6-K 1 r6k0209.htm INTERIM REOPRT 20020930 Ricoh Interim Report 20020930



SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 6-K


REPORT OF FOREIGN PRIVATE ISSUER


Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934


For the month of October, 2002


RICOH COMPANY, LTD.

(Translation of Registrant’s name into English)


15-5, Minami-Aoyama 1-Chome, Minato-ku, Tokyo 107-8544, Japan

(Address of Principal Executive Offices)


(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)


      Form 20-F    X      Form 40-F    __


(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)


      Yes    __      No    X


(If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-__.)





SIGNATURE


Pursuant to the Requirements of the Securities Exchange Act of 1934,the registrant has duty caused this report to be signed on its behalf by the undersigned, thereunto duty authorized.



Ricoh Company, Ltd.


(Registrant)




By: /s/ Zenji Miura


Zenji Miura


Senior Vice President



October 31, 2002






INTERIM REPORT

Half year ended September 30, 2002

(Results for the Period from April 1, 2002 to September 30, 2002)



Index


Page

Ricoh Company, Ltd. and Consolidated Subsidiaries


-Policies

1

-Performance

3

-Ricoh Company, Ltd. and Consolidated Subsidiaries –Interim Report

11

-Group Position

12

-Consolidated Performance


  1. Statement of Income (Consolidated)

13

  2. Net Income Per Share (Consolidated)

14

  3. Sales by Product Category (Consolidated)

15

  4. Balance Sheets (Consolidated)

17

  5. Retained Earnings (Consolidated)

17

  6. Statements of Cash Flow (Consolidated)

18

  7. Segment Information

19

  8. Significant Accounting Policies (Consolidated)

23

  9. Notes to Consolidated Financial Statements

25

APPENDIX


  1. Quarterly Performance Outline (Consolidated)

27

  2. Quarterly Sales by Product Category (Consolidated)

28

  3. Forecast (Consolidated)

29

  4. 3rd Quarter Performance Forecast (Consolidated)

31

  5. Calculation Information Where the Equity Method


  Applied to Ricoh’s Leasing Subsidiary

31

Ricoh Company, Ltd.

* The Company bases the estimates above on information currently available to management, which involves risks and uncertainties that would cause actual results to differ materially from those projected.





Policies and Performance


1. Policies


(1) Basic Management

The Ricoh Group's vision is to be a winner in the 21st century. Under that banner, we aim to continue to provide high reliability and build new value so that we can help customers enhance their productivity and create knowledge whenever and wherever they work.

Our approach covers not only products and services for traditional office setups but also customers working at any time and place in a broadband environment.


Our three-year 14th medium-term management plan, which ends in March 2005, has five basic objectives:

i. Realize a "vital and motivated culture"

ii. Strengthen technologies to become the World No.1 product manufacturing company

iii. Build "Customer-Friendly" and "Environmentally-Friendly"company

iv. Strengthen each business unit and revolutionize group business structures

v. Strengthen management constitution for competitive advantage


(2) Medium-Term Management Strategies and Initiatives to Streamline Administration

We are meeting the challenges of digital networking in our core competence of office equipment. We have accordingly endeavored since our 13th medium-term management plan to network standalone equipment while overhauling our operational structure so we can provide solutions for our systems. These efforts led us to introduce digital machines and MFPs (multifunctional printers), bring out more color products, and step up our drive to provide customers with proposals. These endeavors have improved the contributions of network-connective equipment and solutions to net sales while improving our operating performances.


In the years ahead, demand should continue to rise for fast, color systems that are highly affordable. At the same time, customers will increasingly need offerings that lower the total cost of ownership, supported by solutions that enhance office productivity. Further advances in digital networking will greatly expand the amount of information, making it critical to for customers to better manage the total document volume from their copiers and printers.

Accordingly, our 14th medium-term management strategy focuses on building total document volume and thereby broadening our revenues and earnings base. Our basic strategy has three goals:

- Replacing monochrome products with color models to secure new markets

- Expanding sales of high-speed models to secure more major accounts

- Deploy printing solutions, such as suggesting ways for customers to optimize their equipment, supported by administrative tools to cut the total cost of ownership


Our main initiatives have been to build a full lineup of color MFPs and laser printers while extending our global presence through a direct sales, service, and support network. Our acquisition of Lanier Worldwide, Inc., in 2001 was part of that drive. We are particularly focused on broadening our reach among multinationals.


We are strengthening our technological clout so we can become the world’s best manufacturer, one that can supply highly competitive products and services. Our technological priorities include those to develop next-generation high-speed color imaging equipment, as well as technologies that allow customers to connect various office machines and operate them seamlessly with their preferred applications. Other technological endeavors encompass developing designs that simplify equipment and software and the creation of environmentally friendly products. To strengthen our technological base for such areas, earlier in fiscal 2003 we set up four research centers within our Research and Development Headquarters, including one specializing in photonics and another concentrating on environmental technologies. We also established four operations within the Software Research and Development Headquarters, including the Ubiquitous Solutions Research Center.


To strengthen the management of the entire Ricoh Group to make it a superior competitor, we have accelerated the construction of our supply chain management system. We are also continuing to push ahead with structural reforms to our processes, such as through our total reforms to development processes. In addition, we are striving to more efficiently use our assets and slash costs.


It is obviously a crucial priority for top management to prevent the sorts of scandals that occurred over the past year in Japan and abroad that have at the very least shaken community trust and have, in some cases, toppled major corporations.

The Ricoh Group is addressing these issues by strengthening management in several ways. For example, we are continuing to enhance corporate governance to serve the interests of shareholders and bolster competitiveness. At the same time, we are ensuring that we keep meeting our legal and social obligations by deploying a highly practical risk management system designed to prevent integrity problems from arising. This system’s coverage extends to a framework for daily operations.


1





As an information technology business, the Ricoh Group naturally continues to improve internal administration as part of efforts to tackle information security risks. We have extended our information protection initiatives to new product development. Fruits of these efforts so far in fiscal 2003 include the Imagio Neo 350/450 series of digitally networked multifunctional machines, for which we have won certification under ISO 15408, the international standard for information security.


(3) Challenges

The United States, which drives the global economy, continues to suffer slow growth, and the economic picture risks becoming more cloudy with downturns in the U.S. and Japanese stock markets. We believe that the business environment will become very tough during the current fiscal term, such as through intensified competition in color and digitally networked systems. To continue growing and progressing under this environment, we have to do more than simply eliminate unhappiness among our customers and meet their wishes.

That is why management considers it so critical to build new value that creates dramatically higher standards for customer satisfaction. We will thus focus even more on deploying our customer satisfaction-based management, through which we will identify and address new customer needs. At the same time, we will continue to make steady progress with the revenues and earnings structure reforms that we launched in fiscal 2002 for the Ricoh Group.


As a good corporate citizen, we believe that our mission is to not only meet our legal and social obligations but also to actively contribute to a better society. To that end, we remain true to Ricoh’s long-held goals of being friendly to people and the environment. On the people front, we aim to deliver appliance ease for our customers with the products and services that the Ricoh Group provides. We are pursuing “environmental management,” through which we balance environmental protection with the pursuit of profit.


(4) Dividend Policy

Ricoh endeavors to ensure stable dividends by improving profitability while increasing retained earnings to reinforce its corporate structure and cultivate new businesses. Ricoh uses those retained earnings to strengthen core businesses and invest in new fields from medium- and long-term perspectives.


(5) Thinking and Policies on Reducing Minimal Investment Lots

Ricoh believes that reducing the minimum number of shares required to invest in Ricoh could help attract a broader range of investors to the equity markets while enhancing the liquidity of its shares. However, many investors already trade in Ricoh's shares, so management has concluded that there is no immediate need to reduce the minimum investment lot.

Ricoh plans to keep close tabs on investment patterns and its shareholder composition, and will consider taking steps to alter the minimum lot requirement if need be.


2





2. Performance


(1) Overview

For the three months ended September 30, 2002 and 2001

(Billions of yen)


Three months ended

Three months ended

Change


September 30, 2002

September 30, 2001


    Domestic sales

224.7

223.9

0.3%

    Overseas sales

203.8

184.1

10.7%

Net sales

428.5

408.1

5.0%

Gross profit

174.1

167.8

3.7%

Operating income

25.4

28.2

-10.2%

Income before income taxes

23.4

25.3

-7.7%

Net income

14.0

13.5

3.5%

Net income per share-basic (yen)

19.26

19.50

-0.24

Net income per share-diluted (yen)

18.67

18.40

0.27

Return on equity (%)

2.1

2.3

-0.2%point

Income before income taxes on total assets (%)

1.3

1.5

-0.2%point

Income before income taxes on net sales (%)

5.5

6.2

-0.7%point

Exchange rate (Yen/US$)

119.19

121.72

-2.53

Exchange rate (Yen/EURO)

117.34

108.32

9.02

Expenditure for plant and equipment

20.8

21.8

-1.0

Depreciation for tangible fixed assets

16.9

17.9

-1.0

R&D Expenditure

21.7

22.0

-0.3





3





For the half years ended September 30, 2002, 2001 and year ended March 31, 2002.

(Billions of yen)


Half year ended

Half year ended

Change

Year ended


September 30, 2002

September 30, 2001


March 31, 2002

  Domestic sales

449.5

452.7

-0.7%

902.6

  Overseas sales

407.2

367.3

10.9%

769.6

Net sales

856.8

820.0

4.5%

1,672.3

Gross profit

360.6

341.8

5.5%

699.9

Operating income

61.3

59.9

2.4%

129.6

Income before income taxes

55.6

52.5

6.0%

113.9

Net income

33.5

28.4

18.0%

61.6

Net income per share-basic (yen)

46.11

40.97

5.14

88.27

Net income per share-diluted (yen)

44.68

38.24

6.44

82.46

Return on equity (%)

5.2

5.0

0.2%point

10.4

Income before income taxes on total assets (%)

3.0

3.1

-0.1%point

6.4

Income before income taxes on net sales (%)

6.5

6.4

0.1%point

6.8

Total assets

1,826.3

1,713.0

113.3

1,832.9

Shareholders’ equity

663.6

581.3

82.3

633.0

Interest-bearing debt

543.2

548.6

-5.3

561.4

Equity ratio (%)

36.3

33.9

2.4

34.5

Equity per share (yen)

912.98

837.85

75.13

870.63

Cash flows from operating activities

99.1

44.9

54.1

105.1

Cash flows from investing activities

-33.3

-49.8

16.4

-81.4

Cash flows from financing activities

-16.5

6.0

-22.6

36.2

Cash and cash equivalents at end of period

217.4

109.6

107.7

170.1

Exchange rate (Yen/US$)

123.08

122.16

0.92

125.10

Exchange rate (Yen/EURO)

116.95

107.79

9.16

110.60

Expenditure for plant and equipment

38.4

39.8

-1.3

75.6

Depreciation for tangible fixed assets

33.8

33.1

0.7

73.7

R&D Expenditure

40.2

39.9

0.2

80.7

Number of employees (Japan) (thousand people)

39.8

40.0

-0.2

40.0

Number of employees (Overseas) (thousand people)

34.8

34.4

0.4

34.2






4





*Overview


- In the first half of fiscal 2003, ended September 30, 2002, consolidated net sales advanced 4.5%, to ¥856.8 billion. The gain would have been 2.6% without the impact of foreign exchange.


- Domestic sales decreased 0.7%. This reflected the impact of poor local economic conditions on most operations. On the positive side, the Company did well with new offerings that met new customer needs while concentrating its marketing strategy on printing systems, for which sales climbed 24.5%. Overseas sales increased 10.9%. This stemmed from solid ongoing demand for mainline digital imaging and printing systems and favorable foreign exchange conditions. Without the exchange effect, overseas sales would have advanced 6.6%.


- Operating income was up 2.4%. This improvement was due mainly to increased revenues from new and existing high-value-added core offerings, such as digital PPCs (plain-paper copiers), MFPs (multifunctional printers), and color printers. Other important factors included continued cost-cutting and favorable exchange rates, which offset additional costs to cover losses at Ricoh Elemex Corporation to cover quality problems on some of that company’s metering equipment. Ricoh strove to reduce total other expenses by lowering interest expense, thereby offsetting decreases in interest and dividend income amid sluggish conditions in financial markets. Consequently, income before income taxes, minority interests and equity in earnings of affiliates improved 6.0%.


- These factors translated into an 18.0% rise in net income.


- Management increased interim cash dividends ¥1 per share from the previous corresponding period, to ¥7, with payments to begin on December 2.



*Financial Position


- The Ricoh Group focuses on ongoing efforts to expand free cash flow and reinforce its financial position.


- At the close of the first half of fiscal 2003, net cash provided by operating activities was ¥99.1 billion, up ¥54.1 billion from the previous corresponding term. This rise owed principally to higher net income, increased depreciation and amortization and trade receivables collection, and lower inventories.


- Net cash used in investing activities was ¥33.3 billion, stemming from spending to upgrade production lines for new models and reinforce product development.


- As a result of the above factors, free cash flow totaled ¥65.7 billion.


- During the term, Ricoh endeavored to replace short-term loans with long-term indebtedness while reducing interest-bearing debt. Net cash used in financing activities, including cash dividends paid, was ¥16.5 billion.


- Cash and cash equivalents at the end of the term were thus ¥47.2 billion higher than at the close of the previous year-end, at ¥217.4 billion.


- Since the start of fiscal 2003, Ricoh has included short-term investment securities, which are always available-for-sale, such as MMF (Money Management Funds), in cash equivalents. The effects of this change were as follows:





(Millions of yen)


Half year ended

Half year ended

Year ended

Cash and cash equivalents at term-end

September 30, 2002

September 30, 2001

March 31, 2002





Under previous accounting policy

135,136

60,452

142,508

Under new accounting policy

217,418

109,679

170,172

Change

82,282

49,227

27,664


[Graph]

The graphs are omitted, which show consolidated performance for the half year ended September 30, 2000, 2001, and 2002, and for the half year ended March 31, 2001 and 2002.


5





*Consolidated Sales by Category


Imaging Solutions (sales down 6.1%, to ¥430.3 billion)

*Digital Imaging Solutions (sales down 0.8%, to ¥309.3 billion)

In core digital PPCs, the Company reinforced everything in its lineup from low-end models to high-speed machines. Despite expanded sales of the Imagio Neo C240/C320 series and other new models, overall domestic sales declined amid sluggish demand. Overseas, however, sales of digital PPCs were buoyant, particularly for high-speed models.


*Other Imaging Solutions (sales down 17.3%, to ¥120.9 billion)

Lower sales reflected the ongoing trend away from analog PPCs to digital models and MFPs.


Network Input/Output Systems (sales up 30.1%, to ¥218.9 billion)

*Printing Systems (sales up 27.6%, to ¥189.4 billion)

In Japan and abroad, Ricoh continued to introduce new products, strengthening sales of printing equipment and printing solutions in response to customer demand for fast, networkable, and color systems. The Company greatly increased sales of MFPs and color printers during the term.


*Other Input/Output Systems (sales up 48.4%, to ¥29.5 billion)

This business benefited from strong shipments in Japan and internationally of DVD drives and media based on new standards.


Network System Solutions (sales down 2.8%, to ¥100.0 billion)

Ricoh continued to strengthen its useware, document management, and other solutions businesses in response to shifting customer demand away from standalone machines toward networked hardware, software, and services. The sales decline stemmed from reduced purchases of personal computers and servers owing to corporate constraints on information technology spending.


Other Businesses (sales up 18.7%, to ¥107.4 billion)

The higher sales in this category reflected recoveries in the semiconductor business and steady growth in leasing and other operations, which offset slower sales in the metering equipment business.


[Graph]

The graph is omitted, which shows consolidated sales by category for the half year ended September 30, 2001 and 2002.


6





* Consolidated Sales by Geographic Area


Japan (sales down 0.7%, to ¥449.5 billion)

The domestic economy remained stagnant throughout the term. Nonetheless, Ricoh introduced more products and strengthened marketing to maintain solid sales of MFPs, printers, and other printing solutions, and improved such solution businesses as useware. In contrast, the trend toward digital and color equipment dampened sales of analog PPCs and fax machines, while the adverse economic conditions lowered sales in other areas, such as personal computers and servers.


The Americas (sales up 4.8%, to ¥170.4 billion)

Ricoh further improved its sales network, particularly in North America, while endeavoring to raise sales of core digital PPCs, MFPs, and printers. These efforts helped the Company overcome increasingly uncertain economic conditions in the United States.


Europe (sales up 12.2%, to ¥166.1 billion)

With regional economies remaining stable, Ricoh continued to do well with core digital PPCs and MFPs, maintaining top market shares in PPCs. Printer sales were also up.


Others (sales up 24.9%, to ¥70.6 billion)

Sales in China, the rest of Asia, and other regions grew on the strength of the trend toward digitally networked offices that favor color systems.


[Graph]

The graph is omitted, which shows consolidated sales by geographic area for the half year ended September 30, 2001 and 2002.


7





*Segment Information


Business Segment





Office Equipment

Ricoh continued to deliver solid sales of core, high-value-added digital PPCs, MFPs, and color printers, with demand soaring overseas. Both sales and operating income increased, partly because of the foreign exchange impact.


Other Businesses

These businesses benefited from recoveries in demand for semiconductors and strong growth in leasing operations. Operating income declined, however, reflecting expenditure to cover defects on some metering equipment.





[Graph]

The graphs are omitted, which show business segment information for the half year ended September 30, 2001 and 2002.









Assets, Capital Expenditure, and Depreciation

(Billions of yen)


Half year ended

Half year ended

Change


September 30, 2002

September 30, 2001


Identifiable assets:




    Office Equipment

1,168.9

1,174.0

-5.0

    Other Businesses

184.7

172.1

12.6

Capital expenditure:




    Office Equipment

35.2

36.3

-1.0

    Other Businesses

2.6

2.5

0.1

Depreciation and Amortization:




    Office Equipment

29.7

29.2

0.4

    Other Businesses

3.1

2.9

0.1


8





Geographic Segment


Japan

In the office equipment business, overall sales were up owing to favorable exports, which offset a decline in domestic sales in this category. Operating income fell, however, reflecting expanded overseas production in keeping with a policy of optimally locating manufacturing operations closer to customer markets, a decline in domestic sales, and the impact of expenditure to address quality problems in the metering equipment business.


The Americas

With the U.S. economic situation unclear and competition intensifying, Ricoh expanded sales of digital systems and strategically reinforced major account sales. These efforts increased overall regional sales and operating income.


Europe

The Company continued to do well, particularly in digital PPCs, MFPs and printers, while maintaining high productivity rates at local plants, leading to a rise in regional sales and operating income.


Others

Sales were again solid in China and elsewhere in Asia and in Oceania, while increased production in China helped increase regional sales and operating income.


[Graph]

The graphs are omitted, which show geographic segment information for the half year ended September 30, 2001 and 2002.


9





(2) Expectations






* Economic projections and Ricoh Group’s initiatives for fiscal 2003

With the domestic economy remaining lackluster and economic conditions in the United States increasingly uncertain, Ricoh expects the operating environment to remain tough.

Under these circumstances, the Group will continue to push ahead with the following initiatives in its five operating regions of Japan, the Americas, Europe, Asia and Oceania, and China, striving to expand revenues, earnings, and cash flow.

• Further globalize operations to increase major account sales

• Reinforce lineup of color PPCs, MFPs, and laser printers to meet growing demand for color among office users

• Provide optimal printing solutions for customers’ digitally networked offices and reinforce printing capabilities centered on MFPs

• Optimally locate Group manufacturing operations closer to customer markets

• Restructure to increase sales and profits and build cash flow
















Exchange Rate Assumptions for the 2nd Half Year

US$1 = ¥120.00 (¥123.08 in 1st half year 2002)

Euro1 = ¥115.00 (¥116.95 in 1st half year 2002)






Exchange Rate Assumptions for the full year ended March 31, 2003

US$1 = ¥121.54 (¥125.10 in previous fiscal year)

Euro1 = ¥115.98 (¥110.60 in previous fiscal year)









(Billions of yen)



Year ended

Year ended

Change



March 31, 2003

March 31, 2002




(Forecast)




  Domestic sales

909.0

902.6

0.7%


  Overseas sales

841.0

769.6

9.3%


Net sales

1,750.0

1,672.3

4.6%

(*1)

Gross profit

738.5

699.9

5.5%


Operating income

134.0

129.6

3.3%


Income before income taxes

121.5

113.9

6.6%


Net income

71.0

61.6

15.2%

(*2)

Notes:





*1…Net sales would be ninth consecutive year of growth.

*2…Net income would be eleventh consecutive year of growth and ninth consecutive year of record high.











* Ricoh bases the estimates above on information currently available to management, which involves risks and uncertainties that would cause actual results to differ materially from those projected.






10





Ricoh Company, Ltd. and Consolidated Subsidiaries

INTERIM REPORT (Consolidated. Half year ended September 30, 2002)





*Date of approval for the financial results for the half year ended September 30, 2002, at the Board of Directors' meeting: October 31, 2002





1. Results for the Period from April 1, 2002 to September 30, 2002

(1) Operating Results

(Millions of yen)


Half year ended

Half year ended

Year ended


September 30, 2002

September 30, 2001

March 31, 2002

Net sales

856,821

820,087

1,672,340

    (% change from the previous corresponding period)

4.5

11.5

8.7

Operating income

61,328

59,904

129,695

    (% change from the previous corresponding period)

2.4

17.1

23.4

Income before income taxes

55,673

52,524

113,950

    (% change from the previous corresponding period)

6.0

13.8

16.6

Net income

33,525

28,408

61,614

    (% change from the previous corresponding period)

18.0

10.1

15.8

Net income per share (yen)

46.11

40.97

88.27

Fully diluted net income per share (yen)

44.68

38.24

82.46

Notes:




i. Equity in income of affiliates: ¥1,608 million; ¥1,016 million (half year ended September 30, 2001); ¥1,891 million (year ended March 31, 2002)

ii. Average number of shares outstanding (consolidated): 727,020,387 shares; 693,402,051 shares (half year ended September 30, 2001); 698,025,167 shares (year ended March 31, 2002)

iii. Some changes have been made in accounting method

iv. 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)


September 30, 2002

September 30, 2001

March 31, 2002

Total assets

1,826,385

1,713,042

1,832,928

Shareholders' equity

663,665

581,364

633,020

Equity ratio (%)

36.3

33.9

34.5

Equity per share (yen)

912.98

837.85

870.63

Note: Number of shares outstanding as of September 30, 2002: 726,919,110 shares; 693,874,541 shares (September 30, 2001); 727,086,738 shares (March 31, 2002)





(3) Cash Flow

(Millions of yen)


Half year ended

Half year ended

Year ended


September 30, 2002

September 30, 2001

March 31, 2002

Cash flows from operating activities

99,119

44,998

105,138

Cash flows from investing activities

-33,395

-49,877

-81,421

Cash flows from financing activities

-16,562

6,046

36,235

Cash and cash equivalents at end of period

217,418

109,679

170,172





(4) Items relating to the scale of consolidation and the application of the equity method:

Number of consolidated subsidiaries: 329; nonconsolidated subsidiaries: 40; affiliated companies: 26

(5) Changes in accounting method, etc.:

Consolidated subsidiaries: 5 additions; 7 removals

Companies accounted for by the equity method: 1 addition; 8 removals





Notes: 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.

Net income per share is calculated based on Statement of Financial Accounting Standards(SFAS) No.128.





2. Forecast of operating results from April 1, 2002 to March 31, 2003 (Consolidated)

(Millions of yen)

Net sales


1,750,000


Operating income


134,000


Income before income taxes


121,500


Net income


71,000


Note: Net income per share (Consolidated) 97.67 yen





In accordance with Japanese regulations, Ricoh has issued forecast for its financial results for the fiscal year ending March 2003. 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.


11





Group Position


The Ricoh Group comprises 369 subsidiaries and 26 affiliates.

Their development, manufacturing, sales, and service activities center on office equipment (copiers and related supplies and communications and information systems), optical equipment, and other devices.

The parent company heads development. The parent company and subsidiaries and affiliates maintain an integrated domestic and international manufacturing structure. Below, we have listed our main product areas and the positions of key subsidiaries and affiliates.


<Office Equipment>

In this business category, Ricoh provides products and systems that help enhance the office productivity of customers. Major products include:

Digital/analog copiers, MFPs (multifunctional printers), laser printers, facsimile machines, digital duplicators, optical disks. Ricoh also provides solution systems including personal computers and servers, utilizing its information technology. Ricoh also provides support, service, and related supplies, as well as use ware including IT environment setup, network administration, and user support.


[Main Subsidiaries and Affiliates]

Production

    Japan...Tohoku Ricoh Co., Ltd., Ricoh Elemex Corporation, Ricoh Unitechno Co., Ltd., Hasama Ricoh Inc.,

            Ricoh Microelectronics Co., Ltd., Ricoh Keiki Co., Ltd.

    The Americas...Ricoh Electronics, Inc.

    Europe...Ricoh UK Products Ltd. and Ricoh Industrie France S.A.

    Other regions...Ricoh Asia Industry (Shenzhen) Ltd., Sindo Ricoh Co., Ltd., Shanghai Ricoh Facsimile Co., Ltd.


Sales and Service

    Japan ...Ricoh Tohoku Co., Ltd., Ricoh Chubu Co., Ltd., Ricoh Kansai Co., Ltd., Ricoh Chugoku Co., Ltd.,

              Ricoh Kyushu Co., Ltd., Tokyo Ricoh Co., Ltd., Osaka Ricoh Co., Ltd. and 43 other sales companies nationwide,

              Ricoh Technosystems Co., Ltd., NBS Ricoh Co., Ltd., Ricoh Leasing Co., Ltd., Ricoh Logistics System Co., Ltd.       

    The Americas...Ricoh Corporation, Savin Corporation, Lanier Worldwide, Inc.

    Europe...Ricoh Europe B.V., Ricoh Deutschland GmbH, Ricoh UK Ltd., Ricoh France S.A.,

             Ricoh Espana S.A., Ricoh Italia S.p.A., NRG Group PLC

    Other regions...Ricoh Hong Kong Ltd., Ricoh Asia Pacific Pte, Ltd.,

             Ricoh Australia Pty, Ltd., Ricoh New Zealand Ltd.


<Other Businesses>

Manufacturing and marketing analog cameras and optical lenses, semiconductor devices and measuring equipment, and providing leasing and logistics services


[Main Subsidiaries and Affiliates]

Production

    Japan...Ricoh Optical Industries Co., Ltd., Ricoh Elemex Corporation

    Overseas...Taiwan Ricoh Co., Ltd.


Sales

    Ricoh Corporation, NRG Group PLC


Other

    Ricoh Leasing Co., Ltd., Ricoh Logistics System Co., Ltd., Coca-Cola West Japan Co., Ltd. (affiliated company)



<Business System Chart>

The following chart can show this group position.


[Chart]

The chart of group position is omitted.


12





1. Statement of Income (Consolidated)


For the three months ended September 30, 2002 and 2001.

(Millions of yen)



Three months ended September 30, 2002

Three months ended September 30, 2001

Change

%


Net sales

428,550

408,124

20,426

5.0


Cost of sales

254,402

240,245

14,157

5.9


    Percentage of net sales (%)

59.4

58.9




Gross Profit

174,148

167,879

6,269

3.7


    Percentage of net sales (%)

40.6

41.1




Selling, general and administrative expenses

148,747

139,587

9,160

6.6


    Percentage of net sales (%)

34.7

34.2




Operating income

25,401

28,292

-2,891

-10.2


    Percentage of net sales (%)

5.9

6.9




Other (income) expense






  Interest and dividend income

1,072

1,758

-686

-39.0


    Percentage of net sales (%)

0.3

0.4




  Interest expense

2,291

2,147

144

6.7


    Percentage of net sales (%)

0.5

0.5




  Other, net

779

2,560

-1,781

-69.6


    Percentage of net sales (%)

0.2

0.6




Income before income taxes,






equity income and minority interests

23,403

25,343

-1,940

-7.7


    Percentage of net sales (%)

5.5

6.2




Provision for income taxes

11,019

11,410

-391

-3.4


    Percentage of net sales (%)

2.6

2.8




Minority interests in earnings of subsidiaries

-843

1,038

-1,881

-


    Percentage of net sales (%)

-0.2

0.3




Equity in earnings of affiliates

777

634

143

22.6


    Percentage of net sales (%)

0.2

0.2




Net income

14,004

13,529

475

3.5


    Percentage of net sales (%)

3.3

3.3










Reference:

Three months ended

Three months ended




Exchange rate

September 30, ’02

September 30, ’ 01




US$ 1

¥119.19

¥121.72




EURO 1

¥117.34

¥108.32










For the half years ended September 30, 2002, 2001 and year ended March 31, 2002.

(Millions of yen)


Half year ended September 30, 2002

Half year ended September 30, 2001

Change

%

Year ended March 31, 2002

Net sales

856,821

820,087

36,734

4.5

1,672,340

Cost of sales

496,176

478,191

17,985

3.8

972,394

    Percentage of net sales (%)

57.9

58.3



58.1

Gross Profit

360,645

341,896

18,749

5.5

699,946

    Percentage of net sales (%)

42.1

41.7



41.9

Selling, general and administrative expenses

299,317

281,992

17,325

6.1

570,251

    Percentage of net sales (%)

34.9

34.4



34.1

Operating income

61,328

59,904

1,424

2.4

129,695

    Percentage of net sales (%)

7.2

7.3



7.8

Other (income) expense






  Interest and dividend income

2,035

2,896

-861

-29.7

4,753

    Percentage of net sales (%)

0.2

0.4



0.3

  Interest expense

4,030

4,562

-532

-11.7

8,233

    Percentage of net sales (%)

0.5

0.6



0.5

  Other, net

3,660

5,714

-2,054

-35.9

12,265

    Percentage of net sales (%)

0.4

0.7



0.8

Income before income taxes,






  equity income and minority interests

55,673

52,524

3,149

6.0

113,950

    Percentage of net sales (%)

6.5

6.4



6.8

Provision for income taxes

24,020

23,519

501

2.1

51,147

    Percentage of net sales (%)

2.8

2.8



3.0

Minority interests in earnings of subsidiaries

-264

1,613

-1,877

-

3,080

    Percentage of net sales (%)

0.0

0.2



0.2

Equity in earnings of affiliates

1,608

1,016

592

58.3

1,891

    Percentage of net sales (%)

0.2

0.1



0.1

Net income

33,525

28,408

5,117

18.0

61,614

    Percentage of net sales (%)

3.9

3.5



3.7







Reference:

Half year ended

Half Year ended

Year ended



Exchange rate

September 30, ’02

September 30, ’ 01

March 31, ’02



US$ 1

123.08

122.16

125.10



EURO 1

116.95

107.79

110.60









13





2. Net Income Per Share (Consolidated)

For the half years ended September 30, 2002 and 2001, and year ended March 31, 2002.

(Yen)


Half year ended September 30, 2002

Half year ended September 30, 2001

Change

Year ended March 31, 2002

Net income per share-basic

46.11

40.97

5.14

88.27

Net income per share- diluted

44.68

38.24

6.44

82.46






14





3. Sales by Product Category (Consolidated)

For the three months ended September 30, 2002 and 2001.

(Millions of yen)


Three months ended September 30, ’02

Three months ended September 30, ’01

Change

%

Change excluding exchange rate effect

%

<Office Equipment>







Imaging Solutions:







  Digital Imaging Systems

153,096

156,787

-3,691

-2.4

-5,566

-3.6

    Percentage of net sales (%)

35.7

38.4





   Domestic

64,916

71,278

-6,362

-8.9

-6,362

-8.9

   Overseas

88,180

85,509

2,671

3.1

796

0.9

  Other Imaging Systems

57,345

69,870

-12,525

-17.9

-13,527

-19.4

    Percentage of net sales (%)

13.4

17.1





   Domestic

18,555

23,649

-5,094

-21.5

-5,094

-21.5

   Overseas

38,790

46,221

-7,431

-16.1

-8,433

-18.2

Total Imaging Solutions

210,441

226,657

-16,216

-7.2

-19,093

-8.4

    Percentage of net sales (%)

49.1

55.5





  Domestic

83,471

94,927

-11,456

-12.1

-11,456

-12.1

  Overseas

126,970

131,730

-4,760

-3.6

-7,637

-5.8

Networking input/output systems:







  Printing Systems

94,755

70,955

23,800

33.5

22,255

31.4

    Percentage of net sales (%)

22.1

17.4





   Domestic

41,908

34,417

7,491

21.8

7,491

21.8

   Overseas

52,847

36,538

16,309

44.6

14,764

40.4

Other Input/Output Systems

13,672

9,729

3,943

40.5

3,786

38.9

    Percentage of net sales (%)

3.2

2.4





   Domestic

2,495

3,399

-904

-26.6

-904

-26.6

   Overseas

11,177

6,330

4,847

76.6

4,690

74.1

Total Networking input/output systems

108,427

80,684

27,743

34.4

26,041

32.3

    Percentage of net sales (%)

25.3

19.8





  Domestic

44,403

37,816

6,587

17.4

6,587

17.4

  Overseas

64,024

42,868

21,156

49.4

19,454

45.4

Network system solutions

53,122

54,184

-1,062

-2.0

-1,087

-2.0

    Percentage of net sales (%)

12.4

13.3





  Domestic

52,469

53,639

-1,170

-2.2

-1,170

-2.2

  Overseas

653

545

108

19.8

83

15.2

Office Equipment Total

371,990

361,525

10,465

2.9

5,861

1.6

    Percentage of net sales (%)

86.8

88.6





  Domestic

180,343

186,382

-6,039

-3.2

-6,039

-3.2

  Overseas

191,647

175,143

16,504

9.4

11,900

6.8

< Other Businesses >







Other Businesses

56,560

46,599

9,961

21.4

9,639

20.7

    Percentage of net sales (%)

13.2

11.4





  Domestic

44,388

37,602

6,786

18.0

6,786

18.0

  Overseas

12,172

8,997

3,175

35.3

2,853

31.7

Grand Total

428,550

408,124

20,426

5.0

15,500

3.8

    Percentage of net sales (%)

100.0

100.0





  Domestic

224,731

223,984

747

0.3

747

0.3

    Percentage of net sales (%)

52.4

54.9





  Overseas

203,819

184,140

19,679

10.7

14,753

8.0

    Percentage of net sales (%)

47.6

45.1





      The Americas

86,262

82,776

3,486

4.2

5,107

6.2

        Percentage of net sales (%)

20.1

20.3





      Europe

82,909

71,966

10,943

15.2

4,916

6.8

        Percentage of net sales (%)

19.4

17.6





      Other

34,648

29,398

5,250

17.9

4,730

16.1

        Percentage of net sales (%)

8.1

7.2





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

MFPs(multifunctional printers), laser printers, related supplies, services and software

Other Input/Output Systems

Optical discs and system scanners

Network System Solutions

Personal computers, PC servers, network systems, network related software, and service/support

Other Businesses

Digital cameras, analog cameras, semiconductors


Reference:

Three months ended

Three months ended




Exchange rate

September 30, ’02

September 30, ’ 01




US$ 1

¥119.19

¥121.72




EURO 1

¥117.34

¥108.32





15





For the half years ended September 30, 2002, 2001, and year ended March 31, 2002.

(Millions of yen)


Half year ended September 30, ’02

Half Year ended September 30, ’ 01

Change

%

Change excluding exchange rate effect

%

Year ended March 31, ’02

<Office Equipment>








Imaging Solutions:








  Digital Imaging Systems

309,385

311,968

-2,583

-0.8

-9,107

-2.9

654,425

    Percentage of net sales (%)

36.1

38.0





39.1

   Domestic

135,866

152,522

-16,656

-10.9

-16,656

-10.9

294,827

   Overseas

173,519

159,446

14,073

8.8

7,549

4.7

359,598

  Other Imaging Systems

120,977

146,353

-25,376

-17.3

-28,673

-19.6

279,755

    Percentage of net sales (%)

14.1

17.9





16.7

   Domestic

40,961

51,586

-10,625

-20.6

-10,625

-20.6

97,356

   Overseas

80,016

94,767

-14,751

-15.6

-18,048

-19.0

182,399

Total Imaging Solutions

430,362

458,321

-27,959

-6.1

-37,780

-8.2

934,180

    Percentage of net sales (%)

50.2

55.9





55.8

  Domestic

176,827

204,108

-27,281

-13.4

-27,281

-13.4

392,183

  Overseas

253,535

254,213

-678

-0.3

-10,499

-4.1

541,997

Networking input/output systems:








  Printing Systems

189,408

148,406

41,002

27.6

36,292

24.5

299,231

    Percentage of net sales (%)

22.1

18.1





17.9

   Domestic

82,016

65,900

16,116

24.5

16,116

24.5

141,273

   Overseas

107,392

82,506

24,886

30.2

20,176

24.5

157,958

Other Input/Output Systems

29,535

19,896

9,639

48.4

9,402

47.3

45,016

    Percentage of net sales (%)

3.5

2.4





2.7

   Domestic

5,958

7,388

-1,430

-19.4

-1,430

-19.4

14,966

   Overseas

23,577

12,508

11,069

88.5

10,832

86.6

30,050

Total Networking input/output systems

218,943

168,302

50,641

30.1

45,694

27.2

344,247

    Percentage of net sales (%)

25.6

20.5





20.6

  Domestic

87,974

73,288

14,686

20.0

14,686

20.0

156,239

  Overseas

130,969

95,014

35,955

37.8

31,008

32.6

188,008

Network system solutions

100,052

102,950

-2,898

-2.8

-2,968

-2.9

206,962

    Percentage of net sales (%)

11.7

12.6





12.4

  Domestic

98,754

102,004

-3,250

-3.2

-3,250

-3.2

204,631

  Overseas

1,298

946

352

37.2

282

29.8

2,331

Office Equipment Total

749,357

729,573

19,784

2.7

4,946

0.7

1,485,389

    Percentage of net sales (%)

87.5

89.0





88.8

  Domestic

363,555

379,400

-15,845

-4.2

-15,845

-4.2

753,053

  Overseas

385,802

350,173

35,629

10.2

20,791

5.9

732,336

< Other Businesses >








Other Businesses

107,464

90,514

16,950

18.7

16,173

17.9

186,951

    Percentage of net sales (%)

12.5

11.0





11.2

  Domestic

86,020

73,325

12,695

17.3

12,695

17.3

149,602

  Overseas

21,444

17,189

4,255

24.8

3,478

20.2

37,349

Grand Total

856,821

820,087

36,734

4.5

21,119

2.6

1,672,340

    Percentage of net sales (%)

100.0

100.0





100.0

  Domestic

449,575

452,725

-3,150

-0.7

-3,150

-0.7

902,655

    Percentage of net sales (%)

52.5

55.2





54.0

  Overseas

407,246

367,362

39,884

10.9

24,269

6.6

769,685

    Percentage of net sales (%)

47.5

44.8





46.0

      The Americas

170,433

162,666

7,767

4.8

6,533

4.0

341,747

        Percentage of net sales (%)

19.9

19.8





20.4

      Europe

166,169

148,135

18,034

12.2

5,670

3.8

311,312

        Percentage of net sales (%)

19.4

18.1





18.6

      Other

70,644

56,561

14,083

24.9

12,066

21.3

116,626

        Percentage of net sales (%)

8.2

6.9





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

MFPs(multifunctional printers), laser printers, related supplies, services and software

Other Input/Output Systems

Optical discs and system scanners

Network System Solutions

Personal computers, PC servers, network systems, network related software, and service/support

Other Businesses

Digital cameras, analog cameras, semiconductors


Reference:

Half year ended

Half Year ended

Year ended




Exchange rate

September 30, ’02

September 30, ’ 01

March 31, ’02




US$ 1

¥123.08

¥122.16

¥125.10




EURO 1

¥116.95

¥107.79

¥110.60





16





4. Balance Sheets (Consolidated)

September 30, 2002 and March 31, 2002

Assets

(Millions of yen)


September 30, 2002

March 31, 2002

Change

Current Assets




    Cash and time deposits

225,387

182,650

42,737

    Trade receivables

406,579

442,399

-35,820

    Marketable securities

2,118

22,935

-20,817

    Inventories

148,984

162,176

-13,192

    Other current assets

54,876

53,508

1,368

Total Current Assets

837,944

863,668

-25,724

Fixed Assets




    Tangible fixed assets

252,731

259,380

-6,649

    Finance receivable

463,853

447,829

16,024

    Other Investments

271,857

262,051

9,806

Total Fixed Assets

988,441

969,260

19,181

Total Assets

1,826,385

1,832,928

-6,543

Note:

Contents of cash and time deposits:

    Cash and cash equivalents

217,418

170,172


    Time deposits

7,969

12,478


*…Effective from April 1, 2002, Ricoh changed its policy for definition of cash and cash equivalents on its consolidated balance sheets and consolidated statements of cash flow. Results for prior years are restated. (See 8. Significant Accounting Policies (Consolidated) (6))


Liabilities and Shareholders’ Investment

(Millions of yen)


September 30, 2002

March 31, 2002

Change

Current Liabilities




    Trade payables

268,403

277,753

-9,350

    Short-term borrowings

180,383

228,408

-48,025

    Other current liabilities

154,264

159,540

-5,276

Total Current Liabilities

603,050

665,701

-62,651

Fixed Liabilities




    Long-term indebtedness

362,909

332,995

29,914

    Retirement benefit obligation

116,253

119,572

-3,319

    Other fixed liabilities

26,310

30,592

-4,282

Total Fixed Liabilities

505,472

483,159

22,313

Total Liabilities

1,108,522

1,148,860

-40,338

Minority Interest

54,198

51,048

3,150

Shareholders’ Investment




    Common stock

120,489

120,461

28

    Additional paid-in capital

171,656

171,628

28

    Retained earnings

414,176

385,741

28,435

    Accumulated other comprehensive income

-41,762

-44,376

2,614

    Treasury stock

-894

-434

-460

Total Shareholders’ Investment

663,665

633,020

30,645

Total Liabilities and Shareholders’ Investment

1,826,385

1,832,928

-6,543

Note: Other comprehensive income;




    Net unrealized holding gains on available-for-sale securities

9,466

10,566

-1,100

    Pension liability adjustments

-35,185

-39,710

4,525

    Net unrealized gains (losses) on derivative instruments

-183

-207

24

    Cumulative translation adjustments

-15,860

-15,025

-835


Reference: Exchange rate

September 30, 2002

March 31, 2002


US$ 1

¥122.60

¥133.25


EURO 1

¥120.37

¥116.14



5. Retained Earnings

For the half year ended September 30, 2002 and year ended March 31, 2002

(Millions of yen)


Half year ended September 30, 2002

Year ended March 31, 2002

Retained earnings (beginning balance)

385,741

332,447

Net income

33,525

61,614

Cash dividends

5,090

8,320

Retained earnings (ending balance)

414,176

385,741


17





6. Statements of Cash Flow (Consolidated)

For the half year ended September 30, 2002, 2001 and year ended March 31, 2002

(Millions of yen)


Half year ended September 30, 2002

Half year ended September 30, 2001

Year ended March 31, 2002

I. Cash Flows from Operating Activities:




  1. Net income

33,525

28,408

61,614

  2. Adjustments to reconcile net income to net cash




    provided by operating activities—




      Depreciation and amortization

36,782

33,113

73,782

      Equity in earnings of affiliates, net of dividends received

-670

-557

-1,260

      Deferred income taxes

-5,030

342

-1,218

      Loss on disposal and sales of tangible fixed assets

777

856

1,665

      Changes in assets and liabilities—




        Decrease (increase) in trade receivables

30,129

3,201

-20,006

        Decrease in inventories

9,521

10,955

21,194

        Increase in finance receivables

-20,230

-11,139

-13,620

        Decrease in trade payables

-5,339

-18,863

-19,535

        Decrease in accrued income taxes and




        accrued expenses and other

-2,004

-16,443

-13,592

        Retirement benefit obligation, net

5,354

5,428

8,374

Other, net

16,304

9,697

7,740

  Net cash provided by operating activities

99,119

44,998

105,138

II. Cash Flows from Investing Activities:




  1. Proceeds from sales of plant and equipment

174

452

756

  2. Expenditures for tangible fixed assets

-36,576

-39,646

-75,231

  3. Payments for purchases of available-for-sale securities

-22,019

-5,903

-10,025

  4. Proceeds from sales of available-for-sale securities

22,133

6,819

24,568

  5. (Increase) decrease in investments in and advances to affiliates

-586

26

5

  6. Decrease (increase) in time deposits

3,815

-4,804

-477

  7. Other, net

-336

-6,821

-21,017

  Net cash used in investing activities

-33,395

-49,877

-81,421

III. Cash Flows from Financing Activities:




  1. Proceeds from long-term indebtedness

51,032

20,549

71,075

  2. Repayment of long-term indebtedness

-11,559

-34,832

-79,640

  3. Decrease in short-term borrowings, net

-48,641

-4,739

-39,414

  4. Proceeds from issuance of long-term debt securities

10,000

39,500

103,500

  5. Repayment of long-term debt securities

-11,553

-10,000

-10,000

  6. Cash dividends paid

-5,089

-4,156

-8,322

  7. Other, net

-752

-276

-964

  Net cash provided by (used in) financing activities

-16,562

6,046

36,235

IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents

-1,916

766

2,474

V. Net Increase in Cash and Cash Equivalents

47,246

1,933

62,426

VI. Cash and Cash Equivalents at Beginning of Year

170,172

107,746

107,746

VII. Cash and Cash Equivalents at End of Period

217,418

109,679

170,172


*…Effective from April 1, 2002, Ricoh changed its policy for definition of cash and cash equivalents on its consolidated balance sheets and consolidated statements of cash flow. Results for prior years are restated. (See 8. Significant Accounting Policies (Consolidated) (6))





18





7. Segment Information

(1) Industry Segment Information

For the three months ended September 30, 2002 and 2001.

(Millions of yen)


Three months ended September 30, 2002

Three months ended September 30, 2001

Change

%

Net sales:





    Office Equipment

371,990

361,525

10,465

2.9

    Other Businesses

57,314

47,510

9,804

20.6

    Intersegment

-754

-911

157

-17.2

Total

428,550

408,124

20,426

5.0

Operating expenses





    Office Equipment

325,007

319,097

5,910

1.9

    Other Businesses

60,766

46,771

13,995

29.9

    Intersegment

-736

-936

200

-21.4

    Corporate

18,112

14,900

3,212

21.6

Total

403,149

379,832

23,317

6.1

Operating income:





    Office Equipment

46,983

42,428

4,555

10.7

        Operating income on office equipment sales(%)

12.6

11.7

0.9


    Other Businesses

-3,452

739

-4,191

-

        Operating income on other business sales(%)

-6.0

1.6

-7.6


    Intersegment

-18

25

-43

-

    Corporate

-18,112

-14,900

-3,212

21.6

Consolidated operating income

25,401

28,292

-2,891

-10.2

Other income(expenses)

-1,998

-2,949

951

-32.2

Income before income tax

23,403

25,343

-1,940

-7.7

Identificable assets:





    Office Equipment

1,168,995

1,174,019

-5,024

-0.4

    Other Businesses

184,776

172,132

12,644

7.3

    Elimination

-6,851

-8,722

1,871

-21.5

    Corporate assets

479,465

375,613

103,852

27.6

Total

1,826,385

1,713,042

113,343

6.6

Capital expenditure:





    Office Equipment

19,352

20,008

-656

-3.3

    Other Businesses

1,194

1,368

-174

-12.7

    Corporate

266

487

-221

-45.4

Total

20,812

21,863

-1,051

-4.8

Depreciation and Amortization:





    Office Equipment

14,411

15,988

-1,577

-9.9

    Other Businesses

1,802

1,397

405

29.0

    Corporate

699

579

120

20.7

Total

16,912

17,964

-1,052

-5.9






19





For the half years ended September 30, 2002 and 2001, and year ended March 31, 2002.

(Millions of yen)


Half year ended September 30, 2002

Half year ended September 30, 2001

Change

%

Year ended March 31, 2002

Net sales:






    Office Equipment

749,357

729,573

19,784

2.7

1,485,389

    Other Businesses

108,956

92,576

16,380

17.7

190,815

    Intersegment

-1,492

-2,062

570

-27.6

-3,864

Total

856,821

820,087

36,734

4.5

1,672,340

Operating expenses:






    Office Equipment

655,773

645,127

10,646

1.7

1,304,079

    Other Businesses

112,047

91,216

20,831

22.8

187,424

    Intersegment

-1,487

-2,087

600

-28.7

-3,893

    Corporate

29,160

25,927

3,233

12.5

55,035

Total

795,493

760,183

35,310

4.6

1,542,645

Operating income:






    Office Equipment

93,584

84,446

9,138

10.8

181,310

        Operating income on office equipment sales(%)

12.5

11.6

0.9


12.2

    Other Businesses

-3,091

1,360

-4,451

-

3,391

        Operating income on other business sales(%)

-2.8

1.5

-4.3


1.8

    Intersegment

-5

25

-30

-

29

    Corporatee

-29,160

-25,927

-3,233

12.5

-55,035

Consolidated operating income

61,328

59,904

1,424

2.4

129,695

Other income(expenses)

-5,655

-7,380

1,725

-23.4

-15,745

Income before income tax

55,673

52,524

3,149

6.0

113,950

Identificable assets:






    Office Equipment

1,168,995

1,174,019

-5,024

-0.4

1,219,723

    Other Businesses

184,776

172,132

12,644

7.3

185,158

    Elimination

-6,851

-8,722

1,871

-21.5

-6,991

    Corporate assets

479,465

375,613

103,852

27.6

435,038

Total

1,826,385

1,713,042

113,343

6.6

1,832,928

Capital expenditure:






    Office Equipment

35,202

36,300

-1,098

-3.0

68,513

    Other Businesses

2,673

2,510

163

6.5

5,633

    Corporate

546

1,007

-461

-45.8

1,530

Total

38,421

39,817

-1,396

-3.5

75,676

Depreciation and Amortization:






    Office Equipment

29,718

29,298

420

1.4

64,426

    Other Businesses

3,115

2,928

187

6.4

7,448

    Corporate

1,062

887

175

19.7

1,908

Total

33,895

33,113

782

2.4

73,782







20





(2) Geographic Segment Information

For the three months ended September 30, 2002 and 2001.

(Millions of yen)


Three months ended September 30, 2002

Three months ended September 30, 2001

Change

%

Net sales:





Japan





    Unaffiliated Customers

238,610

232,155

6,455

2.8

    Intersegment

74,386

71,671

2,715

3.8

    Total

312,996

303,826

9,170

3.0

The Americas





    Unaffiliated Customers

82,734

82,612

122

0.1

    Intersegment

1,278

1,873

-595

-31.8

    Total

84,012

84,485

-473

-0.6

Europe





    Unaffiliated Customers

82,046

71,580

10,466

14.6

    Intersegment

535

1,224

-689

-56.3

    Total

82,581

72,804

9,777

13.4

Other





    Unaffiliated Customers

25,160

21,777

3,383

15.5

    Intersegment

19,254

14,666

4,588

31.3

    Total

44,414

36,443

7,971

21.9






    Intersegment

-95,453

-89,434

-6,019

6.7

Total

428,550

408,124

20,426

5.0

Operating expenses:





    Japan

301,485

283,945

17,540

6.2

    The Americas

77,845

81,414

-3,569

-4.4

    Europe

78,871

70,640

8,231

11.7

    Other

42,112

34,979

7,133

20.4

    Corporate and eliminations

-97,164

-91,146

-6,018

6.6

Total

403,149

379,832

23,317

6.1

Operating income:





    Japan

11,511

19,881

-8,370

-42.1

        Operating income on sales in Japan (%)

3.7

6.5

-2.9


    The Americas

6,167

3,071

3,096

100.8

        Operating income on sales in The America (%)

7.3

3.6

3.7


    Europe

3,710

2,164

1,546

71.4

        Operating income on sales in Europe (%)

4.5

3.0

1.5


    Other

2,302

1,464

838

57.2

        Operating income on sales in other regions (%)

5.2

4.0

1.2


    Corporate and eliminations

1,711

1,712

-1

-0.1

Consolidated operating income

25,401

28,292

-2,891

-10.2

Other income(expenses)

-1,998

-2,949

951

-32.2

Income before income tax

23,403

25,343

-1,940

-7.7

Identifiable assets:





    Japan

1,047,667

1,040,786

6,881

0.7

    The Americas

204,813

210,771

-5,958

-2.8

    Europe

165,816

159,918

5,898

3.7

    Other

59,483

60,453

-970

-1.6

    Eliminations

-130,859

-134,499

3,640

-2.7

    Corporate assets

479,465

375,613

103,852

27.6

Total

1,826,385

1,713,042

113,343

6.6






21





For the half year ended September 30, 2002 and 2001, and year ended March 31, 2002.

(Millions of yen)


Half year ended September 30, 2002

Half year ended September 30, 2001

Change

%

Year ended March 31, 2002

Net sales:






Japan






    Unaffiliated Customers

478,814

467,270

11,544

2.5

938,946

    Intersegment

152,398

150,594

1,804

1.2

309,745

    Total

631,212

617,864

13,348

2.2

1,248,691

The Americas






    Unaffiliated Customers

164,940

162,139

2,801

1.7

338,016

    Intersegment

2,537

3,365

-828

-24.6

8,937

    Total

167,477

165,504

1,973

1.2

346,953

Europe






    Unaffiliated Customers

165,668

147,786

17,882

12.1

309,086

    Intersegment

1,432

2,160

-728

-33.7

4,265

    Total

167,100

149,946

17,154

11.4

313,351

Other






    Unaffiliated Customers

47,399

42,892

4,507

10.5

86,292

    Intersegment

34,830

29,179

5,651

19.4

60,655

    Total

82,229

72,071

10,158

14.1

146,947







    Intersegment

-191,197

-185,298

-5,899

3.2

-383,602

Total

856,821

820,087

36,734

4.5

1,672,340

Operating expenses:






    Japan

593,978

564,897

29,081

5.1

1,142,522

    The Americas

159,936

163,283

-3,347

-2.0

335,521

    Europe

160,097

145,242

14,855

10.2

301,152

    Other

77,669

69,398

8,271

11.9

139,874

    Corporate and eliminations

-196,187

-182,637

-13,550

7.4

-376,424

Total

795,493

760,183

35,310

4.6

1,542,645

Operating income:






    Japan

37,234

52,967

-15,733

-29.7

106,169

        Operating income on sales in Japan (%)

5.9

8.6

-2.7


8.5

    The Americas

7,541

2,221

5,320

239.5

11,432

        Operating income on sales in The America (%)

4.5

1.3

3.2


3.3

    Europe

7,003

4,704

2,299

48.9

12,199

        Operating income on sales in Europe (%)

4.2

3.1

1.1


3.9

    Other

4,560

2,673

1,887

70.6

7,073

        Operating income on sales in other regions (%)

5.5

3.7

1.8


4.8

    Corporate and eliminations

4,990

-2,661

7,651

-

-7,178

Consolidated operating income

61,328

59,904

1,424

2.4

129,695

Other income(expenses)

-5,655

-7,380

1,725

-23.4

-15,745

Income before income tax

55,673

52,524

3,149

6.0

113,950

Identifiable assets:






    Japan

1,047,667

1,040,786

6,881

0.7

1,084,387

    The Americas

204,813

210,771

-5,958

-2.8

228,743

    Europe

165,816

159,918

5,898

3.7

172,408

    Other

59,483

60,453

-970

-1.6

61,549

    Eliminations

-130,859

-134,499

3,640

-2.7

-149,197

    Corporate assets

479,465

375,613

103,852

27.6

435,038

Total

1,826,385

1,713,042

113,343

6.6

1,832,928







22





8.Significant Accounting Policies (Consolidated)

1. Items relating to the scale of consolidation and the application of the equity method

Consolidated subsidiaries:

5 additions including Ricoh Software Technology (Shanghai) Co., Ltd.

7 removals including INRG Hong Kong Ltd.

Companies accounted for by the equity method:

1 addition: Ricres Co.,Ltd.

8 removals including Ricoh San-ai Tourist Co.,Ltd.

2. Consolidated Accounting Policies (Summary)

(1) Principles of Consolidation

The consolidated financial statements include the accounts of Ricoh. Investments in 20% to 50% owned companies are accounted for on the equity basis. All significant inter-company balances and transactions have been eliminated in consolidation.

(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 mainly 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 and Other Intangible Assets

In conformity with SFAS No.142, "Goodwill and Other Intangible Assets." goodwill and certain other intangible assets that are determined to have indefinite life are not amortized. SFAS No. 142 requires to test for impairment at least annually.

(6) Cash and Cash Equivalents

Effective from April 1, 2002, Ricoh changed its policy for definition of cash and cash equivalents on its consolidated balance sheets and consolidated statements of cash flow. Cash and cash equivalents formerly included cash, negotiable certificates of deposit, time deposits with a maturity of three months or less at the date of purchase and so on. In addition to the above, Ricoh decided to include short-term investment securities into cash equivalents which are available-for-sale at any time and present insignificant risk of changes in value, such as Money Management Funds and Free Financial Funds. Ricoh believes this change to disclose a financial status more preferable, since such short-term investment securities increase in fund operation of Ricoh.

Accompanied by this change, Ricoh restated consolidated balance sheet and consolidated statements of cash flow for prior years. The effect of this change was to increase cash and cash equivalents increased by ¥49,277 million and ¥27,664 million and to decrease equivalently Marketable securities on balance sheet as of September 30, 2001 and March 31, 2002, respectively, and net cash used in investing activities decrease by ¥5,938 million and increase by ¥15,629 million in consolidated statements of cash flow for half year ended September 30, 2001 and year ended March 31, 2002.

23





(7) 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, including impairment losses of long-lived assets and the disclosures of fair value of financial instruments and contingent assets and liabilities, to prepare these financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates.


3. Note

New Accounting Standards

From year ended March 31, 2003, Ricoh has adopted SFAS No. 141, “Business Combinations,” and SFAS No. 142, “Goodwill and Other Intangible Assets.”SFAS No. 141 requires the use of only the purchase method of accounting for business combinations and prohibits the use of the pooling of interests method.

SFAS No. 142 eliminates the amortization of goodwill, requires annual impairment testing of goodwill.

Ricoh has completed the transitional impairment test for existing goodwill as required by SFAS No. 142. Ricoh has determined that the fair value of each reporting unit which includes goodwill is in excess of its carrying amount. Accordingly, no impairment loss was recorded for goodwill upon the adoption of SFAS No. 142.

24





9. Notes to Consolidated Financial Statements


(1) Fair Value of Marketable Securities

The non-marketable securities as of September 30, 2002 and March 31, 2002 primarily relate to less than 20%-owned companies.

The securities and the respective cost, gross unrealized holding gains, gross unrealized holding losses and fair value as of September 30, 2002 and March 31, 2002 are as follows:


(Millions of yen)

Half year ended September 30, 2002


Cost

Gross unrealized holding gains

Gross unrealized holding losses

Fair value

Current:





    Corporate debt securities

2,119

-

1

2,118

    Other

-

-

-

-


2,119

-

1

2,118

Noncurrent:





    Equity securities

7,582

5,931

647

12,866

    Corporate debt securities

15,020

6

97

14,929

    Other

10,294

5

1,140

9,159

    Nonmarketable securities

7,519

-

-

7,519


40,415

5,942

1,884

44,473







(Millions of yen)

Year ended March 31, 2002


Cost

Gross unrealized holding gains

Gross unrealized holding losses

Fair value

Current:





    Corporate debt securities

21,338

1,205

12

22,531

    Other

404

-

-

404


21,742

1,205

12

22,935

Noncurrent:





    Equity securities

7,457

6,025

469

13,013

    Corporate debt securities

20

6

-

26

    Other

10,612

205

519

10,298

    Nonmarketable securities

5,549

-

-

5,549


23,638

6,236

988

28,886

*…Effective from April 1, 2002, short-term investment securities, which are available-for-sale at any time, such as Money Management Funds, are included in cash equivalents. Result for prior years are restated. (See 8. Significant Accounting Policies (Consolidated) (6))






25





(2) Derivative



The Company and certain of its subsidiaries enter into various financial instrument contracts in the normal course of business and in connection with the management of their assets and liabilities.

From fiscal year ended March 31, 2002, the Company adopted FASB Statement No. 133 and FASB Statement No. 138, based on which changes in the fair values of all derivative instruments are recognized as assets or liabilities in the consolidated balance sheets.

The Company and certain of its subsidiaries enter into foreign currency contracts and foreign currency options to hedge assets and liabilities denominated in foreign currencies.

Ricoh enters into interest rate swap agreements to reduce interest rate risk and the fair value of the principal on its outstanding debt and to lower the risks of cash flow fluctuations. Most of these agreements are designated as fair value hedges and cash flow hedges in line with FASB Statement No. 133.

Fluctuations in the fair value of derivative instruments designated as fair value hedges are recorded as other income (expenses) in the consolidated statements of income. These amounts did not materially affect Ricoh's consolidated results of operations in the half year ended September 30, 2002.

Fluctuations in the fair value of derivative instruments designated as cash flow hedges are recorded as accumulated other comprehensive income (loss) in the consolidated balance sheets. They are transferred to the consolidated statements of income once interest for the hedged loans are accrued. Of accumulated other comprehensive income (loss) as of September 30, 2002, Ricoh expects to recognize losses in amount of ¥147 million in the consolidated statements of income within the following 12 months.

These derivative instruments exposed to credit risk in the event of nonperformance by counterparties. However, these counterparties are financial institutions with high credit ratings, so Ricoh deems the credit risk negligible. The Company has optimally concentrated credit risk by diversifying its dealings with counterparties.

The outstanding agreements, carrying amount and estimated fair value of derivative financial instruments as of March 31, 2002, and September 30, 2002 are as follows:



(Millions of yen)

Half year ended September 30, 2002


Carrying amount

Estimated Fair value

Interest rate swap agreements, net

4,158

4,158

Foreign currency contracts-net credit

-157

-157

Currency options-net credit

-482

-482

Total

3,519

3,519



(Millions of yen)

Year ended March 31, 2002


Carrying amount

Estimated Fair value

Interest rate swap agreements, net

4,081

4,081

Foreign currency contracts-net credit

-8,304

-8,304

Currency options

-314

-314

Total

-4,537

-4,537




(3) Transactions of Ricoh with affiliates


(Millions of yen)


September 30, 2002

March 31, 2002

Account balances:



    Receivables

6,306

8,513

    Payables

2,191

2,858






(Millions of yen)


Half year ended September 30, 2002

Year ended March 31, 2002

Transactions:



    Sales

14,541

25,413

    Purchases

10,684

15,584

    Dividend income

938

1,133




26





Ricoh Company, Ltd.

INTERIM REPORT -APPENDIX- (Half year ended September 30, 2002)


1. Quarterly Performance Outline (Consolidated)



1st Quarter ended

Change

2nd Quarter ended

Change


June 30, ’02

(%)

September 30, ’02

(%)

Net sales (billions of yen)

428.2

4.0

428.5

5.0

Gross profit (billions of yen)

186.4

7.2

174.1

3.7

Operating income (billions of yen)

35.9

13.6

25.4

-10.2

Income before income taxes (billions of yen)

32.2

18.7

23.4

-7.7

Net income (billions of yen)

19.5

31.2

14.0

3.5

Interim (net) income per share (yen)

26.85

-

19.26

-

Capital expenditure (billions of yen)

17.6

-

20.8

-

Depreciation for tangible fixed assets (billions of yen)

16.9

-

16.9

-

R&D expenditure (billions of yen)

18.4

-

21.7

-

Interest income (expenses) net (billions of yen)

-0.7

-

-1.2

-

Exchange rate (Yen/US$)

127.01

-

119.19

-

Exchange rate (Yen/EURO)

116.56

-

117.34

-






27





2. Quarterly Sales by Product Category (Consolidated)



(Billions of yen)



1Q ended June 30,'02

Change %

Change excluding exchange rate effect %

2Q ended Sept. 30,'02

Change %

Change excluding exchange rate effect %

<Office Equipment>







Imaging Solutions:







  Digital Imaging Systems

156.2

0.7

-2.3

153.0

-2.4

-3.6

   Domestic

70.9

-12.7

-12.7

64.9

-8.9

-8.9

   Overseas

85.3

15.4

9.1

88.1

3.1

0.9

  Other Imaging Systems

63.6

-16.8

-19.8

57.3

-17.9

-19.4

   Domestic

22.4

-19.8

-19.8

18.5

-21.5

-21.5

   Overseas

41.2

-15.1

-19.8

38.7

-16.1

-18.2

Total Imaging Solutions

219.9

-5.1

-8.1

210.4

-7.2

-8.4

  Domestic

93.3

-14.5

-14.5

83.4

-12.1

-12.1

  Overseas

126.5

3.3

-2.3

126.9

-3.6

-5.8

Networking input/output systems:







  Printing Systems

94.6

22.2

18.1

94.7

33.5

31.4

   Domestic

40.1

27.4

27.4

41.9

21.8

21.8

   Overseas

54.5

18.7

11.8

52.8

44.6

40.4

Other Input/Output Systems

15.8

56.0

55.2

13.6

40.5

38.9

   Domestic

3.4

-13.2

-13.2

2.4

-26.6

-26.6

   Overseas

12.4

100.7

99.4

11.1

76.6

74.1

Total Networking input/output systems

110.5

26.1

22.4

108.4

34.4

32.3

  Domestic

43.5

22.8

22.8

44.4

17.4

17.4

  Overseas

66.9

28.4

22.2

64.0

49.4

45.4

Network system solutions

46.9

-3.8

-3.9

53.1

-2.0

-2.0

  Domestic

46.2

-4.3

-4.3

52.4

-2.2

-2.2

  Overseas

0.6

60.8

49.6

0.6

19.8

15.2

Office Equipment Total

377.3

2.5

-0.2

371.9

2.9

1.6

  Domestic

183.2

-5.1

-5.1

180.3

-3.2

-3.2

  Overseas

194.1

10.9

5.1

191.6

9.4

6.8

< Other Businesses >







Other Businesses

50.9

15.9

14.9

56.5

21.4

20.7

  Domestic

41.6

16.5

16.5

44.3

18.0

18.0

  Overseas

9.2

13.2

7.6

12.1

35.3

31.7

Grand Total

428.2

4.0

1.4

428.5

5.0

3.8

  Domestic

224.8

-1.7

-1.7

224.7

0.3

0.3

  Overseas

203.4

11.0

5.2

203.8

10.7

8.0

      The Americas

84.1

5.4

1.8

86.2

4.2

6.2

      Europe

83.2

9.3

1.0

82.9

15.2

6.8

      Other

35.9

32.5

27.0

34.6

17.9

16.1

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

MFPs(multifunctional printers), laser printers, related supplies, services and software

Other Input/Output Systems

Optical discs and system scanners

Network System Solutions

Personal computers, PC servers, network systems, network related software, and service/support

Other Businesses

Digital cameras, analog cameras, semiconductors


Reference:

Three months ended


Three months ended



Exchange rate

June 30, ’02


September 30, ’02



US$ 1

¥127.01


¥119.19



EURO 1

¥116.56


¥117.34











28





3. Forecast (Consolidated)

(1) Performance Outline (Consolidated)


Year ended March 31, 2002

Half year ended September 30, 2002

2nd half year ended March 31, 2003

Year ended March 31, 2003




(Forecast)

(Forecast)

Net sales (billions of yen)

1,672.3

856.8

893.1

1,750.0

    (% change from the previous corresponding period)

8.7

4.5

4.8

4.6

Gross profit (billions of yen)

699.9

360.6

377.8

738.5

    (% change from the previous corresponding period)

14.1

5.5

5.5

5.5

Operating income (billions of yen)

129.6

61.3

72.6

134.0

    (% change from the previous corresponding period)

23.4

2.4

4.1

3.3

Income before income taxes (billions of yen)

113.9

55.6

65.8

121.5

    (% change from the previous corresponding period)

16.6

6.0

7.2

6.6

Net income (billions of yen)

61.6

33.5

37.4

71.0

    (% change from the previous corresponding period)

15.8

18.0

12.9

15.2

Net income per share (yen)

88.27

46.11

51.56

97.67

Capital expenditure (billions of yen)

75.6

38.4

43.6

82.0

Depreciation for tangible fixed assets (billions of yen)

73.7

33.8

41.2

75.0

R&D expenditure (billions of yen)

80.7

40.2

42.8

83.0

Interest income (expenses) net (billions of yen)

-3.4

-1.9

-2.2

-4.2

Exchange rate (Yen/US$)

125.10

123.08

120.00

121.54

Exchange rate (Yen/EURO)

110.60

116.95

115.00

115.98






29





(2) Forecast of Sales by Product Category (Consolidated)


(Billions of yen)


Half year ended Sept.30,'02

Half year ended March 31,2003

Year ended March 31,2003


Forecast

Change %

Forecast(*)

Change %

Forecast

Change %

Forecast(*)

Change %

<Office Equipment>










Imaging Solutions:










  Digital Imaging Systems

309.3

315.6

-7.8

318.6

-7.0

625.0

-4.5

621.5

-5.0

   Domestic

135.8

135.1

-5.0

135.1

-5.0

271.0

-8.1

271.0

-8.1

   Overseas

173.5

180.4

-9.8

183.5

-8.3

354.0

-1.6

350.5

-2.5

  Other Imaging Systems

120.9

100.5

-24.6

102.4

-23.2

221.5

-20.8

220.1

-21.3

   Domestic

40.9

35.5

-22.4

35.5

-22.4

76.5

-21.4

76.5

-21.4

   Overseas

80.0

64.9

-25.8

66.8

-23.7

145.0

-20.5

143.6

-21.3

Total Imaging Solutions

430.3

416.1

-12.6

421.0

-11.5

846.5

-9.4

841.6

-9.9

  Domestic

176.8

170.6

-9.3

170.6

-9.3

347.5

-11.4

347.5

-11.4

  Overseas

253.5

245.4

-14.7

250.3

-13.0

499.0

-7.9

494.1

-8.8

Networking input/output systems:










  Printing Systems

189.4

228.5

51.6

230.8

53.0

418.0

39.7

415.5

38.9

   Domestic

82.0

92.9

23.4

92.9

23.4

175.0

23.9

175.0

23.9

   Overseas

107.3

135.6

79.7

137.8

82.7

243.0

53.8

240.5

52.3

Other Input/Output Systems

29.5

32.9

31.2

32.7

30.2

62.5

38.8

62.0

37.7

   Domestic

5.9

5.0

-33.5

5.0

-33.5

11.0

-26.5

11.0

-26.5

   Overseas

23.5

27.9

59.2

27.6

57.7

51.5

71.4

51.0

69.7

Total Networking input/output systems

218.9

261.5

48.7

263.5

49.8

480.5

39.6

477.5

38.7

  Domestic

87.9

98.0

18.2

98.0

18.2

186.0

19.0

186.0

19.0

  Overseas

130.9

163.5

75.9

165.4

77.9

294.5

56.6

291.5

55.0

Network system solutions

100.0

104.4

0.4

104.4

0.4

204.5

-1.2

204.4

-1.2

  Domestic

98.7

102.2

-0.4

102.2

-0.4

201.0

-1.8

201.0

-1.8

  Overseas

1.2

2.2

59.0

2.2

60.4

3.5

50.2

3.4

48.0

Office Equipment Total

749.3

782.1

3.5

789.0

4.4

1,531.5

3.1

1,523.5

2.6

  Domestic

363.5

370.9

-0.7

370.9

-0.7

734.5

-2.5

734.5

-2.5

  Overseas

385.8

411.1

7.6

418.0

9.4

797.0

8.8

789.0

7.7

< Other Businesses >










Other Businesses

107.4

111.0

15.1

111.3

15.5

218.5

16.9

218.0

16.6

  Domestic

86.0

88.4

16.0

88.4

16.0

174.5

16.6

174.5

16.6

  Overseas

21.4

22.5

11.9

22.8

13.5

44.0

17.8

43.5

16.6

Grand Total

856.8

893.1

4.8

900.3

5.6

1,750.0

4.6

1,741.6

4.1

  Domestic

449.5

459.4

2.1

459.4

2.1

909.0

0.7

909.0

0.7

  Overseas

407.2

433.7

7.8

440.9

9.6

841.0

9.3

832.6

8.2

      The Americas

170.4

178.5

-0.3

189.5

5.8

349.0

2.1

358.7

5.0

      Europe

166.1

177.8

9.0

172.8

6.0

344.0

10.5

326.7

4.9

      Other

70.6

77.3

28.8

78.5

30.8

148.0

26.9

147.2

26.2

* 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

MFPs(Multifunctional printers), laser printers, related supplies, services and software

Other Input/Output Systems

Optical discs and system scanners

Network System Solutions

Personal computers, PC servers, network systems, network related software, and service/support

Other Businesses

Digital cameras, analog cameras, semiconductors


Reference:



Half year ended


Year ended


Half year ended


Half year ended


Year ended

Exchange rate

March 31, ’02


March 31, ’02


Sept. 30, ’02


March. 31, ’03


March 31, ’03

US$ 1

¥128.06


¥125.10


¥123.08


¥120.00


¥121.54

EURO 1

¥113.42


¥110.60


¥116.95


¥115.00


¥115.98


30





4. 3rd Quarter Performance Forecast (Consolidated)


For the three months ended December 31, 2002 and 2001

(Billions of yen)




Three months ended

Three months ended

Change




December 31, 2001

December 31, 2002






(Forecast)


    Domestic sales

211.7

218.0

6.2

    Overseas sales

189.5

212.0

22.4

Net sales

401.3

430.0

28.6

Gross profit

173.6

185.1

11.4

Operating income

29.7

31.5

1.7

Income before income taxes

25.8

27.5

1.6

Net income

14.8

16.1

1.2

Exchange rate

US$1=¥120.00 (¥123.70 in previous corresponding period)

EURO1=¥115.00 (¥110.74 in previous corresponding period)


5. Calculation Information Where the Equity Method Is Applied to Ricoh’s Leasing Subsidiary


The statements of income and the balance sheets below reflect the application of the equity method where Ricoh Leasing Company, Ltd., is excluded from the consolidated accounts.


Statements of Income (Half Year ended September 30, 2002)

(Billions of yen)


Consolidated

Equity Method

Net sales

856.8

799.7

Gross profit

360.6

352.0

Operating income

61.3

54.1

Income before income taxes

55.6

48.8

Net income

33.5

33.5


Balance Sheets (September 30, 2002)

(Billions of yen)


Consolidated

Equity Method


Consolidated

Equity Method

Current assets

837.9

964.1

Short-term borrowings

180.3

118.7

Fixed assets

988.4

602.2

Other current Liabilities

422.6

480.3




Current assets

603.0

599.1




Long-term borrowings

362.9

135.7




Other fixed liabilities

142.5

141.9




Fixed liabilities

505.4

277.6




Minority interest

54.1

25.9




Shareholders’ investment

663.6

663.6

Assets

1,826.3

1,566.4

Liabilities and

1,826.3

1,566.4




shareholders’ investment




Key Financial Ratios (Half Year ended September 30, 2002)


Consolidated

Change from

Equity Method

Change from



previous period


previous period

Return on assets

3.0%

0.0% point

3.1%

-0.1% point

Return on equity

5.2%

+0.2% point

5.2%

+0.2% point

Equity ratio

36.3%

+2.4% points

42.4%

+2.8% points

Debt/Total assets

29.7%

-2.3% points

16.2%

0.0% point

Debt/Equity

81.9%

-12.5% points

38.4%

-2.7% points

Total assets turnover

0.47

-

0.51

-







31