Ricoh 2013 Annual Report Download - page 80

Ricoh Group Sustainability Report 201379
Ricoh฀Group฀Consolidated฀Financial฀Results฀for฀Fiscal฀2013
(Year฀ended฀March฀31,฀2013)
➤฀WEB฀FORM฀20-F฀Fiscal฀Year฀Ended฀March฀31,฀2013 : www.ricoh.com/IR/financial_data/sec_filings/pdf/ricoh_20-F_1303.pdf
➤฀WEB฀FY2013฀Flash฀Report฀ended฀March฀31,฀2013 : www.ricoh.com/IR/financial_data/financial_result/data/25/flash.pdf
(1) Operating Results
Consolidated฀net฀sales฀of฀Ricoh฀Group฀for฀the฀scal฀year฀2013฀
(April฀1,฀2012฀to฀March฀31,฀2013)฀increased฀by฀1.1%฀as฀compared฀
to the previous corresponding period, to ¥1,924.4 billion. Net
sales would be at the same level compared to the previous
corresponding period when excluding the impact of such foreign
currency exchange fluctuation.
The Japanese economy has shown signs of gradual
recovery with the increase in demand relating to the recovery
and restoration of the areas affected by the Great East Japan
Earthquake. However, with the strong Yen against the U.S. dollar
and the Euro during most of the year, along with the continued
worry of a global slowdown, the economic environment remained
fairly stagnant throughout the fiscal year. The higher expectations
arising from the economic recovery plans introduced by the new
cabinet has helped to weaken the Yen and increase the stock
prices during the end of 2012, but the overall economic outlook
still remains unpredictable.
Under such conditions, domestic sales in the Other segment
increased compared to the previous corresponding period due
to the additional sales contribution from Pentax Ricoh Imaging
Co., Ltd. but sales in the Imaging & Solutions segment and
the Industrial Products segment decreased from the previous
corresponding period. Overall, domestic sales decreased by 1.8%
compared to the previous corresponding period.
Outside of the domestic market, the U.S. economy is showing
signs of a modest recovery, but the European economy remains
stagnant under the prolonged European debt crisis, along with
the slowdown in growth occurring in China and the rest of the
emerging markets. These economic conditions have affected the
overseas sales of Ricoh.
As for overseas sales by region, sales in the Americas increased
by 5.9% compared to the previous corresponding period (an
increase of 0.9% excluding foreign currency exchange fluctuation)
due to the weakening trend of the Yen against the dollar that
began during the end of the year. Sales in Europe, Middle East and
Africa increased by a mere 0.1% due to the continued economic
uncertainties in the region along with the strong Yen against the
Euro (an increase of 1.9% excluding foreign currency exchange
fluctuation). Sales in Other region (which includes China, South
East฀Asia฀and฀Oceania)฀increased฀by฀6.9%฀(an฀increase฀of฀3.2%฀
excluding foreign currency exchange fluctuation). As a result,
total฀overseas฀sales฀increased฀by฀3.6%฀compared฀to฀the฀previous฀
corresponding period (an increase of 1.6% excluding foreign
currency exchange fluctuation).
Gross profit increased by 2.1% as compared to the previous
corresponding period, to ¥768.6 billion due to increase in sales
and the continued cost reduction activities implemented by the
company.
The group-wide activities to streamline costs have contributed
significantly in reducing selling, general and administrative
expenses. The decrease in impairment costs of long-lived assets
and corporate restructuring costs, as well as decrease in
goodwill impairment costs which were not incurred this fiscal
year, contributed to a decrease of 8.5% in selling, general
and administrative expenses as compared to the previous
corresponding period; to ¥705.1 billion.
As a result, operating income increased significantly to
¥63.4฀billion.
Other income and expenses have improved compared to the
previous corresponding period due to significant reduction in losses
from securities revaluation and the decrease in foreign exchange
loss. As a result, income before income taxes increased as compared
to the previous corresponding period; to ¥58.1 billion.
Consequently, net income attributable to Ricoh Company,
Ltd. increased by ¥77.0 billion as compared to the previous
corresponding฀period;฀to฀¥32.4฀billion.
Comprehensive income increased significantly, primarily
by the increase in consolidated net income and the increase in
cumulative translation adjustments.
(2) Financial Position
A) Assets, Liabilities, and Equity at Year-End
For Assets, cash and time deposits have decreased from the end of
the previous fiscal year. In addition, the weakening of the Yen against
foreign currencies during the end of the fiscal year has contributed to
the increase in our assets held in foreign currencies. As a result, total
assets฀increased฀by฀¥71.3฀billion;฀to฀¥2,360.6฀billion.
For Liabilities, repayments of debt have contributed to the
decrease in the total amount of interest-bearing debt. As a result,
total฀liabilities฀decreased฀by฀¥8.3฀billion;฀to฀¥1,402.0฀billion.
For Total Equity, the accumulated other comprehensive income
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 increased by ¥79.6 billion
from the end of the previous fiscal year; to ¥958.6 billion.
B)฀Cash฀Flows
Net฀cash฀provided฀by฀operating฀activities฀increased฀by฀¥113.3฀billion฀
from the previous corresponding period, to ¥124.5 billion due
primarily to the increase in net income and decrease in inventory.
Even though purchases of fixed assets increased, the
acquisition cost incurred in the previous fiscal year affected our
overall net cash used in investing activities. The net cash used in
investing activities decreased by ¥5.9 billion from the previous
corresponding period; to ¥106.4 billion.
As a result, free cash inflows generated by operating and
investing activities amounted to ¥18.0 billion while free cash flow
was a negative ¥101.2 billion in the previous corresponding period.
Net cash used in financing activities in this period amounted to
¥64.3฀billion฀due฀primarily฀to฀decrease฀in฀interest-bearing฀debt.
As a result of the above, cash and cash equivalents as of the
end฀of฀this฀scal฀year฀decreased฀by฀¥39.1฀billion฀from฀the฀end฀of฀
the previous corresponding period; to ¥117.0 billion.