Ricoh 1999 Annual Report Download - page 25

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22
In fiscal 1999, ended March 31, 1999, Ricoh Company, Ltd., completed its
12th medium-term management plan. This initiative focused on reinforcing
management’s emphasis on customer satisfaction while making Ricoh a more
valuable business. Ricoh strove companywide to develop products that
match user needs, aggressively market, and bolster its production and
supplies structure.
As a result of these endeavors, Ricoh achieved record net sales for the
fourth consecutive year and record net income for the fifth year running.
Revenues
Net sales were up 1.6% from fiscal 1998, to ¥1,426.0 billion ($11,785
million).
In the office equipment category, sales of copiers and related supplies
rose 1.8%. This business benefited from a stronger sales structure overseas
and favorable conditions in the European and U.S. markets, which offset
stagnant conditions in Japan. Communications and information systems sales
advanced 1.6%. New networkable offerings contributed to sales, especially in
the domestic market.
Office equipment sales thus gained 1.7%, to ¥1,234.5 billion ($10,202
million). Office equipment represented 86.6% of net sales.
Domestic sales were down 1.2%, to ¥821.0 billion ($6,785 million). This
figure constituted 57.6% of net sales, from 59.2%. Overseas sales climbed
5.8%, to ¥605.0 billion ($5,000 million). This accounted for 42.4% of net
sales, from 40.8% in fiscal 1998.
The average yen-dollar exchange rate for the term was down around ¥5,
to ¥128. The yen-deutschemark average was ¥73, down around ¥4.
Operating Income
Operating income fell 18.0%, to ¥73.5 billion ($608 million). The gross prof-
it ratio slipped 0.4 percentage point, to 39.9%. This was mainly because of
the domestic sales decline and stricter inventory controls, which increased
manufacturing overheads.
Selling, general and administrative expenses increased 4.2%, to ¥495.0
billion ($4,091 million). This was due primarily to the yen’s depreciation,
which boosted the costs of foreign subsidiaries when translated into yen, and
restructurings at some subsidiaries.
Research and development costs dipped 4.6%, to ¥66.8 billion ($552
million), and represented 4.7% of net sales, down 0.3 percentage point.
Income before Income Taxes
Japan
The Americas
Europe
Other
To t a l
S
ALES BY
P
RODUCT
L
INE
Office Equipment:
Copiers and related supplies
Communications and
information systems
Other Businesses
Total
S
ALES BY
G
EOGRAPHIC
A
REA
1998
Thousands of
U.S. dollars
Percentage of
net sales
Millions of yen
Percentage of
net sales
Millions of yen
1999
¥ 891,043
322,425
189,880
¥ 1,403,348
63.5%
23.0
13.5
100.0%
¥ 906,908
327,543
191,548
¥ 1,425,999
63.6%
23.0
13.4
100.0%
$ 7,495,108
2,706,967
1,583,041
$ 11,785,116
1998
Thousands of
U.S. dollars
Percentage of
net sales
Millions of yen
Percentage of
net sales
Millions of yen
1999
¥ 831,339
230,342
252,042
89,625
¥ 1,403,348
59.2%
16.4
18.0
6.4
100.0%
¥ 820,975
239,623
283,373
82,028
¥ 1,425,999
57.6%
16.8
19.9
5.7
100.0%
$ 6,784,918
1,980,355
2,341,926
677,917
$ 11,785,116
Fiscal 1997 Fiscal 1998 Fiscal 1999
Return on sales 2.2% 2.1% 2.1%
Return on shareholders’
investment 7.0% 6.7% 6.4%
Current ratio 1.11 1.04 1.27
Debt-to-equity ratio
(interest-bearing debt to
shareholders’ investment) 1.71 1.42 1.34
Interest coverage 6.4 7.8 6.8