Ricoh 2008 Annual Report Download - page 25

To Our Shareholders
and Customers
Fiscal 2008 Highlights
Fiscal 2008 Milestones 16th Mid-Term
Management Plan
Corporate Governance /
CSR
Financial Section
Sustainable Environmental
Management
24
ANNUAL REPORT 2008
2. Industrial Products
Net sales in the Industrial Products segment increased by 8.2%
from the previous corresponding period, to ¥144.3 billion ($1,443
million). Sales in semiconductors, thermal media as well as electric
components increased.
3. Other
Net sales in this category increased by 3.1% from the previous
corresponding period, to ¥166.0 billion ($1,661 million). Sales of
digital cameras increased both in Japan and overseas in addition to
good performance of the financing services in Japan.
SALES BY PRODUCT LINE
2007 2008
Percentage of Percentage of Thousands of
Millions of Yen net sales Millions of Yen net sales U.S.Dollars
Office Solutions
Imaging Solutions ¥1,580,155 76.4% ¥1,709,491 77.0% $17,094,910
Network System Solutions 194,312 9.4 200,082 9.0 2,000,820
Industrial Products 133,387 6.4 144,340 6.5 1,443,400
Other 161,071 7.8 166,076 7.5 1,660,760
Total ¥2,068,925 100.0% ¥2,219,989 100.0% $22,199,890
CONSOLIDATED SALES BY GEOGRAPHIC AREA
1. Japan
The Japanese economy was slowing in the second half of this year
due to the increase in price of crude oil, the decline in stock market
prices, the appreciation of the Yen, the flagging building investment
and so on. Ricoh launched its new products and offered a wide
range of solutions in an effort to cultivate a growing customers'
needs for solutions and color products in the office solutions
market. This effort resulted in a significant sales increase in color
MFPs and printers and sales of IT services also increased as
compared to the previous corresponding period. In the Industrial
Products, sales in thermal media and electronic components
increased. Sales in the Other increased due to the favorable
performance in financing business as well as digital cameras.
Overall sales in Japan increased by 1.4% from the previous
corresponding period.
2. The Americas
In the U.S., a competition in our market become more intensified
while the subprime loan arises has precipitated a decline in the
economy. The Office Solutions segment focused on strengthening
sales structures and expanding product lines in order to provide the
best solutions to meet the diverse range of customer needs for
color, networking and high-speed products. As a result sales of
color MFPs and printers exceeded the last fiscal year’s level. These
factors combined resulted in a 2.0% increase in the sales in the
Americas. The increase in sales in this area would have increased
by 4.3% excluding the effects of foreign currency fluctuations.
3. Europe
As the European economy remaining on a steady footing, the Office
Solutions segment proceeded with further strengthening sales
structures and expanding product lines in order to provide the best
solutions to meet a diverse range of customer needs through the
acquisition of Infotec Europe B.V. As a result, sales of PPCs, MFPs
and printers exceeded last year’s level mainly in color product
categories, bringing overall sales in the Office Solutions segment up
19.1% over the previous corresponding period. Sales in the
Industrial Products also increased due to the favorable performance
of the thermal media and semiconductor business. These factors all
resulted in an 18.9% increase in sales in Europe. The increase in
sales in this area would have increased by 10.8% excluding the
effects of foreign currency fluctuations.
4. Other
The Other segment including China, other Asian countries and
Oceania generally experienced economic evolution, with the Chinese
economic continuious rapid growth despite a slight slowdown in
some areas. Against this backdrop, the Office Solutions segment
achieved higher sales of PPCs, MFPs and printers, largely for color
products, in comparison with the previous corresponding period due
to the increasing demand for both color and monocrome products.
These factors all resulted in a 24.7% increase in overall sales in this
area. The sales increase in this area would have increased by 19.3%
excluding the effects of foreign currency fluctuations.