Ricoh 2005 Annual Report Download - page 4

(Yen)
0
30
60
90
120
Basic Diluted
Net Income per Share of Common Stock
2004
123.63
2005
112.64
2003
99.79
96.81
88.27
82.46
20022001
76.85
71.02
(%) (Billions of Yen)
To Our Shareholders and Customers
0
400
800
1,200
2,000
1,600
Net Income
0
20
40
60
80
100
91.7
2004
83.1
2005
72.5
2003
61.6
2002
53.2
2001
(Billions of Yen)
5.2
Net Sales and Return on Sales*
2
3
4
5
6
2001
(FY)
(FY)
(FY)
1,538.2
1,672.3
2002
1,738.3
2003
1,780.2
2004
1,814.1
2005
3 ANNUAL REPORT 2005
3.7
4.6
3.5
4.2
11th Consecutive Year of Increased Sales
In fiscal 2005 (year ended March 31, 2005), the Ricoh Group
achieved consolidated net sales of ¥1,814.1 billion ($16,954
million), which marked the 11th consecutive year of sales
growth.
In the office equipment market, the Ricoh Group's main
areas of business, conversion to digital systems and
networking are progressing rapidly, while customer needs are
undergoing rapid change. In order to remain the value-
oriented company our customers have come to expect, the
Ricoh Group is carrying out effective structural reforms. We
do more than simply manufacture and sell copiers and
printers; we select and recommend the most appropriate
products and systems to satisfy customer needs in terms of
both cost and performance.
In this last year of our 14th midterm plan, the Ricoh Group
set a goal to expand its revenue base through total document
volume (TDV) as its principal strategy, and has increased sales
by promoting core products such as color plain-paper copiers
(PPCs) and printing systems.
In addition, strategic moves were made this year toward
future growth: active spending in such strategic areas as
research and development, IT investment for a core
operating system, and downsizing optical disk operations, in
order to focus our efforts on selected businesses.
Performance in Fiscal 2005
Consolidated net sales in fiscal 2005 came to ¥1,814.1 billion
($16,954 million), as mentioned earlier, up 1.9% from the
previous fiscal year.
Domestically, sales of printing systems such as MFPs and
laser printers, have increased. Additionally, the new printer
company we aquired, Ricoh Printing Systems, Ltd., has
contributed greatly to business productivity. As a result,
domestic sales rose 6.4% from the previous fiscal year, to
¥972.9 billion ($9,093 million).
Overseas, sales in the Americas declined, influenced by the
appreciation of the yen against the dollar, while sales
continued to be favorable in Europe. By product line,
increased sales of color PPCs and printing systems, both core
Ricoh products, partly compensated for decreased sales of
stand-alone analog machines and optical disc drives. As a
result, overseas sales fell 2.9% from the previous fiscal year, to
¥841.1 billion ($7,861 million).
Although sales of high-margin, high-value-added products
such as MFPs and laser printers increased and our steady
implementation of effective cost-cutting measures succeeded
in making significant contributions, operating income fell
9.7%, to ¥135.5 billion ($1,266 million), due to the reasons
mentioned earlier, including increases in active spending in
strategic areas and appreciation of the yen. Net income
dropped 9.4%, to ¥83.1 billion ($777 million).
Basic net income per share was ¥112.64 ($1.05) and return
*Return on sales based on net income