February 4, 2021

QUARTERLY REPORT

Third Quarter ended December 31, 2020

(Results for the Period from April 1, 2020 to December 31, 2020)

Performance Outline (Consolidated)

(1) Nine months ended December 31, 2019 and 2020 (Actual result) and Year ending March 31, 2021 (Forecast)

(Billions of yen)

Nine months

Nine months

ended

ended

December 31,

December 31,

Change

2019

2020

Results

Results

Domestic sales

637.1

516.7

(18.9%)

Overseas sales

856.7

676.2

(21.1%)

Sales

1,493.8

1,193.0

(20.1%)

Gross profit

549.3

415.7

(24.3%)

Operating profit (loss)

69.4

(29.7)

-

Profit (loss) before income tax expenses

68.4

(25.6)

-

Profit (loss) attributable to owners of the

41.4

(22.4)

-

parent

Exchange rate (Yen/US$)

108.73

106.09

(2.64)

Exchange rate (Yen/EURO)

121.11

122.36

1.25

Earnings per share attributable to owners of

57.23

(31.02)

(88.25)

the parent-basic (yen)

Earnings per share attributable to owners of

57.23

(31.02)

(88.25)

the parent-diluted (yen)

Cash flows from operating activities

58.8

72.6

13.8

Cash flows from investing activities

(125.2)

(45.4)

79.7

Cash flows from financing activities

57.3

34.7

(22.5)

Cash and cash equivalents at end of period

229.2

325.8

96.6

Capital expenditures *

61.0

29.9

(31.0)

Depreciation *

48.5

34.2

(14.3)

R&D expenditures

75.6

66.1

(9.5)

March 31, 2020

December 31,

Change

2020

Year ending

March 31, Change 2021

Forecast

729.0 (16.4%)

935.0 (17.7%)

1,664.0 (17.2%)

563.6 (21.9%)

(49.0)

-

(44.3)

-

(36.4)

-

105.82 (2.98)

121.77 0.87

(50.25) (104.83)

(50.25)

(104.83)

-

-

-

-

-

-

-

-

48.0

(38.5)

46.0

(16.5)

92.5

(10.2)

Total assets

2,867.6

1,846.8

(1,020.7)

Equity attributable to owners of the parent

920.3

897.8

(22.4)

Interest-bearing debt **

179.6

242.2

62.6

Equity attributable to owners of the parent

32.1

48.6

16.5

ratio (%)

Equity per share attributable to owners of

1,270.47

1,239.42

(31.05)

the parent (yen)

*The amounts presented in capital expenditures and depreciation are for property, plant and equipment. **The amounts are shown bonds and borrowings.

1

(2) Three months ended December 31, 2019 and 2020

(Billions of yen)

Three months ended

Three months ended

December 31, 2019

December 31, 2020

Change

Results

Results

Domestic sales

207.5

181.3

(12.6%)

Overseas sales

291.5

249.7

(14.3%)

Sales

499.1

431.1

(13.6%)

Gross profit

181.9

153.3

(15.8%)

Operating profit (loss)

20.7

0.8

(95.8%)

Profit (loss) before income tax expenses

21.6

3.8

(82.0%)

Profit (loss) attributable to owners of the

12.2

(0.2)

-

parent

Exchange rate (Yen/US$)

108.76

104.47

(4.29)

Exchange rate (Yen/EURO)

120.39

124.49

4.10

Earnings per share attributable to owners of

16.86

(0.38)

(17.24)

the parent-basic (yen)

Earnings per share attributable to owners of

16.86

(0.38)

(17.24)

the parent-diluted (yen)

Capital expenditures *

22.8

7.4

(15.3)

Depreciation *

16.0

11.3

(4.7)

R&D expenditures

24.0

21.1

(2.8)

*The amounts presented in capital expenditures and depreciation are for property, plant and equipment.

Ricoh Company, Ltd.

  • The result forecasts and forward-looking statements included in this document are based on information available to the Company as at the date of submission of this quarterly report and certain assumptions that the Company considers reasonable. The Company makes no guarantees with respect to the achievement of its result forecasts or forward-looking statements. Actual results might be significantly different from the forecasts in the document, depending on various factors. For the assumptions for forecast and other related information, please refer to "3. Qualitative Information on Forecasted Consolidated Financial Results" on page 6.

2

Ricoh Company, Ltd. and its Consolidated Subsidiaries

Financial Highlights for the Nine months ended December 31, 2020 [Prepared on the basis of International Financial Reporting Standards]

1. Results for the Period from April 1, 2020 to December 31, 2020

(1) Operating Results

(Millions of yen)

Nine months ended

Nine months ended

December 31, 2019

December 31, 2020

Sales

1,493,882

1,193,071

(% change from the previous corresponding period)

0.3

(20.1)

Operating profit (loss)

69,415

(29,738)

(% change from the previous corresponding period)

(12.3)

-

Profit (loss) before income tax expenses

68,468

(25,614)

(% change from the previous corresponding period)

(11.0)

-

Profit (loss) for the period

46,093

(22,474)

(% change from the previous corresponding period)

(16.2)

-

Profit (loss) attributable to owners of the parent

41,469

(22,471)

(% change from the previous corresponding period)

(18.1)

-

Comprehensive income (loss)

35,218

(7,682)

(% change from the previous corresponding period)

(23.5)

-

Earnings per share attributable to owners of the parent-basic (yen)

57.23

(31.02)

Earnings per share attributable to owners of the parent-diluted (yen)

57.23

(31.02)

Notes: Earnings per share attributable to owners of the parent (basic and diluted) are based on profit (loss) attributable to owners of the parent.

(2) Financial Position

(Millions of yen)

March 31, 2020

December 31, 2020

Total assets

2,867,645

1,846,889

Total equity

1,008,527

901,395

Equity attributable to owners of the parent

920,371

897,877

Equity attributable to owners of the parent ratio (%)

32.1

48.6

2. Dividend Information

Year ended

Year ending

March 31, 2020

March 31, 2021

(Actual)

(Forecast)

Cash dividends, applicable to the year (yen)

26.00

15.00

Interim (yen)

13.00

7.50

Year-end (yen)

13.00

7.50

Notes: Revision of expected dividends during this period: No

3. Forecast of Operating Results from April 1, 2020 to March 31, 2021

(Millions of yen)

Year ending

March 31, 2021

Sales

1,664,000

(% change from the previous corresponding period)

(17.2)

Operating profit (loss)

(49,000)

(% change from the previous corresponding period)

-

Profit (loss) before income tax expenses

(44,300)

(% change from the previous corresponding period)

-

Profit (loss) for the period

(36,400)

(% change from the previous corresponding period)

-

Profit (loss) attributable to owners of the parent

(36,400)

(% change from the previous corresponding period)

-

Earnings per share attributable to owners of the parent-basic (yen)

(50.25)

Notes: Revision of forecast of consolidated operating results during this period: Yes

4. Others

  1. Changes in significant subsidiaries: Yes New: - (Company name: - )
    Exclusion: 1 (Company name: Ricoh Leasing Co., Ltd.)
  2. Changes in accounting policies and accounting estimate
    1. Changes in accounting policies required by IFRS: No
    2. Other changes: No
    3. Changes in accounting estimate: No
  3. Number of common stock outstanding (including treasury stock):
    As of December 31, 2020: 744,912,078 shares; As of March 31, 2020: 744,912,078 shares
  4. Number of treasury stock:

As of December 31, 2020: 20,477,130 shares; As of March 31, 2020: 20,478,528 shares

  1. Average number of common stock:

Nine months ended December 31, 2020: 724,434,296 shares; Nine months ended December 31, 2019: 724,649,453 shares Notes: The Company has established the Board Incentive Plan trust in which beneficiaries include Directors and Executive Officers. The shares owned by the trust account relating to this trust are accounted for as treasury shares. (As of December 31, 2020: 415,800 shares; As of March 31, 2020: 421,500 shares)

3

Qualitative Information on Consolidated Financial Results for the Quarter under Review 1. Qualitative Information on Consolidated Business Results

* Overview of the Third Quarter of Fiscal 2020 (April 1 - December 31, 2020)

The fiscal year of 2020 has started in a global pandemic called the Coronavirus (hereinafter, COVID-19). Ricoh has positioned ourselves, during this period, to tackle the crisis and accelerate change. Ricoh is proceeding to secure enough liquidity to overcome operational fluctuations, enhance our financial stability, and accelerate efforts to change in the aftermath of the pandemic of COVID-19.

The global economy has suffered a sharp slowdown, the worst level in the past few decades, due to the impact of the prolonged U.S. -China trade frictions as well as the global spread of COVID-19. Although there were signs of gradual recovery for economic activity in each country, the future still remains uncertain under the impact of COVID-19.

In Japan, the economy deteriorated rapidly due to the increase of self-isolation and movement restrictions encouraged by the declaration of the state of emergency in April. The situation is still severe due to the rapid increase of infected person, despite the sign of recovery following the resumption of the economic activity. In the Americas, the economy has been on a recovery trend due to economic measures and the resumption of economic activities, but the pace of economic recovery has been slow with the uncertainty such as the spread of infection and the impact of the change of the US administration. In Europe, the pace of recovery is still slow since the spread of COVID-19 did not stop and caused lockdown again. In other regions, the Chinese economy continues to recover despite the impact of U.S.-China trade frictions.

During this period, the average exchange rates of Japanese yen against U.S. dollar and Euro were ¥106.09 (decreased by ¥2.64 from the previous corresponding period) and ¥122.36 (increased by ¥1.25 from the previous corresponding period) respectively.

Sales in the last nine months has decreased by 20.1% (to ¥1,193.0 billion) compared to the previous corresponding period. In the Office Printing, sales of hardware decreased due to restrictions on sales activities by lockdowns and self- isolation. Sales of non-hardware also decreased due to the decline in demand of printing caused by the decrease in attendance rate (mainly in Europe and the Americas). These effects peaked in April to May, and a recovery trend has been seen since June, but the recovery has been moderate. Other factors in reduced sales included the adoption of equity method accounting for Ricoh Leasing Co., Ltd. (hereinafter, Ricoh Leasing) whose shares were transferred. As a result of that, sales decreased significantly compared to the previous corresponding period. Consolidated sales would have decreased by 17.2% after excluding the equity method adoption and foreign exchange impacts.

In Japan, sales have decreased by 18.9% as compared to the previous corresponding period. Despite the increase in online demand due to companies promoting working from home, hardware and non-hardware sales have declined as the sales opportunities have been limited due to the self-isolation and the decrease of the printing demand at customers' offices.

Sales in the Americas decreased by 29.3% (a decrease of 27.6% excluding foreign currency exchange fluctuations) as compared to the previous corresponding period. The decrease was mainly in the Office Printing due to the stagnation of sales and delivery activities by lockdowns, movement restrictions and slowing in demand of printing by the closing of customers' offices. Sales in Europe, the Middle East, and Africa decreased by 12.4% (a decrease of 13.3% excluding foreign currency exchange fluctuations) as compared to the previous corresponding period. Although Office Service sales expanded due to the strengthening of sales and service systems including acquisitions, Office Printing sales have decreased by the same reason as the Americas. Sales in other regions were down by 16.9% (a decrease of 15.4% excluding foreign currency exchange fluctuations) as compared to the previous corresponding period mainly due to decline of sales in the Office Printing.

As a result, sales in the overseas market decreased by 21.1% as compared to the previous corresponding period. Excluding effects of foreign currency fluctuations, sales in overseas would have decreased by 20.3% as compared to the previous corresponding period.

Gross profit was down by 24.3% as compared to the previous corresponding period, to ¥415.7 billion. A prime factor was a decrease in sales volume of hardware and non-hardware such as consumables in the Office Printing due to decline of business opportunities by COVID-19 pandemic. Other factors that reduced the profit included an impact of adoption of equity-method accounting for Ricoh Leasing in the other segment.

Selling, general and administrative expenses fell by 8.3% as compared to the previous corresponding period, to ¥447.0 billion despite an impairment loss of ¥7.7 billion recognized on property, plant and equipment and intangible assets in Commercial Printing segment. This stemmed from the implementation of urgent measures to reduce expenses and the reduction in expenses generated in connection with sales under the circumstances of the spread of COVID-19.

Other income decreased compared to the previous corresponding period primarily due to gain on sales of land, buildings and structures in Ricoh Industry Co., Ltd.'s former Saitama plant in the previous corresponding period.

Impairment of goodwill was a loss of ¥2.6 billion on goodwill in the Commercial Printing segment.

Operating profit (loss) decreased by ¥99.1 billion compared to the previous corresponding period, to ¥29.7 billion (loss).

Finance income and costs improved as compared to the previous corresponding period due to a decrease in interest expenses and an increase of foreign exchange gains.

Profit (loss) before income tax expenses decreased by ¥94.0 billion as compared to the previous corresponding period, to ¥25.6 billion (loss).

Income tax expenses decreased by ¥25.5 billion as compared to the previous corresponding period due to a decrease in profit (loss) before income tax expenses.

As a result, profit (loss) attributable to owners of the parent decreased by ¥63.9 billion as compared to the previous corresponding period, to ¥22.4 billion (loss).

Comprehensive income (loss) was ¥7.6 billion (loss) due to the decrease in profit for the period.

4

* Review by Business Segment

Office Printing

Office Printing sales were ¥593.5 billion and decreased by 22.7% as compared to the previous corresponding period (a decrease of 22.2% excluding foreign currency exchange fluctuations). It was mainly due to a decrease in sales volume of hardware and consumables revenues because of the lockdowns, movement restrictions and a decrease in demand of printing by the decrease in attendance rate, particularly in Europe and the Americas, although the recovery continued after bottoming out in the first quarter of fiscal 2020 and the effects of contingency plan were evident, returning to profit in the third quarter of fiscal 2020.

In addition, operating profit of previous corresponding period included gain on sales of land, buildings and structures in Ricoh Industry Co., Ltd.'s former Saitama plant.

As a result, Office Printing operating profit was ¥6.1 billion and decreased by 91.6% as compared to the previous corresponding period.

Office Service

Office Service sales were ¥358.2 billion and decreased by 10.0% as compared to the previous corresponding period (a decrease of 9.8% excluding foreign currency exchange fluctuations). In Japan, application for working from home has increased, and sales of IT services expanded in Europe. On the other hand, the IT equipment demanded in the previous fiscal year in Japan has decreased, and BPS (Business Process Service) sales decreased due to the lockdowns, movement restrictions mainly in the Americas. In the three-month period ended December 31, 2020, sales of packaged products have increased steadily, particularly in Japan and Europe, and profits increased from the previous corresponding period.

As a result, Office Service operating profit was ¥20.8 billion and decreased by 4.4% as compared to the previous corresponding period.

Commercial Printing

Commercial Printing sales were ¥98.1 billion and decreased by 26.4% as compared to the previous corresponding period (a decrease of 25.6% excluding foreign currency exchange fluctuations). Although the non-hardware business has been recovering due to the resumption of customer events and business activities, the recovery of hardware has been slow, resulting in a decline in sales. Due to the recognition of impairment loss on fixed assets such as a goodwill in addition to the decrease in gross profit caused by the reduction of sales, Commercial Printing operating profit (loss) was ¥3.0 billion (loss) and decreased by ¥19.8 billion as compared to the previous corresponding period.

Industrial Printing

Industrial Printing sales were ¥16.6 billion and decreased by 6.6% as compared to the previous corresponding period (a decrease of 5.9% excluding foreign currency exchange fluctuations). Although inkjet head demand in the Chinese market is on a recovery trend, business activities of Europe and the Americas customers have declined, and it resulted in significant decrease in sales opportunities. Industrial Printing operating profit (loss) was ¥2.0 billion (loss). (Operating loss of the previous corresponding period was ¥2.9 billion.)

Thermal Media

Thermal Media sales were ¥42.4 billion and decreased by 11.3% as compared to the previous corresponding period (a decrease of 10.5% excluding foreign currency exchange fluctuations), due to reduction in demand for events and transportation tickets by the lockdowns, movement restrictions and the reduction of the label area despite increased demand for e-commerce. Thermal Media operating profit was ¥1.5 billion and decreased by 46.1% as compared to the previous corresponding period, despite of the reduction activities in cost of sales and expenses.

Other

Other segment sales were ¥83.9 billion and decreased by 34.9% as compared to the previous corresponding period (a decrease of 34.8% excluding foreign currency exchange fluctuations). A prime factor was the adoption of equity method accounting for Ricoh Leasing. Other segment operating profit (loss) was ¥16.0 billion (loss). (Operating loss of the previous corresponding period was ¥1.9 billion.)

  • Some of the business in the Office Service segment have been reclassified into the Office Printing segment and Other segment from this fiscal year. In addition, some corporate expenses have been allocated to the relevant segments. Prior year comparative figures have also been reclassified to conform to the current year's presentation.

2. Analysis of Consolidated Financial Position

*Assets, Liabilities and Equity

Total assets decreased by ¥1,020.7 billion as compared to the end of the previous fiscal year, to ¥1,846.8 billion. At a meeting in March 2020, the Board of Directors of Ricoh agreed to sell a portion of Ricoh's shares in Ricoh Leasing to Mizuho Leasing Company, Ltd. (referred to as "Mizuho Leasing"). Therefore, in accordance with IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations", Ricoh reclassified assets and liabilities owned by Ricoh Leasing and its subsidiaries to "Assets classified as held for sale" and "Liabilities directly related to assets held for sale" in previous fiscal year. As of April 23, 2020, Ricoh concluded the partial transfer of common shares in Ricoh Leasing to Mizuho Leasing. As a result of the share transfer, Ricoh's voting rights in Ricoh Leasing changed to the ownership ratio of 33.7%, and Ricoh Leasing moved from being a consolidated subsidiary of Ricoh to an equity-method affiliate. As a result, assets classified as held for sale decreased with the completion of the partial transfer of Ricoh Leasing shares, while the remaining investment on Ricoh Leasing was booked on investments accounted for using the equity method.

Total liabilities decreased by ¥913.6 billion as compared to the end of previous fiscal year, to ¥945.4 billion. While bonds and borrowings increased mainly due to procure in preparation for the risk of business environment deterioration because of COVID-19, a decrease in liabilities directly related to assets held for sale resulted from the partial transfer of common shares in Ricoh Leasing.

Total equity decreased by ¥107.1 billion as compared to the end of previous fiscal year, to ¥901.3 billion. As a result of the spread of COVID-19, Ricoh posted a quarterly loss and reduced retained earnings, while Ricoh Leasing became an equity-method affiliate, resulting in a decrease in non-controlling interests.

Equity attributable to owners of the parent therefore decreased by ¥22.4 billion, to ¥897.8 billion. The equity attributable to owners of the parent ratio remained stable, at 48.6%.

5

*Cash Flows (Nine months from April 1, 2020 to December 31, 2020)

Net cash provided by operating activities increased by ¥13.8 billion as compared to the previous corresponding period, to ¥72.6 billion. Although the loss for the period was recorded due to the spread of COVID-19, the proceeds increased due to the decrease in trade and other receivables and lease receivables.

Net cash used in investing activities decreased by ¥79.7 billion as compared to the previous corresponding period, to ¥45.4 billion. This was factors such as temporary cash income from the partial transfer of Ricoh Leasing shares and the change of Ricoh Leasing from a consolidated subsidiary to an equity-method affiliate, which resulted in a decrease in capital investment. In addition, there were expenditures due to the acquisition of DocuWare GmbH to expand the digital business in the previous corresponding period.

Free cash flow (net cash provided by operating activities plus net cash used in investing activities) totaled ¥27.2 billion, up by ¥93.5 billion. Net cash provided by financing activities decreased by ¥22.5 billion as compared to the previous corresponding period, to ¥34.7 billion. Since there was a decrease in procurement due to Ricoh Leasing becoming an equity-method affiliate from a consolidated subsidiary, the proceeds decreased as compared to the previous corresponding period in spite of the execution of borrowings in preparation for the risk of deterioration of the business environment by COVID-19.

As a result, the balance of cash and cash equivalent at the end of period increased by ¥62.1 billion as compared to the end of previous fiscal year, to ¥325.8 billion.

3. Qualitative Information on Forecasted Consolidated Financial Results

During the nine months of fiscal 2020, there was a gradual recovery in business results, bottoming out in the first quarter, due to the easing of activity restrictions accompanying the spread of COVID-19, although there were inconsistent economic recoveries by countries and regions. However, since the number of infected persons began to expand again, mainly in Europe, the pace of recovery is slow.

In November, 2020, we have announced the previous forecast expecting a negative impact on operating results, particularly in the Office Printing segment, our main business in consideration that the effects of the spread of COVID-19 will be protracted.

The business results during this period were robust, excluding the impairment losses in Commercial Printing segment, compared from the forecast announced in November. In consideration of the business results during this period and the effects of protracted spread of COVID-19, we have revised the forecasts of domestic/overseas sales, gross profit and profit (loss) before income tax expenses from those previously announced in November, 2020. On the other hand, we have not changed the forecasts of total sales, operating profit (loss) and profit (loss) attributable to owners of the parent.

Ricoh maintains the assumed exchange rates set forth in November, 2020 of ¥105 against the U.S. dollar and of ¥120 against the euro from fourth quarter while the actual exchange rates during the third quarter have been incorporated into exchange rate assumptions for the full year.

Exchange Rate Assumptions for the full year ending March 31, 2021

US$ 1

=

¥105.82

(¥108.80 in previous fiscal year)

EURO 1

=

¥121.77

(¥120.90 in previous fiscal year)

(Billions of yen)

Year ending

Year ending

Year ended

March 31, 2021

March 31, 2021

March 31, 2020

(Previous forecast)

(Revised forecast)

Change

(Actual)

Change

(A)

(B)

(B-A)

(C)

(B-C)/C

Domestic sales

725.0

729.0

4.0

872.3

(16.4%)

Overseas sales

939.0

935.0

(4.0)

1,136.2

(17.7%)

Sales

1,664.0

1,664.0

-

2,008.5

(17.2%)

Gross profit

547.6

563.6

16.0

721.5

(21.9%)

Operating profit (loss)

(49.0)

(49.0)

-

79.0

-

Profit (loss) before income tax expenses

(50.3)

(44.3)

6.0

75.8

-

Profit (loss) attributable to owners of the

(36.4)

(36.4)

-

39.5

-

parent

  • The result forecasts and forward-looking statements included in this document are based on information available to the Company as at the date of submission of this quarterly report and certain assumptions that the Company considers reasonable. The Company makes no guarantees with respect to the achievement of its result forecasts or forward-looking statements. Actual results might be significantly different from the forecasts in the document, depending on various factors. Factors which may affect the actual business results include but are not limited to the economic situation in the geographic areas where Ricoh conducts business, including Japan, the Americas, Europe, Middle East, Africa, China and Asia, market environment, and currency exchange rates.

6

4. Condensed Consolidated Financial Statements

(1) Condensed Consolidated Statement of Financial Position

Assets

(Millions of yen)

March 31, 2020

December 31,

Change

2020

Current Assets

Cash and cash equivalents

262,834

328,562

65,728

Time deposits

50

146

96

Trade and other receivables

392,780

346,396

(46,384)

Other financial assets

87,226

90,039

2,813

Inventories

201,248

204,628

3,380

Other current assets

36,428

46,247

9,819

Subtotal

980,566

1,016,018

35,452

Assets classified as held for sale

1,125,582

-

(1,125,582)

Total Current Assets

2,106,148

1,016,018

(1,090,130)

Non-current assets

Property, plant and equipment

201,569

194,473

(7,096)

Right-of-use assets

59,425

66,258

6,833

Goodwill and intangible assets

231,898

231,503

(395)

Other financial assets

139,181

131,927

(7,254)

Investments accounted for using the equity method

14,305

78,574

64,269

Other investments

14,951

16,628

1,677

Other non-current assets

29,550

29,567

17

Deferred tax assets

70,618

81,941

11,323

Total Non-current Assets

761,497

830,871

69,374

Total Assets

2,867,645

1,846,889

(1,020,756)

Liabilities and Equity

(Millions of yen)

March 31, 2020

December 31,

Change

2020

Current Liabilities

Bonds and borrowings

51,492

73,569

22,077

Trade and other payables

246,055

256,091

10,036

Lease liabilities

27,230

25,673

(1,557)

Other financial liabilities

-

795

795

Income tax payables

9,455

6,161

(3,294)

Provisions

11,686

6,778

(4,908)

Other current liabilities

233,909

219,678

(14,231)

Subtotal

579,827

588,745

8,918

Liabilities directly related to assets held for sale

969,069

-

(969,069)

Total Current Liabilities

1,548,896

588,745

(960,151)

Non-current Liabilities

Bonds and borrowings

128,172

168,712

40,540

Lease liabilities

38,741

49,126

10,385

Accrued pension and retirement benefits

99,795

94,751

(5,044)

Provisions

6,458

7,231

773

Other non-current liabilities

34,143

33,881

(262)

Deferred tax liabilities

2,913

3,048

135

Total Non-current Liabilities

310,222

356,749

46,527

Total Liabilities

1,859,118

945,494

(913,624)

Equity

Common stock

135,364

135,364

-

Additional paid-in capital

186,173

186,217

44

Treasury stock

(37,795)

(37,732)

63

Other components of equity

41,768

56,125

14,357

Other comprehensive income related to disposal group held for sale

130

-

(130)

Retained earnings

594,731

557,903

(36,828)

Equity attributable to owners of the parent

920,371

897,877

(22,494)

Non-controlling interests

88,156

3,518

(84,638)

Total Equity

1,008,527

901,395

(107,132)

Total Liabilities and Equity

2,867,645

1,846,889

(1,020,756)

7

  1. Condensed Consolidated Statement of Profit or Loss and Condensed Consolidated Statement of Comprehensive Income

Condensed Consolidated Statement of Profit or Loss

Nine months ended December 31, 2019 and 2020

(Millions of yen)

Nine months

Nine months

ended

ended

December 31,

December 31,

2019

2020

Change

%

Sales

1,493,882

1,193,071

(300,811)

(20.1)

Cost of sales

944,534

777,354

(167,180)

(17.7)

Percentage of sales (%)

63.2

65.2

Gross profit

549,348

415,717

(133,631)

(24.3)

Percentage of sales (%)

36.8

34.8

Selling, general and administrative expenses

487,259

447,038

(40,221)

(8.3)

Percentage of sales (%)

32.6

37.5

Other Income

7,326

4,224

(3,102)

(42.3)

Percentage of sales (%)

0.5

0.4

Impairment of goodwill

-

2,641

2,641

-

Percentage of sales (%)

-

0.2

Operating profit (loss)

69,415

(29,738)

(99,153)

-

Percentage of sales (%)

4.6

(2.5)

Finance income

4,361

3,754

(607)

(13.9)

Percentage of sales (%)

0.3

0.3

Finance costs

5,551

3,064

(2,487)

(44.8)

Percentage of sales (%)

0.4

0.3

Share of profit (loss) of investments accounted for using the

243

3,434

3,191

-

equity method

Percentage of sales (%)

0.0

0.3

Profit (loss) before income tax expenses

68,468

(25,614)

(94,082)

-

Percentage of sales (%)

4.6

(2.1)

Income tax expenses

22,375

(3,140)

(25,515)

-

Percentage of sales (%)

1.5

(0.3)

Profit (loss) for the period

46,093

(22,474)

(68,567)

-

Percentage of sales (%)

3.1

(1.9)

Profit (loss) attributable to:

Owners of the parent

41,469

(22,471)

(63,940)

-

Percentage of sales (%)

2.8

(1.9)

Non-controlling interests

4,624

(3)

(4,627)

-

Percentage of sales (%)

0.3

(0.0)

Nine months ended

Nine months ended

December 31, 2019

December 31, 2020

Change

Earnings per share attributable to owners of the parent-basic (yen)

57.23

(31.02)

(88.25)

Earnings per share attributable to owners of the parent-diluted (yen)

57.23

(31.02)

(88.25)

* Gain on sales of property, plant and equipment and others were included in "other income".

8

Three months ended December 31, 2019 and 2020

(Millions of yen)

Three months

Three months

ended

ended

December 31,

December 31,

2019

2020

Change

%

Sales

499,103

431,123

(67,980)

(13.6)

Cost of sales

317,128

277,823

(39,305)

(12.4)

Percentage of sales (%)

63.5

64.4

Gross profit

181,975

153,300

(28,675)

(15.8)

Percentage of sales (%)

36.5

35.6

Selling, general and administrative expenses

163,555

151,826

(11,729)

(7.2)

Percentage of sales (%)

32.8

35.2

Other Income

2,347

2,047

(300)

(12.8)

Percentage of sales (%)

0.5

0.5

Impairment of goodwill

-

2,641

2,641

-

Percentage of sales (%)

-

0.6

Operating profit (loss)

20,767

880

(19,887)

(95.8)

Percentage of sales (%)

4.2

0.2

Finance income

1,461

2,308

847

58.0

Percentage of sales (%)

0.3

0.5

Finance costs

747

874

127

17.0

Percentage of sales (%)

0.1

0.2

Share of profit (loss) of investments accounted for using the

141

1,580

1,439

-

equity method

Percentage of sales (%)

0.0

0.4

Profit (loss) before income tax expenses

21,622

3,894

(17,728)

(82.0)

Percentage of sales (%)

4.3

0.9

Income tax expenses

7,741

4,187

(3,554)

(45.9)

Percentage of sales (%)

1.6

1.0

Profit (loss) for the period

13,881

(293)

(14,174)

-

Percentage of sales (%)

2.8

(0.1)

Profit (loss) attributable to:

Owners of the parent

12,211

(276)

(12,487)

-

Percentage of sales (%)

2.4

(0.1)

Non-controlling interests

1,670

(17)

(1,687)

-

Percentage of sales (%)

0.3

(0.0)

Three months ended

Three months ended

December 31, 2019

December 31, 2020

Change

Earnings per share attributable to owners of the parent-basic (yen)

16.86

(0.38)

(17.24)

Earnings per share attributable to owners of the parent-diluted (yen)

16.86

(0.38)

(17.24)

* Gain on sales of property, plant and equipment and others were included in "other income".

9

Condensed Consolidated Statement of Comprehensive Income

Nine months ended December 31, 2019 and 2020

(Millions of yen)

Nine months ended

Nine months ended

December 31, 2019

December 31, 2020

Change

Profit (loss) for the period

46,093

(22,474)

(68,567)

Other comprehensive income (loss):

Components that will not be reclassified subsequently to

profit or loss:

Remeasurement of defined benefit plan

(1,910)

-

1,910

Net changes in fair value of financial assets measured through

1,348

1,589

241

other comprehensive income

Share of other comprehensive income of investments accounted

-

67

67

for using equity method

Total components that will not be reclassified

(562)

1,656

2,218

subsequently to profit or loss

Components that will be reclassified subsequently to

profit or loss:

Net changes in fair value of cash flow hedges

(455)

(421)

34

Exchange differences on translation of foreign operations

(9,858)

13,547

23,405

Share of other comprehensive income of investments accounted

-

10

10

for using equity method

Total components that will be reclassified

(10,313)

13,136

23,449

subsequently to profit or loss

Total other comprehensive income (loss)

(10,875)

14,792

25,667

Comprehensive income (loss)

35,218

(7,682)

(42,900)

Comprehensive income (loss) attributable to:

Owners of the parent

30,272

(7,750)

(38,022)

Non-controlling interests

4,946

68

(4,878)

Three months ended December 31, 2019 and 2020

(Millions of yen)

Three months ended

Three months ended

December 31, 2019

December 31, 2020

Change

Profit (loss) for the period

13,881

(293)

(14,174)

Other comprehensive income (loss):

Components that will not be reclassified subsequently to

profit or loss:

Remeasurement of defined benefit plan

(1,910)

-

1,910

Net changes in fair value of financial assets measured through

1,155

884

(271)

other comprehensive income

Share of other comprehensive income of investments accounted

-

61

61

for using equity method

Total components that will not be reclassified

(755)

945

1,700

subsequently to profit or loss

Components that will be reclassified subsequently to

profit or loss:

Net changes in fair value of cash flow hedges

(693)

(179)

514

Exchange differences on translation of foreign operations

18,773

6,844

(11,929)

Share of other comprehensive income of investments accounted

-

32

32

for using equity method

Total components that will be reclassified

18,080

6,697

(11,383)

subsequently to profit or loss

Total other comprehensive income (loss)

17,325

7,642

(9,683)

Comprehensive income (loss)

31,206

7,349

(23,857)

Comprehensive income (loss) attributable to:

Owners of the parent

29,168

7,353

(21,815)

Non-controlling interests

2,038

(4)

(2,042)

10

Consolidated Sales by Product Category

Nine months ended December 31, 2019 and 2020

(Millions of yen)

Nine months ended

Nine months ended

December 31, 2019

December 31, 2020

Change

%

1,165,942

951,826

(214,116)

(18.4)

Percentage of sales (%)

78.0

79.8

767,860

593,595

(174,265)

(22.7)

Percentage of sales (%)

51.4

49.8

398,082

358,231

(39,851)

(10.0)

Percentage of sales (%)

26.6

30.0

133,375

98,177

(35,198)

(26.4)

Percentage of sales (%)

8.9

8.2

17,794

16,618

(1,176)

(6.6)

Percentage of sales (%)

1.2

1.4

47,896

42,491

(5,405)

(11.3)

Percentage of sales (%)

3.2

3.6

128,875

83,959

(44,916)

(34.9)

Percentage of sales (%)

8.6

7.0

Grand Total

1,493,882

1,193,071

(300,811)

(20.1)

Percentage of sales (%)

100.0

100.0

Three months ended December 31, 2019 and 2020

(Millions of yen)

Three months ended

Three months ended

December 31, 2019

December 31, 2020

Change

%

388,452

344,860

(43,592)

(11.2)

Percentage of sales (%)

77.8

80.0

255,441

211,310

(44,131)

(17.3)

Percentage of sales (%)

51.2

49.0

133,011

133,550

539

0.4

Percentage of sales (%)

26.7

31.0

45,838

35,498

(10,340)

(22.6)

Percentage of sales (%)

9.2

8.2

6,068

6,313

245

4.0

Percentage of sales (%)

1.2

1.5

16,198

15,324

(874)

(5.4)

Percentage of sales (%)

3.2

3.6

42,547

29,128

(13,419)

(31.5)

Percentage of sales (%)

8.5

6.8

Grand Total

499,103

431,123

(67,980)

(13.6)

Percentage of sales (%)

100.0

100.0

* Each category includes the following product line:

Office Printing

MFPs (multifunctional printers), copiers, laser printers, digital duplicators, wide format printers,

facsimile machine, scanners, related parts & supplies, services, support and software

Office Service

Personal computers, servers, network equipment, related services, support, software and service &

solutions related to documents

Commercial Printing

Cut sheet printers, continuous feed printer, related parts & supplies, services, support and software

Industrial printing

Inkjet heads, imaging systems and industrial printers

Thermal Media

Thermal paper and thermal media

Other

Industrial optical component/module, electronic components, precision mechanical component,

digital cameras, 3D printing, environment, healthcare and financial services

  • Some of the business in the Office Service segment have been reclassified into the Office Printing segment and Other segment from this fiscal year. In addition, some corporate expenses have been allocated to the relevant segments. Prior year comparative figures have also been reclassified to conform to the current year's presentation.

11

Consolidated Sales by Geographic Area

Nine months ended December 31, 2019 and 2020

(Millions of yen)

Nine months ended

Nine months ended

December 31, 2019

December 31, 2020

Change

%

637,113

516,789

(120,324)

(18.9)

Percentage of sales (%)

42.6

43.3

856,769

676,282

(180,487)

(21.1)

Percentage of sales (%)

57.4

56.7

The Americas

402,810

284,675

(118,135)

(29.3)

Percentage of sales (%)

27.0

23.9

Europe, Middle East and Africa

321,835

281,792

(40,043)

(12.4)

Percentage of sales (%)

21.5

23.6

Other

132,124

109,815

(22,309)

(16.9)

Percentage of sales (%)

8.8

9.2

Grand Total

1,493,882

1,193,071

(300,811)

(20.1)

Percentage of sales (%)

100.0

100.0

Three months ended December 31, 2019 and 2020

(Millions of yen)

Three months ended

Three months ended

December 31, 2019

December 31, 2020

Change

%

207,522

181,372

(26,150)

(12.6)

Percentage of sales (%)

41.6

42.1

291,581

249,751

(41,830)

(14.3)

Percentage of sales (%)

58.4

57.9

The Americas

133,762

97,978

(35,784)

(26.8)

Percentage of sales (%)

26.8

22.7

Europe, Middle East and Africa

113,335

112,311

(1,024)

(0.9)

Percentage of sales (%)

22.7

26.0

Other

44,484

39,462

(5,022)

(11.3)

Percentage of sales (%)

8.9

9.2

Grand Total

499,103

431,123

(67,980)

(13.6)

Percentage of sales (%)

100.0

100.0

12

  1. Condensed Consolidated Statement of Changes in Equity

(Millions of Yen)

Other components of equity

Net changes in

Common

Additional

Treasury

fair value of

Net changes in

Remeasurement

financial assets

paid-in

fair value of

Stock

stock

of defined

measured

capital

cash flow

benefit plan

through other

hedges

comprehensive

income

Balance as of April 1,

135,364

186,086

(37,394)

-

7,815

59

2019

Profit (loss) for the

period

Other comprehensive

(1,910)

1,035

(413)

income (loss)

Comprehensive income

-

-

-

(1,910)

1,035

(413)

(loss)

Net change in treasury

(399)

stock

Dividends declared and

approved to owners

Share-based payment

25

transactions

Share-based payment

transactions of

subsidiaries

Transfer from other

components of equity

1,910

(58)

to retained earnings

Equity transactions

with non-controlling

44

shareholders

Total transactions with

-

69

(399)

1,910

(58)

-

owners

Balance as of December

135,364

186,155

(37,793)

-

8,792

(354)

31, 2019

Other components of equity

Exchange

Equity

differences on

Total other

Retained

attributable to

Non-controlling

Total equity

translation of

components

earnings

owners of the

interests

foreign

of equity

parent

operations

Balance as of April 1,

65,771

73,645

574,876

932,577

86,411

1,018,988

2019

Profit (loss) for the

41,469

41,469

4,624

46,093

period

Other comprehensive

(9,909)

(11,197)

(11,197)

322

(10,875)

income (loss)

Comprehensive income

(9,909)

(11,197)

41,469

30,272

4,946

35,218

(loss)

Net change in treasury

(399)

(399)

stock

Dividends declared and

(18,841)

(18,841)

(1,227)

(20,068)

approved to owners

Share-based payment

25

25

transactions

Share-based payment

transactions of

-

21

21

subsidiaries

Transfer from other

components of equity

1,852

(1,852)

-

-

to retained earnings

Equity transactions

with non-controlling

44

(1,724)

(1,680)

shareholders

Total transactions with

-

1,852

(20,693)

(19,171)

(2,930)

(22,101)

owners

Balance as of December

55,862

64,300

595,652

943,678

88,427

1,032,105

31, 2019

13

(Millions of Yen)

Other components of equity

Net changes in

Common

Additional

fair value of

Net changes

Remeasurement

financial assets

paid-in

Treasury stock

in fair value

Stock

of defined

measured

capital

of cash flow

benefit plan

through other

hedges

comprehensive

income

Balance as of April 1,

135,364

186,173

(37,795)

-

5,191

409

2020

Profit (loss) for the

period

Other comprehensive

1,549

(489)

income (loss)

Comprehensive income

-

-

-

-

1,549

(489)

(loss)

Net change in treasury

(3)

stock

Dividends declared and

approved to owners

Share-based payment

44

5

transactions

Share-based payment

transactions of

subsidiaries

Loss of control of

subsidiaries

Transfer from other

components of equity

(212)

to retained earnings

Other

61

Total transactions

with

-

44

63

-

(212)

-

owners

Balance as of December

135,364

186,217

(37,732)

-

6,528

(80)

31, 2020

Other components of

equity

Other

Equity

Exchange

comprehensive

attributable

Non-

differences

income related

Retained

Total other

to owners

controlling

Total equity

on

to disposal

earnings

components

of the

interests

translation

groups held for

of equity

parent

of foreign

sale

operations

Balance as of April 1,

36,168

41,768

130

594,731

920,371

88,156

1,008,527

2020

Profit (loss) for the

(22,471)

(22,471)

(3)

(22,474)

period

Other comprehensive

13,509

14,569

152

14,721

71

14,792

income (loss)

Comprehensive income

13,509

14,569

152

(22,471)

(7,750)

68

(7,682)

(loss)

Net change in treasury

(3)

(3)

stock

Dividends declared and

(14,851)

(14,851)

(34)

(14,885)

approved to owners

Share-based payment

49

49

transactions

Share-based payment

transactions of

-

4

4

subsidiaries

Loss of control of

-

(84,676)

(84,676)

subsidiaries

Transfer from other

components of equity

(212)

(282)

494

-

-

to retained earnings

Other

61

61

Total transactions

with

-

(212)

(282)

(14,357)

(14,744)

(84,706)

(99,450)

owners

Balance as of December

49,677

56,125

-

557,903

897,877

3,518

901,395

31, 2020

14

(4) Condensed Consolidated Statement of Cash Flows

(Millions of yen)

Nine months ended

Nine months ended

December 31, 2019

December 31, 2020

I. Cash Flows from Operating Activities:

Profit (loss) for the period

46,093

(22,474)

Adjustments to reconcile profit for the period to net cash

provided by operating activities-

Depreciation and amortization

91,516

79,670

Impairment of property, plant and equipment and intangible assets

-

7,745

Impairment of goodwill

-

2,641

Other income

(5,313)

(1,221)

Share of profit (loss) of investments accounted for using the equity

(243)

(3,434)

method

Finance income and costs

1,190

(690)

Income tax expenses

22,375

(3,140)

(Increase) decrease in trade and other receivables

20,576

67,500

(Increase) decrease in inventories

(31,309)

(1,750)

(Increase) decrease in lease receivables

(23,785)

13,061

Increase (decrease) in trade and other payables

(16,115)

(33,268)

Increase (decrease) in accrued pension and retirement benefits

(3,985)

(5,559)

Other, net

(15,195)

(13,092)

Interest and dividends received

3,928

3,393

Interest paid

(3,655)

(1,861)

Income taxes paid

(27,208)

(14,832)

Net cash provided by (used in) operating activities

58,870

72,689

II. Cash Flows from Investing Activities:

Proceeds from sales of property, plant and equipment

7,272

2,427

Expenditures for property, plant and equipment

(61,009)

(29,941)

Proceeds from sales of intangible assets

134

60

Expenditures for intangible assets

(19,898)

(16,796)

Payments for purchases of investment securities

(13,870)

(594)

Proceeds from sales of investment securities

1,006

336

Net (increase) decrease in time deposits

4

(89)

Purchase of business, net of cash acquired

(16,118)

(8,431)

Net increase (decrease) due to loss of control of subsidiaries

-

7,846

Other, net

(22,723)

(280)

Net cash provided by (used in) investing activities

(125,202)

(45,462)

III. Cash Flows from Financing Activities:

Net increase (decrease) of short-term debt

(11,090)

2,871

Proceeds from long-term debt

227,845

97,037

Repayments of long-term debt

(154,673)

(11,554)

Proceeds from issuance of bonds

72,119

-

Repayments of bonds

(32,148)

(12,413)

Repayments of lease liabilities

(22,605)

(26,293)

Dividends paid

(18,841)

(14,851)

Payments for purchase of treasury stock

(399)

(3)

Other, net

(2,907)

(34)

Net cash provided by (used in) financing activities

57,301

34,760

IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents

(1,820)

212

V. Net Increase (decrease) in Cash and Cash Equivalents

(10,851)

62,199

VI. Cash and Cash Equivalents at Beginning of Year

240,099

263,688

VII. Cash and Cash Equivalents at End of Period

229,248

325,887

Notes: The difference in the amount of "cash and cash equivalents" between condensed consolidated statement of financial position and condensed consolidated statement of cash flows represents bank overdrafts.

15

  1. Notes on premise going concern Not applicable
  2. Changes in accounting policies

Significant accounting policies which apply in the Condensed Consolidated Financial Statements are the same as those in the previous fiscal year.

16

  1. Segment Information Operating Segment Information
    Nine months ended December 31, 2019 and 2020

(Millions of yen)

Nine months ended

Nine months ended

December 31, 2019

December 31, 2020

Change

%

Office Total:

Sales:

Unaffiliated customers

1,165,942

951,826

(214,116)

(18.4)

Intersegment

-

-

-

-

Total

1,165,942

951,826

(214,116)

(18.4)

Operating expenses

1,071,027

924,831

(146,196)

(13.7)

Operating profit (loss)

94,915

26,995

(67,920)

(71.6)

Operating profit (loss) on sales in Office Total (%)

8.1

2.8

Office Printing:

Sales:

Unaffiliated customers

767,860

593,595

(174,265)

(22.7)

Intersegment

-

-

-

-

Total

767,860

593,595

(174,265)

(22.7)

Operating expenses

694,774

587,458

(107,316)

(15.4)

Operating profit (loss)

73,086

6,137

(66,949)

(91.6)

Operating profit (loss) on sales in Office Printing (%)

9.5

1.0

Office Service:

Sales:

Unaffiliated customers

398,082

358,231

(39,851)

(10.0)

Intersegment

-

-

-

-

Total

398,082

358,231

(39,851)

(10.0)

Operating expenses

376,253

337,373

(38,880)

(10.3)

Operating profit (loss)

21,829

20,858

(971)

(4.4)

Operating profit (loss) on sales in Office Service (%)

5.5

5.8

Commercial Printing:

Sales:

Unaffiliated customers

133,375

98,177

(35,198)

(26.4)

Intersegment

-

-

-

-

Total

133,375

98,177

(35,198)

(26.4)

Operating expenses

116,604

101,265

(15,339)

(13.2)

Operating profit (loss)

16,771

(3,088)

(19,859)

-

Operating profit (loss) on sales in Commercial Printing (%)

12.6

(3.1)

Industrial Printing:

Sales:

Unaffiliated customers

17,794

16,618

(1,176)

(6.6)

Intersegment

-

-

-

-

Total

17,794

16,618

(1,176)

(6.6)

Operating expenses

20,719

18,657

(2,062)

(10.0)

Operating profit (loss)

(2,925)

(2,039)

886

-

Operating profit (loss) on sales in Industrial Printing (%)

(16.4)

(12.3)

Thermal Media:

Sales:

Unaffiliated customers

47,896

42,491

(5,405)

(11.3)

Intersegment

-

-

-

-

Total

47,896

42,491

(5,405)

(11.3)

Operating expenses

45,073

40,970

(4,103)

(9.1)

Operating profit (loss)

2,823

1,521

(1,302)

(46.1)

Operating profit (loss) on sales in Thermal Media (%)

5.9

3.6

Other:

Sales:

Unaffiliated customers

128,875

83,959

(44,916)

(34.9)

Intersegment

19,616

13,734

(5,882)

(30.0)

Total

148,491

97,693

(50,798)

(34.2)

Operating expenses

150,440

113,743

(36,697)

(24.4)

Operating profit (loss)

(1,949)

(16,050)

(14,101)

-

Operating profit (loss) on sales in Other (%)

(1.3)

(16.4)

Eliminations and Corporate:

Sales:

Intersegment

(19,616)

(13,734)

5,882

Total

(19,616)

(13,734)

5,882

-

Operating expenses:

Intersegment

(19,616)

(13,734)

5,882

Corporate

40,220

37,077

(3,143)

Total

20,604

23,343

2,739

-

Operating profit (loss)

(40,220)

(37,077)

3,143

-

Consolidated:

Sales:

Unaffiliated customers

1,493,882

1,193,071

(300,811)

(20.1)

Intersegment

-

-

-

-

Total

1,493,882

1,193,071

(300,811)

(20.1)

Operating expenses

1,424,467

1,222,809

(201,658)

(14.2)

Operating profit (loss)

69,415

(29,738)

(99,153)

-

Operating profit (loss) on consolidated sales (%)

4.6

(2.5)

17

Three months ended December 31, 2019 and 2020

(Millions of yen)

Three months

Three months

ended

ended

December 31,

December 31,

2019

2020

Change

%

Office Total:

Sales:

Unaffiliated customers

388,452

344,860

(43,592)

(11.2)

Intersegment

-

-

-

-

Total

388,452

344,860

(43,592)

(11.2)

Operating expenses

360,319

323,170

(37,149)

(10.3)

Operating profit (loss)

28,133

21,690

(6,443)

(22.9)

Operating profit (loss) on sales in Office Total (%)

7.2

6.3

Office Printing:

Sales:

Unaffiliated customers

255,441

211,310

(44,131)

(17.3)

Intersegment

-

-

-

-

Total

255,441

211,310

(44,131)

(17.3)

Operating expenses

233,653

198,900

(34,753)

(14.9)

Operating profit (loss)

21,788

12,410

(9,378)

(43.0)

Operating profit (loss) on sales in Office Printing (%)

8.5

5.9

Office Service:

Sales:

Unaffiliated customers

133,011

133,550

539

0.4

Intersegment

-

-

-

-

Total

133,011

133,550

539

0.4

Operating expenses

126,665

124,271

(2,394)

(1.9)

Operating profit (loss)

6,346

9,279

2,933

46.2

Operating profit (loss) on sales in Office Service (%)

4.8

6.9

Commercial Printing:

Sales:

Unaffiliated customers

45,838

35,498

(10,340)

(22.6)

Intersegment

-

-

-

-

Total

45,838

35,498

(10,340)

(22.6)

Operating expenses

39,807

40,593

786

2.0

Operating profit (loss)

6,031

(5,095)

(11,126)

-

Operating profit (loss) on sales in Commercial Printing (%)

13.2

(14.4)

Industrial Printing:

Sales:

Unaffiliated customers

6,068

6,313

245

4.0

Intersegment

-

-

-

-

Total

6,068

6,313

245

4.0

Operating expenses

6,691

6,422

(269)

(4.0)

Operating profit (loss)

(623)

(109)

514

-

Operating profit (loss) on sales in Industrial Printing (%)

(10.3)

(1.7)

Thermal Media:

Sales:

Unaffiliated customers

16,198

15,324

(874)

(5.4)

Intersegment

-

-

-

-

Total

16,198

15,324

(874)

(5.4)

Operating expenses

14,885

14,722

(163)

(1.1)

Operating profit (loss)

1,313

602

(711)

(54.2)

Operating profit (loss) on sales in Thermal Media (%)

8.1

3.9

Other:

Sales:

Unaffiliated customers

42,547

29,128

(13,419)

(31.5)

Intersegment

6,592

4,511

(2,081)

(31.6)

Total

49,139

33,639

(15,500)

(31.5)

Operating expenses

50,436

37,985

(12,451)

(24.7)

Operating profit (loss)

(1,297)

(4,346)

(3,049)

-

Operating profit (loss) on sales in Other (%)

(2.6)

(12.9)

Eliminations and Corporate:

Sales:

Intersegment

(6,592)

(4,511)

2,081

Total

(6,592)

(4,511)

2,081

-

Operating expenses:

Intersegment

(6,592)

(4,511)

2,081

Corporate

12,790

11,862

(928)

Total

6,198

7,351

1,153

-

Operating profit (loss)

(12,790)

(11,862)

928

-

Consolidated:

Sales:

Unaffiliated customers

499,103

431,123

(67,980)

(13.6)

Intersegment

-

-

-

-

Total

499,103

431,123

(67,980)

(13.6)

Operating expenses

478,336

430,243

(48,093)

(10.1)

Operating profit (loss)

20,767

880

(19,887)

(95.8)

Operating profit (loss) on consolidated sales (%)

4.2

0.2

18

* Each category includes the following product line:

Office Printing

MFPs (multifunctional printers), copiers, laser printers, digital duplicators, wide format printers,

facsimile machine, scanners, related parts & supplies, services, support and software

Office Service

Personal computers, servers, network equipment, related services, support, software and service &

solutions related to documents

Commercial Printing

Cut sheet printers, continuous feed printer, related parts & supplies, services, support and software

Industrial printing

Inkjet heads, imaging systems and industrial printers

Thermal Media

Thermal paper and thermal media

Other

Industrial optical component/module, electronic components, precision mechanical component,

digital cameras, 3D printing, environment, healthcare and financial services

  • Some of the business in the Office Service segment have been reclassified into the Office Printing segment and Other segment from this fiscal year. In addition, some corporate expenses have been allocated to the relevant segments. Prior year comparative figures have also been reclassified to conform to the current year's presentation.

19

-APPENDIX- (Nine months ended December 31, 2020)

1. Consolidated Sales by Product Category Nine months ended December 31, 2019 and 2020

(Millions of yen)

Nine months

Nine months

Change

ended

ended

excluding

December 31,

December 31,

exchange impact

2019

2020

Change

%

%

Office Total

1,165,942

951,826

(214,116)

(18.4)

(209,629)

(18.0)

Percentage of sales (%)

78.0

79.8

Domestic

496,185

420,803

(75,382)

(15.2)

(75,382)

(15.2)

Overseas

669,757

531,023

(138,734)

(20.7)

(134,247)

(20.0)

The Americas

311,687

215,968

(95,719)

(30.7)

(90,340)

(29.0)

Europe, Middle East and Africa

266,599

239,155

(27,444)

(10.3)

(29,888)

(11.2)

Other

91,471

75,900

(15,571)

(17.0)

(14,019)

(15.3)

Office Printing

767,860

593,595

(174,265)

(22.7)

(170,695)

(22.2)

Percentage of sales (%)

51.4

49.8

Domestic

256,525

226,043

(30,482)

(11.9)

(30,482)

(11.9)

Overseas

511,335

367,552

(143,783)

(28.1)

(140,213)

(27.4)

The Americas

232,860

151,952

(80,908)

(34.7)

(77,125)

(33.1)

Europe, Middle East and Africa

197,924

150,011

(47,913)

(24.2)

(49,446)

(25.0)

Other

80,551

65,589

(14,962)

(18.6)

(13,642)

(16.9)

Office Service

398,082

358,231

(39,851)

(10.0)

(38,934)

(9.8)

Percentage of sales (%)

26.6

30.0

Domestic

239,660

194,760

(44,900)

(18.7)

(44,900)

(18.7)

Overseas

158,422

163,471

5,049

3.2

5,966

3.8

The Americas

78,827

64,016

(14,811)

(18.8)

(13,215)

(16.8)

Europe, Middle East and Africa

68,675

89,144

20,469

29.8

19,558

28.5

Other

10,920

10,311

(609)

(5.6)

(377)

(3.5)

Commercial Printing

133,375

98,177

(35,198)

(26.4)

(34,153)

(25.6)

Percentage of sales (%)

8.9

8.2

Domestic

18,823

17,317

(1,506)

(8.0)

(1,506)

(8.0)

Overseas

114,552

80,860

(33,692)

(29.4)

(32,647)

(28.5)

The Americas

69,411

47,529

(21,882)

(31.5)

(20,695)

(29.8)

Europe, Middle East and Africa

35,928

25,559

(10,369)

(28.9)

(10,631)

(29.6)

Other

9,213

7,772

(1,441)

(15.6)

(1,321)

(14.3)

Industrial Printing

17,794

16,618

(1,176)

(6.6)

(1,049)

(5.9)

Percentage of sales (%)

1.2

1.4

Domestic

3,116

1,994

(1,122)

(36.0)

(1,122)

(36.0)

Overseas

14,678

14,624

(54)

(0.4)

73

0.5

The Americas

4,902

5,150

248

5.1

391

8.0

Europe, Middle East and Africa

3,446

2,682

(764)

(22.2)

(782)

(22.7)

Other

6,330

6,792

462

7.3

464

7.3

Thermal Media

47,896

42,491

(5,405)

(11.3)

(5,028)

(10.5)

Percentage of sales (%)

3.2

3.6

Domestic

10,017

9,713

(304)

(3.0)

(304)

(3.0)

Overseas

37,879

32,778

(5,101)

(13.5)

(4,724)

(12.5)

The Americas

14,510

13,223

(1,287)

(8.9)

(957)

(6.6)

Europe, Middle East and Africa

11,990

10,445

(1,545)

(12.9)

(1,651)

(13.8)

Other

11,379

9,110

(2,269)

(19.9)

(2,116)

(18.6)

Other

128,875

83,959

(44,916)

(34.9)

(44,815)

(34.8)

Percentage of sales (%)

8.6

7.0

Domestic

108,972

66,962

(42,010)

(38.6)

(42,010)

(38.6)

Overseas

19,903

16,997

(2,906)

(14.6)

(2,805)

(14.1)

The Americas

2,300

2,805

505

22.0

575

25.0

Europe, Middle East and Africa

3,872

3,951

79

2.0

41

1.1

Other

13,731

10,241

(3,490)

(25.4)

(3,421)

(24.9)

Grand Total

1,493,882

1,193,071

(300,811)

(20.1)

(294,674)

(19.7)

Percentage of sales (%)

100.0

100.0

Domestic

637,113

516,789

(120,324)

(18.9)

(120,324)

(18.9)

Percentage of sales (%)

42.6

43.3

Overseas

856,769

676,282

(180,487)

(21.1)

(174,350)

(20.3)

Percentage of sales (%)

57.4

56.7

The Americas

402,810

284,675

(118,135)

(29.3)

(111,026)

(27.6)

Percentage of sales (%)

27.0

23.9

Europe, Middle East and Africa

321,835

281,792

(40,043)

(12.4)

(42,911)

(13.3)

Percentage of sales (%)

21.5

23.6

Other

132,124

109,815

(22,309)

(16.9)

(20,413)

(15.4)

Percentage of sales (%)

8.8

9.2

20

2. Consolidated Sales by Product Category Three months ended December 31, 2019 and 2020

(Millions of yen)

Three months

Three months

ended

ended

Change

December 31,

December 31,

excluding

2019

2020

Change

%

exchange impact

%

Office Total

388,452

344,860

(43,592)

(11.2)

(43,097)

(11.1)

Percentage of sales (%)

77.8

80.0

Domestic

159,774

148,033

(11,741)

(7.3)

(11,741)

(7.3)

Overseas

228,678

196,827

(31,851)

(13.9)

(31,356)

(13.7)

The Americas

102,788

73,887

(28,901)

(28.1)

(25,947)

(25.2)

Europe, Middle East and Africa

94,415

95,934

1,519

1.6

(1,143)

(1.2)

Other

31,475

27,006

(4,469)

(14.2)

(4,266)

(13.6)

Office Printing

255,441

211,310

(44,131)

(17.3)

(43,550)

(17.0)

Percentage of sales (%)

51.2

49.0

Domestic

83,446

78,429

(5,017)

(6.0)

(5,017)

(6.0)

Overseas

171,995

132,881

(39,114)

(22.7)

(38,533)

(22.4)

The Americas

76,625

52,585

(24,040)

(31.4)

(21,953)

(28.6)

Europe, Middle East and Africa

67,901

56,899

(11,002)

(16.2)

(12,677)

(18.7)

Other

27,469

23,397

(4,072)

(14.8)

(3,903)

(14.2)

Office Service

133,011

133,550

539

0.4

453

0.3

Percentage of sales (%)

26.7

31.0

Domestic

76,328

69,604

(6,724)

(8.8)

(6,724)

(8.8)

Overseas

56,683

63,946

7,263

12.8

7,177

12.7

The Americas

26,163

21,302

(4,861)

(18.6)

(3,994)

(15.3)

Europe, Middle East and Africa

26,514

39,035

12,521

47.2

11,534

43.5

Other

4,006

3,609

(397)

(9.9)

(363)

(9.1)

Commercial Printing

45,838

35,498

(10,340)

(22.6)

(9,973)

(21.8)

Percentage of sales (%)

9.2

8.2

Domestic

6,424

5,861

(563)

(8.8)

(563)

(8.8)

Overseas

39,414

29,637

(9,777)

(24.8)

(9,410)

(23.9)

The Americas

23,766

16,682

(7,084)

(29.8)

(6,425)

(27.0)

Europe, Middle East and Africa

12,598

9,937

(2,661)

(21.1)

(2,945)

(23.4)

Other

3,050

3,018

(32)

(1.0)

(40)

(1.3)

Industrial Printing

6,068

6,313

245

4.0

309

5.1

Percentage of sales (%)

1.2

1.5

Domestic

1,229

758

(471)

(38.3)

(471)

(38.3)

Overseas

4,839

5,555

716

14.8

780

16.1

The Americas

1,511

2,028

517

34.2

599

39.6

Europe, Middle East and Africa

1,177

948

(229)

(19.5)

(248)

(21.1)

Other

2,151

2,579

428

19.9

429

19.9

Thermal Media

16,198

15,324

(874)

(5.4)

(839)

(5.2)

Percentage of sales (%)

3.2

3.6

Domestic

3,507

3,606

99

2.8

99

2.8

Overseas

12,691

11,718

(973)

(7.7)

(938)

(7.4)

The Americas

4,938

4,465

(473)

(9.6)

(292)

(5.9)

Europe, Middle East and Africa

3,741

3,749

8

0.2

(109)

(2.9)

Other

4,012

3,504

(508)

(12.7)

(537)

(13.4)

Other

42,547

29,128

(13,419)

(31.5)

(13,418)

(31.5)

Percentage of sales (%)

8.5

6.8

Domestic

36,588

23,114

(13,474)

(36.8)

(13,474)

(36.8)

Overseas

5,959

6,014

55

0.9

56

0.9

The Americas

759

916

157

20.7

192

25.3

Europe, Middle East and Africa

1,404

1,743

339

24.1

297

21.2

Other

3,796

3,355

(441)

(11.6)

(433)

(11.4)

Grand Total

499,103

431,123

(67,980)

(13.6)

(67,018)

(13.4)

Percentage of sales (%)

100.0

100.0

Domestic

207,522

181,372

(26,150)

(12.6)

(26,150)

(12.6)

Percentage of sales (%)

41.6

42.1

Overseas

291,581

249,751

(41,830)

(14.3)

(40,868)

(14.0)

Percentage of sales (%)

58.4

57.9

The Americas

133,762

97,978

(35,784)

(26.8)

(31,873)

(23.8)

Percentage of sales (%)

26.8

22.7

Europe, Middle East and Africa

113,335

112,311

(1,024)

(0.9)

(4,148)

(3.7)

Percentage of sales (%)

22.7

26.0

Other

44,484

39,462

(5,022)

(11.3)

(4,847)

(10.9)

Percentage of sales (%)

8.9

9.2

21

* Each category includes the following product line:

Office Printing

MFPs (multifunctional printers), copiers, laser printers, digital duplicators, wide format printers,

facsimile machine, scanners, related parts & supplies, services, support and software

Office Service

Personal computers, servers, network equipment, related services, support, software and service &

solutions related to documents

Commercial Printing

Cut sheet printers, continuous feed printer, related parts & supplies, services, support and software

Industrial printing

Inkjet heads, imaging systems and industrial printers

Thermal Media

Thermal paper and thermal media

Other

Industrial optical component/module, electronic components, precision mechanical component,

digital cameras, 3D printing, environment, healthcare and financial services

  • Some of the business in the Office Service segment have been reclassified into the Office Printing segment and Other segment from this fiscal year. In addition, some corporate expenses have been allocated to the relevant segments. Prior year comparative figures have also been reclassified to conform to the current year's presentation.

3. Forecast of Consolidated Performance

(Billions of yen)

Nine months

Three months

ended

ending

Year ending

December 31,

March 31,

March 31,

2020

Change

2021

Change

2021

Change

Results

%

Forecast

%

Forecast

%

Sales

1,193.0

(20.1)

470.9

(8.5)

1,664.0

(17.2)

Gross profit

415.7

(24.3)

147.8

(14.1)

563.6

(21.9)

Operating profit (loss)

(29.7)

-

(19.2)

-

(49.0)

-

Profit (loss) before income tax

(25.6)

-

(18.6)

-

(44.3)

-

expenses

Profit (loss) attributable to

(22.4)

-

(13.9)

-

(36.4)

-

owners of the parent

Earnings per share attributable to

(31.02)

(88.25)

(19.23)

(16.58)

(50.25)

(104.83)

owners of the parent-basic (yen)

Earnings per share attributable to

(31.02)

(88.25)

(19.23)

(16.58)

(50.25)

(104.83)

owners of the parent- diluted (yen)

Capital expenditures*

29.9

18.0

48.0

Depreciation*

34.2

11.7

46.0

R&D expenditures

66.1

26.4

92.5

Exchange rate (Yen/US$)

106.09

105.00

105.82

Exchange rate (Yen/EURO)

122.36

120.00

121.77

*The amounts presented in capital expenditures and depreciation are for property, plant and equipment.

22

4. Forecast of Consolidated Sales by Product Category

(Billions of yen)

Year ended

Three months ending

March 31,

Year ending March 31, 2021

March 31, 2021

2020

Forecast

Forecast

Results

Forecast

excluding

Forecast

excluding

exchange

Change

exchange

Change

impact

%

impact

%

1,570.2

382.0

386.5

1,333.8

(15.1)

1,342.8

(14.5)

Domestic

679.4

178.8

178.8

599.6

(11.7)

599.6

(11.7)

Overseas

890.7

203.1

207.6

734.1

(17.6)

743.1

(16.6)

The Americas

412.9

82.2

85.4

298.1

(27.8)

306.8

(25.7)

Europe, Middle East and Africa

362.4

99.2

98.8

338.4

(6.6)

335.5

(7.4)

Other

115.4

21.6

23.3

97.5

(15.5)

100.8

(12.7)

Office Printing

1,013.0

214.5

218.3

808.1

(20.2)

815.4

(19.5)

Domestic

338.7

78.8

78.8

304.9

(10.0)

304.9

(10.0)

Overseas

674.3

135.7

139.4

503.2

(25.4)

510.5

(24.3)

The Americas

308.2

60.3

62.7

212.2

(31.1)

218.4

(29.1)

Europe, Middle East and Africa

265.2

57.5

57.3

207.5

(21.8)

205.8

(22.4)

Other

100.8

17.9

19.3

83.4

(17.2)

86.2

(14.5)

Office Service

557.1

167.4

168.2

525.6

(5.7)

527.3

(5.3)

Domestic

340.7

99.9

99.9

294.7

(13.5)

294.7

(13.5)

Overseas

216.4

67.4

68.2

230.9

6.7

232.6

7.5

The Americas

104.6

21.8

22.7

85.9

(17.9)

88.3

(15.6)

Europe, Middle East and Africa

97.1

41.7

41.4

130.9

34.7

129.6

33.5

Other

14.5

3.7

4.0

14.1

(3.4)

14.6

0.0

178.3

37.8

38.7

135.9

(23.8)

137.9

(22.7)

Domestic

25.3

7.1

7.1

24.4

(3.7)

24.4

(3.7)

Overseas

152.9

30.6

31.5

111.5

(27.1)

113.5

(25.8)

The Americas

93.2

18.1

18.8

65.6

(29.6)

67.5

(27.5)

Europe, Middle East and Africa

47.6

9.8

9.8

35.4

(25.7)

35.1

(26.3)

Other

12.0

2.6

2.8

10.4

(13.3)

10.7

(10.6)

23.0

8.3

8.5

25.0

8.7

25.2

9.8

Domestic

4.1

1.4

1.4

3.4

(17.3)

3.4

(17.3)

Overseas

18.8

6.9

7.0

21.5

14.4

21.8

15.8

The Americas

6.2

2.6

2.7

7.8

25.3

8.0

29.5

Europe, Middle East and Africa

5.0

1.3

1.3

4.0

(19.9)

4.0

(19.8)

Other

7.5

2.9

2.9

9.7

28.2

9.7

28.2

61.8

15.0

15.5

57.5

(7.0)

58.4

(5.6)

Domestic

12.8

3.3

3.3

13.1

1.6

13.1

1.6

Overseas

49.0

11.6

12.1

44.4

(9.3)

45.3

(7.5)

The Americas

18.8

4.3

4.4

17.5

(6.9)

18.0

(4.5)

Europe, Middle East and Africa

16.3

3.7

3.7

14.1

(13.3)

14.1

(13.8)

Other

13.7

3.5

3.9

12.7

(7.7)

13.1

(4.2)

175.0

27.6

27.9

111.6

(36.2)

112.0

(36.0)

Domestic

150.4

21.3

21.3

88.3

(41.3)

88.3

(41.3)

Overseas

24.5

6.2

6.5

23.2

(5.3)

23.6

(3.7)

The Americas

2.9

0.8

0.9

3.6

27.0

3.8

31.6

Europe, Middle East and Africa

4.9

1.8

1.8

5.8

17.0

5.8

17.1

Other

16.7

3.5

3.7

13.7

(17.5)

14.0

(16.0)

Grand Total

2,008.5

470.9

477.3

1,664.0

(17.2)

1,676.5

(16.5)

Domestic

872.3

212.2

212.2

729.0

(16.4)

729.0

(16.4)

Overseas

1,136.2

258.7

265.0

935.0

(17.7)

947.5

(16.6)

The Americas

534.1

108.2

112.5

392.9

(26.4)

404.2

(24.3)

Europe, Middle East and Africa

436.4

116.1

115.7

397.9

(8.8)

394.6

(9.6)

Other

165.5

34.4

36.8

144.2

(12.9)

148.5

(10.3)

  • Some of the business in the Office Service segment have been reclassified into the Office Printing segment and Other segment from this fiscal year. In addition, some corporate expenses have been allocated to the relevant segments. Prior year comparative figures have also been reclassified to conform to the current year's presentation.

23

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Ricoh Company Ltd. published this content on 04 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 February 2021 06:25:02 UTC.