Ricoh 2005 Annual Report Download - page 20

Aficio 2035/2045 series and color MFPs models as Aficio 2232C/2238C
series have won wide acclaim from customers. Laser printers, both
monochrome and color models, have increased sales both in Japan and
overseas. Ricoh Printing Systems, Ltd., a new subsidiary of the Ricoh
Group, has contributed to the sales growth. The company have also
seen continuing increase in sales of the Gel-Jet printer, a low-priced
color printer for office use. As a result, sales of Printing Systems as a
whole increase 28.7% from the previous corresponding period.
As for Other I/O Systems, the company streamlined the optical disc
business by reorganizing key modules such as in-house developed
drives and part units, other than media. As a result, sales of Other I/O
Systems declined 68.4% from the previous corresponding period.
As a key target of these strategies, sales of Network I/O Systems, as a
whole, increased 20.2% from the previous corresponding period to
¥670.8 billion ( $6,269 million) . Sales of this category accounted for
37.0%, up 5.6 percentage points, of net consolidated sales.
Network System So lutions
Sales have continued to increase, both in Japan and overseas, for
solutions business, including support and service, as customers have
embraced proposals to optimize their total printing costs. The demand
for PC servers has begun to recover in Japan. As a result, sales of this
category increased 5.1% from the previous fiscal year to ¥205.8 billion
( $1,924 million) .
2 . Other Businesses
In Japan, while the performance of measuring equipment in the
sluggish period and semiconductor suffering from a lack of demand
declined, optical equipment continued to prosper. Overseas, sales
decreased as a result of selling subsidiaries in optical-related businesses.
As a result, sales of this category decreased 0.1% from the previous
corresponding period to ¥222.2 billion ( $2,077 million).
CONSOLIDATED SALES BY GEOGRAPHIC AREA
1 . Japan
While the Japanese economy has been encouraged by signs of recovery
in the stock market, capital investment, and corporate performance,
high raw material and crude oil prices are a cause for concern. In
addition, the domestic market remains under severe competition.
Against such a backdrop, Office Equipment has promoted product and
sales strategies that meet customer needs. As a result, sales of Printing
Systems such as MFPs and laser printers, and solutions business,
including support and service, have posted solid sales gains. The sales
increase has compensated for the sales decrease in analog equipment,
where the company is advancing the transition to MFPs and color
models. In Other Businesses, while sales of measuring equipment and
semiconductors decreased due to sluggish demand, such businesses as
optical equipment have maintained momentum. As a result, domestic
sales increased 6.4% from the previous corresponding period to ¥972.9
billion ( $9,093 million). Domestic sales accounted for 53.6%, up 2.3
percentage points, of net consolidated sales.
2 . The Amer icas
The economies of the Americas remained robust. Amidst the severe
competition, we focused on increasing color PPCs sales and on printing
systems that cater to the customer needs for networking, color
technology, and higher output speed through our revamped and
reinforced sales network. We also made an effort to boost sales to major
accounts. Due to the appreciation of the yen against the U.S. dollar,
however, sales in the Americas as a whole fell 0.2% from the previous
corresponding period to ¥325.5 billion ( $3,043 million). Excluding the
effect of the yen’s appreciation against the U.S. dollar, sales in the
Americas as a whole increased 4.8%.
3 . Eur ope
The European economy has become relatively stable. Sales of color
PPC and printing systems have increased, and the Ricoh Group has
maintained its market share lead in photocopiers market. Although
sales of optical discs, from which are focusing to media business,
decreased, due partly to the yen’s depreciation against the euro, sales in
Europe as a whole increased 1.6% from the previous corresponding
period to ¥408.9 billion ( $3,822 million) .
4 . Other
The demand shift to color and MFPs in office equipment has picked up
momentum in China, Asia and other areas. As a result, sales of color
PPC and printing systems have increased from the previous
corresponding period. Due to the downsizing of the optical disc
business, the sluggish demand for semiconductors and the
aforementioned sale of optical-related analog consolidated subsidiaries,
however, sales in Other area decreased. Sales of the others decreased
22.4% to ¥106.6 billion ( $997 million) .
Financial Position
Total assets have increased considerably due primarily to an increase in
operating assets due to sales growth and the consolidation of Ricoh
Printing Systems, Ltd., which was acquired in October 2004.
In Assets, part of the decrease in cash and cash equivalents and in
marketable securities from the end of the previous period was
appropriated to the aforementioned acquisition. Trade receivables
increased, primarily in Japan and inventories increased. Property, plant
and equipment increased, while finance receivables increased due to
19 ANNUAL REPORT 2005