Ricoh 2004 Annual Report Download - page 4

To Our Shareholders and Customers
10th Consecutive Year of Increased Sales
and Profits
In fiscal 2004 (the year ended March 31, 2004), the Ricoh
Group achieved 10th consecutive sales growth and 12th consecutive
net income growth. The office equipment market is changing
rapidly, and in order to remain the valued-oriented company
that customers have come expect, the Ricoh Group is carrying
out effective structural reforms. We do more than simply
manufacture and sell copiers and printers; we select and recommend
the most appropriate products and systems that satisfy our
customers’ needs in terms of both cost and performance. We
also promote businesses that help streamline our client companies
and make them more cost efficient. We believe that these
efforts—which are aimed at establishing a corporate structure
that sees things the way our customers do—are the contributing
factors to our favorable performance year after year.
Colorization and digital networking in the office equipment
market are progressing rapidly, and customer needs are changing
even faster. We are able to precisely define customer needs by
staying in touch with our customers and changing when they do
without being influenced by market trends.
In fiscal 2004, the innovative idea of combining printer
and copier affected the basic strategies of the entire Ricoh Group.
Being among the first to notice a trend towards the colorization
of copiers and multifunctional printers (MFPs)—a trend that
started in Japan and is now spreading quickly throughout the
United States and Europe—we were able to readily offer our
customers a wide range of products from our lineup to suit
their particular corporate character and needs. This has led
the Ricoh Group as a whole to some obvious achievements,
i.e., an increase in sales and profit.
Performance in Fiscal 2004
Consolidated net sales in fiscal 2004 came to ¥1,780.2 billion
($17,118 million), up 2.4% from that in the previous fiscal
year, the 10th consecutive year an increase was achieved.
Domestically, increased sales of printing systems, such as
MFPs and laser printers, resulted in domestic sales of ¥914.0
billion ($8,789 million), up 2.0% from that in the previous
fiscal year.
Overseas, sales in the Americas declined, influenced by
the appreciation of the yen against the dollar, while sales in the
office equipment business continued to be favorable in Europe.
By product line, increased sales of color plain-paper copiers
(PPCs) and printing systems, both core Ricoh products,
compensated for decreased sales of stand-alone analog machines
and optical disc drives. As a result, overseas sales went up 2.8%
from that in the previous fiscal year, to ¥866.1 billion
($8,329 million).
Operating income rose 12.2%, to ¥150.0 billion
($1,442 million), thanks to an increase in domestic and
overseas sales of such high-margin, high-value-added products
as MFPs and laser printers. Moreover, despite active spending
in such strategic areas as research and development and the
development of a core system, and despite a temporary
increase in pension expenses following pension reforms, the
relentless implementation of effective cost-cutting measures
succeeded in contributing significantly to this rise in income.
Net income jumped 26.6%, to ¥91.7 billion ($882 million),
for its 12th consecutive increase and 10th consecutive
record high. Basic net income per share climbed 23.9%, to
¥123.63 ($1.19).
Return on shareholders’ investment rose from 11.2% in
3
(%)
0
400
800
1,200
2,000
1,600
(Billions of Yen)
2.9 3.5
4.2
5.2
Net Sales and Return on Sales*
2
3
4
5
6
(FY)
1,447.1
2000 2001
1,538.2
1,672.3
2002
1,738.3
2003
1,780.2
2004
3.7
(Billions of Yen)
Net Income
0
20
40
60
80
100
91.7
2004
72.5
2003
61.6
2002
53.2
2001
41.9
(FY)
2000
(Yen)
0
30
60
90
120
Basic Diluted
Net Income per Share of Common Stock
(FY)
2000
56.06
60.61
2004
123.63
2003
99.79
96.81
2002
88.27
82.46
2001
76.85
71.02
*Return on sales based on net income