|Date :||January 30, 2007
|Place :||Otemachi Sankei Plaza
Mr. Zenji Miura, CFO of Ricoh Company, Ltd., explained
FY2007 3rd Quarter results using materials below.
< Attention >
This material is prepared for the convenience of the investors who could not participate the financial results meeting. Please make sure that this material does not contain all spoken sentences.
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.
||Financial Highlights /Appendix||
|The consolidated sales of Ricoh Group increased year-on-year in all business segments and areas for the 3 months ended December 31, 2006, especially due to steady growth of color in sales of MFPs and printers both in Japan and overseas. Besides, SG&A as percentage of net sales decreased thanks to cost reduction and structural reform. Also the weak yen helped increase profit. As a result, we achieved a new record of net income for the quarter.
We raised the forecast of Operating income, Income before income taxes and Net income for the fiscal year ending March 2007 reflecting the results of the 3rd quarter. We predict an exchange rate of ¥115.00 against the U.S. dollar and of ¥145.00 against the Euro for the 4th quarter.
|Q4.||Will the profit ratio of office solution business increase thanks to expansion into the high-end printing business?|
|A4.||We aim to grow in low-end and high-end segments in addition to further growth in the office segment. The acquisition of IBM printing business is for high-end business expansion. In the high-end segment, the part of commercial printing market representing offset printing is shifting to production printing where print-on-demand business is growing. Although the part of centralized-printing is shifting to decentralized-printing in the office segment, the production printing market we aim to expand into is growing in total. This production printing segment has large print volume and consumables. Therefore we expect the profit ratio of office solution business will increase.|
|Q5.||How do you see the growth ratio of operating margin in the next fiscal year?|
|A5.||I do not comment on a number for the next fiscal year, because we are still in the planning stage. I hope that we raise the growth ratio more than that of this fiscal year. We expect the improvement of SG&A ratio to contribute gradually and new products to contribute on a full year basis. We also expect that the impact of acquisitions such as Danka Europe and IBM printing business will contribute too.|
|Q8.||Do you intend to raise ROE? Do you recognize that the improvement of balance sheet is a means to that?|
|A8.||We want to raise ROE in the longer term by expanding our business. We recognize that improving the balance sheet is one means toward that. We also recognize that share buy-back is one alternative, but it depends on the investment for business. So, I do not comment on the execution of buy-back.|