Ricoh 2006 Annual Report Download - page 20

3 . Eur ope
The economy in Europe was relatively stable, however, the com petition
in each country’s market was intensifying. Under such circumstance,
our sales of MFPs and laser printers increased and we maintained the
first place in term s of market share in the sales of office machines in
Europe. Influenced by the effects of the depreciation of the yen to euro,
the sales in Europe would have increased by 6.3% from the previous
corresponding period to ¥434.8 billion ( $3,716 m illion) .
4 . Other
In other regions including China and Asian countries, the need for
coloration and MFPs for office equipment were accelerating. Our MFPs
and laser printers, which met such customers’ needs, increased their
sales. Additionally, the demand for sem iconductor recovered. As a result,
the sales in Other increased by 13.3% to from the previous
corresponding period ¥120.8 billion ( $1,032 million) .
19 ANNUAL REPORT 2006
SALES BY GEOGRAPHIC AREA
2005 2006
Percentage of Percentage of Thousands of
Millions of Yen net sales Millions of Yen net sales U.S.Dollars
Japan ¥ 972,975 53.6% ¥ 972,076 50.8% $8,308,342
The Americas 325,597 17.9 387,412 20.2 3,311,214
Europe 408,906 22.5 434,800 22.7 3,716,239
Other 106,630 6.0 120,802 6.3 1,032,496
Total ¥1,814,108 100.0% ¥1,915,090 100.0% $16,368,291
Financial Position
As for Assets, tangible fixed assets increased due to increase of capital
expenditure, while finance receivables increased due to increase of
domestic sales. Investm ents and other assets increased as a result of
recognizing other intangible assets. Consequently, total assets
increased ¥87.5 billion to ¥2,041.1 billion ( $17,446 million) .
As for Liabilities, trade payables increased. Interest-bearing debt
decreased as a result of effective cash management in the Ricoh group.
In addition, other current liabilities increased as a result of increased
tax reserve. Accrued pension and severance costs increased. As a result,
total liabilities decreased ¥11.4 billion to ¥1,028.0 billion ( $8,787
million) .
In Shareholders’ Investment, there was no m aj or change in comm on
stock or additional paid-in capital. Retained earnings increased.
Accum ulated other com prehensive income and treasury stock increased.
As a result, total shareholders’ equity increased by ¥97.2 billion to
¥960.2 billion ( $8,207 million) .
Cash Flows
Net cash provided by operating activities increased by ¥44.0 billion from
the end of the previous corresponding period, to ¥176.8 billion ( $1,512
million) . It was a result of the fact that net income and depreciation
increased and the fact that the decrease of trade receivables and
inventories com pensated for the increase of finance receivables due to
the sales growth.
Net cash used in investing activities increased by ¥23.8 billion from the
end of the previous corresponding period, to ¥120.0 billion ( $1,026
million) , due primarily to capital investm ents to reinforce production
lines for new products and to consolidate the headquarters operations
and the R&D facilities and offices.
As a result, free cash flow generated by operating activities and
investm ent activities increased ¥20.2 billion from the previous
corresponding period to ¥56.8 billion ( $486 million) .
Outgoing cash flow was incurred for reducing interest-bearing debt by
encouraging financing between the group com panies, ¥16.1 billion
( $138 m illion) for paym ent of dividends, and ¥10.6 billion ( $91
million) for acquisition of treasury stock. As a result, the net cash used
in financing activities am ounted to ¥59.9 billion ( $513 million) .
As a result of the above, the ending balance of cash and cash
equivalents increased ¥0.1 billion from the end of the previous
corresponding period to ¥187.0 billion ( $1,599 m illion) .
Capital Expenditur es
Ricoh’s capital expenditures for the fiscal years 2004, 2005 and 2006
were ¥75.5 billion, ¥84.7 billion and ¥102.0 billion ( $871 m illion) ,
respectively. Ricoh directs a significant portion of its capital
expenditures towards digital and networking equipment, such as digital
plain paper copiers ( “PPCs”) , m ulti-functional printers ( “MFPs”) and