Ricoh 2010 Annual Report Download

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Table of contents

  • Page 1

  • Page 2
    ...part of these efforts, we publish this report for the purpose of providing information on the Ricoh Group's management policy along with its operational results and financial position for the year ended March 2010. ECONOMIC ENVIRONMENT CORPORATE SOCIAL RESONSIBILITY RICOH 1010 (CORPORATE PROFILE...

  • Page 3
    Corporate Profile Ricoh Company, Ltd., is a global leader in sophisticated office solution. Our products includes copiers, multifunctional and other printers, facsimiles, duplicators and related consumables and services, as well as digital cameras and advanced electronic devices. We are rapidly ...

  • Page 4
    ... and Customers With the group vision "A Winner in the 21st Century" (Build a strong global RICOH brand), the Ricoh Group aims to earn even greater trust and confidence from its customers as a reliable partner for productivity improvement and knowledge management. We deliver innovative products and...

  • Page 5
    To O u r S h a r e h o l d e r s a n d C u s t o m e r s Shiro Kondo President and Chief Executive Officer Masamitsu Sakurai Chairman ANNUAL REPORT 2010 4 Financial Section Corporate Social Responsibility RICOH NOW Fiscal 2010 Highlights and Progress of MTP To Our Shareholders and Customers

  • Page 6
    ...we move forward, we will continue making the utmost effort to accelerate structural reform and strengthen our position in the new growth areas. As a global corporation, we aim to become and remain a highly profitable business. Shiro Kondo President and Chief Executive Officer 5 ANNUAL REPORT 2010

  • Page 7
    ... in late 2008. Our business environment was no exception. In the year ended March 2010 (fiscal 2010), the consolidated net sales of the Ricoh Group declined 3.6% from the previous fiscal year to 2,016.3 billion yen, and all segments, including Imaging and Solutions, posted lower sales than the...

  • Page 8
    ...000 Color MFPs Color production printers imagio MP C7501 series, multifunctional full-color copier series with excellent print quality and high print speed, featuring an energy efficient design and resulting high environmental performance, as well as great ease of use. RICOH Pro C900, a printer...

  • Page 9
    ... of MTP Ô, Industrial Products net sales (billions of yen) RICOH NOW Electric components Corporate Social Responsibility Built-in motherboards, etc. 2008 2009 2010 (FY) 0 50 100 144.3 115.5 101.6 150 Semiconductors Thermal media Loyalty cards Process management tag sheet Power IC, etc. Other...

  • Page 10
    ... 153.10 (Yen) 150 146.04 101.1 100 53.4 50 50 38.41 0 51.8 100 -3.9 132.33 -50 0 2006 -100 2007 2008 2009 9.02 2010 (FY) Ô, Dividend per share (declared) -150 -195.6 33.0 (Yen) 40 33.0 Ô, Equity to total assets (%) 50 40 30 20 10 0 47.0 47.7 48.8 38.8 40.8 20 10 2006 2007...

  • Page 11
    ... transformational efforts have started to pay off steadily-particularly in new growth areas, such as production printing, Managed Document Services (MDS), and IT service. IKON Office Solutions, Inc. (IKON), a new Ricoh Group member since its acquisition in 2008, has also made a great contribution...

  • Page 12
    .... Adding highly capable sales and service staff to our team, the direct sales network of the Group has considerably strengthened. In particular, IKON's strong, long-standing relationships with many Fortune 500 companies in the U.S. market are an advantage. At IKON customers, the replacement of...

  • Page 13
    ANNUAL REPORT 2010 Financial Section Corporate Social Responsibility RICOH NOW Fiscal 2010 Highlights and Progress of MTP To Our Shareholders and Customers Progress of MTP 12

  • Page 14
    ... it will deliver a total package of related offerings such as products and maintenance and other services, drawing from Ricoh's existing technological resources. We aim to grow these new businesses to represent some 25% of the total sales of the Ricoh Group within five years. 13 ANNUAL REPORT 2010

  • Page 15
    ... our management system. My ambition is to lead the Ricoh Group to become a corporation that collectively strives to achieve superb quality as the hallmark of a globally recognized excellent company, and provides opportunities for its employees to develop their career paths in a global field. RICOH...

  • Page 16
    ...-stop solutions to global and local customers; as well as our extensive line-up of imaging products, from lowend to high-end. Ricoh develops and maintains evolving partnerships with customers with its personalized offerings based on a deep understanding of our customers' present and potential needs...

  • Page 17
    ...business domain Customer profile Company A (USA based) A manufacturing company operating its business worldwide. Customer's problem Ô, Output devices (copiers, printers, fax machines) are purchased and managed on a location-by-location, department-by-department basis, not enterprise-wide. Ô, The...

  • Page 18
    ... maintenance Customer Internet connection and configuration Help desk support Develop the network Acquire an exclusive domain name Ô, Install a file server Ô, Acquire an exclusive domain name Ô, Manage email addresses Ô, Virus protection across the entire system Ô, On-site maintenance Ô, Support...

  • Page 19
    ... Ô, Helping the customer's in-house printing production by offering on-site support even after the installation Such solutions are available in our production printing business. Ricoh supports a wide range of customers who operate data centers, copy centers, print shops, commercial printing, direct...

  • Page 20
    ... that need to be addressed by society at large. At the Ricoh Group we want to be part of the solutions to these problems by supporting to create a sustainable society through our business activities. For instance, eliminating waste from production processes does not only reduce production costs but...

  • Page 21
    ... Incinerate toner ink removed CO2 in their from plant-based raw from used paper, emitting the growing process materials and use same amount of CO2 as absorbed during the process (1) the product Production line at Ricoh Manufacturing (Thailand) Ltd. [Recognition from Third Parties] Ô, Ricoh listed...

  • Page 22
    ... employee understanding of the code is measured as part of internal audits conducted across the Group. Ô, Whistle-blowing system Ô, Business Continuity Plans (BCP) Business Continuity Plans (BCP) for providing maintenance services and supplies in the event of an earthquake either centered on Tokyo...

  • Page 23
    ... • Career development support programs • e-learning • RICOH Award and other recognition programs and more Ô, Diversity and work-life balance management The Ricoh Group is making efforts to establish diversity-focused human resources management in a bid to further globalize the brand. Our HR...

  • Page 24
    ... production sites of the Ricoh Group around the globe had acquired ISO 14001 certification. In February 2007, Ricoh and its sales subsidiaries in Japan acquired integrated ISO 14001 certification. During fiscal 2010, the integrated certification was expanded to include services subsidiaries: Ricoh...

  • Page 25
    ... of RICOH Management Discussion and Analysis Critical Accounting Policies Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statements of Changes in Equity Consolidated Statements of Cash Flows Selected Financial Data Mission & Philosophy Senior Management Corporate Data...

  • Page 26
    ... in digital technology and believes that the importance of Ricoh'l Succell Will Depend on Itl Ability to Relpond to Rapid The document imaging and management industry includes products such as copiers, printers, facsimile machines and scanners. The technology used in this industry changes rapidly...

  • Page 27
    ...of Ricoh's production and sales activities in the Americas, Europe and Other, such as China, results in a large proportion of revenues and costs denominated in local currencies. Although Ricoh engages in hedging transactions such as forward contracts with several financial institutions having credit...

  • Page 28
    ... Benefit Obligationl With respect to its employee benefit obligations and plan assets, Ricoh accrues the cost of such benefits based on applicable accounting policies and funds such benefits in accordance with governmental regulations. Currently, there is no immediate and 27 ANNUAL REPORT 2010

  • Page 29
    ... on-going alliance, establish a necessary alliance or make a strategic investment to acquire an interest in a company may adversely affect Ricoh's future financial position and results of operations. ANNUAL REPORT 2010 28 Financial iection Corporate iocial Responsibility Ricoh'l Performance Can...

  • Page 30
    ... or mitigate the effects of such problems, which may affect Ricoh's performance. In addition, the Ricoh is continually expanding its worldwide operations to set in place a global supply chain of its products and services so that we can satisfy our local customer needs faster, more effectively and on...

  • Page 31
    ... to develop (1) document solutions that construct Salel and Diltribution channels for the distribution of its products to end-user customers in Japan: (1) direct sales by Ricoh to end-user customers through 9 domestic subsidiaries and affiliates, (2) sales through independent dealers of office...

  • Page 32
    ...copiers. The total number of Ricoh's sales and service personnel in Japan is approximately 22,100. Similar to Japan, Ricoh employees and contracted maintenance providers provide repair and maintenance services to end-user customers in the overseas market who purchase Ricoh products. The total number...

  • Page 33
    ... with manufacturers. None of these agreements are likely to materially affect Ricoh's business or profitability. covering a wide variety of products. Such agreements grant Ricoh ANNUAL REPORT 2010 32 Financial iection Corporate iocial Responsibility other major international electronics and...

  • Page 34
    ... in the development, manufacturing, sales and servicing of office automation equipment, such as PPCs/ MFPs, laser printers, GELJET printers, production printing products and facsimile machines, as well as digital cameras, semiconductor devices and thermal media. Ricoh supports its office automation...

  • Page 35
    ... income was attributable to lower interest rates reflecting the adverse financial market conditions on a global basis. Colt of lalel: Consolidated cost of sales for fiscal year 2010 decreased by 3.5% year 2009. This decrease was due primarily to the decrease in sales of products as well as the net...

  • Page 36
    ... decrease in customer demand for Ricoh products resulting from the global economic downturn as well as customers' decisions to decrease printing costs by reducing the volume of color printing, which decreased sales of value-added supplies for color products. While net sales generated by IKON, which...

  • Page 37
    ... printing costs by reducing the volume of color printing, which decreased sales of value-added supplies for color products. Decreased sales of semiconductor devices as well as digital cameras also contributed to the overall decrease in sales in Japan. Furthermore, Ricoh lowered the sales price of...

  • Page 38
    ... as a result of Ricoh's group-wide cost reduction efforts. As a result of the above, operating income for fiscal year 2010 increased by 13.0% (or ¥1.6 billion) to ¥14.3 billion from ¥12.6 billion for fiscal year 2009. Europe: Sales in Europe for fiscal year 2010 decreased by 11.6% (or...

  • Page 39
    ...is building up its group cash management system in Japan, the United States and Europe. This cash management system functions as an arrangement whereby Ricoh's funds are pooled together and cash resources are lent and borrowed from one group company to another company, with finance companies located...

  • Page 40
    ... several banks having credit ratings satisfactory to Ricoh. This ¥27.0 billion committed credit line amount is included in the ¥694.0 billion figure for aggregate borrowing facilities. The Company, Ricoh Leasing Co., Ltd. and certain overseas subsidiaries raise capital by issuing commercial paper...

  • Page 41
    ... manufacturing facilities of digital and networking equipment with new engines, toners, semiconductor and thermal media. More specifically, Ricoh plans to use a portion of such amount during fiscal year 2011 to complete the construction of a new building to expand the Ricoh Technology Center located...

  • Page 42
    ...and 2010 towards digital and networking equipment, such as digital PPCs/MFPs, laser printers and production printing products, and manufacturing facilities to maintain or enhance its competitiveness in the industry. Millions of Yen 2008 Imaging & Solutions Industrial Products Other Headquarters and...

  • Page 43
    ... plus a profit margin thereon. As a matter of policy, Ricoh does not discount such prices. On a monthly basis, maintenance service revenues are earned and recognized by Ricoh and billed to the Penlion Accounting The total costs for employees' severance payments and pension plans represented...

  • Page 44
    ... of plan assets is measured using fair values on the plan measurement date. With respect to the discount rate used in the annual actuarial valuation of the pension benefit obligations, the other critical assumption, Ricoh's weighted average discount rates for fiscal years 2008, 2009 and 2010 were...

  • Page 45
    ...generate sufficient taxable income in the tax jurisdictions in which the deferred tax assets are located. ANNUAL REPORT 2010 44 Financial iection Corporate iocial Responsibility RICOH NOW Ricoh records a valuation allowance to reduce its deferred tax Fiscal 2010 Highlights and Progress of MTP...

  • Page 46
    ... deposits Trade receivables: Notes Accounts Less- Allowance for doubtful receivables Current maturities of long-term finance receivables, net Inventories: Finished goods Work in process and raw materials Deferred income taxes and other Total current assets ¥ Millions of Yen 2009 2010 Thousands...

  • Page 47
    ... interests Total equity Total liabilities and equity 975,373 48,977 1,024,350 ¥ 2,513,495 973,341 50,533 1,023,874 ¥ 2,383,943 10,466,032 543,366 11,009,398 $ 25,633,796 ANNUAL REPORT 2010 46 Financial iection Common stock; Authorized - 1,500,000,000 shares in 2009 and 2010 Issued...

  • Page 48
    Consolidated Statements of Income Ricoh Company, Ltd. and Consolidated Subsidiaries For the Years Ended March 31, 2008, 2009 and 2010 2008 Miffions of Yen 2009 2010 Thousands of U.S. Doffars 2010 Net sales: Products Post safes and rentafs Other revenue Totaf ¥ 1,292,228 817,230 110,531 2,219,...

  • Page 49
    ...effect of a change in accounting principle - adoption of accounting - guidance for measurement date change for postretirement benefit plans, net of tax 135,364 Balance at April 1, 2008, as adjusted Loss on disposal of treasury stock Dividends declared and approved to Ricoh Company, Ltd. shareholders...

  • Page 50
    ... received (622) Deferred income taxes 4,970 Losses on disposafs and safes of property, pfant and equipment 2,174 Losses on impairment of securities 142 Pension and severance costs, fess payments (320) Changes in assets and fiabifities, net of effects from acquisition(Increase) decrease in trade...

  • Page 51
    ANNUAL REPORT 2010 Financial iection Corporate iocial Responsibility RICOH NOW Fiscal 2010 Highlights and Progress of MTP To Our ihareholders and Customers 50

  • Page 52
    ...Imaging & Solutions Imaging Solutions Network System Solutions Industrial Products Other - * Ricoh reviced business Segments from fiscal year 2006. The figure of fiscal year 2005 have been revised to conform to current presentation. Sales by Geographic Area Japan Overseas The Americas Europe Other...

  • Page 53
    ...026 174,380 174,519 64,326 106,224 5,500 111,724 117.02 150.08 2008 ¥2,219,989 1,292,262 927,727 746,221 ...ANNUAL REPORT 2010 52 Financial iection ¥907,121 ¥966,273 ¥966,224 ¥1,002,251 ¥1,016,034 ¥ 938,331 ¥ 876,578 $ 9,425,570 Corporate iocial Responsibility RICOH NOW Fiscal 2010...

  • Page 54
    ... yen and dollars) Common stock price range (in yen and dollars) High Low 2,495 1,627 2,735 1,563 2,470 1,637 76.85 71.02 12.00 88.27 82.46 13.00 99.79 96.81 14.00 Consolidated number of employees (at year end) Japan Overseas Total 40.4 33.7 74.2 40.0 34.2 74.2 39.4 35.1 74.6 53 ANNUAL REPORT 2010

  • Page 55
    ...800 2008 ¥126,033 72,762 85,215 2009 ¥124,406 74,886 96,958 2010 ¥109,826 70,329 66,979 Thousands of U.S. Dollars 2010 ...67.6 108.4 41.1 67.4 108.5 ANNUAL REPORT 2010 54 Financial iection Corporate iocial Responsibility 10,466,032 RICOH NOW Fiscal 2010 Highlights and Progress of MTP To Our...

  • Page 56
    ... 49,452 49,043 15,737 32,116 2008 4Q ¥579,577 340,519 239,058 191,572 47,486 40,584 17,781 21,187 Sales by Category Imaging & Solutions Imaging Solutions Network System Solutions Industrial Products Other Sales by Geographic Area Japan Overseas The Americas Europe Other ¥244,734 285,379 103,174...

  • Page 57
    ...,388 112,396 31,668 ¥204,838 281,102 135,239 115,321 30,542 ¥250,051 291,555 141,290 117,117 33,148 ANNUAL REPORT 2010 56 Financial iection Corporate iocial Responsibility RICOH NOW Fiscal 2010 Highlights and Progress of MTP To Our ihareholders and...

  • Page 58
    ... resources more efficiently. 4. Be attenti-e to product lifecycle To pro-ide our products and ser-ices, we spare no effort to reduce en-ironmental effects in all stages of product lifecycle, from procurement, manufacturing, sale, and logistics, to usage, recycling, and disposal. 5. Impro-e employees...

  • Page 59
    ... that Officers and Employees of the company, when engaging in corporate activities to advance the Ricoh Group, act in accordance with social ethics and in full compliance with the law. Ricoh Group Supplier Code of Conduct In 2006, we established the Ricoh Group Supplier Code of Conduct, the purpose...

  • Page 60
    ... Iijima Corporate Auditors (outside) Takao Yuhara Tsukasa Yunoki Corporate Vice Presidents Kiyoto Nagasawa Yutaka Ebi Norihisa Goto Mitsuhiko Ikuno Kenichi Matsubayashi Kazuhiro Yuasa Masayuki Nishimoto Katsumi Kurihara Junichi Matsuno Kunihito Minakawa Seiji Sakata 59 ANNUAL REPORT 2010

  • Page 61
    ... issued: (2) Total number of shares issued: Name 1,500,000,000 744,912,078 (3) Number of shareholders: (4) Major shareholders: 42,281 The Master Trust Bank of Japan, Ltd. (Trust Account) Japan Trustee Services Bank, Ltd. (Trust Account) Nippon Life Insurance Company The Bank of Tokyo-Mitsubishi...

  • Page 62
    ... devices and applications share basic architectures to enable the smooth use and management of data by our customers. 2006- present Compact and highly productive A4Ricoh's first color laser size multifunctional color laser copier printer *5 Aficio SP C231SF (name...

  • Page 63
    ... manufacturing subsidiary in China, named Ricoh Asia Industry (Shenzhen) Ltd. 1995 Ricoh Corporation (presently Ricoh Americas Corporation) acquires U.S.-based sales company Savin Corporation as its subsidiary 1995 Acquires U.K.-based sales company Gestetner Holdings PLC as its subsidiary (presently...

  • Page 64
    ... An West Road, Shanghai, China Phone: +86-21-5238-0222 Facsimile: +86-21-5238-2070 http://www.ricoh.com.cn/ Investors Relations Contact Ô, Ricoh Company, Ltd. IR Department, Corporate Communication Center Ricoh Building, 8-13-1 Ginza, Chuo-ku, Tokyo 104-8222 Japan Phone: +81-3-6278-5254 Facsimile...

  • Page 65
    ... and thoughts will help us produce even better and easier to understand Annual Reports. Please answer the questions on the other side of this page and fax it to us at the number below. IR Department, Ricoh Co., Ltd. Fax: +81-3-3543-9329 Ricoh Bldg., 8-13-1 Ginza, Chuo-ku, Tokyo 104-8222, Japan

  • Page 66
    ... you wish to receive other Ricoh Group publications including Corporate Profile, you can request a printed version and/or download an electronic (PDF) version from our website. http://www.ricoh.com/brochure/ â- Printed version and Electronic (PDF) version • Corporate Profile RICOH 2010 (English...