Ricoh 2003 Annual Report Download - page 20

18
M a n a g e m e n t ’s D is c u s s io n a n d A n a lys is o f F is c a l 2 0 0 3 R e s u lt s
Japan
The Am ericas
Europe
Other
Total
SALES BY GEOGRAPHIC AREA
SALES BY PRODUCT LINE
Office Equipment:
Imaging Solutions
Network Input/Output System s
Network System Solutions
Other Businesses
Total
2002
Thousands of
U.S. dollars
Percentage of
net sales
Millions of yen
Percentage of
net sales
Millions of yen
2 0 0 3
¥ 934,180
344,247
206,962
186,951
¥1,672,340
55.8%
20.6
12.4
11.2
100.0%
¥ 8 5 9 ,7 1 3
4 6 3 ,3 7 9
1 9 7 ,4 8 2
2 1 7 ,7 8 4
¥ 1 ,7 3 8 ,3 5 8
4 9 .5 %
2 6 .7
1 1 .3
1 2 .5
1 0 0 .0 %
$ 7 ,2 8 5 ,7 0 3
3 ,9 2 6 ,9 4 1
1 ,6 7 3 ,5 7 6
1 ,8 4 5 ,6 2 7
$ 1 4 ,7 3 1 ,8 4 7
2002
Thousands of
U.S. dollars
Percentage of
net sales
Millions of yen
Percentage of
net sales
Millions of yen
2 0 0 3
¥ 902,655
341,747
311,312
116,626
¥1,672,340
54.0%
20.4
18.6
7.0
100.0%
¥ 8 9 6 ,0 2 2
3 4 3 ,9 4 0
3 5 4 ,4 7 7
1 4 3 ,9 1 9
¥ 1 ,7 3 8 ,3 5 8
5 1 .5 %
1 9 .8
2 0 .4
8 .3
1 0 0 .0 %
$ 7 ,5 9 3 ,4 0 7
2 ,9 1 4 ,7 4 6
3 ,0 0 4 ,0 4 2
1 ,2 1 9 ,6 5 2
$ 1 4 ,7 3 1 ,8 4 7
Revenues
In fiscal 2003, ended March 31, 2003, consolidated net sales increased 3.9%,
to ¥1,738.3 billion ( $14,732 million) . This was the ninth consecutive rise. The
average exchange rates prevailing during the term were ¥121.96 to the dollar
( up ¥3.14) and ¥121.00 to the euro ( down ¥10.40) . The sales increase would
have been 2.7% without the impact of foreign exchange fluctuations.
Domestic sales were down 0.7%, to ¥896.0 billion ( $7,593 m illion) . On the
positive side, sales expanded for printing systems, such as MFPs ( m ultifunctional
printers) and laser printers. Sales were also favorable for useware, document
management, and other areas of the solutions business. In contrast, sales of
standalone analog equipment fell amid a shift toward MFPs, while sales were off
for personal computer and servers owing mainly to sluggish dom estic demand for
inform ation technology. Sales declined for m easuring equipment as a result of
a slow business cycle. Dom estic sales accounted for 51.5% of net sales, down 2.5
percentage points.
Overseas sales increased 9.4%, to ¥842.3 billion ( $7,138 million) . Sales were
steady despite an econom ic slowdown in the United States and turm oil in the
Middle East. Ricoh continued to perform well in Europe, where the economic
environment stabilized, and in other areas.
By product line, sales of core digital equipment increased solidly, while sales
of strategic printing system s increased significantly in Europe and the United
States. Optical disc and sem iconductor operations enjoyed favorable sales. With-
out the foreign exchange effect, overseas sales would have gained 6.8%. These
sales represented 48.5% of net sales, up 2.5 percentage points.
Operating Income
Gross profit increased 6.5%, to ¥745.3 billion ( $6,317 million) . In both Japan and
abroad, sales were up for high-margin, high-value-added products, notably MFPs
and laser printers. The gross profit gain also reflected ongoing cost reductions
and the yen’s depreciation against the euro. Ricoh incurred additional costs to
cover quality problem s on som e m etering equipment. Selling, general and
administrative expenses increased 7.3%, to ¥611.6 billion ( $5,184 million) ,
reflecting strategic spending on research and development and on basic systems
development. As a result of the above factors, operating income increased 3.1%,
to ¥133.6 billion ( $1,133 m illion) .