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FY2009 1st Quarter Financial Announcement
ended June 30, 2008
| Date : | July 25, 2008 |
| Time : | 4:30pm-5:30pm |
| Place : | TSE Hall |
| Contents : |
Mr. Daisuke Segawa, Corporate Vice President of Ricoh Company, Ltd., explained FY2009 1st quater 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. |
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| Presentation Materials |
Financial Highlights /Appendix |
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Summary of 1st Quarter Results Presentation
Consolidated sales of the Ricoh group decreased 1.6% year-on-year for the first quarter ended June 30, 2008. Although sales of color MFPs and printers grew steadily 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 in Japan. Operating income decreased 14.7% y-o-y because the strong yen offset profits through an increase of value-added products and consecutive cost reduction. Without the forex impact, we posted a slight increase in operating income y-o-y. Net income decreased 24.0% y-o-y. On the other hand, we achieved our profit forecast for the 1st quarter under tough economic conditions. We feel that all in all we made a good start to Fiscal 2009.
We are keeping to our forecast 2.26 trillion yen in sales, 180 billions yen in operaring income and 108 billions yen in net income for the fiscal year ending March 31, 2009. And we also keep our forex forecast for the 2nd quarter and after as 100.00 to dollar and 160.00 to Euro.
Consolidated sales of the Ricoh group decreased 1.6% year-on-year for the first quarter ended June 30, 2008. Although sales of color MFPs and printers grew steadily 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 in Japan. Operating income decreased 14.7% y-o-y because the strong yen offset profits through an increase of value-added products and consecutive cost reduction. Without the forex impact, we posted a slight increase in operating income y-o-y. Net income decreased 24.0% y-o-y. On the other hand, we achieved our profit forecast for the 1st quarter under tough economic conditions. We feel that all in all we made a good start to Fiscal 2009.
We are keeping to our forecast 2.26 trillion yen in sales, 180 billions yen in operaring income and 108 billions yen in net income for the fiscal year ending March 31, 2009. And we also keep our forex forecast for the 2nd quarter and after as 100.00 to dollar and 160.00 to Euro.
Q&A Session
| Q1. | Tell us about the US business |
| A1. | Economic conditions seem to have gotten gradually worse, so we are not too optimistic at this time. However, we at Ricoh see signs of recovery in sales to dealers and the completion of core IT system integration in the US in the 1st quarter. I think these factors will allow us to reap the effect of structural reform by integration of back office and so on. We continue to meet customers'needs for colorization and solution. |
| Q2. | How about Europe? |
| A2. | We see some economic slowdown signs in this quarter. Consequently our growth rate in Europe is moderate compared to the last fiscal year. However, the increase in color machine sales improved profitability and this contributed to the results of the 1st quarter. |
| Q3. | And how is Japan doing? |
| A3. | Demand is sluggish and it's difficult to expand unit placements. On the other hand, our solution proposal under "Operius" is growing more steadily than expected. We realize we can grow by expanding customer value even though it is difficult to increase unit placement. |
| Q4. | Why does the printer business grow even without the effect of InfoPrint consolidation? |
| A4. | Sales of both color and B&W printer are growing. The main reason is that the increase of installed units contributes to supply sales. This situation is the same in Japan, the US or Europe. |
| Q5. | When will you release the color MFPs overseas which were launched in Japan since June? |
| A5. | They have not been released overseas yet but will be launched in the near future. |
| Q6. | If price competition becomes more severe, will you engage in a price war? |
| A6. | Since we decide pricing while taking into account each deal's earnings, we do not follow the price down trend of our competitors. |