Ricoh 2006 Annual Report Download - page 5

Shareholders' Investment and
Return on Shareholders' Investment**
(%) (%)
(Billions of Yen) (Billions of Yen)
0
200
400
600
1,000
800
2002
633.0
2003
657.5
2004
795.1
6
9
12
15
10.4 11.2
12.6
2005
862.9
2006
960.2
10.0 10.6
Total Assets and Return on Assets***
4
5
6
7
8
2002
1,832.9
2003
1,884.9
2004
1,852.7
6.4
6.6
7.7
2005 2006
1,953.6 2,041.1
7.1
7.8
(FY) (FY)
4 ANNUAL REPORT 2006
To Our Shareholders and Customers
To Our Shareholders and
Customers
General Information
by Business Area Ricoh's Core Values Solutions Environmental Financial Section
printers, extensive cost control from the development stages,
and continuing cost-cutting activities in distribution and
production reforms. Despite posting such strategic expenses
as research and development expenses for developing new
products, operating income increased by 12.2% from the
previous year to ¥152.0 billion ($1,299 million). Net income
increased by 16.7% from the previous year to ¥97.0 billion
($829 million), the highest figure ever.
Basic net income per share was ¥132.33 ($1.13), and return
on shareholders investment was 10.6%.
Cash dividends paid per share of common stock amounted to
¥22.0 ($0.19), an increase for the sixth consecutive year.
Financial Position Continues to Improve
Cash flow was affected on one hand by an increase in net
income and on the other hand by an increase in capital
investment to add production lines for new products and to
improve research and development facilities. Free cash flow,
which is the sum of cash flows for operating activities and
investment activities, increased by ¥20.2 billion from the
previous year to ¥56.8 billion ($485 million) of positive cash
flow.
The promotion of effective capital utilization among group
companies reduced interest-bearing debt by ¥28.8 billion
from the previous year (balance of ¥381.2 billion).
Meanwhile, total shareholders'equity increased by ¥97.2
billion to ¥960.2 billion ($8,207 million) due to increase in
retained earnings, and equity ratio rose by 2.8 points from the
previous year to 47.0%.
Results of the 15th Mid-term Management Plan
Since the 13th Mid-term Management Plan, the Ricoh
Group has set its sight on changing the business structure in
Office Solutions, our core segment, so we not only
manufacture and sell equipment, but help customers improve
or reform their operations by providing devices and systems.
Then, in the 14th Mid-term Management Plan, we set the
principal strategy as expanding the revenue base through the
realization of T DV, and took various steps to this end.
While the direction of the reform and the essence of the
principal strategy remain the same in the 15th Mid-term
Management Plan, which we have deployed since April 2005,
we will more than ever work closely with our customers to
continue to provide the values that meet the customers'needs
and to increase our corporate value.
In the office solutions segment, we are confident that we can
further solidify our business foundation by taking full
advantage of the strengths of the Ricoh Group such as full
product line merchandising, close contacts with customers in
sales and service, ability to offer solutions, global operations,
and image processing and image processing and fusion
technologies. We will allocate greater business resources to
printing, an area that shows promises of growth, to deploy
printing solutions, enter the high-end production printing
0
500
1,000
1,500
2,000
**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