January 31, 2014 QUARTERLY REPORT Nine months ended December 31, 2013 Results for the Period from April 1, 2013 to December 31, 2013 Three months ended December 31, 2013 Results for the Period from October 1, 2013 to December 31, 2013 Performance Outline (Consolidated) (1) Third Quarter ended December 31, 2012, 2013 and Year ending March 31, 2014 (Forecast) (Billions of yen) Third Quarter ended December 31, 2012 Results Third Quarter ended December 31, 2013 Results Year ending March 31, 2014 Forecast Change Change Domestic sales Overseas sales Net sales Gross profit Operating income Income before income taxes Net income attributable to Ricoh Company, Ltd. 640.9 746.1 1,387.0 563.4 40.4 36.2 17.3 672.3 939.2 1,611.5 657.0 78.2 75.8 43.5 4.9% 25.9% 16.2% 16.6% 93.2% 109.2% 151.8% 914.0 1,286.0 2,200.0 892.4 120.0 115.0 70.0 5.0% 22.0% 14.3% 16.1% 89.2% 97.7% 115.6% Exchange rate (Yen/US$) Exchange rate (Yen/EURO) 80.05 102.26 99.42 132.31 19.37 30.05 99.57 134.22 16.51 27.14 23.86 60.09 36.23 96.55 51.77 - - - - - 28.3 -76.2 25.4 134.4 34.4 -60.8 43.3 144.1 6.0 15.4 17.8 9.7 - - 61.1 44.5 82.1 55.2 54.3 85.9 -5.8 9.7 3.7 80.0 74.0 117.0 -6.5 13.5 4.9 Net income attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) Net income attributable to Ricoh Company, Ltd. shareholders per share-diluted (yen) Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Capital expenditures Depreciation for tangible fixed assets R&D expenditures March 31, 2013 Total assets Ricoh Company, Ltd. shareholders' equity Interest-bearing debt Ricoh Company, Ltd. shareholders' equity ratio (%) Ricoh Company, Ltd. shareholders' equity per share (yen) December 31, 2013 Change 2,360.6 897.9 702.7 2,560.4 1,003.4 778.1 199.7 105.4 75.4 38.0 39.2 1.2 1,238.55 1,384.23 145.68 (2) Three months ended December 31, 2012 and 2013 (Billions of yen) Three months ended December 31, 2013 Change Results Three months ended December 31, 2012 Results Domestic sales Overseas sales Net sales Gross profit Operating income Income before income taxes Net income attributable to Ricoh Company, Ltd. Exchange rate (Yen/US$) 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) Capital expenditures Depreciation for tangible fixed assets R&D expenditures 210.1 259.4 469.6 188.9 13.0 11.7 5.5 228.5 327.4 555.9 226.6 32.3 31.5 18.8 8.7% 26.2% 18.4% 19.9% 147.0% 167.4% 237.3% 81.27 105.43 100.46 136.70 19.19 31.27 7.71 26.00 18.29 - - - 19.7 13.9 27.4 17.0 18.9 28.3 -2.6 5.0 0.9 Ricoh Company, Ltd. * The Company bases the forecast estimates for the fiscal year ending March 31, 2014 above upon information currently available to management, which involves risks and uncertainties that could cause actual results to differ materially from those projected. 1 Ricoh Company, Ltd. and Consolidated Subsidiaries Financial Highlights for the Third Quarter Ended December 31, 2013 (U.S. GAAP Financial Information) 1. Results for the Period from April 1, 2013 to December 31, 2013 (1) Operating Results Third Quarter ended December 31, 2012 1,387,099 -0.7 40,483 36,274 17,302 - (Millions of yen) Third Quarter ended December 31, 2013 1,611,521 16.2 78,201 93.2 75,894 109.2 43,563 151.8 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) 23.86 Net income attributable to Ricoh Company, Ltd. shareholders per share-diluted (yen) Notes: i. Comprehensive income: ¥ 133,732 million (222.0%) (¥ 41,526 million ( - %) in income in previous fiscal year) (2) Financial Position March 31, 2013 2,360,697 958,658 897,996 38.0 Total assets Total equity Ricoh Company, Ltd. shareholders' equity Ricoh Company, Ltd. shareholders' equity ratio (%) 60.09 - (Millions of yen) December 31, 2013 2,560,422 1,067,668 1,003,468 39.2 2. Dividend information Year ended Year ending March 31, 2013 March 31, 2014 (Results) (Forecast) Cash dividends, applicable to the year (yen) Interim (yen) Year-end (yen) 29.00 12.50 16.50 33.00 16.50 16.50 Notes: Revision of expected dividends during this period: No 3. Forecast of Operating Results from April 1, 2013 to March 31, 2014 (Millions of yen) Year ending March 31, 2014 2,200,000 120,000 115,000 70,000 Net sales Operating income Income before income taxes Net income attributable to Ricoh Company, Ltd. Net income attributable to Ricoh Company, Ltd. shareholders per share (yen) 96.55 Notes: Revision of forecast of consolidated operating results during this period: Yes 4. Others (1) Changes in significant subsidiaries: No (2) Adoption of concise quarterly accounting method or procedure: No (3) Changes in accounting method: Yes * For details see "4.Others" on page 5. (4) Number of common stock outstanding (including treasury stock): As of December 31, 2013 744,912,078 shares As of March 31, 2013 744,912,078 shares (5) Number of treasury stock: As of December 31, 2013 19,982,034 shares As of March 31, 2013 19,875,662 shares (6) Average number of common stock: As of December 31, 2013 725,000,489 shares As of December 31, 2012 725,069,001 shares 2 Consolidated Performance 1. Operating results *Overview Consolidated net sales of Ricoh Group for the third quarter of fiscal year 2013 (the nine months period from April 1, 2013 to December 31, 2013) increased by 16.2% as compared to the previous corresponding period, to ¥1,611.5 billion. During this period, the average Yen exchange rates were ¥99.42 against the U.S. dollar (down ¥19.37 from the previous corresponding period) and ¥132.31 against the Euro (down ¥30.05 from the previous corresponding period). Net sales would have increased by 2.5% excluding impact of such foreign currency exchange fluctuation. The Japanese economy showed signs of recovery, with the weakening Yen and the increase in stock prices achieved through the economic and monetary policies introduced by the government and the Bank of Japan. However, with the announcement of the increase in consumption tax by the government, the overall economic outlook continues to remain unpredictable. Under such conditions, domestic sales in the Imaging & Solutions segment and the Other segment increased, resulting in overall sales in Japan to increase by 4.9% as compared to the previous corresponding period. Outside of the domestic market, the U.S. economy continued its recovery towards the end of the year as the market expressed relief over the end of the government shutdown. The European economy, although showing signs of a modest recovery, still remains uncertain as low inflation threatens the region's economic recovery. Slowdown in growth is also seen in China and in the rest of the emerging markets within Asia. Even under such economic conditions, the weakening trend of the Yen during the nine month period to the end of the third quarter has contributed to the increase in sales overseas. As for overseas sales by region, sales in the Americas increased by 22.6% compared to the previous corresponding period (a decrease of 1.3% excluding foreign currency exchange fluctuation), sales in Europe, Middle East and Africa increased by 28.1% (a decrease of 0.9% excluding foreign currency exchange fluctuation). Sales in Other region, which includes China, South East Asia and Oceania, increased by 31.2% (an increase of 10.3%, excluding foreign currency exchange fluctuation). As a result, sales in the overseas market increased by 25.9% compared to the previous corresponding period. Excluding effects of foreign currency fluctuations, net sales in overseas would have increased by 0.4% compared to the previous corresponding period. Gross profit increased by 16.6% as compared to the previous corresponding period to ¥657.0 billion, due to increase in sales, cost reductions and the weakening of the Yen. Although group-wide activities to streamline costs have contributed in controlling selling, general and administrative expenses, these expenses have increased by 10.7% as compared to the previous corresponding period to ¥578.8 billion, due to the weakening of the Yen. As a result, operating income increased to ¥78.2 billion (an increase of 93.2% compared to the previous corresponding period). Other income increased compared to the previous corresponding period due to gain on sale of investment securities. Income before income taxes increased by 109.2% as compared to the previous corresponding period, to ¥75.8 billion. As a result, net income attributable to Ricoh Company, Ltd. increased by ¥26.2 billion (151.8%) as compared to the previous corresponding period, to ¥43.5 billion. Comprehensive income increased significantly compared to the previous corresponding period, primarily by the increase in consolidated net income and cumulative translation adjustments due to the weakening trend of the Yen, to ¥133.7 billion. 3 *Conditions by Product Line Conditions by Product Line for the nine months ended December 31, 2013 are as follows; Imaging & Solutions (Sales up 17.0% to ¥1,413.0 billion) Office Imaging (Sales up 13.0% to ¥1,075.2 billion) Sales in this category increased by 13.0% as compared to the previous corresponding period, to ¥1,075.2 billion. The sales of the newly released color MFP products along with the weakening of the Yen have contributed to the overall increase in sales compared to the previous corresponding period. Production Printing (Sales up 26.9% to ¥132.9 billion) Sales in this category increased by 26.9% as compared to the previous corresponding period, to ¥132.9 billion. The weakening of the Yen, and increase in sales of new products and after-sales service revenue in the overseas market have contributed to the increase in the overall sales during this period. Network System Solutions (Sales up 35.9% to ¥204.8 billion) Sales in this category increased by 35.9% as compared to the previous corresponding period, to ¥204.8 billion due primarily to the increase in sales of personal computers and related products in the domestic market and the increase in sales of IT services in both the domestic and overseas market. As a result, sales in the Imaging & Solutions segment increased by 17.0% as compared to the previous corresponding period, to ¥ 1,413.0 billion. Operating income increased by 35.9% as compared to the previous corresponding period, to ¥124.8 billion due to increase in gross profit achieved by increase in sales and by the weakening of the Yen. Industrial Products (Sales up 12.2% to ¥78.7 billion) Sales increases in the Optical Unit business and semiconductors devices overseas have contributed to the increase in the Industrial Products segment by 12.2%, as compared to the previous corresponding period, to ¥78.7 billion. As a result, the operating income in the Industrial Products segment increased to a total of ¥3.6 billion (operating loss of ¥0.4 billion in the previous corresponding period). Other (Sales up 9.2% to ¥119.7 billion) Net sales in the Other segment increased by 9.2% as compared to the previous corresponding period, to ¥119.7 billion. The market release of new digital camera products and the lease financing business contributed to the increase in sales in this segment. As a result, the operating loss in the Other segment amounted to ¥0.3 billion (operating loss of ¥2.3 billion in the previous corresponding period). 2. Financial Position *Assets, Liabilities and Equity For Assets, lease receivables increased from the end of the previous fiscal year due to increases in lease contracts. The yen equivalent of foreign-currency-denominated assets increased due to the weakening of the Yen. As a result, total assets increased by ¥199.7 billion, to ¥2,560.4 billion as compared to the previous corresponding period. For Liabilities, accrued pension and severance costs decreased, but interest bearing debt increased. As a result, total liabilities increased by ¥90.7 billion, to ¥1,492.7 billion as compared to the previous corresponding period. For Total Equity, accumulated other comprehensive loss decreased due primarily to the increase of cumulative translation adjustments reflecting exchange fluctuation from the end of the previous period. As a result, total Equity increased by ¥109.0 billion from the end of the previous fiscal year, to ¥1,067.6 billion. *Cash Flows (Nine months from April 1, 2013 to December 31, 2013) Net cash provided by operating activities in this period increased by ¥6.0 billion to ¥34.4 billion due to increase in net income before taxes. Net cash used in investing activities in this period decreased by ¥15.4 billion as compared to the previous corresponding period, to ¥ 60.8 billion. As a result, free cash outflows generated by operating and investing activities decreased by ¥21.4 billion, compared to the previous corresponding period, to ¥26.4 billion. Net cash provided by financing activities in this period increased by ¥17.8 billion as compared to the previous corresponding period, to ¥43.3 billion due primarily to proceeds from interest-bearing debt. As a result, cash and cash equivalents as of December 31, 2013 increased by ¥27.0 billion as compared to the end of the previous fiscal year, to ¥144.1 billion. 4 3. Forecast for the entire fiscal year Based upon the changes in the business environment (i.e. exchange rate fluctuation) along with the third quarter business results, Ricoh will revise its forecast upwards for sales and downward for gross profit, operating income, income before income taxes and net income attributable to Ricoh Company, Ltd from those previously announced in October. Furthermore, in order to more accurately reflect the recent fluctuation in the exchange rate, Ricoh assumes exchange rates of ¥100.00 against the U.S. dollar and of ¥140.00 against the Euro in the fourth quarter. The year-end cash dividends have not changed from our forecast announced in October. Our performance forecast for fiscal year ending March 31, 2014 is as follows: Exchange Rate Assumptions for the full year ending March 31, 2014 US$ 1 = ¥99.57 (¥83.06 in previous fiscal year) EURO 1 = ¥134.22 (¥107.08 in previous fiscal year) (Billions of yen) Domestic sales Overseas sales Net sales Gross profit Operating income Income before income taxes Net income attributable to Ricoh Company, Ltd. Year ending March 31, 2014 Previous Forecast Revised Forecast (A) (B) 923.0 914.0 1,257.0 1,286.0 2,180.0 2,200.0 896.0 892.4 140.0 120.0 135.0 115.0 80.0 70.0 -9.0 29.0 20.0 -3.6 -20.0 -20.0 Year ended March 31, 2013 Results (C) 870.3 1,054.1 1,924.4 768.6 63.4 58.1 (B-C)/C 5.0% 22.0% 14.3% 16.1% 89.2% 97.7% -10.0 32.4 115.6% Change (B-A) Change * Ricoh bases the forecast estimates for the year ending March 31, 2014 above upon information currently available to management, which involves risks and uncertainties that could cause actual results to differ materially from those projected. 4. Others (1) Changes in significant subsidiaries: Not applicable (2) Adoption of concise quarterly accounting method or procedure: Not applicable (3) Changes in accounting method: Ricoh adopted retroactively Accounting Standards Update (ASU) 2011-11 and ASU 2013-01 from April 1 2013. ASU 2011-11 requires an entity to disclose information about offsetting and related arrangements. ASU 2013-01 replaced ASU 2011-11. The updates create new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of assets and liabilities or subject to an enforceable master netting arrangement or similar agreement. These ASU’s impact disclosures only and will have no impact on Ricoh’s consolidated financial position. Ricoh adopted ASU 2013-02 from April 1 2013. This ASU requires an entity to report the effect of reclassifications out of accumulated other comprehensive income. This ASU will only impact disclosures and will have no impact on Ricoh’s consolidated financial position. 5 5. Consolidated Financial Statements (1) Consolidated Balance Sheets Assets December 31, 2013 (Millions of yen) Change 120,331 745,470 195,367 65,051 1,126,219 147,856 807,984 228,469 67,115 1,251,424 27,525 62,514 33,102 2,064 125,205 290,875 466,608 476,995 1,234,478 2,360,697 292,839 513,038 503,121 1,308,998 2,560,422 1,964 46,430 26,126 74,520 199,725 March 31, 2013 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 March 31, 2013 December 31, 2013 117,051 144,126 3,280 3,730 Liabilities and Equity December 31, 2013 (Millions of yen) Change 256,538 226,399 217,430 700,367 263,602 289,035 250,021 802,658 7,064 62,636 32,591 102,291 476,381 164,289 61,002 701,672 1,402,039 489,159 140,884 60,053 690,096 1,492,754 12,778 -23,405 -949 -11,576 90,715 135,364 186,083 759,783 -146,088 -37,146 897,996 60,662 958,658 2,360,697 135,364 186,083 779,418 -60,131 -37,266 1,003,468 64,200 1,067,668 2,560,422 19,635 85,957 -120 105,472 3,538 109,010 199,725 March 31, 2013 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; March 31, 2013 December 31, 2013 8,665 16,283 -64,266 -57,172 -861 -275 -89,626 -18,967 Net unrealized holding gains and losses on available-for-sale securities Pension liability adjustments Net unrealized gains and losses on derivative instruments Cumulative translation adjustments Reference: Exchange rate US$ 1 EURO 1 March 31, 2013 ¥94.05 ¥120.73 6 December 31, 2013 ¥105.39 ¥145.05 Change 7,618 7,094 586 70,659 (2) Consolidated Statements of Income and Consolidated Statement of Comprehensive Income Consolidated Statements of Income (Millions of yen) Third Quarter ended December 31, 2012 and 2013 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 (%) Gain on sale of investment securities Percentage of net sales (%) Other, net Percentage of net sales (%) Income before income taxes, equity income and noncontrolling interests Percentage of net sales (%) Provision for income taxes Percentage of net sales (%) Equity in earnings of affiliates Percentage of net sales (%) 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 (%) Reference : Exchange rate US$ 1 EURO 1 Third Quarter ended December 31, 2012 1,387,099 823,697 59.4 563,402 40.6 522,919 37.7 40,483 2.9 Third Quarter ended December 31, 2013 1,611,521 954,502 59.2 657,019 40.8 578,818 35.9 78,201 4.9 1,916 0.1 5,047 0.4 24 0.0 1,102 0.0 1,548 0.1 5,237 0.3 2,324 0.1 942 0.1 36,274 2.6 15,510 1.1 47 0.0 20,811 1.5 3,509 0.3 17,302 1.2 75,894 4.7 28,163 1.7 -29 -0.0 47,702 3.0 4,139 0.3 43,563 2.7 December 31, 2012 ¥80.05 ¥102.26 December 31, 2013 ¥99.42 ¥132.31 Three months ended December 31, 2012 469,632 280,636 59.8 188,996 40.2 175,901 37.4 13,095 2.8 Three months ended December 31, 2013 555,944 329,315 59.2 226,629 40.8 194,288 35.0 32,341 5.8 380 0.1 1,492 0.3 -1 -0.0 198 0.1 418 0.1 1,609 0.3 32 0.0 -329 -0.1 11,784 2.5 5,109 1.1 -10 -0.0 6,665 1.4 1,076 0.2 5,589 1.2 31,511 5.7 11,350 2.1 6 0.0 20,167 3.6 1,315 0.2 18,852 3.4 Reference : Exchange rate US$ 1 EURO 1 December 31, 2012 ¥81.27 ¥105.43 December 31, 2013 ¥100.46 ¥136.70 % 16.2 15.9 93,617 16.6 55,899 10.7 37,718 93.2 -368 -19.2 190 3.8 2,300 - -160 -14.5 39,620 109.2 12,653 81.6 -76 - 26,891 129.2 630 18.0 26,261 151.8 (Millions of yen) Three months ended December 31, 2012 and 2013 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 (%) Gain (loss) on sale of investment securities Percentage of net sales (%) Other, net Percentage of net sales (%) Income before income taxes, equity income and noncontrolling interests Percentage of net sales (%) Provision for income taxes Percentage of net sales (%) Equity in earnings of affiliates Percentage of net sales (%) 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 (%) Change 224,422 130,805 7 Change 86,312 48,679 % 18.4 17.3 37,633 19.9 18,387 10.5 19,246 147.0 38 10.0 117 7.8 33 - -527 - 19,727 167.4 6,241 122.2 16 - 13,502 202.6 239 22.2 13,263 237.3 Consolidated Statements of Comprehensive Income (Millions of yen) Third Quarter ended December 31, 2012 and 2013 Net income Other comprehensive income (loss), net of tax Net unrealized holding gains and losses on available-for-sale securities Pension liability adjustments Net unrealized gains and losses on derivative instruments Foreign currency translation adjustments Total Comprehensive income Comprehensive income attributable to noncontrolling interests Comprehensive income attributable to Ricoh Company, Ltd. Reference : Exchange rate US$ 1 EURO 1 Third Quarter ended December 31, 2012 20,811 Third Quarter ended December 31, 2013 47,702 Change 26,891 -449 -747 -117 22,028 20,715 41,526 3,351 38,175 7,669 6,993 889 70,479 86,030 133,732 4,212 129,520 8,118 7,740 1,006 48,451 65,315 92,206 861 91,345 December 31, 2012 ¥80.05 ¥102.26 December 31, 2013 ¥99.42 ¥132.31 Three months ended December 31, 2012 and 2013 (Millions of yen) Net income Other comprehensive income (loss), net of tax Net unrealized holding gains and losses on available-for-sale securities Pension liability adjustments Net unrealized gains and losses on derivative instruments Foreign currency translation adjustments Comprehensive income Comprehensive income attributable to noncontrolling interests Comprehensive income attributable to Ricoh Company, Ltd. Reference : Exchange rate US$ 1 EURO 1 8 Three months ended Three months ended December 31, 2013 December 31, 2012 6,665 20,167 1,040 -4,195 175 50,876 47,896 54,561 1,204 53,357 4,480 837 384 43,766 49,467 69,634 1,552 68,082 December 31, 2012 ¥81.27 ¥105.43 December 31, 2013 ¥100.46 ¥136.70 Change 13,502 3,440 5,032 209 -7,110 1,571 15,073 348 14,725 Consolidated Sales by Product Category Third Quarter ended December 31, 2012 and 2013 (Millions of yen) Third Quarter ended December 31, 2012 <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 (%) Reference : Exchange rate US$ 1 EURO 1 Third Quarter ended December 31, 2013 951,753 68.6 104,774 7.6 150,714 10.9 1,207,241 87.1 1,075,257 66.7 132,955 8.3 204,829 12.7 1,413,041 87.7 70,201 5.1 Change 123,504 13.0 28,181 26.9 54,115 35.9 205,800 17.0 78,759 4.9 8,558 12.2 109,657 7.8 1,387,099 100.0 119,721 7.4 1,611,521 100.0 10,064 9.2 224,422 16.2 December 31, 2012 ¥80.05 ¥102.26 December 31, 2013 ¥99.42 ¥132.31 Three months ended December 31, 2012 and 2013 (Millions of yen) Three months ended December 31, 2012 <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 (%) Reference : Exchange rate US$ 1 EURO 1 % Three months ended December 31, 2013 Change % 325,473 69.3 35,339 7.5 48,792 10.4 409,604 87.2 370,551 66.7 47,680 8.6 71,593 12.8 489,824 88.1 45,078 13.8 12,341 34.9 22,801 46.7 80,220 19.6 22,764 4.8 27,165 4.9 4,401 19.3 37,264 8.0 469,632 100.0 38,955 7.0 555,944 100.0 1,691 4.5 86,312 18.4 December 31, 2012 ¥81.27 ¥105.43 December 31, 2013 ¥100.46 ¥136.70 *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 9 Consolidated Sales by Geographic Area Third Quarter ended December 31, 2012 and 2013 (Millions of yen) Third Quarter ended December 31, 2012 <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 (%) Reference : Exchange rate US$ 1 EURO 1 Third Quarter ended December 31, 2013 640,902 46.2 746,197 53.8 353,827 25.5 294,340 21.2 98,030 7.1 1,387,099 100.0 672,306 41.7 939,215 58.3 433,658 26.9 376,918 23.4 128,639 8.0 1,611,521 100.0 December 31, 2012 ¥80.05 ¥102.26 December 31, 2013 ¥99.42 ¥132.31 Change 4.9 193,018 25.9 79,831 22.6 82,578 28.1 30,609 31.2 224,422 16.2 Three months ended December 31, 2012 and 2013 (Millions of yen) Three months ended December 31, 2012 <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 (%) Reference : Exchange rate US$ 1 EURO 1 % 31,404 Three months ended December 31, 2013 210,140 44.7 259,492 55.3 119,508 25.4 107,177 22.8 32,807 7.1 469,632 100.0 228,502 41.1 327,442 58.9 147,589 26.5 136,342 24.5 43,511 7.9 555,944 100.0 December 31, 2012 ¥81.27 ¥105.43 December 31, 2013 ¥100.46 ¥136.70 10 Change % 18,362 8.7 67,950 26.2 28,081 23.5 29,165 27.2 10,704 32.6 86,312 18.4 (3) Consolidated Statements of Cash Flows (Millions of yen) Third Quarter ended Third Quarter ended December 31, 2012 December 31, 2013 I. Cash Flows from Operating Activities: Consolidated net income Adjustments to reconcile consolidated net income to net cash provided by operating activitiesDepreciation and amortization Equity in earnings of affiliates, net of dividends received Deferred income taxes Gain on sale of investment securities Pension and severance costs, less payments Changes in assets and liabilitiesIncrease in trade receivables Increase in inventories Increase in finance receivables Decrease in trade payables Decrease 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 assets Payments for purchases of available-for-sale securities Proceeds from sales of available-for-sale securities (Increase) Decrease in time deposits Other, net Net cash used in investing activities III. Cash Flows from Financing Activities: Net repayments of debt with original maturities of three months or less Proceeds from debt with original maturities of more than three months Repayments of debt with original maturities of more than three months Proceeds from issuance of long-term debt securities Repayment of long-term debt securities Dividends paid Payment for purchase of treasury stock Other, net Net cash provided by financing activities IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents V. Net Increase (Decrease) in Cash and Cash Equivalents VI. Cash and Cash Equivalents at Beginning of Year VII. Cash and Cash Equivalents at End of Period 11 20,811 47,702 62,918 -47 1,935 -24 -2,843 73,784 29 7,011 -2,324 -16,893 -4,714 -9,259 -12,800 -15,464 -10,071 -15,921 -35,627 -2,211 -17,068 4,895 28,340 -4,185 -6,865 34,429 1,399 530 -61,156 -8,340 -91 64 -1,276 -6,886 -76,286 -55,279 -8,429 -62 7,153 34 -4,828 -60,881 -19,644 128,762 -87,786 20,000 -15,226 -8 -694 25,404 740 -21,802 156,210 134,408 24,815 103,345 -78,327 20,000 -1,826 -23,925 -109 -671 43,302 10,225 27,075 117,051 144,126 (4) Notes on premise going concern Not applicable (5) Segment Information (a) Operating Segments Information Third Quarter ended December 31, 2012 and 2013 (Millions of yen) Third Quarter ended Third Quarter ended December 31, 2012 December 31, 2013 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 income (loss) Operating income (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 (%) 12 Change 1,207,241 1,207,241 1,115,362 91,879 1,413,041 1,413,041 1,288,178 124,863 7.6 8.8 70,201 3,200 73,401 73,846 -445 78,759 3,025 81,784 78,165 3,619 -0.6 4.4 109,657 109,657 112,025 -2,368 119,721 119,721 120,054 -333 -2.2 -0.3 -3,200 -3,200 % 205,800 205,800 172,816 32,984 17.0 17.0 15.5 35.9 8,558 -175 8,383 4,319 4,064 12.2 -5.5 11.4 5.8 - 10,064 10,064 8,029 2,035 9.2 9.2 7.2 - -3,025 -3,025 175 175 - -3,200 48,583 45,383 -48,583 -3,025 49,948 46,923 -49,948 175 1,365 1,540 -1,365 - 1,387,099 1,387,099 1,346,616 40,483 1,611,521 1,611,521 1,533,320 78,201 224,422 224,422 186,704 37,718 16.2 16.2 13.9 93.2 2.9 4.9 Three months ended December 31, 2012 and 2013 (Millions of yen) Three months ended December 31, 2012 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 income Operating income on sales in Industrial Products (%) Other: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating income (loss) Operating income (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 (%) 13 Three months ended December 31, 2013 409,604 409,604 377,318 32,286 489,824 489,824 442,768 47,056 7.9 9.6 22,764 1,148 23,912 23,699 213 27,165 994 28,159 26,738 1,421 0.9 5.0 37,264 37,264 38,889 -1,625 38,955 38,955 38,790 165 -4.4 0.4 -1,148 -1,148 Change % 80,220 80,220 65,450 14,770 19.6 19.6 17.3 45.7 4,401 -154 4,247 3,039 1,208 19.3 -13.4 17.8 12.8 567.1 1,691 1,691 -99 1,790 4.5 4.5 -0.3 - -994 -994 154 154 - -1,148 17,779 16,631 -17,779 -994 16,301 15,307 -16,301 154 -1,478 -1,324 1,478 - 469,632 469,632 456,537 13,095 555,944 555,944 523,603 32,341 86,312 86,312 67,066 19,246 18.4 18.4 14.7 147.0 2.8 5.8 (b) Geographic Segments Information Third Quarter ended December 31, 2012 and 2013 (Millions of yen) Third Quarter ended Third Quarter ended December 31, 2012 December 31, 2013 Japan: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating income Operating income on sales in Japan (%) The Americas: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating income Operating income on sales in the Americas (%) Europe, Middle East and Africa: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating income Operating income on sales in Europe, Middle East and Africa (%) Other: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating income Operating income on sales in Other (%) Corporate and Eliminations: Net sales: Intersegment Total Operating expenses Operating loss Consolidated: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating income Operating income on consolidated net sales (%) 14 Change 652,650 278,203 930,853 912,933 17,920 685,226 333,102 1,018,328 974,649 43,679 1.9 4.3 353,795 5,152 358,947 355,196 3,751 433,607 6,669 440,276 428,726 11,550 1.0 2.6 291,776 517 292,293 275,162 17,131 375,191 605 375,796 360,132 15,664 5.9 4.2 88,878 138,838 227,716 218,793 8,923 117,497 175,740 293,237 280,209 13,028 3.9 4.4 -422,710 -422,710 -415,468 -7,242 % 32,576 5.0 54,899 19.7 87,475 9.4 61,716 6.8 25,759 143.7 79,812 22.6 1,517 29.4 81,329 22.7 73,530 20.7 7,799 207.9 83,415 88 83,503 84,970 -1,467 28.6 17.0 28.6 30.9 -8.6 28,619 36,902 65,521 61,416 4,105 32.2 26.6 28.8 28.1 46.0 -516,116 -516,116 -510,396 -5,720 -93,406 -93,406 -94,928 1,522 - 1,387,099 1,387,099 1,346,616 40,483 1,611,521 1,611,521 1,533,320 78,201 224,422 224,422 186,704 37,718 16.2 16.2 13.9 93.2 2.9 4.9 Three months ended December 31, 2012 and 2013 (Millions of yen) Three months ended December 31, 2012 Japan: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating income Operating income on sales in Japan (%) The Americas: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating income Operating income on sales in the Americas (%) Europe, Middle East and Africa: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating income Operating income on sales in Europe, Middle East and Africa (%) Other: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating income Operating income on sales in Other (%) Corporate and Eliminations: Net sales: Intersegment Total Operating expenses Operating loss Consolidated: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating income Operating income on consolidated net sales (%) (6) Notes on significant changes in Equity Not applicable 15 Three months ended December 31, 2013 214,035 92,231 306,266 301,137 5,129 234,189 113,380 347,569 331,211 16,358 1.7 4.7 119,503 1,652 121,155 118,919 2,236 147,562 2,617 150,179 145,294 4,885 1.8 3.3 106,308 192 106,500 100,056 6,444 135,470 207 135,677 128,229 7,448 6.1 5.5 29,786 47,075 76,861 73,501 3,360 38,723 63,719 102,442 98,275 4,167 4.4 4.1 -141,150 -141,150 -137,076 -4,074 Change % 20,154 21,149 41,303 30,074 11,229 9.4 22.9 13.5 10.0 218.9 28,059 965 29,024 26,375 2,649 23.5 58.4 24.0 22.2 118.5 29,162 15 29,177 28,173 1,004 27.4 7.8 27.4 28.2 15.6 8,937 16,644 25,581 24,774 807 30.0 35.4 33.3 33.7 24.0 -179,923 -179,923 -179,406 -517 -38,773 -38,773 -42,330 3,557 - 469,632 469,632 456,537 13,095 555,944 555,944 523,603 32,341 86,312 86,312 67,066 19,246 18.4 18.4 14.7 147.0 2.8 5.8 -APPENDIX1. Consolidated Sales by Product Category (Millions of yen) Third Quarter ended December 31, 2012 and 2013 Third Quarter ended December 31, 2012 <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 Third Quarter ended December 31, 2013 951,753 68.6 354,442 597,311 104,774 7.6 24,500 80,274 150,714 10.9 129,970 20,744 1,207,241 87.1 508,912 698,329 340,199 279,286 78,844 1,075,257 66.7 343,658 731,599 132,955 8.3 24,389 108,566 204,829 12.7 165,380 39,449 1,413,041 87.7 533,427 879,614 418,014 358,666 102,934 70,201 5.1 34,743 35,458 10,312 9,534 15,612 78,759 4.9 34,061 44,698 11,602 12,261 20,835 109,657 7.8 97,247 12,410 3,316 5,520 3,574 1,387,099 100.0 640,902 46.2 746,197 53.8 353,827 25.5 294,340 21.2 98,030 7.1 119,721 7.4 104,818 14,903 4,042 5,991 4,870 1,611,521 100.0 672,306 41.7 939,215 58.3 433,658 26.9 376,918 23.4 128,639 8.0 December 31, 2012 ¥80.05 ¥102.26 December 31, 2013 ¥99.42 ¥132.31 Change % Change excluding exchange impact 123,504 13.0 -27,106 -2.8 -10,784 134,288 28,181 -3.0 22.5 26.9 -10,784 -16,322 6,206 -3.0 -2.7 5.9 -111 28,292 54,115 -0.5 35.2 35.9 -111 6,317 46,118 -0.5 7.9 30.6 35,410 18,705 205,800 27.2 90.2 17.0 35,410 10,708 25,218 27.2 51.6 2.1 24,515 181,285 77,815 79,380 24,090 4.8 26.0 22.9 28.4 30.6 24,515 703 -3,638 -2,191 6,532 4.8 0.1 -1.1 -0.8 8.3 8,558 12.2 1,501 2.1 -682 9,240 1,290 2,727 5,223 -2.0 26.1 12.5 28.6 33.5 -682 2,183 -964 422 2,725 -2.0 6.2 -9.3 4.4 17.5 10,064 9.2 7,499 6.8 7,571 2,493 726 471 1,296 224,422 7.8 20.1 21.9 8.5 36.3 16.2 7,571 -72 -37 -880 845 34,218 7.8 -0.6 -1.1 -15.9 23.6 2.5 31,404 4.9 31,404 4.9 193,018 25.9 2,814 0.4 79,831 22.6 -4,639 -1.3 82,578 28.1 -2,649 -0.9 30,609 31.2 10,102 10.3 Change ¥19.37 ¥30.05 *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 Personal computers, servers, network equipment, related services, support and software Network System Solutions Industrial Products Thermal media, optical equipment, semiconductor devices and electronic components Other Digital cameras A1 % (Millions of yen) Three months ended December 31, 2012 and 2013 <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 Three months ended December 31, 2012 December 31, 2013 325,473 69.3 118,445 207,028 35,339 7.5 8,065 27,274 48,792 10.4 40,181 8,611 409,604 87.2 166,691 242,913 114,748 101,855 26,310 370,551 66.7 117,525 253,026 47,680 8.6 8,603 39,077 71,593 12.8 57,933 13,660 489,824 88.1 184,061 305,763 141,986 129,707 34,070 22,764 4.8 10,740 12,024 3,428 3,175 5,421 27,165 4.9 11,156 16,009 3,911 4,067 8,031 37,264 8.0 32,709 4,555 1,332 2,147 1,076 469,632 100.0 210,140 44.7 259,492 55.3 119,508 25.4 107,177 22.8 32,807 7.1 38,955 7.0 33,285 5,670 1,692 2,568 1,410 555,944 100.0 228,502 41.1 327,442 58.9 147,589 26.5 136,342 24.5 43,511 7.9 December 31, 2012 ¥81.27 ¥105.43 December 31, 2013 ¥100.46 ¥136.70 Change % Change excluding exchange impact 45,078 13.8 -6,211 -1.9 -920 45,998 12,341 -0.8 22.2 34.9 -920 -5,291 4,529 -0.8 -2.6 12.8 538 11,803 22,801 6.7 43.3 46.7 538 3,991 20,083 6.7 14.6 41.2 17,752 5,049 80,220 44.2 58.6 19.6 17,752 2,331 18,401 44.2 27.1 4.5 17,370 62,850 27,238 27,852 7,760 10.4 25.9 23.7 27.3 29.5 17,370 1,031 105 -1,767 2,693 10.4 0.4 0.1 -1.7 10.2 4,401 19.3 2,004 8.8 416 3,985 483 892 2,610 3.9 33.1 14.1 28.1 48.1 416 1,588 -260 114 1,734 3.9 13.2 -7.6 3.6 32.0 1,691 4.5 670 1.8 576 1,115 360 421 334 86,312 1.8 24.5 27.0 19.6 31.0 18.4 576 94 49 -161 206 21,075 1.8 2.1 3.7 -7.5 19.1 4.5 18,362 8.7 18,362 8.7 67,950 26.2 2,713 1.0 28,081 23.5 -106 -0.1 29,165 27.2 -1,814 -1.7 10,704 32.6 4,633 14.1 Change ¥19.19 ¥31.27 *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 A2 % 2. Forecast of Consolidated Performance (Billions of yen) Third Quarter ended Net sales Gross profit Operating income Income before income taxes Net income attributable to Ricoh Company, Ltd. Fourth Quarter ending Year ending December 31, 2013 Change March 31, 2014 Change March 31, 2014 Change Results % Forecast % Forecast % 1,611.5 657.0 78.2 75.8 16.2 16.6 93.2 109.2 588.4 235.3 41.7 39.1 9.5 14.7 82.1 78.6 2,200.0 892.4 120.0 115.0 14.3 16.1 89.2 97.7 43.5 151.8 26.4 74.3 70.0 115.6 Net income attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) 60.09 - 36.46 - 96.55 - 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) 55.2 54.3 85.9 99.42 132.31 - 24.7 19.6 31.0 100.00 140.00 - 80.0 74.0 117.0 99.57 134.22 - 3. Forecast of Consolidated Sales by Product Category (Billions of yen) Fourth Quarter ending March 31, 2014 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 Forecast Year ending March 31, 2014 Change Forecast(*) % Change % 405.4 131.3 274.1 47.9 9.1 38.8 73.0 57.5 15.5 526.3 197.9 328.4 156.4 135.5 36.5 7.3 0.2 11.1 13.3 8.7 14.5 25.8 21.3 45.8 10.1 5.9 12.8 13.4 10.9 17.2 378.5 131.3 247.2 44.3 9.1 35.2 71.3 57.5 13.8 494.1 197.9 296.2 144.5 117.9 33.8 0.2 0.2 0.2 4.8 8.7 3.9 22.9 21.3 29.8 3.3 5.9 1.7 4.8 -3.5 8.3 1,480.7 474.9 1,005.7 180.8 33.4 147.3 277.8 222.8 54.9 1,939.4 731.3 1,208.1 574.4 494.1 139.5 11.4 -2.2 19.2 23.0 1.9 29.1 33.1 25.7 75.1 15.1 5.1 22.1 20.1 23.1 26.8 1,303.1 474.9 828.1 155.2 33.4 121.7 268.1 222.8 45.2 1,726.5 731.3 995.2 481.0 394.9 119.1 -2.0 -2.2 -1.9 5.6 1.9 6.7 28.5 25.7 44.2 2.4 5.1 0.6 0.6 -1.6 8.3 24.7 10.3 14.4 3.4 4.1 6.9 7.9 4.9 10.1 -12.3 11.4 25.0 23.3 10.3 13.0 3.1 3.6 6.3 1.8 4.9 -0.6 -20.0 -2.2 14.2 103.4 44.3 59.0 15.0 16.3 27.7 11.1 -0.4 21.8 5.7 23.8 31.3 95.0 44.3 50.6 12.4 13.5 24.6 2.0 -0.4 4.3 -12.3 2.6 16.6 37.4 33.5 3.9 1.1 1.7 1.1 588.4 241.7 346.7 160.9 141.3 44.5 2.9 2.0 11.4 14.2 9.7 11.1 9.5 5.3 12.6 12.7 10.9 18.0 37.0 33.5 3.5 1.0 1.5 1.0 554.4 241.7 312.7 148.6 123.0 41.1 1.8 2.0 -0.1 3.8 -3.2 1.0 3.2 5.3 1.5 4.1 -3.5 8.7 157.1 138.3 18.8 5.1 7.6 5.9 2,200.0 914.0 1,286.0 594.5 518.2 173.2 7.6 6.3 18.2 20.2 8.8 30.8 14.3 5.0 22.0 19.7 22.9 27.6 154.1 138.3 15.8 4.2 6.1 5.4 1,975.7 914.0 1,061.7 497.7 414.6 149.2 5.6 6.3 -0.5 0.0 -13.1 18.7 2.7 5.0 0.7 0.2 -1.7 9.9 * Excluding foreign exchange impact A3