Ricoh 2009 Annual Report Download - page 28

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27 ANNUAL REPORT 2009
Management's Discussion and Analysis of Fiscal 2009 Results
Sales
Consolidated net sales of Ricoh Group for fiscal year 2009 (April 1,
2008 to March 31, 2009) decreased by 5.8% from the previous
corresponding period, to ¥2,091.6 billion($21,127 million). During
this period, the average yen exchange rates were ¥100.55 against
the U.S. dollar (up ¥13.85) and ¥143.74 against the euro (up
¥17.95). Sales would have increased by 1.1% excluding the effects
of foreign currency exchange fluctuations.
Sales in all the segments such as the Imaging & Solutions,
Industrial Products and Other decreased. As for the Imaging &
Solutions, while the sales of laser printers increased due to the
effort to enhance its sales structures and expand printer business
operations, the appreciation of the Yen had a negative effect
significantly. Sales in Industrial Products and Other, decreased. As
a result, domestic sales decreased by 7.6% from the previous
corresponding period, to ¥938.3 billion($9,478 million). Overseas
sales also decreased by 4.2% from the previous corresponding
period, to ¥1,153.3 billion($11,649 million). Overseas sales would
have increased by 8.5% from the previous corresponding period,
excluding the effects of foreign currency fluctuations.
Operating Income
Gross profit decreased by 7.9% from the previous corresponding
period, to ¥854.3 billion($8,629million). Gross profit as a
percentage of net sales also decreased by 1.0 percentage point as
compared to the previous corresponding period, to 40.8% because
the advantage derived from cost reduction was not enough to
offset the negative effect of the appreciation of the Yen.
While group-wide cost reduction efforts contributed to a decline in
selling, general and administrative expenses, Ricoh incurred the
expenses relating to enhancement of its sales structures,
expansion of printer business operations, and structural change.
Consequently, selling, general and administrative expenses
increased by 4.5% as compared to the previous corresponding
¥779.8 billion($7,877 million). R&D expenses decreased by ¥1.6
billion from the previous corresponding period, to ¥124.4 billion
($1,257million, 5.9% of total sales).
As a result, operating income decreased by 58.9% from the
previous corresponding period, to ¥74.5 billion($753 million).
Income before Income Taxes
The other (income) expense was due to the appreciation of the Yen
in the latter half of this year, as well as the loss on revaluation of
securities. As a result, income before income taxes decreased by
82.3% from the previous corresponding period, to ¥30.9
billion($312 million).
Net Income
Net income decreased by 93.9% from the previous corresponding
period, to ¥6.5 billion($66 million).
A year-end cash dividend of ¥15.00 per share is proposed.
Combined with the interim dividend of ¥18.00 per share, the total
dividend for the fiscal year ended March 31, 2009 will be ¥33.00
($0.33) per share.
Segment Information
CONSOLIDATED SALES BY PRODUCT LINE
1. Imaging & Solutions
Net sales in the Imaging & Solutions segment which consists of
Imaging Solutions and Network System Solutions decreased by
4.0% from the previous corresponding period, to ¥1,833.0
billion($18,515 million). The breakdown of sales for Imaging
Solutions and Network System Solutions is as shown below. The
sales would have increased by 3.7% excluding the effects of
foreign currency fluctuations.
Imaging Solutions
Sales of printers remained steady due mainly to enhancing its sales
structures and expand printer business operations. But the
economic slowdawn and the appreciation of the Yen negatively
affect. As a result, sales decreased by 6.5% from the previous
corresponding period, to ¥1,598.6 billion($16,147 million). The
sales would have increased by 1.7% excluding the effects of
foreign currency fluctuations.
Network System Solutions
Sales in this category increased by 17.2% as compared to the
previous corresponding period, to ¥234.4 billion($2,368 million).
Overseas IT service business was changed from Imaging Solutions
to Network System Solutions from this fiscal year. The effect of the
change was ¥17.7 billion($179 million).
2. Industrial Products
Net sales in the Industrial Products segment decreased by 19.9%
from the previous corresponding period, to ¥115.5 billion($1,167
million). Sales of thermal media, semiconductor devices and
electronic components decreased.