Ricoh Company, Ltd.

Sales

$17 billion

Ricoh - Corporation Profile
Ricoh is a leading manufacturer of office automation equipment. Ricoh's
products include copiers, printers, facsimile machines, optical drives and
discs, and related supplies and services. Ricoh is also a prominent manufacturer
of digital and advanced electronic devices. In recent years, Ricoh is rapidly
building a solid presence worldwide as a comprehensive document solutions
provider that helps its customers streamline their businesses and cut operating
costs. The company's website is www.ricoh.com.
 

OFFICE EQUIPMENT

This segment consists of products that are widely used in the office
environment, and is categorized as follows:

(1) Imaging Solutions

The primary function of products in this category is to produce copies or
duplications of images that are already in existence. This product category
consists of stand-alone equipment and related supplies and services. Products in
this category can be distinguished from products in the Network Input/Output
Systems category which can serve multiple functions with networking capabilities
(E.G., MFPs that can serve as printers and scanners).

This category is further separated into two sub-categories: (i) Digital
Imaging Solutions, which consist of all digital imaging solutions products, and
(ii) Other Imaging Solutions, which consist of other imaging solutions products
that are not included in Digital Imaging Solutions. The principal products in
each of these sub-categories are as follows:

Digital Imaging Solutions: Monochrome and color digital copiers, digital
duplicators and facsimile machines.

Other Imaging Solutions: Analog plain paper copiers ("PPCs"), diazo
copiers, and thermal paper.

In fiscal year 2004, the Imaging Solutions product category accounted for
45.1% of Ricoh's net sales. Ricoh has been a global leader in PPCs and a pioneer
in the development of digital machines. Ricoh manufactures a wide range of PPCs
and digital copiers with a variety of copying speeds and functions such as
double-sided printing, sorting, reducing and enlarging, and zoom adjustment of
copy sizes. PPCs use a drum or other medium coated with a photo conductive
material on which an image of the original document is projected optically and
developed by applying a dry powder form toner.

In recent years, Ricoh has strengthened its digital PPC product lineup with
new product offerings that range from standard digital PPC models to high-end
digital PPC models. More specifically, the imagio Neo 752 series is a high-speed
model designed for customers who require outputs of 75 copies per minute. This
series is equipped with "HYBRID QSU" technology that Ricoh developed originally
in the application of the next generation electric storage device "Capacitor",
and realized the most efficient energy saving in this class. On the other hand,
the Aficio 2105 (imagio Neo 1050 pro in Japan) is designed for customers who
have high-volume copying needs. The Aficio 2105 delivers up to 105 copies per
minute and has a durability of 1.5 times more than its predecessor for an even
better resolution. As such, the Aficio 2105 is performing well in the overseas
markets.

Ricoh also supplies a comprehensive line of wide-format copiers and
duplicators. These machines have also sold well for their digital capabilities.

With respect to facsimile equipment, Ricoh marketed the world's first
high-speed facsimile equipment in 1973 with a transmission speed of one minute
per page. Since then, Ricoh has been manufacturing various high-speed facsimile
machines, including compact, low-priced models that feature multiple functions
(such as copying capabilities) and higher memory capacities. The market for
facsimile machines continues to mature, with demand shifting to small and home
offices seeking low-cost models. Corporate users tend to prefer multifunctional,
networkable machines and printers. In addition, corporate users also are moving
towards electronic forms of transmitting images using portable document formats
that were not widely used or available in the past.

(2) Network Input/Output Systems

The primary function of products in this category is to print or produce
images using a network. This category includes products such as MFPs, laser
printers and optical disks. This category is further separated into two
sub-categories: (i) Printing Systems, which consist of all printer and related
products and (ii) Other Input/Output Systems, which consist of other products
that are not included in Printing Systems. The principal products in each of
these sub-categories are as follows:

Printing Systems: MFPs, laser printers, and related software.

Other Input/Output Systems: Optical discs and systems, and scanners.
 
In fiscal year 2004, the Network Input/Output Systems product category
accounted for 31.4% of Ricoh's net sales. Ricoh continues to strengthen its
capabilities in color laser printers and mid- and high-volume or high-speed
printers that can be connected to a network to meet its customer needs in the
office environment. In fiscal 2004, Ricoh had the strong sales growth in these
printer categories as it greatly broadened its product lineup in this category,
reinforced its sales structure and expanded its marketing activities. In terms
of MFPs, imagio Neo 352/452 and imagio Neo C385/C325, which were well received
in Japan, are equipped with enhanced communications functions such as "Scan to
e-mail" (the function which enables users to send scanned images directly to
users without a mail server), "W-net fax function" (the function which enables
users to fax through the internet and decrease communication costs), and the
same is true for Aficio 2035/2045 and Aficio 1224C/1232C in overseas markets.
Sales of laser printers are also on increasing, with the IPSiO NX85S and IPSiO
CX7200 performing favorably in the domestic market, and the AP400/400N and
Aficio CL3000 moving well overseas. These MFPs and laser printers are designed
to provide information technology support for all types of office environment by
delivering enhanced basic features (i.e., reduction, enlargements, etc.),
simpler operation, reduced paper consumption through electronic storage, and
better connectivity with document distribution and storage systems.

As the office environment becomes more computer-networked to maximize
efficiency, demand for digital black-and-white copiers and digital color copiers
has been rapidly increasing. Ricoh offers a full line of PC-connective models
that draw on our expertise in digital and color technologies to respond to
customer demand, which also continues to shift towards increased printing speed,
networking capabilities, decrease in the total costs of ownership, and
enhancements to raise office productivity. Overseas, Ricoh has rapidly forged a
solid position in digital copier sales by releasing many new models under the
Aficio brand.

In addition, Ricoh has placed significant focus on CD and DVD-related
technologies for storing multimedia data in recent years. Ricoh helped establish
the global standard for CD-RW drives and discs and is a major player in both of
these areas worldwide. For the fiscal year 2004, Ricoh produced the MP5308D
drive, which can handle DVD-ROM, DVD-R, DVD-RW, DVD+R and DVD+RW.

Ricoh also produced 8 times speed DVD+R media which is the fastest DVD recordable

media.

(3) Network System Solutions

The primary function of products in this category is to assist in
establishing a network environment. The principal products in this category
include personal computers and servers, network systems, application software,
and related services and support.

For fiscal year 2004, this product category accounted for 11.0% of Ricoh's
net sales. Although Ricoh has enjoyed steady growth in its document solutions
software and support services, which allow customers to seamlessly manage
electronic and paper-based information, in recent years Ricoh sales in personal
computers and servers have decreased due to constrained corporate spending on
information technology in Japan as a result of the uncertain economy condition.

OTHER BUSINESSES

This segment, which accounted for 12.5% of Ricoh's net sales in fiscal year
2004, includes electronic semiconductor devices, optical equipment, such as
digital cameras, and measuring equipment. In addition, Ricoh includes its
financing and logistics services in this segment.

Ricoh is one of the pioneers of commercializing digital cameras, which have
tremendous potential as "image capturing devices." Because of its potential as
an input tool, Ricoh expects that sales in digital cameras will continuously
grow. In addition, Ricoh offers a wide range of electronic devices used to
process images, such as mobile and cellular phones. Ricoh also makes application
specific integrated circuits (ASICs) and application specific standard products
(ASSPs) that are often used in digital copiers, printers, personal computers and
mobile phones.
 

Ticker

RICOY

Printers

Copiers