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FY2008 1st Quarter Financial Announcement

ended June 30, 2007

Date : July 26, 2007
Time : 6:00pm-7:00pm
Place : Mazda Hall
Contents : Mr. Zenji Miura, CFO of Ricoh Company, Ltd., explained FY2008 1st quater 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.

   
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Presentation Materials
Financial Highlights Financial Highlights /Appendix
   (PDF:82.7KB)
  Presentation
   (PDF:391KB)
  Consolidated Financial Figures
   (PDF:26.7KB)
 
Summary of 1st Quarter Results Presentation

The consolidated sales of Ricoh group increased 9.4% year-on-year for the first quarter ended June 30, 2007, especially due to steady growth of color products in sales of MFPs and printers both in Japan and overseas and forex impact. Thanks to the increase of value-added products, consecutive cost reduction and weak yen effect, we achieved 14.7% y-o-y increase of operating income and 16.2% increase of net income. Even excluding the weak yen effect, we recognize that our business was steady and we could make a good start for Fiscal 2008.
We also inform that the “InfoPrint Solutions Company”, joint venture with IBM Corporation, began its operation in June as planed. The new company’s result was not included in this quarter’s income statement because the new company will be consolidated from 2nd quarter. But, this quarter’s balance sheet and cash flow statement are including expenditure for establishment of new company.
We keep our forecast 2.25 trillion yen in sales, 195 billions yen in operating income and 117 billions yen in net income for the fiscal year ending March 31, 2008, breaking a new record.
 
Q1. Why the sales growth was low in the Americas and high in Europe in 1Q?

A1. In the Americas, we recognize the reason was seasonality. We expect it will recover from 2Q. In Europe, we have been good condition since we had launched the new color MFP in last year.
 
Q2. Why the other expenditure improved significantly in 1Q?

A2. It was due to the gain of foreign exchange.
 
Q3. Why the sale of Japan will recover from second half in the FY2008 forecast?

A3. We have been strengthening sales force, improving sales efficiency and enhancing profitability in Japan. We expect the effect of these activities will appear from second half.
 
Q4. Can we expect the InfoPrint Solutions Company will increase its sales in next fiscal year?

A4. Although we have not decided the next year business plan yet, we want to grow in sales for 20-30% in next fiscal year based on the mid-term target.
 
Q5. Do you have anything that is any better or worse than expected as the establishment of the InfoPrint Solutions Company?

A5. It is not unclear because the company was just started. I think that the motivation of new company seems better than expected. And, I feel that the procedure to make the business unit to individual company is more complex than expected.
 
Q6. Operating income of 1Q was about 10% upside than company forecast. Will this trend continue in 2Q or later?

A6. Foreign exchange rate is unclear. And, the expenditure for structural reform and strategy execution will realize depends on each quarter. These are the reason why we do not revise our full-year forecast.
 
Q7. Is there any impact to dealers by the launch of Ricoh’s solution brand “Operius”?

A7. We expect to support our dealers to increase value-added sales by making a good use of “Operius.

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