|Date :||October 27, 2006
|Place :||Otemachi Sankei Plaza
Mr. Zenji Miura, CFO of Ricoh Company, Ltd., explained
FY2007 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 direct spoken quotations.
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.
|The consolidated sales of Ricoh Group increased year-on-year in the 1st half of the fiscal year ending March 2007 due to sales growth in all business segment, especially office solution business where color MFPs and printers grew steady both in Japan and overseas. As a result, we achieved a new record of net income for the first half.
We raised the sales forecast of the fiscal year ending March 2007 due to the sales impact of the acquisition of Danka Business Systems PLC’s European operations. We did not change the forecast for operating income, pre-tax profit and net income. For the third quarter and onward, we predict an exchange rate of ¥115.00 against the U.S. dollar and of ¥140.00 against the Euro.
The half-year dividend comes to 13 yen per share, up 1 yen from the last consecutive period. And we forecast a dividend for fiscal 2006 of 28 yen per share including the half-year dividend.
||Are color MFPs(multifunction printers) more profitable than black-and-white MFPs?|
||What percentage of sales currently come from global major accounts?|
||What accounted for the weak 1H sales growth rate in America?|
||Is it possible to increase operating income growth rate in the next fiscal year as compared with this fiscal year?|
||Why is the projected overseas sales growth rate for 2H higher than 1H?|
||Why can’t you disclose each growth rate for both copiers and printers?|
||Can we expect to see higher cost reduction in 2H thanks to new product effect?|
|Q1.||To what extent will European operations of Danka Business Systems PLC contribute to Ricoh's consolidated performance next fiscal year?|
|A1.||Danka's present annual sales stand at around 60 billion yen. Half of that amount already involved Ricoh; from now on the remaining half will contribute to Ricoh's consolidated results.
For the time being, we forecast no operating profit due to integration and similar expenses.
|Q2.||Are color MFPs(multifunction printers) more profitable than black-and-white MFPs?|
|A2.||Color MFPs are higher price and higher gross profit than black-and-white. On the other hand, Color MFPs mean more R&D expense and service cost. We are confident that we can operate the business efficiently and move ahead with colorization.|
|Q8.||Can we expect to see higher cost reduction in 2H thanks to new product effect?|
|A8.||We could reduce cost as expected by absorbing inflating oil prices and parts cost increases in 1H. Further cost reduction is possible when oil prices decline in 2H. We are trying to reduce costs more than the original in-house plan.|