RICOH imagine.change.Global

FY2006 3rd Quarter Financial Announcement

ended December 31, 2005
Date : January 30, 2006
Time : 4:30pm-6:00pm
Place : Otemachi Sankei Plaza
Contents : Mr. Zenji Miura, CFO of Ricoh Company, Ltd., explained FY2006 3rd Quarter results using materials below.
Summary of 3rd Quarter Results Presentation
Q&A Session



< Attention >
These contents are prepared for the convenience of investors who could not participate in the financial results meeting. The contents below are by way of a summary and are not word for word account. Additionally, the Company bases the estimates in this material on information currently available to management, which involves risks and uncertainties that could cause actual results to differ materially from those projected.


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Presentation Materials
Financial Highlights /Appendix Financial Highlights /Appendix
  • (PDF:67.3KB)

 
Supplement
  • (PDF:261KB)

 

 

Consolidated Financial Figures
  • (PDF:24.6KB)

 
Summary of 3rd Quarter Results Presentation

The consolidated sales and profit of Ricoh Group increased y-o-y in the 3rd quarter ended December 31, 2005 due to the steady growth of office solution business especially sales increase of color MFPs and printers both in Japan and overseas.
We revised the forecast of the fiscal year ending March 2006 based on the results of 3rd quarter. While we raised sales forecast, we revised down the forecast of operating income and pre-tax income due to the status of the programs such as integration and reorganization of bases and core operating system development. But, we did not change the forecast of net income. We also released the repurchase of shares at the same time.


 
Q&A Session

Q1.
Q2.
Q3.
Q4.
 
Q1. In the forecast for fiscal year ending March 2006, under “Others”, an item of changes in gross profit, the number is –0.7 billion yen as compared to +5 billion in the previous forecast. What is the reason for this difference?
( see page.15 of “Supplement” attached above )

A1. One reason is a decrease in profits for the measuring equipment and optical equipment business. Another involves among other things a drop in market price due to severe competition.

 
Q2. Looking at the gross profit forecast for fiscal year ending March 2006, the profit growth of “Sales, etc” and “Cost down, etc” have decreased slightly compared to the previous forecast.
Why is that? ( see page.15 of “Supplement” attached above )

A2. The change of profit growth forecast by “Sales, etc” is due primarily to changes in product mix. And the change of “Cost down, etc” is due mainly to launch costs for new products.

 
Q3. Under SG&A, expenses for three programs (Integration and reorganization of bases, IT spending for core operating system development, and enhancing sales and marketing structure) are projected at 14 billion yen for the year, as compared to 12 billion in the previous forecast. What is the reason for this increase?

A3. We forecast that IT spending for core operating system development will increase. On the other hand, expense forecast at the beginning of this fiscal year was 15 billion yen. We expect to reduce this sum by 1 billion.

 
Q4. What was the ratio of non-hardware sales among copier and MFP sales?

A4. The non-hardware ratio for the 3rd quarter was 59% in Japan, 42% overseas, and 48% in total. It is growing, in accordance with our strategy.
 

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