Ricoh 2001 Annual Report Download

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ANNUAL REPORT 2 0 0 1

Table of contents

  • Page 1
    ANNUAL R EPORT 2 0 0 1

  • Page 2
    ... ludes c opiers, printers, fax mac hines, personal c omputers, CD-Rec ordable and CD-ReWritable drives and media, and related supplies and servic es. We are also prominent in digital and c onventional c ameras and advanc ed elec tronic devic es. We are rapidly building a solid presenc e worldwide as...

  • Page 3

  • Page 4
    ...ultifunctional printers ( MFPs) and high-speed digital plain-paper copies ( PPCs) . Personal com puter, useware, and docum ent solutions operations contributed significantly in line with custom ers' increasing reliance on networks. Hiroshi Hamada (right ), Chairman and Chief Execut ive Officer, and...

  • Page 5
    ... 1,600 sales and services locations for office im aging equipm ent in the Am ericas and Europe. At year-end, total assets were ¥1,704.8 billion ( $13,530 m illion) , up 10.5%. This reflected additions to fixed assets in buying Lanier Worldwide. We funded m uch of that acquisition with cash, which...

  • Page 6
    ...525 high of fiscal 2000, the price has reached a new record since the close of fiscal 2001. M a n a g e m e n t D r iv e Custom er satisfaction rem ains at the heart of our drive to build corporate value. That is why we were especially pleased that J.D. Power Asia Pacific, Inc., placed us first in...

  • Page 7
    ...Second, we are deploying printing solutions as part of an eventual goal of providing total docum ent solutions. Printing solutions com bine our network-connective hardware with software and consulting to enhance productivity. We have only been fully involved in the printing business for the past few...

  • Page 8
    ...O LD E R S A N D C US TOM ERS IPSiO Color 8000 laser printer ( Aficio AP3800C overseas) , a class leader in term s of speed and reproduction quality. The Im agio Neo 350 ( Aficio 1035) digitally networked MFP received the 2000 Energy Conservation Prize from Japan's Minister of Econom y, Trade and...

  • Page 9
    T H E R IC O H D O C U M EN T H IG H W A Y Our drive to build the digitally networked office dates to the m id-1980s, when we launched a project to develop a digital copier. We have since laid m any m ore technological foundations for what we call the Ricoh Docum ent Highway. This concept aim s ...

  • Page 10
    In p u t D is t r ib u t io n D es kt op docum ent c r e a t io n a n d in f o r m a t io n u s e N e t w o r k , d e v ic e , a n d s ys t em m a n a g em en t In t r a n e t /In t e r n e t D is t r ib u t io n O ut put In p u t S t o r a g e a n d r e t r ie v a l A p p lic a t io n s in t e...

  • Page 11
    .... Micron-level chem icals technology helped us create optical photoconductor drum s for all copier and printer sizes to deliver additional perform ance and durability. Our transfer belts, which transfer toner to paper, replaced energy-wasting coronas and cut costs by elim inating the need for fans...

  • Page 12
    ... SI accelerates and lowers the cost of product development and dramatically enhances imaging performance through its model-specific controls. Our I magio N eo 220/ 270 digital copiers were the world's first office machines to incorporate middleware L SI s. To enable the I magio N eo 350 to start up...

  • Page 13
    ...ers. The network includes Gestetner Holdings PLC, which operates in m ore than 60 countries and specializes in serving sm all and m edium -sized com panies. In January 2001, we wholly acquired Lanier Worldwide, headquartered in Atlanta, Georgia. Lanier has 1,600 sales and services locations offering...

  • Page 14
    ...anier Worldwide (center), attend a management meeting at headquarters. We have full-service hardware, supplies, and software contracts with Crédit A gricole, one of France's largest banks. The contracts include installing around 4,100 laser printers throughout that institution's branch networks in...

  • Page 15
    ...- Ricoh Electronics, Inc., had reached this goal at its production sites in California, Georgia, and Mexico. These facilities refuse, return, reduce, reuse, or recycle all resources that used to go to landfills. That includes food, paper, plastic, glass, office and production supplies, equipm...

  • Page 16
    ...in which they refuse, return, reduce, reuse, or recycle all resources that used to go to landfills. A t the Georgia plant, the Zero H ero character is designed to make zero-waste activities more fun. Employees from Ricoh Electronics' Tustin, California, base work closely with students, parents, and...

  • Page 17
    ... as highspeed network printers. They are thus perfect as core office m achines or for copy and print shops. Other popular products during the year were the 70-cpm Aficio 700 and the 55-cpm F is c a l 2 0 0 1 P e r f o r m a n c e In fiscal 2001, sales of copiers and related supplies rose 5.2%, to...

  • Page 18
    ... ion of America in M iami, Florida, bought t he Aficio 551, a 55-cpm machine t hat speeds up t he duplicat ion and dist ribut ion of t ournament result s. ing its digital copier lineup in response to a shift in dem and from m onochrom e to color m odels. In the year under review, three new com pact...

  • Page 19
    ... Nort h Florida uses t he Aficio AP1600, a 16page-per-minut e monochrome laser print er t hat incorporat es powerful Aficio print management soft ware for client s and net work managers. C o m m u n ic a t io n s a n d I n f o r m a t io n S y s t e m s R ic o h 's P o s it io n Ricoh's activities...

  • Page 20
    ... , which swiftly Florida's Tanning Research Laborat ories, Inc., which makes t he renowned Hawaiian Tropic range of suncare product s, makes heavy use of it s Aficio AP505 color laser print er, which delivers up t o 17 monochrome and five color pages per minut e and can handle full-bleed A3 out put...

  • Page 21
    ... a com pact, plain-paper m odel for PC workgroups, and the FAX5000L, which can be upgraded to the standardized Internet Fax com m unication protocol. Ricoh exhibit ed t he Aficio AP3800C at CeBIT 2001, t he world's biggest office equipment t rade show, in Hannover, Germany. This 1,200-dpi model was...

  • Page 22
    ...on and com plem ents Ricoh's broad technological resources. Here, we m ake electronic devices, photographic equipm ent, education equipm ent, and m eters. We also provide leasing and logistics services to support custom ers' operations. power and battery ICs for cell phones and other m obile equipm...

  • Page 23
    ...h o ld e r s ' I n v e s t m e n t 31 C o n s o lid a t e d S t a t e m e n t s o f C a s h F lo w s 32 N o t e s t o C o n s o lid a t e d F in a n c ia l S t a t e m e n t s 33 R e p o r t o f I n d e p e n d e n t P u b lic A c c o u n t a n t s 52 S e n io r M a n a g e m e n t 53 R ic...

  • Page 24
    ... copiers, digital color copiers, digital duplicators, facsimile machines, and supplies and services Other Businesses Digital and analog cameras, semiconductors, and other equipment and devices Network Input/Output System s Multifunctional printers, laser printers, optical discs, scanners, software...

  • Page 25
    ...mation SALES BY PRODUCT LINE 1 . Office Equipment Copier s and Related Supplies Segm ent sales advanced 5.2%, to ¥915.3 billion ( $7,265 m illion) , accounting for 59.5% of net sales. This growth was largely because of the higher popularity of color and other digital m odels in Japan and high-speed...

  • Page 26
    ...Lease Obligations) Average pay rate Total 2002 2003 Millions of yen Expected maturity date 2007 and 2004 2005 2006 thereafter Convertible Bonds Bonds Medium-Term Notes...46,096 ¥ INTEREST RATE SWAPS Notional amounts ( Millions) Type of swap Average receive rate Average pay rate Total 2002 2003 ...

  • Page 27
    ... m aterially from those projected or im plied elsewhere in this annual report. FOREIGN CURRENCY RISK In the ordinary course of business, Ricoh uses foreign exchange forward contracts to m anage the effects of foreign currency exchange risk on m onetary assets and liabilities denom inated in foreign...

  • Page 28
    ... 7.70 7.70 10.00 At Year-End: Total assets Long-term indebtedness Shareholders' investment Working capital ¥ 1,235,779 309,315 357,795 86,874 ¥ 1,228,959 303,599 351,602 77,318 Return on sales Return on shareholders' investment 0.2 % 0.6 0.5 % 1.4 Common Stock Price Range ( in yen and dollars...

  • Page 29
    Thousands of Millions of yen 1994 1995 1996 1997 1998 1999 2000 U.S. dollars 2001 2001 ¥ 968,318 605,958 326,352 26,167 18,233 9,520 ¥ 1,020,296 628,071 339,891 41,674 24,931 18,593 ¥ 1,113,030 ...

  • Page 30
    ...Ricoh Company, Ltd. and Consolidated Subsidiaries March 31, 2000 and 2001 Millions of yen Thousands of U.S. dollars ASSETS Current Assets: Cash and cash equivalents Time deposits Marketable securities Trade receivables- Notes Accounts...,747 Plant and Equipment, at Cost: Land Buildings Machinery and ...

  • Page 31
    ...Trade payables- Notes Accounts Accrued income taxes Accrued expenses and other Total current liabilities ¥ 2000 2001 2001 150...,406 215,694 35,315 88,617 592,194 Long-Term Liabilities: Long-term indebtedness Accrued pension and severance costs Deferred income taxes 307,962 37,837 17,463 363,262...

  • Page 32
    ... lid a t e d S t a t e m e n t s o f I n c o m e Ricoh Company, Ltd. and Consolidated Subsidiaries For the Years Ended March 31, 1999, 2000 and 2001 1999 Millions of yen 2000 Thousands of U.S. dollars 2001 2001 Net Sales Cost of Sales Gross profit ¥ 1,425,999 857,423 568,576 ¥ 1,447,157 867...

  • Page 33
    ...ld e r s ' I n v e s t m e n t Ricoh Company, Ltd. and Consolidated Subsidiaries For the Years Ended March 31, 1999, 2000 and 2001 1999 Millions of yen 2000 Thousands of U.S. dollars 2001 2001 Common Stock... The accompanying notes to consolidated financial statements are an integral part of these...

  • Page 34
    ... Decrease ( increase) in time deposits Decrease ( increase) in cash deposits for assignment of debt securities Payments for acquisition of Lanier Worldwide, Inc., net of cash acquired Other, net Net cash used in investing activities 486 ( 68,990) ( 60,883) 54,777 ( 2,258) 3,794 ( 25,376) - 9,215...

  • Page 35
    ...) is a worldwide supplier of office automation equipment, in cluding copiers, facsimile machines, data processing systems, printers and related supplies. Ricoh is also well known for its state-of-the-art electronic devices, photographic equipment and others. Ricoh distributes its products prim arily...

  • Page 36
    ... perm anent investm ents. Conversion of convertible bonds Capital lease obligations incurred Transfer of securities to pension fund Assets and liabilities of Ricoh Elemex Corporation in 1999 and Lanier Woldwide, Inc., in 2001: Fair value of assets acquired Liabilities assumed 55,633 32,826 - - 1,446...

  • Page 37
    ... In January 2001, Ricoh com pleted a take-over bid ( "TOB") for Lanier Worldwide, Inc. ( "Lanier") . As a result of this acquisition, Lanier becam e a wholly-owned subsidiary that distributes Lanier brand nam e office equipm ent products in the global m arketplace. The TOB was accounted for as...

  • Page 38
    ... RECEIV ABLES Finance receivables as of March 31, 2000 and 2001 are com prised of lease receivables and installm ent loans. The Com pany's products are leased to custom ers prim arily through Ricoh Leasing Com pany, Ltd., a m ajor subsidiary. These leases are accounted for as sales-type leases in...

  • Page 39
    ...,690 thousand) for the years ended March 31, 1999, 2000 and 2001, respectively. In March 2000, Ricoh contributed certain m arketable equity securities...transfer of the available-for-sale secu- rities has been accounted for as a sale in accordance with SFAS No. 125 and accordingly the recorded pension...

  • Page 40
    ...-COLA WEST JAPAN COMPANY, LIMITED. As a result of these events, the Com pany's ownership interest in this com pany decreased to 22.4% while the underlying equity value was not adversely affected. Ricoh Elemex Corporation, a 44.8% owned major affiliate of which common stock is publicly traded, became...

  • Page 41
    ...2001 2001 Provision for income taxes Shareholders' investment: Net unrealized holding gains ( losses) on available-for-sale securities Pension... 5 0 Reconciliations of the norm al tax rates in Japan with the effective tax rates for the three years ended March 31, 2001, are as follows: 1999 2000 ...

  • Page 42
    ...-TERM BORROWINGS AND TRADE NOTES RECEIV ABLE DISCOUNTED WITH BANKS Short-term borrowings as of March 31, 2000 and 2001 consist of the following: Weighted average interest rate 2000 Millions of yen 2000 Thousands of U.S. dollars 2001 2001 2001 Borrowings, principally from banks Com m ercial paper...

  • Page 43
    ...its subsidiaries had unused lines of credit am ounting to ¥527,925 m illion ( $4,189,881 thousand) of which ¥323,101 m il- lion ( $2,564,294 thousand) related to com m ercial paper and m edium -term notes program s at prevailing interest rates. 1 0 . LONG-TERM INDEBTEDNESS Long-term indebtedness...

  • Page 44
    ...,8 4 2 ( 4 0 ,2 8 9 ) $ 1 2 ,5 0 0 ( 6 5 6 ,3 9 7 ) 3 2 4 ,1 4 3 ¥ $ ( 3 1 9 ,7 5 4 ) 2000 2001 Discount rate Rate of increase in compensation levels Expected long-term rate of return on plan assets 3.0% - 7.25% 3.7% - 5.5% 4.5% - 9.0% 3 .0 % - 7 .7 5 % 3 .7 % - 5 .5 % 4 .5 % - 9 .0 % 4 2

  • Page 45
    The discount rate, rate of increase in com pensation and expected long-term rate of return on plan assets of dom estic pension plans were 3.0%, 3.7% and 4.5%, respectively, for the years ended March 31, 2000 and 2001. The other data shown above are those of foreign pension plans. The net periodic ...

  • Page 46
    ...6 ) 2001: Foreign currency translation adjustments Unrealized gain ( loss) on securities: Unrealized holding gains ( losses) arising during the year Less- Reclassification adjustment for gains ( losses) realized in net income Net unrealized gains ( losses) Minimum pension liability adjustment Other...

  • Page 47
    ... translation adjustments Unrealized gains on securities Minimum pension liability adjustment Accumulated other comprehensive income ( loss) 1999: Beginning balance Change during the year Ending balance 2000: Beginning balance Change during the year Ending balance ¥ ¥ ( 12,407) ( 7,394) ( 19,801...

  • Page 48
    ... 2000 2001 2001 Earnings per share: Basic Diluted ¥ 44.33 40.94 ¥ 60.61 56.06 ¥ 7 6 .8 5 7 1 .0 2 $ 0 .6 1 0 .5 6 1 5 . DERIV ATIVE FINANCIAL INSTRUMENTS The Com pany and certain of its subsidiaries enter into various financial instrum ent contracts in the norm al course of business and...

  • Page 49
    ... CONTINGENT LIABILITIES At March 31, 2001, Ricoh had outstanding contractual com m itm ents for acquisition or construction of plant, equipm ent and other assets aggregating ¥1,355 m illion ( $10,754 thousand) . Ricoh is contingently liable for discounted trade notes receivable on a full recourse...

  • Page 50
    ...m ary of significant accounting policies, as discussed in Note 1. Ricoh's operating segm ents are com prised of office equipm ent, including copiers and related supplies, com m unications and inform ation system s, and others, including optical equipm ent and electronic devices. The following tables...

  • Page 51
    ...based on location of custom ers and long-lived assets for the years ended March 31, 1999, 2000 and 2001 are as follows: Thousands of Millions of yen 1999 2000 U.S. dollars 2001 2001 Sales- Japan The Americas Europe Other Consolidated Long-lived assets- Japan The Americas Europe Other Consolidated...

  • Page 52
    ...for the years ended March 31, 1999, 2000 and 2001. In addition to the disclosure requirem ents under SFAS No. 131, Ricoh discloses this inform ation as supplem ental inform ation in light of the disclosure requirem ents of the Japanese Securities and Exchange Law, which a Japanese public com pany is...

  • Page 53
    ... Operating incom e by geographic area is sales less expense related to the area's operating revenue. No single custom er accounted for 10% or m ore of the total revenues for the periods ended March 31, 1999, 2000 and 2001. 1 9 . RESEARCH AND DEVELOPMENT EXPENSES AND ADVERTISING COSTS The following...

  • Page 54
    ... balance sheets of RICOH COMPANY, LTD. ( a Japanese corporation) and consolidated subsidiaries as of March 31, 2000 and 2001, and the related consolidated statem ents of incom e, shareholders' investm ent and cash flows for each of the three years in the period ended March 31, 2001, expressed in yen...

  • Page 55
    ... Directors Josei Itoh ( Chairman of Nippon Life Insurance Company) Nobuo Mii ( Managing Partner of IGNITE Group) Group Executive Officers Senior Vice Presidents Shuichiro Haba Itsuo Kawaji Keiji Sugita Peter E. Hart Corporate Auditors Hisaaki Koga Hideyuki Takamatsu Kenji Matsuishi Takehiko Wada...

  • Page 56
    ... Lanier de El Salvador, S.A. de C.V . Lanier de Guatemala, S.A. Ricoh Mexicana, S.A. de C.V . Lanier de Panama, S.A. NRG Distribution Corporation Lanier Puerto Rico, Inc. Ricoh Corporation Ricoh Finance Corporation Ricoh Innovations, Inc. Ricoh Latin America, Inc. Savin Corporation Lanier Worldwide...

  • Page 57
    ...China Ltd. Ricoh India Limited Gestetner ( India) Limited Ricoh Malaysia Sdn. Bhd. Ricoh New Zealand Limited Hanimex ( NZ) Limited Camera House Limited Viko New Zealand Limited Ricoh Philippines, Inc. Ricoh Asia Pacific Pte. Ltd. Ricoh Singapore Pte Ltd. Lanier Singapore Pte. Ltd. Ricoh Thailand Ltd...

  • Page 58
    ... France Transfer Agent for Common Stock The Chuo Mitsui Trust and Banking Co., Ltd. 7-1, Kyobashi 1-chome, Chuo-ku, Tokyo 104-0031, Japan For further information and additional copies of our annual report and other publications, please write to the Public Relations Department at our corporate...

  • Page 59
    ...-2888 Fax: ( 852) 2866-1120 Website: http://www.ricoh.com .hk/ RICOH COMPANY, LTD. 15-5, Minam i-Aoyam a 1-chom e, Minato-ku, Tokyo 107-8544, Japan Tel: ( 81) 3-3479-3111 Fax: ( 81) 3-3403-1578 Website: http://www.ricoh.co.jp/ This publication was printed on 100%-recycled paper. Printed in Japan...