Ricoh 2006 Annual Report Download - page 19

Imaging Solutions
Although dom estic sales of digital PPCs decreased due primarily to a
shift in custom ers needs to MFPs from stand-alone products, overseas
sales of digital PPCs continued to perform well. The sales of color PPCs
increased in Japan and overseas by our effort to continuous offer of new
product line-up.
As for MFPs, the following new product lineups were offered in response
to customers needs for high speed, networking and coloration, resulting
in the continuous sales increase.
The sales of laser printers continued to increase in Japan and overseas.
As a result, sales in this category increased by 8.6%.
Network System Solutions
The sales of Solution Business such as support and services continue to
increase both in Japan and overseas due to our successful prom otion of
optim izing the customers’ total printing cost. However, the sales of
personal com puters and servers continue to decrease in Japan. As a
result, the sales in this category decreased by 4.3% from the previous
corresponding period to ¥190.5 billion ( $1,629 m illion) .
2 . Industr ial Pr oducts
Net sales in the Industrial Products increased by 1.0%, as compared to
the previous corresponding period to ¥120.6 billion ( $1,031 m illion) .
The sales of thermal media business and electric com ponent business
increased and the demand for sem iconductor products is recovering;
however, the sales of optical equipment business decreased due to a
sluggish demand.
3 . Other
The digital cam era business perform ed well. During the previous
corresponding period, the withdrawal from the self-developed drive
business and its key-module/parts business in optical discs business was
executed; therefore, its sales for this period decreased especially overseas.
There was a sale of non-core business subsidiary in Japan. As a result,
sales in this segm ent decreased by 3.7% from the previous
corresponding period to ¥157.2 billion ( $1,344 m illion) .
To Our Shareholders and
Customers
General Information
by Business Area Ricoh's Core Values Solutions Environmental Financial Section
18
ANNUAL REPORT 2006
SALES BY PRODUCT LINE
2005 2006
Percentage of Percentage of Thousands of
Millions of Yen net sales Millions of Yen net sales U.S.Dollars
Office Solutions
Im aging Solutions ¥1,332,299 73.4% ¥ 1 ,4 4 6 ,6 3 5 7 5 .5 % $ 1 2 ,3 6 4 ,4 0 2
Network System Solutions 199,129 11.0 1 9 0 ,5 9 3 1 0 .0 1 ,6 2 9 ,0 0 0
Industrial Products 119,408 6.6 1 2 0 ,6 3 6 6 .3 1 ,0 3 1 ,0 7 7
Other 163,272 9.0 1 5 7 ,2 2 6 8 .2 1 ,3 4 3 ,8 1 2
Total ¥1,814,108 100.0% ¥ 1 ,9 1 5 ,0 9 0 1 0 0 .0 % $ 1 6 ,3 6 8 ,2 9 1
CONSOLIDATED SALES BY GEOGRAPHIC AREA
1 . Japan
As for the economy in Japan, the stock market, capital investm ent and
corporate performance showed a recovery; however, it was affected by
the escalating prices of materials and crude oil and overall demand in
the market was below our expectations. In Office Solutions, the sales of
Im aging Solutions, including color PPCs, MFPs and laser printers, and
solutions business, such as support and services, increased due to the
implementation of the product and sales strategies to m eet our
customers’ needs. This increase in sales was offset by the decreased sales
of the stand-alone products due to the transition to MFPs and color
products and personal com puters and servers. The sales in the Office
Solutions increased by 1.3% from the previous corresponding period.
The sales of Industrial Products decreased from the previous
corresponding period due to the lower demand in optical equipment
business and the sale of non-core business subsidiary. As a result, the
sales in Japan decreased by 0.1% from the previous corresponding
period to ¥972.0 billion ( $8,308 million) .
2 . The Americas
The economy in the Americas continued good condition even though
they were repeatedly affected by hurricanes. However, the com petition in
the market became more intense. In such conditions, we focused on
expanding our sales of MFPs and laser printers, which met the change
of customers’ needs for color PPCs, networked, coloration and high
speed, utilizing the im proved and enhanced sales to m aj or accounts. As
a result, the sales in the Americas increased by 19.0% from the previous
corresponding period to ¥387.4 billion ( $3,311 m illion) . Excluding the
effects of the depreciation of the yen to dollar, the sales in the Am ericas
would have increased by 13.0% from the previous corresponding period.