Consolidated Results for the 3 months ended December 31, 2009 January 29, 2010 Zenji Miura Corporate Executive Vice President, CFO Ricoh Company, Ltd. FY2010/3 Q3 Results Overview ¾ +11.4% y-o-y growth for operating income. Operating income grew q-o-q for three consecutive quarters. ¾ Market still tough. Sales declined y-o-y. Signs of recovery in some region. ¾ IT service and solution business keeps growing. ¾ Expenses reduction succeed beyond expectation. ¾ Generated ¥42.2bil free cash flow (for 9months) by improving inventory turn over and working capital management. ¾ Ricoh revised up its forecast for the FY2010/3. Operating income : ¥45.0bil (¥5.0bil up from previous forecast) Income before tax : ¥35.0bil (¥5.0bil up from previous forecast) Net income : ¥15.0bil (¥5.0bil up from previous forecast) January 29, 2010 (C)2009 Ricoh Company, Ltd. All Rights Reserved. 2 FY2010/3 Q3 Income Statement FY09/3 FY10/3 Q3 result Q3 result (billions of yen) Net sales 204.8 281.1 485.9 210.2 43.3% 23.7 4.9% 24.0 5.0% 12.6 2.6% 17.38 +24.00 US $1 96.21 89.75 -6.46 Euro 1 126.97 132.60 +5.63 (Overseas) Total Gross profit net sales % Operating income net sales % Income before income taxes net sales % Net income attribute to Ricoh Co. net sales % EPS (Yen) (Yen) Change 221.0 281.0 502.0 214.1 42.7% 21.3 4.2% 1.1 0.2% -4.8 -1.0% -6.62 (Japan) Exchange rate Y-o-Y Comparison Change(%) Change(%) without Forex -16.2 -7.3% -7.3% +0.0 +0.0% +2.2% -16.1 -3.2% -2.0% -3.9 -1.8% － +2.4 － － +11.4% － +22.8 +1,925.0% － － Investment (billions of yen) FY09/3 FY10/3 Q3 Q3 R&D (% on sales +17.4 － － － CAPEX Depreciation 30.2 25.8 6.0% 5.3%) 25.3 19.7 9.8 17.8 (tangible fixed assets) Q3 forex assumption 1US$ 1EURO ¥90.00 ¥130.00 January 29, 2010 (C)2009 Ricoh Company, Ltd. All Rights Reserved. 3 FY2010/3 Q3 Operating income y-o-y comparison (billions of yen) Gross profit items SG&A items 4.3 3.3 Sales 21.3 1.8 0.1 0.4 Expenses Forex, net R&D Product Cost Down 23.7 (+2.4) FY10/3 Q3 FY09/3 Q3 Operating income Operating income “ ” shows profit increase and “ ” shows profit decrease in this chart. January 29, 2010 (C)2009 Ricoh Company, Ltd. All Rights Reserved. 4 FY2010/3 Q3 Sales By Category By Area (billions of Yen) (billions of Yen) Change(without forex) 502.0 485.9 -3.2%(-2.0%) Change(without forex) 502.0 485.9 Other 32.1 25.9 59.9 29.8 25.1 -7.3%(-7.1%) 62.7 Industrial Products 28.5 119.5 30.5 115.3 -2.9%(-2.0%) 383.9 368.1 Network System Solutions +4.6%(+6.7%) Imaging Solutions -4.1%(-3.0%) 443.9 FY09/3 Q3 430.9 FY10/3 Q3 132.8 281.0 135.2 281.1 Other +6.8%(+4.3%) Europe -3.5%(-6.8%) The Americas +1.8%(+9.7%) Overseas +0.0%(+2.2%) 221.0 204.8 Japan Imaging & Solutions -2.9%(-1.7%) -3.2%(-2.0%) -7.3%(-7.3%) FY09/3 Q3 FY10/3 Q3 January 29, 2010 (C)2009 Ricoh Company, Ltd. All Rights Reserved. 5 FY2010/3 Q3 Business Segment Imaging & Solutions Total Total 443.9 59.9 430.9 Network System Solutions 62.7 OP Margin -2.9% (-1.7%) +4.6% (+6.7%) -6% -11% -1% (by value, LC base) -Printer growth (total): Printer hard: Printer non-hard: +1% +1% +1% (by value, LC base) (by value, LC base) (by value, LC base) (by value, LC base) (by value, LC base) -Color ratio (by value, for machine only) MFP: 57%, Printer: 34% [ Appendix ] OP by quarterly Imaging Solutions 383.9 Change(without forex) -MFP growth (total): MFP hard: MFP non-hard: 368.1 -4.1% (-3.0%) 42.7 OP Margin 9.3% (billions of Yen) 55.4 41.4 41.2 9.6% 23.8 41.2 [ Sales ] 27.6 41.4 [ OP ] [ Sales ] FY09/3 Q3 FY10/3 Q3 * Excluding “Corporate and Eliminations” 5.9 [ OP ] (billions of Yen) Q1 Q2 Q3 FY09/3 Q4 Q1 Q2 Q3 FY10/3 January 29, 2010 (C)2009 Ricoh Company, Ltd. All Rights Reserved. 6 Imaging & Solutions milestones Q3 New products MFP Printer (Japan) MP C1800, MP 6001GP, MP 7500RC (Overseas) MP 3351, MP 2851 (Japan) SP 6330, SP 6320, SP3210, GX e5500 Topics MP C1800 MP 3351 SP 6320 GX e5500 - New MFP MP6001GP with the world’s 1st biomass toner : Japan - MFP widget-based solution “App2Me” for cloud computing Biomass toner MP 6001GP Widgets January 29, 2010 (C)2009 Ricoh Company, Ltd. All Rights Reserved. 7 FY2010/3 Q3 Business Segment - Business almost on track Industrial Products - Improving profit Total Total 27.0 26.2 1.1 Intersegments 1.1 [ Example of products ] -3.0% Semiconductors -5.7% Thermal media Electric components [ Appendix ] OP by quarterly 25.9 Unaffiliated customers 25.1 -2.9% (-2.0%) (billions of Yen) 1.0 OP Margin OP Margin -6.4% -1.0% -0.2 -0.3 -0.4 -0.2 Q1 Q2 Q3 -1.7 -0.2 -1.7 [ Sales ] [ OP ] FY09/3 Q3 [ Sales ] [ OP ] FY10/3 Q3 * Excluding “Corporate and Eliminations” (billions of Yen) -3.9 Q1 Q2 Q3 FY09/3 Q4 FY10/3 January 29, 2010 (C)2009 Ricoh Company, Ltd. All Rights Reserved. 8 FY2010/3 Q3 Business Segment - Tough business condition persists Other - DC business Introducing new camera unit system ＧＸＲ [ Appendix ] OP by quarterly 32.1 29.8 (billions of Yen) -7.3% (-7.1%) 1.0 0.5 OP Margin OP Margin -3.1% -3.0% -0.2 -1.0 [ Sales ] -0.2 -0.8 [ OP ] [ Sales ] FY09/3 Q3 [ OP ] FY10/3 Q3 * Excluding “Corporate and Eliminations” (billions of Yen) -1.0 Q1 Q2 Q3 FY09/3 Q4 Q1 -0.8 -0.8 Q2 Q3 FY10/3 January 29, 2010 (C)2009 Ricoh Company, Ltd. All Rights Reserved. 9 FY2010/3 Q3 Geographic Segment * Excluding “Corporate and Eliminations” Japan (billions of Yen) (billions of Yen) 136.0 +0.2% 135.7 334.1 318.3 -4.7% OP Margin OP Margin 3.7% 4.1% 13.0 12.4 [ Sales ] The Americas [ OP ] [ Sales ] FY09/3 Q3 OP Margin OP Margin -5.4% -2.5% -3.3 -7.3 [ OP ] [ Sales ] FY10/3 Q3 [ OP ] [ Sales ] FY09/3 Q3 [ OP by quarterly ] [ OP ] FY10/3 Q3 [ OP by quarterly ] 26.0 21.6 -1.2 Q1 Q2 Q3 FY09/3 -4.0 13.0 12.4 1.4 2.5 Q4 Q1 -4.7 -3.6 -3.3 Q1 Q2 Q3 -7.3 5.3 -13.2 Q2 Q3 FY10/3 Q1 Q2 Q3 FY09/3 Q4 FY10/3 January 29, 2010 (C)2009 Ricoh Company, Ltd. All Rights Reserved. 10 FY2010/3 Q3 Geographic Segment * Excluding “Corporate and Eliminations” Europe (billions of Yen) 119.1 Other (billions of Yen) 115.6 -2.9% OP Margin OP Margin 66.3 7.0% 8.1 5.5% 6.6 OP Margin 62.5 -5.8% 2.7% 6.5% 4.0 1.7 [ Sales ] [ OP ] [ Sales ] FY09/3 Q3 [ OP ] [ Sales ] FY10/3 Q3 [ OP ] [ Sales ] FY09/3 Q3 [ OP by quarterly ] OP Margin [ OP ] FY10/3 Q3 [ OP by quarterly ] 11.6 8.4 6.6 5.2 6.4 8.1 4.5 3.7 1.7 2.6 2.4 Q4 Q1 3.5 4.0 Q2 Q3 -7.3 Q1 Q2 Q3 FY09/3 Q4 Q1 Q2 Q3 FY10/3 Q1 Q2 Q3 FY09/3 FY10/3 January 29, 2010 (C)2009 Ricoh Company, Ltd. All Rights Reserved. 11 Balance Sheet as of December 31, 2009 Assets Liabilities and Equity As of Dif ｆ . from Mar 31, '09 Dec 31, 2009 (billions of yen) Current Assets Cash & time deposits Trade recievables Inventories Other current assets Fixed Assets Tangible fixed assets Finance recievable Other investments (billions of yen) 1,116.7 218.4 645.0 181.3 71.9 -95.1 -42.1 -35.3 -10.1 -7.4 Current Liabilities 1,265.7 259.9 456.3 549.4 -35.9 -9.4 -8.9 -17.6 Fixed Liabilities 674.4 253.9 221.4 199.1 -99.0 -31.4 -48.3 -19.1 Total Equity 695.8 497.0 155.9 42.8 1,370.3 962.2 49.8 1,012.1 -19.8 -12.3 -0.6 -6.7 -118.8 -13.1 +0.8 -12.2 Total liabilities and Equity 2,382.4 -131.0 718.4 -60.7 Trade payables Short-term borrowings Other current liabilities Long-term indebtedness Accrued pension&severance costs Other fixed liabilities Total Liabilities Total Shareholders' Investment Noncontrolling Interest Total Assets 2,382.4 -131.0 Exchange rate as of December 31, 2009 : US$ 1 = ¥ 92.10 ( - 6.13) EURO 1 = ¥ 132.00 ( +2.16) As of Dif ｆ . from Mar 31, '09 Dec 31, 2009 Total debt January 29, 2010 (C)2009 Ricoh Company, Ltd. All Rights Reserved. 12 Balance Sheet Indexes Total assets turn over (per month) 0.95 0.96 1,953.6 2,041.1 0.97 1.00 2,243.4 2,214.3 0.88 0.92 Equity ratio 47.7% 48.8% 44.2% 47.0% 0.80 38.8% 41.0% 40.4% 2,513.4 2,405.1 2,382.4 862.9 960.2 1,070.9 1,080.1 975.3 984.8 962.2 Shareholders’ equity (billions of Yen) Total Assets (billions of Yen) End of Mar 05 End of Mar 06 End of Mar 07 End of Mar 08 End of Mar 09 End of Dec 08 End of End of End of End of End of End of End of Mar 05 Mar 06 Mar 07 Mar 08 Mar 09 Dec 08 Dec 09 End of Dec 09 Inventories/Averaged cost of sales (month) Debt/Equity ratio (multiplies) 2.22 1.90 1.82 1.83 1.78 D/E ratio 1.88 1.86 0.48 0.40 0.39 0.36 0.22 0.17 0.18 0.15 0.80 0.73 0.75 0.46 0.44 0.44 224.1 167.4 169.2 184.3 192.0 191.5 181.3 D/E ratio exclude RL 410.1 Total debt (billions of Yen) Inventories (billions of yen) 192.2 End of Mar 05 End of Mar 06 End of Mar 07 End of Mar 08 End of Mar 09 End of Dec 08 Total debt exclude RL (billions of Yen) End of Dec 09 381.2 160.5 415.6 189.2 384.3 779.1 450.3 717.2 429.2 718.4 427.8 165.3 End of End of End of End of End of End of End of Mar 05 Mar 06 Mar 07 Mar 08 Mar 09 Dec 08 Dec 09 *RL=Ricoh Leasing Co. January 29, 2010 (C)2009 Ricoh Company, Ltd. All Rights Reserved. 13 FY2010/3 Q3 Statement of Cash Flow < 9months > < by Annually > FY09/3 Apr-Dec (billions of yen) Consolidated net income Depreciation and amortization [ Net income + Depreciation and amortization ] Other operating activities Net cash by operating activities Plant and equipment Purchase of business Other investing activities Net cash by investing activities [ Free cash flow ( oparating + 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 31.7 74.4 [ 106.2 ] -97.4 8.7 -72.2 -158.6 -19.7 -250.7 [ -241.9 ] 244.1 -17.6 -15.4 155.1 FY10/3 Apr-Dec 15.8 73.4 [ 89.2 ] 19.6 108.9 -47.4 -4.7 -14.5 -66.7 [ 42.2 ] -81.9 -1.6 -41.3 217.1 Free Cash Flow 36.5 53.4 (billions of yen) 51.8 42.2 -3.9 -195.6 -241.9 FY 05/3 FY 06/3 FY 07/3 FY 08/3 FY 09/3 FY09/3 FY10/3 9m 9m Free cash flow by quarterly 46.2 5.9 23.7 -20.4 -24.1 -197.4 Q1 Q2 Q3 FY09/3 Q4 Q1 Q2 Q3 FY10/3 January 29, 2010 (C)2009 Ricoh Company, Ltd. All Rights Reserved. 12.4 14 FY2010/3 forecast FY09/3 Results FY10/3 forecast (on Oct '09) FY10/3 Forecast 938.3 (Overseas) 1,153.3 Total 2,091.6 Gross profit 854.3 net sales % 40.8% Operating income 74.5 net sales % 3.6% Income before income taxes 30.9 net sales % 1.5% Net income attribute to Ricoh Co. 6.5 net sales % 0.3% EPS (Yen) 9.02 865.0 1,200.0 2,065.0 810.0 39.2% 40.0 1.9% 30.0 1.5% 10.0 0.5% 13.78 855.0 1,145.0 2,000.0 807.0 40.4% 45.0 2.3% 35.0 1.8% 15.0 0.8% 20.67 +11.65 US $1 100.55 92.78 92.72 -7.83 Euro 1 143.74 131.62 132.27 -11.47 (billions of yen) Net sales Exchange rate (Yen) (Japan) Y-o-Y comparison with new forecast Change Change(%) Change(%) without Forex -83.3 -8.9% -8.9% -8.3 -0.7% +7.6% -91.6 -4.4% +0.2% -47.3 -5.5% － -29.5 － +4.0 － 1US$ 1EURO -39.6% － +13.1% － ¥90.00 ¥130.00 OP by business segment － +8.4 +129.7% － Q4 forex assumption FY09/3 FY10/3 result forecast (billions of yen) Imaging&Solutions (OP margin 145.3 114.0 7.9% 6.4%) Industrial Products -4.9 -2.0 (OP margin -4.1% -2.0%) Other 0.3 -2.0 (OP margin 0.3% -1.6%) * Excluding “Corporate and Eliminations” Investment － (billions of yen) R&D FY09/3 FY10/3 result forecast 124.4 112.0 5.9% 5.6%) 96.9 74.8 75.0 70.0 (% on sales CAPEX Depreciation (tangible fixed assets) January 29, 2010 (C)2009 Ricoh Company, Ltd. All Rights Reserved. 16 FY2010/3 Operating income forecast y-o-y comparison Gross profit items 0.9 ↓ Forecast on Oct ’09 > 10.0 ↓ (billions of yen) SG&A items 10.4 ↓ 31.7 ↓ 24.1 ↓ 40.0 ↓ 12.4 1.2 9.0 Sales 26.1 R&D Product Cost Down Expenses 74.5 23.6 Forex, net 45.0 (-29.5) FY09/3 FY10/3 Operating income results Operating income forecast “ ” shows profit increase and “ Forex assumptions (yen) US$ EURO FY09/3 result 100.55 143.74 FY10/3 forecast difference 92.72 -7.83 132.27 -11.47 ” shows profit decrease in this chart. Forex impacts (billions of yen) Sales Impacts of forex per yen annually US$ EURO 6.5 3.5 Pre-tax profit 1.3 1.5 January 29, 2010 (C)2009 Ricoh Company, Ltd. All Rights Reserved. 17 FY2010/3 direction Sales y-o-y (%) 16.9% *Including forex impact for Overseas Overseas 19.3% 14.3% Japan 1.8% Overseas (excluding InfoPrint&IKON impact) 3.1% 3.0% 3.3% -2.2% 0.8% -4.4% 49.4 47.4 37.9 -1.1% -1.4% -3.8% Operating Income (billions of yen) 46.6 - Production Printing business - IT service & Solutions business - IKON - Structural Reform -8.6% -7.2% 0.0% 2.3% -4.1% -2.1% -9.6% -7.3% -12.5% -11.6% -14.0% 39.7 25.3 21.3 6.0 7.9 Q1 Q2 23.7 7.2 -11.8 Q1 Q2 Q3 FY08/3 Q4 Q1 Q2 Q3 FY09/3 Q4 Q3 Q4 forecast FY10/3 January 29, 2010 (C)2009 Ricoh Company, Ltd. All Rights Reserved. 18 Annual Financial Indexes Dividend Financial Indexes 365.9% ～ ROE ～ Consolidated Payout Ratio ( Dividend per share / EPS ) 17.8% 1.8% 7.1% 7.8% 2.3% 2.2% 9.9% 8.1% 7.8% 1.3% 1.6% 1.4% Income before Tax on total assets DOE 153.10 11.0% 2.6% 2.0% 1.9% 10.6% 159.7% 22.6% 18.1% 18.3% 10.0% 0.6% 111.7 146.04 106.4 97.0 132.33 EPS (Yen) 112.64 83.1 Dividend per share (Yen) Net income (billions of yen) 20 24 28 33 9.02 33 33 20.67 FY05/3 FY06/3 FY07/3 FY08/3 FY09/3 FY10/3 forecast 6.5 15.0 FY05/3 FY06/3 FY07/3 FY08/3 FY09/3 FY10/3 forecast January 29, 2010 (C)2009 Ricoh Company, Ltd. All Rights Reserved. 19