Ricoh 2007 Annual Report Download - page 25

The sales would have increased by 4.9% excluding the effects of foreign
currency fluctuations.
Imaging Solutions
Sales of PPCs, MFPs and laser and GELJET printers, mainly color
equipment, increased both in Japan and overseas due to its expanding
product lines and enhanced solution sales structures. The new color
MFP products launched as a standard new-generation color model
played a large role in this sales increase. Overall sales increased by 9.2%
from the previous corresponding period, to ¥1,580.1 billion($13,391
million).
The sales would have increased by 5.3% excluding the effects of foreign
currency fluctuations.
Network System Solutions
The increase in sales of IT services was due to the expansion of
solutions business. The sales of personal computers and PC servers
increased slightly in Japan. As a result, sales in this category increased
by 2.0% from the previous corresponding period, to ¥194.3
billion($1,647 million).
2. Industrial Products
Net sales in the Industrial Products segment increased by 10.6% from
the previous corresponding period, to ¥133.3 billion($1,130 million).
Sales in semiconductors, thermal media, electronic components as well
as measuring equipments increased.
3. Other
Net sales in this category increased by 6.4% from the previous
corresponding period, to ¥161.0 billion($1,365 million). Sales of digital
cameras in both Japan and the overseas markets increased in addition
to good performance of financing services in Japan.
To Our Shareholders and
Customers
Highlights
Corporate Governance Business Strategy
CSR
Environmental Management
Financial Section Brand Strategy
24
ANNUAL REPORT 2007
SALES BY PRODUCT LINE
2006 2007
Percentage of Percentage of Thousands of
Millions of Yen net sales Millions of Yen net sales U.S.Dollars
Office Solutions
Imaging Solutions ¥1,446,635 75.8% ¥1,580,155 76.4% $13,391,144
Network System Solutions 190,593 10.0 194,312 9.4 1,646,712
Industrial Products 120,636 6.3 133,387 6.4 1,130,398
Other 151,374 7.9 161,071 7.8 1,365,009
Total ¥1,909,238 100.0% ¥2,068,925 100.0% $17,533,263
*As a result of the sale of a business, the operating results from the discontinued operations have been reclassified in accordance with Statement of Financial Accounting Standards ("SFAS") No.
144, "Accounting for the Impairment or Disposal of Long-Lived Assets".
CONSOLIDATED SALES BY GEOGRAPHIC AREA
1. Japan
While the Japanese economy was on the upswing, consumers' spending
remained flat. In this market circumstances, Ricoh launched its new
products and offered a wide range of solutions in an effort to cultivate a
growing customers' needs for solutions and color products in the office
solutions market. This effort resulted in a significant sales increase in
color MFPs and color printers and increase in sales of IT services with
the previous corresponding period. In the Industrial Products, sales in
thermal media, semiconductors, electronic components and measuring
equipments increased. Sales in the Other increased due to the favorable
performance of financing business as well as digital cameras. Overall
sales in Japan increased by 3.7% from the previous corresponding
period.
2. The Americas
The slump in the US housing market has precipitated a decline in the
economy. The Office Solutions segment focused on strengthening sales
structures and expanding product lines in order to provide the best
solutions to meet the diverse range of customer needs for color,
networking and high-speed products. As a result, sales of PPCs, MFPs
and laser and GELJET printers exceeded the last fiscal year's level in
both color and black/white product categories, bringing overall sales in
the Office Solutions segment up 10.1% over sales for the previous
corresponding period. Sales in the Industrial Products segment also
increased due to the favorable performance of the electronic component
business. These factors combined resulted in a 10.1% increase in the
sales in the Americas. The increase in sales in this area would have
increased by 6.5% excluding the effects of foreign currency fluctuations.
3. Europe
As the European economy remaining on a steady footing, the Office
Solutions segment proceeded with strengthening sales structures and
expanding product lines in order to provide the best solutions to meet a
diverse range of customers' needs. As a result, sales of PPCs, MFPs and