Ricoh 2014 Annual Report Download - page 88

Ricoh Group Sustainability Report 201487
Ricoh Group Consolidated Financial Results for Fiscal 2014
(Year ended March 31, 2014)
➤WEBSecurities Report for the fiscal year ended March 31, 2014: www.ricoh.com/IR/financial_data/sec_filings/pdf/AnnualSecuritiesReport_114th.pdf
➤WEBFY2014 Flash Report ended March 31, 2014
: www.ricoh.com/IR/financial_data/financial_result/data/26/flash_IFRS.pdf
(1) Operating Results
Consolidated sales for scal year 2014 (April 1, 2013 to March 31,
2014) increased by 16.4% to ¥2,195.6 billion compared to the
previous corresponding period. During this period, the average
exchange rates of the Japanese yen against the U.S. dollar and
theeurowere¥100.29(downby¥17.23frompreviousyear)and
¥134.47(downby¥27.39frompreviousyear)respectively.
The Japanese economy continued to maintain its gradual
recovery largely due to the depreciation of the yen and the
increase in stock prices achieved through the expansive measures
taken by the central bank and government along with the surge in
demand ahead of the April 1 consumption tax increase.
In the domestic market, sales increased in all three business
segments (Imaging & Solutions, Industrial Products and Other) and
theoveralldomesticsalesincreasedby9.7%.
As for the overseas market, the U.S. economy continued
its modest recovery, even though the outlook of the economy
remains unpredictable as the U.S. scales back its quantitative
easingprogram.TheEuropeaneconomy,althoughhaving
remissionintheEuropeandebtcrisis,isstillfacedwiththeriskof
a prolonged period of economic stagnation. China and the rest
of the emerging markets also appear to be showing signs of a
slowdown after maintaining consistently strong growth in recent
years.
Despite the challenging economic environment, the weakening
trend of the yen during the year contributed to the overall increase
in sales overseas. As for overseas sales by region, sales in the
Americasincreasedby18.6%,salesinEurope,MiddleEastand
Africa increase by 24.1% and sales in the Other region, which
includesChina,SouthEastAsiaandOceaniaincreasedby26.6%.
As a result, sales in the overseas market increased by 21.8%.
 Grossprotincreasedby16.5%to¥873.2billion,mainly
dueto an increase in sales, cost reductions and the weakening of
the yen.
Although group-wide activities to streamline costs have
contributed in controlling selling, general and administrative
expenses,theseexpenseshaveincreasedby11.4%to¥752.8
billion due to the depreciation of the yen.
As a result, operating prot increased by 63.6% to ¥120.3
billion compared to the previous corresponding period.
Finance income increased due to gain on sale of securities.
Protbeforeincometaxexpensesincreasedby73.4%to¥118.0
billion compared to the previous corresponding period.
As a result, prot attributable to owners of the parent
increasedby87.1%to¥72.8billion.
Ricoh has adopted IFRSs for reporting its consolidated
nancial statements from the scal year ended March 31, 2014,
in place of U.S. GAAP previously adopted. Thus, all amounts,
including prior year amounts for comparison of the current year
conform to IFRSs.
(2) Financial Position
A) Assets,Liabilities,andEquityatYear-End
For Assets, nance receivables increased due to increase in lease
contracts. The yen equivalent of foreign-currency-denominated
assets increased due to the weakening of the Yen. As a result, total
assets increased by ¥200.1 billion, to ¥2,591.3 billion as compared to
the previous corresponding period.
For Liabilities, the surge in demand ahead of the consumption
tax increase during the end of the scal year led to increase in trade
payables.
 Asaresult,totalliabilitiesincreasedby¥79.8billion,to¥1,496.9
billion.
 ForTotalEquity,theaccumulatedothercomprehensiveloss
decreased due primarily to the increase of cumulative translation
adjustmentsreectingexchangeuctuationfromtheendofthe
previousperiod.Asaresult,TotalEquityincreasedby¥120.3billion
from the end of the previous scal year, to ¥1,094.3 billion.
B) CashFlows
Net cash provided by operating activities increased by ¥9.5 billion to
¥146.8 billion primarily due to the increase in prot and trade and
other payables.
 Eventhoughexpendituresforproperty,plantandequipment
decreased and proceeds from sales of available-for-sale securities
increased, the acquisition cost incurred during the scal year
affected the overall net cash used in investing activities. The net
cash used in investing activities increased by ¥1.1 billion to
¥122.9 billion.
 Asaresult,freecashinowsgeneratedbyoperatingand
investing activities increased by ¥8.3 billion to ¥23.9 billion
compared to the previous corresponding period.
Net cash used in nancing activities in this period amounted
to ¥9.2 billion, primarily due to increases in repayments of bonds
and dividends paid, which were partially offset by proceeds from
interest-bearing debt.
As a result of the above, cash and cash equivalents as at end of
this scal year increased by ¥22.9 billion from the end of previous
corresponding period to ¥140.0 billion.