Presentation

Consolidated Results for the
3 months ended June 30, 2008
July 25, 2008
Ricoh Company, Ltd.
Contents
FY09/3 Q1 results
FY09/3 forecast
Appendix
* The Company bases the estimates in this presentation on
information currently available to management, which involves
risks and uncertainties that could cause actual results to differ
materially from those projected.
(C)2008 Ricoh Company, Ltd. All Rights Reserved.
July 25, 2008
1
FY09/3 Q1 P/L
FY08/3
Q1 result
(billions of yen)
Net sales
(Japan)
(Overseas)
Total
Gross profit
Percentage of net sales
Operating income
Percentage of net sales
Income before income taxes
Percentage of net sales
Net income
Percentage of net sales
EPS (Yen)
Exchange rate
(Yen)
US $1
Euro 1
244.7
285.3
530.1
228.7
43.1%
46.6
8.8%
53.2
10.0%
33.8
6.4%
46.38
120.77
162.72
FY09/3 Q1
Latest(Apr '08)
forecast
248.0
288.0
536.0
226.0
42.2%
39.0
7.3%
37.7
7.0%
23.0
4.3%
31.55
100.00
160.00
(C)2008 Ricoh Company, Ltd. All Rights Reserved.
FY09/3
Q1 result
Comparison
with latest
forcast
233.8
287.7
521.5
228.3
43.8%
39.7
7.6%
43.7
8.4%
25.7
4.9%
35.71
104.66
163.48
-14.1
-10.8
-4.4%
-4.4%
-0.2
+2.3
+0.8%
+7.3%
-14.4
-8.5
-1.6%
+1.9%
+2.3
-0.3
-0.2%
−
+0.7
−
+6.0
−
+2.7
−
Y-o-Y Comparison
Change
Change(%)
−
-6.8
−
-14.7%
−
-9.5
−
-17.9%
−
-8.1
−
-24.0%
−
+4.16
-10.67
+4.66
-16.11
+3.48
+0.76
Excluding Forex
Impact(%)
−
July 25, 2008
2
FY09/3 Q1 Milestones
Ricoh Pro C900(Japan&Overseas)
*shipment from Aug, 2008 in Japan
Ricoh in “drupa 2008”
imagio MP C5000(Japan)
GX200(Japan)
IPSiO SP C221SF(Japan)
Web storage service “quanp”
(Japan)
Eco-powered electric billboard in N.Y. from Dec, 2008
*image illustration
(C)2008 Ricoh Company, Ltd. All Rights Reserved.
July 25, 2008
3
FY09/3 Sales
By Category
By Area
(billions of Yen)
(billions of Yen)
Change(without forex)
521.5
41.7
35.5
40.6
33.2
33.0
45.1
Other
-20.4%(-19.6%)
Industrial Products
-6.9%(-5.2%)
410.1
455.2
452.8
FY08/3
Q1
Overseas
Imaging & Solutions
Imaging & Solutions
412.1
FY09/3
Q1
“Office Solutions” has been changed
to “Imaging & Solutions” from FY09/3.
Change(without forex)
Total -1.6%(+1.9%)
Network System
Solutions
+11.0%(+12.3%)
Imaging Solutions
-0.5%(+3.6%)
Product ratio in Imaging
08Q1 09Q1
Copier
81% -> 75%
Printer
14％ -> 22％
Imaging & Solutions
+0.5%(+4.4%)
Japan
Overseas
530.1
521.5
Total -1.6%(+1.9%)
35.3
37.3
Other
+5.7%(+12.6%)
146.8
Overseas
530.1
148.6
285.3
103.1
287.7
101.6
244.7
233.8
FY08/3
Q1
FY09/3
Q1
Europe
+1.2%(+1.5%)
The Americas
-1.5%(+13.6%)
Japan
日本
-4.4%(-4.4%)
Overseas
+0.8%(+7.3%)
Overseas sales ratio
53.8%
55.2%
-2.3% (-2.3%)
+2.6% (+9.2%)
July 25, 2008
(C)2008 Ricoh Company, Ltd. All Rights Reserved.
4
FY09/3 Q1 Income before tax y-o-y comparison
(billions of Yen)
Gross Profit items
SG&A items
Other
1.6
13.7
11.8
4.5
2.6
Other expenses
(C)2008 Ricoh Company, Ltd. All Rights Reserved.
Forex
” shows profit increase and “
6.0
Expenses
R&D
“
Forex, etc
Cost down
FY08/3
Q1
Sales, etc
53.2
8.0
” shows profit decrease in this chart.
-9.5
43.7
FY09/3
Q1
July 25, 2008
5
FY09/3 Q1 Business Segment
Imaging & Solutions
Industrial Products
Other
OP margin
OP margin
OP margin
OP margin
OP margin
OP margin
13.4%
12.2%
3.0%
2.9%
2.0%
1.5%
452.8
455.2
120
400
90
300
60.7
55.4
200
41.7
36.6
60
33.2
34.2
30
5
30
0
0
5
30
100
1.1
0
0
FY08/3
Q1
1.0
FY09/3
Q1
FY08/3
Q1
0.5
0.8
0
0
FY09/3
Q1
FY08/3
Q1
FY09/3
Q1
Right bar: Operating income (billions of yen)
Left bar: Sales (billions of yen)
* Excluding “Corporate and Eliminations”
July 25, 2008
(C)2008 Ricoh Company, Ltd. All Rights Reserved.
6
FY09/3 Q1 Geographic Segment
Japan
OP margin
OP margin
8.9%
7.2%
393.7
The Americas
OP margin
OP margin
1.8%
-1.2%
364.4
300
103.3
60
102.5
100
35.0
200
40
26.0
100
0
Europe
20
FY08/3 Q1
FY09/3 Q1
OP margin
OP margin
4.6%
7.8%
0
Left bar:
Sales
(billions of Yen)
20
50
10
1.8
Right bar:
Operating income
(billions of Yen)
-1.2
0
FY08/3 Q1
Other
0
FY09/3 Q1
OP margin
OP margin
7.4%
6.1%
148.9
147.8
100
20
100
10
50
20
74.8
76.2
11.6
50
6.7
0
0
FY08/3 Q1
FY09/3 Q1
* Excluding “Corporate
and Eliminations”
(C)2008 Ricoh Company, Ltd. All Rights Reserved.
5.6
10
4.5
0
0
FY08/3 Q1
FY09/3 Q1
July 25, 2008
7
Balance Sheet as of June 30, 2008
Assets
Liabilities and Shareholders’ Investment
As of
Difｆ. from
Jun 30, 2008 Mar 31, '08
1,175.7
+51.6
(billions of yen)
Current Assets
176.2
718.1
218.7
62.6
Cash & time deposits
Trade recievables
Inventries
Other current assets
Fixed Assets
Tangible fixed assets
Finance recievable
Other investments
1,129.0
257.3
461.7
409.9
+4.0
(billions of yen)
Current Liabilities
Trade payables
+19.0
Short-term borrowings
+26.7
Other current liabilities
+38.7
+2.6
Fixed Liabilities
Long-term indebtedness
+16.3
Retirement benefit obligation
+19.7
Other fixed liabilities
Total Liabilities
Total Shareholders' Investment
2,304.7
352.0
201.7
211.0
-8.5
+43.2
+16.3
+1.7
Minority Interest
Total Assets
As of
Difｆ. from
Jun 30, 2008 Mar 31, '08
764.7
+51.0
+90.4
Exchange rate as of June 30, 2008 :
US$ 1
= ¥ 106.42 ( + 6.23)
EURO 1 = ¥ 168.07 ( + 9.88)
Total liabilities and
shareholders' Investment
Total debt
357.2
218.4
99.1
39.7
1,122.0
59.2
1,123.4
-4.8
-7.4
-0.7
+3.3
+46.1
+0.9
+43.2
2,304.7
+90.4
420.1
+35.8
July 25, 2008
(C)2008 Ricoh Company, Ltd. All Rights Reserved.
8
FY09/3 Q1 Statement of Cash Flow < 3 months >
(billions of yen)
Net income
Depreciation and amortization
[ Cash profit (Net income + Depreciation and amortization) ]
Other operating activities
Net cash by operating activities
Plant and equipment
Other investing activities
Net cash by investing activities
[ Free cash flow ( oparating net cash + investing net cash ) ]
Net cash by financing activities
Effect of exchange rate
Net increase in cash and equivalents
Cash and equivalents at end of period
(C)2008 Ricoh Company, Ltd. All Rights Reserved.
Apr-Jun, '07
33.8
21.6
[ 55.5 ]
-34.0
21.4
-17.0
-90.2
-107.2
[ -85.8 ]
-2.8
4.5
-84.1
171.6
Apr-Jun, ’08
25.7
24.3
[ 50.1 ]
-39.8
10.2
-20.4
-10.3
-30.7
[ -20.4 ]
18.0
6.0
3.6
174.2
July 25, 2008
9
FY09/3 Performance Forecast
FY08/3
Results
(billions of yen)
Net sales
(Japan)
(Overseas)
Total
Gross profit
Percentage of net sales
Operating income
Percentage of net sales
Income before income taxes
Percentage of net sales
Net income
Percentage of net sales
EPS (Yen)
Exchange rate
US $1
(Yen)
Euro 1
1,016.0
1,203.9
2,219.9
927.7
41.8%
181.5
8.2%
174.6
7.9%
106.4
4.8%
146.04
114.40
161.69
FY09/3
Latest(Apr ’08)
Forecast
FY09/3
Forecast
Comparison
with latest
forcast
1,038.0 1,038.0
1,222.0 1,222.0
2,260.0 2,260.0
932.0
932.0
41.2%
41.2%
180.0
180.0
8.0%
8.0%
176.0
176.0
7.8%
7.8%
108.0
108.0
4.8%
4.8%
148.15 149.81
100.00 101.17
160.00 160.87
+0.0
+21.9
+2.2%
+2.2%
+0.0
+18.0
+1.5%
+6.5%
+0.0
+40.0
+1.8%
+4.5%
+0.0
+4.2
+0.5%
Y-o-Y comparison
Change
-
Change(%)
-
+0.0
-1.5
-
-0.8%
-
+0.0
+1.3
-
+0.8%
-
+0.0
+1.5
-
+1.4%
-
+1.66
+3.77
+1.17
-13.23
+0.87
-0.82
Excluding Forex
Impact(%)
-
July 25, 2008
(C)2008 Ricoh Company, Ltd. All Rights Reserved.
10
FY09/3 Sales forecast
By Category
By Area
(billions of Yen)
(billions of Yen)
Change(without forex)
2,219.9
2,260.0
146.0
166.0
137.0
Industrial Products
-5.0%(-3.6%)
1,748.5
1,976.8
FY09/3
Forecast
“Office Solutions” has been changed
to “Imaging & Solutions” from FY09/3.
Change(without forex)
2,219.9
2,260.0
173.2
165.9
603.2
1,203.9
Overseas
FY08/3
Imaging & Solutions
Imaging & Solutions
1,909.5
Other
-12.1%(-11.9%)
228.3
200.0
1,709.4
+1.8%(+4.5%)
Overseas
144.3
Total
631.6
1,222.0
Imaging & Solutions
+3.5%(+6.6%)
Japan
Overseas
+4.5% (+4.5%)
+2.8% (+8.1%)
(C)2008 Ricoh Company, Ltd. All Rights Reserved.
+1.8%(+4.5%)
Other
+4.4%(+5.9%)
Europe
+4.7%(+5.4%)
434.7
417.0
The Americas
-4.1%(+8.3%)
1,016.0
1,038.0
Japan
日本
-4.4%(-4.4%)
+2.2%(+2.2%)
FY08/3
FY09/3
Forecast
Network System
Solutions
+14.1%(+15.0%)
Imaging Solutions
+2.3%(+5.6%)
Total
Overseas
+1.5%(+6.5%)
Overseas sales ratio
54.2%
54.1%
July 25, 2008
11
FY09/3 Income before tax forecast y-o-y comparison
(billions of Yen)
Gross Profit items
SG&A items
Other
9.5
41.9
4.0
“
” shows profit increase and “
(C)2008 Ricoh Company, Ltd. All Rights Reserved.
memo
Forex
FY08/3
20.7
Expenses
R&D
Forex, etc
Cost down
Sales, etc
174.6
22.4
2.8
+1.3
Other expenses
36.6
176.0
“ shows profit decrease in this chart.
FY09/3
Forecast
July 25, 2008
12
Appendix of FY09/3 Q1 Results (1)
Products ratio on Imaging Solutions category
FY08/3
Q1
74%
20%
5%
84%
11%
5%
81%
14%
5%
Copier
Japan
Printer
Other
Copier
Overseas
Printer
Total
Copier
Printer
Other
Other
Color ratio
Q2
76%
18%
6%
83%
13%
4%
80%
15%
5%
Q3
72%
22%
5%
77%
19%
4%
75%
20%
4%
Q4
74%
19%
6%
77%
19%
4%
76%
19%
5%
Full year
74%
20%
6%
80%
15%
4%
78%
17%
5%
Japan
Overseas
Total
Japan
Printer
Q1
72%
23%
4%
76%
21%
3%
75%
22%
3%
* Copier’s Color ratio
(by sales value of machine)
FY08/3
Copier
(by sales)
FY09/3
Overseas
Total
Q1
52%
39%
43%
25%
52%
37%
Q2
59%
44%
48%
22%
38%
30%
Q3
61%
45%
49%
23%
32%
28%
Q4 Full year
63%
59%
49%
44%
53%
48%
32%
26%
31%
36%
32%
31%
FY09/3
70%
Q1
59%
48%
51%
27%
32%
29%
60%
50%
40%
10%
22%
44%
36%
43%
51%
48%
39%
Overseas
17%
0%
FY 04/3
Overseas production ratio
48%
40%
59%
52%
52%
44%
34% 36%
31%
32%
29%
31%
30%
20%
59%
Total
Japan
05/3
06/3
07/3
08/3
07/3
Q1
08/3
Q1
(by units)
FY08/3 Q1 FY09/3 Q1
Copier
LP
70%
85%
80%
90%
July 25, 2008
(C)2008 Ricoh Company, Ltd. All Rights Reserved.
14
Appendix of FY09/3 Q1 Results (2)
R&D, CAPEX and Depreciation & Amortization
FY08/3
(billions of yen)
R&D
%Sales
CAPEX
Depreciation
&Amotization
FY09/3 FY09/3
Q1
27.2
5.1%
17.1
Q2
34.3
6.1%
22.5
Q3
32.0
5.8%
18.1
Q1
forecast
Q4 Full year
32.5 126.0 31.7 130.0
5.8% 5.7% 6.1% 5.8%
27.3
85.2
20.4
90.0
16.8
18.8
18.4
18.6
72.7
17.7
Operating profit by Business segment
FY07/3
(billions of yen)
Imaging &
Solutions
Industrial
Products
Others
Total
Sales
OP
OP Margin
Sales
OP
OP Margin
Sales
OP
OP Margin
Sales
OP
OP Margin
1,774.4
225.3
12.7%
133.3
2.9
2.1%
161.0
2.2
1.4%
2,068.9
174.3
8.4%
FY08/3
1,909.5
234.6
12.3%
144.3
4.1
2.8%
166.0
2.5
1.5%
2,219.9
181.5
8.2%
FY09/3
forecast
1,976.8
230.0
11.6%
137.0
3.8
2.8%
146.0
2.2
1.5%
2,260.0
180.0
8.0%
*Intersegment sales excluded
(C)2008 Ricoh Company, Ltd. All Rights Reserved.
75.0
Free cash flow
FY07/3
FY08/3
FY09/3
forecast
Free cash ｆlow
51.8
-3.9
93.0
Free cash ｆlow
excluding M&A*
75.0
92.8
-
(billions of yen)
* Infotec Europe in FY07/3 and InfoPrint Solutions, etc in FY08/3
Impact of forex rates
Impact of forex rates per yen
On Sales
On Income before
income taxes
US$
4.5 billion yen
/ year
1.3 billion yen
/ year
EURO
3.5 billion yen
/ year
1.5 billion yen
/ year
July 25, 2008
15
< Appendix > Balance Sheet Indexes
Total Assets turn over
Equity ratio
Assets turn over (per month)
Total Assets (billions of Yen)
0.95
2,000
0.95
0.96
2,041.1
1,852.7 1,953.6
0.97
1.00
0.93
Equity ratio (%)
Shareholders’ equity (billions of Yen)
0.92
47.0% 47.7% 48.8% 48.0% 48.7%
42.9% 44.2%
2,243.4 2,214.3 2,313.5 2,304.7
45.0%
1,500
1,000
795.1
960.2
862.9
1,070.9 1,080.1 1,111.0 1,123.4
30.0%
1,000
500
15.0%
0
0
End of
‘04/3
End of
‘05/3
End of
‘06/3
End of
‘07/3
End of
‘08/3
End of
‘07/6
End of
‘08/6
0.0%
End of
‘04/3
Inventories/Averaged cost of sales
End of
‘05/3
End of
‘06/3
End of
‘07/3
*RL : Ricoh Leasing Co. Ltd.
Inventories (billions of yen)
1.90
1.72
300
1.82
2.03
1.83
250
200
145.0
167.4
192.0
184.3
169.2
2.24
1.78
1,200
2.00
203.5
218.7
1.50
1.00
800
600
0.50
100
0.00
400
50
-0.50
200
0
-1.00
0
End of
‘05/3
End of
‘06/3
End of
‘07/3
End of
‘08/3
End of
‘07/6
End of
‘08/6
End of
‘08/6
D/E ratio exclude RL
(multiplies)
Total debt exclude RL
(billions of Yen)
1.00
0.54
0.48
0.40
0.24
0.22
0.17
0.39
0.36
0.39
0.37
0.18
0.15
0.18
0.15
1,000
150
End of
‘04/3
End of
‘07/6
D/E ratio
(multiplies)
Total debt
(billions of Yen)
Debt/Equity ratio
Inventories/Averaged cost of sales (months)
End of
‘08/3
0.50
432.0
193.7
410.1
415.6
381.2
192.2
160.5
384.3
429.0
-0.50
-1.00
165.3
204.9
End of
‘08/3
End of
‘07/6
189.2
420.1
0.00
173.2
-1.50
-2.00
End of
‘04/3
End of
‘05/3
End of
‘06/3
End of
‘07/3
End of
‘08/6
July 25, 2008
(C)2008 Ricoh Company, Ltd. All Rights Reserved.
16
Appendix : Financial Indexes
Dividend
Financial Indexes
12.6%
Consolidated Payout Ratio
( Dividend per share / EPS )
22.6%
17.8%
Operating income
on sales
18.1% 18.3%
10.6%
7.5%
7.7%
153.10
EPS (Yen)
146.04 149.81
132.33
123.63
9.9%
8.2%
8.1%
7.8%
7.8%
106.4
108.0
7.9%
7.8%
9.6%
8.4%
8.0%
7.1%
Income before Tax
on total assets
111.7
97.0
91.7
83.1
112.64
28
20
11.0%
10.0%
8.4%
14.6%
18
ROE
24.7%
33
37
24
Net income (billions of yen)
FY09/3
FY04/3 FY05/3 FY06/3 FY07/3 FY08/3 (forecast)
FY09/3
FY04/3 FY05/3 FY06/3 FY07/3 FY08/3 (forecast)
Dividend per share (Yen)
(C)2008 Ricoh Company, Ltd. All Rights Reserved.
July 25, 2008
17