Fiscal 2008 Financial Highlights (Consolidated) 2,219.9 billion yen Net sales, operating income, net income, operating margin, and net income margin (net sales) The Ricoh Group grew its sales in all business segments, especially color MFPs and laser printers. Overall sales rose 7.3% from the previous year, marking the 14th consecutive year of growth. Contribution of overseas sales to the Group’s overall sales increased from a year earlier— sales in Japan grew 1.4% to 1,016.0 billion yen and overseas sales grew 12.9% to 1,203.9 billion yen. Operating income increased 4.1% to 181.5 billion yen, driven by increased sales of high value-added products and continued cost reduction efforts, among other things. Net income declined 4.7% to 106.4 billion yen, mainly due to the previous year’s gain from the sale of discontinued operations. Europe 603.2 (27.2%) (Billions of yen) Other 165.9 (7.4%) Industrial Products 144.3 (6.5%) 100 Network System Solutions 200.0 (9.0%) D 2005 2006 2007 2008 (FY) 0 Net income per share, dividends, and consolidated dividend payout ratio 17.9% (increase in dividends) Ricoh announced an annual dividend of 33.0 yen, an increase of 5.0 yen from the previous year. The Group’s consolidated dividend payout ratio improved to 22.6%. (%) 20 ANNUAL REPORT 2008 Consolidated dividend payout ratio 22.6 17.8 15 (Yen) 18.1 A Net income per share (left scale) B Dividends per share (right scale) 150 100 18.3 14.6 10 (Yen) 30 20 10 50 0 Imaging Solutions 1,709.4 (77.0%) 146.04 33.0 C 2004 FY2008 153.10 106.4 1,016.0 150 50 A Office Solutions 1,909.5 (86.0%) Other 166.0 (7.5%) 28.0 0 ● Sales by category (billions of yen) 200 500 Japan 1,016.0 (45.8%) FY2008 132.33 24.0 1,203.9 2,219.9 Operating income Net income 181.5 1,066.6 2,068.9 174.3 111.7 966.2 91.7 B 1,002.2 148.5 131.1 145.4 866.1 1,773.3 841.1 1,807.4 D The Americas 434.7 (19.6%) 4.8 CC Operating income (right scale) D Net income (right scale) 943.0 1,909.2 Japan (left scale) Overseas (left scale) 966.2 A 5.4 5.1 4.6 97.0 5.2 907.1 1,000 8.2 Net margin (Billions of yen) 1,500 7.8 7.3 B 2,000 8.4 ● Sales by area (billions of yen) Overseas 1,203.9 (54.2%) 112.64 20.0 8.2 83.1 Net sales Operating margin 123.63 18.0 (%) 8 7 6 5 4 A B 2004 2005 2006 2007 0 2008 (FY) 2006 2007 2008 Fiscal 2008 Highlights 16th Mid-Term Management Plan 1,080.1 2,214.3 2,243.4 1,852.7 795.1 A 1,070.9 0 B 2004 (End of March) 2005 Fiscal 2008 Milestones -3.9 billion yen (free cash flow) 51.8 2008 (FY) While depreciation, as well as assets due to business expansion, increased, cash and cash equivalents decreased as a result of the formation of a joint venture with IBM Corporation. As a result, free cash flow generated by operating and investing activities declined by 55.8 billion yen from the previous year to negative 3.9 billion yen. Corporate Governance / CSR 2007 Shareholders’ equity Operating cash flow, investing cash flow, and free cash flow -3.9 2005 500 7.8 Free cash flow -198.3 2004 B 1,000 194.3 167.2 53.4 -115.4 -96.0 -63.4 2006 -150 -200 C B 50 -100 173.4 C -120.0 0 A Investing cash flow 33.0 50 129.1 87.6 100 B Total assets 8.1 7.6 6.9 1,953.6 A Operating cash flow 151.0 150 A 7.4 (Billions of yen) 2,000 1,500 9.9 Income before income taxes on total assets 2,041.1 6 Total assets showed a decline of 29.0 billion yen from a year earlier to 2,214.3 billion yen, especially due to the decrease in cash and cash equivalents resulting from the formation of a joint venture company with IBM Corporation. Interest-bearing liabilities decreased by 31.2 billion yen as a result of enhanced cash management. Shareholders’ equity increased by 9.2 billion yen to 1,080.1 billion yen, reflecting the increase in retained earnings. (Billions of yen) 200 9 11.0 10.6 10.0 862.9 9.9% (ROE) Return on equity (ROE) 12.6 960.2 (%) 12 Total assets, shareholders’ equity, income before income taxes on total assets, and return on equity (ROE) To Our Shareholders and Customers Review of Operations Sustainable Environmental Management Common stock price (Yen) 3,500 3,000 2,500 2,000 1,500 1,000 0 Financial Section 500 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 2004 2005 2006 2007 2008 ANNUAL REPORT 2008 8