January 31, 2012 QUARTERLY REPORT Nine months ended December 31, 2011 Results for the Period from April 1, 2011 to December 31, 2011 Three months ended December 31, 2011 Results for the Period from October 1, 2011 to December 31, 2011 Performance Outline (Consolidated) (1) Third Quarter ended December 31, 2010, 2011 and Year ending March 31, 2012 (Forecast) (Billions of yen) Third Quarter ended December 31, 2010 Results Third Quarter ended December 31, 2011 Results Change Year ending March 31, 2012 Forecast Change Domestic sales Overseas sales Net sales Gross profit Operating income (loss) Income (loss) before income taxes Net income (loss) attributable to Ricoh Company, Ltd. 649.4 789.6 1,439.0 599.4 53.9 41.3 20.3 644.8 751.6 1,396.5 569.0 -36.6 -47.9 -52.1 -0.7% -4.8% -3.0% -5.1% - 885.0 1,015.0 1,900.0 759.0 -18.0 -33.0 -46.0 1.0% -4.8% -2.2% -3.9% - Exchange rate (Yen/US$) Exchange rate (Yen/EURO) 86.90 113.53 79.00 110.71 -7.90 -2.82 78.01 109.29 -7.76 -3.99 28.03 -71.86 -99.89 -63.40 -90.48 27.30 -71.86 -99.16 -63.40 -89.93 74.3 -64.1 -92.6 147.8 -26.6 -88.5 101.4 156.6 -100.9 -24.3 194.1 8.8 - - 48.6 50.1 81.3 53.8 46.8 89.3 5.1 -3.3 7.9 70.0 63.0 115.0 3.0 -4.2 4.1 Net income (loss) attributable to Ricoh Company, Ltd shareholders per share-basic (yen) Net income (loss) attributable to Ricoh Company, Ltd shareholders per share-diluted (yen) Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Capital expenditures Depreciation for tangible fixed assets R&D expenditures March 31, 2011 Total assets Ricoh Company, Ltd. shareholders' equity Interest-bearing debt Ricoh Company, Ltd. shareholders' equity ratio (%) Ricoh Company, Ltd. shareholders' equity per share (yen) December 31, 2011 Change 2,262.3 929.8 630.4 2,193.2 804.9 752.1 -69.1 -124.8 121.7 41.1 36.7 -4.4 1,281.70 1,109.55 -172.15 (2) Three months ended December 31, 2010 and 2011 Three months ended December 31, 2010 Results Domestic sales Overseas sales Net sales Gross profit Operating income (loss) Income (loss) before income taxes Net income (loss) attributable to Ricoh Company, Ltd. Exchange rate (Yen/US$) Exchange rate (Yen/EURO) Net income (loss) attributable to Ricoh Company, Ltd shareholders per share-basic (yen) Net income (loss) attributable to Ricoh Company, Ltd shareholders per share-diluted (yen) Capital expenditures Depreciation for tangible fixed assets R&D expenditures Three months ended December 31, 2011 Results Change 210.3 257.8 468.1 196.5 15.9 13.2 7.8 210.3 247.2 457.6 182.7 -34.8 -40.1 -44.7 0.0% -4.1% -2.3% -7.0% - 82.66 112.30 77.39 104.29 -5.27 -8.01 10.79 -61.71 -72.50 10.54 -61.71 -72.25 9.1 16.7 27.3 17.1 15.9 29.8 8.0 -0.7 2.4 Ricoh Company, Ltd. * The Company bases the forecast estimates for the fiscal year ending March 31, 2012 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, 2011 (U.S. GAAP Financial Information) 1. Results for the Period from April 1, 2011 to December 31, 2011 (1) Operating Results Net sales (% change from the previous corresponding period) Operating income (loss) (% change from the previous corresponding period) Income (loss) before income taxes (% change from the previous corresponding period) Net income (loss) attributable to Ricoh Company, Ltd. (% change from the previous corresponding period) Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-diluted (yen) Third Quarter ended December 31, 2010 1,439,051 -2.4 53,989 43.1 41,344 34.1 20,340 41.1 (Millions of yen) Third Quarter ended December 31, 2011 1,396,541 -3.0 -36,617 -47,938 -52,135 - 28.03 -71.86 27.30 -71.86 (2) Financial Position March 31, 2011 2,262,396 982,764 929,877 41.1 1,281.70 (Millions of yen) December 31, 2011 2,193,255 860,276 804,981 36.7 1,109.55 Total assets Total equity Ricoh Company, Ltd. shareholders' equity Ricoh Company, Ltd. shareholders' equity ratio (%) Ricoh Company, Ltd. shareholders' equity per share (yen) Notes: i. Comprehensive income: ¥ -97,743 million ( - %) (¥ -38,204 million ( - %) in income in previous fiscal year) 2. Dividend information Year ended Year ending March 31, 2011 March 31, 2012 (Results) (Forecast) Cash dividends, applicable to the year (yen) Interim (yen) Year-end (yen) 33.00 16.50 16.50 25.00 16.50 8.50 Notes: Revision of expected dividends during this period: No 3. Forecast of Operating Results from April 1, 2011 to March 31, 2012 Net sales Operating loss Loss before income taxes Net loss attributable to Ricoh Company, Ltd. Net loss attributable to Ricoh Company, Ltd. shareholders per share (yen) 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: No (4) Number of common stock outstanding (including treasury stock): As of December 31, 2011 744,912,078 shares As of March 31, 2011 744,912,078 shares (5) Number of treasury stock: As of December 31, 2011 19,412,124 shares As of March 31, 2011 19,409,410 shares (6) Average number of common stock: As of December 31, 2011 725,500,788 shares As of March 31, 2011 725,570,022 shares 2 (Millions of yen) Year ending March 31, 2012 1,900,000 -18,000 -33,000 -46,000 -63.40 Consolidated Performance 1. Operating results *Overview Consolidated net sales of Ricoh Group for the third quarter of fiscal year 2011 (the nine months period from April 1, 2011 to December 31, 2011) decreased by 3.0% as compared to the previous corresponding period, to ¥ 1,396.5 billion. During this period, the average yen exchange rates were ¥79.00 against the U.S. dollar (up ¥ 7.90) and ¥110.71 against the Euro (up ¥2.82). Net sales would have increased by 0.3% excluding impact of such foreign currency exchange fluctuation. Japanese economy had shown recovery from the impact of the Great East Japan Earthquake. However, unpredictable situation remained because of the sharp appreciation of the Yen against Euro since last year end as well as decline of the stock market. Under the severe situation, while domestic sales in the Imaging & Solutions and the Other increased, domestic sales in the Industrial Products decreased from the previous corresponding period. Consequently, overall sales in Japan decreased by 0.7% as compared to the previous corresponding period. As for the overseas economy, in the Americas, signs of improvement had been shown and in China, high growth is ongoing. However, it remained uncertain due to the European debt crisis. Ricoh continued to face the severe business environment in the Americas and Europe due to the appreciation of the Yen. As for overseas sales by region, as compared to the previous corresponding period, sales in the Americas decreased by 11.0% due to foreign currency exchange fluctuation (1.9%, excluding foreign currency exchange fluctuation), sales in Europe, due to the Yen against Euro appreciated, decreased by 0.3% (increased by 2.5%, excluding foreign currency exchange fluctuation), and sales in Other region, which includes China, South East Asia and Oceania, increased by 6.0% (9.4%, excluding foreign currency exchange fluctuation). As a result, sales in the overseas market decreased by 4.8% as compared to the previous corresponding period. Excluding effects of foreign currency fluctuations, net sales in overseas would have increased by 1.2% as compared to the previous corresponding period. Gross profit decreased by 5.1% as compared to the previous corresponding period, to ¥569.0 billion due primarily to decrease in sales and the appreciation of the Yen, despite ongoing cost reduction. Selling, general and administrative expenses increased by 11.0% as compared to the previous corresponding period, to ¥605.6 billion due primarily to impairment loss of 36.9 billion on goodwill and long-lived assets for the period of three months ended December 31, 2011 as well as restructuring cost of ¥24.2 billion. As a result, operating income sharply decreased as compared to the previous corresponding period, to ¥36.6 billion loss (operating income ¥53.9 billion for the previous corresponding period). Other (income) expenses includes impairment loss of 4.9 billion on securities for the three months ended December 31, 2011 due to the decline of the stock market, however, improved overall due primarily to decrease of foreign exchange loss as compared to the previous corresponding period. Consequently, income before income taxes decreased as compared to the previous corresponding period, to ¥ 47.9 billion loss (income before income taxes ¥41.3 billion for the previous corresponding period). In addition, taking recalculation of deferred tax assets and liabilities in line with reduction of income tax rate by Japanese tax system revision, net income (loss) attributable to Ricoh Company, Ltd. amounted to ¥52.1 billion loss (net income ¥20.3 billion for the previous corresponding period). As for comprehensive income, comprehensive loss increased due primarily to decrease of cumulative translation adjustments. 3 *Conditions by Product Line Conditions by Product Line for nine months ended December 31, 2011 are as follows; Imaging & Solutions (Sales down 3.1% to ¥1,225.3 billion) Imaging Solutions (Sales down 4.1% to ¥1,082.0 billion) Sales in this category decreased by 4.1% as compared to the previous corresponding period, to ¥1,082.0 billion. The sales would have decreased by 0.1% excluding the effects of foreign currency fluctuations. As for sales of PPCs and MFPs, while the sales of color products remained steady, the sales of monochrome products decreased as compared to the previous corresponding period. Network System Solutions (Sales up 5.5% to ¥143.3 billion) Sales in this category increased by 5.5% as compared to the previous corresponding period, to ¥143.3 billion due primarily to increase in domestic sales of enterprise system software and expanding IT service around the world. As a result, sales in the Imaging & Solutions segment decreased by 3.1% as compared to the previous corresponding period, to ¥1,225.3 billion. Operating income decreased by 80.9% as compared to the previous corresponding period, to ¥20.6 billion due primarily to impairment loss on goodwill and long-lived assets as well as restructuring cost and the appreciation of Japanese Yen, despite ongoing cost reduction. Industrial Products (Sales down 9.8% to ¥74.0 billion) Sales in the Industrial Products segment decreased by 9.8% as compared to the previous corresponding period, to ¥74.0 billion. Sales of semiconductor devices, optical equipment and electronic components decreased as compared to the previous corresponding period. As a result, operating loss in the Industrial Products segment amounted to ¥2.6 billion (operating income ¥0.7 billion for the previous corresponding period). Other (Sales up 4.9% to ¥97.0 billion) Net sales in the Other segment increased by 4.9% as compared to the previous corresponding period, to ¥97.0 billion due primarily to acquisition of PENTAX Imaging Corporation. As a result, operating loss in the Other segment amounted to ¥3.5 billion (operating loss ¥1.5 billion for the previous corresponding period). 2. Financial Position *Assets, Liabilities and Equity For Assets, from the end of the previous fiscal year, cash and time deposits and trade receivables decreased and inventories increased due partly to initial stock for market demand at the fiscal year end. In addition, the yen equivalent of foreign-currency-denominated assets decreased due to the appreciation of the Yen developed from the previous fiscal year as well as goodwill and long-lived assets decreased due to impairment. As a result, total assets decreased by ¥69.1 billion, to ¥2,193.2 billion. For Liabilities, the interest-bearing debt increased due primarily to payment for costs in global restructuring program. Consequently, total liabilities increased by ¥53.3 billion, to ¥1,332.9 billion. For Total Equity, the change in retained earnings resulted from payment for dividends and net loss attributable to Ricoh Company, Ltd. Accumulated other comprehensive loss increased due primarily to the fluctuation of cumulative translation adjustments reflecting exchange fluctuation from the end of the previous period. As a result, Total Equity decreased by ¥122.4 billion from the end of the previous fiscal year, to ¥860.2 billion. *Cash Flows (Nine months from April 1, 2011 to December 31, 2011) Net cash used in operating activities in this period decreased by ¥100.9 billion as compared to the previous corresponding period, to ¥ 26.6 billion outflows due primarily to net loss attributable to Ricoh Company, Ltd. as well as increase of inventory. Net cash used in investing activities in this period increased by ¥24.3 billion as compared to the previous corresponding period, to ¥88.5 billion due primarily to acquisition of PENTAX Imaging Corporation. As a result, free cash outflows generated by operating and investing activities amounted to ¥115.1 billion while free cash inflows amounted to ¥10.1 billion in the previous corresponding period. Net cash provided by financing activities in this period amounted to ¥101.4 billion due primarily to increase of the interest-bearing debt. As a result, cash and cash equivalents as of December 31, 2011 decreased by ¥22.4 billion as compared to the end of the previous fiscal year, to ¥156.6 billion. 4 3. Forecast for the entire fiscal year As for the forecast of business results for the fiscal year ending March 31, 2012, Ricoh revises its forecast of sales, gross profit, operating income, income before income taxes and net income attributable to Ricoh Company, Ltd. downward, reflecting the recent business results and environment. Ricoh assumes exchange rates of ¥75.00 against the U.S. dollar and of ¥105.00 against the Euro in the fourth quarter, which were remained from the forecast that announced in October 2011. Taking forecasted net loss attributable to Ricoh Company, Ltd. for the fiscal year ending March 31, 2012, Ricoh truly regrets to announce that it has decided to change forecasted dividend at the year end from ¥16.50, which were announced in October 2011, downward to ¥8.50. Consequently, total dividends for the fiscal year ending March, 2012 are revised to ¥25.00 includes ¥16.50 paid in December 2011. Our performance forecast for fiscal year 2012 is as follows: Exchange Rate Assumptions for the full year ending March 31, 2012 US$ 1 = ¥78.01 (¥85.77 in previous fiscal year) EURO 1 = ¥109.29 (¥113.28 in previous fiscal year) (Billions of yen) Domestic sales Overseas sales Net sales Gross profit Operating income (loss) Income (loss) before income taxes Net income (loss) attributable to Ricoh Company, Ltd. Year ended March 31, 2011 (Results) 875.8 1,066.1 1,942.0 790.0 60.1 45.4 Year ending March 31, 2012 (Forecast) 885.0 1,015.0 1,900.0 759.0 -18.0 -33.0 19.6 -46.0 Change 1.0% -4.8% -2.2% -3.9% - * Ricoh bases the forecast estimates for the year ending March 31, 2012 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: Not applicable 5 5. Consolidated Financial Statements (1) Consolidated Balance Sheets Assets December 31, 2011 (Millions of yen) Change 181,179 657,817 171,033 63,990 1,074,019 159,249 625,331 201,929 54,903 1,041,412 -21,930 -32,486 30,896 -9,087 -32,607 264,740 445,782 477,855 1,188,377 2,262,396 264,942 453,733 433,168 1,151,843 2,193,255 202 7,951 -44,687 -36,534 -69,141 179,169 2,010 156,699 2,550 March 31, 2011 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 Liabilities and Equity December 31, 2011 (Millions of yen) Change 250,483 151,023 213,194 614,700 234,007 215,082 172,149 621,238 -16,476 64,059 -41,045 6,538 479,422 140,975 44,535 664,932 1,279,632 537,065 137,646 37,030 711,741 1,332,979 57,643 -3,329 -7,505 46,809 53,347 135,364 186,083 815,970 -170,702 -36,838 929,877 52,887 982,764 2,262,396 135,364 186,083 739,874 -219,519 -36,821 804,981 55,295 860,276 2,193,255 -76,096 -48,817 17 -124,896 2,408 -122,488 -69,141 2,466 -47,514 -1,168 -124,486 1,210 -48,322 -1,481 -170,926 -1,256 -808 -313 -46,440 ¥83.15 ¥117.57 ¥77.74 ¥100.71 March 31, 2011 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; Net unrealized holding gains on available-for-sale securities Pension liability adjustments Net unrealized losses on derivative instruments Cumulative translation adjustments Reference: Exchange rate US$ 1 EURO 1 6 (2) Consolidated Statements of Income Third Quarter ended December 31, 2010 and 2011 (Millions of yen) 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 (loss) Percentage of net sales (%) Other (income) expenses Interest and dividend income Percentage of net sales (%) Interest expense Percentage of net sales (%) Other, net Percentage of net sales (%) Income (Loss) before income taxes, equity income and minority interests Percentage of net sales (%) Provision for income taxes Percentage of net sales (%) Equity in earnings of affiliates Percentage of net sales (%) Consolidated net income (loss) Percentage of net sales (%) Net income (loss) attributable to noncontrolling interests Percentage of net sales (%) Net income (loss) attributable to Ricoh Company, Ltd. Percentage of net sales (%) Reference : Exchange rate US$ 1 EURO 1 Third Quarter ended December 31, 2010 1,439,051 839,572 58.3 599,479 41.7 545,490 37.9 53,989 3.8 Third Quarter ended December 31, 2011 1,396,541 827,519 59.3 569,022 40.7 605,639 43.3 -36,617 -2.6 2,154 0.1 5,816 0.4 8,983 0.6 Change -42,510 -12,053 % -3.0 -1.4 -30,457 -5.1 60,149 11.0 -90,606 - 1,940 0.1 4,883 0.3 8,378 0.6 -214 -9.9 -933 -16.0 -605 -6.7 41,344 2.9 18,150 1.3 -15 0.0 23,179 1.6 -47,938 -3.4 844 0.1 17 0.0 -48,765 -3.5 -89,282 - -17,306 -95.3 32 - -71,944 - 2,839 0.2 20,340 1.4 3,370 0.2 -52,135 -3.7 531 18.7 -72,475 - ¥86.90 ¥113.53 ¥79.00 ¥110.71 Three months ended December 31, 2010 468,195 271,634 58.0 196,561 42.0 180,584 38.6 15,977 3.4 Three months ended December 31, 2011 457,656 274,896 60.1 182,760 39.9 217,601 47.5 -34,841 -7.6 779 0.2 1,905 0.4 1,572 0.4 438 0.1 1,465 0.3 4,316 1.0 13,279 2.8 4,556 1.0 -8 0.0 8,715 1.9 Three months ended December 31, 2010 and 2011 (Millions of yen) 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 (loss) Percentage of net sales (%) Other (income) expenses Interest and dividend income Percentage of net sales (%) Interest expense Percentage of net sales (%) Other, net Percentage of net sales (%) Income (Loss) before income taxes, equity income and minority interests Percentage of net sales (%) Provision for income taxes Percentage of net sales (%) Equity in earnings of affiliates Percentage of net sales (%) Consolidated net income (loss) Percentage of net sales (%) Net income (loss) attributable to noncontrolling interests Percentage of net sales (%) Net income (loss) attributable to Ricoh Company, Ltd. Percentage of net sales (%) Reference : Exchange rate US$ 1 EURO 1 Change -10,539 3,262 % -2.3 1.2 -13,801 -7.0 37,017 20.5 -50,818 - -341 -43.8 -440 -23.1 2,744 174.6 -40,184 -8.8 3,386 0.7 18 0.0 -43,552 -9.5 -53,463 - -1,170 -25.7 26 - -52,267 - 887 0.2 7,828 1.7 1,220 0.3 -44,772 -9.8 333 37.5 -52,600 - ¥82.66 ¥112.30 ¥77.39 ¥104.29 7 Consolidated Sales by Product Category Third Quarter ended December 31, 2010 and 2011 (Millions of yen) Third Quarter ended December 31, 2010 <Imaging & Solutions> Imaging Solutions Percentage of net sales (%) Network System Solutions Percentage of net sales (%) Imaging & Solutions Total Percentage of net sales (%) Grand Total Percentage of net sales (%) -46,546 -4.1 7,523 5.5 -39,023 -3.1 82,136 5.7 74,087 5.3 -8,049 -9.8 92,508 6.4 1,439,051 100.0 97,070 7.0 1,396,541 100.0 4,562 4.9 -42,510 -3.0 ¥86.90 ¥113.53 ¥79.00 ¥110.71 Reference : Exchange rate US$ 1 EURO 1 Three months ended December 31, 2010 and 2011 (Millions of yen) Three months ended December 31, 2010 <Imaging & Solutions> Imaging Solutions Percentage of net sales (%) Network System Solutions Percentage of net sales (%) Imaging & Solutions Total Percentage of net sales (%) Grand Total Percentage of net sales (%) Change % 350,966 76.7 45,313 9.9 396,279 86.6 -20,105 -5.4 2,960 7.0 -17,145 -4.1 26,393 5.6 23,637 5.2 -2,756 -10.4 28,378 6.1 468,195 100.0 37,740 8.2 457,656 100.0 9,362 33.0 -10,539 -2.3 ¥82.66 ¥112.30 ¥77.39 ¥104.29 Percentage of net sales (%) Percentage of net sales (%) Three months ended December 31, 2011 371,071 79.3 42,353 9.0 413,424 88.3 <Industrial Products> Industrial Products <Other> Other % 1,082,023 77.5 143,361 10.2 1,225,384 87.7 Percentage of net sales (%) Percentage of net sales (%) Change 1,128,569 78.4 135,838 9.5 1,264,407 87.9 <Industrial Products> Industrial Products <Other> Other Third Quarter ended December 31, 2011 Reference : Exchange rate US$ 1 EURO 1 *Each category includes the following product line: Imaging Solutions Digital PPCs, color PPCs, digital duplicators, facsimile machines, analog PPCs, diazo copiers, scanners, MFPs(multifunctional printers), laser printers and software Network System Solutions Personal computers, servers, network systems and network related software Industrial Products Thermal media, optical equipment, semiconductor devices, electronic components and measuring equipment Other Digital cameras *Product lines included in Product Category was changed in the first quarter of fiscal year 2011. Service&Support, such as MDS(Managed Document Services) was changed from Network System Solutions to Imaging Solutions. The reclassification was made to the prior year's figures to conform with the current year's presentation. 8 Consolidated Sales by Geographic Area Third Quarter ended December 31, 2010 and 2011 (Millions of yen) Third Quarter ended December 31, 2010 <Domestic> Percentage of net sales (%) <Overseas> Percentage of net sales (%) The Americas Percentage of net sales (%) Europe Percentage of net sales (%) Other Percentage of net sales (%) Grand Total Percentage of net sales (%) Third Quarter ended December 31, 2011 649,422 45.1 789,629 54.9 389,424 27.1 303,531 21.1 96,674 6.7 1,439,051 100.0 644,880 46.2 751,661 53.8 346,588 24.8 302,631 21.7 102,442 7.3 1,396,541 100.0 ¥86.90 ¥113.53 ¥79.00 ¥110.71 Reference : Exchange rate US$ 1 EURO 1 Change % -4,542 -0.7 -37,968 -4.8 -42,836 -11.0 -900 -0.3 5,768 6.0 -42,510 -3.0 Three months ended December 31, 2010 and 2011 (Millions of yen) Three months ended December 31, 2010 <Domestic> Percentage of net sales (%) <Overseas> Percentage of net sales (%) The Americas Percentage of net sales (%) Europe Percentage of net sales (%) Other Percentage of net sales (%) Grand Total Percentage of net sales (%) Reference : Exchange rate US$ 1 EURO 1 9 Three months ended December 31, 2011 210,357 44.9 257,838 55.1 124,567 26.6 102,480 21.9 30,791 6.6 468,195 100.0 210,379 46.0 247,277 54.0 112,348 24.5 100,691 22.0 34,238 7.5 457,656 100.0 ¥82.66 ¥112.30 ¥77.39 ¥104.29 Change % 22 0.0 -10,561 -4.1 -12,219 -9.8 -1,789 -1.7 3,447 11.2 -10,539 -2.3 (3) Consolidated Statements of Cash Flows (Millions of yen) Third Quarter ended Third Quarter ended December 31, 2010 December 31, 2011 I. Cash Flows from Operating Activities: Consolidated net income (loss) Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activitiesDepreciation and amortization Equity in earnings of affiliates, net of dividends received Deferred income taxes Loss on disposals and sales of tangible fixed assets Loss on impairment of long-lived assets Loss on impairment of securities Loss on impairment of goodwill Pension and severance costs, less payments Changes in assets and liabilitiesDecrease in trade receivables Increase in inventories (Increase) Decrease in finance receivables Decrease in trade payables Decrease in accrued income taxes and accrued expenses and other Other, net Net cash used in (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 fixed asset including interest capitalized Payments for purchases of available-for-sale securities Proceeds from sales of available-for-sale securities Increase in time deposits Purchase of business, net of cash acquired Other, net Net cash used in investing activities III. Cash Flows from Financing Activities: Proceeds from long-term indebtedness Repayment of long-term indebtedness Increase (Decrease) in short-term borrowings, net 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 (used in) financing activities IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents V. Net Decrease in Cash and Cash Equivalents VI. Cash and Cash Equivalents at Beginning of Year VII. Cash and Cash Equivalents at End of Period 10 23,179 -48,765 69,518 15 2,934 813 205 889 65,968 -17 -15,217 506 9,898 5,024 27,464 -5,478 9,820 -29,139 11,903 -20,183 16,723 -33,766 -13,751 -21,847 -6,111 10,513 74,356 -27,421 14,062 -26,617 732 829 -48,674 -53,871 -12,153 -230 17 -192 -477 -3,187 -64,164 -10,421 -127 32 -631 -15,089 -9,278 -88,556 43,691 -75,039 -28,110 79,741 -88,307 -23,943 -138 -551 -92,656 -11,885 -94,349 242,165 147,816 81,396 -59,102 103,949 -226 -23,942 -20 -585 101,470 -8,767 -22,470 179,169 156,699 (4) Notes on premise going concern Not applicable (5) Segment Information (a) Operating Segments Information Third Quarter ended December 31, 2010 and 2011 (Millions of yen) Third Quarter ended Third Quarter ended December 31, 2010 December 31, 2011 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 (loss) Operating income (loss) on consolidated net sales (%) 11 Change 1,264,407 1,264,407 1,156,303 108,104 1,225,384 1,225,384 1,204,760 20,624 8.5 1.7 82,136 4,147 86,283 85,508 775 74,087 3,688 77,775 80,380 -2,605 0.9 -3.3 92,508 92,508 94,041 -1,533 97,070 97,070 100,667 -3,597 -1.7 -3.7 -4,147 -4,147 % -39,023 -39,023 48,457 -87,480 -3.1 -3.1 4.2 -80.9 -8,049 -459 -8,508 -5,128 -3,380 -9.8 -11.1 -9.9 -6.0 - 4,562 4,562 6,626 -2,064 4.9 4.9 7.0 - -3,688 -3,688 459 459 - -4,154 53,364 49,210 -53,357 -3,688 51,039 47,351 -51,039 466 -2,325 -1,859 2,318 - 1,439,051 1,439,051 1,385,062 53,989 1,396,541 1,396,541 1,433,158 -36,617 -42,510 -42,510 48,096 -90,606 -3.0 -3.0 3.5 - 3.8 -2.6 Three months ended December 31, 2010 and 2011 (Millions of yen) Three months ended December 31, 2010 Imaging & Solutions: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating income (loss) Operating income (loss) on sales in Imaging & Solutions (%) Industrial Products: Net sales: Unaffiliated customers Intersegment Total Operating expenses Operating loss Operating 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 (loss) Operating income (loss) on consolidated net sales (%) 12 Three months ended December 31, 2011 413,424 413,424 378,321 35,103 396,279 396,279 413,335 -17,056 8.5 -4.3 26,393 1,556 27,949 28,220 -271 23,637 1,424 25,061 25,500 -439 -1.0 -1.8 28,378 28,378 29,447 -1,069 37,740 37,740 38,493 -753 -3.8 -2.0 -1,556 -1,556 Change % -17,145 -17,145 35,014 -52,159 -4.1 -4.1 9.3 - -2,756 -132 -2,888 -2,720 -168 -10.4 -8.5 -10.3 -9.6 - 9,362 9,362 9,046 316 33.0 33.0 30.7 - -1,424 -1,424 132 132 - -1,556 17,786 16,230 -17,786 -1,424 16,593 15,169 -16,593 132 -1,193 -1,061 1,193 - 468,195 468,195 452,218 15,977 457,656 457,656 492,497 -34,841 -10,539 -10,539 40,279 -50,818 -2.3 -2.3 8.9 - 3.4 -7.6 (b) Geographic Segments Information Third Quarter ended December 31, 2010 and 2011 (Millions of yen) Third Quarter ended Third Quarter ended December 31, 2010 December 31, 2011 Japan: Net sales: External customers Intersegment Total Operating expenses Operating income (loss) Operating income (loss) on sales in Japan (%) The Americas: Net sales: External customers Intersegment Total Operating expenses Operating loss Operating loss on sales in the Americas (%) Europe: Net sales: External customers Intersegment Total Operating expenses Operating income Operating income on sales in Europe (%) Other: Net sales: External customers Intersegment Total Operating expenses Operating income Operating income on sales in Other (%) Corporate and Eliminations: Net sales: Intersegment Total Operating expenses Operating income (loss) Consolidated: Net sales: External customers Intersegment Total Operating expenses Operating income (loss) Operating income (loss) on consolidated net sales (%) 13 Change 660,643 311,561 972,204 943,523 28,681 652,935 286,780 939,715 970,028 -30,313 3.0 -3.2 389,203 2,462 391,665 395,343 -3,678 348,962 2,643 351,605 378,564 -26,959 -0.9 -7.7 304,670 1,775 306,445 286,754 19,691 304,606 1,323 305,929 292,745 13,184 6.4 4.3 84,535 122,876 207,411 197,198 10,213 90,038 117,006 207,044 201,782 5,262 4.9 2.5 -438,674 -438,674 -437,756 -918 % -7,708 -24,781 -32,489 26,505 -58,994 -1.2 -8.0 -3.3 2.8 - -40,241 181 -40,060 -16,779 -23,281 -10.3 7.4 -10.2 -4.2 - -64 -452 -516 5,991 -6,507 -0.0 -25.5 -0.2 2.1 -33.0 5,503 -5,870 -367 4,584 -4,951 6.5 -4.8 -0.2 2.3 -48.5 -407,752 -407,752 -409,961 2,209 30,922 30,922 27,795 3,127 - 1,439,051 1,439,051 1,385,062 53,989 1,396,541 1,396,541 1,433,158 -36,617 -42,510 -42,510 48,096 -90,606 -3.0 -3.0 3.5 - 3.8 -2.6 Three months ended December 31, 2010 and 2011 (Millions of yen) Three months ended December 31, 2010 Japan: Net sales: External customers Intersegment Total Operating expenses Operating income (loss) Operating income (loss) on sales in Japan (%) The Americas: Net sales: External customers Intersegment Total Operating expenses Operating loss Operating loss on sales in the Americas (%) Europe: Net sales: External customers Intersegment Total Operating expenses Operating income Operating income on sales in Europe (%) Other: Net sales: External customers Intersegment Total Operating expenses Operating income Operating income on sales in Other (%) Corporate and Eliminations: Net sales: Intersegment Total Operating expenses Operating income (loss) Consolidated: Net sales: External customers Intersegment Total Operating expenses Operating income (loss) Operating income (loss) on consolidated net sales (%) (6) Notes on significant changes in Equity Not applicable 14 Three months ended December 31, 2011 213,026 99,521 312,547 308,920 3,627 210,957 97,293 308,250 322,932 -14,682 1.2 -4.8 124,502 857 125,359 126,957 -1,598 114,936 800 115,736 136,770 -21,034 -1.3 -18.2 102,930 641 103,571 96,410 7,161 101,945 213 102,158 101,405 753 6.9 0.7 27,737 37,541 65,278 63,317 1,961 29,818 40,440 70,258 69,786 472 3.0 0.7 -138,560 -138,560 -143,386 4,826 Change % -2,069 -2,228 -4,297 14,012 -18,309 -1.0 -2.2 -1.4 4.5 - -9,566 -57 -9,623 9,813 -19,436 -7.7 -6.7 -7.7 7.7 - -985 -428 -1,413 4,995 -6,408 -1.0 -66.8 -1.4 5.2 -89.5 2,081 2,899 4,980 6,469 -1,489 7.5 7.7 7.6 10.2 -75.9 -138,746 -138,746 -138,396 -350 -186 -186 4,990 -5,176 - 468,195 468,195 452,218 15,977 457,656 457,656 492,497 -34,841 -10,539 -10,539 40,279 -50,818 -2.3 -2.3 8.9 - 3.4 -7.6 -APPENDIX1. Consolidated Sales by Product Category (Millions of yen) Third Quarter ended December 31, 2010 and 2011 Third Quarter ended December 31, 2010 <Imaging & Solutions> Imaging Solutions 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 Other <Industrial Products> Industrial Products Percentage of net sales (%) Domestic Overseas The Americas Europe Other <Other> Other Percentage of net sales (%) Domestic Overseas The Americas Europe Other Grand Total Percentage of net sales (%) Domestic Percentage of net sales (%) Overseas Percentage of net sales (%) The Americas Percentage of net sales (%) Europe Percentage of net sales (%) Other Percentage of net sales (%) Reference: Exchange rate US$ 1 EURO 1 Third Quarter ended December 31, 2011 1,128,569 78.4 383,447 745,122 135,838 9.5 125,429 10,409 1,264,407 87.9 508,876 755,531 380,310 292,709 82,512 1,082,023 77.5 382,885 699,138 143,361 10.2 130,873 12,488 1,225,384 87.7 513,758 711,626 335,929 289,229 86,468 82,136 5.7 50,926 31,210 8,807 10,050 12,353 92,508 6.4 89,620 2,888 307 772 1,809 1,439,051 100.0 649,422 45.1 789,629 54.9 389,424 27.1 303,531 21.1 96,674 6.7 ¥86.90 ¥113.53 Change % Change excluding exchange impact % -46,546 -4.1 -1,586 -0.1 -562 -45,984 7,523 -0.1 -6.2 5.5 -562 -1,024 8,069 -0.1 -0.1 5.9 5,444 2,079 -39,023 4.3 20.0 -3.1 5,444 2,625 6,483 4.3 25.2 0.5 4,882 -43,905 -44,381 -3,480 3,956 1.0 -5.8 -11.7 -1.2 4.8 4,882 1,601 -9,912 4,591 6,922 1.0 0.2 -2.6 1.6 8.4 74,087 5.3 41,045 33,042 9,168 9,533 14,341 -8,049 -9.8 -6,697 -8.2 -9,881 1,832 361 -517 1,988 -19.4 5.9 4.1 -5.1 16.1 -9,881 3,184 1,267 -312 2,229 -19.4 10.2 14.4 -3.1 18.0 97,070 7.0 90,077 6,993 1,491 3,869 1,633 1,396,541 100.0 644,880 46.2 751,661 53.8 346,588 24.8 302,631 21.7 102,442 7.3 4,562 4.9 4,929 5.3 457 4,105 1,184 3,097 -176 -42,510 0.5 142.1 385.7 401.2 -9.7 -3.0 457 4,472 1,321 3,195 -44 4,715 0.5 154.8 430.3 413.9 -2.4 0.3 -4,542 -0.7 -4,542 -0.7 -37,968 -4.8 9,257 1.2 -42,836 -11.0 -7,324 -1.9 -900 -0.3 7,474 2.5 5,768 6.0 9,107 9.4 ¥79.00 ¥110.71 ¥-7.90 ¥-2.82 *Each category includes the following product line: Imaging Solutions Digital PPCs, color PPCs, digital duplicators, facsimile machines, analog PPCs, diazo copiers, scanners, MFPs(multifunctional printers), laser printers and software Network System Solutions Personal computers, servers, network systems and network related software Industrial Products Thermal media, optical equipment, semiconductor devices, electronic components and measuring equipment Other Digital cameras *Product lines included in Product Category was changed in the first quarter of fiscal year 2011. Service&Support, such as MDS(Managed Document Services) was changed from Network System Solutions to Imaging Solutions. The reclassification was made to the prior year's figures to conform with the current year's presentation. A1 (Millions of yen) Three months ended December 31, 2010 and 2011 <Imaging & Solutions> Imaging Solutions 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 Other <Industrial Products> Industrial Products Percentage of net sales (%) Domestic Overseas The Americas Europe Other <Other> Other Percentage of net sales (%) Domestic Overseas The Americas Europe Other Grand Total Percentage of net sales (%) Domestic Percentage of net sales (%) Overseas Percentage of net sales (%) The Americas Percentage of net sales (%) Europe Percentage of net sales (%) Other Percentage of net sales (%) Reference: Exchange rate US$ 1 EURO 1 Three months ended Three months ended December 31, 2010 December 31, 2011 371,071 79.3 127,579 243,492 42,353 9.0 38,804 3,549 413,424 88.3 166,383 247,041 121,650 98,828 26,563 350,966 76.7 124,197 226,769 45,313 9.9 40,962 4,351 396,279 86.6 165,159 231,120 107,992 94,668 28,460 26,393 5.6 16,307 10,086 2,845 3,380 3,861 23,637 5.2 12,872 10,765 3,088 2,816 4,861 28,378 6.1 27,667 711 72 272 367 468,195 100.0 210,357 44.9 257,838 55.1 124,567 26.6 102,480 21.9 30,791 6.6 37,740 8.2 32,348 5,392 1,268 3,207 917 457,656 100.0 210,379 46.0 247,277 54.0 112,348 24.5 100,691 22.0 34,238 7.5 ¥82.66 ¥112.30 ¥77.39 ¥104.29 Change % Change excluding exchange impact % -20,105 -5.4 -4,268 -1.2 -3,382 -16,723 2,960 -2.7 -6.9 7.0 -3,382 -886 3,308 -2.7 -0.4 7.8 2,158 802 -17,145 5.6 22.6 -4.1 2,158 1,150 -960 5.6 32.4 -0.2 -1,224 -15,921 -13,658 -4,160 1,897 -0.7 -6.4 -11.2 -4.2 7.1 -1,224 264 -5,974 2,707 3,531 -0.7 0.1 -4.9 2.7 13.3 -2,756 -10.4 -2,287 -8.7 -3,435 679 243 -564 1,000 -21.1 6.7 8.5 -16.7 25.9 -3,435 1,148 456 -369 1,061 -21.1 11.4 16.0 -10.9 27.5 9,362 33.0 9,621 33.9 4,681 4,681 1,196 2,935 550 -10,539 16.9 658.4 149.9 -2.3 4,681 4,940 1,307 3,032 601 6,374 16.9 694.8 163.8 1.4 22 0.0 22 0.0 -10,561 -4.1 6,352 2.5 -12,219 -9.8 -4,211 -3.4 -1,789 -1.7 5,370 5.2 3,447 11.2 5,193 16.9 ¥-5.27 ¥-8.01 *Each category includes the following product line: Imaging Solutions Digital PPCs, color PPCs, digital duplicators, facsimile machines, analog PPCs, diazo copiers, scanners, MFPs(multifunctional printers), laser printers and software Network System Solutions Personal computers, servers, network systems and network related software Industrial Products Thermal media, optical equipment, semiconductor devices, electronic components and measuring equipment Other Digital cameras *Product lines included in Product Category was changed in the first quarter of fiscal year 2011. Service&Support, such as MDS(Managed Document Services) was changed from Network System Solutions to Imaging Solutions. The reclassification was made to the prior year's figures to conform with the current year's presentation. A2 2. Forecast of Consolidated Performance (Billions of yen) Third Quarter ended Net sales Gross profit Operating income (loss) Income (loss) before income taxes Net income (loss) attributable to Ricoh Company, Ltd. Net income (loss) attributable to Ricoh Company, Ltd. shareholders per share-basic (yen) Net income (loss) 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) Fourth Quarter ending Year ending December 31, 2011 Change March 31, 2012 Change March 31, 2012 Change Results % Forecast % Forecast % 1,396.5 569.0 -36.6 -47.9 -3.0 -5.1 - 503.5 189.9 18.6 14.9 0.1 -0.4 199.7 267.4 1,900.0 759.0 -18.0 -33.0 -2.2 -3.9 - -52.1 - 6.1 - -46.0 - -71.86 - 8.46 - -63.40 - -71.86 53.8 46.8 89.3 79.00 110.71 - 8.46 16.2 16.3 25.7 75.00 105.00 - -63.40 70.0 63.0 115.0 78.01 109.29 - 3. Forecast of Consolidated Sales by Product Category (Billions of yen) Fourth Quarter ending March 31, 2012 Change Forecast Forecast(*) % <Imaging & Solutions> Imaging Solutions Domestic Overseas Network System Solutions Domestic Overseas Imaging & Solutions Total Domestic Overseas The Americas Europe Other <Industrial Products> Industrial Products Domestic Overseas The Americas Europe Other <Other> Other Domestic Overseas The Americas Europe Other Grand Total Domestic Overseas The Americas Europe Other Change % Forecast Year ending March 31, 2012 Change Forecast(*) % Change % 393.6 148.1 245.5 48.4 44.4 4.0 442.0 192.5 249.5 118.4 101.2 29.9 -2.4 4.5 -6.1 6.2 7.0 -1.2 -1.5 5.0 -6.1 -8.7 -5.1 1.9 414.8 148.1 266.7 48.8 44.4 4.4 463.6 192.5 271.1 129.9 108.3 32.9 2.8 4.5 2.0 7.1 7.0 8.7 3.3 5.0 2.1 0.2 1.5 12.1 1,475.6 531.0 944.6 191.8 175.3 16.5 1,667.4 706.3 961.1 454.3 390.4 116.4 -3.7 1.1 -6.2 5.7 5.0 14.0 -2.7 2.0 -5.9 -10.9 -2.2 4.0 1,541.8 531.0 1,010.8 192.7 175.3 17.4 1,734.5 706.3 1,028.2 500.3 405.6 122.3 0.6 1.1 0.4 6.2 5.0 20.6 1.2 2.0 0.7 -1.9 1.6 9.4 22.9 13.4 9.5 2.6 3.1 3.8 -7.5 -7.9 -6.8 -9.0 -11.0 -1.3 23.9 13.4 10.5 3.0 3.3 4.2 -3.4 -7.9 3.1 5.7 -5.9 9.4 96.9 54.4 42.5 11.8 12.6 18.1 -9.3 -16.9 2.8 0.9 -6.7 12.0 99.3 54.4 44.9 13.1 13.0 18.8 -7.0 -16.9 8.5 12.3 -3.8 16.0 38.6 34.3 4.4 1.0 2.7 0.7 503.5 240.1 263.4 122.0 107.0 34.4 31.5 19.6 498.8 963.8 993.1 70.3 0.1 6.0 -4.8 -8.0 -3.1 2.4 39.0 34.3 4.7 1.0 2.9 0.8 526.4 240.1 286.3 133.9 114.5 37.9 32.6 19.6 545.6 977.7 96.1 4.7 6.0 3.5 1.0 3.7 12.9 135.7 124.3 11.4 2.5 6.6 2.3 1,900.0 885.0 1,015.0 468.6 409.6 136.8 11.3 5.1 213.9 521.2 544.7 4.4 -2.2 1.0 -4.8 -10.2 -1.0 5.0 136.4 124.3 12.1 2.6 6.9 2.5 1,970.2 885.0 1,085.2 516.0 425.5 143.7 11.9 5.1 233.5 558.6 576.6 14.9 1.5 1.0 1.8 -1.1 2.8 10.3 * Excluding foreign exchange impact A3