Ricoh 2003 Annual Report Download - page 22

Ricoh stepped up sales of new printing system s that matched a demand shift
away from analog offerings toward networked digital PPCs and color m odels, and
strove to expand sales to m ajor accounts. Sales were solid for DVD drives and
media based on new standards.
Sales in the Americas increased 0.6%, to ¥343.9 billion ( $2,915 million) .
After factoring out the yen’s appreciation against the dollar, regional sales
gained 3.2%.
3 . Europe
With European economies remaining relatively stable, sales of digital PPCs and
printing system s increased. Ricoh strengthened its sales network to reinforce its
brand clout. These efforts helped Ricoh to maintain its top share of the European
market for copiers and MFPs. The yen’s depreciation against the euro contributed
to performance.
Sales in Europe thus increased 13.9%, to ¥354.4 billion ( $3,004 m illion) .
4 . Other
In China and other Asian m arkets, a full-fledged shift in business equipment to dig-
ital networked and color m odels led to an increase in sales of digital PPCs and
printing system s. Dem and for optical discs also continued to im prove, while sem i-
conductor sales rem ained solid.
Sales in this segment increased 23.4%, to ¥143.9 billion ( $1,220 m illion) . Dur-
ing the term , Ricoh established a regional headquarters in Shanghai to reinforce its
operations in the prom ising Chinese market. Ricoh aim s to further integrate its
production, sales, and services while focusing even m ore on customer needs to
strengthen its revenues and earnings in China.
Financial Position
Cash and cash equivalents and tim e deposits rose in line with m arketable securi-
ties repaym ents and maturities. Trade receivables decreased, reflecting additional
collections in Japan and the United States. Inventories declined owing to the
impact of supply chain m anagem ent and other initiatives. Fixed assets decreased,
as Ricoh kept capital expenditures at less than depreciation. Finance receivables
rose, mainly in Japan, and other investments were up, reflecting purchases of
marketable securities and an increase in deferred incom e taxes. As a result, total
assets were ¥1,884.9 billion ( $15,974 million) at the close of fiscal 2003, up ¥51.9
billion from a year earlier.
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CD-R/RW shipments to other regions. Sales of network input/output systems thus
advanced 34.6%, to ¥463.3 billion ( $3,927 million) . This segm ent represented
26.7% of net sales, up 6.1 percentage points.
Ne two rk System Solutio ns
Ricoh strengthened its solutions businesses, such as useware, docum ent m anage-
ment and software. These areas allow Ricoh to help custom ers optimize their
total printing costs. Sales in Japan and overseas increased steadily during the year.
In contrast, sales of personal com puters and servers continued to decline in
Japan, reflecting sluggish information technology spending.
2 . Other Businesses
Sales in this segment increased 16.5%, to ¥217.7 billion ( $1,846 m illion) . This
improvem ent reflected a recovery in the dom estic sem iconductor business, as well
as solid results in Europe and other regions. On top of that, Ricoh enjoyed steady
gains in leasing and other operations. In contrast, sales decreased for m easuring
equipment because of a stagnant business cycle.
CONSOLIDATED SALES BY GEOGRAPHIC AREA
1 . Japan
Although the dom estic economy rem ained very unfavorable, Ricoh responded to
customer needs by pursuing product and sales strategies that boosted sales of
printing system s, such as MFPs and printers.
In the solutions business, Ricoh’s proposals for im proving total cost perfor-
mance were well received, leading to higher sales in this area. At the same time,
sales of standalone analog equipment fell am id the shift toward MFPs and color
models, while personal com puter and server sales also declined.
In other businesses, the adverse business cycle dam pened sales of m easuring
equipment, while dem and for semiconductors began to recover.
As a result, sales in Japan decreased 0.7%, to ¥896.0 billion ( $7,593 million) .
Domestic operations accounted for 51.5% of net sales, down 2.5 percentage
points.
2 . The Americas
Ricoh further broadened and reinforced its sales network, especially in North
Am erica, against a background of a slower U.S. economy, the turmoil in the
Middle East and severe com petition.