FY2010 Interim Financial Announcement
ended September 30, 2009
|Date :||October 27, 2009|
|Place :||Otemachi Sankei Plaza|
|Contents :||Mr. Zenji Miura, Corporate Executive Vice President of Ricoh Company, Ltd., explained FY2010 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.
Summary of Interim Results Presentation
Consolidated net sales of the Ricoh Group for the first half of fiscal year 2010 decreased by 7.2% as compared to the previous corresponding period. Ricoh continued to be affected by the tough business environment. Domestic sales decreased by 12.8%. As for overseas, sales decreased by 2.6%, due mainly to continuing difficulties in the overseas economy and the appreciation of the Yen, although our effort to enhance our sales structure through the acquisition of sales channels, contributed to an increase in sales. Operating income decreased by 78.5% from the previous corresponding period. Net income attributable to Ricoh Company, Ltd. decreased by 94.7%, however, the structural reform we have been working on has begun to show a positive effect. All figures starting from the operating income down have exceeded our July forecast.
We have not revised our July business results forecast for the full fiscal year ending March 31, 2010. We also estimate a total dividend of 33 yen per share for the fiscal year ending March 31, 2010, which is the same as we announced in July.
As for exchange rates, we place the yen at 90 yen to the dollar and 130 yen to the Euro for the third quarter and beyond.
|Q1.||Please comment on the new products from the competition and recent M&A and business alliances.|
|A1.||We are constantly analyzing competitive activities. With regards to recent moves by the competition, we feel that our current strategy is correct and covers these developments. We believe our products and businesses are very competitive.|
|Q2.||Can IKON exceed the profit level they had before the integration with RICOH?|
|A2.||We believe IKON will not only increase their own profitability, but also contribute significantly to the RICOH group’s total profitability.|
|Q3.||How about the production printing business?|
|A3.||We are now in a tough business environment, where customers are reducing investment in equipment. We foresee the same scale of business as last fiscal year, however, we expect marked growth when the economy turns around.|
|Q4.||What is the RICOH advantage in production printing?|
|A4.||We are new to business. But we are learning fast. IKON and InfoPrint Solutions’ combined strength should put us in a strong position going forward.|
|Q5.||How is the profitability of Network System Solutions compared to Imaging Solutions?|
|A5.||Pursuing and expanding new services of Network System Solutions increases sales opportunities for Imaging Solutions products. We aim to raise profitability for the entire Imaging & Solutions business.|