FY2007 Highlights of Consolidated Statements Performance ■ Net Sales, operating income, net income, operating income ratio, net income ratio trend ¥2.0 trillion （sales） Net sales increased in all business segments, especially color MFPs and laser printers. Overall sales rose 8.4% from the previous fiscal year. This was the first time that group consolidated sales exceeded 2 trillion yen, and Ricoh achieved increased sales for the 13th year in a row. Thanks to, among other things, increased sales of high - value - added products and the fruits of on-going cost reduction activities, operating income rose 17.4% form the previous fiscal year, to ¥174.3 billion, and net income rose 15.1% to ¥111.7 billion, both the highest levels on record. ● Sales by area (billions of yen) 5.1 4.6 C Operating income (right scale) A Japan (left scale) ● ● D Net income (right scale) B Overseas (left scale) ● ● The Americas 426.4 (20.6％) 966.2 (billions of yen) 200 ● Sales by category (billions of yen) 100 Industrial Products 133.3 (6.4％) （％） 20 17.8 14.0 18.1 100 50 18.3 14.6 A Net Income per share (left scale) （Yen）● B Dividends declared per share (right scale) 150 ● 0 ANNUAL REPORT 2007 Consolidated dividend payout ratio 15 10 Imaging Solutions 1,580.1 (76.4％) 153.10 28.0 (increase in dividends) Network System Solutions 194.3 (9.4％) 132.33 2007 With profits reaching their highest level ever, the annual dividend declared was increased ¥4.0 from the previous fiscal year, to ¥28.0. The consolidated dividend payout ratio rose to 18.3%. FY2007 24.0 2006 0 ■ Net income per share (EPS) , dividends, consolidated dividend payout ratio trend 16.7％ Office Solutions 1,774.4 (85.8％) 112.64 2005 Other 161.0 (7.8％) 20.0 2004 150 50 A ● Ｄ C ● ● 2003 (FY) Other 133.0 (6.5％) 123.63 83.1 97.0 148.5 841.1 1,807.4 131.1 966.2 907.1 91.7 866.1 1,773.3 842.3 1,732.0 Operating income Net income FY2007 Europe 507.1 (24.5％) 18.0 0 B ● 72.5 500 129.7 1,000 889.6 1,500 145.4 (billions of yen) 943.0 1,909.2 Net sales 2,000 5.4 99.79 4.2 1,066.6 2,068.9 5.2 111.7 7.8 7.3 Net income ratio 174.3 7.5 1,002.2 8.2 Japan 1,002.2 (48.4％) 8.4 Overseas 1,066.6 (51.6％) Operating income ratio 14.0 （％） 8 7 6 5 4 20 10 A ● B ● 2003 (FY) （Yen） 30 2004 2005 2006 2007 0 To Our Shareholders and Customers Review of Operations （％） 12 Return on shareholders’equity (ROE) 12.6 11.2 A Total assets ● B Shareholders’ equity ● (billions of yen) 795.1 862.9 1,000 2004 2005 500 0 1,953.6 1,500 1,852.7 1,884.9 2,000 657.5 Total assets rose ¥202.2 billion from the previous fiscal year, reaching ¥2,243.4 billion, due to increased accounts receivable through business expansion, increased finance receivables, increased inventory, and so on. Although interest-bearing liabilities decreased thanks to strengthened cash management, business investment procurement exceeded this and the result was an increase of ¥34.3 billion from the previous period. Shareholders’ equity was ¥1,070.9 billion, an increase of ¥110.6 billion from the previous fiscal year. 7.6 6.9 Highlights 6 Return on assets 7.4 8.1 2006 2007 Business Strategy 6.4 2,243.4 11.0％ （ROE） 11.0 1,070.9 9 10.6 10.0 2,041.1 assets, return on shareholders’ equity (ROE) 960.2 ■ Total assets, shareholders’ equity, return on A ● B ● 2003 (End of March) A Operating cash flow (billions of yen) ● B Investing cash flow ● Corporate Governance ■ Operating cash flow, investment cash flow, free cash flow C Free cash flow ● 167.2 51.8 53.4 2006 2007 Net income, depreciation costs, and other internal reserves increased from the previous fiscal year, but business investment such as acquisition of shares in subsidiaries and increased assets accompanying expanded business resulted in a decrease of ¥1.5 billion in free cash flow, which is the total cash flow from operating activities and investment activities, for income of ¥51.8 billion. CSR Environmental Management 173.4 -96.0 2005 (free cash flow) Common stock price Brand Communications （Yen） 3,000 2004 -115.4 2003 (FY) -120.0 -100 B ● -63.4 -50 C ● A ● -97.9 0 33.0 50 ¥51.8 billion 87.6 84.7 100 129.1 151.0 150 182.7 200 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 2003 2004 2005 2006 2007 ANNUAL REPORT 2007 8