Ricoh 2012 Annual Report Download - page 90

Ricoh Group Sustainability Report 201289
Fiscal 2012 Results
(1) Operating Results
Consolidated net sales of Ricoh Group for the fiscal year 2012 (April
1, 2011 to March 31, 2012) decreased by 2.0% as compared to
the previous corresponding period, to ¥1,903.4 billion. Net sales
would have increased by 1.2% excluding impact of foreign currency
exchange fluctuation.
In Japan, the business environment continued to be severe
due to the impact of the Great East Japan Earthquake and the
flood in Thailand and also the sharp appreciation of the Yen. Ricoh
continued to face the severe business environment. However, signs
of improvement started to appear from latter part of the fiscal year
2012, as a result, domestic sales in the Imaging & Solutions and the
Other increased, though domestic sales in the Industrial Products
decreased from the previous corresponding period. Consequently,
overall sales in Japan increased by 1.2% as compared to the
previous corresponding period.
As for the overseas economy, in the Americas, individual
consumption and capital investment are slowly recovering and in
Asian countries including China, high growth is ongoing. However,
the situation remained uncertain due to the European debt crisis.
Ricoh continued to face a severe business environment due to the
appreciation of the Yen.
As for overseas sales by region, compared to the previous
corresponding period, sales in the Americas decreased by 9.9% due
to foreign currency exchange fluctuation (2.1%, excluding foreign
currency exchange fluctuation), sales in Europe, due to appreciation
of the Yen against the Euro, decreased by 1.6% (increased by 2.3%,
excluding foreign currency exchange fluctuation), and sales in the
other region, which includes China, South East Asia and Oceania,
increased by 7.3% (10.7%, excluding foreign currency exchange
fluctuation).
As a result, sales in the overseas market decreased by 4.5%
compared to the previous corresponding period. Excluding effects of
foreign currency fluctuations, sales overseas would have increased
by 1.2% compared to the previous corresponding period.
Gross profit decreased by 4.6% compared to the previous
corresponding period, to ¥752.6 billion due primarily to a decrease in
sales and the appreciation of the Yen, despite ongoing cost reductions.
Selling, general and administrative expenses increased by 5.4%
compared to the previous corresponding period, to ¥770.6 billion
due primarily to impairment loss of ¥37.0 billion on goodwill and
long-lived assets for the Production Printing business as well as
restructuring costs of ¥34.1 billion.
As a result, operating income sharply decreased compared to
the previous corresponding period, to ¥18.0 billion loss.
As for other (income) expenses, impairment loss on valuation of
investment securities is included and foreign exchange loss decreased.
Overview of Ricoh Group’s Financial Results for Fiscal 2012 Ended March 31, 2012
Consequently, income before income taxes decreased compared
to the previous corresponding period, to ¥31.9 billion loss.
In addition, due to the decrease in corporate tax rate, deferred
tax assets and liabilities have been recalculated. As a result, net
income (loss) attributable to Ricoh Company, Ltd. amounted to a
¥44.5 billion loss.
As for comprehensive income, comprehensive loss increased due
primarily to net loss attributable to Ricoh Company, Ltd. as well as a
decrease of pension liability adjustments and cumulative translation
adjustments.
(2) Financial Position
A) Assets, Liabilities, and Equity at Year-End
For Assets, from the end of the previous fiscal year, trade
receivables increased in Japan and Europe. In addition, inventories
increased due partly to initial stock for launch of new products in
new businesses. As a result, total assets increased by ¥33.7 billion,
to ¥2,289.3 billion.
For Liabilities, the interest-bearing debt increased due primarily
to payment for costs in a global restructuring program. Consequently,
total liabilities increased by ¥132.9 billion, to ¥1,410.3 billion.
For Total Equity, the change in retained earnings resulted from
payment for dividends and net loss attributable to Ricoh Company,
Ltd. Accumulated other comprehensive loss increased due primarily
to the fluctuation of cumulative translation adjustments reflecting
exchange fluctuation from the end of the previous period. As a
result, Total Equity decreased by ¥99.1 billion from the end of the
previous fiscal year, to ¥879.0 billion.
B) Cash Flows
Net cash provided by operating activities decreased by ¥117.4
billion from the previous corresponding period, to ¥11.2 billion due
primarily to increase of trade receivables and inventory.
Net cash used in investing activities increased by ¥20.5 billion
from the previous corresponding period, to ¥112.4 billion due
primarily to capital expenditures as well as acquisition of PENTAX
Imaging Corporation.
As a result, free cash outflows generated by operating and investing
activities amounted to ¥101.2 billion while free cash inflows amounted
to ¥36.7 billion in the previous corresponding period.
Net cash provided by financing activities in this period amounted to
¥87.8 billion due primarily to an increase of the interest-bearing debt.
As a result of the above, cash and cash equivalents as of the
end of this fiscal year decreased by ¥16.0 billion from the end of the
previous corresponding period, to ¥156.2 billion.