Ricoh 2005 Annual Report Download - page 5

Shareholders' Investment and
Return on Shareholders' Investment**
(%) (%)
To Our Shareholders and Customers
(Billions of Yen) (Billions of Yen)
0
200
400
600
800
2001
556.7
2002
633.0
2003
657.5
2004
795.1
6
9
12
15
9.7 10.4 11.2
12.6
2005
862.9
10.0 6.0
Total Assets and Return on Assets***
0
500
1,000
1,500
2,000
4
5
6
7
8
2001
1,704.7
2002
1,832.9
2003
1,884.9
2004
1,852.7
6.4 6.6
7.7
2005
1,953.6
7.1
4 ANNUAL REPORT 2005
To Our Shareholders
and Customers
Review of Operations
(General Information by Business Area)
Technology Corporate Social
Responsibility Environment Financial Section
on shareholders investment was 10.0%.
We raised cash dividends paid per share of common stock to
¥20.00 ($0.19), an increase for the fifth consecutive year.
Improving Our Financial Position
Due to the increase in facility investments and the acquisition
of a company, free cash flow generated by operating and
investing activities totaled ¥36.5 billion ($342 million), down
¥54.9 billion from the previous fiscal year.
Consolidated assets greatly increased due to the consolidation
of Ricoh Printing Systems,Ltd., aquired in October, 2004,
and the rise in operating assets from increased sales. Total
assets rose to ¥1,953.6 billion ($18,259 million), up ¥100.8
billion from the previous fiscal year.
The promotion of effective capital utilization among group
companies and efforts to reduce interest-bearing debt
contributed to a reduction of ¥22.6 billion. At the same time,
total share holders, equity rose ¥67.8 billion due to the
increase in retained earnings, and the equity ratio rose 1.3
points, to 44.2%.
Results of the 14th Mid-term Business Plan
The Ricoh Group set a goal of expanding its revenue base
through the realization of TDV as its principal strategy for the
14th Mid-term Business Plan (April 2002-March 2005).
The strategy consists of three basic components. The first is
the replacement of monochrome products with color models.
By expanding the line of color models that feature space-
saving designs at prices comparable to those of monochrome
machines, we will meet the customer’s need for color
documents. The second component is the expansion of sales
of high-speed models. By providing high-speed machines that
are competitive in terms of sales price, maintenance fees, and
reliability, we will meet the customer’s need for higher-
efficiency output. The third component is the deployment of
printing solutions. By proposing the optimal combination of
copiers and printers, we will meet the customer’s need for
further cost reductions.
To replacing monochrome products, we have placed new
color multifunction copiers and color laser printers on the
market on a continuous basis to further expand our color line.
In fiscal 2005, the Ricoh Group released multifunction color
copiers such as the imagio Neo C600 series, which is able to
color copy or print 45 sheets per minutes, and the imagio
Neo C455 series, which uses color PxP toner with Ricoh’s
original polymerization method. After implementing these
measures, the Ricoh Group now boasts a high market share in
color copiers in Japan, the United States and Europe.
To enter the low-end business printer market, we put the
GELJET IPSiO G series on sale in February 2004 to compete
with other manufacturers’ monochrome laser and inkjet
printers. It is positioned as a business printer for its high-
speed, high-quality printing on plain paper and its low
running costs.
**Return on shareholders' investment
based on net income ***Return on assets based on income before income taxes, minority interests and equity
in earnings of affiliates