QUARTERLY REPORT 3rd Quarter Ended December 31, 2001 (Results for the Period from April 1 to December 31, 2001) Index Page I. Ricoh Company, Ltd. And Consolidated Subsidiaries ・Financial Highlights ・Ricoh Company, Ltd. And Consolidated Subsidiaries –Quarterly Report 1. Performance 2. Consolidated Statements of Income 3. Consolidated Sales by Product Line 4. Consolidated Sales by Category 5. Consolidated Balance Sheets 6. Consolidated Statements of Cash Flow 7. Segment Information 8. Significant Accounting Policies 2 10 11 12 14 15 16 19 II. Appendix 1. Quarterly Performance Outline (Consolidated) 2. Quarterly Sales by Product Line (Consolidated) 3. Quarterly Sales by Category (Consolidated) 4. Forecast of Consolidated Performance 5. Forecast of Consolidated Sales by Product Line 6. Forecast of Consolidated Sales by Category 21 21 22 23 23 24 1 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. (Blank Page) Ricoh Company, Ltd. and Consolidated Subsidiaries Financial Highlights (3rd Quarter Ended December 31, 2001) 1. Three months ended December 31, 2001 and 2000 (1) Operating Results (Millions of yen) Three months ended December 31, 2001 Net sales .............................................................................................................. (% change from previous period)............................................................. Operating income................................................................................................. (% change from previous period)............................................................. Income before income taxes ................................................................................. (% change from previous period)............................................................. Net income........................................................................................................... (% change from previous period)............................................................. Net income per share-basic (yen)........................................................................ Net income per share-diluted (yen)..................................................................... Three months ended December 31, 2000 401,331 7.3 29,729 15.0 25,872 12.9 14,891 19.4 21.41 20.00 373,982 25,843 22,923 12,475 18.01 16.72 Note: i. Equity in earnings of affiliates: ¥ 524 million; ¥ 362 million (previous corresponding periood) ii. Percentage changes in net sales, operating income, income before income taxes, and net income based on the previous corresponding period. (2)Financial Position (Millions of yen) December 31, 2001 Total assets.......................................................................................................... Shareholders’ equity............................................................................................ Equity ratio (%)................................................................................................... Equity per share (yen)......................................................................................... March 31, 2001 1,760,391 601,280 34.2 860.86 1,704,791 556,728 32.7 803.64 Notes: Number of shares issued: 698,464,124 shares, as of December 31, 2001; 692,755,584 shares, as of March 31, 2001 (3)Cash Flows (Nine months ended December 31, 2001 and year ended March 31, 2001) (Millions of yen) Nine months ended December 31, 2001 Cash flows from operating activities ................................................................... Cash flows from investing activities.................................................................... Cash flows from financing activities.................................................................... Cash and cash equivalents at end of term............................................................ Year ended March 31, 2001 33,757 -71,144 34,817 63,856 102,728 -62,728 -88,382 64,457 (4) Items relating to the scale of consolidation and the application of the equity method: Number of consolidated subsidiaries: 329; nonconsolidated subsidiaries: 45; affiliated companies: 28 (5) Changes in the scale of consolidation and the application of equity method: Consolidation: 14 additions; 5 removals Companies accounted for by the equity method: 5 additions; 1 removal Notes: i. Consolidated financial statements of the Company and its consolidated subsidiaries have been prepared in conformity with accounting principles generally accepted in the United States of America. ii. Net income per share is calculated based on Statement of Financial Accounting Standards(SFAS) No.128. iii. Ricoh's third-quarter financial statements are unaudited. 2. Forecast of operating results from April 1, 2001 to March 31, 2002 (Millions of yen) Year ended March 31, 2002 Net sales .............................................................................................................. Operating income................................................................................................. Income before income taxes ................................................................................. Net income........................................................................................................... Notes: Net income per share (Consolidated) 88.05 yen 1,670,000 126,000 113,000 61,500 In accordance with Japanese regulations, Ricoh has issued forecast for its financial results for the fiscal year ending March 2002. These forecast are forward-looking statements based on a number of assumptions and beliefs in light of the information currently available to management and subject to significant risks and uncertainties. -1- Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 Outline of Consolidated Performance 1. Performance (1) Overview (Three months ended December 31, 2001, 2000 and half year ended September 30,2001) Three months ended Three months ended December 31, 2001 December 31, 2000 Net sales ........................................................................ Domestic sales.......................................................... Overseas sales .......................................................... Gross profit ................................................................... Operating income........................................................... Income before income taxes ........................................... Net income..................................................................... Net income per share-basic (yen).................................. Net income per share-diluted (yen)............................... Return on equity (%)..................................................... Income before income taxes on total assets (%) ............ Income before income taxes on net sales (%) ................ Exchange rate (Yen/US$) ............................................... Exchange rate (Yen/EURO) ........................................... Expenditure for plant and equipment ........................... Depreciation for tangible fixed assets ........................... R&D Expenditure ......................................................... 401.3 211.7 189.5 173.6 29.7 25.8 14.8 21.41 20.00 2.5 1.5 6.4 123.70 110.74 16.8 20.2 18.6 -2 - 373.9 225.6 148.3 149.6 25.8 22.9 12.4 18.01 16.72 2.2 1.5 6.1 109.88 95.55 13.3 16.2 17.6 (Billions of yen) Change Half year ended Sept. 30, 2001 7.3% -6.1% 27.8% 16.0% 15.0% 12.9% 19.4% +3.40 +3.28 0.3% point 0.0% point 0.3% point +13.82 +15.19 +3.5 +4.0 +0.9 820.0 452.7 367.3 341.8 59.9 52.5 28.4 40.97 38.24 5.0 3.1 6.4 122.16 107.79 39.8 33.1 39.9 Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 (Nine months ended December 31, 2001, 2000 and year ended March 31,2001) (Billions of yen) Nine months ended Nine months ended December 31, 2001 December 31, 2000 Net sales ........................................................................ Domestic sales.......................................................... Overseas sales .......................................................... Gross profit ................................................................... Operating income........................................................... Income before income taxes ........................................... Net income..................................................................... Net income per share-basic (yen).................................. Net income per share-diluted (yen)............................... Return on equity (%)..................................................... Income before income taxes on total assets (%) ............ Income before income taxes on net sales (%) ................ Total assets.................................................................... Shareholders’ equity...................................................... Debt ............................................................................... Equity ratio (%)............................................................. Equity per share (yen)................................................... Cash flows from operating activities:............................ Cash flows from investing activities:............................. Cash flows from financing activities:............................. Cash and cash equivalents at end of year ...................... Exchange rate (Yen/US$) ............................................... Exchange rate (Yen/EURO) ........................................... Expenditure for plant and equipment ........................... Depreciation for tangible fixed assets ........................... R&D Expenditure.......................................................... 1,221.4 664.5 556.9 515.5 89.6 78.3 43.2 62.38 58.24 7.5 4.5 6.4 1,760.3 601.2 586.0 34.2 860.86 33.7 -71.1 34.8 63.8 122.67 108.77 56.6 53.3 58.6 -3 - 1,109.2 681.7 427.5 443.6 76.9 69.0 38.2 55.28 51.16 6.9 4.4 6.2 1,586.7 561.4 539.9 35.4 810.51 12.0 2.4 10.3 138.2 108.12 97.60 50.6 45.1 55.8 Change Year ended March 31, 2001 10.1% -2.5% 30.3% 16.2% 16.4% 13.5% 13.1% +7.10 +7.08 0.6% point 0.1% point 0.2% point +173.6 +39.8 +46.1 -1.2% points +50.35 +21.7 -73.5 +24.4 -74.4 +14.55 +11.17 +6.0 +8.2 +2.7 1,538.2 930.4 607.8 613.3 105.1 97.7 53.2 76.85 71.02 9.7 6.0 6.4 1,704.7 556.7 538.9 32.7 803.64 102.7 -62.7 -88.3 64.4 110.60 100.41 73.3 62.1 78.2 Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 *Overview - In the third quarter of fiscal 2002, ended December 31, 2001, Ricoh increased consolidated net sales 7.3% from the previous corresponding period, to ¥401.3 billion. The rise would have been 1.9% without the foreign exchange impact. -Domestic sales declined 6.1%, reflecting a domestic economic slowdown and restrained capital expenditure on information technology among corporations. On the positive side, sales of printing systems climbed 17.1%. The prime seller in this category was multifunctional printers (MFPs), in which the Company focused on reinforcing its range and marketing. Overseas, sales surged 27.8% despite the U.S. economic downturn, reflecting the ongoing popularity of digital imaging systems, MFPs, and other office equipment, as well as the Japanese yen's depreciation. Overseas sales would have gained 14.2% without exchange rate fluctuations. -Operating income increased 15.0% in line with higher sales of MFPs, which are high-value-added offerings, the lower Japanese yen, and strengthened cost-cutting initiatives. -Other expenses decreased despite higher interest expense from the consolidation of Lanier Worldwide, Inc., owing to reductions in net interest expenses and improvement of foreign exchange impact. Consequently, income before income taxes advanced 12.9%. -These factors translated into a 19.4% improvement in net income. Consolidated Performance (yen) Net income per share (left axis) Return on equity (right axis) Return on assets (right axis) 30 (%) 3.0 2.7 2.3 2.4 1.5 1.5 20 2.6 2.3 2.2 2.5 2.0 1.7 1.5 1.6 1.5 1.5 10 1.0 18.23 19.04 18.01 21.57 21.47 19.50 21.41 Three months Three months Three months Three months Three months Three months Three months 0 0.0 ended ended ended ended ended ended ended Jun. 30, '00 Sept. 30, '00 Dec. 31, '00 Mar. 31, '01 Jun. 30, '01 Sept. 30, '01 Dec. 31, '01 (1Q) (2Q) (3Q) (4Q) (1Q) (2Q) (3Q) (billions of yen) Net sales (left axis) 450.0 14.9 14.8 13.5 13.1 12.6 (billions of yen) 15.0 14.8 Net income (right axis) 12.4 300.0 10.0 411.9 428.9 150.0 367.2 368.0 408.1 401.3 373.9 5.0 0.0 0.0 Three months Three months Three months Three months Three months Three months Three months ended ended ended ended ended ended ended Jun. 30, '00 Sept. 30, '00 Dec. 31, '00 Mar. 31, '01 Jun. 30, '01 Sept. 30, '01 Dec. 31, '01 (1Q) (2Q) (3Q) (4Q) (1Q) (2Q) (3Q) -4 - Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 *Consolidated Sales by Product Category (excluding foreign exchange impact) Imaging Solutions (sales up 1.8%, to ¥229.2 billion) Digital Imaging Systems (sales up 6.7%, to ¥161.9 billion) Digital plain-paper copiers (PPCs) sold well on the strength of new offerings. In Japan, sales were down slightly owing to an aggressive shift toward MFPs , but sales continued to do well overseas. Other Imaging Systems (sales down 8.4%, to ¥67.2 billion) This category mainly comprises analog PPCs. Category sales dropped in line with a shift toward digital models and MFPs, which offer superior performance and expandability. Network Input/Output Systems (sales up 12.8%, to ¥83.2 billion) Printing Systems (sales up 17.0%, to ¥70.5 billion) Ricoh continued to broaden its lineup and strengthen marketing to satisfy customer demand for higher speed and networking, leading to significant gains in sales of MFPs and other printers. Other Input/Output Systems (sales off 5.7%, to ¥12.6 billion) Category sales temporarily decreased owing to a switch to new standards in optical disc-related products. Network System Solutions (sales down 7.7%, to ¥45.0 billion) Customer demand has gradually moved away from standalone products toward multifunctional and networked hardware, software, and services. The Company responded swiftly to this trend by bolstering such solutions business areas as useware, networkable equipment, to meet customer requirements for networks. Nonetheless, sales of network equipment in this category, including personal computers and servers, declined owing to constrained corporate spending on information technology in Japan. Other Businesses (sales down 4.0%, to ¥43.8 billion) Sales were off 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 remained sluggish, reflecting stagnant demand period. Consolidated Sales by Category (billions of yen ) 450.0 Imaging solutions Networking I/O systems Network System solutions Other Businesses 43.8 (-2.4%) 43.1 (-4.0%) 44.8 45.0 (-7.6%) 45.0 (-7.7%) 48.7 300.0 83.2 (+18.8%) 78.9 (+12.8%) 70.0 150.0 229.2 (+9.0%) 210.3 214.1 (+1.8%) 0.0 Three months ended Dec. 31, '00 (3Q) Three months ended Dec. 31, '01 (3Q) -5 - Three months ended Dec. 31, '01 (3Q)* *Sales amount excluding exchange effect Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 * Consolidated Sales by Geographic Area (excluding foreign exchange impact) Japan (sales up 6.1%, to ¥211.7 billion) The Japanese economy continued to slow down during the term, prompting companies to constrain spending on information technology. Still, sales of printing systems increased 17.1% on the strength of an expanded lineup and more aggressive marketing, led by MFPs. At the same time, sales declined for such offerings as analog PPCs and facsimile machines, causing overall office equipment sales to decreased 6.3%. Sales of other businesses, including semiconductors and metering equipment, declined 5.2%. It is crucial for Ricoh to respond quickly to the changing domestic operating environment and diversifying customer demand. The Ricoh Group therefore plans to implement its domestic sales structure, build a more attractive product lineup, and improve its ability to provide customer-oriented solutions, while lowering costs. The Americas (sales up 18.7%, to ¥82.5 billion) Ricoh strove to overcome the impact of the adverse U.S. economy by aggressively expanding its regional sales networks, particularly in North America and stepping up sales to large corporations. Demand for digital PPCs and MFPs was particularly strong, which led to an overall sales improvement. Europe (sales up 14.8%, to ¥77.8 billion) With some exceptions, regional performance was generally strong. Demand remained solid for digital PPCs and MFPs, helping Ricoh maintain its top market share. Ricoh's multibrand strategy continued to bear fruit, leading to significantly higher sales for all brands. Other (sales up 2.3%, to ¥29.1 billion) Sales in other areas rose in keeping with the shift from analog to digital PPCs. Ricoh plans to take advantage of China's admission to the World Trade Organization by strengthening its local sales network. Other Europe The Americas Japan Sales by Geographic Area (billions of yen) 450.0 29.1 (+10.4%) 27.0 (+2.3%) 26.3 77.8 (+29.7%) 60.0 68.9 (+14.8%) 300.0 61.9 82.5 (+33.4%) 225.6 211.7 (-6.1%) 73.5 (+18.7%) 150.0 211.7 (-6.1%) 0.0 Three months ended Dec. 31, '00 (3Q) Three months ended Dec. 31, '01 (3Q) -6 - Three months ended Dec. 31, '01 (3Q)* *Sales amount excluding exchange effect Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 *Segment Information Business Segment Office Equipment Sales of MFPs grew steadily, reflecting their strong appeal, contributing significantly to earnings. Ricoh kept investing in preparation for the trend toward systems and solutions while suppressing fixed expenses to lower overall costs. Both sales and operating income rose, partly reflecting the lower yen. Other Businesses Operating income in this segment declined owing to a fall in sales of semiconductors and metering equipment. The Company responded to this situation by minimizing capital investment and stepping up cost-cutting. Business Segment(Office Equipment) (billions of yen) Net sales (left axis) Operating income (left axis) Operating income on net sales (right axis) 400.0 11.9 (%) 12.0 10.7 8.0 200.0 357.5 329.1 4.0 42.3 35.1 0.0 0.0 Three months ended Dec. 31, '00 (3Q) Three months ended Dec. 31, '01 (3Q) Business Segment(Other Businesses) (billions of yen) Net sales (left axis) Operating income (left axis) 4.6 45.0 (%) 4.5 47.2 44.7 20.0 2.1 -5.0 Operating income on net sales (right axis) 0.0 △ 0.1 Three months ended Dec. 31, '01 (3Q) Three months ended Dec. 31, '00 (3Q) -7 - 2.0 -0.5 Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 Geographic Segment Japan In contrast to decreases in sales of semiconductors and metering equipment, sales of office equipment rose on the back of exports and the yen's depreciation, leading to gains in sales and operating income. The Americas The sluggish U.S. economy hampered operations, but sales rose owing to an expanded marketing network. With initial investments in Lanier Worldwide, Inc. having run their course, the Company increased revenues and earnings by targeting large corporations while making up for lost ground in digital PPCs, thus improving segment operating income. Europe In recent years, Ricoh has successfully enhanced its presence in this market, enabling it to capture top shares in such mainline businesses as digital PPCs and MFPs. Sales and market share continued to grow during the period under review, leading to significantly higher regional sales and operating income . Other Sales and operating income expanded steadily owing to measures to strengthen marketing channels. Japan Net Sales (including intersegment) (left axis) Operating income on net sales (right axis) (billions of yen) 300.0 Operating income (left axis) 8.7 6.3 150.0 (%) 9.0 302.4 297.9 4.5 26.1 18.8 0.0 0.0 Three months ended Dec. 31, '00 (3Q) Three months ended Dec. 31, '01(3Q) The Americas Net Sales (including intersegment) (left axis) Operating income on net sales (right axis) (billions of yen) Operating income (left axis) (%) 80.0 2.0 83.8 40.0 62.4 0.8 1.0 0.8 0.4 0.7 0.0 0.0 Three months ended Dec. 31, '00 (3Q) Three months ended Dec. 31, '01(3Q) Europe Net Sales (including intersegment) (left axis) Operating income on net sales (right axis) (billions of yen) Operating income (left axis) 80.0 40.0 (%) 5.0 5.2 61.2 78.2 2.3 2.5 4.0 1.4 0.0 0.0 Three months ended Dec. 31, '00 (3Q) Three months ended Dec. 31, '01 (3Q) Other Net Sales (including intersegment) (left axis) Operating income on net sales (right axis) (billions of yen) 40.0 Operating income (left axis) 6.0 6.3 20.0 28.7 (%) 5.1 36.3 1.7 3.0 1.8 0.0 0.0 Three months ended Dec. 31, '00 (3Q) Three months ended Dec. 31, '01 (3Q) -8 - Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 (2) Expectations For the full term, Ricoh expects sales to decline in Japan as a result of the domestic recession, although overseas performance should offset that factor and lead to net sales gains. The Company projects higher net income as a result of intensive cost-cutting initiatives though its groupwide renovation activities as well as the lower Japanese yen. Ricoh has modified the assumptions and forecasts announced when releasing first-half results at the end of October 31, 2001, as follows. Exchange Rate Assumptions for the three months ended March 31, 2002 US$1 = ¥ 128.00 ( ¥ 118.06 in the previous corresponding period) Euro1= ¥ 113.00 (¥108.83 in the previous corresponding period) Exchange Rate Assumptions for the Full Fiscal Year ended March 31, 2002 US$1 = ¥ 124.00 (¥110.60 in previous fiscal year) Euro1 = ¥109.83 (¥100.41 in previous fiscal year) (Billions of yen) Nine months Three months Year ended Year ended ended Dec.31, ended Mar.31, March 31, 2002 March 31, 2001 2001 2002 (Forecast) (Forecast) Net sales ......................................... 1,221.4 Domestic sales........................... 664.5 Overseas sales ........................... 556.9 Gross profit .................................... 515.5 Operating income............................ 89.6 Income before income taxes ............ 78.3 Net income...................................... 43.2 Notes: *1…Net sales would be eighth consecutive year of growth. *2…Net income would be tenth consecutive year of growth. 448.5 240.4 208.0 174.4 36.3 34.6 18.2 1,670.0 905.0 765.0 690.0 126.0 113.0 61.5 1,538.2 930.4 607.8 613.3 105.1 97.7 53.2 Change 8.6% (*1) -2.7% 25.9% 12.5% 19.9% 15.6% 15.5% (*2) * 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. -9 - Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 2. Consolidated Statements of Income (Three months ended December 31, 2001 and 2000) Three months ended December 31, 2001 Net sales ............................................................................. Cost of sales ...................................................................... Percentage of net sales (%) ......................................... Gross profit ............................................................................ Percentage of net sales (%) ......................................... Selling, general and administrative expenses ............................ Percentage of net sales (%) ......................................... Operating income..................................................................... Percentage of net sales (%) ......................................... Other (income) expenses Interest and dividend income............................................. Percentage of net sales (%) .................................... Interest expense................................................................. Percentage of net sales (%) .................................... Other, net .......................................................................... Percentage of net sales (%) .................................... Income before income taxes, minority interests and equity in earnings of affiliates.................................................. Percentage of net sales (%) ......................................... Provision for income taxes .................................................. Percentage of net sales (%) ......................................... Minority interests in earnings of subsidiaries ......................... Percentage of net sales (%) ......................................... Equity in earnings of affiliates ................................................. Percentage of net sales (%) ......................................... Net income............................................................................... Percentage of net sales (%)................................................ Three months ended December 31, 2000 (Millions of yen) Change (%) 401,331 227,700 56.7 173,631 43.3 143,902 35.9 29,729 7.4 373,982 224,315 60.0 149,667 40.0 123,824 33.1 25,843 6.9 +27,349 +3,385 1,159 0.3 2,001 0.5 3,015 0.8 1,084 0.3 1,862 0.5 2,142 0.6 +75 (6.9) +139 (7.5) 25,872 6.4 10,969 2.7 536 0.1 524 0.1 14,891 3.7 22,923 6.1 10,745 2.9 65 0.0 362 0.1 12,475 3.3 Reference: Exchange rate (average rate for the corresponding periods) Three months ended Three months ended December 31, 2001 December 31, 2000 US$1................................. ¥ 123.70 ¥ 109.88 EURO 1............................ ¥ 110.74 ¥ 95.55 +23,964 (16.0) +20,078 (16.2) +3,886 (15.0) +873 (40.8) +2,949 (12.9) +224 +162 (44.8) +2,416 (19.4) Year ended March 31, 2001 ¥ 110.60 ¥ 100.41 (Millions of yen) Nine months ended Nine months ended December 31, 2001 December 31, 2000 Change (%) 1,221,418 705,891 57.8 515,527 42.2 425,894 34.9 89,633 7.3 1,109,285 665,589 60.0 443,696 40.0 366,712 33.1 76,984 6.9 +112,133 (10.1) +40,302 (6.1) 4,055 0.3 6,563 0.5 8,729 0.7 5,919 0.5 4,692 0.4 9,117 0.8 -1,864 (-31.5) 78,396 6.4 34,488 2.8 2,149 0.2 1,540 0.1 43,299 3.5 69,094 6.2 30,579 2.7 1,844 0.1 1,612 0.1 38,283 3.5 Reference: Exchange rate (average rate for the corresponding periods) Nine months ended Nine months ended December 31, 2001 December 31, 2000 US$1................................. ¥ 122.67 ¥ 108.12 EURO 1............................ ¥108.77 ¥ 97.60 - 10 - (2.1) +471 (724.6) (Nine months ended December 31, 2001, 2000 and year ended March 31,2001) Net sales ....................................................................... Cost of sales ................................................................ Percentage of net sales (%) ................................... Gross profit ...................................................................... Percentage of net sales (%) ................................... Selling, general and administrative expenses ...................... Percentage of net sales (%) ................................... Operating income............................................................... Percentage of net sales (%) ................................... Other (income) expenses Interest and dividend income....................................... Percentage of net sales (%) .............................. Interest expense........................................................... Percentage of net sales (%) .............................. Other, net .................................................................... Percentage of net sales (%) .............................. Income before income taxes, minority interests and equity in earnings of affiliates............................................ Percentage of net sales (%) ................................... Provision for income taxes ............................................ Percentage of net sales (%) .............................. Minority interests in earnings of subsidiaries ................... Percentage of net sales (%) ................................... Equity in earnings of affiliates ........................................... Percentage of net sales (%) ................................... Net income......................................................................... Percentage of net sales (%).......................................... (7.3) (1.5) +71,831 (16.2) +59,182 (16.1) +12,649 (16.4) +1,871 (39.9) -388 (-4.3) +9,302 (13.5) +3,909 (12.8) +305 (16.5) -72 (-4.5) +5,016 (13.1) Year ended March 31, 2001 1,538,262 924,893 60.1 613,369 39.9 508,264 33.1 105,105 6.8 8,045 0.5 7,787 0.5 7,598 0.4 97,765 6.4 43,512 2.8 3,123 0.2 2,098 0.1 53,228 3.5 Year ended March 31, 2001 ¥ 110.60 ¥ 100.41 Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 3. Consolidated Sales by Product Line (Three months ended December 31, 2001 and 2000) Three months ended December 31, 2001 Copiers and Related Supplies: Domestic ..................................................... Overseas ...................................................... Total............................................................ Percentage of net sales (%) ............... Communications and Information Systems: Domestic ..................................................... Overseas ...................................................... Total............................................................ Percentage of net sales (%) ............... Other Businesses: Domestic ..................................................... Overseas ...................................................... Total............................................................ Percentage of net sales (%) ................... Total: Domestic ..................................................... Percentage of net sales (%) ............... Overseas ...................................................... Percentage of net sales (%) .............. The Americas ..................................... Percentage of net sales (%) . Europe................................................ Percentage of net sales (%) . Other.................................................. Percentage of net sales (%) . Total .................................................................. (Millions of yen) Change (%) Excluding foreign Three months ended December 31, 2000 exchange impact (%) 110,342 142,950 253,292 63.1 116,415 108,089 224,504 60.0 -6,073 (-5.2) +34,861 (32.3) +28,788 (12.8) -6,073 (-5.2) +18,883 (17.5) +12,810 (5.7) 67,285 36,943 104,228 26.0 73,207 31,393 104,600 28.0 -5,922 (-8.1) +5,550 (17.7) -372 (-0.4) -5,922 (-8.1) +2,130 (6.8) -3,792 (-3.6) 34,159 9,652 43,811 10.9 36,040 8,838 44,878 12.0 -1,881 (-5.2) +814 (9.2) -1,067 (-2.4) -1,881 (-5.2) +106 (1.2) -1,775 (-4.0) 211,786 52.8 189,545 47.2 82,575 20.6 77,849 19.4 29,121 7.2 401,331 225,662 60.3 148,320 39.7 61,913 16.6 60,022 16.0 26,385 7.1 373,982 -13,876 (-6.1) -13,876 (-6.1) +41,225 (27.8) +21,119 (14.2) +20,662 (33.4) +11,592 (18.7) +17,827 (29.7) +8,909 (14.8) (*1) Reference: Exchange rate (average rate for the corresponding periods) Three months ended Three months ended December 31, 2001 December 31, 2000 US$1................................. ¥ 123.70 ¥ 109.88 EURO 1............................ ¥ 110.74 ¥ 95.55 +2,736 (10.4) +27,349 Copiers and Related Supplies: Domestic ........................................................ Overseas ......................................................... Total............................................................... Percentage of net sales (%) .................. Communications and Information Systems: Domestic ........................................................ Overseas ......................................................... Total............................................................... Percentage of net sales (%) .................. Other Businesses: Domestic ........................................................ Overseas ......................................................... Total............................................................... Percentage of net sales (%) ...................... Total: Domestic ........................................................ Percentage of net sales (%) .................. Overseas ......................................................... Percentage of net sales (%) ................. The Americas ........................................ Percentage of net sales (%) .... Europe................................................... Percentage of net sales (%) .... Other..................................................... Percentage of net sales (%) .... Total ..................................................................... (2.3) +7,243 (1.9) Year ended March 31, 2001 ¥ 110.60 ¥ 100.41 Nine months ended December 31, 2001, 2000 and year ended March 31,2001 Nine months Nine months ended ended Dec.31, 2001 Dec.31, 2000 (7.3) +618 Change(%) (Millions of yen) Excluding foreign Year ended exchange impact (%) Mar 31, 2001 340,726 423,260 763,986 62.5 343,066 -2,340 (-0.7) 314,552 +108,708 (34.6) 657,618 +106,368 (16.2) 59.3 -2,340 (-0.7) +65,869 (20.9) +63,529 (9.7) 467,956 447,377 915,333 59.5 216,301 106,806 323,107 26.5 217,350 85,546 302,896 27.3 -1,049 (-0.5) +21,260 (24.9) +20,211 (6.7) -1,049 (-0.5) +12,532 (14.6) +11,483 (3.8) 300,682 122,359 423,041 27.5 107,484 26,841 134,325 11.0 121,369 27,402 148,771 13.4 -13,885 (-11.4) -561 (-2.0) -14,446 (-9.7) -13,885 (-11.4) -2,124 (-7.8) -16,009 (-10.8) 161,795 38,093 199,888 13.0 664,511 681,785 -17,274 (-2.5) 54.4 61.5 556,907 427,500 +129,407 (30.3) 45.6 38.5 245,241 174,409 +70,832 (40.6) 20.1 15.7 225,984 177,205 +48,779 (27.5) 18.5 16.0 85,682 75,886 +9,796 (12.9) 7.0 6.8 1,221,418 1,109,285 +112,133 (10.1) -17,274 (-2.5) 930,433 60.5 607,829 39.5 252,698 16.4 247,449 16.1 107,682 7.0 1,538,262 +76,277 (17.8) +41,945 (24.0) +29,697 (16.8) +4,635 (6.1) +59,003 (5.3) (*2) Reference: Exchange rate (average rate for the corresponding periods) Nine months ended Nine months ended December 31, 2001 December 31, 2000 US$1................................. EURO 1............................ ¥ 122.67 ¥108.77 ¥ 108.12 ¥ 97.60 - 11 - Year ended March 31, 2001 ¥ 110.60 ¥ 100.41 Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 4. Consolidated Sales by Category (Three months ended December 31, 2001 and 2000) Three months ended December 31, 2001 Imaging Solutions: Digital Imaging Systems .................................... Percentage of net sales (%) ............... Domestic ................................................ Overseas ................................................ Other Imaging Systems...................................... Percentage of net sales (%) ............... Domestic ................................................ Overseas ................................................ Total Imaging Solutions..................................... Percentage of net sales (%) ............... Domestic ................................................ Overseas ................................................ Networking input/output systems: Printing Systems................................................ Percentage of net sales (%) ................ Domestic ................................................ Overseas ................................................ Other Input/Output Systems ............................ Percentage of net sales (%) ................ Domestic ................................................ Overseas ................................................ Total Networking input/output systems .......... Percentage of net sales (%) ............... Domestic ................................................ Overseas ................................................ Network system solutions ................................ Percentage of net sales (%) ............... Domestic ................................................ Overseas ................................................ <Office Equipment Total>................................ Percentage of net sales (%) ................ Domestic ................................................ Overseas ................................................ < Other Businesses > ........................................ Percentage of net sales (%) ............... Domestic ................................................ Overseas ................................................ Grand Total ................................................ Percentage of net sales (%) ................ Domestic ................................................ Percentage of net sales (%) ............... Overseas ................................................ Percentage of net sales (%) ............... The Americas ..................................... Percentage of net sales (%) .... Europe............................................... Percentage of net sales (%) .... Other.................................................. Percentage of net sales (%) .... Three months ended December 31, 2000 (Millions of yen) Change (%) Excluding foreign exchange impact (%) 161,938 40.4 69,631 92,307 67,295 16.8 24,442 42,853 229,233 57.2 94,073 135,160 142,025 38.0 71,831 70,194 68,299 18.3 33,927 34,372 210,324 56.3 105,758 104,566 +19,913 (14.0) 70,597 17.6 35,286 35,311 12,636 3.1 3,937 8,699 83,233 20.7 39,223 44,010 45,054 11.2 44,331 723 357,520 89.1 177,627 179,893 43,811 10.9 34,159 9,652 401,331 100.0 211,786 52.8 189,545 47.2 82,575 20.6 77,849 19.4 29,121 7.2 56,954 15.2 30,138 26,816 13,089 3.5 5,710 7,379 70,043 18.7 35,848 34,195 48,737 13.0 48,016 721 329,104 88.0 189,622 139,482 44,878 12.0 36,040 8,838 373,982 100.0 225,662 60.3 148,320 39.7 61,913 16.6 60,022 16.0 26,385 7.1 +9,547 (6.7) -2,200 (-3.1) +22,113 (31.5) -1,004 (-1.5) -2,200 (-3.1) +11,747 (16.7) -5,733 (-8.4) -9,485 (-28.0) +8,481 (24.7) +18,909 (9.0) -9,485 (-28.0) +3,752 (10.9) +3,814 (1.8) -11,685 (-11.0) +30,594 (29.3) -11,685 (-11.0) +15,499 (14.8) +13,643 (24.0) +9,686 (17.0) +5,148 (17.1) +8,495 (31.7) -453 (-3.5) +5,148 (17.1) +4,538 (16.9) -749 (-5.7) -1,773 (-31.1) +1,320 (17.9) +13,190 (18.8) -1,773 (-31.1) +1,024 (13.9) +8,937 (12.8) +3,375 (9.4) +9,815 (28.7) -3,683 (-7.6) +3,375 (9.4) +5,562 (16.3) -3,733 (-7.7) -3,685 (-7.7) +2 (0.3) +28,416 (8.6) -3,685 (-7.7) -48 (-6.7) +9,018 (2.7) -11,995 (-6.3) +40,411 (29.0) -1,067 (-2.4) -11,995 (-6.3) +21,013 (15.1) -1,775 (-4.0) -1,881 (-5.2) +814 (9.2) +27,349 (7.3) -1,881 (-5.2) +106 (1.2) +7,243 (1.9) -13,876 (-6.1) -13,876 (-6.1) +41,225 (27.8) +21,119 (14.2) +20,662 (33.4) +11,592 (18.7) +17,827 (29.7) +8,909 (14.8) +2,736 (10.4) +618 (2.3) 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…same as (*1) on page 11 - 12 - Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 ( Nine months ended December 31, 2001, 2000 and year ended March 31,2001) Nine months Nine months ended ended Dec.31, 2001 Dec.31, 2000 Imaging Solutions: Digital Imaging Systems ........................... Percentage of net sales (%) ............ Domestic ............................................. Overseas ............................................. Other Imaging Systems................................... Percentage of net sales (%) ............ Domestic ............................................. Overseas ............................................. Total Imaging Solutions.................................. Percentage of net sales (%) ............ Domestic ............................................. Overseas ............................................. Networking input/output systems: Printing Systems ...................................... Percentage of net sales (%) ............. Domestic ............................................. Overseas ............................................. Other Input/Output Systems ......................... Percentage of net sales (%) ............. Domestic ............................................. Overseas ............................................. Total Networking input/output systems ....... Percentage of net sales (%) ............ Domestic ............................................. Overseas ............................................. Network system solutions ............................. Percentage of net sales (%) ............ Domestic ............................................. Overseas ............................................. <Office Equipment Total>............................. Percentage of net sales (%) ............. Domestic ............................................. Overseas ............................................. < Other Businesses > ..................................... Percentage of net sales (%) ............ Domestic ............................................. Overseas ............................................. Grand Total ............................................. Percentage of net sales (%) ............. Domestic ............................................. Percentage of net sales (%) ............ Overseas ............................................. Percentage of net sales (%) ............ The Americas.................................. Percentage of net sales (%) . Europe............................................ Percentage of net sales (%) . Other............................................... Percentage of net sales (%) . (Millions of yen) Change (%) Excluding Year ended foreign Mar 31, 2001 exchange impact (%) 473,906 38.8 222,153 251,753 213,648 17.5 76,028 137,620 687,554 56.3 298,181 389,373 417,137 37.6 232,335 184,802 215,470 19.4 95,884 119,586 632,607 57.0 328,219 304,388 +56,769 (13.6) +31,123 -10,182 (-4.4) +66,951 (36.2) -1,822 (-0.8) -10,182 (-4.4) +41,305 (22.4) -15,298 (-7.1) -19,856 (-20.7) +18,034 (15.1) +54,947 (8.7) -19,856 (-20.7) +4,558 (3.8) +15,825 (2.5) -30,038 (-9.2) +84,985 (27.9) -30,038 (-9.2) +45,863 (15.1) 219,003 17.9 101,186 117,817 32,532 2.7 11,325 21,207 251,535 20.6 112,511 139,024 148,004 12.1 146,335 1,669 1,087,093 89.0 557,027 530,066 134,325 11.0 107,484 26,841 1,221,418 100.0 664,511 54.4 556,907 45.6 245,241 20.1 225,984 18.5 85,682 7.0 146,715 13.2 72,096 74,619 31,960 2.9 13,733 18,227 178,675 16.1 85,829 92,846 149,232 13.5 146,368 2,864 960,514 86.6 560,416 400,098 148,771 13.4 121,369 27,402 1,109,285 100.0 681,785 61.5 427,500 38.5 174,409 15.7 177,205 16.0 75,886 6.8 +72,288 (49.3) +60,648 (41.3) +29,090 (40.3) +43,198 (57.9) +572 (1.8) +29,090 (40.3) +31,558 (42.3) -145 (-0.5) -2,408 (-17.5) +2,980 (16.3) +72,860 (40.8) -2,408 (-17.5) +2,263 (12.4) +60,503 (33.9) +26,682 (31.1) +46,178 (49.7) -1,228 (-0.8) +26,682 (31.1) 33,821 (36.4) -1,316 (-0.9) -33 (-0.0) -1,195 (-41.7) +126,579 (13.2) -33 (-0.0) -1,283 (-44.8) +75,012 (7.8) -3,389 (-0.6) +129,968 (32.5) -14,446 (-9.7) -3,389 (-0.6) +78,401 (19.6) -16,009 (-10.8) -13,885 (-11.4) -561 (-2.0) +112,133 (10.1) -13,885 (-11.4) -2,124 (-7.8) 59,003 (5.3) -17,274 (-2.5) -17,274 (-2.5) +129,407 (30.3) +76,277 (17.8) +70,832 (40.6) +41,945 (24.0) +48,779 (27.5) +29,697 (16.8) +9,796 (12.9) +4,635 (7.5) (6.1) 574,161 37.3 313,805 260,356 292,872 19.1 120,963 171,909 867,033 56.4 434,768 432,265 217,308 14.1 109,824 107,484 44,530 2.9 19,336 25,194 261,838 17.0 129,160 132,678 209,503 13.6 204,710 4,793 1,338,374 87.0 768,638 569,736 199,888 13.0 161,765 38,093 1,538,262 100.0 930,433 60.5 607,829 39.5 252,698 16.4 247,449 16.1 107,682 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…same as (*2) on page 11 - 13 - Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 5. Consolidated Balance Sheets (December 31, 2001 and March 31, 2001) Assets (Millions of yen) December 31, 2001 March 31, 2001 Change Current Assets Cash and deposits ........................................................................ Trade receivables .......................................................................... Marketable securities ................................................................... Inventories.................................................................................... Other current assets .................................................................... Total Current Assets.......................................................................... 75,994 410,683 74,490 173,941 50,826 785,934 75,644 410,861 62,213 176,383 54,306 779,407 +350 -178 +12,277 -2,442 -3,480 +6,527 Fixed Assets Tangible fixed assets....................................................................... Finance receivable .......................................................................... Other Investments and other assets............................................... Total Fixed Assets.............................................................................. 268,636 451,451 254,370 974,457 267,249 428,790 229,345 925,384 +1,387 +22,661 +25,025 +49,073 1,760,391 1,704,791 +55,600 Total Assets ....................................................................................... Liabilities and Minority Interest (Millions of yen) December 31, 2001 March 31, 2001 Change Current Liabilities Trade payable............................................................................... Short-term borrowings ................................................................. Other current liabilities................................................................. Total Current Liabilities ..................................................................... 265,704 316,627 136,675 719,006 291,791 321,185 166,460 779,436 -26,087 -4,558 -29,785 -60,430 Fixed Liabilities Long-term indebtedness ............................................................... Retirement benefit obligation ....................................................... Other fixed liabilities .................................................................... Total Fixed Liabilities ......................................................................... 269,377 92,835 28,199 390,411 217,743 82,828 20,625 321,196 +51,634 +10,007 +7,574 +69,215 Total Liabilities................................................................................... 1,109,417 1,100,632 +8,785 Minority Interest................................................................................ 49,694 47,431 +2,263 December 31, 2001 March 31, 2001 Change 106,223 157,418 367,426 -29,787 601,280 103,434 154,635 332,447 -33,788 556,728 +2,789 +2,783 +34,979 +4,001 +44,552 1,760,391 1,704,791 +55,600 Shareholders’ Investment (Millions of yen) Shareholders’ Investment Common stock ............................................................................. Additional paid-in capital............................................................. Retained earnings.......................................................................... Accumulated other comprehensive income.................................. Total Shareholders’ Investment.......................................................... Total Liabilities and Shareholders’ Investment ................................. Notes: December 31, 2001 March 31, 2001 Contents of cash and deposits Cash and cash equivalents............................................................ Time deposits............................................................................... 63,856 12,138 64,457 11,187 -601 +951 Accumulated other comprehensive income; Net unrealized holding gains on available-for-sale securities........................................................... Minimum pension liability adjustments ...................................... Net unrealized gains on derivative instruments............................ Cumulative translation adjustments............................................. 10,506 -23,579 433 -17,147 11,332 -23,579 -21,541 -826 +433 +4,394 Exchange rate (end of term) US$ 1................................ EURO 1............................ December 31, 2001 ¥ 131.95 ¥ 116.51 Change March 31, 2001 ¥ 123.90 ¥109.33 - 14 - Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 6. Statements of Cash Flow (Consolidated) (Nine months ended December 31, 2001, 2000 and year ended March 31,2001) Nine months ended December 31, 2001 I. Cash Flows from Operating Activities: 1. Net income ............................................................ 2. Adjustments to reconcile net income to net cash provided by operating activities— Depreciation and amortization.......................... Equity in earnings of affiliates, net of dividends received Deferred income taxes ....................................... Loss on disposal and sales of plant and equipment Changes in assets and liabilities, net of effects from acquisition— Decrease (increase) in trade receivables10,522 Decrease (increase) in inventories ............. Increase in finance receivables ................... (Decrease) increase in trade payables........ (Decrease) increase in accrued income taxes and accrued expenses and other ....................... Increase in retirement benefit obligation9,646 Other, net .................................................. Net cash provided by operating activities ................... II. Cash Flows from Investing Activities: 1. Proceeds from sales of plant and equipment......... 2. Expenditures for plant and equipment .................. 3. Payments for purchases of available-for-sale securities 4. Proceeds from sales of available-for-sale securities 5. Increase in investment and loans to subsidiaries, net 6. Decrease (increase) in time deposits ..................... 7. Acquisition amount of Lanier Worldwide, Inc.... 8. Other, net .............................................................. Net cash used in investing activities ............................ III. Cash Flows from Financing Activities: 1. Proceeds from long-term indebtedness.................. 2. Repayment of long-term indebtedness.................. 3. Increase in short-term borrowings, net.................. 4. Proceeds from issuance of long-term debt securities 5. Repayment of long-term debt securities ............... 6. Cash dividends paid .............................................. 7. Other, net .............................................................. Net cash provided by (used in) financing activities34,817 IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents V. Net Increase (Decrease) in Cash and Cash Equivalents VI. Cash and Cash Equivalents at Beginning of Year64,457 VII. Cash and Cash Equivalents at End of Year ............. - 15 - Nine months ended December 31, 2000 (Millions of yen) Year ended March 31, 2001 43,299 38,283 53,228 53,396 (1,081) (2,384) 993 45,176 (1,168) (4,999) 1,290 62,142 (1,056) (9,994) 2,223 (32,540) 7,874 (18,119) (30,024) (32,476) (12,512) (22,033) 15,598 (7,167) (15,127) 16,235 (33,866) 4,612 (6,499) 33,757 (20,257) 1,667 593 12,043 697 (56,501) (37,097) 39,677 49 (359) (17,610) (71,144) 914 (50,679) (17,392) 85,330 72 (2,847) (28,103) (12,980) 2,418 1,120 (73,040) (52,853) 93,705 51 6,797 30,863 (55,966) 35,234 43,500 (10,000) (8,318) (496) 10,376 1,969 (601) 111,838 63,856 23,367 (43,675) 39,179 (7,963) (532) (88,382) 1,623 26,460 111,838 138,298 33,183 (114,701) 5,565 (2,990) (7,964) (1,475) 27,310 5,743 102,728 (10,405) (62,728) 1,001 (47,381) 64,457 Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 7. Segment Information (1) Business Segment Information (Three months ended December 31, 2001) (Millions of yen) Three months ended Three months ended December 31, 2001 December 31, 2000 Net sales: Office Equipment ........................................................ Other Businesses......................................................... Intersegment ................................................................ Total ................................................................................. Operating expenses: Office Equipment ........................................................ Other Businesses......................................................... Intersegment ................................................................ Corporate and eliminations ......................................... Total ................................................................................. Operating income: Office Equipment ........................................................ Other Businesses......................................................... Intersegment ................................................................ Corporate and eliminations ......................................... Total .................................................................................. Operating income on segment sales: Office Equipment ........................................................ Other Businesses......................................................... (%) 357,520 44,786 -975 401,331 329,104 47,274 -2,396 373,982 +28,416 (8.6) -2,488 (-5.3) +1,421 (-59.3) +27,349 (7.3) 315,121 44,823 -976 12,634 371,602 293,966 45,096 -2,388 11,465 348,139 +21,155 (7.2) -273 (-0.6) +1,412 (-59.1) +1,169 (10.2) +23,463 (6.7) 42,399 -37 1 -12,634 29,729 35,138 2,178 -8 -11,465 25,843 +7,261 (20.7) -2,215(-101.7) +9(-112.5) -1,169 (10.2) +3,886 (15.0) 11.9% -0.1% 10.7% 4.6% (Nine months ended December 31, 2001) (Millions of yen) Nine months ended December 31, 2001 Net sales: Office Equipment ........................................................ Other Businesses......................................................... Intersegment ................................................................ Total ................................................................................. Operating expenses: Office Equipment ........................................................ Other Businesses......................................................... Intersegment ................................................................ Corporate and eliminations ......................................... Total ................................................................................. Operating income: Office Equipment ........................................................ Other Businesses......................................................... Intersegment ................................................................ Corporate and eliminations ......................................... Total .................................................................................. Change Nine months ended December 31, 2000 Change (%) +126,579 -15,340 +894 +112,133 (13.2) (-10.0) (-22.7) (10.1) 1,087,093 137,362 -3,037 1,221,418 960,514 152,702 -3,931 1,109,285 960,248 136,039 -3,063 38,561 1,131,785 858,304 142,734 -3,921 35,184 1,032,301 101,944 (11.9) -6,695 (-4.7) +858 (-21.9) +3,377 (9.6) +99,484 (9.6) 126,845 1,323 26 -38,561 89,633 102,210 9,968 -10 -35,184 76,984 +24,635 (24.1) -8,645 (-86.7) +36(-360.0) -3,377 (9.6) +12,649 (16.4) 11.7% 1.0% 10.6% 6.5% Operating income on segment sales: Office Equipment ........................................................ Other Businesses......................................................... - 16 - Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 (2) Geographic Segment Information (Three months ended December 31, 2001) (Millions of yen) Three months ended Three months ended December 31, 2001 December 31, 2000 Net sales: Japan Unaffiliated Customers .................................................. Intersegment ................................................................... Total .............................................................................. The Americas Unaffiliated Customers .................................................. Intersegment ................................................................... Total .............................................................................. Europe Unaffiliated Customers .................................................. Intersegment ................................................................... Total .............................................................................. Other Unaffiliated Customers .................................................. Intersegment ................................................................... Total .............................................................................. Intersegment ................................................................... Total .................................................................................... Operating expenses: Japan .......................................................................... The Americas ................................................................. Europe .......................................................................... Other .............................................................................. Corporate and eliminations ............................................ Total .................................................................................... Operating income: Japan .......................................................................... The Americas ................................................................. Europe .......................................................................... Other .............................................................................. Corporate and eliminations ............................................ Total ..................................................................................... Operating income on segment sales: Japan .......................................................................... The Americas ................................................................. Europe .......................................................................... Other .............................................................................. - 17 - Change (%) 222,195 80,265 302,460 232,362 65,573 297,935 -10,167 (-4.4) +14,692 (22.4) +4,525 (1.5) 81,388 2,462 83,850 61,787 623 62,410 +19,601 (31.7) +1,839 (295.2) +21,440 (34.4) 77,007 1,230 78,327 60,492 761 61,253 +16,515 (27.3) +469 (61.6) +16,984 (27.7) 20,741 15,587 36,328 -99,544 401,331 19,341 9,369 28,710 -76,326 373,982 +1,400 (7.2) +6,218 (66.4) +7,618 (26.5) -23,218 (30.4) +27,349 (7.3) 276,296 83,149 74,151 34,461 -96,455 371,602 279,131 61,938 59,851 26,913 -79,694 348,139 -2,835 +21,211 +14,300 +7,548 -16,761 +23,463 26,164 701 4,086 1,867 -3,089 29,729 18,804 472 1,402 1,797 3,368 25,843 8.7% 0.8% 5.2% 5.1% 6.3% 0.8% 2.3% 6.3% (-1.0) (34.2) (23.9) (28.0) (21.0) (6.7) +7,360 (39.1) +229 (48.5) +2,684 (191.4) +70 (3.9) -6,457(-191.7) +3,886 (15.0) Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 (Nine months ended December 31, 2001) (Millions of yen) Nine months ended December 31, 2001 Net sales: Japan Unaffiliated Customers .................................................. Intersegment ................................................................... Total .............................................................................. The Americas Unaffiliated Customers .................................................. Intersegment ................................................................... Total .............................................................................. Europe Unaffiliated Customers .................................................. Intersegment ................................................................... Total .............................................................................. Other Unaffiliated Customers .................................................. Intersegment ................................................................... Total .............................................................................. Intersegment ................................................................... Total .................................................................................... Operating expenses: Japan .......................................................................... The Americas ................................................................. Europe .......................................................................... Other .............................................................................. Corporate and eliminations ............................................ Total .................................................................................... Operating income: Japan .......................................................................... The Americas ................................................................. Europe .......................................................................... Other .............................................................................. Corporate and eliminations ............................................ Total ..................................................................................... Nine months ended December 31, 2000 Change (%) 689,465 230,859 920,324 698,818 206,471 905,289 -9,353 (-1.3) +24,388 (11.8) +15,035 (1.7) 243,527 5,827 249,354 173,829 3,498 177,327 +69,698 (40.1) +2,329 (66.6) +72,027 (40.6) 224,793 3,390 228,183 179,652 2,291 181,943 +45,141 (25.1) +1,099 (48.0) +46,240 (25.4) 63,633 44,766 108,399 56,986 28,489 85,475 +6,647 (11.7) +16,277 (57.1) +22,924 (26.8) -284,842 1,221,418 -240,749 1,109,285 -44,093 (18.3) +112,133 (10.1) 841,193 246,432 219,393 103,859 -279,092 1,131,785 840,950 172,614 175,426 81,407 -238,096 1,032,301 79,131 2,922 8,790 4,540 -5,750 89,633 64,339 4,713 6,517 4,068 -2,653 76,984 8.6% 1.2% 3.9% 4.2% 7.1% 2.7% 3.6% 4.8% Operating income on segment sales: Japan .......................................................................... The Americas ................................................................. Europe .......................................................................... Other .............................................................................. - 18 - +243 +73,818 +43,967 +22,452 -40,996 +99,484 (0.0) (42.8) (25.1) (27.6) (17.2) (9.6) +14,792 (23.0) -1,791 (-38.0) +2,273 (34.9) +472 (11.6) -3,097 (116.7) +12,649 (16.4) Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 8. Significant Accounting Policies 1. Items relating to the scale of consolidation and the application of the equity method Consolidated subsidiaries 14 additions, including Ricoh Chubu Company, Ltd. and Ricoh Kyusyu Company, Ltd. 5 removals, including Higashi Shizuoka Ricoh Company, Ltd. Companies accounted for by the equity method: 5 additions, including Tohoku Ricoh (Fuzhon) Printing Products Co., Ltd. 1 removal: 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. 3. Notes From fiscal 2002, Ricoh has adopted SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities,” and SFAS No. 138, “Accounting for Certain Derivative Instruments and Certain Hedging Activities,” an amendment of FASB Statement No. 133. These standards require all that every derivative instrument be measured at its fair value and be recorded in the consolidated balance sheets as an asset or liability. Under the new standards, the unrealized gains of ¥ 1,864 million net of the income tax effect are deducted from other comprehensive income in the consolidated balance sheets, and a decrease to net income of ¥ 66 million are recorded in the consolidated statements of income. - 19 - Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 . (Blank Page) - 20 - Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 Ricoh Company, Ltd. QUARTERLY REPORT -APPENDIX- (3rd Quarter Ended December 31, 2001) 1. Quarterly Performance Outline (Consolidated) Net sales ........................................................... Gross profit ...................................................... Operating income .............................................. Income before income taxes .............................. Net income ........................................................ Net income per share (yen) ............................... Capital expenditure ........................................... Depreciation for tangible fixed assets ............... R&D expenditure .............................................. Interest income (expenses) net ......................... Exchange rate (Yen/US$) ................................... Exchange rate (Yen/EURO) ............................... (billions of yen) Three months Change Three months Change ended June 30, ’01 (%) ended Sept. 30, ’01 (%) 411.9 174.0 31.6 27.1 14.8 21.47 17.9 15.1 17.8 -1.2 122.60 107.25 12.2 17.3 20.6 17.3 17.9 - 408.1 167.8 28.2 25.3 13.5 19.50 21.8 17.9 22.0 -0.3 121.72 108.32 10.9 15.3 13.5 10.2 2.6 - Three months Change ended Dec. 31, ’01 (%) 401.3 173.6 29.7 25.8 14.8 21.41 16.8 20.2 18.6 -0.8 123.70 110.74 2. Quarterly Sales by Product Line (Consolidated) (billions of yen) Three months Change Change(*) Three months Change Change(*)Three months Change Change(*) ended June 30, ended Sept. 30, (%) (%) 2001 (1Q) Copiers and Related Supplies............ Domestic ..................................... Overseas ...................................... Communications and Information Systems Domestic ..................................... Overseas ...................................... Other Businesses ............................... Domestic ..................................... Overseas ...................................... Total .................................................. Domestic ..................................... Overseas ...................................... The Americas .............................. Europe......................................... Other ........................................... 7.3 16.0 15.0 12.9 19.4 - 261.0 120.7 140.3 106.9 72.2 34.7 43.9 35.7 8.1 411.9 228.7 183.2 79.8 76.1 27.1 (%) (%) 2001 (2Q) 17.5 11.7 1.5 1.5 35.8 23.4 10.0 7.5 7.4 7.4 15.9 7.5 -8.1 -8.8 -10.5 -10.5 4.5 0.2 12.2 7.9 1.1 1.1 29.9 18.8 44.0 25.6 25.1 18.6 9.7 3.9 249.6 18.4 109.6 1.8 139.9 35.7 111.8 10.7 76.7 -0.2 35.1 45.2 46.5 -17.0 37.6 -17.2 8.9 -16.1 408.1 10.9 223.9 -2.6 184.1 33.3 82.7 45.1 71.9 27.8 29.3 18.8 ended Dec. 31, (%) (%) 12.8 -5.2 32.3 -0.4 -8.1 17.7 -2.4 -5.2 9.2 7.3 -6.1 27.8 33.4 29.7 10.4 5.7 -5.2 17.5 -3.6 -8.1 6.8 -4.0 -5.2 1.2 1.9 -6.1 14.2 18.7 14.8 2.3 2001 (3Q) 11.7 1.8 22.1 7.9 -0.2 33.7 -17.9 -17.2 -20.9 6.2 -2.6 20.8 28.3 16.8 12.3 253.2 110.3 142.9 104.2 67.2 36.9 43.8 34.1 9.6 401.3 211.7 189.5 82.5 77.8 29.1 (*)...Excluding foreign exchange impact Reference: Exchange rate (average rate for each three month) Three months ended June 30, 2001 (1Q) US$1................................. ¥ 122.60 EURO 1............................ ¥ 107.25 Three months ended September 30, 2001 (2Q) ¥ 121.72 ¥ 108.32 - 21 - Three months ended December 31, 2001 (3Q) ¥ 123.70 ¥ 110.74 Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 3. Quarterly Sales by Product Category (Consolidated) Three months Change Change(*)Three months Change Change(*) ended June 30, ended Sept. 30, (%) (%) 2001 (1Q) Imaging Solutions: Digital Imaging Systems ........................ Domestic .......................................... Overseas .......................................... Other Imaging Systems................................ Domestic .......................................... Overseas .......................................... Total Imaging Solutions............................... Domestic .......................................... Overseas .......................................... Networking input/output systems: Printing Systems ................................... Domestic .......................................... Overseas .......................................... Other Input/Output Systems ...................... Domestic .......................................... Overseas .......................................... Total Networking input/output systems .... Domestic .......................................... Overseas .......................................... Network system solutions .......................... Domestic .......................................... Overseas .......................................... <Office Equipment Total>.......................... Domestic .......................................... Overseas .......................................... < Other Businesses > .................................. Domestic .......................................... Overseas .......................................... Grand Total .......................................... Domestic .......................................... Overseas .......................................... The Americas ............................... Europe......................................... Other............................................ (billions of yen) Three months Change Change(*) (%) (%) 2001 (2Q) ended Dec. 31, (%) (%) 2001 (3Q) 155.1 81.2 73.9 76.4 27.9 48.5 231.6 109.1 122.4 10.3 5.6 0.2 0.2 24.0 12.9 1.0 -4.6 -16.4 -16.4 14.6 4.7 7.0 2.0 -4.6 -4.6 20.1 9.5 156.7 16.6 71.2 -10.3 85.5 55.5 69.8 -2.2 23.6 -17.2 46.2 7.8 226.6 10.1 94.9 -12.1 131.7 34.6 10.2 -10.3 39.8 -8.5 -17.2 -2.7 3.7 -12.1 21.2 161.9 14.0 6.7 69.6 -3.1 -3.1 92.3 31.5 16.7 67.2 -1.5 -8.4 24.4 -28.0 -28.0 42.8 24.7 10.9 229.2 9.0 1.8 94.0 -11.0 -11.0 135.1 29.3 14.8 77.4 31.4 45.9 10.1 3.9 6.1 87.6 35.4 52.1 48.7 48.3 0.4 368.0 193.0 175.0 43.9 35.7 8.1 411.9 228.7 183.2 79.8 76.1 27.1 64.6 55.6 43.2 43.2 83.2 66.4 17.8 15.2 15.9 15.9 19.0 14.8 57.3 49.3 39.5 39.5 72.2 57.6 3.0 3.0 4.4 4.4 -60.3 -60.8 15.2 10.4 3.6 3.6 31.4 19.9 -8.1 -8.8 -10.5 -10.5 4.5 0.2 12.2 7.9 1.1 1.1 29.9 18.8 44.0 25.6 25.1 18.6 9.7 3.9 70.9 34.4 36.5 9.7 3.3 6.3 80.6 37.8 42.8 54.1 53.6 0.5 361.5 186.3 175.1 46.5 37.6 8.9 408.1 223.9 184.1 82.7 71.9 29.3 58.1 72.3 45.6 -6.9 -25.8 8.4 45.5 54.0 38.2 1.9 3.1 -54.8 10.5 1.0 24.3 -17.9 -17.2 -20.9 6.2 -2.6 20.8 28.3 16.8 12.3 70.5 24.0 17.0 35.2 17.1 17.1 35.3 31.7 16.9 12.6 -3.5 -5.7 3.9 -31.1 -31.1 8.6 17.9 13.9 83.2 18.8 12.8 39.2 9.4 9.4 44.0 28.7 16.3 45.0 -7.6 -7.7 44.3 -7.7 -7.7 0.7 0.3 -6.7 357.5 8.6 2.7 177.6 -6.3 -6.3 179.8 29.0 15.1 43.8 -2.4 -4.0 34.1 -5.2 -5.2 9.6 9.2 1.2 401.3 7.3 1.9 211.7 -6.1 -6.1 189.5 27.8 14.2 82.5 33.4 18.7 77.8 29.7 14.8 29.1 10.4 2.3 66.2 72.3 60.8 -5.0 -25.8 11.9 52.4 54.0 51.1 1.9 3.1 -51.9 15.9 1.0 37.5 -17.0 -17.2 -16.1 10.9 -2.6 33.3 45.1 27.8 18.8 (*)...Excluding foreign exchange impact 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 each three month) Three months ended June 30, 2001 (1Q) US$1................................. ¥ 122.60 EURO 1............................ ¥ 107.25 Three months ended September 30, 2001 (2Q) ¥ 121.72 ¥ 108.32 - 22 - Three months ended December 31, 2001 (3Q) ¥ 123.70 ¥ 110.74 Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 4. Forecast of Consolidated Performance (billions of yen) Year ended Nine months Change Three months Change Year ended Change March 31, 2001 ended (%) ended (%) Mar. 31, 2002 (%) Dec. 31, ’01 Net sales ..................................................... Gross profit ................................................ Operating income ........................................ Income before income taxes ........................ Net income .................................................. Net income per share (yen) ......................... Capital expenditure ..................................... Depreciation for tangible fixed assets ......... R&D expenditure ........................................ Interest income (expenses) net ................... Exchange rate (Yen/US$) ............................. Exchange rate (Yen/EURO) ......................... 1,538.2 613.3 105.1 97.7 53.2 76.85 73.3 62.1 78.2 0.2 110.60 100.41 Mar. 31, ’02(forecast) 1,221.4 515.5 89.6 78.3 43.2 62.38 56.6 53.3 58.6 -2.5 122.67 108.77 10.1 16.2 16.4 13.5 13.1 - 448.5 174.4 36.3 34.6 18.2 25.67 23.4 19.2 21.4 -0.4 128.00 113.00 (forecast) 4.6 2.8 29.3 20.7 21.8 - 1,670.0 690.0 126.0 113.0 61.5 88.05 80.0 72.5 80.0 -3.0 124.00 109.83 5. Forecast of Consolidated Sales by Product Line Nine months Ended Copiers and Related Supplies............ Domestic ..................................... Overseas ...................................... Communications and Information Systems Domestic ..................................... Overseas ...................................... Other Businesses ............................... Domestic ..................................... Overseas ...................................... Total .................................................. Domestic ..................................... Overseas ...................................... The Americas .............................. Europe......................................... Other ........................................... 763.9 340.7 423.2 323.1 216.3 106.8 134.3 107.4 26.8 1,221.4 664.5 556.9 245.2 225.9 85.6 (billions of yen) Three months ended March 31, 2002 Forecast Change Dec. 31, 2001 Forecast (*) (%) 279.5 122.2 157.2 120.3 79.6 40.6 48.6 38.5 10.1 448.5 240.4 208.0 93.2 79.5 35.3 8.6 12.5 19.9 15.6 15.5 - Change Year ended March 31, 2002 Forecast Change Forecast (*) Change (%) 8.5 -2.1 18.4 0.2 -4.4 10.5 -4.8 -4.7 -5.0 4.6 -3.3 15.4 19.1 13.2 11.1 269.9 4.7 122.2 -2.1 147.6 11.2 118.1 -1.7 79.6 -4.4 38.4 4.4 48.1 -5.8 38.5 -4.7 9.6 -10.0 436.2 1.7 240.4 -3.3 195.7 8.5 85.1 8.8 77.5 10.5 32.9 3.7 (%) 1,043.5 463.0 580.5 443.5 296.0 147.5 183.0 146.0 37.0 1,670.0 905.0 765.0 338.5 305.5 121.0 14.0 991.1 -1.1 463.0 29.8 528.1 4.8 432.5 -1.6 296.0 20.5 136.5 -8.4 180.9 -9.8 146.0 -2.9 34.9 8.6 1,604.5 -2.7 905.0 25.9 699.5 34.0 301.5 23.5 284.5 12.4 113.5 8.3 -1.1 18.0 2.2 -1.6 11.6 -9.5 -9.8 -8.4 4.3 -2.7 15.1 19.3 15.0 5.4 *…Excluding foreign exchange impact Reference: Exchange rate (average rate for each three month) (Year ended) (March 31, 2001) US$1......... EURO 1.... ¥ 110.60 ¥ 100.41 Three months ended June 30, 2001 (1Q) ¥ 122.60 ¥ 107.25 Three months ended September 30, 2001 (2Q) ¥ 121.72 ¥ 108.32 - 23 - Three months ended December 31, 2001 (3Q) ¥ 123.70 ¥ 110.74 Three months ended March 31, 2002 (4Q) (Year ended) (March 31, 2002) ¥ 128.00 ¥ 113.00 ¥ 124.00 ¥ 109.83 Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001 6. Forecast of Consolidated Sales by Product Category Nine months Ended Three months ended March 31, 2002 Forecast Change Dec. 31, 2001 Imaging Solutions: Digital Imaging Systems ........................ Domestic .......................................... Overseas .......................................... Other Imaging Systems................................ Domestic .......................................... Overseas .......................................... Total Imaging Solutions............................... Domestic .......................................... Overseas .......................................... Networking input/output systems: Printing Systems ................................... Domestic .......................................... Overseas .......................................... Other Input/Output Systems ...................... Domestic .......................................... Overseas .......................................... Total Networking input/output systems .... Domestic .......................................... Overseas .......................................... Network system solutions .......................... Domestic .......................................... Overseas .......................................... <Office Equipment Total>.......................... Domestic .......................................... Overseas .......................................... < Other Businesses > .................................. Domestic .......................................... Overseas .......................................... Grand Total .......................................... Domestic .......................................... Overseas .......................................... The Americas ............................... Europe......................................... Other............................................ (billions of yen) Forecast (*) (%) Change Year ended March 31, 2002 Forecast Change Forecast (*) Change (%) 473.9 222.1 251.7 213.6 76.0 137.6 687.5 298.1 389.3 173.0 10.2 79.8 -2.0 93.2 23.4 68.3 -11.7 17.9 -28.3 50.3 -3.7 241.4 3.0 97.8 -8.2 143.6 12.3 167.7 6.8 79.8 -2.0 87.8 16.3 65.3 -15.6 17.9 -28.3 47.3 -9.5 233.0 -0.6 97.8 -8.2 135.2 5.8 219.0 101.1 117.8 32.5 11.3 21.2 251.5 112.5 139.0 148.0 146.3 1.6 1,087.0 557.0 530.0 134.3 107.4 26.8 1,221.4 664.5 556.9 245.2 225.9 85.6 91.4 29.6 46.8 24.1 44.6 36.0 13.4 7.2 4.6 -16.6 8.7 26.2 104.9 26.2 51.4 18.8 53.4 34.3 53.4 -11.2 52.6 -9.7 0.8 -56.9 399.9 5.8 201.9 -3.0 197.9 16.7 48.6 -4.8 38.5 -4.7 10.1 -5.0 448.5 4.6 240.4 -3.3 208.0 15.4 93.2 19.1 79.5 13.2 35.3 11.1 88.6 46.8 41.8 12.8 4.6 8.2 101.5 51.4 50.0 53.4 52.6 0.8 388.0 201.9 186.1 48.1 38.5 9.6 436.2 240.4 195.7 85.1 77.5 32.9 25.6 24.1 27.3 2.5 -16.6 17.9 22.1 18.8 25.6 -11.3 -9.7 -57.5 2.7 -3.0 9.7 -5.8 -4.7 -10.0 1.7 -3.3 8.5 8.8 10.5 3.7 (%) 647.0 12.7 302.0 -3.8 345.0 32.5 282.0 -3.7 94.0 -22.3 188.0 9.4 929.0 7.1 396.0 -8.9 533.0 23.3 616.0 7.3 302.0 -3.8 314.0 20.6 265.5 -9.3 94.0 -22.3 171.5 -0.2 881.5 1.7 396.0 -8.9 485.5 12.3 310.5 42.9 296.0 36.2 148.0 34.8 148.0 34.8 162.5 51.2 148.0 37.7 46.0 3.3 44.7 0.4 16.0 -17.3 16.0 -17.3 30.0 19.1 28.7 13.9 356.5 36.2 340.7 30.1 164.0 27.0 164.0 27.0 192.5 45.1 176.7 33.2 201.5 -3.8 201.4 -3.9 199.0 -2.8 199.0 -2.8 2.5 -47.8 2.4 -49.9 1,487.0 11.1 1,423.6 6.4 759.0 -1.3 759.0 -1.3 728.0 27.8 664.6 16.7 183.0 -8.4 180.9 -9.5 146.0 -9.8 146.0 -9.8 37.0 -2.9 34.9 -8.4 1,670.0 8.6 1,604.5 4.3 905.0 -2.7 905.0 -2.7 765.0 25.9 699.5 15.1 338.5 34.0 301.5 19.3 305.5 23.5 284.5 15.0 121.0 12.4 113.5 5.4 *…Excluding foreign exchange impact 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 each three month) (Year ended) (March 31, 2001) US$1......... EURO 1.... ¥ 110.60 ¥ 100.41 Three months ended June 30, 2001 (1Q) ¥ 122.60 ¥ 107.25 Three months ended September 30, 2001 (2Q) ¥ 121.72 ¥ 108.32 - 24 - Three months ended December 31, 2001 (3Q) ¥ 123.70 ¥ 110.74 Three months ended March 31, 2002 (4Q) (Year ended) (March 31, 2002) ¥ 128.00 ¥ 113.00 ¥ 124.00 ¥ 109.83 Ricoh Co., Ltd. Quarterly Report 3rd Quarter ended December 31, 2001