FY2009 Interim Financial Announcement
ended September 30, 2008
|Date :||October 28, 2008|
|Place :||LEVEL XXI TOKYO KAIKAN|
|Contents :||Mr. Zenji Miura, Corporate Executive Vice President of Ricoh Company, Ltd., explained FY2009 Interim 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.
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.
Consolidated sales of the Ricoh group decreased 2.1% year-on-year for the 6 months ended September 30, 2008. Although sales of color MFPs and printers grew both in Japan and overseas, the sales of black and white MFPs decreased drastically due to the economic slow down. Also, sales of "Industrial Products" and "Other" decreased year-on-year. Operating income decreased 23.0% y-o-y due to the economic slow down and strong yen offset profits from a sales increase of value-added products and consecutive cost reduction. Net income decreased 35.4% y-o-y.
Based on the results of the 1st half of this fiscal year, the tough economic condition and strong yen, we have revised our forecast down to 2.15 trillion yen in sales, 150 billions yen in operating income and 87 billions yen in net income for the fiscal year ending March 31, 2009. We also changed our forex forecast for the 3rd quarter and beyond as 100.00 to the dollar and 130.00 to the euro.
We have decided on a first half dividend of 18 yen per share, a 2 yen increase y-o-y.
|Q1.||Do you anticipate counter offensives from competitors related to the IKON acquisition?|
|A1.||We are always facing tough competition and that will continue for the future. Even though we assume competition will be tougher under the economic slow down, we will gain some sales expansion from this acquisition.|
|Q2.||How are you financing for the IKON acquisition?|
|A2.||We plan to borrow from bank for short term funding, then we will consider issuing bonds or other means for the long term.|
|Q3.||Will the IKON acquisition affect foreign exchange impact?|
|A3.||The business scale in the U.S. will expand through the acquisition. We expect that the forex impact against the U.S. dollar will increase after the acquisition.|
|Q4.||Why does the “other expenses” of SG&A increase compared to the previous forecast of the fiscal year ending March 2009?|
|A4.||We expect that sales promotion expenses will increase.|