Ricoh 2007 Annual Report Download - page 26

laser and GELJET printers exceeded last year's level in both color and
black/white product categories, bringing overall sales in the Office
Solutions segment up 16.3% over the previous corresponding period.
Sales in the Industrial Products also increased due to the favorable
performance of the thermal media business. These factors all resulted
in a 16.6% increase in sales in Europe. The increase in sales in this area
would have increased by 7.2% excluding the effects of foreign currency
fluctuations.
4. Other
Other including China, other Asian countries and Oceania generally
experienced economic evolution, with the Chinese economic
continuous rapid growth despite a slight slowdown in some areas.
Against this backdrop, the Office Solutions segment achieved higher
sales of PPCs, MFPs and laser and GELJET printers, largely for color
products, in comparison with the previous corresponding period due to
the increasing demand for color products. Sales in the Industrial
Products segment also increased due to the favorable performance of
the semiconductor business. These factors all resulted in a 10.1%
increase in overall sales in this area. The sales increase in this area
would have increased by 5.0% excluding the effects of foreign currency
fluctuations.
25 ANNUAL REPORT 2007
SALES BY GEOGRAPHIC AREA
2006 2007
Percentage of Percentage of Thousands of
Millions of Yen net sales Millions of Yen net sales U.S.Dollars
Japan ¥ 966,224 50.6% ¥ 1,002,251 48.4% $8,493,653
The Americas 387,412 20.3 426,453 20.6 3,614,008
Europe 434,800 22.8 507,158 24.5 4,297,949
Other 120,802 6.3 133,063 6.5 1,127,653
Total ¥1,909,238 100.0% ¥2,068,925 100.0% $17,533,263
*As a result of the sale of a business, the operating results from the discontinued operations have been reclassified in accordance with Statement of Financial Accounting Standards ("SFAS") No.
144, "Accounting for the Impairment or Disposal of Long-Lived Assets".
Financial Position
In assets, trade receivables, inventories and finance receivables
increased along with the expansion of business from the end of the
previous period. Cash and cash equivalents securities temporarily
increased at a high level at the end of this period in preparation for the
joint venture company to be commenced with IBM Corporation.
Investments and other assets increased due to the increase in goodwill
resulted from the acquisition of the European operations acquired from
Danka Business Systems PLC. As a result, total assets increased by
¥202.2 billion to ¥2,243.4 billion($19,012 million).
As for liabilities, trade payables and other current liabilities increased
from the end of the previous period. Despite our effort to reduce interest-
bearing debt through the enhancement of cash management in Japan,
the Americas and Europe, the financing for business investments
exceeded the reduction. As a result, total liabilities increased by ¥87.5
billion to ¥1,115.6 billion($9,454 million).
In shareholders' investment, there was no major change in common
stock or additional paid-in capital. Accumulated other comprehensive
income increased due to the increase in cumulative translation
adjustments. As a result, total shareholders' investment increased by
¥110.6 billion to ¥1,070.9 billion($9,076 million) due to the increase in
retained earnings resulting from earning profit.
Cash Flows
Net cash provided by operating activities decreased by ¥6.1 billion from
the previous corresponding period, to ¥167.2 billion($1,418 million).
While net income and depreciation and amortization increased, trade
receivables and finance receivables increased due to the business
expansion.
Net cash used in investing activities decreased by ¥4.6 billion from the
previous corresponding period, to ¥115.4 billion($978 million), due
primarily to the decrease in capital investments. Net cash used in
investing activities included the acquisition of new subsidiaries from
Danka Business Systems PLC as well as the proceeds from the sale of
discontinued operations.
As a result, free cash flow generated by operating activities and
investment activities decreased by ¥1.5 billion from the previous
corresponding period, to ¥51.8 billion($440 million).
While net cash used in financing activities was ¥59.9 billion in the
previous corresponding period, net cash provided from financing
activities was ¥9.2 billion($79 million). The increase in net cash was
due mainly to the proceeds from issuance of convertible bonds (¥55.2
billion, issued on December 7, 2006).
As a result of the above, the ending balance of cash and cash
equivalents increased by ¥68.6 billion from the end of the previous
corresponding period, to ¥255.7 billion($2,167 million).