Presentation

Consolidated Results for the
3 months ended June 30, 2007
July 26, 2007
Ricoh Company, Ltd.
< Contents >
FY08/3 1Q results
FY08/3 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)2007 Ricoh Company, Ltd. All Rights Reserved.
July 26, 2007
1
FY08/3 Q1 P/L
FY07/3
Q1
(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
Income from continuing operations
Percentage of net sales
Net income
Percentage of net sales
EPS (Yen)
Exchange rate
(Yen)
US $1
Euro 1
240.4
244.1
484.5
202.5
41.8%
40.6
8.4%
38.7
8.0%
23.6
4.9%
29.1
6.0%
39.92
114.53
143.78
FY08/3 Q1
Latest('07/4)
Forecast
250.0
264.8
514.8
214.4
41.6%
42.0
8.2%
41.3
8.0%
25.1
4.9%
25.1
4.9%
34.38
115.00
155.00
FY08/3 Q1
Results
Comparison
with latest
forcast
244.7
285.3
530.1
228.7
43.2%
46.6
8.8%
53.2
10.0%
33.8
6.4%
33.8
6.4%
46.38
120.77
162.72
-5.3
+20.5
+15.3
+14.3
−
+4.6
−
+11.9
−
+8.7
−
+8.7
−
+12.00
+5.77
+7.72
Comparison with last year
Change
Change(%)
+4.3
+41.2
+45.5
+26.2
−
+5.9
−
+14.5
−
+10.2
−
+4.7
−
+6.46
+6.24
+18.94
+1.8%
+16.9%
+9.4%
+12.9%
−
+14.7%
−
+37.6%
−
+43.3%
−
+16.2%
−
(C)2007 Ricoh Company, Ltd. All Rights Reserved.
Excluding Forex
Impact(%)
+1.8%
+6.4%
+4.1%
July 26, 2007
2
FY08/3 Q1 Sales
By Category
By Area
(billions of Yen)
(billions of Yen)
Change(without forex)
530.1
484.5
38.0
34.7
39.0
372.7
FY07/3
Q1
41.7
35.5
40.6
412.1
Other
+9.7%(+8.3%)
Industrial Products
+2.4%(+0.0%)
Network System
Solutions
+4.1%(+3.3%)
484.5
530.1
Total +9.4%(+4.1%)
35.3
Other
+17.9%(+6.8%)
30.0
113.5
100.6
146.8
103.1
Imaging Solutions
+10.6%(+4.2%)
Product ratio in Imaging
06Q1 07Q1
Copier
81% → 81%
Printer
14％ → 14％
FY08/3
Q1
Change(without forex)
Total +9.4%(+4.1%)
Office Solutions
+10.0%(+4.1%)
Japan
+0.5% (+0.5%)
Overseas +18.0% (+7.1%)
(C)2007 Ricoh Company, Ltd. All Rights Reserved.
Europe
+29.4%(+14.4%)
The Americas
+2.5%(-2.7%)
Overseas
+16.9%(+6.4%)
240.4
244.7
FY07/3
Q1
FY08/3
Q1
Japan
+1.8%(+1.8%)
Overseas ratio
50.4%
53.8%
July 26, 2007
3
FY08/3 Q1 Strategy Executions
< Office >
Enter High-end Production Printing Business
> JV established
Low-end Products Strengthening
> New low-end CLP released (Overseas)
Solution Strengthening
> Solution brand “Operius” launched
Investment for printing business expansion
> Component production site establishment (China)
> Polymerized toner capacity expansion (Japan)
< Industrial products >
Aficio SP C210
imagio MP C4500it
- Copier’s Color ratio
Positive Investment for Growth Areas
> Alliance with Niigata Seimitsu Co.
60%
Total
50%
40%
< Management >
31%
30%
> Building of core operating system
> Ricoh Americas Corporation established
> Ricoh Europe Holdings established
20%
10%
44%
Japan
22%
52%
40%
34% 36%
36%
31%
32%
29%
51%
52%
43%
36%
39%
30%
Overseas
17%
0%
FY 04/3
05/3
06/3
07/3
07/3
Q1
08/3
Q1
*by sales for machines of copier and multifunctional copiers
(C)2007 Ricoh Company, Ltd. All Rights Reserved.
July 26, 2007
4
FY08/3 Q1 Income before tax: comparison with FY07/3 Q1
(billions of Yen)
Gross Profit items
SG&A items
+13.3
-1.8
Other
-10.6
-8.0
+8.5
Forex
Other expenses
+3.5
+14.5
+9.2
Expenses
R&D
Forex, etc
Cost down
Sales, etc
38.7
53.2
FY08/3
Q1
FY07/3
Q1
(C)2007 Ricoh Company, Ltd. All Rights Reserved.
July 26, 2007
5
FY08/3 Q1 Business Segment
Office Solutions
Industrial Products
Other
OP margin
OP margin
OP margin
OP margin
OP margin
OP margin
12.5%
13.4%
3.4%
3.0%
1.8%
2.0%
500
1,500
452.8
411.8
400
1,200
300
60
900
51.3
200
10
60.7
35.9
600
41.7
38.0
36.6
30
100
10
60
5
30
0
0
5
300
1.2
0
0
FY07/3
Q1
1.1
FY08/3
Q1
FY07/3
Q1
0.8
0.6
0
0
FY08/3
Q1
FY07/3
Q1
FY08/3
Q1
Right bar: Operating income (billions of yen)
Left bar: Sales (billions of yen)
* Excluding “Corporate and Eliminations”
(C)2007 Ricoh Company, Ltd. All Rights Reserved.
6
July 26, 2007
FY08/3 Q1 Geographic Segment
Japan
400
OP margin
OP margin
8.7%
8.9%
393.7
369.2
The Americas
80
OP margin
2.0%
1.8%
150
30
101.6
60
300
OP margin
103.3
100
35.0
32.1
200
100
40
20
0
0
FY07/3 Q1 FY08/3 Q1
Europe
OP margin
OP margin
4.0%
4.6%
147.8
150
Left bar:
Sales
(billions of Yen)
20
50
10
1.8
2.0
Right bar:
Operating income
(billions of Yen)
0
0
FY07/3 Q1
Other
30
150
20
100
FY08/3 Q1
OP margin
OP margin
7.6%
7.4%
30
114.4
100
20
76.2
56.6
6.7
50
50
10
4.6
0
0
FY07/3 Q1 FY08/3 Q1
10
4.3
* Excluding “Corporate
and Eliminations”
(C)2007 Ricoh Company, Ltd. All Rights Reserved.
5.6
0
0
FY07/3 Q1
FY08/3 Q1
July 26, 2007
7
Balance Sheet <as of June 30, 2007>
Assets
Liabilities and Shareholders’ Investment
As of
Difｆ. from
Jun 30, 2007 Mar 31, '07
-50.5
1,149.5
(billions of yen)
Current Assets
Cash & time deposits
Trade recievables
Marketable securities
Inventries
Other current assets
Fixed Assets
Tangible fixed assets
Finance recievable
Other investments
173.2
704.3
0.2
203.5
68.2
1,164.0
264.7
441.4
457.9
As of
Difｆ. from
Jun 30, 2007 Mar 31, '07
+13.3
748.9
(billions of yen)
Current Liabilities
-83.9
Trade payables
+11.0
Short-term borrowings
+0.0
Other current liabilities
-9.4
+18.4
+4.3
+19.2
+3.0
+120.7
Fixed Liabilities
+0.0
Long-term indebtedness
+5.5
Retirement benefit obligation
+115.1
Other fixed liabilities
Total Liabilities
Minority Interest
Total Shareholders' Investment
2,313.5
Total Assets
357.7
197.2
193.9
+70.1
Exchange rate as of June 30, 2007 :
US$ 1
= ¥ 123.26 ( + 5.21)
EURO 1 = ¥ 165.64 ( + 8.31)
Total liabilities and
shareholders' Investment
Total debt
(C)2007 Ricoh Company, Ltd. All Rights Reserved.
389.1
231.7
100.5
56.9
1,138.0
64.4
1,111.0
+12.7
2,313.5
+70.1
429.0
+13.3
+9.1
-5.0
+1.4
+22.4
+7.6
+40.1
July 26, 2007
8
FY08/3 Q1 Statement of Cash Flow < 3 months >
(billions of yen)
Income from continuing operations
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)2007 Ricoh Company, Ltd. All Rights Reserved.
Apr-Jun, '06
23.6
20.7
[ 44.4 ]
4.9
26.3
-15.9
10.9
-5.0
[ 21.2 ]
-17.4
-2.4
2.1
189.1
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
July 26, 2007
9
FY08/3 Performance Forecast
FY07/3
(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
Income from continuing operations
Percentage of net sales
Net income
Percentage of net sales
EPS (Yen)
Exchange rate
(Yen)
US $1
Euro 1
1,002.2
1,066.6
2,068.9
862.4
41.7%
174.3
8.4%
174.5
8.4%
106.2
5.1%
111.7
5.4%
153.10
117.02
150.08
FY08/3
Latest(’07/4)
Forecast
FY08/3
Forecast
Comparison
with latest
forcast
1,040.0 1,040.0
1,210.0 1,210.0
2,250.0 2,250.0
940.0
940.0
41.8%
41.8%
195.0
195.0
8.7%
8.7%
192.0
192.0
8.5%
8.5%
117.0
117.0
5.2%
5.2%
117.0
117.0
5.2%
5.2%
160.28 160.28
115.00 116.44
155.00 156.93
+0.0
+0.0
+0.0
+0.0
+0.0
+0.0
+0.0
+0.0
+0.00
+1.44
+1.93
Comparison with last year
Excluding Forex
Impact(%)
Change
Change(%)
+37.7
+143.3
+181.0
+77.5
+20.6
+17.4
+10.7
+5.2
+7.18
-0.58
+6.85
+3.8%
+3.8%
+13.4% +11.3%
+8.8%
+7.6%
+9.0%
+11.8%
+10.0%
+10.1%
+4.7%
-
(C)2007 Ricoh Company, Ltd. All Rights Reserved.
July 26, 2007
10
FY08/3 Sales forecast
By Category
By Area
(billions of Yen)
(billions of Yen)
Change(without forex)
2,250.0
Total +8.8%(+7.6%)
167.0
141.5
Other
+3.7%(+3.4%)
2,068.9
161.0
133.3
Total +8.8%(+7.6%)
145.1
Other
+9.1%(+6.6%)
587.1
Europe
+15.8%(+11.1%)
2,068.9
133.0
206.1
194.3
1,580.1
Change(without forex)
2,250.0
1,735.2
Industrial Products
+6.1%(+5.4%)
507.1
Network System
Solutions
+6.1%(+5.9%)
426.4
477.7
Overseas
+13.4%(+11.3%)
Imaging Solutions
+9.8%(+8.5%)
1,002.2
1,040.0
Office Solutions
+9.4%(+8.2%)
FY07/3
FY08/3
Forecast
Japan
+3.8%(+3.8%)
Overseas ratio
Japan
+4.1% (+4.1%)
Overseas +13.7% (+11.5%)
(C)2007 Ricoh Company, Ltd. All Rights Reserved.
The Americas
+12.0%(+13.0%)
FY07/3
FY08/3
Forecast
51.6%
53.8%
July 26, 2007
11
FY08/3 Income before tax forecast: comparison with FY07/3
(billions of Yen)
Gross Profit items
SG&A items
+12.5
Other
-13.0
+11.0
-39.2
+54.0
-3.1
Forex
Other expenses
+17.4
192.0
FY08/3
Forecast
FY07/3
(C)2007 Ricoh Company, Ltd. All Rights Reserved.
memo
Expenses
R&D
Forex, etc
Cost down
Sales, etc
174.5
-4.7
July 26, 2007
12
Appendix of FY08/3 Q1 Results (1)
Products ratio on Imaging Solutions category
FY06/3
Copier
Japan
Printer
Other
Copier
Overseas
Printer
Other
Copier
Total
Printer
Other
Q1
77%
15%
8%
85%
8%
7%
82%
11%
7%
Q2
76%
16%
8%
86%
8%
6%
82%
11%
7%
Q3
75%
18%
7%
85%
9%
6%
81%
12%
7%
FY07/3
Q4
75%
18%
7%
86%
8%
6%
82%
12%
6%
Full year
76%
17%
8%
85%
8%
6%
81%
12%
7%
Q1
74%
20%
6%
85%
9%
6%
81%
14%
6%
Q2
79%
14%
7%
85%
9%
6%
83%
11%
6%
Q3
75%
19%
6%
84%
10%
5%
81%
13%
6%
FY08/3
Q4
75%
21%
4%
86%
9%
6%
82%
13%
5%
Q1
74%
20%
5%
84%
11%
5%
81%
14%
5%
Full year
76%
19%
6%
85%
9%
6%
82%
13%
6%
(by sales)
Color ratio
FY06/3
Japan
Copier
Overseas
Total
Japan
Printer
Overseas
Total
Q1
44%
25%
32%
21%
57%
34%
Q2
42%
32%
35%
25%
57%
35%
Q3
49%
34%
39%
31%
50%
38%
FY07/3
Q4 Full year
44%
44%
34%
32%
37%
36%
21%
24%
51%
53%
30%
35%
Q1
51%
30%
36%
23%
53%
32%
Q2
50%
37%
41%
21%
51%
34%
Q3
57%
38%
43%
23%
63%
40%
FY08/3
Q4 Full year
50%
52%
37%
36%
41%
40%
30%
24%
57%
57%
41%
37%
Q1
52%
39%
43%
25%
52%
37%
(value base by sales of machine)
(C)2007 Ricoh Company, Ltd. All Rights Reserved.
July 26, 2007
14
Appendix of FY08/3 Q1 Results (2)
R&D, CAPEX and Depreciation & Amortization
(billions of yen)
R&D
%Sales
CAPEX
Depreciation
&Amotization
Free cash flow
FY08/3 FY08/3
FY07/3
Q1
25.3
5.2%
15.9
Q2
31.1
6.2%
23.2
Q3
27.9
5.5%
17.6
Q4 Full year Q1
30.5 114.9 27.2
5.3% 5.6% 5.1%
28.9
85.8
17.1
15.9
17.7
18.2
20.4
72.4
16.8
forecast
128.0
5.7%
90.0
76.0
(billions of yen)
Free cash ｆlow
FY06/3
FY07/3
FY08/3
forecast
53.4
51.8
65.0
*Expenditure for the establishment of
InfoPrint Solutions Company excluded
Overseas production ratio
Operating profit by Business segment
(billions of yen)
Office
Solutions
Industrial
Products
Others
Total
include corporate
& elimination
Sales
OP
OP Margin
Sales
OP
OP Margin
Sales
OP
OP Margin
Sales
OP
OP Margin
FY06/3
FY07/3
1,637.2
202.9
12.4%
120.6
-0.9
-0.7%
151.3
2.6
1.8%
1,909.2
148.5
7.8%
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
forecast
1,938.3
250.0
12.9%
143.3
4.5
3.0%
168.4
2.5
1.5%
2,250.0
195.0
8.7%
Copier
LP
FY07/3
Q1
FY08/3
Q1
70%
75%
70%
85%
(by units)
Impact of forex rates
Impact of forex rates per yen
On Sales
On Income before
income taxes
US$
3.2 billion yen
/ year
1.0 billion yen
/ year
EURO
3.0 billion yen
/ year
1.2 billion yen
/ year
*Intersegment sales excluded
(C)2007 Ricoh Company, Ltd. All Rights Reserved.
July 26, 2007
15
< Appendix > Balance Sheet Indexes
Total Assets turn over
Equity ratio
Assets turn over (per month)
Total Assets (billions of Yen)
0.93
2,000
0.95
0.95
0.96
2,041.1
1,884.9 1,852.7 1,953.6
0.97
2,243.4
0.95
Equity ratio (%)
Shareholders’ equity (billions of Yen)
0.93
2,313.5
2,055.1
1,500
42.9%
44.2%
795.1
862.9
47.0% 47.7% 47.7% 48.0%
45.0%
34.9%
1,000
1,070.9
960.2
980.2
1,111.0
30.0%
657.5
1,000
500
0
15.0%
0
End of
‘03/3
End of
‘04/3
End of
‘05/3
End of
‘06/3
End of
‘07/3
End of
‘06/6
0.0%
End of
‘03/3
End of
‘07/6
Inventories/Averaged cost of sales
End of
‘04/3
End of
‘05/3
End of
‘06/3
End of
‘06/6
End of
‘07/6
D/E ratio
(multiplies)
Total debt
(billions of Yen)
Debt/Equity ratio
Inventories/Averaged cost of sales (months)
End of
‘07/3
*RL : Ricoh Leasing Co. Ltd.
D/E ratio exclude RL
(multiplies)
Total debt exclude RL
(billions of Yen)
Inventories (billions of yen)
1.90
1.83
1.82
1.95
2.03
0.74
2.00
1,200
1.60
1,000
1.20
800
150
0.80
600 484.6
100
0.40
400
50
0.00
200
0
-0.40
1.76
300
1.72
250
200
146.1
184.3
169.2
167.4
183.7
203.5
145.0
End of
‘04/3
End of
‘05/3
End of
‘06/3
End of
‘07/3
End of
‘06/6
0.24
0.22
1.00
0.40
0.39
0.38
0.39
0.17
0.18
0.16
0.18
432.0
410.1
193.7
415.6
381.2
192.2
189.2
160.5
372.4
429.0
157.2
0.00
-0.50
-1.00
204.9
-1.50
0
-2.00
End of
‘03/3
End of
‘07/6
0.48
0.50
0.30
198.2
End of
‘03/3
0.54
End of
‘04/3
End of
‘05/3
End of
‘06/3
End of
‘07/3
(C)2007 Ricoh Company, Ltd. All Rights Reserved.
End of
‘06/6
End of
‘07/6
July 26, 2007
16
< Appendix > Financial Indexes
Dividend
Financial Indexes
ROE
Consolidated Payout Ratio
( Dividend per share / EPS )
17.8%
14.0%
12.6%
20.6%(forecast)
11.2%
18.1%
10.6%
18.3%
Operating income on sales
8.4%
7.7%
14.6%
7.7%
EPS (Yen)
153.10
160.28(forecast)
6.6%
11.0%(forecast)
7.9%
8.4%
8.7%(forecast)
7.8%
8.1%
8.3%(forecast)
7.1%
111.7
117.0 (forecast)
97.0
91.7
112.64
83.1
99.79
72.5
28
14
7.5%
Income before Tax on total assets
132.33
123.63
11.0%
10.0%
18
20
33(forecast)
24
FY08/3
FY03/3 FY04/3 FY05/3 FY06/3 FY07/3 (forecast)
当期純利益（億円）
FY08/3
FY03/3 FY04/3 FY05/3 FY06/3 FY07/3 (forecast)
Dividend per share (Yen)
(C)2007 Ricoh Company, Ltd. All Rights Reserved.
July 26, 2007
17