FLASH REPORT
Year ended March 31, 2002
(Results for the Period from April 1, 2001 to March 31, 2002)
Index
Page
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Ricoh Company, Ltd. And Consolidated Subsidiaries
Policies 1
Performance 3
Ricoh Company, Ltd. And Consolidated Subsidiaries - Flash Report 11
Group Position 12
Consolidated Performance
1. Consolidated Statements of Income 13
2. Net Income Per Share 13
3. Consolidated Sales by Product Line 14
4. Consolidated Sales by Category 15
5. Balance Sheets (Consolidated) 17
6. Retained Earnings 17
7. Statements of Cash Flow (Consolidated) 18
8. Segment Information 19
9. Significant Accounting Policies (Consolidated) 23
10. Notes to Consolidated Financial Statements 24
Ricoh Company, Ltd.
* The Company bases the estimates above on information currently available to
management, which involves risks and uncertainties that would cause actual
results to differ materially from those projected.
POLICIES AND PERFORMANCE
1. POLICIES
(1) Basic Management
The vision of Ricoh Group ("Ricoh") is to be a winner in the 21st century.
Under that banner, we aim to retain customer and community trust, secure
top market shares by building new value, and become an outstanding global
business that is highly influential within the industries in which we
operate.
To help raise office productivity, we have centered our business domains on
the concept of "Image Communication," through which we globally offer
products and services that customers truly need.
Our 13th medium-term management plan, a three-year initiative that ended in
March 2002, had three prime objectives for the entire Ricoh:
i. Renovation of group management with the aim of increasing corporate
value
ii Reform of business and profitability Structure with the aim of
maintaining steady growth
iii. Reinforcement of cash flow management and realization of low cost
business structure
This fiscal term is the last year of the management plan, and we strove to
achieve these objectives on a whole group basis.
(2) Dividend Policy
Ricoh endeavors to ensure stable dividends by boosting profitability while
increasing retained earnings to reinforce its corporate structure and
cultivate new businesses. Ricoh uses those retained earnings to strengthen
core businesses and invest in new fields from medium- and long-term
perspectives.
(3) Thinking and Policies on Reducing Minimal Investment Lots
Ricoh believes that reducing the minimum number of shares required to
invest in Ricoh could help attract a broader range of investors to the
equity markets while enhancing the liquidity of its shares. However, many
investors already trade in Ricoh's shares, so management has concluded that
there is no immediate need to reduce the minimum investment lot.
Ricoh plans to keep close tabs on investment patterns and its shareholder
composition, and will consider taking steps to alter the minimum lot
requirement if need be.
(4) Medium- and Long-Term Management Strategies and Management Structure
Initiatives
Ricoh's prime management priority in building corporate value is to improve
customer satisfaction, which is at the heart of management strategies and
policies. The J.D. Power Asia Pacific survey has placed Ricoh first in
customer satisfaction among Japanese copier makers for the seventh year
running. This heightened profile helped generate the solid results of
recent years.
Ricoh has restructured so it can keep expanding corporate value. As part of
that effort, it instituted an executive officer system, under which it
transferred considerable authority and responsibility to individual
businesses. It also appointed external directors to the board.
Our basic strategies for delivering growth are to:
- Expand our market share in networked systems
- Deploy printing solutions
- Strengthen our operations in five key regional markets worldwide (Japan,
the Americas, Europe, Asia and Oceania, and China)
In expanding our share of the networked imaging equipment market, we have
focused on meeting demand for speed and sophisticated networking. Several
key models have been particularly well received. Among them are low-cost,
fast digital copiers like the Imagio MF8570 (sold as the Aficio 850
overseas) and the MF105 Pro (Aficio 1050). The growing popularity of our
digital offerings has helped us improve our position in the market for
high-speed models.
We have also done extremely well in Japan and abroad with the Imagio Neo
350/450 (Aficio 1035/1045). This new generation of copiers makes it simple
to digitalize, store, and retrieve documents, and has helped us keep and
extend our lead in the market for digital copiers including multifunctional
printers (MFPs).
Imagio Neo series machines are based on the Ricoh Document Highway concept,
a common software platform that lets users link equipment and applications
as they desire, and is compatible with the Ridoc Document System, a
-1-
user-friendly setup that enhances document management. We have sold many of
these machines packaged with solutions software, which has contributed
greatly to performance.
The Imagio Neo series includes everything from low-end models that provide
information technology support for small and medium-sized offices to
high-speed offerings that function as central office machines.
With demand for color equipment surging, we have enjoyed excellent sales of
the IPSiO Color 8000 (Aficio AP3800C), a printer that offers output speeds
and pricing comparable to monochrome platforms. This offering has
reinforced our No. 1 share of the domestic color laser market while helping
us bolster our presence internationally.
Over the past few years, customers have shifted swiftly away from
standalone machines toward networkable equipment and supporting software
and services. They increasingly seek new solutions that lower the total
cost of ownership and streamline office work.
Ricoh responded swiftly to this trend in Japan by establishing five
regional headquarters, in the Tohoku, Chubu, Kansai, Chugoku, and Kyushu
areas. Such a setup can help us spread our solutions expertise and support
capabilities regionally while consolidating the peripheral operations of
regional sales companies, thereby lowering Group costs.
To strengthen global operations, we built an international direct sales
network. The latest component of this setup is Lanier Worldwide, Inc.,
which we acquired in January 2001. This subsidiary sells and services
imaging and other office equipment in the United States and Europe.
This purchase helped us step up our drive to become a global solutions
provider, cultivating large corporations and other new customers, which led
us to increase sales of networked and solutions products.
Ricoh has taken various steps to build a high-efficiency, low-cost
operating structure to overcome the challenges of deflation. We are working
intensively on our supply chain management system to improve customer
satisfaction while enhancing cash flow. We have also instituted programs to
overhaul revenue and earnings structures for everything from Group sales,
and development to production and peripheral operations.
(5) Challenges
Our 13th medium-term management plan was instrumental in allowing us to
deliver such solid results.
That said, we consider it crucial to keep responding to the growing
sophistication of customer needs and intensifying competition in adverse
economic conditions.
It will be particularly important to better identify underlying demand. As
well as helping improve customer productivity and cutting costs, we will
concentrate on exploring issues that existing customers have yet to
consider while doing even more to seek solutions with our customers.
To those ends, we intend to deliver new value for customers through our
customer satisfaction-oriented management and efforts to reinforce our
technological capabilities.
Ricoh has already earned top marks from third-party organizations for its
environmental initiatives, and considers it imperative to continue
championing the environment. In line with that goal, we have instituted the
Ricoh Action Plan for fiscal 2002 through 2004, which builds on the
achievement of its preceding three-year plan. Under this new initiative, we
aim to go beyond responding to environmental issues and safeguarding the
environment to generate profits through our environmental management
program.
The next fiscal term is the first year of our 14th medium-term management
plan (April 2002 through March 2005), another three-year effort, and will
focus on pursuing and building on the reforms of the 13th plan.
In other words, we will strive to reinforce our technological base so we
can become the world's best manufacturer as a winner in the 21st century.
We will also change our business focus from merely being a producer to
become a solutions provider. At the same time, we will strive companywide
to cultivate the human resources needed for such a transformation.
In the years ahead, we will endeavor to contribute both to our communities
and the environment as part of our social mission while continuing to
achieve high levels of trust from our customers and other stakeholders and
delivering new value.
-2-
2. PERFORMANCE
(1) Overview
(Three months ended March 31, 2002 and 2001) (Billions of yen)
- ---------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Change
March 31, 2002 March 31, 2001
- ---------------------------------------------------------------------------------------------------------------------
Domestic sales 238.1 248.6 -4.2%
Overseas sales 212.7 180.3 18.0%
Net sales 450.9 428.9 5.1%
Gross profit 184.4 169.6 8.7%
Operating income 40.0 28.1 42.5%
Income before income taxes 35.5 28.6 24.0%
Net income 18.3 14.9 22.5%
- ---------------------------------------------------------------------------------------------------------------------
Net income per share-basic (yen) 25.89 21.57 +4.32
Net income per share-diluted (yen) 24.22 19.86 +4.36
Return on equity (%) 3.0 2.7 +0.3% point
Income before income taxes on total assets (%) 2.0 1.7 +0.3% point
Income before income taxes on net sales (%) 7.9 6.7 +1.2% points
- ---------------------------------------------------------------------------------------------------------------------
Exchange rate (US$) 132.50 118.17 +14.33
Exchange rate (EURO) 116.21 108.99 +7.22
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Expenditure for plant and equipment 19.0 22.6 -3.6
Depreciation for tangible fixed assets 20.3 16.9 +3.4
R&D Expenditure 22.1 22.3 -0.1
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(Full year) (Billions of yen)
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Year ended Year ended Change
March 31, 2002 March 31, 2001
- -------------------------------------------------------------------------------------------------------------------
Domestic sales 902.6 930.4 -3.0%
Overseas sales 769.6 607.8 26.6%
Net sales 1,672.3 1,538.2 8.7%
Gross profit 699.9 613.3 14.1%
Operating income 129.6 105.1 23.4%
Income before income taxes 113.9 97.7 16.6%
Net income 61.6 53.2 15.8%
- -------------------------------------------------------------------------------------------------------------------
Net income per share-basic (yen) 88.27 76.85 +11.42
Net income per share-diluted (yen) 82.46 71.02 +11.44
Return on equity (%) 10.4 9.7 +0.7% point
Income before income taxes on total assets (%) 6.4 6.0 +0.4% point
Income before income taxes on net sales (%) 6.8 6.4 +0.4% point
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Total assets 1,832.9 1,704.7 +128.1
Shareholders' equity 633.0 556.7 +76.2
Debt 561.4 538.9 +22.4
Equity ratio (%) 34.5 32.7 +1.8% points
Equity per share (yen) 870.63 803.64 +66.99
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Cash flows from operating activities: 105.1 102.7 +2.4
Cash flows from investing activities: -65.7 -62.7 -3.0
Cash flows from financing activities: 36.2 -88.3 +124.6
Cash and cash equivalents at end of year 142.5 64.4 +78.0
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Exchange rate (US$) 125.10 110.60 +14.50
Exchange rate (EURO) 110.60 100.41 +10.19
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Expenditure for plant and equipment 75.6 73.3 +2.3
Depreciation for tangible fixed assets 73.7 62.1 +11.6
R&D Expenditure 80.7 78.2 +2.5
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Number of employees (Japan) (thousand people) 40.0 40.5 -0.5
Number of employees (Overseas) (thousand people) 34.2 33.8 +0.4
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-4-
*Overview
- - In fiscal 2002, ended March 31, 2002, Ricoh increased consolidated net sales
8.7%, to 1,672.3 billion yen. It was an eighth consecutive growth. The increase
would have been 4.0% without the foreign exchange impact.
- - Domestic sales were off 3.0%. Although sales of printing systems increased
28.6%, other products area was down due to a downturn in the Japanese economy,
as well as constrained corporate information technology capital expenditure. In
contrast, overseas sales gained 26.6%, despite the uncertainty posed by the U.S.
economy, and so on.. The main factors were that demand remained solid for core
digital imaging and printing systems, as well as new subsidiary Lanier
Worldwide, Inc. and contributions from the low yen. Overseas sales would have
improved 14.6% without the exchange rate impact.
- - Operating income was up 23.4%. This stemmed mainly from rising sales of core
digital plain-paper copiers (PPCs), MFPs, and other high-value-added offerings,
the fruits of ongoing cost-cutting initiatives, and the yen's depreciation. Net
other expenses increased owing to lower interest and dividend income amid
lackluster financial markets, higher foreign currency losses, and rises in other
costs. Income before income taxes thereby improved 16.6%.
- - As a result of these factors, net income advanced 15.8%-a 10th consecutive
gain.
- - Cash dividends per share of common stock were up 1.00 yen, to 13.00 yen. This
reflected a 6.00 yen interim dividend and a 7.00 yen year-end dividend that was
1.00 yen higher than the previous year.
*Financial Position
- - Ricoh is enhancing its cash flow management efforts to expand free cash flow
and continually strengthen its financial position.
- - At the close of fiscal 2002, higher net income and depreciation and
amortization added 135.4 billion yen to cash flows from operating activities, up
20.0 billion yen from the previous fiscal year. Changes in assets and
liabilities included 17.2 billion yen allocated in preparation for the maturity
of Ricoh's sixth and eighth convertible bonds by year-end. Changes would have
been as in the previous fiscal year if not for this factor. Most of those bonds
were converted upon maturity. Thus, net cash provided by operating activities
increased to 105.1 billion yen.
- - During the term, Ricoh invested 75.2 billion yen to set up new manufacturing
lines and develop new products. Holdings of available-for-sale securities fell
30.1 billion yen owing to changes in the Ricoh's investment approach, however
the investment is properly controlled in the cash account. As a result of these
and other miscellaneous factors, net cash used in investing activities dropped
to 65.7 billion yen.
- - Consequently, the free cash flow generated by operating and investing
activities increased to 39.3 billion yen.
- - In the year under review, Ricoh endeavored to cut interest-bearing debt in
Japan and abroad while securing funds for future expansion through its fourth
and fifth straight bond issues, worth 35 billion yen and 25 billion yen,
respectively. Owing to these factors and the payment of cash dividends, net cash
used in financing activities increased to 36.2 billion yen.
- - Thus, cash and cash equivalents at the end of the year were up 78.0 billion
yen, to 142.5 billion yen.
-5-
*Consolidated Sales by Category
Imaging Solutions (sales up 7.7%, to 934.1 billion yen)
*Digital Imaging Solutions (sales up 14.0%, to 654.4 billion yen)
In core digital PPCs, Ricoh strengthened its lineup with new offerings
covering all segments of the market, from the low-end Imagio MF1340/1540
(Aficio 1013/1015) to the high speed Imagio MF105Pro (Aficio 1050).
Domestic sales were down owing to the Japanese recession and declining
demand. However, overseas sales soared for digital PPCs, with color models
also enjoying gains.
*Other Imaging Solutions (sales down 4.5%, to 279.7 billion yen)
The sales decline reflected a shift from analog PPCs to digital models
offering superior expandability and functions.
Network Input/Output Systems (sales up 31.5%, to 344.2 billion yen)
*Printing Systems (sales up 37.7%, to 299.2 billion yen)
In Japan and overseas, the focus of customer demand continued to shift
toward speed, networking, saving of the total costs of ownership and office
productivity enhancement. Ricoh responded to those trends by releasing
several MFPs that streamline document input/output, sharing, and storage,
notably the Imagio Neo 220/270(Aficio 1022/1027) and the Imagio Neo
750/600. Ricoh augmented its very popular IPSiO Color 8000 (Aficio
AP3800C), a fast, high-resolution color printer, with such models as the
IPSiO Color 8150, which centralizes the management of color documents, and
the affordable IPSiO Color 1600 color laser printer. These new offerings
formed part of a groupwide drive to increase printer sales and strengthen
printing solutions capabilities.
*Other Input/Output Systems (sales up 1.1%, to 45.0 billion yen)
Sales of this category were up only slightly owing to a switch to new
standards in optical disc-related products.
Network System Solutions (sales down 1.2%, to 206.9 billion yen)
Ricoh has focused increasingly on useware, document management, and other
solutions businesses in response to a shift in customer demand away from
standalone models toward networked hardware, software, and services.
Nonetheless, sales of network equipment in this category declined due to sales
down of personal computers and servers owing to constrained corporate spending
on information technology in Japan.
Other Businesses (sales down 6.5%, to 186.9 billion yen)
Sales declined in this category mainly because of falling demand for
semiconductors, particularly for large-scale integrated circuits used in mobile
communications equipment. Sales of metering equipment was again sluggish,
reflecting stagnant demand.
-6-
* Consolidated Sales by Geographic Area
Japan (sales up 3.0%, to 902.6 billion yen)
The Japanese economy remained in recession during the year, causing companies to
restrain information technology spending and restructure. In this circumstances,
Ricoh increased sales of printing systems by 28.6%. MFPs performed particularly
well, reflecting launches of offerings that meet customer needs and expanded
marketing. On the other hand, sales declined for such offerings as analog PPCs,
facsimile machines, personal computers, and servers. Overall office equipment
sales thus decreased 2.0%. Including semiconductors and metering equipment,
sales in Japan were off 3.0%.
The Americas (sales up 35.2%, to 341.7 billion yen)
Ricoh offset the effects of lower capital expenditure and an economic slowdown
in the United States by expanding and reinforcing its sales networks,
particularly in the North American market, thus increasing sales of core digital
PPCs and MFPs. Lanier Worldwide, which Ricoh acquired in the previous fiscal
year, contributed significantly to results through a successful strategy of
expanding digital equipment and strengthening sales to major account clients.
Europe (sales up 25.8%, to 311.3 billion yen)
Ricoh's multibrand strategy continued to go from strength to strength in a
European market that remained basically stable during the term, with the Company
maintaining top market shares in both digital PPCs and MFPs.
Others (sales up 8.3%, to 116.6 billion yen)
Sales benefited from Ricoh's shift to digital and networked models. Ricoh aims
to take advantage of China's admission to the World Trade Organization and that
nation's deregulation and initiatives to open its market by strengthening its
local sales network.
-7-
*Segment Information
Business Segment
Office Equipment
Sales of core digital PPCs and MFPs grew steadily, particularly overseas,
reflecting launches of fast digital machines and high-value-added offerings that
handle everything from document input/output to document sharing and
administration. Sales and operating income in this segment also benefited from
the yen's depreciation. Ricoh increased capital spending, especially in research
and development. In addition, total assets increased owing to the lower yen,
which overshadowed efforts to reduce inventories in Japan and overseas.
Other Businesses
Both sales and operating income in this segment were down owing to sluggish
demand for semiconductors and metering equipment.
(Billions of yen)
- -------------------------------------------------------------------------------------------------
Year ended Year ended Change
March 31, 2002 March 31, 2001
- -------------------------------------------------------------------------------------------------
Identifiable assets:
Office Equipment 1,219.7 1,179.4 +40.2
Other Businesses 185.1 180.1 +4.9
- -------------------------------------------------------------------------------------------------
Capital expenditure:
Office Equipment 68.5 61.8 +6.6
Other Businesses 5.6 10.2 -4.6
- -------------------------------------------------------------------------------------------------
Depreciation and Amortization:
Office Equipment 64.4 52.9 +11.5
Other Businesses 7.4 7.5 -0.1
- -------------------------------------------------------------------------------------------------
-8-
Geographic Segment
Japan
Sales of business equipment rose amid solid exports and the favorable yen,
offsetting decreased sales of semiconductors and metering equipment. On top of
that, operating income was up significantly, reflecting a shift toward
high-value-added products and structural reforms that lowered costs.
The Americas
Despite a U.S. economic slowdown and intensified competition, Ricoh was able to
expand existing sales channels. At the same time, subsidiary Lanier Worldwide
bore fruit with its strategy of bolstering sales of digital equipment and
stepping up sales to major accounts. As a result, both segment sales and
operating income improved.
Europe
Operating costs rose temporarily during the term owing to expenses associated
with production changeovers to new models. Nonetheless, Ricoh continued to
deliver favorable sales growth, centered on digital PPCs and MFPs, leading to
gains in regional sales and operating income.
Others
Sales and operating income grew owing to steadily expanded sales in China and
Asia and Oceania, supported by high productivity in the factories in China.
-9-
(2) Expectations
* Overall economic prospects and countermeasures by the Ricoh Group in fiscal
2003
While many factors remain unclear on the domestic economic front, there are
signs of a recovery in some sectors, and we expect a gradual turnaround from the
second half of the year. Overseas, the United States appears to be on track for
a recovery.
Against this backdrop, Ricoh will strive to expand sales, earnings, and cash
flow through the following initiatives under its 14th medium-term management
plan (April 2002 through March 2005) in its five operating regions of Japan, the
Americas, Europe, Asian and Oceania, and China.
- - Strengthen global responsiveness to step up sales to large corporations
- - Reinforce capabilities in color equipment (PPCs, MFPs, and laser printers) in
line with growing demand for color models
- - Provide optimal printing solutions that meet customers' requirements for
digital and networked environments and bolster printing equipment offerings,
centered on MFPs
- - Continue restructuring to improve revenues earnings, and cash flow
Exchange Rate Assumptions for Fiscal 2003
US$1 = 125 yen (125.10 yen in previous fiscal year)
Euro1 = 110 yen (110.60 yen in previous fiscal year)
(Billions of yen)
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Year ended Year ended Change
March 31, 2003 March 31, 2002
(Forecast)
- -------------------------------------------------------------------------------------------------
Domestic sales 945.0 902.6 4.7%
Overseas sales 828.0 769.6 7.6%
Net sales 1,773.0 1,672.3 6.0%(*1)
Gross profit 743.2 699.9 6.2%
Operating income 136.0 129.6 4.9%
Income before income taxes 122.0 113.9 7.1%
Net income 67.5 61.6 9.6%(*2)
- -------------------------------------------------------------------------------------------------
Notes:
*1 Net sales would be ninth consecutive year of growth.
*2 Net income would be eleventh consecutive year of growth.
* Ricoh bases the estimates above on information currently available to
management, which involves risks and uncertainties that would cause actual
results to differ materially from those projected.
-10-
RICOH COMPANY, LTD. AND CONSOLIDATED SUBSIDIARIES
FLASH REPORT (Consolidated. Year ended March 31, 2002)
DATE OF APPROVAL FOR THE FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2002,
AT THE BOARD OF DIRECTORS' MEETING: MAY 8, 2002
1. RESULTS FOR THE PERIOD FROM APRIL 1, 2001 TO MARCH 31, 2002
(1) Operating Results
(Millions of yen)
- -------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2002 March 31, 2001
- -------------------------------------------------------------------------------------
Net sales 1,672,340 1,538,262
(% change from previous period) 8.7 6.3
Operating income 129,695 105,105
(% change from previous period) 23.4 18.2
Income before income taxes 113,950 97,765
(% change from previous period) 16.6 38.9
Net income 61,614 53,228
(% change from previous period) 15.8 27.0
Net income per share-basic (yen) 88.27 76.85
Net income per share-diluted (yen) 82.46 71.02
Return on equity (%) 10.4 9.7
Income before income taxes on total assets (%) 6.4 6.0
Income before income taxes on net sales (%) 6.8 6.4
- -------------------------------------------------------------------------------------
Note: i. Equity in earnings of affiliates: 1,891 million yen (2,098 million
yen in previous period)
ii. Some changes have been made in accounting method
iii. Average number of shares outstanding: 698,025,167 shares (692,616,894
shares in previous period)
(2) Financial Position
(Millions of yen)
- ---------------------------------------------------------------------
March 31, 2002 March 31, 2001
- ---------------------------------------------------------------------
Total assets 1,832,928 1,704,791
Shareholders' equity 633,020 556,728
Equity ratio (%) 34.5 32.7
Equity per share (yen) 870.63 803.64
- ---------------------------------------------------------------------
(3) Cash Flows
(Millions of yen)
- -----------------------------------------------------------------------------------
Year ended Year ended
March 31, 2002 March 31, 2001
- -----------------------------------------------------------------------------------
Cash flows from operating activities 105,138 102,728
Cash flows from investing activities -65,792 -62,728
Cash flows from financing activities 36,235 -88,382
Cash and cash equivalents at end of year 142,508 64,457
- -----------------------------------------------------------------------------------
(4) Items relating to the scale of consolidation and the application of the
equity method:
Number of consolidated subsidiaries: 331; nonconsolidated subsidiaries: 45;
affiliated companies: 28
(5) Changes in accounting method, etc.:
Consolidated subsidiaries: 18 additions; 5 removals
Companies accounted for by the equity method: 6 additions; 5 removals
2. FORECAST OF OPERATING RESULTS FROM APRIL 1, 2002 TO MARCH 31, 2003
(Millions of yen)
- -----------------------------------------------------------------------
Half year ended Year ended
September 30, 2002 March 31, 2003
- -----------------------------------------------------------------------
Net sales 875,000 1,773,000
Operating income 62,000 136,000
Income before income taxes 55,000 122,000
Net income 30,500 67,500
- -----------------------------------------------------------------------
Notes: Net income per share (Consolidated) 92.84 yen
In accordance with Japanese regulations, Ricoh has issued forecast for its
financial results for the half year ended September 30, 2002 and year ended
March 31, 2003. These forecast are forward-looking statements based on a number
of assumptions and beliefs in light of information currently available to
management and subject risks and uncertainties.
-11-
GROUP POSITION
The Ricoh Group comprises 376 subsidiaries and 28 affiliates.
Their development, manufacturing, sales, and service activities center on office
equipment (copiers and related supplies and communications and information
systems), optical equipment, and other devices. The parent company heads
development. The parent company and subsidiaries and affiliates maintain an
integrated domestic and international manufacturing structure. Below, we have
listed our main product areas and the positions of key subsidiaries and
affiliates.
Office Equipment
In this business category, the Company provides products and systems that help
enhance the office productivity of customers. Major products include:
Digital/analog copiers, multifunctional printers (MFPs), laser printers,
facsimile machines, digital duplicators, optical disks. Ricoh also provides
solution systems including personal computers and servers, utilizing its
information technology. The Company also provides support, service, and related
supplies, as well as use ware including IT environment setup, network
administration, and user support.
[Main Subsidiaries and Affiliates]
Production
Japan -- Tohoku Ricoh Co., Ltd.; Ricoh Elemex Corporation, Ricoh Unitechno
Co., Ltd., Hasama Ricoh Inc., Ricoh Microelectronics Co., Ltd., Ricoh Keiki
Co., Ltd.
The Americas -- Ricoh Electronics, Inc.
Europe -- Ricoh UK Products Ltd. and Ricoh Industrie France S.A.
Other regions -- Ricoh Asia Industry (Shenzhen) Ltd., Sindo Ricoh Co.,
Ltd., Shanghai Ricoh Facsimile Co., Ltd.
Sales and Service
Japan -- Ricoh Tohoku Co., Ltd. Ricoh Chubu Co., Ltd. Ricoh Kansai Co.,
Ltd. Ricoh Chugoku Co., Ltd. Ricoh Kyushu Co., Ltd. Tokyo Ricoh Co., Ltd.
Osaka Ricoh Co., Ltd. and 43 other sales companies nationwide, Ricoh
Technosystems Co., Ltd.; NBS Ricoh Co., Ltd.
The Americas -- Ricoh Corporation, Savin Corporation, Lanier Worldwide,
Inc.
Europe -- Ricoh Europe B.V., Ricoh Deutschland GmbH, Ricoh UK Ltd., Ricoh
France S.A., Ricoh Espana S.A., Ricoh Italia S.p.A., NRG Group PLC(*)
Other regions -- Ricoh Hong Kong Ltd., Ricoh Asia Pacific Pte, Ltd., Ricoh
Australia Pty, Ltd., Ricoh New Zealand Ltd.
Other Businesses
Manufacturing and marketing analog cameras and optical lenses, semiconductor
devices, and measuring equipment, and providing leasing and logistics services
[Main Subsidiaries and Affiliates]
Production
Japan -- Ricoh Optical Industries Co., Ltd., Ricoh Elemex Corporation
Overseas -- Taiwan Ricoh Co., Ltd.
Sales
Ricoh Corporation, NRG Group PLC(*)
Other areas
Ricoh Leasing Company, Ltd., Ricoh Logistics System Co., Ltd., Coca-Cola
West Japan Co., Ltd. (affiliated company)
(*) In this fiscal year, Gestetner Holdings PLC changed the name to NRG
Group PLC.
-12-
1. CONSOLIDATED STATEMENTS OF INCOME
(Three months ended March 31, 2002 and 2001) (Millions of yen)
- ------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2002 March 31, 2001 Change (%)
- ------------------------------------------------------------------------------------------------------------------
Net sales 450,922 428,977 +21,945 (5.1)
Cost of sales 266,503 259,304 +7,199 (2.8)
Percentage of net sales(%) 59.1 60.4
Gross profit 184,419 169,673 +14,746 (8.7)
Percentage of net sales(%) 40.9 39.6
Selling, general and administrative expenses 144,357 141,552 +2,805 (2.0)
Percentage of net sales(%) 32.0 33.0
Operating income 40,062 28,121 +11,941 (42.5)
Percentage of net sales(%) 8.9 6.6
Other (income) expenses
Interest and dividend income 698 2,126 -1,428 (-67.2)
Percentage of net sales(%) 0.2 0.5
Interest expense 1,670 3,095 -1,425 (-46.0)
Percentage of net sales(%) 0.4 0.7
Other, net 3,536 -1,519 +5,055 (-332.8)
Percentage of net sales(%) 0.8 -0.3
Income before income taxes, minority interests and
equity in earnings of affiliates 35,554 28,671 +6,883 (24.0)
Percentage of net sales(%) 7.9 6.7
Provision for income taxes 16,659 12,933 +3,726 (28.8)
Percentage of net sales(%) 3.7 3.0
Minority interests in earnings of subsidiaries 931 1,279 -348 (-27.2)
Percentage of net sales(%) 0.2 0.3
Equity in earnings of affiliates 351 486 -135 (-27.8)
Percentage of net sales(%) 0.1 0.1
Net income 18,315 14,945 +3,370 (22.5)
Percentage of net sales(%) 4.1 3.5
- ------------------------------------------------------------------------------------------------------------------
Reference: Exchange rate (average rate for the corresponding periods)
Three months ended Three months ended
March 31, 2002 March 31, 2001
------------------ ------------------
US$1 132.50 Yen 118.17 Yen
EURO 1 116.21 Yen 108.99 Yen
(Full year ended March 31, 2002 and 2001) (Millions of yen)
- -------------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2002 March 31, 2001 Change (%)
- -------------------------------------------------------------------------------------------------------------------
Net sales 1,672,340 1,538,262 +134,078 (8.7)
Cost of sales 972,394 924,893 +47,501 (5.1)
Percentage of net sales(%) 58.1 60.1
Gross profit 699,946 613,369 +86,577 (14.1)
Percentage of net sales(%) 41.9 39.9
Selling, general and administrative expenses 570,251 508,264 +61,987 (12.2)
Percentage of net sales(%) 34.1 33.1
Operating income 129,695 105,105 +24,590 (23.4)
Percentage of net sales(%) 7.8 6.8
Other (income) expenses
Interest and dividend income 4,753 8,045 -3,292 (-40.9)
Percentage of net sales(%) 0.3 0.5
Interest expense 8,233 7,787 +446 (5.7)
Percentage of net sales(%) 0.5 0.5
Other, net 12,265 7,598 +4,667 (61.4)
Percentage of net sales(%) 0.8 0.4
Income before income taxes, minority interests and
equity in earnings of affiliates 113,950 97,765 +16,185 (16.6)
Percentage of net sales(%) 6.8 6.4
Provision for income taxes 51,147 43,512 +7,635 (17.5)
Percentage of net sales(%) 3.0 2.8
Minority interests in earnings of subsidiaries 3,080 3,123 -43 (-1.4)
Percentage of net sales(%) 0.2 0.2
Equity in earnings of affiliates 1,891 2,098 -207 (-9.9)
Percentage of net sales(%) 0.1 0.1
Net income 61,614 53,228 +8,386 (15.8)
Percentage of net sales(%) 3.7 3.5
- -------------------------------------------------------------------------------------------------------------------
Reference: Exchange rate (average rate for the corresponding periods)
Year ended Year ended
March 31, 2002 March 31, 2001
-------------- --------------
US$1 125.10 Yen 110.60 Yen
EURO 1 110.60 Yen 100.41 Yen
2. NET INCOME PER SHARE
(Yen)
- --------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2002 March 31, 2001 Change
- --------------------------------------------------------------------------------------
Net income per share-basic 88.27 76.85 +11.42
Net income per share-diluted 82.46 71.02 +11.44
- --------------------------------------------------------------------------------------
-13-
3. CONSOLIDATED SALES BY PRODUCT LINE
(Three months ended March 31, 2002 and 2001) (Millions of yen)
- ----------------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Excluding foreign
March 31, 2002 March 31, 2001 Change (%) exchange impact (%)
- ----------------------------------------------------------------------------------------------------------------------------------
Copiers and Related Supplies 274,509 257,714 +16,795 (6.5) +818 (0.3)
Domestic 113,213 124,890 -11,677 (-9.3) -11,677 (-9.3)
Overseas 161,296 132,824 +28,472 (21.4) +12,495 (9.4)
Percentage of net sales(%) 60.9 60.1
- ----------------------------------------------------------------------------------------------------------------------------------
Communications and Information Systems: 123,787 120,146 +3,641 (3.0) +581 (0.5)
Domestic 82,813 83,332 -519 (-0.6) -519 (-0.6)
Overseas 40,974 36,814 +4,160 (11.3) +1,100 (3.0)
Percentage of net sales(%) 27.4 28.0
- ----------------------------------------------------------------------------------------------------------------------------------
Other Businesses 52,626 51,117 +1,509 (3.0) +706 (1.4)
Domestic 42,118 40,426 +1,692 (4.2) +1,692 (4.2)
Overseas 10,508 10,691 -183 (-1.7) -986 (-9.2)
Percentage of net sales(%) 11.7 11.9
- ----------------------------------------------------------------------------------------------------------------------------------
Total 450,922 428,977 +21,945 (5.1) +2,105 (0.5)
Domestic 238,144 248,648 -10,504 (-4.2) -10,504 (-4.2)
Percentage of net sales(%) 52.8 58.0
Overseas 212,778 180,329 +32,449 (18.0) +12,609 (7.0)
Percentage of net sales(%) 47.2 42.0
The Americas 96,506 78,289 +18,217 (23.3) +7,924 (10.1)
Percentage of net sales(%) 21.4 18.2
Europe 85,328 70,244 +15,084 (21.5) +7,877 (11.2)
Percentage of net sales(%) 18.9 16.4
Other 30,944 31,796 -852 (-2.7) -3,192 (-10.0)
Percentage of net sales(%) 6.9 7.4
- ----------------------------------------------------------------------------------------------------------------------------------
Reference: Exchange rate (average rate for the corresponding periods)
Three months ended Three months ended
March 31, 2002 March 31, 2001
------------------ ------------------
US$1 132.50 Yen 118.17 Yen
EURO 1 116.21 Yen 108.99 Yen
(Full year ended March 31, 2002 and 2001) (Millions of yen)
- ---------------------------------------------------------------------------------------------------------------------------------
Year ended Year ended Excluding foreign
March 31, 2002 March 31, 2001 Change (%) exchange impact (%)
- ---------------------------------------------------------------------------------------------------------------------------------
Copiers and Related Supplies 1,038,495 915,333 +123,162 (13.5) +64,347 (7.0)
Domestic 453,939 467,956 -14,017 (-3.0) -14,017 (-3.0)
Overseas 584,556 447,377 +137,179 (30.7) +78,364 (17.5)
Percentage of net sales(%) 62.1 59.5
- ----------------------------------------------------------------------------------------------------------------------------------
Communications and Information Systems 446,894 423,041 +23,853 (5.6) +12,065 (2.9)
Domestic 299,114 300,682 -1,568 (-0.5) -1,568 (-0.5)
Overseas 147,780 122,359 +25,421 (20.8) +13,633 (11.1)
Percentage of net sales(%) 26.7 27.5
- ---------------------------------------------------------------------------------------------------------------------------------
Other Businesses 186,951 199,888 -12,937 (-6.5) -15,303 (-7.7)
Domestic 149,602 161,795 -12,193 (-7.5) -12,193 (-7.5)
Overseas 37,349 38,093 -744 (-2.0) -3,110 (-8.2)
Percentage of net sales(%) 11.2 13.0
- ---------------------------------------------------------------------------------------------------------------------------------
Total 1,672,340 1,538,262 +134,078 (8.7) +61,109 (4.0)
Domestic 902,655 930,433 -27,778 (-3.0) -27,778 (-3.0)
Percentage of net sales(%) 54.0 60.5
Overseas 769,685 607,829 +161,856 (26.6) +88,887 (14.6)
Percentage of net sales(%) 46.0 39.5
The Americas 341,747 252,698 +89,049 (35.2) +49,869 (19.7)
Percentage of net sales(%) 20.4 16.4
Europe 311,312 247,449 +63,863 (25.8) +37,575 (15.2)
Percentage of net sales(%) 18.6 16.1
Other 116,626 107,682 +8,944 (8.3) +1,443 (1.3)
Percentage of net sales(%) 7.0 7.0
- ---------------------------------------------------------------------------------------------------------------------------------
Reference: Exchange rate (average rate for the corresponding periods)
Year ended Year ended
March 31, 2002 March 31, 2001
-------------- --------------
US$1 125.10 Yen 110.60 Yen
EURO 1 110.60 Yen 100.41 Yen
-14-
4. CONSOLIDATED SALES BY CATEGORY
(Three months ended March 31, 2002 and 2001) (Millions of yen)
- ----------------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended Change (%) Excluding foreign
March 31, 2002 March 31, 2001 exchange impact (%)
- ----------------------------------------------------------------------------------------------------------------------------------
Imaging Solutions:
Digital Imaging Systems 180,519 157,023 +23,496 (15.0) +12,777 (8.1)
Percentage of net sales(%) 40.0 36.6
Domestic 72,674 81,470 -8,796 (-10.8) -8,796 (-10.8)
Overseas 107,845 75,553 +32,292 (42.7) +21,573 (28.6)
Other Imaging Systems 66,107 77,403 -11,296 (-14.6) -15,561 (-20.1)
Percentage of net sales(%) 14.7 18.1
Domestic 21,328 25,079 -3,751 (-15.0) -3,751 (-15.0)
Overseas 44,779 52,324 -7,545 (-14.4) -11,810 (-22.6)
Total Imaging Solutions 246,626 234,426 +12,200 (5.2) -2,784 (-1.2)
Percentage of net sales(%) 54.7 54.7
Domestic 94,002 106,549 -12,547 (-11.8) -12,547 (-11.8)
Overseas 152,624 127,877 +24,747 (19.4) +9,763 (7.6)
- ----------------------------------------------------------------------------------------------------------------------------------
Networking input/output systems:
Printing Systems 80,228 70,593 +9,635 (13.6) +5,738 (8.1)
Percentage of net sales(%) 17.8 16.5
Domestic 40,087 37,728 +2,359 (6.3) +2,359 (6.3)
Overseas 40,141 32,865 +7,276 (22.1) +3,379 (10.3)
Other Input/Output Systems 12,484 12,570 -86 (-0.7) -176 (-1.4)
Percentage of net sales(%) 2.7 2.9
Domestic 3,641 5,603 -1,962 (-35.0) -1,962 (-35.0)
Overseas 8,843 6,967 +1,876 (26.9) +1,786 (25.6)
Total Networking input/output systems 92,712 83,163 +9,549 (11.5) +5,562 (6.7)
Percentage of net sales(%) 20.5 19.4
Domestic 43,728 43,331 +397 (0.9) +397 (0.9)
Overseas 48,984 39,832 +9,152 (23.0) +5,165 (13.0)
- ----------------------------------------------------------------------------------------------------------------------------------
Network system solutions 58,958 60,271 -1,313 (-2.2) -1,379 (-2.3)
Percentage of net sales(%) 13.1 14.0
Domestic 58,296 58,342 -46 (-0.1) -46 (-0.1)
Overseas 662 1,929 -1,267 (-65.7) -1,333 (-69.1)
- ----------------------------------------------------------------------------------------------------------------------------------
Office Equipment Total 398,296 377,860 +20,436 (5.4) +1,399 (0.4)
Percentage of net sales(%) 88.3 88.1
Domestic 196,026 208,222 -12,196 (-5.9) -12,196 (-5.9)
Overseas 202,270 169,638 +32,632 (19.2) +13,595 (8.0)
- ----------------------------------------------------------------------------------------------------------------------------------
Other Businesses 52,626 51,117 +1,509 (3.0) +706 (1.4)
Percentage of net sales(%) 11.7 11.9
Domestic 42,118 40,426 +1,692 (4.2) +1,692 (4.2)
Overseas 10,508 10,691 -183 (-1.7) -986 (-9.2)
- ----------------------------------------------------------------------------------------------------------------------------------
Grand Total 450,922 428,977 +21,945 (5.1) +2,105 (0.5)
Percentage of net sales(%) 100.0 100.0
Domestic 238,144 248,648 -10,504 (-4.2) -10,504 (-4.2)
Percentage of net sales(%) 52.8 58.0
Overseas 212,778 180,329 +32,449 (18.0) +12,609 (7.0)
Percentage of net sales(%) 47.2 42.0
The Americas 96,506 78,289 +18,217 (23.3) +7,924 (10.1)
Percentage of net sales(%) 21.4 18.2
Europe 85,328 70,244 +15,084 (21.5) +7,877 (11.2)
Percentage of net sales(%) 18.9 16.4
Other 30,944 31,796 -852 (-2.7) -3,192 (-10.0)
Percentage of net sales(%) 6.9 7.4
- ----------------------------------------------------------------------------------------------------------------------------------
Each category includes the following products:
Digital Imaging Systems Digital PPCs, color PPCs, digital duplicators,
facsimile machines, related supplies and services
Other Imaging Systems Analog PPCs, diazo copiers, and related supplies
including thermal paper, and services
Printing Systems Multifunctional printers (MFPs), laser printers,
related supplies, services and software
Other Input/Output Systems Optical discs, systems and scanners
Network System Solutions Personal computers, PC servers, network systems,
network related software, and service/support
Other Businesses Digital cameras, analog cameras, semiconductors
Reference: Exchange rate (average rate for the corresponding periods)
Three months ended Three months ended
March 31, 2002 March 31, 2001
------------------ ------------------
US$1 132.50 Yen 118.17 Yen
EURO 1 116.21 Yen 108.99 Yen
-15-
(Full year ended March 31, 2002 and 2001) (Millions of yen)
- ----------------------------------------------------------------------------------------------------------------------------------
Year ended Year ended Excluding foreign
March 31, 2002 March 31, 2001 Change (%) exchange impact (%)
- ----------------------------------------------------------------------------------------------------------------------------------
Imaging Solutions:
Digital Imaging Systems 654,425 574,161 +80,264 (14.0) +43,900 (7.6)
Percentage of net sales(%) 39,1 37.3
Domestic 294,827 313,805 -18,978 (-6.0) -18,978 (-6.0)
Overseas 359,598 260,356 +99,242 (38.1) +62,878 (24.2)
Other Imaging Systems 279,755 292,872 -13,117 (-4.5) -30,859 (-10.5)
Percentage of net sales(%) 16.7 19.1
Domestic 97,356 120,963 -23,607 (-19.5) -23,607 (-19.5)
Overseas 182,399 171,909 +10,490 (6.1) -7,252 (-4.2)
Total Imaging Solutions 934,180 867,033 +67,147 (7.7) +13,041 (1.5)
Percentage of net sales(%) 55.8 56.4
Domestic 392,183 434,768 -42,585 (-9.8) -42,585 (-9.8)
Overseas 541,997 432,265 +109,732 (25.4) +55,626 (12.9)
- ----------------------------------------------------------------------------------------------------------------------------------
Networking input/output systems:
Printing Systems 299,231 217,308 +81,923 (37.7) +66,386 (30.5)
Percentage of net sales(%) 17.9 14.1
Domestic 141,273 109,824 +31,449 (28.6) +31,449 (28.6)
Overseas 157,958 107,484 +50,474 (47.0) +34,937 (32.5)
Other Input/Output Systems 45,016 44,530 +486 (1.1) -320 (-0.7)
Percentage of net sales(%) 2.7 2.9
Domestic 14,966 19,336 -4,370 (-22.6) -4,370 (-22.6)
Overseas 30,050 25,194 +4,856 (19.3) +4,050 (16.1)
Total Networking input/output systems 344,247 261,838 +82,409 (31.5) +66,066 (25.2)
Percentage of net sales(%) 20.6 17.0
Domestic 156,239 129,160 +27,079 (21.0) +27,079 (21.0)
Overseas 188,008 132,678 +55,330 (41.7) +38,987 (29.4)
- ----------------------------------------------------------------------------------------------------------------------------------
Network system solutions 206,962 209,503 -2,541 (-1.2) -2,695 (-1.3)
Percentage of net sales(%) 12.4 13.6
Domestic 204,631 204,710 -79 (0.0) -79 (0.0)
Overseas 2,331 4,793 -2,462 (-51.4) -2,616 (-54.6)
- ----------------------------------------------------------------------------------------------------------------------------------
Office Equipment Total 1,485,389 1,338,374 +147,015 (11.0) +76,412 (5.7)
Percentage of net sales(%) 88.8 87.0
Domestic 753,053 768,638 -15,585 (-2.0) -15,585 (-2.0)
Overseas 732,336 569,736 +162,600 (28.5) +91,997 (16.1)
- ----------------------------------------------------------------------------------------------------------------------------------
Other Businesses 186,951 199,888 -12,937 (-6.5) -15,303 (-7.7)
Percentage of net sales(%) 11.2 13.0
Domestic 149,602 161,795 -12,193 (-7.5) -12,193 (-7.5)
Overseas 37,349 38,093 -744 (-2.0) -3,110 (-8.2)
- ----------------------------------------------------------------------------------------------------------------------------------
Grand Total 1,672,340 1,538,262 +134,078 (8.7) +61,109 (4.0)
Percentage of net sales(%) 100.0 100.0
Domestic 902,655 930,433 -27,778 (-3.0) -27,778 (-3.0)
Percentage of net sales(%) 54.0 60.5
Overseas 769,685 607,829 +161,856 (26.6) +88,887 (14.6)
Percentage of net sales(%) 46.0 39.5
The Americas 341,747 252,698 +89,049 (35.2) +49,869 (19.7)
Percentage of net sales(%) 20.4 16.4
Europe 311,312 247,449 +63,863 (25.8) +37,575 (15.2)
Percentage of net sales(%) 18.6 16.1
Other 116,626 107,682 +8,944 (8.3) +1,443 (1.3)
Percentage of net sales(%) 7.0 7.0
- ----------------------------------------------------------------------------------------------------------------------------------
Each category includes the following products:
Digital Imaging Systems Digital PPCs, color PPCs, digital duplicators,
facsimile machines, related supplies and services
Other Imaging Systems Analog PPCs, diazo copiers, and related supplies
including thermal paper, and services
Printing Systems Multifunctional printers (MFPs), laser printers,
related supplies, services and software
Other Input/Output Systems Optical discs, systems and scanners
Network System Solutions Personal computers, PC servers, network systems,
network related software, and service/support
Other Businesses Digital cameras, analog cameras, semiconductors
Reference: Exchange rate (average rate for the corresponding periods)
Year ended Year ended
March 31, 2002 March 31, 2001
-------------- --------------
US$1 125.10 Yen 110.60 Yen
EURO 1 110.60 Yen 100.41 Yen
-16-
5. BALANCE SHEETS (CONSOLIDATED)
March 31, 2002 and 2001
Assets (Millions of yen)
- -----------------------------------------------------------------------------------------
March 31, 2002 March 31, 2001 Change
- -----------------------------------------------------------------------------------------
Current Assets 863,668 779,407 +84,261
Cash and cash equivalents 154,986 75,644 +79,342
Trade receivables 442,399 410,861 +31,538
Marketable securities 50,599 62,213 -11,614
Inventories 162,176 176,383 -14,207
Other current assets 53,508 54,306 -798
Fixed Assets 969,260 925,384 +43,876
Tangible fixed assets 259,380 267,249 -7,869
Finance receivable 447,829 428,790 +19,039
Other Investments and other assets 262,051 229,345 +32,706
- -----------------------------------------------------------------------------------------
Total Assets 1,832,928 1,704,791 +128,137
- -----------------------------------------------------------------------------------------
Liabilities and Minority Interest (Millions of yen)
- ----------------------------------------------------------------------------------------
March 31, 2002 March 31, 2001 Change
- ----------------------------------------------------------------------------------------
Current Liabilities 665,701 779,436 -113,735
Trade payable 277,753 291,791 -14,038
Short-term borrowings 228,408 321,185 -92,777
Other current liabilities 159,540 166,460 -6,920
Fixed Liabilities 483,159 321,196 +161,963
Long-term indebtedness 332,995 217,743 +115,252
Retirement benefit obligation 119,572 82,828 +36,744
Other fixed liabilities 30,592 20,625 +9,967
- ----------------------------------------------------------------------------------------
Total Liabilities 1,148,860 1,100,632 +48,228
- ----------------------------------------------------------------------------------------
Minority Interest 51,048 47,431 +3,617
- ----------------------------------------------------------------------------------------
Shareholders' Investment (Millions of yen)
- ------------------------------------------------------------------------------------------------
March 31, 2002 March 31, 2001 Change
- ------------------------------------------------------------------------------------------------
Shareholders' Investment 633,020 556,728 +76,292
Common stock 120,461 103,434 +17,027
Additional paid-in capital 171,628 154,635 +16,993
Retained earnings 385,741 332,447 +53,294
Accumulated other comprehensive income -44,376 -33,788 -10,588
Treasury stock -434 - -434
- ------------------------------------------------------------------------------------------------
Total Liabilities and Shareholders' Investment 1,832,928 1,704,791 +128,137
- ------------------------------------------------------------------------------------------------
Notes:
March 31, 2002 March 31, 2001
-------------- --------------
Contents of cash and deposits
Cash and cash equivalents 142,508 64,457
Time deposits 12,478 11,187
Accumulated other comprehensive income (losses);
Net unrealized holding gains on available-for-sale
securities 10,566 11,332 -766
Minimum pension liability adjustments -39,710 -23,579 -16,131
Net unrealized gains (losses) on derivative instruments -207 - -207
Cumulative translation adjustments -15,025 -21,541 +6,516
- -------------------------------------------------------------------
March 31, 2002 March 31, 2001
- -------------------------------------------------------------------
Exchange rate (end of term)
US$1 133.25 Yen 123.90 Yen
EURO 1 116.14 Yen 109.33 Yen
6. RETAINED EARNINGS
For the years ended March 31, 2002 and 2001 (Millions of yen)
- ---------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2002 March 31, 2001
- ---------------------------------------------------------------------------------------------
Retained earnings (beginning balance) 332,447 287,182
Net income 61,614 53,228
Cash dividends 8,320 7,963
Retained earnings (ending balance) 385,741 332,447
- ---------------------------------------------------------------------------------------------
-17-
7. STATEMENTS OF CASH FLOW (CONSOLIDATED)
For the years ended March 31, 2002 and 2001 (Millions of yen)
- ---------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2002 March 31, 2001
- ---------------------------------------------------------------------------------------------------------------
I. Cash Flows from Operating Activities:
1. Net income 61,614 53,228
2. Adjustments to reconcile net income to net cash provided by
operating activities --
Depreciation and amortization 73,782 62,142
Equity in earnings of affiliates, net of dividends received -1,260 -1,056
Deferred income taxes -1,218 -9,994
Loss on disposal and sales of plant and equipment 1,665 2,223
Changes in assets and liabilities, net of effects from acquisition --
Increase in trade receivables -20,006 -32,476
Decrease (increase) in inventories 21,194 -7,167
Increase in finance receivables -13,620 -15,127
(Decrease) increase in trade payables -19,535 16,235
(Decrease) increase in accrued income taxes and accrued expenses
and other -13,592 27,310
Retirement benefit obligation, net 8,374 1,667
Other, net 7,740 5,743
- ---------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 105,138 102,728
- ---------------------------------------------------------------------------------------------------------------
II. Cash Flows from Investing Activities:
1. Proceeds from sales of plant and equipment 756 1,120
2. Expenditures for plant and equipment -75,231 -73,040
3. Payments for purchases of available-for-sale securities -38,564 -52,853
4. Proceeds from sales of available-for-sale securities 68,736 93,705
5. Decrease in investments in and advances to affiliates 5 51
6. Decrease (increase) in time deposits -477 6,797
7. Acquisition amount of Lanier Worldwide, Inc - -28,103
8. Other, net -21,017 -10,405
- ---------------------------------------------------------------------------------------------------------------
Net cash used in investing activities -65,792 -62,728
- ---------------------------------------------------------------------------------------------------------------
III. Cash Flows from Financing Activities:
1. Proceeds from long-term indebtedness 71,075 33,183
2. Repayment of long-term indebtedness -79,640 -114,701
3. (Decrease) increase in short-term borrowings, net -39,414 5,565
4. Proceeds from issuance of long-term debt securities 103,500 -
5. Repayment of long-term debt securities 10,000 -2,990
6. Cash dividends paid -8,322 -7,964
7. Other, net -964 -1,475
- ---------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities 36,235 -88,382
- ---------------------------------------------------------------------------------------------------------------
IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents 2,470 1,001
- ---------------------------------------------------------------------------------------------------------------
V. Net Increase (Decrease) in Cash and Cash Equivalents 78,051 -47,381
- ---------------------------------------------------------------------------------------------------------------
VI. Cash and Cash Equivalents at Beginning of Year 64,457 111,838
- ---------------------------------------------------------------------------------------------------------------
VII. Cash and Cash Equivalents at End of Year 142,508 64,457
- ---------------------------------------------------------------------------------------------------------------
-18-
8. SEGMENT INFORMATION
(1) BUSINESS SEGMENT INFORMATION
(Three months ended March 31, 2002 and 2001) (Millions of yen)
- -------------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2002 March 31, 2001 Change (%)
- -------------------------------------------------------------------------------------------------------------------------
Net sales:
Office Equipment 398,296 377,860 +20,436 (5.4)
Other Businesses 53,453 52,393 +1,060 (2.0)
Intersegment -827 -1,276 +449 (-35.2)
- -------------------------------------------------------------------------------------------------------------------------
Total 450,922 428,977 +21,945 (5.1)
- -------------------------------------------------------------------------------------------------------------------------
Operating expenses:
Office Equipment 343,831 337,530 +6,301 (1.9)
Other Businesses 51,385 49,175 +2,210 (4.5)
Intersegment -830 -1,297 +467 (-36.0)
Corporate 16,474 15,448 +1,026 (6.6)
- -------------------------------------------------------------------------------------------------------------------------
Total 410,860 400,856 +10,004 (2.5)
- -------------------------------------------------------------------------------------------------------------------------
Operating income:
Office Equipment 54,465 40,330 +14,135 (35.0)
Operating income on office equipment sales(%) 13.7 10.7 3.0
Other Businesses 2,068 3,218 -1,150 (-35.7)
Operating income on other business sales(%) 3.9 6.1 -2.2
Intersegment 3 21 -18 (-85.7)
Corporate -16,474 -15,448 -1,026 (6.6)
- -------------------------------------------------------------------------------------------------------------------------
Consolidated operating income 40,062 28,121 +11,941 (42.5)
- -------------------------------------------------------------------------------------------------------------------------
Other income (expenses) -4,508 550 -5,058 (-919.6)
- -------------------------------------------------------------------------------------------------------------------------
Income before income taxes 35,554 28,671 +6,883 (24.0)
- -------------------------------------------------------------------------------------------------------------------------
Identifiable assets:
Office Equipment 1,219,723 1,179,499 +40,224 (3.4)
Other Businesses 185,158 180,164 +4,994 (2.8)
Intersegment -6,991 -9,116 +2,125 (-23.3)
Corporate assets 435,038 354,244 +80,794 (22.8)
- -------------------------------------------------------------------------------------------------------------------------
Total 1,832,928 1,704,791 +128,137 (7.5)
- -------------------------------------------------------------------------------------------------------------------------
Capital expenditure:
Office Equipment 18,212 19,866 -1,654 (-8.3)
Other Businesses 589 2,733 -2,144 (-78.4)
Corporate 203 51 +152 (298.0)
- -------------------------------------------------------------------------------------------------------------------------
Total 19,004 22,650 -3,646 (-16.1)
- -------------------------------------------------------------------------------------------------------------------------
Depreciation and Amortization:
Office Equipment 17,736 14,098 +3,638 (25.8)
Other Businesses 2,016 2,086 -70 (-3.4)
Corporate 634 782 -148 (-18.9)
- -------------------------------------------------------------------------------------------------------------------------
Total 20,386 16,966 +3,420 (20.2)
- -------------------------------------------------------------------------------------------------------------------------
-19-
(Full year ended March 31, 2002 and 2001) (Millions of yen)
- ----------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2002 March 31, 2001 Change (%)
- ----------------------------------------------------------------------------------------------------------------
Net sales:
Office Equipment 1,485,389 1,338,374 +147,015 (11.0)
Other Businesses 190,815 205,095 -14,280 (-7.0)
Intersegment -3,864 -5,207 +1,343 (-25.8)
- ----------------------------------------------------------------------------------------------------------------
Total 1,672,340 1,538,262 +134,078 (8.7)
- ----------------------------------------------------------------------------------------------------------------
Operating expenses:
Office Equipment 1,304,079 1,195,834 +108,245 (9.1)
Other Businesses 187,424 191,909 -4,485 (-2.3)
Intersegment -3,893 -5,218 +1,325 (-25.4)
Corporate 55,035 50,632 +4,403 (8.7)
- ----------------------------------------------------------------------------------------------------------------
Total 1,542,645 1,433,157 +109,488 (7.6)
- ----------------------------------------------------------------------------------------------------------------
Operating income:
Office Equipment 181,310 142,540 +38,770 (27.2)
Operating income on office equipment sales(%) 12.2 10.7 1.5
Other Businesses 3,391 13,186 -9,795 (-74.3)
Operating income on other business sales(%) 1.8 6.4 -4.6
Intersegment 29 11 +18 (163.6)
Corporate -55,035 -50,632 -4,403 (8.7)
- ----------------------------------------------------------------------------------------------------------------
Consolidated operating income 129,695 105,105 +24,590 (23.4)
- ----------------------------------------------------------------------------------------------------------------
Other income (expenses) -15,745 -7,340 -8,405 (114.5)
- ----------------------------------------------------------------------------------------------------------------
Income before income taxes 113,950 97,765 +16,185 (16.6)
- ----------------------------------------------------------------------------------------------------------------
Identifiable assets:
Office Equipment 1,219,723 1,179,499 +40,224 (3.4)
Other Businesses 185,158 180,164 +4,994 (2.8)
Intersegment -6,991 -9,116 +2,125 (-23.3)
Corporate assets 435,038 354,244 +80,794 (22.8)
- ----------------------------------------------------------------------------------------------------------------
Total 1,832,928 1,704,791 +128,137 (7.5)
- ----------------------------------------------------------------------------------------------------------------
Capital expenditure:
Office Equipment 68,513 61,836 +6,677 (10.8)
Other Businesses 5,633 10,235 -4,602 (-45.0)
Corporate 1,530 1,258 +272 (21.6)
- ----------------------------------------------------------------------------------------------------------------
Total 75,676 73,329 +2,347 (3.2)
- ----------------------------------------------------------------------------------------------------------------
Depreciation and Amortization:
Office Equipment 64,426 52,908 +11,518 (21.8)
Other Businesses 7,448 7,598 -150 (-2.0)
Corporate 1,908 1,636 +272 (16.6)
- ----------------------------------------------------------------------------------------------------------------
Total 73,782 62,142 +11,640 (18.7)
- ----------------------------------------------------------------------------------------------------------------
-20-
(2) GEOGRAPHIC SEGMENT INFORMATION
(Three months ended March 31, 2002 and 2001) (Millions of yen)
- -----------------------------------------------------------------------------------------------------------------------
Three months ended Three months ended
March 31, 2002 March 31, 2001 Change (%)
- -----------------------------------------------------------------------------------------------------------------------
Net sales:
Japan
Unaffiliated Customers 249,481 255,307 -5,826 (-2.3)
Intersegment 78,886 73,331 +5,555 (7.6)
Total 328,367 328,638 -271 (-0.1)
The Americas
Unaffiliated Customers 94,489 78,200 +16,289 (20.8)
Intersegment 3,110 972 +2,138 (220.0)
Total 97,599 79,172 +18,427 (23.3)
Europe
Unaffiliated Customers 84,293 74,896 +9,397 (12.5)
Intersegment 875 955 -80 (-8.4)
Total 85,168 75,851 +9,317 (12.3)
Other
Unaffiliated Customers 22,659 20,574 +2,085 (10.1)
Intersegment 15,889 11,082 +4,807 (43.4)
Total 38,548 31,656 +6,892 (21.8)
Intersegment -98,760 -86,340 -12,420 (14.4)
- -----------------------------------------------------------------------------------------------------------------------
Total 450,922 428,977 +21,945 (5.1)
- -----------------------------------------------------------------------------------------------------------------------
Operating expenses:
Japan 301,329 309,403 -8,074 (-2.6)
The Americas 89,089 74,907 +14,182 (18.9)
Europe 81,759 71,072 +10,687 (15.0)
Other 36,015 29,530 +6,485 (22.0)
Corporate and eliminations -97,332 -84,056 -13,276 (15.8)
- -----------------------------------------------------------------------------------------------------------------------
Total 410,860 400,856 +10,004 (2.5)
- -----------------------------------------------------------------------------------------------------------------------
Operating income:
Japan 27,038 19,235 +7,803 (40.6)
Operating income on sales in Japan(%) 8.2 5.9 2.3
The Americas 8,510 4,265 +4,245 (99.5)
Operating income on sales in the Americas(%) 8.7 5.4 3.3
Europe 3,409 4,779 -1,370 (-28.7)
Operating income on sales in Europe(%) 4.0 6.3 -2.3
Other 2,533 2,126 +407 (19.1)
Operating income on sales in other regions(%) 6.6 6.7 -0.1
Corporate and eliminations -1,428 -2,284 +856 (-37.5)
- -----------------------------------------------------------------------------------------------------------------------
Consolidated operating income 40,062 28,121 11,941 (42.5)
- -----------------------------------------------------------------------------------------------------------------------
Other income (expenses) -4,508 550 -5,058 (-919.6)
- -----------------------------------------------------------------------------------------------------------------------
Income before income taxes 35,554 28,671 +6,883 (24.0)
- -----------------------------------------------------------------------------------------------------------------------
Identifiable assets:
Japan 1,084,387 1,042,557 +41,830 (4.0)
The Americas 228,743 209,638 +19,105 (9.1)
Europe 172,408 163,542 +8,866 (5.4)
Other 61,549 63,438 -1,889 (-3.0)
Eliminations -149,197 -128,628 -20,569 (16.0)
Corporate assets 435,038 354,244 +80,794 (22.8)
- -----------------------------------------------------------------------------------------------------------------------
Total 1,832,928 1,704,791 +128,137 (7.5)
- -----------------------------------------------------------------------------------------------------------------------
-21-
(Full year ended March 31, 2002 and 2001) (Millions of yen)
- --------------------------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2002 March 31, 2001 Change (%)
- --------------------------------------------------------------------------------------------------------------------
Net sales:
Japan
Unaffiliated Customers 938,946 954,125 -15,179 (-1.6)
Intersegment 309,745 279,802 +29,943 (10.7)
Total 1,248,691 1,233,927 +14,764 (1.2)
The Americas
Unaffiliated Customers 338,016 252,029 +85,987 (34.1)
Intersegment 8,937 4,470 +4,467 (99.9)
Total 346,953 256,499 +90,454 (35.3)
Europe
Unaffiliated Customers 309,086 254,548 +54,538 (21.4)
Intersegment 4,265 3,246 +1,019 (31.4)
Total 313,351 257,794 +55,557 (21.6)
Other
Unaffiliated Customers 86,292 77,560 +8,732 (11.3)
Intersegment 60,655 39,571 +21,084 (53.3)
Total 146,947 117,131 +29,816 (25.5)
Intersegment -383,602 -327,089 -56,513 (17.3)
- --------------------------------------------------------------------------------------------------------------------
Total 1,672,340 1,538,262 +134,078 (8.7)
- --------------------------------------------------------------------------------------------------------------------
Operating expenses:
Japan 1,142,522 1,150,353 -7,831 (-0.7)
The Americas 335,521 247,521 +88,000 (35.6)
Europe 301,152 246,498 +54,654 (22.2)
Other 139,874 110,937 +28,937 (26.1)
Corporate and eliminations -376,424 -322,152 -54,272 (16.8)
- --------------------------------------------------------------------------------------------------------------------
Total 1,542,645 1,433,157 +109,488 (7.6)
- --------------------------------------------------------------------------------------------------------------------
Operating income:
Japan 106,169 83,574 +22,595 (27.0)
Operating income on sales in Japan(%) 8.5 6.8 1.7
The Americas 11,432 8,978 +2,454 (27.3)
Operating income on sales in the Americas(%) 3.3 3.5 -0.2
Europe 12,199 11,296 +903 (8.0)
Operating income on sales in Europe(%) 3.9 4.4 -0.5
Other 7,073 6,194 +879 (14.2)
Operating income on sales in other regions(%) 4.8 5.3 -0.5
Corporate and eliminations -7,178 -4,937 -2,241 (45.4)
- --------------------------------------------------------------------------------------------------------------------
Consolidated operating income 129,695 105,105 +24,590 (23.4)
- --------------------------------------------------------------------------------------------------------------------
Other income (expenses) -15,745 -7,340 -8,405 (114.5)
- --------------------------------------------------------------------------------------------------------------------
Income before income taxes 113,950 97,765 +16,185 (16.6)
- --------------------------------------------------------------------------------------------------------------------
Identifiable assets:
Japan 1,084,387 1,042,557 +41,830 (4.0)
The Americas 228,743 209,638 +19,105 (9.1)
Europe 172,408 163,542 +8,866 (5.4)
Other 61,549 63,438 -1,889 (-3.0)
Eliminations -149,197 -128,628 -20,569 (16.0)
Corporate assets 435,038 354,244 +80,794 (22.8)
- --------------------------------------------------------------------------------------------------------------------
Total 1,832,928 1,704,791 +128,137 (7.5)
- --------------------------------------------------------------------------------------------------------------------
-22-
9. SIGNIFICANT ACCOUNTING POLICIES (CONSOLIDATED)
1. ITEMS RELATING TO THE SCALE OF CONSOLIDATION AND THE APPLICATION OF THE
EQUITY METHOD
Consolidated subsidiaries:
18 additions including Ricoh Tohoku Co., Ltd. Ricoh Chubu Co., Ltd. Ricoh
Kansai Co., Ltd. Ricoh Chugoku Co., Ltd. and Ricoh Kyushu Co., Ltd.
5 removals including Higashi Shizuoka Ricoh Co., Ltd.
Companies accounted for by the equity method:
6 additions including Tohoku Ricoh (Fuzhon) Printing Products Co., Ltd.
5 removals including NRG Singapore Pte. Ltd.
2. CONSOLIDATED ACCOUNTING POLICIES
(1) Principles of Consolidation
The consolidated financial statements include the accounts of Ricoh. All
significant intercompany balances and transactions have been eliminated in
consolidation. Investments in affiliated companies are accounted for on the
equity basis.
(2) Securities
Ricoh conforms with SFAS No. 115, "Accounting for Certain Investments in Debt
and Equity Securities," which requires certain investments in debt and equity
securities to be classified as either held-to-maturity, trading, or
available-for-sale securities. Available-for-sale are reported at fair value
with unrealized gains and losses, net of related taxes, excluded from earnings
and reported in accumulated other comprehensive income (loss). The cost of the
securities sold was computed based on the average cost of each security held at
the time of sale.
(3) Inventories
Inventories are stated at the lower of average cost or market. Inventory costs
include raw materials, labor and manufacturing overheads.
(4) Plant and Equipment
Depreciation of plant and equipment is computed principally by using the
declining-balance method over the estimated useful lives. Most of the foreign
subsidiaries have adopted the straight-line method for computing depreciation.
Certain leased buildings, machinery and equipment are accounted for as capital
leases in conformity with SFAS No. 13, "Accounting for Leases."
(5) Goodwill
Ricoh has classified as goodwill the cost in excess of fair value of the net
assets of major companies acquired in purchase transactions. Goodwill is being
amortized on a straight-line method over the estimated periods benefited, not to
exceed 20 years.
(6) Use of Estimates
Management of the Company has made a number of estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues and expenses, and
the disclosure of contingent assets and liabilities, to prepare these financial
statements in conformity with generally accepted accounting principles. Actual
results could differ from those estimates.
-23-
10. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) FAIR MARKET VALUE OF MARKETABLE SECURITIES
The non-marketable securities as of March 31, 2002 and 2001 primarily relate to
less than 20%-owned companies. The securities and the respective cost, gross
unrealized holding gains, gross unrealized holding losses and fair value as of
March 31, 2002 and 2001 are as follows:
- ------------------------------------------------------------------------------------------------------------------------------
Year ended March 31, 2002 (Millions of yen)
- ------------------------------------------------------------------------------------------------------------------------------
Cost Gross unrealized Gross unrealized Fair value
holding gains holding losses
- ------------------------------------------------------------------------------------------------------------------------------
Current:
Japanese and foreign governmental bond securities - - - -
Corporate debt securities 21,338 1,205 12 22,531
Other 28,068 - - 28,068
- ------------------------------------------------------------------------------------------------------------------------------
49,406 1,205 12 50,599
- ------------------------------------------------------------------------------------------------------------------------------
Noncurrent:
Equity securities 7,457 6,025 469 13,013
Corporate debt securities 20 6 - 26
Other 10,612 205 519 10,298
Non-marketable securities 5,549 - - 5,549
- ------------------------------------------------------------------------------------------------------------------------------
23,638 6,236 988 28,886
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Year ended March 31, 2001 (Millions of yen)
- ------------------------------------------------------------------------------------------------------------------------------
Cost Gross unrealized Gross unrealized Fair value
holding gains holding losses
- ------------------------------------------------------------------------------------------------------------------------------
Current:
Japanese and foreign governmental bond securities 997 10 - 1,007
Corporate debt securities 7,062 2 12 7,052
Other 54,168 5 19 54,154
- ------------------------------------------------------------------------------------------------------------------------------
62,227 17 31 62,213
- ------------------------------------------------------------------------------------------------------------------------------
Noncurrent:
Equity securities 7,686 8,805 453 16,038
Corporate debt securities 21,587 2,656 53 24,190
Other 7,639 6 1,642 6,003
Non-marketable securities 2,845 - - 2,845
- ------------------------------------------------------------------------------------------------------------------------------
39,757 11,467 2,148 49,076
- ------------------------------------------------------------------------------------------------------------------------------
Other includes money management funds of 38,665 million yen and 27,025 million
yen as of March 31, 2001 and 2002, respectively, and investment trusts
consisting of investments in marketable debt securities.
(2) PENSION AND RETIREMENT ALLOWANCES PLANS
The Company and certain of its subsidiaries have various trusteed contributory
and noncontributory employees pension fund ("EPF") plans covering substantially
all of their employees.
Under the plans, employees are entitled to lump-sum payments at the time of
termination or retirement, or to pension payments. Under the terms of the
domestic EPF plan, the Government welfare pension insurance benefit is
substituted and commingled with the primary benefit provided by the plan.
The amounts of lump-sum or pension payments under the plans are generally
determined on the basis of length of service and remuneration at the time of
termination.
It is the Company's policy to fund amounts required to maintain sufficient plan
assets to provide for accrued benefits based on a certain percentage of wage and
salary costs. The plan assets consist principally of interest-bearing bonds and
listed equity securities.
The discount rates and the expected long-term rate of return on plan assets of
the pension plans in fiscal 2000 and 2001 were as follows:
(%)
- -------------------------------------------------------------------------------------------------
Year ended Year ended
March 31, 2002 March 31, 2001
- -------------------------------------------------------------------------------------------------
Actuarial assumptions:
Discount rate 2.8 ~ 7.25 3.0 ~ 7.75
Expected long-term rate of return on plan assets 1.5 ~ 9.0 4.5 ~ 9.0
- -------------------------------------------------------------------------------------------------
-24-
(3) DERIVATIVE
The Company and certain of its subsidiaries enter into various financial
instrument contracts in the normal course of business and in connection with the
management of their assets and liabilities. From fiscal year ended March 31,
2002, the Company adopted FASB Statement No. 133 and FASB Statement No. 138,
based on which changes in the fair values of all derivative instruments are
recognized as assets or liabilities in the consolidated balance sheets.
The Company and certain of its subsidiaries enter into foreign currency
contracts and foreign currency options to hedge assets and liabilities
denominated in foreign currencies. Ricoh enters into interest rate swap
agreements to reduce interest rate risk and the fair value of the principal on
its outstanding debt and to lower the risks of cash flow fluctuations. Most of
these agreements are designated as fair value hedges and cash flow hedges in
line with FASB Statement No. 133.
Fluctuations in the fair value of derivative instruments designated as fair
value hedges are recorded as other income (expenses) in the consolidated
statements of income. These amounts did not materially affect Ricoh's
consolidated results of operations in the fiscal year ended March 31, 2002.
Fluctuations in the fair value of derivative instruments designated as cash flow
hedges are recorded as accumulated other comprehensive income (loss) in the
consolidated balance sheets. They are transferred to the consolidated statements
of income once interest for the hedged loans are accrued. Of accumulated other
comprehensive income (loss) as of March 31, 2002, Ricoh expects to recognize
- -18 million yen in the consolidated statements of income within the following 12
months.
These derivative instruments exposed to credit risk in the event of
nonperformance by counterparties. However, these counterparties are financial
institutions with high credit ratings, so Ricoh deems the credit risk
negligible. The Company has optimally concentrated credit risk by diversifying
its dealings with counterparties. The outstanding agreements, carrying amount
and estimated fair value of derivative financial instruments as of March 31,
2001, and March 31, 2002 are as follows:
- ----------------------------------------------------------------------------------------------
Year ended March 31, 2002 (Millions of yen)
- ----------------------------------------------------------------------------------------------
Carrying amount Estimated
Fair value
- ----------------------------------------------------------------------------------------------
Interest rate swap agreements, net 4,081 4,081
Foreign currency contracts - net credit -8,304 -8,304
Currency options -314 -314
- ----------------------------------------------------------------------------------------------
Total -4,537 -4,537
- ----------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
Year ended March 31, 2001 (Millions of yen)
- -------------------------------------------------------------------------------------------------
Carrying amount Estimated
Fair value
- -------------------------------------------------------------------------------------------------
Interest rate swap agreements, net 189 4,480
Foreign currency contracts - net credit -386 -3,068
Currency options 0 -292
- -------------------------------------------------------------------------------------------------
Total -197 1,120
- -------------------------------------------------------------------------------------------------
(4) TRANSACTIONS OF RICOH WITH AFFILIATES
(Millions of yen)
- --------------------------------------------------------------------------------
March 31, 2002 March 31, 2001
- --------------------------------------------------------------------------------
Account balances:
Receivables 8,513 6,398
Payables 2,858 1,979
- --------------------------------------------------------------------------------
(Millions of yen)
- ----------------------------------------------------------------------------
Year ended Year ended
March 31, 2002 March 31, 2001
- ----------------------------------------------------------------------------
Transactions:
Sales 25,413 20,952
Purchases 15,584 13,673
Dividend income 1,133 1,008
- ----------------------------------------------------------------------------
-25-