Ricoh 2000 Annual Report Download

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Annual Report 2000
Solutions!

Table of contents

  • Page 1
    Annual Report 2000 Solutions!

  • Page 2
    ... automation equipment. Our lineup includes copiers, printers, fax machines, personal computers, CD-Recordable and CD-ReWritable drives and media, and related supplies and services. We are also prominent in digital and conventional cameras and advanced electronic devices. We are rapidly building...

  • Page 3
    ...-currency terms, particularly in Europe and the United States. The Aficio brand of digital imaging systems continued gathering steam internationally. While generally pleasing, the revenue gains paled against our massive bottom-line improvements. Our multifunctional digital copiers and printers were...

  • Page 4
    ...cash and cash equivalents at the close of fiscal 2000 were ¥111.8 billion ($1,086 million), down ¥18.8 billion, or 14.4%. One reason for this decline was an exchange-rate fluctuation effect of ¥4.7 billion ($46 million). • Net Income per Share of Common Stock 70 Basic Diluted 60.61 56 44.16 44...

  • Page 5
    ..., multifunctional equipment. Equally important, more of our products are very energy-efficient and recyclable. One of our most pleasing achievements in fiscal 2000 was winning the 1999 Japan Quality Award, known colloquially in Japan as the JQA. This award is modeled after America's Malcolm...

  • Page 6
    ... strengths in multifunctional systems. These machines filled an important gap in our output equipment range. We call these "printing solutions." It is a pleasure to note that all our printers swiftly became best-sellers in Japan and launched us to market leadership in some key volume segments. But...

  • Page 7
    To Our Shareholders and Customers printers, we will bring out more color models based on high-value-added proprietary technologies. Particular emphases will be color and mid- and high-volume monochrome machines. In our solutions business, we will innovate more support options for specific customer ...

  • Page 8
    105/60 Ricoh has helped the world work better and faster over the years by delivering on the promise of the digital revolution. Now, we take you to warp speed with the brand-new Aficio 1050. This revolutionary PC-networkable rocketship shoots out a full 105 A4 copies per minute from trays that can ...

  • Page 9
    ...our output offerings for networked offices. We focus on mid- to high-volume monochrome and color laser machines. Sales have boomed. According to BNS Co., Ltd., a Japanese market research organization, we shot from nowhere to the No. 1 spot in the domestic market for color laser printers in the first...

  • Page 10
    ...Poste Italiene S.p.A. with a massive 5,600 Aficio series digital copier/printer/fax models and 500 G4 fax machines underscores our drive toward becoming a document solutions provider. By supplying full-fledged software and hardware and administrative support, we're helping Poste Italiene ensure that...

  • Page 11
    ...Poste Italiene S.p.A., Italy's post office, to order 5,600 Aficio series digital copier/printer/fax models and 500 high-end G4 laser fax machines. After installation, we will maintain all this equipment under a full supplies and maintenance contract. All the equipment will be computer-connective and...

  • Page 12
    eCabinet This user-friendly and friendly looking information appliance was the brainchild of Ricoh Silicon Valley, which is at the heart of our bid for premier position in the document solutions race. eCabinet empowers people to focus on the destination instead of the journey. 10

  • Page 13
    ... device rolled out by Ricoh Silicon Valley, Inc., in late 1999 is a stunning embodiment of Ricoh's commitment to bring appliance beauty to document solutions. It is called eCabinet. This "Network Office Appliance," or NOA, connects with all types of office equipment to automatically capture, file...

  • Page 14
    ... the first office equipment manThe 1999 Japan Quality Award recognizes our commitment to customer satisfaction because it truly and production to sales and exterufacturer to capture the Deming measures quality from the customer's perspective. nal and internal support-to Prize. This award was named...

  • Page 15
    ... Jean-Pierre Rosiers, Head of the Energy Efficiency Policy Analysis Division of the International Energy Agency, after the presentation ceremony. The digital copier line at Ricoh Electronics, Inc., maintains exactly the same quality standards as all Ricoh production operations around the world. 13

  • Page 16
    ... scan new documents to memory and replace toner or paper while the machine is outputting another copy job. This model can also serve as a high-speed printer. Other popular offerings included the 35-cpm Aficio 340/350 and the 45-cpm Aficio 450. Both these multifunctional copiers won top markets for...

  • Page 17
    Review of Operations The University of Liège, Belgium, chose the flagship 85-cpm Aficio 850 to process massive volumes of documents quickly, efficiently, and costeffectively. Midland Realty International Ltd. in Hong Kong chose the highly affordable Aficio 180 to output property information for ...

  • Page 18
    ...range will include more high-resolution color copiers. Over the next few years, we will launch successive digital monochrome and color machines and supporting software to provide more document solutions. We now manufacture digital copiers in Japan, the United States, Europe, and China to match local...

  • Page 19
    ... Ricoh's Position Ricoh's activities in this area encompass printers, scanners, CD-Recordable/CD-ReWritable (CD-R/RW) drives and media, fax machines, personal computers, and software and services. As in other operations, customers in this category demand solutions to help them use their • Sales...

  • Page 20
    ... sales from our solutions business. The Aficio AP2700, a 27-page-per-minute printer, is a favorite at Florida Windstorm Underwriting Association, a major insurer in Jacksonville, North Carolina, that uses only Ricoh-made office equipment. Printers Ricoh makes color and medium- and high-speed...

  • Page 21
    ... is a compact, plain-paper model that can be upgraded to perform printing, scanning, and PC faxing. The latter is a versatile, high-volume machine that can handle LAN printing, faxing, scanning, and Internet or G4 mode faxing. In Japan, we further reinforced our line of Super G3 machines, which can...

  • Page 22
    ...optical zoom lens and makes digital photography child's play. Electronic Devices Ricoh develops and manufactures large-scale integrated circuits (LSIs), which are crucial to innovating highresolution copiers and printers. Our semiconductor operations supply high-performance integrated circuits (ICs...

  • Page 23
    ...Data Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statements of Shareholders' Investment Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Report of Independent Public Accountants Senior Management Ricoh's Global Network Corporate Data 22...

  • Page 24
    ... color copiers, stencil duplicators, facsimile machines, and supplies and services Network Input/Output Systems Multifunctional printers, laser printers, optical discs, scanners, software, and supplies and services Network System Solutions Personal computers and servers, network systems, networking...

  • Page 25
    ... by monochrome and color digital copiers and multifunctional printers. Segment Information SALES BY PRODUCT LINE 1. Office Equipment 3. Europe Regional sales dropped 8.8%, to ¥258.5 billion ($2,510 million), but rose 10.4% in local-currency terms. As in the Americas, the growth drivers were...

  • Page 26
    ... Capital Lease Obligations) Average pay rate Total 2001 Thousands of U.S. dollars Expected maturity date 2002 2003 2004 2005 2006 and thereafter Convertible Bonds Bonds Medium-Term Notes Loans Total 0.90 % $ 716,437 $ 29,029 $ 336,932 $ 350,476 $ -$ -$ - 1.88 825,243 - 97,087 - 145,631 97...

  • Page 27
    ... notional amounts by expected maturity date and weighted average interest rates. Notional amounts are generally used to calculate the contractual payments to be exchanged under the contract. Market Risk MARKET RISK EXPOSURE Ricoh is exposed to market risks primarily from changes in foreign currency...

  • Page 28
    ...At Year-End: Total assets Long-term indebtedness Shareholders' investment Working capital Return on sales Return on shareholders' investment ¥ 1,198,717 246,853 362,988 114,809 1.4 % 3.8 ¥ 1,235,779 309,315 357,795 86,874 0.2 % 0.6 Common Stock Price Range (in yen and dollars): High Low ¥ 1,340...

  • Page 29
    1993 1994 Millions of yen 1995 Thousands of U.S. dollars 1996 1997 1998 1999 2000 2000 ¥ 1,021,915 657,750 327,397 17,784 14,716 5,015 46,747 55,846 ¥ 968,318 605,958 326,352 26,167 18,233 9,...

  • Page 30
    Consolidated Balance Sheets Ricoh Company, Ltd. and Consolidated Subsidiaries March 31, 1999 and 2000 ASSETS Current Assets: Cash and cash equivalents Time deposits Marketable securities Trade receivables- Notes Accounts Less-Allowance for doubtful receivables Inventories- Finished goods Work in ...

  • Page 31
    ... SHAREHOLDERS' INVESTMENT Current Liabilities: Short-term borrowings Current maturities of long-term indebtedness Trade payables- Notes Accounts Accrued income taxes Accrued expenses and other Total current liabilities ¥ Millions of yen 1999 2000 Thousands of U.S. dollars 2000 214,290 94,426 43...

  • Page 32
    Consolidated Statements of Income Ricoh Company, Ltd. and Consolidated Subsidiaries For the Years Ended March 31, 1998, 1999 and 2000 1998 Thousands of U.S. dollars 2000 Millions of yen 1999 2000 Net Sales Cost of Sales Gross profit ¥ 1,403,348 838,440 564,908 475,201 89,707 ¥ 1,425,999 857,...

  • Page 33
    ... Ricoh Company, Ltd. and Consolidated Subsidiaries For the Years Ended March 31, 1998, 1999 and 2000 1998 Thousands of U.S. dollars 2000 Millions of yen 1999 2000 Common Stock: Beginning balance Conversion of convertible bonds; 34,170,930 shares in 1998, 52,209 shares in 1999, and 484,328 shares...

  • Page 34
    ... from long-term loans Repayment of long-term loans (Decrease) increase in short-term borrowings, net Proceeds from issuance of long-term debt securities Repayment of long-term debt securities Cash dividends paid Other, net Net cash used in financing activities Effect of Exchange Rate Changes on...

  • Page 35
    ... not only Ricoh brand products but also other brands, such as Gestetner and Savin. Ricoh manufactures its products primarily in 15 plants in Japan and eight plants overseas, which are located in the United States, United Kingdom, France, and China. 2. SIGNIFICANT ACCOUNTING AND REPORTING POLICIES...

  • Page 36
    ... flows: 1998 Millions of yen 2000 1999 Thousands of U.S. dollars 2000 Conversion of convertible bonds Capital lease obligations incurred Transfer of securities to pension fund Assets and liabilities of Ricoh Elemex Corporation Fair value of assets acquired Liabilities assumed ¥ 41,348 ¥ 1,760...

  • Page 37
    ...in the United States of America for filing with the Ministry of Finance in Japan. 4. FINANCE RECEIVABLES Finance receivables as of March 31, 1999 and 2000 are comprised of lease receivables and installment loans. The Company's products are leased to customers primarily through Ricoh Leasing Company...

  • Page 38
    ... owned companies and are stated at cost. The current and noncurrent security types of available-for-sale securities, and the respective cost, gross unrealized holding gains, gross unrealized holding losses and fair value as of March 31, 1999 and 2000 are as follows: Marketable securities: Available...

  • Page 39
    ... WEST JAPAN COMPANY, LIMITED, a 22.4% owned major affiliate. The common stock of this company is publicly traded. The carrying value of the investment in this company was equal to its underlying book value and amounted to ¥33,761 million ($327,777 thousand) as of March 31, 2000. The quoted market...

  • Page 40
    ... of Ricoh with these affiliates for the three years ended March 31, 2000, and the related account balances at March 31, 1999 and 2000 are summarized as follows: Millions of yen 1999 Thousands of U.S. dollars 2000 Account balances- Receivables Payables Millions of yen 2000 1999 Thousands...

  • Page 41
    ... consolidated balance sheets as follows: Millions of yen 1999 2000 Deferred income taxes (Current Assets) Lease deposits and other Accrued expenses and other Deferred income taxes (Long-Term Liabilities) The net changes in the total valuation allowance for the three years ended March 31, 2000 were...

  • Page 42
    ...related to commercial paper and medium-term notes programs at prevailing interest rates. 9. LONG-TERM INDEBTEDNESS Long-term indebtedness as of March 31, 1999 and 2000 consists of the following: Conversion price (Per share) Millions of yen 1999 2000 Thousands of U.S. dollars 2000 Convertible bonds...

  • Page 43
    ...contributory and noncontributory employees pension fund ("EPF") plans covering substantially all of their employees. Under the plans, employees are entitled to lump-sum payments at the time of termination or retirement, or to pension payments. Under the terms of the domestic EPF plan, the Government...

  • Page 44
    ... two years ended March 31, 2000 were as follows: Millions of yen 1999 2000 Thousands of U.S. dollars 2000 Change in benefit obligation: Benefit obligation at beginning of year Service cost Interest cost Plan participants' contribution Actuarial losses (gains) Benefits paid Foreign exchange impact...

  • Page 45
    ... 31, 1999 and a decrease of ¥17,245 million ($167,427 thousand) for the year ended March 31, 2000, respectively. As discussed in Note 5, Ricoh contributed certain marketable equity securities to an employee retirement benefit trust. The securities held in this trust are qualified as plan assets...

  • Page 46
    ... for gains realized in net income Net unrealized gains Minimum pension liability adjustment Other comprehensive income (loss) 1999: Foreign currency translation adjustments Unrealized gain on securities: Unrealized holding gains arising during the year Less-Reclassification adjustment for gains...

  • Page 47
    ... adjustment Accumulated other comprehensive income (loss) 1998: Beginning balance Change during the year Ending balance 1999: Beginning balance Change during the year Ending balance 2000: Beginning balance Change during the year Ending balance ¥ ¥ ¥ ¥ (10,137) (53) (10,190) (10,190) (2,217...

  • Page 48
    ... recognized in income currently. In connection with short-term borrowings and long-term indebtedness, the Company and certain of its subsidiaries have used interest rate swap agreements as a means of managing their interest exposure; at March 31, 1999 and 2000, they had ¥351,893 million and ¥378...

  • Page 49
    ... of future cash flows using estimated interest rates and maturities, discounted using estimated market discount rates (see Note 9). (d) Long-term indebtedness The fair value of each of the long-term indebtedness instruments is based on the quoted price in the most active market or the present value...

  • Page 50
    ... 1998 Millions of yen 1999 2000 Thousands of U.S. dollars 2000 Ricoh's operating segments are comprised of office equipment, including copiers and related supplies, communications and information systems, and others, including optical equipment and electronic devices. The following tables present...

  • Page 51
    ... customers and long-lived assets for the years ended March 31, 1998, 1999 and 2000 are as follows: Millions of yen 1999 Thousands of U.S. dollars 2000 1998 2000 Sales- Japan The Americas Europe Other Consolidated Long-lived assets- Japan The Americas Europe Other Consolidated 831,339 230,342 252...

  • Page 52
    ... No. 131, Ricoh discloses this infor- mation as supplemental information in light of the disclosure requirements of the Japanese Securities and Exchange Law, which a Japanese public company is subject to. 1998 Millions of yen 1999 2000 Thousands of U.S. dollars 2000 Sales- Japan External customers...

  • Page 53
    ... cost plus profit. Operating income by geographic area is sales less expense related to the area's operating revenue. No single customer accounted for 10% or more of the total revenues for the periods ended March 31, 1998, 1999 and 2000. 18. RESEARCH AND DEVELOPMENT EXPENSES AND ADVERTISING COSTS...

  • Page 54
    Report of Independent Public Accountants To the Shareholders and the Board of Directors of Ricoh Company, Ltd.: We have audited the accompanying consolidated balance sheets of RICOH COMPANY, LTD. (a Japanese corporation) and consolidated subsidiaries as of March 31, 1999 and 2000, and the related ...

  • Page 55
    ...2000 Board of Directors Chairman and Chief Executive Officer Executive Officers Executive Vice Presidents Hiroshi Hamada President and Chief Operating Officer...Life Insurance Company) Nobuo Mii (Managing Partner of IGNITE Group) Group Executive Officers Senior Vice Presidents Corporate Auditors ...

  • Page 56
    Ricoh's Global Network As of March 31, 2000 Japan Production The Americas Production Tohoku Ricoh Co., Ltd. Ricoh Elemex Corporation Ricoh Unitechno Co., Ltd. Hasama Ricoh, Inc. Ricoh Microelectronics Co., Ltd. Ricoh Keiki Co., Ltd. Sales and Other Mexico United States Sales and Other Argentina ...

  • Page 57
    ... the Middle East Production Asia and Oceania Production China Ricoh Industrie France S.A. United Kingdom Ricoh UK Products Ltd. Ricoh Wellingborough Products Ltd. GR Advanced Materials Ltd. France Sales and Other Korea Taiwan Sales and Other Australia Ricoh Austria GmbH Gestetner Buromaschinen...

  • Page 58
    ...-269-2377 Website: http://www.bankofny.com/adr Listing in the Amsterdam Security Account System on Amsterdam Stock Exchange February 6, 1936 Number of Shares Authorized 1,000,000,000 shares Number of Shares Issued (as of March 31, 2000) Nominee Amsterdam Stock Exchange Depositaries and Agents for...

  • Page 59

  • Page 60
    ...2000 Fax: (1) 973-882-2506 Website: http://www.ricoh-usa.com/ RICOH EUROPE B.V. Groenelaan 3, P.O. Box 114, 1186 AA Amstelveen, Netherlands Tel: (31) 20-5474111 Fax: (31) 20-5474154 Website: http://www.ricoh-europe.com/ RICOH ASIA PACIFIC PTE. LTD. #15-01/02 The Heeren, 260 Orchard Road, Singapore...