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    7752   JP3973400009

RICOH COMPANY, LTD.

(7752)
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Ricoh : Consolidated Results for the Year Ended March 31, 2021

05/07/2021 | 02:21am EDT

May 7, 2021

FLASH REPORT

Year ended March 31, 2021

(Results for the Period from April 1, 2020 to March 31, 2021)

Performance Outline (Consolidated)

(1) Year ended March 31, 2020 and 2021 (Actual result) and Year ending March 31, 2022 (Forecast)

(Billions of yen)

Year ended

Year ended

Year ending

March 31, 2020

March 31, 2021

Change

March 31, 2022

Change

Results

Results

Forecast

Domestic sales

872.3

753.0

(13.7%)

790.0

4.9%

Overseas sales

1,136.2

929.0

(18.2%)

1,120.0

20.6%

Sales

2,008.5

1,682.0

(16.3%)

1,910.0

13.6%

Gross profit

721.5

572.3

(20.7%)

661.4

15.6%

Operating profit (loss)

79.0

(45.4)

-

50.0

-

Profit (loss) before income tax expenses

75.8

(41.0)

-

54.3

-

Profit (loss) attributable to owners of the

39.5

(32.7)

-

35.4

-

parent

Exchange rate (Yen/US$)

108.80

106.05

(2.75)

105.00

(1.05)

Exchange rate (Yen/EURO)

120.90

123.70

2.80

125.00

1.30

Earnings per share attributable to owners of

54.58

(45.20)

(99.78)

52.52

97.72

the parent-basic (yen)

Earnings per share attributable to owners of

54.58

(45.20)

(99.78)

52.52

97.72

the parent-diluted (yen)

Profit (loss) on equity attributable to owners

4.3

(3.6)

(7.9)

-

-

of the parent (%)

Profit (loss) before income tax expenses on

2.7

(1.7)

(4.4)

-

-

total assets (%)

Operating profit (loss) on sales (%)

3.9

(2.7)

(6.6)

2.6

5.3

Cash flows from operating activities

116.7

126.9

10.2

-

-

Cash flows from investing activities

(164.5)

(63.5)

101.0

-

-

Cash flows from financing activities

75.7

(4.0)

(79.8)

-

-

Cash and cash equivalents at end of the year

263.6

330.3

66.6

-

-

(*1)

Capital expenditures (*2)

86.5

42.1

(44.4)

43.0

0.8

Depreciation (*2)

62.5

45.3

(17.1)

44.0

(1.3)

R&D expenditures

102.8

90.3

(12.4)

90.0

(0.3)

Number of employee (Japan)

31.6

30.3

(1.2)

-

-

(thousand people)

Number of employee (Overseas) (thousand

58.4

50.8

(7.6)

-

-

people)

March 31, 2020

March 31, 2021

Change

Total assets

2,867.6

1,887.8

(979.7)

Equity attributable to owners of the parent

920.3

920.2

(0.1)

Interest-bearing debt (*3)

179.6

222.4

42.7

Equity attributable to owners of the parent

32.1

48.7

16.6

ratio (%)

Equity per share attributable to owners of

1,270.47

1,281.29

10.82

the parent (yen)

*1 The amounts shown as "cash and cash equivalents at end of the year" are shown on the consolidated statement of cash flows. *2 The amounts presented in capital expenditures and depreciation are for property, plant and equipment.

*3 The amounts are shown bonds and borrowings.

Ricoh Company, Ltd.

  • The forecasted results and forward-looking statements included in this document are based on information available to the Company as of the date and certain assumptions that the Company considers reasonable. The Company makes no guarantees with respect to the achievement of its results forecasts or forward-looking statements. Actual results might be significantly different from the forecasts in the document, depending on various factors. For the assumptions used in the forecast and other related information, please refer to "Forecast for the coming fiscal year" on page 8.

1

(2) Three months ended March 31, 2020 and 2021

(Billions of yen)

Three months ended

Three months ended

March 31, 2020

March 31, 2021

Change

Results

Results

Domestic sales

235.2

236.2

0.4%

Overseas sales

279.4

252.7

(9.6%)

Sales

514.6

488.9

(5.0%)

Gross profit

172.2

156.5

(9.1%)

Operating profit (loss)

9.6

(15.6)

-

Profit (loss) before income tax expenses

7.4

(15.4)

-

Profit (loss) attributable to owners of the

(1.9)

(10.2)

-

parent

Exchange rate (Yen/US$)

109.01

105.95

(3.06)

Exchange rate (Yen/EURO)

120.26

127.78

7.52

Earnings per share attributable to owners

(2.65)

(14.18)

(11.53)

of the parent-basic (yen)

Earnings per share attributable to owners

(2.65)

(14.18)

(11.53)

of the parent-diluted (yen)

Profit (loss) on equity attributable to

(0.2)

(1.1)

(0.9)

owners of the parent (%)

Profit (loss) before income tax expenses

0.3

(0.8)

(1.1)

on total assets (%)

Operating profit (loss) on sales (%)

1.9

(3.2)

(5.1)

Capital expenditures (*1)

25.5

12.2

(13.3)

Depreciation (*1)

13.9

11.1

(2.7)

R&D expenditures

27.2

24.2

(2.9)

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

2

Ricoh Company, Ltd. and Consolidated Subsidiaries

Financial Highlights for the Year Ended March 31, 2021

[Prepared on the basis of International Financial Reporting Standards]

1. Results for the Period from April 1, 2020 to March 31, 2021

(1) Operating Results

(Millions of yen)

Year ended

Year ended

March 31, 2020

March 31, 2021

Sales

2,008,580

1,682,069

(% change from the previous corresponding period)

(0.2)

(16.3)

Operating profit (loss)

79,040

(45,429)

(% change from the previous corresponding period)

(9.0)

-

Profit (loss) before income tax expenses

75,891

(41,028)

(% change from the previous corresponding period)

(9.6)

-

Profit (loss)

44,413

(32,664)

(% change from the previous corresponding period)

(19.8)

-

Profit (loss) attributable to owners of the parent

39,546

(32,730)

(% change from the previous corresponding period)

(20.2)

-

Comprehensive income (loss)

11,614

22,053

(% change from the previous corresponding period)

(67.9)

89.9

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

54.58

(45.20)

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

54.58

(45.20)

Profit (loss) on equity attributable to owners of the parent (%)

4.3

(3.6)

Profit (loss) before income tax expenses on total assets (%)

2.7

(1.7)

Operating profit (loss) on sales (%)

3.9

(2.7)

Notes:

i. Share of profit of investments accounted for using the equity method: ¥ 3,645 million (¥ 244 million in previous corresponding period) ii. 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

March 31, 2021

Total assets

2,867,645

1,887,868

Total equity

1,008,527

923,852

Equity attributable to owners of the parent

920,371

920,246

Equity attributable to owners of the parent ratio (%)

32.1

48.7

Equity per share attributable to owners of the parent (yen)

1,270.47

1,281.29

(3) Cash Flows

(Millions of yen)

Year ended

Year ended

March 31, 2020

March 31, 2021

Cash flows from operating activities

116,701

126,962

Cash flows from investing activities

(164,591)

(63,559)

Cash flows from financing activities

75,757

(4,085)

Cash and cash equivalents at end of year

263,688

330,344

2. Dividend Information

Year ended

Year ended

Year ending

March 31, 2020

March 31, 2021

March 31, 2022

(Actual)

(Actual)

(Forecast)

Cash dividends, applicable to the year (yen)

26.00

15.00

26.00

Interim (yen)

13.00

7.50

13.00

Year-end (yen)

13.00

7.50

13.00

Total annual dividends (millions of yen)

18,846

10,826

-

Payout Ratio (%)

47.6

-

49.5

Dividends on equity attributable to owners of the

2.0

1.2

-

parent (%)

3

3. Forecast of Operating Results from April 1, 2021 to March 31, 2022

(Millions of yen)

Year ending

March 31, 2022

Sales

1,910,000

(% change from the previous corresponding period)

13.6

Operating profit (loss)

50,000

(% change from the previous corresponding period)

-

Profit (loss) before income tax expenses

54,300

(% change from the previous corresponding period)

-

Profit (loss)

35,500

(% change from the previous corresponding period)

-

Profit (loss) attributable to owners of the parent

35,430

(% change from the previous corresponding period)

-

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

52.52

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 March 31, 2021: 744,912,078 shares; As of March 31, 2020: 744,912,078 shares

  1. Number of treasury stock:

As of March 31, 2021: 26,692,132 shares; As of March 31, 2020: 20,478,528 shares

  1. Average number of common stock:

Year ended March 31, 2021: 724,175,341 shares; Year ended March 31, 2020: 724,595,697 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 March 31, 2021: 415,800 shares; As of

March 31, 2020: 421,500 shares)

(Reference) Non-consolidated information Results for the period from April 1, 2020 to March 31, 2021

(1) Operating Results

(Millions of yen)

Year ended

Year ended

March 31, 2020

March 31, 2021

Sales

891,192

761,396

(% change from the previous corresponding period)

0.2

(14.6)

Operating profit (loss)

(31,104)

(38,603)

(% change from the previous corresponding period)

-

-

Profit (loss) from ordinary operations

(10,085)

64,025

(% change from the previous corresponding period)

-

-

Profit (loss)

4,215

88,057

(% change from the previous corresponding period)

(91.7)

-

Profit (loss) per share-basic (yen)

5.81

121.59

Profit (loss) per share-diluted (yen)

5.81

121.59

(2) Financial Position

(Millions of yen)

March 31, 2020

March 31, 2021

Total assets

923,360

967,753

Total equity

461,015

529,551

Equity ratio (%)

49.9

54.7

Equity per share (yen)

636.38

737.31

*Equity capital

March 31, 2021: ¥529,551 million

March 31, 2020: ¥461,015 million

4

1. Performance

(1) Qualitative Information on Consolidated Business Results

  • Overview of the Year of Fiscal 2020 (April 1, 2020 - March 31, 2021)
    Business Environment

The COVID-19 pandemic hampered the global economy of fiscal 2020.

In the Ricoh's mainstay office equipment market, demand declined significantly amid government-imposed lockdowns, regulatory and other constraints on economic activity. Prolonged U.S.-China trade frictions and geopolitical risks in various regions added to uncertainty about the future. Port strikes in the Americas and a ship stranding in the Suez Canal increased global supply chain risks.

The average exchange rate for the yen in fiscal 2020 was ¥106.05 to the U.S. dollar, down ¥2.75 from a year earlier, and ¥123.70 to the euro, up ¥2.80.

It was against this economic backdrop that the pandemic affected the Ricoh's mainstay office equipment businesses, including MFPs, throughout the year, significantly reducing demand in advanced and developing nations. Notwithstanding signs of a recovery in the third quarter, new infection waves caused corporate demand for consumables to dwindle.

At the same time, teleworking and new work practices became well established in offices, educational institutes and other settings. Ricoh will accordingly continue to support the ever-changing world of work among customers by assisting with digital transformations, for which demand is surging in office and other workplaces.

Results for the Fiscal Year

Ricoh positioned fiscal 2020, when the pandemic began, as one of responding to that crisis and of gearing up for the future. We thus endeavored to (1) secure sufficient liquidity to cover performance fluctuations, (2) enhance financial stability, and (3) accelerate its post- pandemic evolution.

Consolidated sales for fiscal 2020 decreased 16.3% from a year earlier, to ¥1,682.0 billion. In the Office Printing, hardware sales were down owing to lockdowns and other constraints that hampered sales activities. Non-hardware sales also dropped amid declining office attendance rates among customers, primarily in Europe and the Americas. Those effects peaked in April and May 2020, leading to a gradual recovery from June. Consolidated subsidiary Ricoh Leasing Co., Ltd. (hereinafter, Ricoh Leasing) became an equity method affiliate after the transfer of shares, fueling a sales drop.

While online demand rose in Japan on companies pushing ahead with teleworking, the IT equipment demand experienced in the fiscal 2019 ran its course. Hardware sales were down amid fewer business deal opportunities from companies exercising restraints on activity. Non- hardware sales fell owing to declining office printing demand. Domestic sales in Japan thus dropped 13.7% from a year earlier.

In the Americas, sales were off 27.6%, primarily in Office Printing. Key factors were stagnating sales and deliveries from lockdowns and behavioral restrictions, as well as falling print volumes from customers closing offices. In Europe, the Middle East, and Africa, sales were off 9.9%. Although Office Service sales rose on IT services expansion from more robust sales and service systems, including from acquisitions in the previous fiscal year, Office Printing sales decreased by the same reason as the Americas.

Sales in other regions decreased 10.0%, largely because of Office Printing declines. Overseas sales therefore dropped 18.2% from a year earlier.

Gross profit was down 20.7%, to ¥572.3 billion. Factors in Office Printing sales included fewer units sold amid declining business deal opportunities as a result of the pandemic and decreases in consumable and other non-hardware sales. In the Other segment, earnings were down owing to the adoption of equity method accounting for Ricoh Leasing and removals from consolidation.

Selling, general and administrative expenses decreased 5.9%, to ¥619.7 billion. This stemmed from emergency cost-cutting measures in response to the pandemic and lower sales-linked expenditure. These factors offset a ¥24.8 billion impairment loss on property, plant and equipment and intangible assets mainly in the Commercial Printing.

As part of measures to respond the crisis and to gear up for the future, Ricoh reviewed cost policies and development priorities in line with work practice reforms, digitized headquarters business processes, developed service businesses that match regional characteristics, and rolled out products and services that cater to new work practices. As a result, we were able to generate ¥99.1 billion* in earnings.

Impairment of goodwill was a loss of ¥3.7 billion on goodwill in the Commercial Printing and other.

Ricoh accordingly posted an operating loss of ¥45.4 billion, down ¥124.4 billion from a year earlier. This reflected the significant business impact of the pandemic and offset better than anticipated gains from measures to respond to the crisis and to gear up for the future. After excluding special factors such as restructuring, production reorganization costs, impairment losses and government grants, the effective operating loss for fiscal 2020 was ¥10.8 billion. This figure represented a turnaround from an operating loss of ¥31.5 billion in the first half of the year to an operating profit of ¥20.7 billion in the second half on a recovery from the pandemic and efforts to reinforce the business corporate structure and expand in the Office Service area.

Net financial expenses were lower than a year earlier, owing mainly to higher foreign exchange gains. Share of profit of investments accounted for using the equity method increased compared to the previous fiscal year due to the deconsolidation of Ricoh Leasing. Despite the increase in non-operating income, profit (loss) before income tax expenses decreased by ¥116.9 billion as compared to the previous fiscal year, to ¥41.0 billion (loss).

Income tax expenses were down ¥39.8 billion from a year earlier, owing to the decrease of profit (loss) before income tax expenses.

We thus posted a ¥32.7 loss attributable to owners of the parent, down ¥72.2 billion from a year earlier.

Comprehensive income increased 89.9% to ¥22.0 billion due to an increase of exchange differences on translation of foreign operations and remeasurement of defined benefit plan.

* Includes the cost reduction effect due to government grants.

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Ricoh Company Ltd. published this content on 07 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2021 06:20:01 UTC.


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Sales 2021 1 664 B 15 098 M 15 098 M
Net income 2021 -28 604 M -259 M -259 M
Net cash 2021 40 712 M 369 M 369 M
P/E ratio 2021 -33,1x
Yield 2021 1,21%
Capitalization 932 B 8 449 M 8 451 M
EV / Sales 2021 0,54x
EV / Sales 2022 0,53x
Nbr of Employees 81 100
Free-Float 93,1%
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Technical analysis trends RICOH COMPANY, LTD.
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Mean consensus OUTPERFORM
Number of Analysts 14
Average target price 1 444,64 JPY
Last Close Price 1 308,00 JPY
Spread / Highest target 31,9%
Spread / Average Target 10,4%
Spread / Lowest Target -8,26%
EPS Revisions
Managers and Directors
NameTitle
Yoshinori Yamashita President, CEO & Representative Director
Hidetaka Matsuishi CFO, Director & GM-Business Planning Division
Nobuo Inaba Chairman
Seiji Sakata Director & Chief Technology Officer
Hisao Murayama Managing Executive Officer & GM-Quality Technology
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