Consolidated Financial Results (Fiscal Year 2006 Earnings)

Billions of yen
  FY2006 FY2005 Change
Amount %
Revenue Domestic 49.8% 1,329.2 51.9% 1,311.8 +17.4 +1.3
Overseas 50.2% 1,338.2 48.1% 1,215.5 +122.7 +10.1
Total 100.0% 2,667.4 100.0% 2,527.3 +140.1 +5.5
Operating Income 2.6% 70.4 6.5% 164.4 (94.0) (57.2)
Income before Income Taxes 3.0% 79.6 6.4% 162.3 (82.7) (51.0)
Net Income 1.4% 37.0 3.3% 84.5 (47.5) (56.2)
Exchange Rate: US$ ¥113 ¥108 +¥5
Euro ¥138 ¥135 +¥3
  • 1. Income for FY2006 includes temporary expense recorded in connection with structural reform measures.
  • 2. Income for FY2005 includes temporary gain on transfer of the substitutional portion of Fuji Xerox's employee pension fund liabilities.


Consolidated net sales for the fiscal year under review (April 1, 2005, through March 31, 2006) rose to the record level of ¥2,667.4 billion, up 5.5% from the previous fiscal year. This reflected the minimization of declines in sales of such imaging solutions products as color films and digital minilabs as well as considerable growth of net sales in the information solutions and document solutions segments.

Principal reasons for this performance included:

  1. a large rise in sales of flat panel display materials that was supported by abundant demand for such materials amid such trends as expanding demand for LCD televisions and increases in the size of LCD panels
  2. strong sales of digital color multifunction devices and office printers, particularly low-priced models, in the document solutions segment
  3. contributions from newly consolidated subsidiaries acquired during the latter half of the previous fiscal year
  4. the progressive depreciation of the yen against the euro (and the dollar)


Consolidated operating income dropped 57.2% from the previous fiscal year, to ¥70.4 billion, reflecting the major impact of such temporary situations as cost increases associated with structural reform measures* in imaging solutions operations during the fiscal year under review and Fuji Xerox's recording of non-recurring gains on the transfer of the substitutional portion of its employee pension fund liabilities in the previous fiscal year. If these temporary factors are excluded, operating income would have declined only slightly, because the large rise in the profitability of information solutions operations offset almost all the negative effect of such factors as the rising prices of principal raw materials, such as silver and aluminum, along with the cost of investment in future business development, including greater R&D spending with the objective of creating new products and businesses and a rise in depreciation expense in document solutions operations that accompanied the inauguration of a new mission-critical information system.

  • Due to the above-mentioned structural reformation, the related expense of ¥86.0 billion was recognized during the year. It consists of fixed assets related cost of ¥65.1 billion and employee related costs of ¥20.9 billion including one-time additional termination benefits. In respect of expenses by the operating business segments, Imaging Solutions recognized the related expense of ¥77.4 billion and Information Solutions also recognized the related expenses of ¥8.6 billion because of the allocation of the costs related to manufacturing facilities shared with Imaging Solutions.

Consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America.

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