FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of April 2013
Commission File Number 2 - 68279
RICOH COMPANY, LTD.
-----------------------------------------------
(Translation of Registrant's name into English)
13-1, Ginza 8-Chome, Chuo-ku, Tokyo 104-8222, Japan
---------------------------------------------------
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.)
Form 20-F X Form 40-F __
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): __ )
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): __ )
(Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934.)
Yes __ No X
(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82-__ )
--------------------------------------------------------------------------------
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Ricoh Company, Ltd.
------------------------------
(Registrant)
By: /S/ Zenji Miura
------------------------------
Zenji Miura
President and
Chief Executive Officer
April 26, 2013
RICOH April 26, 2013
FLASH REPORT
Year ended March 31, 2013
(Results for the Period from April 1, 2012 to March 31, 2013)
Three months ended March 31, 2013
(Results for the Period from January 1, 2013 to March 31, 2013)
PERFORMANCE OUTLINE (CONSOLIDATED)
(1) Year ended March 31, 2012, 2013 and Year ending March 31, 2014 (Forecast)
(Billions of yen)
------------------------------------------------------------------------------------------------------- ----------------------
Year ended Year ended Year ending
March 31, 2012 March 31, 2013 March 31, 2014
(Results) (Results) Change (Forecast) Change
------------------------------------------------------------------------------------------------------- ----------------------
Domestic sales 886.4 870.3 -1.8% 882.5 1.4%
Overseas sales 1,017.0 1,054.1 3.6% 1,217.5 15.5%
Net sales 1,903.4 1,924.4 1.1% 2,100.0 9.1%
Gross profit 752.6 768.6 2.1% 875.0 13.8%
Operating income (loss) -18.0 63.4 -- 140.0 120.8%
Income (loss) before income taxes -31.9 58.1 -- 135.0 132.4%
Net income (loss) attributable to Ricoh Company, Ltd. -44.5 32.4 -- 80.0 146.8%
------------------------------------------------------------------------------------------------------- ----------------------
Exchange rate (Yen/US$) 79.08 83.06 3.98 95.00 11.94
Exchange rate (Yen/EURO) 109.05 107.08 -1.97 125.00 17.92
------------------------------------------------------------------------------------------------------- ----------------------
Net income (loss) attributable to Ricoh Company, Ltd.
shareholders per share-basic (yen) -61.42 44.78 106.20 110.34 65.56
Net income (loss) attributable to Ricoh Company, Ltd.
shareholders per share-diluted (yen) -61.42 -- -- -- --
------------------------------------------------------------------------------------------------------- ----------------------
Return on equity attributable to Ricoh Company, Ltd.(%) -5.1 3.8 8.9 -- --
Income (loss) before income taxes on total assets (%) -1.4 2.5 3.9 -- --
Operating income (loss) on net sales (%) -0.9 3.3 4.2 6.7 3.4
------------------------------------------------------------------------------------------------------- ----------------------
Total assets 2,289.3 2,360.6 71.3 -- --
Ricoh Company, Ltd. shareholders' equity 822.7 897.9 75.2 -- --
Interest-bearing debt 741.8 702.7 -39.0 -- --
------------------------------------------------------------------------------------------------------- ----------------------
Ricoh Company, Ltd. shareholders' equity ratio (%) 35.9 38.0 2.1 -- --
------------------------------------------------------------------------------------------------------- ----------------------
Ricoh Company, Ltd. shareholders' equity per share (yen) 1,134.64 1,238.55 103.91 -- --
------------------------------------------------------------------------------------------------------- ----------------------
Cash flows from operating activities 11.2 124.5 113.3 -- --
Cash flows from investing activities -112.4 -106.4 5.9 -- --
Cash flows from financing activities 87.8 -64.3 -152.1 -- --
Cash and cash equivalents at end of period 156.2 117.0 -39.1 -- --
------------------------------------------------------------------------------------------------------- ----------------------
Capital expenditures 73.2 86.5 13.2 89.0 2.4
Depreciation for tangible fixed assets 64.9 60.4 -4.5 73.0 12.5
R&D expenditures 119.0 112.0 -7.0 113.0 0.9
------------------------------------------------------------------------------------------------------- ----------------------
Number of employees (Japan) (thousand people) 38.5 37.4 -1.1 -- --
Number of employees (Overseas) (thousand people) 70.7 70.0 -0.7 -- --
------------------------------------------------------------------------------------------------------- ----------------------
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
(2) Three months ended March 31, 2012 and 2013
(Billions of yen)
---------------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2012 March 31, 2013 Change
---------------------------------------------------------------------------------------------------------------------------------
Domestic sales 241.3 229.4 -4.9%
Overseas sales 265.2 307.9 16.1%
Net sales 506.6 537.3 6.1%
Gross profit 184.3 205.1 11.3%
Operating income 18.9 22.9 21.2%
Income before income taxes 16.6 21.8 31.7%
Net income attributable to Ricoh Company, Ltd. 8.6 15.1 75.8%
---------------------------------------------------------------------------------------------------------------------------------
Exchange rate (Yen/US$) 79.32 92.28 12.96
Exchange rate (Yen/EURO) 104.04 121.81 17.77
---------------------------------------------------------------------------------------------------------------------------------
Net income attributable to Ricoh Company, Ltd.
shareholders per share-basic (yen) 11.89 20.92 9.03
Net income attributable to Ricoh Company, Ltd.
shareholders per share-diluted (yen) 11.89 -- --
---------------------------------------------------------------------------------------------------------------------------------
Return on equity attributable to Ricoh Company, Ltd.(%) 1.0 1.8 0.8
Income before income taxes on total assets (%) 0.7 0.9 0.2
Operating income on net sales (%) 3.7 4.3 0.6
---------------------------------------------------------------------------------------------------------------------------------
Capital expenditures 19.3 25.4 6.1
Depreciation for tangible fixed assets 18.1 15.9 -2.2
R&D expenditures 29.7 29.8 0.1
---------------------------------------------------------------------------------------------------------------------------------
2
RICOH COMPANY, LTD. AND CONSOLIDATED SUBSIDIARIES
FLASH REPORT (CONSOLIDATED RESULTS FOR THE YEAR ENDED MARCH 31, 2013)
1. RESULTS FOR THE PERIOD FROM APRIL 1, 2012 TO MARCH 31, 2013
(1) Operating Results
(Millions of yen)
-------------------------------------------------------------------------------
Year ended Year ended
March 31, 2012 March 31, 2013
-------------------------------------------------------------------------------
Net sales 1,903,477 1,924,497
(% change from the previous corresponding
period) -2.0 1.1
Operating income (loss) -18,068 63,434
(% change from the previous corresponding
period) -- --
Income (loss) before income taxes -31,937 58,173
(% change from the previous corresponding
period) -- --
Net income (loss) attributable to Ricoh Company, Ltd. -44,560 32,467
(% change from the previous corresponding
period) -- --
Net income (loss) attributable to Ricoh Company, Ltd.
shareholders per share-basic (yen) -61.42 44.78
Net income (loss) attributable to Ricoh Company, Ltd.
shareholders per share-diluted (yen) -61.42 --
-------------------------------------------------------------------------------
Return on equity attributable to Ricoh Company,
Ltd.(%) -5.1 3.8
Income (loss) before income taxes on total assets (%) -1.4 2.5
Operating income (loss) on net sales (%) -0.9 3.3
-------------------------------------------------------------------------------
Notes:
i. Comprehensive gain: Yen 95,599 million ( - %) (Yen 74,059 million ( - %) in
loss in previous fiscal year)
ii. Equity in income of affiliates: Yen 31 million (Yen 39 million in previous
fiscal year)
(2) Financial Position
(Millions of yen)
-------------------------------------------------------------------------------
March 31, 2012 March 31, 2013
-------------------------------------------------------------------------------
Total assets 2,289,358 2,360,697
Total equity 879,018 958,658
Ricoh Company, Ltd. shareholders' equity 822,704 897,996
Ricoh Company, Ltd. shareholders' equity
ratio (%) 35.9 38.0
Ricoh Company, Ltd. shareholders' equity
per share (yen) 1,134.64 1,238.55
-------------------------------------------------------------------------------
(3) Cash Flows
(Millions of yen)
-------------------------------------------------------------------------------
Year ended Year ended
March 31, 2012 March 31, 2013
-------------------------------------------------------------------------------
Cash flows from operating activities 11,206 124,526
Cash flows from investing activities -112,443 -106,467
Cash flows from financing activities 87,823 -64,321
Cash and cash equivalents at end of period 156,210 117,051
-------------------------------------------------------------------------------
2. DIVIDEND INFORMATION
(Millions of yen)
------------------------------------------------------------------------------------------
Year ended Year ended Year ending
March 31, 2012 March 31, 2013 March 31, 2014
------------------------------------------------------------------------------------------
Cash dividends, applicable to the year (yen) 25.00 29.00 33.00
Half year (yen) 16.50 12.50 16.50
Year-end (yen) 8.50 16.50 16.50
Total annual dividends (millions of yen) 18,133 21,026
Payout Ratio (%) -- 64.8 29.9
Dividends on shareholders' equity (%) 2.1 2.4
------------------------------------------------------------------------------------------
3. FORECAST OF OPERATING RESULTS FROM APRIL 1, 2013 TO MARCH 31, 2014
(Millions of yen)
-------------------------------------------------------------------------------
Year ending
March 31, 2014
-------------------------------------------------------------------------------
Net sales 2,100,000
Operating income 140,000
Income before income taxes 135,000
Net income attributable to Ricoh Company, Ltd. 80,000
Net income attributable to Ricoh Company, Ltd. shareholders
per share (yen) 110.34
------------------------------------------------------------------------------
3
4. OTHERS
(1) Changes in significant subsidiaries: No
(2) Change in accounting method has been made.
* Please see (8) Changes in Significant Accounting Policies (Consolidated) on
page 25.
(3) Number of common stock outstanding (including treasury stock):
As of March 31, 2013 744,912,078 shares As of March 31, 2012 744,912,078 shares
(4) Number of treasury stock:
As of March 31, 2013 19,875,662 shares As of March 31, 2012 19,831,060 shares
(5) Average number of common stock:
As of March 31, 2013 725,062,802 shares As of March 31, 2012 725,483,319 shares
(REFERENCE) NON-CONSOLIDATED INFORMATION
1. RESULTS FOR THE PERIOD FROM APRIL 1, 2012 TO MARCH 31, 2013
(1) Operating Results
(Millions of yen)
-------------------------------------------------------------------------------
Year ended Year ended
March 31, 2012 March 31, 2013
-------------------------------------------------------------------------------
Net sales 795,471 803,861
(% change from the previous corresponding
period) -5.6 1.1
Operating loss -31,927 -1,520
(% change from the previous corresponding
period) -- --
Ordinary income (loss) -7,402 18,650
(% change from the previous corresponding
period) -- --
Net income (loss) -128,678 15,846
(% change from the previous corresponding
period) -- --
Net income (loss) per share-basic (yen) -177.37 21.86
Net income (loss) per share-diluted (yen) -- --
-------------------------------------------------------------------------------
(2) Financial Position
(Millions of yen)
-------------------------------------------------------------------------------
March 31, 2012 March 31, 2013
-------------------------------------------------------------------------------
Total assets 1,135,182 1,110,025
Net assets 599,269 603,092
Equity ratio (%) 52.8 54.3
Net assets per share (yen) 826.02 832.79
-------------------------------------------------------------------------------
* Equity capital March 31, 2013 Yen 603,092 million March 31, 2012 Yen 599,269 million
4
1. PERFORMANCE
(1) OPERATING RESULTS
*Overview
Consolidated net sales of Ricoh Group for the fiscal year 2012 (April 1, 2012 to
March 31, 2013) increased by 1.1% as compared to the previous corresponding
period, to Yen 1,924.4 billion. During this period, the average yen exchange
rates were Yen 83.06 against the U.S. dollar (down Yen 3.98) and Yen 107.08
against the Euro (up Yen 1.97). Net sales would be at the same level compared to
the previous corresponding period when excluding the impact of such foreign
currency exchange fluctuation.
The Japanese economy has shown signs of gradual recovery with the increase in
demand relating to the recovery and restoration of the areas affected by the
Great East Japan Earthquake. However, with the strong Yen against the U.S.
dollar and the Euro during most of the year, along with the continued worry of a
global slowdown, the economic environment remained fairly stagnant throughout
the fiscal year. The higher expectations arising from the economic recovery
plans introduced by the new cabinet has helped to weaken the Yen and increase
the stock prices during the end of 2012, but the overall economic outlook still
remains unpredictable.
Under such conditions, domestic sales in the Other segment increased compared to
the previous corresponding period due to the additional sales contribution from
Pentax Ricoh Imaging Co., Ltd but sales in the Imaging & Solutions segment and
the Industrial Products segment decreased from the previous corresponding
period. Overall, domestic sales decreased by 1.8% compared to the previous
corresponding period.
Outside of the domestic market, the U.S. economy is showing signs of a modest
recovery, but the European economy remains stagnant under the prolonged European
debt crisis, along with the slowdown in growth occurring in China and the rest
of the emerging markets. These economic conditions have affected the overseas
sales of Ricoh.
As for overseas sales by region, sales in the Americas increased by 5.9%
compared to the previous corresponding period (an increase of 0.9% excluding
foreign currency exchange fluctuation) due to the weakening trend of the yen
against the dollar that began during the end of the year. Sales in Europe,
Middle East and Africa increased by a mere 0.1% due to the continued economic
uncertainties in the region along with the strong Yen against the Euro (an
increase of 1.9% excluding foreign currency exchange fluctuation). Sales in
Other region (which includes China, South East Asia and Oceania) increased by
6.9% (an increase of 3.2% excluding foreign currency exchange fluctuation). As a
result, total overseas sales increased by 3.6% compared to the previous
corresponding period (an increase of 1.6% excluding foreign currency exchange
fluctuation).
Gross profit increased by 2.1% as compared to the previous corresponding period,
to Yen 768.6 billion due to increase in sales and the continued cost reduction
activities implemented by the company.
The group-wide activities to streamline costs have contributed significantly in
reducing selling, general and administrative expenses. The decrease in
impairment costs of long-lived assets and corporate restructuring costs, as well
as decrease in goodwill impairment costs which were not incurred this fiscal
year contributed to a decrease of 8.5% in selling, general and administrative
expenses as compared to the previous corresponding period; to Yen 705.1 billion.
As a result, operating income increased significantly to Yen 63.4 billion
(operating loss was Yen 18.0 billion for the previous corresponding period).
Other income and expenses have improved compared to the previous corresponding
period due to significant reduction in losses from securities revaluation and
the decrease in foreign exchange loss. As a result, income before income taxes
increased as compared to the previous corresponding period; to Yen 58.1 billion
(loss before income taxes was Yen 31.9 billion for the previous corresponding
period).
Consequently, net income attributable to Ricoh Company, Ltd. increased by Yen
77.0 billion as compared to the previous corresponding period; to Yen 32.4
billion (net loss was Yen 44.5 billion for the previous corresponding period).
Comprehensive income increased significantly primarily by the increase in
consolidated net income and the increase in cumulative translation adjustments.
5
*Consolidated Sales by Product Line
Imaging & Solutions (Sales up 0.9% to Yen 1,685.3 billion)
----------------------------------------------------------
Sales in the Imaging & Solutions segment which is comprised of the Office
Imaging, Production Printing and Network System Solutions increased by 0.9% from
the previous corresponding period, to Yen 1,685.3 billion.
Office Imaging (Sales up 0.5% to Yen 1,329.6 billion)
-----------------------------------------------------
Sales in this category increased by 0.5% compared to the previous
corresponding period, to Yen 1,329.6 billion. The sales would have
decreased by 0.7% excluding the effects of foreign currency fluctuations.
The sales of color PPCs increased compared to the previous corresponding
period along with the increase in sales of monochrome printers.
Production Printing (Sales down 1.0% to Yen 147.0 billion)
----------------------------------------------------------
Despite the increase in the sales of cut sheet products, sales in this
category decreased by 1.0% compared to the previous corresponding period,
to Yen 147.0 billion due to the decrease in the sales of our third party
products.
Network System Solutions (Sales up 4.8% to Yen 208.7 billion)
-------------------------------------------------------------
Sales in this category increased by 4.8% compared to the previous
corresponding period, to Yen 208.7 billion due primarily to the increase
in overseas sales of IT services.
Industrial Products (Sales down 5.1% to Yen 93.0 billion)
---------------------------------------------------------
Sales in the Industrial Products segment decreased by 5.1% compared to the
previous corresponding period, to Yen 93.0 billion. Sales of thermal media
products increased from the previous corresponding period, but the sales of
semiconductor devices and ele
Other (Sales up 8.7% to Yen 146.0 billion)
------------------------------------------
Net sales in the Other segment increased by 8.7% compared to the previous
corresponding period, to Yen 146.0 billion due to contribution in sales from
Pentax Ricoh Imaging Co., Ltd, which was acquired in the second half of FY11.
6
*Consolidated Sales by Geographic Area
Japan (Sales down 1.8% to Yen 870.3 billion)
--------------------------------------------
The Japanese economy has shown signs of gradual recovery with the increase in
demand relating to the recovery and restoration of the areas affected by the
Great East Japan Earthquake. The expectations arising from the economic recovery
plans introduced by the new cabinet along with the monetary easing measures
introduced by the Bank of Japan has helped to weaken the Yen and increase the
stock prices, but the overall economic outlook still remains unpredictable.
Under such conditions, sales in the Imaging & Solutions segment for the domestic
market decreased by 2.2% compared to the previous corresponding period to Yen
695.7 billion, due to the slow down in after-sales revenue.
Sales of semiconductor devices and electronic components decreased as compared
to the previous corresponding period. As a result, sales in the Industrial
Products segment decreased by 16.5% as compared to the previous corresponding
period, to Yen 44.5 billion.
Other segment sales have increased compared to the previous corresponding period
due to the additional sales contribution from Pentax Ricoh Imaging Co., Ltd.,
which was acquired in the second half of FY11.
The Americas (Sales up 5.9% to Yen 496.6 billion)
-------------------------------------------------
In the Americas, the economic situation remains unpredictable despite the
gradual recovery in individual consumption and capital investment. Despite such
economic conditions, the weakening of the Yen against the Dollar during the
latter part of the fiscal year has contributed to increase overall sales by 5.9%
compared to the previous corresponding period, to Yen 496.6 billion.
The sales in this area would have increased by 0.9% excluding the effects of
foreign currency fluctuations.
Europe, Middle East and Africa (Sales up 0.1% to Yen 421.7 billion)
-------------------------------------------------------------------
In Europe, Middle East and Africa the economic situation remains uncertain due
to the prolonged European debt crisis. The Yen showed signs of weakness against
the Euro around the end of the year, but for the most part of the fiscal year
the Yen remained strong against the Euro. Under such conditions, the sales in
Europe, Middle East and Africa increased by 0.1% compared to the previous
corresponding period, to Yen 421.7 billion.
The sales in this area would have increased by 1.9% excluding the effects of
foreign currency fluctuations.
Other (Sales up 6.9% to Yen 135.7 billion)
------------------------------------------
The Other segment includes China, South East Asia and Oceania. The emerging
markets including China and India achieved strong growth, but there are signs of
a slowdown in growth in these countries and the rest of the emerging markets.
Due to the strengthening of the sales force in the emerging markets, Ricoh was
able to increase sales in all segments from the previous corresponding period.
As a result, overall sales in Other increased by 6.9% from the previous
corresponding period, to Yen 135.7 billion. The sales in this area would have
increased by 3.2% excluding the effects of foreign currency fluctuations.
7
*Segment Information
Operating Segment
-----------------
Imaging & Solutions
-------------------
The increase in the sales of color PPCs, MFPs, monochrome printers and Network
System Solutions have contributed to the overall increase in sales in the
Imaging & Solutions segment by 0.9% from the previous corresponding period, to
Yen 1,685.3 billion.
The group-wide activities to streamline costs have contributed to improve our
operating income. The decrease in the impairment of long-lived assets and
corporate restructuring costs incurred this fiscal year along with goodwill
impairment incurred during the previous fiscal year that were not incurred this
fiscal year have all contributed to significantly improve our operating income
for this fiscal year to Yen 137.9 billion.
Industrial Products
-------------------
Sales in the Industrial Products segment decreased by 5.2%, as compared to the
previous corresponding period, to Yen 97.4 billion. Sales of semiconductor
devices and electronic components decreased as compared to the previous
corresponding period. As a result, operating loss in the Industrial Products
segment amounted to Yen 0.8 billion (operating loss was Yen 1.6 billion for the
previous corresponding period).
Other
-----
Sales in the Other segment increased by 8.7%, as compared to the previous
corresponding period, to Yen 146.0 billion. The acquisition of Pentax Ricoh
Imaging Co., Ltd., which was acquired in the second half of FY11, has
contributed to the increase in sales of our digital camera products. However,
the additional expenses incurred relating to new business affected our overall
performance in this segment, resulting in an operating loss of Yen 5.2 billion
(operating loss Yen 4.7 billion for the previous corresponding period).
(Billions of yen)
----------------------------------------------------------------------------------
Year ended Year ended
March 31, 2012 March 31, 2013 Change (%)
----------------------------------------------------------------------------------
Imaging & Solutions:
Net sales 1,671.1 1,685.3 0.9
Operating income 54.9 137.9 151.0
Operating income
on sales(%) 3.3 8.2 4.9point
----------------------------------------------------------------------------------
Industrial Products:
Net sales 102.7 97.4 -5.2
Operating loss -1.6 -0.8 --
Operating loss
on sales(%) -1.6 -0.9 0.7point
----------------------------------------------------------------------------------
Other:
Net sales 134.3 146.0 8.7
Operating loss -4.7 -5.2 --
Operating loss
on sales(%) -3.5 -3.6 -0.1point
----------------------------------------------------------------------------------
8
Geographic Segment
------------------
Japan
-----
Although there are increased demand relating to the recovery and restoration of
the areas affected by the Great East Japan Earthquake, along with the weakening
Yen and increase of stock prices during the latter part of the fiscal year, the
overall economic outlook still remains unpredictable. Under such condition,
overall sales in Japan decreased by 1.0% from the previous corresponding period,
to Yen 1,262.3 billion. The group-wide activities to streamline costs and the
reduction in restructuring costs have contributed to improve our operating
income for this fiscal year to Yen 26.9 billion.
The Americas
------------
The weakening of the Yen against foreign currencies during the latter part of
the fiscal year have contributed to increase overall sales in the Americas
segment by 5.4% as compared to the previous corresponding period, to Yen 500.9
billion. The decrease in impairment of long-lived assets along with goodwill
impairment incurred during the previous fiscal year that were not incurred this
fiscal year have contributed to significantly improve our operating income to
Yen 6.6 billion.
Europe, Middle East and Africa
------------------------------
The continued business recession throughout Europe, and the strong Yen against
the Euro for most part of the fiscal year have affected our sales in this
segment. The overall sales in this segment decreased by 0.2%, from the previous
corresponding period to Yen 415.4 billion. Operating income increased by 48.1%
from the previous corresponding period, to Yen 26.1 billion due to the
group-wide activities taken to streamline costs.
Other
-----
By strengthening the sales structure in the emerging market, overall sales in
Other segment increased by 11.9% from the previous corresponding period, to Yen
311.2 billion. Operating income increased by 66.1% from the previous
corresponding period, to Yen 12.7 billion.
9
*Forecast for the coming fiscal year
Economic projections and Ricoh Group's strategies for fiscal year 2013
----------------------------------------------------------------------
From a global perspective, the U.S. economy is showing signs of a modest
recovery and expectations for growth in the domestic economy are arising from
the economic recovery plans by the new cabinet and the Bank of Japan. However,
the overall economic outlook continues to remain unpredictable with the
prolonged European debt crisis and the slowdown in growth occurring in the
emerging markets.
We believe the various restructuring activities implemented throughout the Ricoh
Group will contribute to our continued growth in the future. These activities
will be continually implemented to strengthen our management efficiency.
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 = Yen 95.00 (Yen 83.06 in previous fiscal year)
EURO 1 = Yen 125.00 (Yen 107.08 in previous fiscal year)
(Billions of yen)
------------------------------------------------------------------------------
Year ended Year ending
March 31, 2013 March 31, 2014
(Results) (Forecast) Change
------------------------------------------------------------------------------
Domestic sales 870.3 882.5 1.4%
Overseas sales 1,054.1 1,217.5 15.5%
Net sales 1,924.4 2,100.0 9.1%
Gross profit 768.6 875.0 13.8%
Operating income 63.4 140.0 120.8%
Income before income taxes 58.1 135.0 132.4%
Net income attributable to
Ricoh Company, Ltd. 32.4 80.0 146.8%
-----------------------------------------------------------------------------
Notes:
* 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.
10
(2) FINANCIAL POSITION
A) Assets, Liabilities, and Equity at Year-End
(Billions of yen)
-----------------------------------------------------------------------------------
March 31, 2012 March 31, 2013 Change
-----------------------------------------------------------------------------------
Total Assets 2,289.3 2,360.6 71.3
Total Equity 879.0 958.6 79.6
Ricoh Company, Ltd. shareholders'
equity 822.7 897.9 75.2
Ricoh Company, Ltd. shareholders'
equity ratio (%) 35.9% 38.0% 2.1point
------------------------------------------------------------------------------------
For Assets, cash and time deposits have decreased from the end of the previous
fiscal year. In addition, the weakening of the Yen against foreign currencies
during the end of the fiscal year has contributed to the increase in our assets
held in foreign currencies. As a result, total assets increased by Yen 71.3
billion; to Yen 2,360.6 billion.
For Liabilities, repayments of debt have contributed to the decrease in the
total amount of interest-bearing debt. As a result, total liabilities decreased
by Yen 8.3 billion; to Yen 1,402.0 billion.
For Total Equity, the accumulated other comprehensive income 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 increased by Yen 79.6 billion from the end of the previous fiscal year;
to Yen 958.6 billion.
B) Cash Flows
(Billions of yen)
--------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2012 March 31, 2013 Change
--------------------------------------------------------------------------------------------
Cash flows from operating activities 11.2 124.5 113.3
Cash flows from investing activities -112.4 -106.4 5.9
Cash flows from financing activities 87.8 -64.3 -152.1
Cash and Cash Equivalents at end of period 156.2 117.0 -39.1
--------------------------------------------------------------------------------------------
Net cash provided by operating activities increased by Yen 113.3 billion from
the previous corresponding period, to Yen 124.5 billion due primarily to the
increase in net income and decrease in inventory.
Even though purchases of fixed assets increased, the acquisition cost incurred
in the previous fiscal year affected our overall net cash used in investing
activities. The net cash used in investing activities decreased by Yen 5.9
billion from the previous corresponding period; to Yen 106.4 billion.
As a result, free cash inflows generated by operating and investing activities
amounted to Yen 18.0 billion while free cash flow was a negative Yen 101.2
billion in the previous corresponding period.
Net cash used in financing activities in this period amounted to Yen 64.3
billion due primarily to decrease in interest-bearing debt.
As a result of the above, cash and cash equivalents as of the end of this fiscal
year decreased by Yen 39.1 billion from the end of the previous corresponding
period, to Yen 117.0 billion.
C) Cash Flow Indices
-----------------------------------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended Year ended
March 31, 2009 March 31, 2010 March 31, 2011 March 31, 2012 March 31, 2013
-----------------------------------------------------------------------------------------------------------------------
Total Equity / Total assets 38.8% 40.8% 41.0% 35.9% 38.0%
Market capitalization / Total assets 33.6% 44.4% 47.0% 25.5% 30.8%
Interest bearing debt / Operating cash flow 8.9 3.6 5.3 66.2 5.6
Operating cash flow / Interest expense 14.9 23.4 15.1 1.6 16.9
-----------------------------------------------------------------------------------------------------------------------
Notes:
i. All indices are calculated based on consolidated data.
ii. Market capitalization equals the stock price at the end of fiscal year
multiplied by the number of shares outstanding at the end of fiscal year.
iii. Operating cash flows is shown in consolidated statement of cash flow.
Interest bearing debt includes all debt in which a fee is charged for the
liability.
iv. Indices of Year ended March31, 2009 and 2010 are not based on the figures
retrospectively adjusted.
11
(3) DIVIDEND POLICY
Ricoh endeavors to ensure that policies are regularly updated to take the
dividend payout ratio into consideration in the payment of dividends,
while at the same time increasing retained earnings for the enhancement
of corporate structure and for new business generation. Furthermore,
these retained earnings will be used both in the reinforcement of core
businesses and for investment in new fields with both medium-term and
long-term perspectives.
Since we have achieved profit for this fiscal year, the total dividend
per share for the fiscal year ended March 31, 2013 will be Yen 4.00
higher than the previous fiscal year, to Yen 29.00 and for the fiscal
year ending March 31, 2014 will be Yen 33.00 respectively.
(4) RISK FACTORS
Risks that may affect Ricoh's financial results and financial position
are listed below, but are not limited to them. Ricoh's business may in
the future also be affected by other risks that are currently unknown or
that are not currently considered significant or material.
-Ability to respond to rapid technological changes in the document
imaging and management industry
-Highly competitive markets
-The risks of international operations and the risks of overseas
expansion
-Economic outlooks in major markets
-Foreign exchange fluctuations
-Crude oil price fluctuations
-Government regulation that can limit its activities or increase its
cost of operations
-Internal control evaluations and attestation over financial reporting
under section 404 of the Sarbanes-Oxley Act of 2002
-Dependence on protecting its intellectual property rights
-Dependence on securing and retaining specially skilled personnel
-Increase of employee benefit obligations
-Environmental laws and regulations
-Risks associated with Ricoh's equipment financing business
-Product liability claims that could significantly affect its
financial condition
-Alliances with other entities
-Risks associated with divulging of information
-Catastrophic disaster, information technology problems or infectious
diseases
-Fluctuations in a state of electricity supply
12
2. GROUP POSITION
The Ricoh Group comprises 220 subsidiaries and 7 affiliates as of March 31,
2013.
Their development, manufacturing, sales, and service activities center on
Imaging & Solutions, Industrial Products, and Other.
Ricoh Company, Ltd., a parent company, heads development. The parent company
and subsidiaries or affiliates maintain an integrated domestic and
international manufacturing structure. Below, we have listed our main product
areas and the positions of key subsidiaries and affiliates.
[Imaging & Solutions]
In this business category, Ricoh provides products and systems that support the
enhancement of the office productivity of customers. Major products include:
Digital/analog copiers, MFPs (multifunctional printers), laser printers,
facsimile machines, and digital duplicators. Ricoh also provides solution
systems including personal computers and servers, utilizing its information
technology. Another business Ricoh also provides are support, service, and
related supplies, as well as support and service including IT environment setup
and network administration.
[Main Subsidiaries and Affiliates]
Manufacturing
Japan...Tohoku Ricoh Co., Ltd., Ricoh Elemex Corporation, Ricoh Unitechno
Co., Ltd., Hasama Ricoh Inc., Ricoh Microelectronics Co., Ltd., Ricoh
Keiki Co., Ltd., and Ricoh Printing Systems, Ltd.
The Americas...Ricoh Electronics, Inc.
Europe...Ricoh UK Products Ltd., Ricoh Industrie France S.A.S.
Other regions...Ricoh Asia Industry (Shenzhen) Ltd., Shanghai Ricoh Digital
Equipment Co., Ltd. and Ricoh Manufacturing (Thailand) Ltd.
Sales and Service
Japan...Ricoh Japan Corporation, Ricoh Technosystems Co., Ltd., Ricoh IT
Solutions Co.,Ltd., Ricoh Leasing Co., Ltd. and Ricoh Logistics System
Co., Ltd.
The Americas...Ricoh Americas Corporation, Ricoh Production Print
Solutions, LLC,
Ricoh USA Inc.
Europe...Ricoh Europe PLC, Ricoh Deutschland GmbH, Ricoh UK Ltd.,
Ricoh France S.A.S., Ricoh Espana S.L.U. and Ricoh Italia Srl.
Other regions...Ricoh China Co., Ltd., Ricoh Hong Kong Ltd., Ricoh Asia
Pacific Operations Ltd., Ricoh Asia Pacific Pte. Ltd., Ricoh Australia
Pty, Ltd. and Ricoh India Ltd.
[Industrial Products]
Manufacturing and marketing thermal media, optical equipments, semiconductors
and electronic component
[Main Subsidiaries and Affiliates]
Manufacturing and Sales
Japan...Ricoh Optical Industries Co., Ltd., Ricoh Elemex Corporation and
Ricoh Microelectronics Co., Ltd.
The Americas...Ricoh Electronics, Inc.
Europe...Ricoh Industrie France S.A.S.
[Other]
Supplying digital camera, and providing leasing and logistics services
[Main Subsidiaries and Affiliates]
Manufacturing
Pentax Ricoh Imaging Products (Philippines) Corporation
Sales
Ricoh Americas Corporation, Pentax Ricoh Imaging Americas Corporation,
Ricoh Europe PLC, Pentax Ricoh Imaging France S.A.S
Other
Ricoh Leasing Co., Ltd., Ricoh Logistics System Co., Ltd., Pentax Ricoh
Imaging Co., Ltd.
[Chart of Business System]
The following chart is showing the group positions.
13
[Chart of Business System]
The chart of group position is omitted.
14
3. MANAGEMENT POLICY
(1) Basic Management Policy
Ricoh Group aims "To be the most trusted brand with irresistible appeal in the
global market.", and makes its missions "to be committed to providing excellence
to improve the quality of living" and "to save the precious earth and fulfill
its responsibilities for creating sustainable society".
To these ends, we are providing innovative products and services to all
customers who handle information at work in offices and in their lives out of
the office, based on the Ricoh brand benefits of "Harmonize with the
environment", "Simplify your life and work", and "Support knowledge management".
(2) Medium and Long Term Management Strategy
The business environment surrounding the Ricoh Group has drastically changed in
the past several years and we are currently at a turning point for our core
Imaging & Solutions business.
In developed countries, the demands for copiers and multi-functional products
have become stagnant. More information is processed in the office environment
than ever before, but the increase in the information communicated is handled
more through the internet by devices such as smart phones and tablet PCs. This
has increased the variations in the way we print. Moreover, after the global
financial crisis, customers are becoming more cost conscious and a major shift
in attitudes is setting forth a new era in which people get more value by owning
less property. One example is the increasing trend to move towards cloud
computing. In other words, customers value are shifting from "owing products" to
"using services." Accelerated mobile device and cloud computing usage and paper
use trends, indications for changes in working style. The measure of customer
satisfaction also is changing. Customers only want to be charged for a
successful result. Therefore, we understand that a simple proposal on product
features and prices will not be sufficient for meeting the demands of our
customers.
The Ricoh Group has launched the 17th Mid-Term Management Plan (implemented from
fiscal 2012 to 2014) that defines "business creation and integration" and
"establishment of highly efficient management" as its two basic strategies to
adapt to these changes.
For "business creation and integration", aiming for "regeneration", we are
implementing measures to reinforce the earning power through core businesses, to
create new profit models in current core businesses and to accelerate
development for new growth businesses.
With regard to the "establishment of highly efficient management", we are
reconstructing our corporate systems in order to build an organization that can
maintain accelerated business growth while properly responding to any changes in
the business environment. Also in order to improve resource efficiency, we are
reviewing our business processes and our allocation of human resources. We are
also conducting a full analysis of all business activities, and advancing
structural reform.
The status of achievement for this fiscal year on our core strategies are as
follows:
BUSINESS CREATION AND INTEGRATION
---------------------------------
In the Imaging & Solutions segment, we have introduced a full line-up of
products that will contribute to the increase in productivity and reduction of
total cost of ownership (TCO) for our customers.
With regards to our monochrome multifunction products, we have introduced MP
9002/7502/6002/6002GP series. These products are created using electric furnace
steel sheets that are made of 100% steel scrap. This has contributed to reduce
the consumption of new resources in our office equipments.
Additionally, we have introduced a full line-up of reconditioned multifunction
products, which are comprised of MF C4000RC SRF/MF C2800RC SRF color line-up and
MF 7501RC/6001RC/5000RC/4000RC/3350RC/ 2550RC series monochrome line-up. These
products are built using mainly reusable parts and have contributed to a large
reduction in the level of CO2 during the manufacturing process.
By introducing these new products that have achieved improved environmental
performance and productivity, we were able to obtain high market share for
multifunction products.
As for printers, we have introduced a complete new lineup of products, which are
SP C831/C831M/C830/C830M/ C731/C731M/C730/C730M/C730L color printers and SP
8300/8300M monochrome printers. These products are equipped with a user friendly
4.3 inch full color LCD touch panel, which allows for improved operation
ability. Furthermore, features such as printing from mobile devices have been
improved by connecting to a cloud computing environment. In addition to this, we
have also introduced our GELJET SG 7100 printer and the multi-function GELJET SG
3100SF. These compact models offers improved first print output, enhanced
security features that will fit the needs of various industries and operations.
Furthermore, these compact models can be used as a desktop machine in the office
to achieve improved productivity and reduction of TCO.
With regard to our other offerings, we have introduced six new projection
systems (twelve models), including our desk edge / short throw projectors PJ
WX3340N and PJ WX4240N and the Interactive Whiteboard D5500. The Interactive
Whiteboard D5500 allows the user to write directly onto the display and allow
for improved data and information sharing across the network. By offering the
best mix of our innovative products, we have been able to help assist our
customers in changing their work style to improve efficiency within their
organization.
We expanded Managed Document Services (MDS)* and by assisting customers with
their overall IT service needs, such as taking over time-consuming tasks,
ensuring high network uptime and security, and resolution of various IT issues.
Furthermore, by improving overall operations with the use of fewer resources, we
have been able to achieve improved revenue growth in this market.
*Managed Document Services (MDS)
MDS is a service intended to design, construct, maintain and optimize a highly
efficient information infrastructure. Under MDS, we work to evaluate and
understand each customer's unique needs from document creation, utilization to
storage and to provide them with a solution for effective management of their
entire document environment.
In the emerging markets, we continue to provide a strong lineup of products such
as our A4 multi-function products along with streamlining our development and
manufacturing functions to further accelerate reduction in our production costs.
We have achieved high market share due to the strengthening of our sales
channels in Asia.
15
With regards to new business development, we have expanded technological
development and products in our industrial and consumer areas in order to
provide added-value to our customers.
In the Industrial products segment, we have continued our development of
advanced devices, modules and materials based on our core optical and thermal
technology. Under such development, we introduced a re-writable hybrid media
that allows for images made chemically to appear or disappear through controlled
application of heat. Furthermore, we have introduced a line-up of five Factory
Automation (FA) cameras and fourteen lenses that can be used in manufacturing
lines for inspection, pattern matching, and alignment. These products have
contributed to the increased productivity and reduction of costs in our
customers manufacturing facilities.
With regards to our thermal media business, we are continuing to take steps to
increase our presence in the global market, especially in the emerging market.
In order to gain a foothold into this market, we have established a subsidiary
in India.
As for the Consumer segment, we continue to strengthen our product lineup with
the introduction of our digital compact interchangeable lens SLR camera the
"PENTAX Q10" and our top of the line K series "PENTAX K-5 II" camera.
ESTABLISH HIGHLY EFFECTIVE MANAGEMENT
-------------------------------------
In order to achieve further growth and stable performance under the severe
economic environment, the Ricoh Group has implemented various initiatives to
restructuring. This includes initiatives such as drastically reducing expenses,
streamlining overlapping operations and shift of personnel to growth areas.
Furthermore, to enhance the global competitiveness of our engineering and
manufacturing functions, we have consolidated part of our engineering and
manufacturing resources relating to imaging products that were previously
dispersed among Ricoh and several manufacturing subsidiaries in Japan into two
subsidiaries, Ricoh Technologies and Ricoh Industries, which were established on
April 1, 2013.
(3) Issues to Face
The Ricoh Group has not only taken various steps to cope with the worldwide
financial meltdown, the Thailand flooding, the catastrophic earthquake and
tsunami in Japan and huge shift ICT technology, but has implemented various
initiatives to build a strong and stable management system for growth. This
coming fiscal year 2013 will be an important year for the Ricoh Group in
developing a market for further growth. To achieve this growth, we have set
forth and will implement the following four core action plans.
I.Thoroughly reinforce the earning power through core businesses
In regards to our core business in the Office Imaging segment, we will continue
to win over competition and increase market share by improving the features of
our products at competitive prices, along with providing quicker innovative
solutions to our customers. Furthermore, by increasing the efficiency of our
development, manufacturing and sales operations, we will be able to increase our
profitability.
Additionally, in the emerging markets with continued growth, we will increase
profit through expansion of sales channels along with increasing sales through
the various IT services companies acquired in the past several years.
Furthermore, products and services will be developed upon the features and
prices demanded in the respective markets. In addition to China, India and
others, we will continue to establish our presence in markets or countries in
which we can expect strong growth.
As for our Production Printing business, we will continue to enhance our product
lineup. we can expect an increase in revenue from the increased print volume
achieved from the sale of these products. Furthermore, we will develop business
fields for commercial printing.
II. Create new profit models in current core businesses
We will constantly look to provide solutions to a wider range of issues
surrounding our customers to establish an additional growth model to our
existing multi-function and printer business. We will further enhance our MDS
and IT Services along with strengthening our solutions for enhanced
communication such as our projection system, video conference system and our
interactive whiteboard solution. Additionally, by providing improved
connectivity of our multi-function products and printers to smart phones and
tablet PCs, we can offer more innovative work style solutions to our customers.
III. Accelerate development for new growth businesses
In order for the Ricoh Group to take advantage of new business opportunities, we
will continue to provide the market with innovative optical, image processing
and environmental technology solutions. Especially in the area of optical
systems in our Industrial Products segment, we will enhance our applied
technology to develop and market new devices and modules. Furthermore, for our
consumer segment, especially surrounding our digital SLR cameras, we will
continue to strengthen our products and sales network to solidify our presence
in this market. Moreover, to maintain long-term growth, we will continue to
improve and strengthen the process of searching and developing for profitable
business opportunities in the future.
IV. Improve resource efficiency
We will increase overall business efficiency to maximize the value of our
products and services that can be generated through the resources injected. We
will continue to place effort into establishing a corporate culture that will
value employees in all areas (development, manufacturing, sales and
headquarters, etc.) whom have a mindset for working to earn even greater trust
and confidence from its customers as a reliable partner.
For corporations to be sustainable for the future, they must always contribute
to the welfare of mankind, the development of society and the conservation of
earth's environment. For the Ricoh Group to continue to grow and to be admired
by society, we will continue to increase corporate value in respect to the
society, environment and the economy. As part of these efforts, in April 2012,
the Ricoh Group introduced a new global brand tagline "imagine. change." to
express the concept that collective imagination can pave the way for change into
the future. With this new corporate message, the Ricoh Group will continue its
concerted efforts to drive innovation to a broader extent than customers'
expectations, aiming to remain their most valued and trusted business partner.
16
4. CONSOLIDATED FINANCIAL STATEMENTS
(1) CONSOLIDATED BALANCE SHEETS
(March 31, 2012 and 2013)
Assets (Millions of yen)
---------------------------------------------------------------------------------------------------------------
March 31, 2012 March 31, 2013 Change
---------------------------------------------------------------------------------------------------------------
Current Assets
Cash and time deposits 158,671 120,331 -38,340
Trade receivables 686,930 745,470 58,540
Inventories 195,009 195,367 358
Other current assets 65,896 65,051 -845
Total Current Assets 1,106,506 1,126,219 19,713
Fixed Assets
Tangible fixed assets 268,527 290,875 22,348
Finance receivables 468,004 466,608 -1,396
Other investments 446,321 476,995 30,674
Total Fixed Assets 1,182,852 1,234,478 51,626
--------------------------------------------------------------------------------------------------------------------
Total Assets 2,289,358 2,360,697 71,339
--------------------------------------------------------------------------------------------------------------------
Note:
Contents of cash and time deposits:
Cash and cash equivalents 156,210 117,051
Time deposits 2,461 3,280
Liabilities and Equity (Millions of yen)
---------------------------------------------------------------------------------------------------------------
March 31, 2012 March 31, 2013 Change
---------------------------------------------------------------------------------------------------------------
Current Liabilities
Trade payables 252,209 256,538 4,329
Short-term borrowings 216,432 226,399 9,967
Other current liabilities 204,383 217,430 13,047
Total Current Liabilities 673,024 700,367 27,343
Fixed Liabilities
Long-term indebtedness 525,435 476,381 -49,054
Accrued pension and severance costs 164,757 164,289 -468
Other fixed liabilities 47,124 61,002 13,878
Total Fixed Liabilities 737,316 701,672 -35,644
---------------------------------------------------------------------------------------------------------------
Total Liabilities 1,410,340 1,402,039 -8,301
---------------------------------------------------------------------------------------------------------------
Equity
Common stock 135,364 135,364 --
Additional paid-in capital 186,083 186,083 --
Retained earnings 742,549 759,783 17,234
Accumulated other comprehensive loss -204,175 -146,088 58,087
Treasury stock -37,117 -37,146 -29
Ricoh Company, Ltd. shareholders' equity 822,704 897,996 75,292
Noncontrolling interests 56,314 60,662 4,348
---------------------------------------------------------------------------------------------------------------
Total Equity 879,018 958,658 79,640
---------------------------------------------------------------------------------------------------------------
Total Liabilities and Equity 2,289,358 2,360,697 71,339
---------------------------------------------------------------------------------------------------------------
Note: Accumulated other comprehensive income (loss);
Net unrealized holding gains on available-for-sale
securities 3,681 8,665 4,984
Pension liability adjustments -67,578 -64,266 3,312
Net unrealized losses on derivative instruments -1,153 -861 292
Cumulative translation adjustments -139,125 -89,626 49,499
Reference: Exchange rate March 31, 2012 March 31, 2013
US$ 1 Yen 82.19 Yen 94.05
EURO 1 Yen 109.80 Yen 120.73
17
(2) CONSOLIDATED STATEMENTS OF INCOME
(Three months ended March 31, 2012 and 2013) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2012 March 31, 2013 Change %
-----------------------------------------------------------------------------------------------------------------------------
Net sales 506,610 537,398 30,788 6.1
Cost of sales 322,246 332,199 9,953 3.1
Percentage of net sales (%) 63.6 61.8
Gross Profit 184,364 205,199 20,835 11.3
Percentage of net sales (%) 36.4 38.2
Selling, general and administrative expenses 165,424 182,248 16,824 10.2
Percentage of net sales (%) 32.7 33.9
Operating income 18,940 22,951 4,011 21.2
Percentage of net sales (%) 3.7 4.3
Other (income) expense
Interest and dividend income 1,112 1,132 20 1.8
Percentage of net sales (%) 0.2 0.2
Interest expense 2,008 2,330 322 16.0
Percentage of net sales (%) 0.4 0.4
Other, net 1,412 -146 -1,558 --
Percentage of net sales (%) 0.2 -0.0
Income before income taxes
and equity in earnings of affiliates 16,632 21,899 5,267 31.7
Percentage of net sales (%) 3.3 4.1
Provision for income taxes 6,960 5,328 -1,632 -23.4
Percentage of net sales (%) 1.4 1.0
Equity in earnings of affiliates 22 -16 -38 --
Percentage of net sales (%) 0.0 -0.0
Consolidated net income 9,694 16,555 6,861 70.8
Percentage of net sales (%) 1.9 3.1
Net income attributable to noncontrolling interests 1,069 1,390 321 30.0
Percentage of net sales (%) 0.2 0.3
Net income attributable to Ricoh Company, Ltd. 8,625 15,165 6,540 75.8
Percentage of net sales (%) 1.7 2.8
----------------------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 79.32 Yen 92.28
EURO 1 Yen 104.04 Yen 121.81
(Year ended March 31, 2012 and 2013) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2012 March 31, 2013 Change %
-----------------------------------------------------------------------------------------------------------------------------
Net sales 1,903,477 1,924,497 21,020 1.1
Cost of sales 1,150,855 1,155,896 5,041 0.4
Percentage of net sales (%) 60.5 60.1
Gross Profit 752,622 768,601 15,979 2.1
Percentage of net sales (%) 39.5 39.9
Selling, general and administrative expenses 770,690 705,167 -65,523 -8.5
Percentage of net sales (%) 40.4 36.6
Operating income (loss) -18,068 63,434 81,502 --
Percentage of net sales (%) -0.9 3.3
Other (income) expense
Interest and dividend income 3,129 3,048 -81 -2.6
Percentage of net sales (%) 0.2 0.2
Interest expense 6,979 7,377 398 5.7
Percentage of net sales (%) 0.4 0.4
Other, net 10,019 932 -9,087 -90.7
Percentage of net sales (%) 0.6 0.1
Income (loss) before income taxes
and equity in earnings of affiliates -31,937 58,173 90,110 --
Percentage of net sales (%) -1.7 3.0
Provision for income taxes 8,223 20,838 12,615 153.4
Percentage of net sales (%) 0.4 1.1
Equity in earnings of affiliates 39 31 -8 -20.5
Percentage of net sales (%) 0.0 0.0
Consolidated net income (loss) -40,121 37,366 77,487 --
Percentage of net sales (%) -2.1 1.9
Net income attributable to noncontrolling interests 4,439 4,899 460 10.4
Percentage of net sales (%) 0.2 0.2
Net income (loss) attributable to Ricoh Company, Ltd. -44,560 32,467 77,027 --
Percentage of net sales (%) -2.3 1.7
-------------------------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 79.08 Yen 83.06
EURO 1 Yen 109.05 Yen 107.08
18
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Three months ended March 31, 2012 and 2013) (Millions of yen)
--------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2012 March 31, 2013 Change
--------------------------------------------------------------------------------------------------------------------------
Consolidated net income 9,694 16,555 6,861
Other comprehensive income (loss), net of tax
Net unrealized holding gains on available-for-sale securities 2,473 5,482 3,009
Pension liability adjustments -18,574 4,154 22,728
Net unrealized gains on derivative instruments 366 540 174
Foreign currency translation adjustments 31,122 27,342 -3,780
Total other comprehensive income, net of tax 15,387 37,518 22,131
Comprehensive gain 25,081 54,073 28,992
Comprehensive income attributable to noncontrolling interests 1,019 1,694 675
Comprehensive gain attributable to Ricoh Company, Ltd. 24,062 52,379 28,317
--------------------------------------------------------------------------------------------------------------------------
Reference : Exchange rate March 31, 2012 March 31, 2013
US$ 1 Yen 79.32 Yen 92.28
EURO 1 Yen 104.04 Yen 121.81
(Year ended March 31, 2012 and 2013) (Millions of yen)
--------------------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2012 March 31, 2013 Change
--------------------------------------------------------------------------------------------------------------------------
Consolidated net income (loss) -40,121 37,366 77,487
Other comprehensive income (loss), net of tax
Net unrealized holding gains on available-for-sale securities 1,208 5,033 3,825
Pension liability adjustments -20,163 3,407 23,570
Net unrealized gains on derivative instruments 83 423 340
Foreign currency translation adjustments -15,066 49,370 64,436
Total other comprehensive income (loss), net of tax -33,938 58,233 92,171
Comprehensive gain (loss) -74,059 95,599 169,658
Comprehensive income attributable to noncontrolling interests 4,228 5,045 817
Comprehensive gain (loss) attributable to Ricoh Company, Ltd. -78,287 90,554 168,841
--------------------------------------------------------------------------------------------------------------------------
Reference : Exchange rate March 31, 2012 March 31, 2013
US$ 1 Yen 79.08 Yen 83.06
EURO 1 Yen 109.05 Yen 107.08
19
(3)-1. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Three months ended March 31, 2012 and 2013) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2012 March 31, 2013 Change %
-----------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Office Imaging 351,556 377,855 26,299 7.5
Percentage of net sales (%) 69.4 70.3
Production Printing 37,922 42,266 4,344 11.5
Percentage of net sales (%) 7.5 7.9
Network System Solutions 55,906 58,029 2,123 3.8
Percentage of net sales (%) 11.0 10.8
Imaging & Solutions Total 445,384 478,150 32,766 7.4
Percentage of net sales (%) 87.9 89.0
-----------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 23,149 22,893 -256 -1.1
Percentage of net sales (%) 4.6 4.3
-----------------------------------------------------------------------------------------------------------------
[Other]
Other 38,077 36,355 -1,722 -4.5
Percentage of net sales (%) 7.5 6.7
-----------------------------------------------------------------------------------------------------------------
Grand Total 506,610 537,398 30,788 6.1
Percentage of net sales (%) 100.0 100.0
-----------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 79.32 Yen 92.28
EURO 1 Yen 104.04 Yen 121.81
(Year ended March 31, 2012 and 2013) (Millions of yen)
------------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2012 March 31, 2013 Change %
------------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Office Imaging 1,323,263 1,329,608 6,345 0.5
Percentage of net sales (%) 69.5 69.1
Production Printing 148,564 147,040 -1,524 -1.0
Percentage of net sales (%) 7.8 7.6
Network System Solutions 199,273 208,743 9,470 4.8
Percentage of net sales (%) 10.5 10.8
Imaging & Solutions Total 1,671,100 1,685,391 14,291 0.9
Percentage of net sales (%) 87.8 87.5
------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 98,052 93,094 -4,958 -5.1
Percentage of net sales (%) 5.2 4.8
------------------------------------------------------------------------------------------------------------------
[Other]
Other 134,325 146,012 11,687 8.7
Percentage of net sales (%) 7.0 7.7
------------------------------------------------------------------------------------------------------------------
Grand Total 1,903,477 1,924,497 21,020 1.1
Percentage of net sales (%) 100.0 100.0
------------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 79.08 Yen 83.06
EURO 1 Yen 109.05 Yen 107.08
* 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
* Product Category and product lines included in Product Category was changed in
this fiscal year.
Product Category in Imaging & Solutions was reclassified as Office Imaging,
Production Printing and Network System Solutions in this fiscal year (Imaging
Solutions and Network System Solutions as previous category).
Certain products were reclassified into Network System Solutions and Industrial
Products from Other in this fiscal year.
The above reclassification was made to the prior year's figures.
20
(3)-2. CONSOLIDATED SALES BY GEOGRAPHIC AREA
(Three months ended March 31, 2012 and 2013) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2012 March 31, 2013 Change %
-----------------------------------------------------------------------------------------------------------------
[Domestic] 241,317 229,495 -11,822 -4.9
Percentage of net sales (%) 47.6 42.7
[Overseas] 265,293 307,903 42,610 16.1
Percentage of net sales (%) 52.4 57.3
The Americas 121,572 142,778 21,206 17.4
Percentage of net sales (%) 24.0 26.6
Europe, Middle East and Africa 110,013 127,400 17,387 15.8
Percentage of net sales (%) 21.7 23.7
Other 33,708 37,725 4,017 11.9
Percentage of net sales (%) 6.7 7.0
Grand Total 506,610 537,398 30,788 6.1
Percentage of net sales (%) 100.0 100.0
-----------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 79.32 Yen 92.28
EURO 1 Yen 104.04 Yen 121.81
(Year ended March 31, 2012 and 2013) (Millions of yen)
------------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2012 March 31, 2013 Change %
------------------------------------------------------------------------------------------------------------------
[Domestic] 886,425 870,397 -16,028 -1.8
Percentage of net sales (%) 46.6 45.2
[Overseas] 1,017,052 1,054,100 37,048 3.6
Percentage of net sales (%) 53.4 54.8
The Americas 468,728 496,605 27,877 5.9
Percentage of net sales (%) 24.6 25.8
Europe, Middle East and Africa 421,373 421,740 367 0.1
Percentage of net sales (%) 22.1 21.9
Other 126,951 135,755 8,804 6.9
Percentage of net sales (%) 6.7 7.1
Grand Total 1,903,477 1,924,497 21,020 1.1
Percentage of net sales (%) 100.0 100.0
-----------------------------------------------------------------------------------------------------------------
Reference : Exchange rate
US$ 1 Yen 79.08 Yen 83.06
EURO 1 Yen 109.05 Yen 107.08
*Geographic area was changed in this fiscal year.
Middle East and Africa were reclassified from Other into Europe in this fiscal
year.
The reclassification was made to the prior year's figures.
21
(4) CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Year ended March 31, 2012 (Millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
Accumulated
other Ricoh
Additional comprehensive Company, Ltd.
Common paid-in Retained income Treasury shareholders' Noncontrolling
stock capital earnings (loss) stock equity interest Total equity
--------------------------------------------------------------------------------------------------------------------------------
Beginning balance 135,364 186,083 811,082 -170,448 -36,838 925,243 52,887 978,130
--------------------------------------------------------------------------------------------------------------------------------
Comprehensive income (loss)
Net income (loss) -44,560 -44,560 4,439 -40,121
Unrealized gains (losses)
on securities 1,215 1,215 -7 1,208
Pension liability
adjustment -20,085 -20,085 -78 -20,163
Unrealized gains on
derivatives 15 15 68 83
Cumulative translation
adjustments -14,872 -14,872 -194 -15,066
----------------------------------------------
Total comprehensive income
(loss) -78,287 4,228 -74,059
----------------------------------------------
Net changes in treasury stock -279 -279 -279
Loss on disposal of treasury
stock -31 -31 -31
Dividends declared and
approved to Ricoh Company,
Ltd. shareholders -23,942 -23,942 -23,942
Dividends to noncontrolling
interests -603 -603
Wholly owned subsidiaries -198 -198
--------------------------------------------------------------------------------------------------------------------------------
Ending balance 135,364 186,083 742,549 -204,175 -37,117 822,704 56,314 879,018
================================================================================================================================
Year ended March 31, 2013 (Millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
Accumulated
other Ricoh
Additional comprehensive Company, Ltd.
Common paid-in Retained income Treasury shareholders' Noncontrolling
stock capital earnings (loss) stock equity interest Total equity
--------------------------------------------------------------------------------------------------------------------------------
Beginning balance (after
adjustment) 135,364 186,083 742,549 -204,175 -37,117 822,704 56,314 879,018
--------------------------------------------------------------------------------------------------------------------------------
Comprehensive income
Net income 32,467 32,467 4,899 37,366
Unrealized gains on
securities 4,984 4,984 49 5,033
Pension liability
adjustment 3,312 3,312 95 3,407
Unrealized gains on
derivatives 292 292 131 423
Cumulative translation
adjustments 49,499 49,499 -129 49,370
----------------------------------------------
Total comprehensive income 90,554 5,045 95,599
----------------------------------------------
Net changes in treasury stock -29 -29 -29
Loss on disposal of treasury
stock -7 -7 -7
Dividends declared and
approved to Ricoh Company,
Ltd. shareholders -15,226 -15,226 -15,226
Dividends to noncontrolling
interests -697 -697
--------------------------------------------------------------------------------------------------------------------------------
Ending balance 135,364 186,083 759,783 -146,088 -37,146 897,996 60,662 958,658
================================================================================================================================
22
(5) CONSOLIDATED STATEMENTS OF CASH FLOWS
(Year ended March 31, 2012 and 2013) (Millions of yen)
----------------------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2012 March 31, 2013
----------------------------------------------------------------------------------------------------------------------------
I. Cash Flows from Operating Activities:
Consolidated net income (loss) -40,121 37,366
Adjustments to reconcile net income (loss) to net cash provided by operating activities -
Depreciation and amortization 91,137 85,905
Equity in earnings of affiliates, net of dividends received -39 -31
Deferred income taxes -24,086 -241
Loss on impairment of long-lived assets 10,070 1,379
Loss on impairment of securities 5,012 302
Loss on impairment of goodwill 27,491 --
Pension and severance costs, less payments -5,386 -5,973
Changes in assets and liabilities -
Increase in trade receivables -20,393 -16,292
(Increase) Decrease in inventories -17,126 14,010
(Increase) Decrease in finance receivables -25,667 4,725
(Decrease) Increase in trade payables -5,096 781
Decrease in accrued income taxes and accrued expenses and other -5,623 -2,616
Other, net 21,033 5,211
----------------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 11,206 124,526
----------------------------------------------------------------------------------------------------------------------------
II. Cash Flows from Investing Activities:
Proceeds from sales of property, plant and equipment 1,532 1,712
Expenditures for tangible fixed assets -73,271 -86,569
Expenditures for intangible fixed assets -14,504 -12,226
Payments for purchases of available-for-sale securities -93 -93
Proceeds from sales of available-for-sale securities 68 208
Increase in time deposits -385 -374
Purchase of business, net of cash acquired -14,816 -2,774
Other, net -10,974 -6,351
----------------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities -112,443 -106,467
----------------------------------------------------------------------------------------------------------------------------
III. Cash Flows from Financing Activities:
Net proceeds (repayments) of debt with original maturities of three months or less 68,948 -59,046
Proceeds from debt with original maturities of more than three months 148,403 182,361
Repayments of debt with original maturities of more than three months -82,533 -191,677
Proceeds from issuance of long-term debt securities -- 20,000
Repayment of long-term debt securities -22,444 --
Dividend paid -23,942 -15,226
Payment for purchase of treasury stock -23 -39
Other, net -586 -694
----------------------------------------------------------------------------------------------------------------------------
Net cash used in (provided by) financing activities 87,823 -64,321
----------------------------------------------------------------------------------------------------------------------------
IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents -2,597 7,103
----------------------------------------------------------------------------------------------------------------------------
V. Net Decrease in Cash and Cash Equivalents -16,011 -39,159
----------------------------------------------------------------------------------------------------------------------------
VI. Cash and Cash Equivalents at Beginning of Year 172,221 156,210
----------------------------------------------------------------------------------------------------------------------------
VII. Cash and Cash Equivalents at End of Year 156,210 117,051
----------------------------------------------------------------------------------------------------------------------------
23
(6) NOTE FOR GOING CONCERN ASSUMPTION
Not applicable.
(7) SIGNIFICANT ACCOUNTING POLICIES (CONSOLIDATED)
A) CHANGES IN THE SCALE OF CONSOLIDATION AND THE APPLICATION OF THE EQUITY
METHOD FROM APRIL 1, 2012 TO MARCH 31, 2013.
Consolidated subsidiaries:
8 Additions
10 Removals
Companies accounted for by the equity method:
1 Additions
1 Removals
B) CONSOLIDATED ACCOUNTING POLICIES (SUMMARY)
a. Principles of Consolidation
The consolidated financial statements include the accounts of Ricoh and its
consolidated subsidiaries. Investments in 20% to 50% owned companies when the
Company has the ability to exercise significant influence are accounted for on
the equity basis. All significant inter-company balances and transactions have
been eliminated in consolidation.
b. Securities
In conformity with FASB Accounting Standards Codification (ASC) 320, "Debt and
Equity Securities" , securities are mainly classified as available-for-sale
securities. Available-for-sale securities are reported at fair value with
unrealized gains and losses, net of related taxes, excluded from earnings and
reported in accumulated other comprehensive income (loss).
The cost of the securities sold is computed based on the average cost of each
security held at the time of sale.
c. Inventories
Inventories are mainly stated at the lower of average cost or market. Inventory
costs include raw materials, labor and manufacturing overheads.
d. Property, Plant and Equipment
Depreciation of property, plant and equipment is computed principally by using
the straight-line depreciation method.
Certain leased buildings, machinery and equipment are accounted for as capital
leases in conformity with ASC 840 "Accounting for Leases".
e. Goodwill and Other Intangible Assets
In conformity with ASC 350, "Goodwill and Other Intangible Assets" , Goodwill
and intangible asset determined to have an indefinite useful life are not
amortized. ASC 350 requires annual impairment testing thereof.
f. Pension and Retirement Allowances Plans
The measurement of pension costs and liabilities is determined in accordance
with ASC 715, "Retirement Benefits".
g. Use of Estimates
Management of the Company has made a number of estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues and expenses,
including impairment losses of long-lived assets and the disclosures of fair
value of financial instruments and contingent assets and liabilities, to prepare
these financial statements in conformity with accounting principles generally
accepted in the United States of America. Actual results could differ from those
estimates.
24
(8) CHANGES IN SIGNIFICANT ACCOUNTING POLICIES (CONSOLIDATED)
CHANGES IN ACCOUNTING METHOD
Ricoh adopted Accounting Standards Codification TM 220 as from April 1 2012,
which was revised based on Accounting Standards Update (ASU) 2011-05 and
2011-12. ASU 2011-05 requires an entity to present net income and other
comprehensive income either in a single continuous statement or in two separate,
but consecutive, statements. This ASU also requires separate presentation in
both net income and other comprehensive income of reclassification adjustments
for items that are reclassified from other comprehensive income to net income.
ASU 2011-12 defers the effective date for only the presentation requirements
related to reclassifications in ASU 2011-05.
Ricoh has presented this requirement in two separate, but consecutive
statements. Management believes this adoption has not made a material effect on
Ricoh's consolidated financial statements.
The Company and its most of subsidiaries in Japan changed depreciation method of
property, plant and equipment from declining-balance method to straight-line
method for the period beginning after April 1, 2012. Management believes that
straight-line method is appropriate in line with future use of property, plant
and equipment.
Management believes this change has not made a material effect on Ricoh's
consolidated financial statements.
25
(9) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A) SEGMENT INFORMATION
a. Operating Segment Information
(Three months ended March 31, 2012 and 2013) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2012 March 31, 2013 Change %
-----------------------------------------------------------------------------------------------------------------
IMAGING & SOLUTIONS:
Net sales:
Unaffiliated customers 445,384 478,150 32,766 7.4
Intersegment -- -- --
Total 445,384 478,150 32,766 7.4
-----------------------------------------------------------------------------------------------------------------
Operating expenses 410,047 432,073 22,026 5.4
-----------------------------------------------------------------------------------------------------------------
Operating income 35,337 46,077 10,740 30.4
Operating income on sales in Imaging & Solutions (%) 7.9 9.6
-----------------------------------------------------------------------------------------------------------------
INDUSTRIAL PRODUCTS:
Net sales:
Unaffiliated customers 23,149 22,893 -256 -1.1
Intersegment 1,043 1,114 71 6.8
Total 24,192 24,007 -185 -0.8
-----------------------------------------------------------------------------------------------------------------
Operating expenses 23,306 24,416 1,110 4.8
-----------------------------------------------------------------------------------------------------------------
Operating income (loss) 886 -409 -1,295 --
Operating income (loss) on sales in Industrial Products (%) 3.7 -1.7
-----------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
Unaffiliated customers 38,077 36,355 -1,722 -4.5
Intersegment -- -- --
Total 38,077 36,355 -1,722 -4.5
-----------------------------------------------------------------------------------------------------------------
Operating expenses 39,786 39,257 -529 -1.3
-----------------------------------------------------------------------------------------------------------------
Operating loss -1,709 -2,902 -1,193 --
Operating loss on sales in Other (%) -4.5 -8.0
-----------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -1,043 -1,114 -71
Total -1,043 -1,114 -71 --
-----------------------------------------------------------------------------------------------------------------
Operating expenses:
Intersegment -1,043 -1,114 -71
Corporate 15,574 19,815 4,241
Total 14,531 18,701 4,170 --
-----------------------------------------------------------------------------------------------------------------
Operating loss -15,574 -19,815 -4,241 --
-----------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
Unaffiliated customers 506,610 537,398 30,788 6.1
Intersegment -- -- --
Total 506,610 537,398 30,788 6.1
-----------------------------------------------------------------------------------------------------------------
Operating expenses 487,670 514,447 26,777 5.5
-----------------------------------------------------------------------------------------------------------------
Operating income 18,940 22,951 4,011 21.2
Operating income on consolidated net sales (%) 3.7 4.3
-----------------------------------------------------------------------------------------------------------------
* Certain products were reclassified into segment "Imaging & Solutions" and
"Industrial Products" from "Other" in this fiscal year. The above
reclassification was made to the prior year's figures.
26
(Year ended March 31, 2012 and 2013) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2012 March 31, 2013 Change %
-----------------------------------------------------------------------------------------------------------------
IMAGING & SOLUTIONS:
Net sales:
Unaffiliated customers 1,671,100 1,685,391 14,291 0.9
Intersegment -- -- --
Total 1,671,100 1,685,391 14,291 0.9
-----------------------------------------------------------------------------------------------------------------
Operating expenses 1,616,132 1,547,435 -68,697 -4.3
-----------------------------------------------------------------------------------------------------------------
Operating income 54,968 137,956 82,988 151.0
Operating income on sales in Imaging & Solutions (%) 3.3 8.2
-----------------------------------------------------------------------------------------------------------------
INDUSTRIAL PRODUCTS:
Net sales:
Unaffiliated customers 98,052 93,094 -4,958 -5.1
Intersegment 4,731 4,314 -417 -8.8
Total 102,783 97,408 -5,375 -5.2
-----------------------------------------------------------------------------------------------------------------
Operating expenses 104,448 98,262 -6,186 -5.9
-----------------------------------------------------------------------------------------------------------------
Operating loss -1,665 -854 811 --
Operating loss on sales in Industrial Products (%) -1.6 -0.9
-----------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
Unaffiliated customers 134,325 146,012 11,687 8.7
Intersegment -- -- --
Total 134,325 146,012 11,687 8.7
-----------------------------------------------------------------------------------------------------------------
Operating expenses 139,083 151,282 12,199 8.8
-----------------------------------------------------------------------------------------------------------------
Operating loss -4,758 -5,270 -512 --
Operating loss on sales in Other (%) -3.5 -3.6
-----------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -4,731 -4,314 417
Total -4,731 -4,314 417 --
-----------------------------------------------------------------------------------------------------------------
Operating expenses:
Intersegment -4,731 -4,314 417
Corporate 66,613 68,398 1,785
Total 61,882 64,084 2,202 --
-----------------------------------------------------------------------------------------------------------------
Operating loss -66,613 -68,398 -1,785 --
-----------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
Unaffiliated customers 1,903,477 1,924,497 21,020 1.1
Intersegment -- -- --
Total 1,903,477 1,924,497 21,020 1.1
-----------------------------------------------------------------------------------------------------------------
Operating expenses 1,921,545 1,861,063 -60,482 -3.1
-----------------------------------------------------------------------------------------------------------------
Operating income (loss) -18,068 63,434 81,502 --
Operating income (loss) on consolidated net sales (%) -0.9 3.3
-----------------------------------------------------------------------------------------------------------------
* Certain products were reclassified into segment "Imaging & Solutions" and
"Industrial Products" from "Other" in this fiscal year. The above
reclassification was made to the prior year's figures.
27
b. Geographic Segment Information
(Three months ended March 31, 2012 and 2013) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2012 March 31, 2013 Change %
-----------------------------------------------------------------------------------------------------------------
JAPAN:
Net sales:
Unaffiliated customers 248,599 240,071 -8,528 -3.4
Intersegment 86,074 91,378 5,304 6.2
Total 334,673 331,449 -3,224 -1.0
-----------------------------------------------------------------------------------------------------------------
Operating expenses 323,660 322,458 -1,202 -0.4
-----------------------------------------------------------------------------------------------------------------
Operating income 11,013 8,991 -2,022 -18.4
Operating income on sales in Japan(%) 3.3 2.7
-----------------------------------------------------------------------------------------------------------------
THE AMERICAS:
Net sales:
Unaffiliated customers 122,028 139,938 17,910 14.7
Intersegment 966 2,070 1,104 114.3
Total 122,994 142,008 19,014 15.5
-----------------------------------------------------------------------------------------------------------------
Operating expenses 122,783 139,099 16,316 13.3
-----------------------------------------------------------------------------------------------------------------
Operating income 211 2,909 2,698 --
Operating income on sales in the Americas(%) 0.2 2.0
-----------------------------------------------------------------------------------------------------------------
EUROPE, MIDDLE EAST AND AFRICA:
Net sales:
Unaffiliated customers 106,410 122,931 16,521 15.5
Intersegment 145 201 56 38.6
Total 106,555 123,132 16,577 15.6
-----------------------------------------------------------------------------------------------------------------
Operating expenses 101,723 114,082 12,359 12.1
-----------------------------------------------------------------------------------------------------------------
Operating income 4,832 9,050 4,218 87.3
Operating income on sales in Europe(%) 4.5 7.3
-----------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
Unaffiliated customers 29,573 34,458 4,885 16.5
Intersegment 45,965 49,081 3,116 6.8
Total 75,538 83,539 8,001 10.6
-----------------------------------------------------------------------------------------------------------------
Operating expenses 72,600 79,709 7,109 9.8
-----------------------------------------------------------------------------------------------------------------
Operating income 2,938 3,830 892 30.4
Operating income on sales in Other(%) 3.9 4.6
-----------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -133,150 -142,730 -9,580
Total -133,150 -142,730 -9,580 --
-----------------------------------------------------------------------------------------------------------------
Operating expenses: -133,096 -140,901 -7,805 --
-----------------------------------------------------------------------------------------------------------------
Operating loss -54 -1,829 -1,775 --
-----------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
Unaffiliated customers 506,610 537,398 30,788 6.1
Intersegment -- -- --
Total 506,610 537,398 30,788 6.1
-----------------------------------------------------------------------------------------------------------------
Operating expenses 487,670 514,447 26,777 5.5
-----------------------------------------------------------------------------------------------------------------
Operating income 18,940 22,951 4,011 21.2
Operating income on consolidated net sales(%) 3.7 4.3
-----------------------------------------------------------------------------------------------------------------
* Geographic area was changed in this fiscal year.
Middle East and Africa were reclassified from Other into Europe in this fiscal
year.
The reclassification was made to the prior year's figures.
28
(Year ended March 31, 2012 and 2013) (Millions of yen)
-----------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2012 March 31, 2013 Change %
-----------------------------------------------------------------------------------------------------------------
JAPAN:
Net sales:
Unaffiliated customers 901,742 892,721 -9,021 -1.0
Intersegment 372,854 369,581 -3,273 -0.9
Total 1,274,596 1,262,302 -12,294 -1.0
-----------------------------------------------------------------------------------------------------------------
Operating expenses 1,293,454 1,235,391 -58,063 -4.5
-----------------------------------------------------------------------------------------------------------------
Operating income (loss) -18,858 26,911 45,769 --
Operating income (loss) on sales in Japan(%) -1.5 2.1
-----------------------------------------------------------------------------------------------------------------
THE AMERICAS:
Net sales:
Unaffiliated customers 471,805 493,733 21,928 4.6
Intersegment 3,588 7,222 3,634 101.3
Total 475,393 500,955 25,562 5.4
-----------------------------------------------------------------------------------------------------------------
Operating expenses 501,785 494,295 -7,490 -1.5
-----------------------------------------------------------------------------------------------------------------
Operating income (loss) -26,392 6,660 33,052 --
Operating income (loss) on sales in the Americas(%) -5.6 1.3
-----------------------------------------------------------------------------------------------------------------
EUROPE, MIDDLE EAST AND AFRICA:
Net sales:
Unaffiliated customers 414,742 414,707 -35 -0.0
Intersegment 1,468 718 -750 -51.1
Total 416,210 415,425 -785 -0.2
-----------------------------------------------------------------------------------------------------------------
Operating expenses 398,537 389,244 -9,293 -2.3
-----------------------------------------------------------------------------------------------------------------
Operating income 17,673 26,181 8,508 48.1
Operating income on sales in Europe(%) 4.2 6.3
-----------------------------------------------------------------------------------------------------------------
OTHER:
Net sales:
Unaffiliated customers 115,188 123,336 8,148 7.1
Intersegment 162,971 187,919 24,948 15.3
Total 278,159 311,255 33,096 11.9
-----------------------------------------------------------------------------------------------------------------
Operating expenses 270,479 298,502 28,023 10.4
-----------------------------------------------------------------------------------------------------------------
Operating income 7,680 12,753 5,073 66.1
Operating income on sales in Other(%) 2.8 4.1
-----------------------------------------------------------------------------------------------------------------
CORPORATE AND ELIMINATIONS:
Net sales:
Intersegment -540,881 -565,440 -24,559
Total -540,881 -565,440 -24,559 --
-----------------------------------------------------------------------------------------------------------------
Operating expenses: -542,710 -556,369 -13,659 --
-----------------------------------------------------------------------------------------------------------------
Operating income (loss) 1,829 -9,071 -10,900 --
-----------------------------------------------------------------------------------------------------------------
CONSOLIDATED:
Net sales:
Unaffiliated customers 1,903,477 1,924,497 21,020 1.1
Intersegment -- -- --
Total 1,903,477 1,924,497 21,020 1.1
-----------------------------------------------------------------------------------------------------------------
Operating expenses 1,921,545 1,861,063 -60,482 -3.1
-----------------------------------------------------------------------------------------------------------------
Operating income (loss) -18,068 63,434 81,502 --
Operating income (loss) on consolidated net sales(%) -0.9 3.3
-----------------------------------------------------------------------------------------------------------------
* Geographic area was changed in this fiscal year.
Middle East and Africa were reclassified from Other into Europe in this fiscal
year.
The reclassification was made to the prior year's figures.
29
B) PER SHARE DATA
(Yen)
-------------------------------------------------------------------------
March 31, 2012 March 31, 2013
-------------------------------------------------------------------------
Shareholders' equity per share 1,134.64 1,238.55
Net income per share-basic -61.42 44.78
Net income per share-diluted -61.42 --
A reconciliation of the numerator and the denominators of the basic and diluted
per share computations for income is as follows:
(Millions of yen)
-------------------------------------------------------------------------
March 31, 2012 March 31, 2013
-------------------------------------------------------------------------
Net income (loss) -44,560 32,467
Effect of dilutive securities 0 --
-------------------------------------------------------------------------
Diluted net income (loss) -44,560 32,467
-------------------------------------------------------------------------
(Shares)
-------------------------------------------------------------------------
March 31, 2012 March 31, 2013
-------------------------------------------------------------------------
Weight average common shares outstanding 725,483,319 725,062,802
Effect of dilutive securities 0 --
-------------------------------------------------------------------------
Diluted common shares outstanding 725,483,319 725,062,802
-------------------------------------------------------------------------
C) SUBSEQUENT EVENTS
Not applicable.
30
5. NON-CONSOLIDATED PERFORMANCE
(1) BALANCE SHEETS (NON-CONSOLIDATED)
March 31, 2012 and 2013
Assets (Millions of yen)
---------------------------------------------------------------------------------------------------------------
March 31, 2012 March 31, 2013 Change
---------------------------------------------------------------------------------------------------------------
Current Assets 466,274 393,858 -72,416
Cash on hand and in banks 9,436 8,306 -1,130
Notes receivable-trade 1,795 1,477 -318
Accounts receivable-trade 165,852 163,355 -2,497
Marketable securities 64,387 22,892 -41,495
Finished goods 25,890 24,367 -1,523
Raw materials 5,724 4,235 -1,489
Work-in-process 8,671 9,628 957
Supplies 9,612 10,414 802
Prepaid expenses 7,868 7,722 -146
Deferred tax assets 18,050 17,420 -630
Accounts receivable-other 22,196 18,140 -4,056
Short-term loans receivable 124,595 103,557 -21,038
Other current assets 2,221 2,360 139
Allowance for doubtful accounts -31 -23 8
Fixed Assets 668,908 716,167 47,259
Tangible Fixed Assets 130,720 136,894 6,174
Buildings 61,478 57,265 -4,213
Structures 3,289 3,017 -272
Machinery and equipment 21,066 22,276 1,210
Vehicles 7 4 -3
Tools 9,446 17,288 7,842
Land 28,339 27,588 -751
Leased assets 71 96 25
Construction in progress 7,020 9,357 2,337
Intangible Fixed Assets 44,217 40,650 -3,567
Goodwill 7,762 7,130 -632
Patent rights 1,460 1,093 -367
Leased property rights 7,278 7,226 -52
Trademark rights 1,722 1,399 -323
Software 23,343 19,958 -3,385
Leased assets 36 7 -29
Other intangible fixed assets 2,613 3,834 1,221
Long-term loans to affiliates
Investments and Other Assets 493,971 538,621 44,650
Investment securities 16,415 20,991 4,576
Affiliates' securities 319,792 370,859 51,067
Investment in affiliates 19,252 19,252 --
Long-term loans receivable 182,591 174,799 -7,792
Bankruptcy and rehabilitation debts 223 125 -98
Lease deposit 6,328 6,165 -163
Deferred tax assets 2,265 1,217 -1,048
Other investments 4,253 3,766 -487
Allowance for doubtful accounts -57,151 -58,555 -1,404
---------------------------------------------------------------------------------------------------------------
Total Assets 1,135,182 1,110,025 -25,157
---------------------------------------------------------------------------------------------------------------
Reference:
Exchange rate
March 31, 2012 March 31, 2013
US$ 1 82.19 94.05
EURO 1 109.80 120.73
31
March 31, 2012 and 2013
Liabilities (Millions of yen)
---------------------------------------------------------------------------------------------------------------
March 31, 2012 March 31, 2013 Change
---------------------------------------------------------------------------------------------------------------
Current Liabilities 263,755 273,669 9,914
Notes payable-trade 1,885 364 -1,521
Electronically Recorded Monetary Claims -- 6,665 6,665
Accounts payable-trade 116,550 96,403 -20,147
Bonds maturing within one year -- 50,000 50,000
Short-term borrowings 74,000 29,000 -45,000
Leased obligations 217 91 -126
Accounts payable-other 21,635 30,458 8,823
Accrued expenses 29,465 31,356 1,891
Accrued corporate tax 303 609 306
Advances by customers 4,895 6,313 1,418
Deposits payable 2,138 2,144 6
Accrued bonuses 7,447 9,110 1,663
Accrued directors' bonuses -- 98 98
Warranty reserve 875 724 -151
Derivative liabilities, at fair value 3,317 9,065 5,748
Other current liabilities 1,023 1,262 239
Fixed Liabilities 272,157 233,263 -38,894
Bonds 125,000 75,000 -50,000
Long-term borrowings 136,800 137,800 1,000
Leased obligations 81 90 9
Long accounts payable-other 262 77 -185
Retirement benefit obligation 4,289 7,378 3,089
Asset retirement obligations 2,092 2,116 24
Other fixed liabilities 3,631 10,800 7,169
---------------------------------------------------------------------------------------------------------------
Total Liabilities 535,912 506,933 -28,979
---------------------------------------------------------------------------------------------------------------
Net assets (Millions of yen)
---------------------------------------------------------------------------------------------------------------
March 31, 2012 March 31, 2013 Change
---------------------------------------------------------------------------------------------------------------
Stockholders' equity 594,677 595,261 584
Common Stock 135,364 135,364 --
Additional paid-in-capital 180,804 180,804 --
Legal capital reserve 180,804 180,804 --
Retained earnings 315,461 316,074 613
Legal reserve 14,955 14,955 --
Other retained earnings 300,506 301,119 613
Reserve for deferral of capital gain on property 3,453 3,341 -112
Reserve for special depreciation 351 230 -121
Reserve for social contribution 3 2 -1
General reserve 415,350 265,350 -150,000
Retained earnings brought forward -118,651 32,195 150,846
Treasury stock -36,953 -36,982 -29
Difference of appreciation and conversion 4,592 7,831 3,239
Net unrealized holding gains on securities 4,592 7,831 3,239
Total Net assets 599,269 603,092 3,823
---------------------------------------------------------------------------------------------------------------
Total Liabilities and Net assets 1,135,182 1,110,025 -25,157
---------------------------------------------------------------------------------------------------------------
32
(2) STATEMENT OF INCOME (NON-CONSOLIDATED)
For the years ended March 31, 2012 and 2013. (Millions of yen)
----------------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2012 March 31, 2013 Change (%)
----------------------------------------------------------------------------------------------------------------------
Net sales 795,471 803,861 8,390 (1.1)
Cost of sales 620,179 607,473 -12,706 (-2.0)
Percentage of net sales (%) 78.0 75.6
Gross profit 175,292 196,387 21,095 (12.0)
Percentage of net sales (%) 22.0 24.4
Selling, general and administrative expenses 207,219 197,907 -9,312 (-4.5)
Percentage of net sales (%) 26.0 24.6
Selling expenses 27,058 25,192 -1,866
General and administrative expenses 180,161 172,714 -7,447
Operating loss -31,927 -1,520 30,407 --
Percentage of net sales (%) -4.0 -0.2
Non-operating income 34,640 27,899 -6,741 (-19.5)
Percentage of net sales (%) 4.4 3.5
Interest 4,002 2,904 -1,098
Interest on securities 113 70 -43
Dividends 23,693 22,858 -835
Miscellaneous income 6,831 2,066 -4,765
Non-operating expenses 10,116 7,727 -2,389 (-23.6)
Percentage of net sales (%) 1.3 1.0
Interest 3,330 3,665 335
Interest on bonds 1,617 1,405 -212
Exchange loss 4,312 755 -3,557
Loss on disposition of fixed assets 505 865 360
Miscellaneous expenses 350 1,037 687
Ordinary income (loss) -7,402 18,650 26,052 --
Percentage of net sales (%) -0.9 2.3
Extraordinary losses 133,046 6,074 -126,972 (-95.4)
Percentage of net sales (%) 16.7 0.8
Provision of allowance for doubtful accounts of
long-term loans 56,723 1,403 -55,320
Loss on valuation of affiliates' securities 51,113 -- -51,113
Impairment of fixed assets 16,740 2,771 -13,969
Special extra retirement payments 8,469 1,899 -6,570
Income (loss) before income taxes -140,449 12,576 153,025 --
Percentage of net sales (%) -17.7 1.6
Provision for income taxes -3,635 -2,592 1,043 --
Percentage of net sales (%) -0.5 -0.3
Refund of income taxes -321 -583 -262 --
Percentage of net sales (%) -0.0 -0.1
Corporate and other tax adjustments -7,813 -95 7,718 --
Percentage of net sales (%) -1.0 -0.0
Net income (loss) -128,678 15,846 144,524 --
Percentage of net sales (%) -16.2 2.0
----------------------------------------------------------------------------------------------------------------------
Reference:
Exchange rate
Year ended Year ended
March 31, 2012 March 31, 2013
US$ 1 82.19 94.05
EURO 1 109.80 120.73
33
(3) STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (NON-CONSOLIDATED)
RESULTS FOR THE PERIOD FROM APRIL 1, 2011 TO MARCH 31, 2012 (Millions of yen)
-------------------------------------------------------------------------------------------------------------------------------
Difference of
appreciation
Stockholders' equity and conversion
-------------------------------------------------------------------------------------------
Additional Retained
paid-in-capital earnings Net
---------------------------------------------- unrealized
Legal Other Other Total holding Total
Common capital additional Legal retained Treasury stockholders' gains on Net
stock reserve paid-in-capital reserve earnings (*) stock equity securities assets
-------------------------------------------------------------------------------------------------------------------------------
Beginning balance 135,364 180,804 -- 14,955 453,157 -36,674 747,607 4,530 752,137
-------------------------------------------------------------------------------------------------------------------------------
Changes in the term
Dividends from
surplus -23,942 -23,942 -23,942
Net income -128,678 -128,678 -128,678
Purchase of treasury
stock -327 -327 -327
Disposal of treasury
stock -31 48 17 17
Net change of items
other than
stockholders' equity 62 62
-------------------------------------------------------------------------------------------------------------------------------
Total changes in the
term -- -- -- -- -152,650 -279 -152,930 62 -152,868
-------------------------------------------------------------------------------------------------------------------------------
Ending balance 135,364 180,804 -- 14,955 300,506 -36,953 594,677 4,592 599,269
-------------------------------------------------------------------------------------------------------------------------------
(*) Other retained earnings (Millions of yen)
----------------------------------------------------------------------------------------------------------------
Reserve for Retained
deferral of Reserve for Reserve for earnings Total Other
capital gain special social General brought retained
on property depreciation contribution reserve forward earnings
----------------------------------------------------------------------------------------------------------------
Beginning balance 450 411 0 430,350 21,946 453,157
----------------------------------------------------------------------------------------------------------------
Changes in the term
Dividends from surplus -23,942 -23,942
Transfer to reserve for deferral of
capital gain on property 3,164 -3,164 --
Reversal of reserve for deferral of
capital gain on property -161 161 --
Transfer to reserve for special
depreciation 25 -25 --
Reversal of reserve for special
depreciation -84 84 --
Reversal of reserve for warranty on
computer programs 94 -94 --
Transfer of reserve for social
contribution -91 91 --
Reversal of reserve for social
contribution -15,000 15,000 --
Disposal of Treasury stock -31 -31
Net income -128,678 -128,678
----------------------------------------------------------------------------------------------------------------
Total changes in the term 3,003 -59 3 -15,000 -140,597 -152,650
----------------------------------------------------------------------------------------------------------------
Ending balance 3,453 351 3 415,350 -118,651 300,506
----------------------------------------------------------------------------------------------------------------
34
RESULTS FOR THE PERIOD FROM APRIL 1, 2012 TO MARCH 31, 2013 (Millions of yen)
---------------------------------------------------------------------------------------------------------------------------------
Difference
of
appreciation
and
Stockholders' equity conversion
---------------------------------------------------------------------------------------
Additional Retained
paid-in-capital earnings Net
------------------------------------------- unrealized
Legal Other Other Total holding Total
Common capital additional Legal retained Treasury stockholders' gains on Net
stock reserve paid-in-capital reserve earnings(*) stock equity securities assets
---------------------------------------------------------------------------------------------------------------------------------
Beginning balance 135,364 180,804 -- 14,955 300,506 -36,953 594,677 4,592 599,269
---------------------------------------------------------------------------------------------------------------------------------
Changes in the term
Dividends from surplus -15,226 -15,226 -15,226
Net income 15,846 15,846 15,846
Purchase of treasury stock -39 -39 -39
Disposal of treasury stock -6 10 4 4
Net change of items other
than stockholders' equity 3,238 3,238
---------------------------------------------------------------------------------------------------------------------------------
Total changes in the term -- -- -- -- 613 -29 584 3,238 3,822
---------------------------------------------------------------------------------------------------------------------------------
Ending balance 135,364 180,804 -- 14,955 301,119 -36,982 595,261 7,831 603,092
---------------------------------------------------------------------------------------------------------------------------------
(*) Other retained earnings (Millions of yen)
------------------------------------------------------------------------------------------------------------
Reserve for Retained
deferral of Reserve for Reserve for earnings Total Other
capital gain special social General brought retained
on property depreciation contribution reserve forward earnings
------------------------------------------------------------------------------------------------------------
Beginning balance 3,453 351 3 415,350 -118,651 300,506
------------------------------------------------------------------------------------------------------------
Changes in the term
Dividends from surplus -15,227 -15,227
Reversal of reserve for deferral of
capital gain on property -112 112 --
Reversal of reserve for special
depreciation -121 121 --
Transfer of reserve for social
contribution 90 -90 --
Reversal of reserve for social
contribution -90 90 --
Reversal of general reserve -150,000 150,000 --
Disposal of Treasury stock -6 -6
Net income 15,846 15,846
------------------------------------------------------------------------------------------------------------
Total changes in the term -112 -121 0 -150,000 150,847 613
------------------------------------------------------------------------------------------------------------
Ending balance 3,341 230 2 265,350 32,195 301,119
------------------------------------------------------------------------------------------------------------
35
SIGNIFICANT ACCOUNTING POLICIES (NON-CONSOLIDATED)
1. Accounting policy for assets
(1) Inventories are stated at cost caused by profitability of inventories has
declined.
(2) Securities
Securities of subsidiaries and affiliates are stated at moving average
cost.
Other securities:
Marketable securities are marked to market based on the market price
at the end of the term and other factors (accounting for all valuation
differences with the full capital injection method; the cost of
securities sold is valued at moving average cost.)
Non-marketable securities are stated at cost based on the moving
average method.
(3) Derivatives are stated at market value.
2. Depreciation of fixed assets
(1) Tangible fixed assets
Tangible fixed assets are depreciated using the straight-line depreciation
method.
The depreciation period for our key tangible fixed assets are as follows:
Buildings: Five to fifty years
Machinery and equipment: Four to twelve years
(Change in accounting policy)
Ricoh has changed the depreciation method for tangible fixed assets from the
declining balance method to the straight-line depreciation method beginning
this fiscal year and will use this method going forward. Ricoh deemed the
change preferable due to changes in our asset portfolio caused by the
increase in business investment relating to new manufacturing technologies in
which the straight-line method will more accurately reflect the pattern of
usage and the expected benefits of such assets. The change to straight-line
depreciation has no material affect on our individual financial statements
for FY2012.
(2) Intangible fixed assets
Ricoh uses straight-line depreciation for intangible fixed assets.
With software for sale in the marketplace, however, the Company records the
larger of a depreciation based on projected sales profits or a uniform
depreciation based on a projected effective sales period for the balance. The
initially projected effective sale term is three years. With software for
internal use, the company uses straight-line depreciation on a usable period
of five to ten years.
(3) Leased assets
Finance leases for which ownership does not transfer to lessees;
Ricoh uses straight-line depreciation for Leased assets regarding Lease-term
as useful life.
In addition, Ricoh uses accounting for in a similar manner with ordinary sale
and purchase transactions, regard to Lease contracts on before April 1,2008.
3. Basis for provision of reserves
(1) Allowance for Doubtful Accounts
The allowance for doubtful accounts is provided to cover possible losses from
bad debts and represents possible individual doubtful accounts based on
historical default rates and the potential for irrecoverableness.
(2) Reserve for Accrued Bonuses
The reserve for accrued bonuses is provided by estimating the amount of
bonuses payable to employees for the current financial year under our
corporate rules for calculating such bonus payment.
(3) Reserve for Accrued Directors' Bonuses
The reserve for accrued bonuses is provided by estimating the amount of
bonuses payable to Directors for the current of financial year.
(4) Warranty reserve
To cover product after-sales service expenses, the Company calculates the
product warranty reserve based on projected service costs during warranty
terms.
(5) Reserve for Retirement Benefit Obligations
To cover projected employee benefits, the Company records the estimated
obligations at the end of current fiscal year based on projected year-end
benefit obligations and plan assets. The company uses straight-line
depreciation for actuarial gains or losses and for prior service costs over
averaged remaining employment term. (15years)
4. Hedge accounting
(1) Hedge Accounting Methods
With interest swaps, RICOH adopts exceptional treatments if it meets
necessary requirements.
(2) Hedging Instruments and Targets
Targets: Interests of long-term borrowings
Hedging Instruments: Interest swaps
(3) Hedging policies
In keeping with its internal Market Risk Management Rules, Ricoh uses
derivatives to manage the exposure of its assets and liabilities to market
fluctuations.
(4) Hedge Effectiveness
Ricoh assesses the effectiveness of hedges by analyzing the ratios of the
total market fluctuations of hedged targets and instruments.
Ricoh omits assessment of effectiveness regarding interest swaps using
exceptional treatments.
5. Consumption taxes
Consumption taxes are excluded from revenues and expenses. The refundable
consumption tax at the end of the year is included in "Other current assets",
after offsetting suspense payments and receipt of consumption taxes and etc.
6. The consolidated tax system
The consolidated tax system is applied from fiscal year 2009.
36
NOTES TO CHANGES IN SIGNIFICANT ACCOUNTING POLICIES (NON-CONSOLIDATED)
Not applicable
NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS
(BALANCE SHEETS)
-------------------------------------------------------------------------------------
March 31, 2012 March 31, 2013
-------------------------------------------------------------------------------------
1. Accumulated depreciation on tangible fixed assets 438,076 441,525
2. Guarantee obligations 25,669 29,147
(SECURITIES)
Fair values of subsidiaries and affiliates
1. Year ended March 31, 2012
(Millions of yen) Balance Sheets Fair value Difference
Securities of consolidated companies 4,229 29,231 25,001
Securities of affiliated companies 4,927 24,366 19,439
------------------------------------------------------------------------------
Total 9,156 53,597 44,440
2. Year ended March 31, 2013
(Millions of yen) Balance Sheets Fair value Difference
------------------------------------------------------------------------------
Securities of consolidated companies 4,229 39,526 35,297
Securities of affiliated companies 4,927 27,590 22,663
------------------------------------------------------------------------------
Total 9,156 67,116 57,960
(STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY)
Treasury stock
1. March 31, 2012
-------------------------------------------------------------------------------------------
Number of shares held Number of shares held
Class of shares at March 31, 2011 Increase Decrease at March 31, 2012
-------------------------------------------------------------------------------------------
Common shares (shares) 19,409,410 447,350 25,700 19,831,060
-------------------------------------------------------------------------------------------
Reason for the Changes
Increase: Purchase of odd lot shares of common stock 447,350 shares Purchase
of treasury stock
Decrease: Release of 25,700 shares of treasury stock to allow shareholders
with less than a full lot to complete their holdings
Treasury stock
2. March 31, 2013
-------------------------------------------------------------------------------------------
Number of shares held Number of shares held
Class of shares at March 31, 2012 Increase Decrease at March 31, 2013
-------------------------------------------------------------------------------------------
Common shares (shares) 19,831,060 50,005 5,403 19,875,662
-------------------------------------------------------------------------------------------
Reason for the Changes
Increase: Purchase of odd lot shares of common stock 50,005 shares Purchase
of treasury stock
Decrease: Release of 5,403 shares of treasury stock to allow shareholders
with less than a full lot to complete their holdings
37
(TAX EFFECT ACCOUNTING)
1. The prime components of deferred tax assets and liabilities are as follows:
(Millions of yen)
-----------------------------------------------------------------------------------------------
March 31, 2012 March 31, 2013
-----------------------------------------------------------------------------------------------
Deferred tax assets:
Retirement benefit obligation 10,463 11,601
Accrued bonuses 2,818 3,485
Net operating loss carried forward 15,973 9,009
Loss on valuation of securities 20,609 19,151
Depreciation and amortization 4,167 6,003
Inventory revaluation 1,035 1,276
Asset retirement obligations 742 750
Allowance for doubtful accounts 20,277 20,775
Other 5,104 9,169
Subtotal 81,188 81,219
-----------------------------------------------------------------------------------------------
Valuation allowance -48,076 -48,445
Total deferred tax assets 33,112 32,774
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
March 31, 2012 March 31, 2013
-----------------------------------------------------------------------------------------------
Deferred tax liabilities:
Retirement benefit trust establishment -5,907 -5,907
Net unrealized holding gains on securities -2,525 -4,316
Succeeded intangible asset (*) -1,837 -1,580
Removal cost in correspond to asset retirement obligations -389 -349
Reserve for deferral of capital gain on property -1,929 -1,851
Reserve for special depreciation -209 -134
Total deferred tax liabilities -12,796 -14,137
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
March 31, 2012 March 31, 2013
-----------------------------------------------------------------------------------------------
Net deferred tax assets/liabilities 20,316 18,637
Included in current assets 18,050 17,420
Included in investment and other assets 2,265 1,217
Included in fixed liabilities -- --
-----------------------------------------------------------------------------------------------
* Deferred tax liability for the non-deductible intangible asset succeeded from
Ricoh Printing Systems, Ltd.
2. Difference in normal effective statutory tax rate and effective tax rate
after applying tax effect accounting
Normal effective statutory tax rate 37.8%
(Reconciliation)
Valuation allowance 2.9
Permanently non-deductible expenses 0.8
Tax credit for foreign taxes -4.4
Permanently non-taxable income -65.4
Other 2.3
Effective tax rate -26.0%
38
-APPENDIX- YEAR ENDED MARCH 31, 2013
1. CONSOLIDATED QUARTERLY PERFORMANCE OUTLINE
(1) Financial Statements Summary (Quarterly) (Billions of yen)
-----------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q Change(%)
-----------------------------------------------------------------------------------------------------------
Net sales 459.3 458.0 469.6 537.3 6.1
Gross profit 189.8 184.5 188.9 205.1 11.3
Operating income (loss) 14.2 13.1 13.0 22.9 21.2
Income (loss) before income taxes 12.2 12.2 11.7 21.8 31.7
Net income (loss) 6.5 5.1 5.5 15.1 75.8
-----------------------------------------------------------------------------------------------------------
Net income (loss) per share (yen) 9.02 7.13 7.71 20.92 --
Net income (loss) per share-diluted (yen) 9.02 -- -- -- --
-----------------------------------------------------------------------------------------------------------
Total assets 2,243.1 2,218.5 2,343.0 2,360.6 --
Shareholders' investment 792.4 801.3 845.6 897.9 --
-----------------------------------------------------------------------------------------------------------
Shareholders' investment per share (yen) 1,092.90 1,105.21 1,166.31 1,238.55 --
-----------------------------------------------------------------------------------------------------------
Cash flows from operating activities 8.8 19.6 -0.1 96.1 --
Cash flows from investing activities -24.1 -28.4 -23.6 -30.1 --
Cash flows from financing activities 12.4 -15.8 28.7 -89.7 --
Cash and cash equivalents at end of period 148.5 122.9 134.4 117.0 --
-----------------------------------------------------------------------------------------------------------
(2) Capital expenditures and Depreciation (Billions of yen)
---------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q
---------------------------------------------------------------------------------------------------------
Capital expenditures 19.1 22.1 19.7 25.4
Depreciation for tangible fixed assets 14.7 15.9 13.9 15.9
---------------------------------------------------------------------------------------------------------
(3) R&D Expenditures (Billions of yen)
---------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q
---------------------------------------------------------------------------------------------------------
R&D expenditures 27.0 27.7 27.4 29.8
R&D expenditures / Total Sales (%) 5.9 6.0 5.8 5.5
---------------------------------------------------------------------------------------------------------
(4) Interest income (expenses) net (Billions of yen)
---------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q
---------------------------------------------------------------------------------------------------------
Interest income (expenses) net -0.6 -1.3 -1.1 -1.1
---------------------------------------------------------------------------------------------------------
(5) Exchange Rate
---------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q
---------------------------------------------------------------------------------------------------------
Exchange rate (Yen/US$) 80.23 78.64 81.27 92.28
Exchange rate (Yen/EURO) 103.06 98.29 105.43 121.81
---------------------------------------------------------------------------------------------------------
A1
2. CONSOLIDATED SALES BY PRODUCT CATEGORY
(Three months ended March 31, 2012 and 2013) (Millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Change excluding
March 31, 2012 March 31, 2013 Change % exchange impact %
--------------------------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 351,556 377,855 26,299 7.5 -5,999 -1.7
Percentage of net sales (%) 69.4 70.3
Domestic 137,382 131,053 -6,329 -4.6 -6,329 -4.6
Overseas 214,174 246,802 32,628 15.2 330 0.2
Production Printing 37,922 42,266 4,344 11.5 -79 -0.2
Percentage of net sales (%) 7.5 7.9
Domestic 8,590 8,374 -216 -2.5 -216 -2.5
Overseas 29,332 33,892 4,560 15.5 137 0.5
Network System Solutions 55,906 58,029 2,123 3.8 1,003 1.8
Percentage of net sales (%) 11.0 10.8
Domestic 51,281 47,397 -3,884 -7.6 -3,884 -7.6
Overseas 4,625 10,632 6,007 129.9 4,887 105.7
Imaging & Solutions Total 445,384 478,150 32,766 7.4 -5,075 -1.1
Percentage of net sales (%) 87.9 89.0
Domestic 197,253 186,824 -10,429 -5.3 -10,429 -5.3
Overseas 248,131 291,326 43,195 17.4 5,354 2.2
The Americas 117,073 137,938 20,865 17.8 2,560 2.2
Europe, Middle East and Africa 104,804 122,171 17,367 16.6 1,791 1.7
Other 26,254 31,217 4,963 18.9 1,003 3.8
--------------------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 23,149 22,893 -256 -1.1 -1,756 -7.6
Percentage of net sales (%) 4.6 4.3
Domestic 11,908 9,818 -2,090 -17.6 -2,090 -17.6
Overseas 11,241 13,075 1,834 16.3 334 3.0
The Americas 3,342 3,877 535 16.0 -9 -0.3
Europe, Middle East and Africa 3,304 3,680 376 11.4 -71 -2.1
Other 4,595 5,518 923 20.1 414 9.0
--------------------------------------------------------------------------------------------------------------------------------
[Other]
Other 38,077 36,355 -1,722 -4.5 -2,302 -6.0
Percentage of net sales (%) 7.5 6.7
Domestic 32,156 32,853 697 2.2 697 2.2
Overseas 5,921 3,502 -2,419 -40.9 -2,999 -50.7
The Americas 1,157 963 -194 -16.8 -356 -30.8
Europe, Middle East and Africa 1,905 1,549 -356 -18.7 -681 -35.7
Other 2,859 990 -1,869 -65.4 -1,962 -68.6
--------------------------------------------------------------------------------------------------------------------------------
Grand Total 506,610 537,398 30,788 6.1 -9,133 -1.8
Percentage of net sales (%) 100.0 100.0
Domestic 241,317 229,495 -11,822 -4.9 -11,822 -4.9
Percentage of net sales (%) 47.6 42.7
Overseas 265,293 307,903 42,610 16.1 2,689 1.0
Percentage of net sales (%) 52.4 57.3
The Americas 121,572 142,778 21,206 17.4 2,195 1.8
Percentage of net sales (%) 24.0 26.6
Europe, Middle East and Africa 110,013 127,400 17,387 15.8 1,039 0.9
Percentage of net sales (%) 21.7 23.7
Other 33,708 37,725 4,017 11.9 -545 -1.6
Percentage of net sales (%) 6.7 7.0
--------------------------------------------------------------------------------------------------------------------------------
Reference: Exchange rate
US$ 1 Yen 79.32 Yen 92.28 Yen 12.96
EURO 1 Yen 104.04 Yen 121.81 Yen 17.77
* 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
* Product Category and product lines included in Product Category was changed
in this fiscal year.
Product Category in Imaging & Solutions was reclassified as Office Imaging,
Production Printing and Network System Solutions in this fiscal year (Imaging
Solutions and Network System Solutions as previous category).
Certain products were reclassified into Network System Solutions and Industrial
Products from Other in this fiscal year.
The above reclassification was made to the prior year's figures.
* Geographic area was changed in this fiscal year.
Middle East and Africa were reclassified from Other into Europe in this fiscal
year.
The reclassification was made to the prior year's figures.
A2
(Year ended March 31, 2012 and 2013) (Millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
Year ended Year ended Change excluding
March 31, 2012 March 31, 2013 Change % exchange impact %
--------------------------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Imaging Solutions 1,323,263 1,329,608 6,345 0.5 -9,884 -0.7
Percentage of net sales (%) 69.5 69.1
Domestic 496,571 485,495 -11,076 -2.2 -11,076 -2.2
Overseas 826,692 844,113 17,421 2.1 1,192 0.1
Production Printing 148,564 147,040 -1,524 -1.0 -4,609 -3.1
Percentage of net sales (%) 7.8 7.6
Domestic 32,514 32,874 360 1.1 360 1.1
Overseas 116,050 114,166 -1,884 -1.6 -4,969 -4.3
Network System Solutions 199,273 208,743 9,470 4.8 9,715 4.9
Percentage of net sales (%) 10.5 10.8
Domestic 182,160 177,367 -4,793 -2.6 -4,793 -2.6
Overseas 17,113 31,376 14,263 83.3 14,508 84.8
Imaging & Solutions Total 1,671,100 1,685,391 14,291 0.9 -4,778 -0.3
Percentage of net sales (%) 87.8 87.5
Domestic 711,245 695,736 -15,509 -2.2 -15,509 -2.2
Overseas 959,855 989,655 29,800 3.1 10,731 1.1
The Americas 453,570 478,137 24,567 5.4 1,827 0.4
Europe, Middle East and Africa 402,762 401,457 -1,305 -0.3 6,141 1.5
Other 103,523 110,061 6,538 6.3 2,763 2.7
--------------------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 98,052 93,094 -4,958 -5.1 -6,221 -6.3
Percentage of net sales (%) 5.2 4.8
Domestic 53,357 44,561 -8,796 -16.5 -8,796 -16.5
Overseas 44,695 48,533 3,838 8.6 2,575 5.8
The Americas 12,743 14,189 1,446 11.3 768 6.0
Europe, Middle East and Africa 13,016 13,214 198 1.5 399 3.1
Other 18,936 21,130 2,194 11.6 1,408 7.4
--------------------------------------------------------------------------------------------------------------------------------
[Other]
Other 134,325 146,012 11,687 8.7 11,465 8.5
Percentage of net sales (%) 7.0 7.7
Domestic 121,823 130,100 8,277 6.8 8,277 6.8
Overseas 12,502 15,912 3,410 27.3 3,188 25.5
The Americas 2,415 4,279 1,864 77.2 1,666 69.0
Europe, Middle East and Africa 5,595 7,069 1,474 26.3 1,603 28.7
Other 4,492 4,564 72 1.6 -81 -1.8
--------------------------------------------------------------------------------------------------------------------------------
Grand Total 1,903,477 1,924,497 21,020 1.1 466 0.0
Percentage of net sales (%) 100.0 100.0
Domestic 886,425 870,397 -16,028 -1.8 -16,028 -1.8
Percentage of net sales (%) 46.6 45.2
Overseas 1,017,052 1,054,100 37,048 3.6 16,494 1.6
Percentage of net sales (%) 53.4 54.8
The Americas 468,728 496,605 27,877 5.9 4,261 0.9
Percentage of net sales (%) 24.6 25.8
Europe, Middle East and Africa 421,373 421,740 367 0.1 8,143 1.9
Percentage of net sales (%) 22.1 21.9
Other 126,951 135,755 8,804 6.9 4,090 3.2
Percentage of net sales (%) 6.7 7.1
--------------------------------------------------------------------------------------------------------------------------------
Reference: Exchange rate
US$ 1 Yen 79.08 Yen 83.06 Yen 3.98
EURO 1 Yen 109.05 Yen 107.08 Yen -1.97
* 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
* Product Category and product lines included in Product Category was changed in
this fiscal year.
Product Category in Imaging & Solutions was reclassified as Office Imaging,
Production Printing and Network System Solutions in this fiscal year (Imaging
Solutions and Network System Solutions as previous category).
Certain products were reclassified into Network System Solutions and Industrial
Products from Other in this fiscal year.
The above reclassification was made to the prior year's figures.
* Geographic area was changed in this fiscal year.
Middle East and Africa were reclassified from Other into Europe in this fiscal
year.
The reclassification was made to the prior year's figures.
A3
3. FORECAST OF CONSOLIDATED SALES BY PRODUCT CATEGORY
(Billions of yen)
---------------------------------------------------------------------------------------------------------------------------
Year ending March 31, 2014 Half year ending September 30, 2013
-------------------------- -----------------------------------
Year ended Change Change Change Change
March 31, 2013 Forecast % Forecast % Forecast % Forecast %
---------------------------------------------------------------------------------------------------------------------------
[Imaging & Solutions]
Office Imaging 1,329.6 1,458.2 9.7 1,345.8 1.2 704.7 12.5 630.0 0.6
Domestic 485.5 490.9 1.1 490.9 1.1 237.0 0.4 237.0 0.4
Overseas 844.1 967.3 14.6 854.9 1.3 467.7 19.8 393.0 0.7
Production Printing 147.0 165.3 12.4 150.3 2.2 80.3 15.6 70.3 1.3
Domestic 32.9 33.4 1.6 33.4 1.6 16.6 1.0 16.6 1.0
Overseas 114.2 131.9 15.5 116.9 2.4 63.7 20.2 53.7 1.4
Network System Solutions 208.7 223.5 7.1 219.3 5.1 108.6 6.6 106.0 4.0
Domestic 177.4 181.8 2.5 181.8 2.5 91.3 1.7 91.3 1.7
Overseas 31.4 41.7 32.9 37.5 19.7 17.3 42.6 14.7 21.4
Imaging & Solutions Total 1,685.4 1,847.0 9.6 1,715.5 1.8 893.6 12.0 806.4 1.1
Domestic 695.7 706.1 1.5 706.1 1.5 344.9 0.8 344.9 0.8
Overseas 989.7 1,140.9 15.3 1,009.4 2.0 548.7 20.5 461.5 1.3
The Americas 478.1 544.3 13.8 484.5 1.3 266.3 18.1 227.0 0.7
Europe, Middle East and Africa 401.5 465.2 15.9 407.5 1.5 217.9 22.8 179.3 1.0
Other 110.1 131.4 19.4 117.4 6.7 64.5 22.8 55.2 5.0
--------------------------------------------------------------------------------------------------------------------------
[Industrial Products]
Industrial Products 93.1 102.0 9.6 95.5 2.6 52.1 9.8 47.7 0.5
Domestic 44.6 44.5 -0.1 44.5 -0.1 23.3 -2.9 23.3 -2.9
Overseas 48.5 57.5 18.5 51.0 5.1 28.8 22.9 24.4 4.0
The Americas 14.2 16.8 18.4 15.0 5.7 8.4 22.0 7.1 3.7
Europe, Middle East and Africa 13.2 15.6 18.1 13.6 3.1 7.9 24.2 6.5 3.0
Other 21.1 25.1 18.8 22.4 5.9 12.5 22.7 10.7 5.0
--------------------------------------------------------------------------------------------------------------------------
[Other]
Other 146.0 151.0 3.4 148.8 1.9 74.3 2.6 72.8 0.5
Domestic 130.1 131.9 1.4 131.9 1.4 64.8 0.4 64.8 0.4
Overseas 15.9 19.1 20.0 16.9 6.2 9.5 20.9 8.0 1.4
The Americas 4.3 5.2 21.5 4.7 9.2 2.4 21.0 2.0 2.8
Europe, Middle East and Africa 7.1 8.5 20.2 7.4 5.3 4.1 21.6 3.4 0.1
Other 4.6 5.4 18.3 4.8 4.8 3.0 20.1 2.5 2.0
--------------------------------------------------------------------------------------------------------------------------
Grand Total 1,924.5 2,100.0 9.1 1,959.8 1.8 1,020.0 11.2 926.8 1.0
Domestic 870.4 882.5 1.4 882.5 1.4 433.0 0.5 433.0 0.5
Overseas 1,054.1 1,217.5 15.5 1,077.3 2.2 587.0 20.6 493.8 1.5
The Americas 496.6 566.3 14.0 504.2 1.5 277.1 18.3 236.2 0.8
Europe, Middle East and Africa 421.7 489.3 16.0 428.6 1.6 229.9 22.8 189.2 1.1
Other 135.8 161.9 19.3 144.5 6.5 80.0 22.7 68.4 4.9
--------------------------------------------------------------------------------------------------------------------------
* Excluding foreign exchange impact
Reference: Year ended March 31, 2013 Year ending March 31, 2014 Half year ending September 30, 2013
Exchange rate (Results) (Forecast) (Forecast)
US$ 1 Yen 83.06 Yen 95.00 Yen 95.00
EURO 1 Yen 107.08 Yen 125.00 Yen 125.00
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
A4