Ricoh 2010 Annual Report Download - page 38

37 ANNUAL REPORT 2010
Other:
Net sales in the Other geographic segment, which includes China,
Southeast Asia and Oceania, decreased for fiscal year 2010 by 7.4%
(or ¥19.6 billion) to ¥245.9 billion from ¥265.6 billion for fiscal year
2009. This decrease was due primarily to the decrease in exports
to other geographic segments, reflecting decreased demand for
Ricoh’s products resulting from the global economic downturn
stemming from the global financial crisis.
Operating expenses in the Others geographic segment for fiscal
year 2010 decreased by 8.4% (or ¥21.3 billion) to ¥231.6 billion
from ¥252.9 billion for fiscal year 2009. This decrease was due
primarily to the decrease in cost of sales resulting from the
decrease in exports to other geographic segments. Selling, general
and administrative expenses also decreased at a higher percentage
of decrease than the decrease in net sales due mainly to the
decrease in net sales and in ongoing operating expenditures as a
result of Ricoh’s group-wide cost reduction efforts.
As a result of the above, operating income for fiscal year 2010
increased by 13.0% (or ¥1.6 billion) to ¥14.3 billion from ¥12.6
billion for fiscal year 2009.
Liquidity and Capital Resources
Cashflows
Operating Cashflows:
For fiscal year 2010, net cash provided by operating activities
consisted primarily of depreciation and amortization of ¥98.9
billion, consolidated net income of ¥29.8 billion, a decrease in
finance receivables of ¥23.3 billion, a decrease in inventories of
¥19.5 billion, an increase in accrued income taxes and accrued
expenses and other of ¥15.5 billion and a decrease in trade
receivables of ¥5.4 billion, which were partially offset by a decrease
in trade payables of ¥10.1 billion and pension and severance costs,
less payment of ¥2.6 billion. As compared to fiscal year 2009, net
cash provided by operating activities in fiscal year 2010 increased
mainly because trade payables and consolidated net income
increased by ¥87.2 billion and ¥21.0 billion, respectively.
For fiscal year 2009, net cash provided by operating activities
consisted primarily of depreciation and amortization of ¥101.8
billion, a decrease in trade receivables of ¥37.9 billion, loss on
impairment of securities of ¥26.8 billion and net income from
continuing operations of ¥6.5 billion, which were partially offset by
a decrease in trade payables of ¥97.3 billion, accrued income taxes
and accrued expenses and other of ¥14.0 billion, deferred income
taxes of ¥5.1 billion and an increase in finance receivables of ¥3.0
billion. As compared to fiscal year 2008, net cash provided by
Americas for fiscal year 2010. This increase in sales was due mainly
to the fact that net sales generated by IKON for the full fiscal year
was consolidated into net sales in the Americas, as IKON became a
consolidated subsidiary during fiscal year 2009.
Operating expenses in the Americas for fiscal year 2010 increased
by 7.3% (or ¥39.1 billion) to ¥571.8 billion from ¥532.7 billion for
fiscal year 2009. While the consolidation of expenses of IKON
contributed to the increase in operating expenses in the Americas,
overall operating expenses increased at a lower percentage of
increase than the increase in net sales due primarily to the decrease
in ongoing operating expenditures as a result of Ricoh’s group-wide
cost reduction efforts.
As a result of the above, operating loss for fiscal year 2010
decreased by ¥14.0 billion to ¥11.8 billion from ¥25.9 billion for
fiscal year 2009.
Europe:
Sales in Europe for fiscal year 2010 decreased by 11.6% (or ¥60.5
billion) to ¥463.0 billion from ¥523.5 billion for fiscal year 2009.
This decrease in sales was due primarily to a decrease in sales of
PPCs/MFPs and laser printers reflecting a decrease in demand for
such products as a result of the global financial crisis, the debt
crisis in Dubai and Greece and the net effect of the depreciation of
the Euro relative to the Japanese Yen. Although net sales generated
by IKON, which became a consolidated subsidiary in fiscal year
2009 and whose financial figures were reflected for the full fiscal
year for the first time in fiscal year 2010, contributed to net sales in
Europe and Ricoh continued to introduce new products that met
customer demand, such factors were not sufficient to fully offset
the decrease in overall demand for Ricoh products resulting from
the global economic downturn stemming from the global financial
crisis. In addition, Ricoh lowered the sales price of certain products
to stimulate sales in the sluggish and competitive market, which
contributed to the decrease in net sales.
Operating expenses in Europe for fiscal year 2010 decreased by
14.1% (or ¥71.2 billion) to ¥432.8 billion from ¥504.1 billion for
fiscal year 2009. This decrease was due primarily to the decrease in
cost of sales resulting from the decrease in net sales. Selling,
general and administrative expenses also decreased at a higher
percentage of decrease than the decrease in net sales due mainly to
the decrease in net sales and in ongoing operating expenditures as
a result of Ricoh’s group-wide cost reduction efforts.
As a result of the above, operating income for fiscal year 2010
increased by 55.4% (or ¥10.7 billion) to ¥30.1 billion from ¥19.4
billion for fiscal year 2009.