FY2008 Financial Announcement

ended March 31,2008

Date : April 24, 2008
Time : 6:00pm-7:00pm
Place : Otemachi Sankei Plaza
Contents : Mr. Zenji Miura, CFO of Ricoh Company, Ltd., explained FY2008 results using materials below.

< Attention >
This material is prepared for the convenience of those investors who could not participate in the financial results meeting. Please understand that this material does not contain any direct quotations from anyone at the meeting.
<br />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
 
 
 
Summary of FY2008 Results Presentation
The consolidated sales of the Ricoh group was 2,219.9 billion yen, a 7.3% year-on-year increase for the fiscal year ended March 31, 2008, due to steady growth of color MFPs and printers both in Japan and overseas. Increase of value-added products and ongoing cost reduction compensated for a decrease in profits caused by a sales downturn in the US. As a result, operating income was 181.5 billion yen, a 4.1% y-o-y increase. Net income was 106.4 billion yen, a 4.7% y-o-y decrease. This is because net income of the previous fiscal year included sales of a discontinued business. Excluding the impact of the discontinued business, net income for fiscal 2008 increased 0.2% year-on-year. We plan for a second half dividend of 17 yen per share, which translates into 33 yen per share over the full year.
We forecast 2,260.0 billion yen in net sales and 108 billion yen in net income for the fiscal year ending March 31, 2009. We expect to raise sales and income year-on-year despite the severe economic conditions. We also plan to raise dividends 4 yen to 37 yen per share for this term.
 
Q1. Why have the results of the US gone down?
 
A1. The main reason is that economic slowdown has caused a recent downturn in Ricoh's results in the US.
The other reasons are that we were between new product cycles and integrating organizations. We also lost a dealership to another company, and so on.
 
Q2. Will profits in the US recover in fiscal 2009?
 
A2. We expect they will recover gradually from the second half.
 
Q3. The sales of Office Solution during the 4th quarter was not achieved in each area. Does the reason differ by each area?
 
A3. The reason in the US is the economic slowdown.
We are not worried about Europe because sales figures appear in different months.
We forecasted aggressively for Japan based on the excellent results of previous corresponding period.
 
Q4. How do you forecast the impact of InfoPrint Solutions Company in fiscal 2009?
 
A4. As for sales and expense, InfoPrint Solutions contributes seven months for fiscal 2008 and twelve months for fiscal 2009.
We don't include profit for neither fiscal 2009 nor for fiscal 2008.
Amortization of intangible assets are also included in expense for both these years.
 
Q5. Is it getting increasingly difficult to win over large deals with global companies in the economic slowdown? Do you intend to change strategy towards global companies ?
 
A5. We do not intend to change strategy. We want to expand sales to global companies.
 
Q6. The non-hardware sales increased in fiscal 2008. Will they increase further in fiscal 2009?
 
A6. We are drawing up the strategy and we expect that it will be achieved.
 

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