total Fixed Liabilities....................................................... ..
Total Liabilities ...................................................................
Minority Interest…………………………………………….
307,962
37,837
17,463
363,262
955,456
46,358
344,580
82,283
14,831
441,694
1,102,900
37,658
-36,618
-44,446
+2,632
-78,432
-147,444
+8,700
(3) Shareholders’ Investment
(Millions of yen)
March 31, 2000 March 31, '99
Shareholders’ Investment
Common stock ...............................................................
Additional paid-in capital ..............................................
Retained earnings ..........................................................
Accumulated other comprehensive income.....................
Total Shareholders’ Investment..............................................
Change
103,112
154,314
287,182
-3,102
541,506
102,849
154,055
252,863
-22,308
487,459
+263
+259
+34,319
+19,206
+54,047
Total Liabilities and Shareholders’ Investment ...................
1,543,320
1,628,017
-84,697
Note: Accumulated other comprehensive income;
Net unrealized holding gains on
available-for-sale securities ............................................
Minimum pension liability adjustments..........................
Cumulative translation adjustments................................
18,299
-1,600
-19,801
8,944
-18,845
-12,407
+9,355
+17,245
-7,394
V. Retained Earnings
For the years ended March 31, 2000 and 1999
(Millions of yen)
Year ended
March 31, 2000
Retained earnings (beginning balance) ...............................................
Net income.........................................................................................
Cash dividends ...................................................................................
Retained earnings (ending balance) ....................................................
252,863
41,928
7,609
287,182
Year ended
March 31, ‘99
229,817
30,655
7,609
252,863
Ricoh Co., Ltd. Flash Report
Year ended March 31, 2000
VI. Statements of Cash Flow (Consolidated)
For the years ended March 31, 2000 and 1999
(Millions of yen)
Year ended
March 31, 2000
Year ended
March 31, ‘99
I. Cash Flows from Operating Activities:
1. Net income ................................................................................
41,928
30,655
2. Adjustments to reconcile net income to net cash
provided by operating activities—
Depreciation and amortization ................................................
61,946
67,456
Equity in earnings of affiliates, net of dividends received ........
(846)
(2,936)
Estimated retirement allowances, net ......................................
8,618
7,198
Deferred income taxes.............................................................
(18,053)
(3,497)
Loss on disposal and sales of plant and equipment ..................
207
2,285
Changes in assets and liabilities, net of effects from acquisition—
Decrease (increase) in trade receivables............................
(7,794)
5,818
Decrease in inventories ....................................................
8,502
22,038
Decrease (increase) in finance receivables ........................
(22,914)
16,921
(Decrease) increase in trade payables................................
23,852
(29,961)
(Decrease) increase in accrued income taxes and
accrued expenses and other ..............................................
27,620
(14,433)
Other, net.........................................................................
12,574
5,164
Net cash provided by operating activities .........................................
135,640
106,708
II. Cash Flows from Investing Activities:
1. Proceeds from sales of plant and equipment ...............................
2,989
486
2. Expenditures for plant and equipment........................................
(56,930)
(68,990)
3. Payments for purchases of available-for-sale securities ...............
(54,194)
(60,883)
4. Proceeds from sales of available-for-sale securities.....................
24,534
54,777
5. (Increase) decrease in investments in and advances to affiliates..
4,254
(2,258)
6. Decrease (increase) in time deposits...........................................
(1,571)
3,794
7. Decrease (Increase) in cash deposits for assignment of debt securities
50,000
(25,376)
8. Other, net...................................................................................
2,428
9,215
Net cash used in investing activities ................................................
(28,490)
(89,235)
III. Cash Flows from Financing Activities:
1. Proceeds from long-term indebtedness .......................................
8,362
129,816
2. Repayment of long-term indebtedness ........................................
(36,699)
(128,917)
3. (Decrease) increase in short-term borrowings, net ......................
(56,529)
(58,727)
4. Proceeds from issuance of long-term debt securities ...................
35,000
40,000
5. Repayment of long-term debt securities......................................
(66,620)
6. Cash dividends paid...................................................................
(7,595)
(7,609)
7. Other, net...................................................................................
2,832
Net cash provided by (used in) financing activities ..........................
(121,249)
(25,437)
IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents .
(4,718)
(2,715)
V. Net Increase (Decrease) in Cash and Cash Equivalents..................
(18,817)
(10,679)
VI. Cash and Cash Equivalents at Beginning of Year .........................
130,655
141,334
VII. Cash and Cash Equivalents at End of Year..................................
111,838
130,655
Supplemental Disclosures of Cash Flow Information:
Cash Paid during the Year for—
Interest
........................................................................................
17,305
17,970
Income taxes ......................................................................................
26,546
34,618
Note: Our cash flow for the year included additional deposits of ¥50.0 billion based on corporate bond underwriting
contracts.
Ricoh Co., Ltd. Flash Report
Year ended March 31, 2000
Significant Accounting Policies (Consolidated)
1. Items relating to the scale of consolidation and the application of the equity method
Consolidated subsidiaries:
18 additions including INRG Hog Kong Ltd.(from equity method)
6 removals including Ricoh Parts and Components Ltd.(liquidation)
Companies accounted for by the equity method:
3 additions including Foto Island (NSW) Pty, Ltd.(from consolidated subsidiaries)
16 removals including Rios Systems Co., Ltd..(liquidation)
2. Consolidated Accounting Policies
(1) Principles of Consolidation
The consolidated financial statements include the accounts of Ricoh. All significant intercompany balances and
transactions have been eliminated in consolidation. Investments in affiliated companies are accounted for on the
equity basis.
(2) Securities
Ricoh conforms with SFAS No.115, "Accounting for Certain Investments in Debt and Equity Securities," which
requires certain investments in debt and equity securities to be classified as either held-to-maturity, trading, or
available-for-sale securities. Available-for-sale are reported at fair value with unrealized gains and losses, net of
related taxes, excluded from earnings and reported in accumulated other comprehensive income (loss).
The cost of the securities sold was computed based on the average cost of each security held at the time of sale.
(3) Inventories
Inventories are stated at the lower of average cost or market. Inventory costs include raw materials, labor and
manufacturing overheads.
(4) Plant and Equipment
Depreciation of plant and equipment is computed principally by using the declining-balance method over the
estimated useful lives. Most of the foreign subsidiaries have adopted the straight-line method for computing
depreciation.
Certain leased buildings, machinery and equipment are accounted for as capital leases in conformity with SFAS No.
13, "Accounting for Leases."
(5) Goodwill
Ricoh has classified as goodwill the cost in excess of fair value of the net assets of major companies acquired in
purchase transactions. Goodwill is being amortized on a straight-line method over the estimated periods
benefited, not to exceed 20 years.
(6) Use of Estimates
Management of the Company has made a number of estimates and assumptions that affect the reported amounts of
assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities, to prepare these
financial statements in conformity with generally accepted accounting principles. Actual results could differ from
those estimates.
Ricoh Co., Ltd. Flash Report
Year ended March 31, 2000
VII. Segment Information
1. Industry Segment Information
For the years ended March 31, 2000 and 1999
(Millions of yen)
Year ended
Year ended
March 31, 2000 March 31, '99
Change (%)
Net sales:
Office Equipment.........................................................
1,253,070
1,250,938
+2,132 (0.2)
Other Businesses..........................................................
197,490
179,084
+18,406 (10.3)
Intersegment ................................................................
-3,403
-4,023
+620(-15.4)
Total ................................................................................
1,447,157
1,425,999
+21,158 (1.5)
Operating expenses:
Office Equipment.........................................................
1,124,675
1,139,690
-15,015 (-1.3)
Other Businesses..........................................................
191,447
175,239
+16,208 (9.2)
Intersegment ................................................................
-3,410
-4,049
+639(-15.8)
Corporate and eliminations ..........................................
45,524
41,572
+3,952 (9.5)
Total ................................................................................
1,358,236
1,352,452
+5,784 (0.4)
Operating income:
Office Equipment.........................................................
128,395
111,248
+17,147 (15.4)
Other Businesses..........................................................
6,043
3,845
+2,198 (57.2)
Intersegment ................................................................
7
26
-19(-73.1)
Corporate and eliminations ..........................................
-45,524
-41,572
-3,952 (9.5)
Consolidated operating income..........................................
88,921
73,547
+15,374 (20.9)
Other income(expenses) ....................................................
-18,528
-20,493
+1,965 (-9.6)
Consolidated pretax profit .................................................
70,393
53,054
+17,339 (32.7)
Identifiable assets:
Office Equipment.........................................................
965,316
1,023,556
-58,240 (-5.7)
Other Businesses..........................................................
161,017
187,757
-26,740(-14.2)
Intersegment ................................................................
-7,509
-7,690
+181 (-2.4)
Corporate and eliminations ..........................................
424,496
424,394
+102 (0.0)
Total ................................................................................
1,543,320
1,628,017
-84,697 (-5.2)
Capital expenditure:
Office Equipment.........................................................
51,817
61,626
-9,809(-15.9)
Other Businesses..........................................................
5,561
7,370
-1,809(-24.5)
Corporate.....................................................................
978
1,473
-495(-33.6)
Total ................................................................................
58,356
70,469
-12,113(-17.2)
Depreciation and Amortization:
Office Equipment.........................................................
54,046
57,033
-2,987 (-5.2)
Other Businesses..........................................................
6,838
8,887
-2,049(-23.1)
Corporate.....................................................................
1,062
1,536
-474(-30.9)
Total ................................................................................
61,946
67,456
-5,510 (-8.2)
Note: From the period under review, Ricoh moved optical disc products from Other Businesses to the Office
Equipment category. This change increased sales in the latter category by ¥16,487 million, while decreasing sales in
the former category by the same amount. In operating income, Office Equipment category decreased by ¥2,649
million, while Other Businesses increased by the same amount. And in the Office Equipment category, identifiable
assets increased by ¥22,337 million, capital expenditure increased by ¥2,157 million, depreciation and amortization
increased by ¥2,482 million, while in the Other Business Category, the corresponding items decreased by the same
amount respectively.
Ricoh Co., Ltd. Flash Report
Year ended March 31, 2000
2. Geographic Segment Information
For the years ended March 31, 2000 and 1999
(Millions of yen)
Year ended
Year ended
March 31, 2000 March 31, '99
Net sales:
Japan
Unaffiliated Customers.................................................
Intersegment ................................................................
Total ...........................................................................
The Americas
Unaffiliated Customers.................................................
Intersegment ................................................................
Total ...........................................................................
Europe
Unaffiliated Customers.................................................
Intersegment ................................................................
Total ...........................................................................
Other
Unaffiliated Customers.................................................
Intersegment ................................................................
Total ...........................................................................
Intersegment ................................................................
Total ................................................................................
Operating expenses:
Japan .........................................................................
The Americas...............................................................
Euro .........................................................................
Other ...........................................................................
Corporate and eliminations ..........................................
Total ................................................................................
Operating income:
Japan .........................................................................
The Americas...............................................................
Euro .........................................................................
Other ...........................................................................
Corporate and eliminations ..........................................
Consolidated operating income..........................................
Other income(expenses) ....................................................
Consolidated pretax profit .................................................
Identifiable assets:
Japan .........................................................................
The Americas...............................................................
Euro .........................................................................
Other ...........................................................................
Corporate and eliminations ..........................................
Corporate.....................................................................
Consolidated ....................................................................
Change (%)
885,998
259,792
1,145,790
830,731
240,352
1,071,083
+55,267 (6.7)
+19,440 (8.1)
+74,707 (7.0)
230,496
5,988
236,484
237,420
8,019
245,439
-6,924 (-2.9)
-2,031(-25.3)
-8,955 (-3.6)
265,621
3,355
268,976
290,159
6,032
296,191
-24,538 (-8.5)
-2,677(-44.4)
-27,215 (-9.2)
65,042
36,026
101,068
67,689
39,218
106,907
-2,647 (-3.9)
-3,192 (-8.1)
-5,839 (-5.5)
-305,161
1,447,157
-293,621
1,425,999
-11,540 (3.9)
+21,158 (1.5)
1,083,227
226,210
255,698
95,802
-302,701
1,358,236
1,020,515
233,292
283,816
103,701
-288,872
1,352,452
+62,712
-7,082
-28,118
-7,899
-13,829
+5,784
62,563
10,274
13,278
5,266
-2,460
88,921
-18,528
70,393
50,568
12,147
12,375
3,206
-4,749
73,547
-20,493
53,054
+11,995 (23.7)
-1,873(-15.4)
+903 (7.3)
+2,060 (64.3)
+2,289(-48.2)
+15,374 (20.9)
+1,965 (-9.6)
+17,339 (32.7)
956,670
93,191
120,587
52,791
-104,415
424,496
1,543,320
1,008,764
111,768
138,697
53,715
-109,321
424,394
1,628,017
-52,094 (-5.2)
-18,577(-16.6)
-18,110(-13.1)
-924 (-1.7)
+4,906 (-4.5)
+102 (0.0)
-84,697 (-5.2)
(6.1)
(-3.0)
(-9.9)
(-7.6)
(4.8)
(0.4)
Ricoh Co., Ltd. Flash Report
Year ended March 31, 2000
VIII. Notes to Consolidated Financial Statements
(1) Fair Market Value of Marketable Securities
The non-marketable securities as of March 31, 2000 and 1999 primarily relate to less than 20%-owned companies
and are stated at cost.
The securities and the respective cost, gross unrealized holding gains, gross unrealized holding losses and fair value
as of March 31, 2000 and 1999 are as follows:
Year ended March 31, 2000
Cost
(Millions of yen)
Gross unrealized Gross unrealized
holding gains
Current:
Equity securities
....................................................
Japanese and foreign governmental bond securities......
Corporate debt securities................................................
Bank debt securities.......................................................
Other............................................................…………..
Noncurrent:
Equity securities
....................................................
Corporate debt securities................................................
Other............................................................…………..
Non-marketable securities..............................................
2,993
1,012
33,640
158
90,508
128,311
199
43
592
71
905
441
2
5
448
2,751
1,053
34,232
153
90,579
128,768
6,791
4,147
40
2,621
13,599
15,290
15,290
70
34
104
22,011
4,113
40
2,621
28,785
Year ended March 31, 1999
Cost
(Millions of yen)
Gross unrealized Gross unrealized
holding gains
Current:
Equity securities
....................................................
Japanese and foreign governmental bond securities......
Corporate debt securities................................................
Bank debt securities.......................................................
Other............................................................…………..
Noncurrent:
Equity securities
....................................................
Corporate debt securities................................................
Other............................................................…………..
Non-marketable securities..............................................
Fair value
holding losses
Fair value
holding losses
2,740
1,021
26,825
2,837
64,988
98,411
55
74
236
365
385
2
38
105
530
2,410
1,093
27,061
2,799
64,883
98,246
14,327
7,927
16
5,203
27,473
18,107
18,107
223
355
578
32,211
7,572
16
5,203
45,002
Other includes money management funds of 25,633 million yen and 38,868 million yen as of March 31, 1999 and
2000, respectively, and investment trusts consisting of investments in marketable debt and equity securities.
Ricoh Co., Ltd. Flash Report
Year ended March 31, 2000
(2) Derivative
The Company and certain of its subsidiaries enter into various financial instrument contracts in the normal course of
business and in connection with the management of its assets and liabilities.
The Company and certain of its subsidiaries enter into foreign currency contracts to hedge assets and liabilities
denominated in foreign currencies.
The contracted amounts outstanding as of March 31, 1999 and 2000 were 105,022 million yen and 91,627 million
yen, respectively.
Gains or losses on those contracts used to hedge existing assets and liabilities are recognized in income currently.
In connection with short-term borrowings and long-term indebtedness, the Company and certain of its subsidiaries
have used interest rate swap agreements as a means of managing its interest exposure; at March 31, 1999 and 2000,
they had 351,893 million yen and 378,010 million yen of contractual amounts under interest rate swap agreements.
Interest rate swap transactions generally involve the exchange of floating rate for fixed rate interest payment
obligations without an exchange of underlying principal amounts. The differentials to be paid or received under
the interest rate swap agreements are accrued.
The counterparties to the above financial instrument contracts are major financial institutions and, therefore, the
Company and certain of its subsidiaries are exposed to credit risk in the event of nonperformance by counterparties.
However, the Company does not anticipate nonperformance by them.
The carrying amount and estimated fair value of derivative financial instruments as of March 31, 1999 and 2000 are
as follows:
Year ended March 31, 2000
(Millions of yen)
Carrying amount
Estimated
Fair value
Profit/loss
Interest rate swap agreements, net .......................................
Foreign currency contracts-net credit...................................
-47
2,314
2,685
2,102
2,732
-212
Total ...................................................................................
2,267
4,787
2,520
Year ended March 31, 1999
(Millions of yen)
Carrying amount
Estimated
Fair value
Profit/loss
Interest rate swap agreements, net .......................................
Foreign currency contracts-net credit...................................
12
-1,462
2,018
-2,276
2,006
-814
Total ...................................................................................
-1,450
-258
1,192
(3) Transactions of Ricoh with affiliates
(Millions of yen)
March 31, 2000
Account balances:
Receivables ....................................................................................
Payables ........................................................................................
4,406
3,030
March 31, ‘99
10,861
2,171
(Millions of yen)
Year ended
March 31, 2000
Transactions:
Sales
........................................................................................
Purchases.......................................................................................
Dividend income............................................................................
23,231
13,412
1,651
Year ended
March 31, ‘99
32,057
34,992
1,168
Ricoh Co., Ltd. Flash Report
Year ended March 31, 2000
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