Docstoc

Full Report Ricoh

Document Sample
Full Report Ricoh Powered By Docstoc
					    ANNUAL REPORT 1999



ADDING COLOR TO YOUR WORLD
P
Ricoh Company, Ltd., is a leading global manufacturer of
office automation equipment.
    Our lineup includes copiers, printers, fax machines,
personal computers, and related supplies. We are also
prominent in digital and conventional cameras, CD-
Recordable and CD-ReWritable drives and media, and
advanced electronic devices.
    Through Image Communication, our corporate slogan
that embodies our commitment to excellence in digital and
color communication techologies, we are building the
equipment and systems that are essential to the modern
networked office.
    The Company has 125 consolidated subsidiaries and
affiliates in Japan and 203 overseas, together employing
around 65,000 people.




Aficio, Aficio Color, and Comet Circle are trademarks of Ricoh Company, Ltd. All other marks
are the property of their respective owners. This publication mentions the A4 and A3 paper
sizes, which are about 8.27 x 11.69 inches and 11.69 x 16.54 inches, respectively.
RICOH’S IMAGE COMMUNICATION CONCEPTS
                                      1. SUPERIOR IMAGING
   We define image information as anything we can see or hear. We develop systems that help
   businesses reach their goals by effortlessly processing the entire range of image information.
                                    2. OPEN STANDARDS
   Open and global de facto standards are vital because many users want to conveniently link
   our systems with those of other manufacturers.
                                   3. APPLIANCE-LIKE EASE
   Products should deliver the plug-and-play ease of household appliances.
                                4. WORKGROUP SUPPORT
   Systems should enhance both individual and group productivity through PC networks.
                               5. TOTAL OFFICE COVERAGE
   Highly productive equipment should be available to users in all business environments—
   corporate, mobile, and home offices.



                                             Product
                                            manufacturer


                    Dealer

                                             Reuse of
                                             products

                   Private reuse
                                   Maintenance
                                    company                        Produ
          User                       Private                       recyc
                                    recycling                       cent
                                    machine




                  Recovery                                       Sorting
                   center                                        disasse

                                                     Recycling
F   INANCIAL HIGHLIGHTS



      Ricoh Company, Ltd., and Consolidated Subsidiaries                                                                                                                    Thousands of             %
      For the Years Ended March 31, 1998 and 1999                                                                                    Millions of yen                        U.S. dollars           change
                                                                                                                              1998                     1999                     1999              1999/1998
          For the Year:
          Net sales                                                                                                ¥1,403,348                 ¥1,425,999                $11,785,116                  1.6%
              Domestic                                                                                                831,339                    820,975                  6,784,918                 -1.2
              Overseas                                                                                                572,009                    605,024                  5,000,198                  5.8
          Net income                                                                                                   30,131                     30,655                    253,347                  1.7

          Per Share Data (in yen and dollars):
          Net income
              Basic                                                                                                ¥          44.97           ¥         44.33           $               0.37        -1.4%
              Diluted                                                                                                         41.35                     40.94                           0.34        -1.0
          Cash dividends, applicable to the year                                                                              11.00                     11.00                           0.09         —

          At Year-End:
          Total assets                                                                                             ¥ 1,660,496                ¥1,628,017                $13,454,686                 -2.0%
          Shareholders’ investment                                                                                    475,005                    487,459                  4,028,587                  2.6
          Notes: (1) Overseas sales include sales of foreign subsidiaries and export sales to unaffiliated foreign customers. See Note 17 to the consolidated financial statements.
                 (2) All dollar figures above and elsewhere in this report refer to U.S. currency. Yen amounts have been translated into U.S. dollars, for the convenience of the reader, at ¥121=$1.
                     Billion is used in the American sense of one thousand million.




          NET SALES           AND       RETURN                                                                                                                    NET INCOME PER SHARE
          ON SALES                                                                   NET INCOME                                                                   OF COMMON STOCK
                                                                                                                                                                       Basic            Diluted
                                               1,426.0
1500                                                           5               35                                                                         50
                                        1,403.3
                              1,316.1                                                                                  30.1     30.7                                                     44.16 44.97 44.33
                                                                                                            28.9                                                                                    41.35 40.94
                                                                                                                                                                                              38.95
1200                                                           4               28                                                                         40
                      1,113.0
               1,020.3                                                                                                                                                          33.55
                                                                                                    21.9                                                                                31.21
                                                                                                                                                                       28.54
    900                                                        3               21                                                                         30
                                                                                            18.6                                                                               26.43

                                        2.2
    600                                                        2               14                                                                         20
                                2.0           2.1        2.1
                       1.8


    300                                                        1                 7                                                                        10


     0                                                         0                 0                                                                            0
                   1995 1996 1997 1998 1999                                                 1995 1996 1997 1998 1999                                                        1995 1996 1997 1998 1999
                    (Billions of Yen, %)                                                       (Billions of Yen)                                                                  (Yen)
                                                                                                                                                                                                              1
    T



                                                                                                                         NETWORKING
              O OUR SHAREHOLDERS AND CUSTOMERS


                                                                                                             Digital in
    Record Challenges, Record Results
              Fiscal 1999 was one of our toughest years for a long time. But it was also a period in which Ricoh con-
              tinued to meet the challenges of the marketplace and seek new ways to maximize customer satisfaction.
              Net sales gained 1.6%, to ¥1,426.0 billion ($11,785 million). This reflected excellent growth overseas,
              which offset incredibly difficult conditions in Japan. Net income was up 1.7%, to ¥30.7 billion ($253
              million). This was partly because taxes decreased.
                  While both results were record highs, we would not be ecstatic about them in an ordinary year. After
              all, we have achieved considerably better growth rates since the mid-1990s.
                                                                                                                         Co
                  But this was no ordinary year. The Japanese economy was depressed, deflationary, and craving for
              credit. We naturally found the domestic marketplace extremely selective. But in a true measure of our
              commitment to customer satisfaction, we
              demonstrated that our computer-connective
              products—particularly multifunctional digital
              copiers and printers—can clearly contribute
              to office efficiency and productivity. More
              about that later.
                  Overseas, conditions were tough through-
              out Asia. That is not surprising. We did
              extremely well in Europe and the United
              States, however, building on the momentum
              generated by Aficio, our global brand for
              digital office equipment.
                  Basic net income per share was ¥44.33
              ($0.37). Fully diluted net income per share was
              ¥40.94 ($0.34). Return on equity was 6.4%,
              off 0.3 percentage point.



                                        HIROSHI HAMADA
                                               Chairman
2
  DOCUMENT SOLUTIONS
nput/output

olor
                                                                                                                           MASAMITSU SAKURAI
                                                                                                                           President




                 Comprehensive Document Solutions
                          We completed our 12th medium-term management plan in fiscal 1999. Our mission during the three
                          years was to go on a marketplace offensive while restructuring, reengineering, and building on our core
                          competence of Image Communication to defend and expand our territory. Put simply, we drove to be-
                          come the leading provider of comprehensive document solutions with our many office output systems.
                          An important achievement in that regard was the expansion of our domestic office printer business in
                          summer 1998.
                             Demand for reliable printers has soared because offices are increasingly networked. In Japan, Ricoh
                          now offers a full regiment of color and monochrome laser printers, as well as inkjet machines. We are
                          pleased to report that all these products were instant hits.
                             We also brought out an exciting new line of color digital copiers domestically and internationally.
                          These enjoyed similar success. Just as pleasing, a J.D. Power Asia Pacific survey found that we were
                          Japan’s No. 1 in customer satisfaction for plain-paper copiers for the fourth consecutive year. We also
                          rocketed to first place in the office printer segment, which augurs well for the years ahead.
                 .


                                                                                                                                               3
                                                                                Grow

                                                                                                                        Value
    New Plans, New Vision
             Despite our achievements, it is more important than ever to drive forward. The goal of our new 13th
             medium-term management plan is to become a more outstanding company in the next millennium.
             But to get there we must retain both customer and community trust. We must constantly generate new
             value for all with a stake in Ricoh, and be influential, global, and a market leader.
                The new plan comprises three basic objectives, each with specific calls to action:
             I. Overhaul Group management to become a more valuable enterprise.
                1. Improve customer satisfaction and the Company’s competitive position by providing useful
                   solutions, building on our prominence in environmental management, and innovating products
                   and systems with appliance-like operability.
                2. Maximize shareholder value by adopting new measures of management performance and
                   accordingly evaluating all operations, emphasizing consolidated Group management, and most
                   efficiently allocating and using Group resources.
                3. Invigorate our people and organization and foster our corporate culture by introducing a more
                   results-oriented management system.

               II. Build a growth-based business and earnings structure and bolster our technological capabilities.
                  1. Reform the business and earnings structure to create a solid cash position. And we will target
                     growth businesses to expand our operational scope and establish high-return models. In the core
                     copiers and supplies area, we will improve our cash position to allocate resources to new growth
                     areas like printers and solutions.
                  2. Pursue global, yet locally focused, expansion by setting up the best sales channels in each
                     market while building our solutions business. We will also provide more products that satisfy de
                     facto standards worldwide.
                  3. Bolster our technological capabilities to support our business structure reforms. We will do
                     this primarily by clarifying areas that need improving, strengthening the links between core
                     businesses and information technology, and revamping technology management.




4
Cash Flow
     Flo
wth                    III. Solidify cash flow management and make Ricoh a low-cost operation.
                          1. Forge ahead with our Group Cash & Cost (G-C&C) strategy to shorten lead times and trim
                             inventories. At the same time, we will overhaul our approach to manufacturing, slash develop-
                             ment cycles and costs, and reform the personnel cost structure.
                          2. Rebuild information systems to support reforms of all business processes. G-C&C initiatives
                             will alter business processes, trim inventories, shorten lead times, and slash costs. These efforts
                             will build on the Ricoh Product Development System, an ongoing cost-cutting program intro-
                             duced several years ago. We will also establish a new supply chain that encompasses procurement,
                             production, and sales.

            In Conclusion
                       Finally, our projections for fiscal 2000 are solid. We expect net sales to rise 2.4%, to ¥1,460 billion.
                       Net income should climb 10.9%, to ¥34 billion, reflecting higher sales, better inventory controls in
                       fiscal 1999, and a lower cost structure.
                           Of course, we cannot guarantee these figures. Nonetheless, we will do our best to ensure that in
                       these and other areas we continue to make Ricoh a more valuable company.

                       June 29, 1999

                       Sincerely,



                       Hiroshi Hamada, Chairman



                       Masamitsu Sakurai, President




                                                                                                                                   5
    A                     DDING            COLOR             TO      YOUR WORLD




    Aficio is Ricoh’s overseas brand for digital office
    equipment. Its world is multifunctional and
    increasingly colorful. Soon to join the exciting
    Aficio range will be an array of printers—all
    designed to empower office users around the
    world with complete document solutions.
    Since its launch in 1996, Aficio has become the top name internationally for quality,
    performance, and affordability. It’s No. 1 in digital monochrome copiers in Europe and the
    United States. These achievements complement Ricoh’s primacy in the Japanese market.
       This special section of the annual report highlights some of the myriad ways
    Ricoh—through Aficio—is working to ensure that it remains the best in its industry.




8
6
Transmission                            Creation




                                                             ¢
                                                                 Color
                                                                 Color

         Information Flow




                                                                   ¢
Storage/
Retrieval                                Output




Printers
¢                                                                        Multifunctional Copiers
                                                                                              ¢
         ¢




With the domestic launch of a new printer range in fiscal

1999, Ricoh now boasts a balanced lineup of office output

systems featuring both copiers and printers—positioning the

Company to become the world leader in outputting solutions.

A J.D. Power Asia Pacific survey found that Ricoh shot to

No. 1 in customer satisfaction in the office printer category,

just months after revamping its printer offerings. The Compa-
                                                             ¢




ny is already top in digital copiers.
                                                                  Black & White
                                                                                                   7
    M     AKING A               WORLD               OF      D II FF FF E R E N C E
                                                                       ERENCE




                                                                            manage all documents electronically, on paper, or in a combina-
    Technology and support are the keys to providing complete               tion of both. It gives users greater power and flexibility in stream-
    document solutions in this increasingly digital world.
                                                                            lining the flow of information by eliminating needless duplication.
        The reason is simple. Digital and networking technologies
                                                                                 While pursuing copier-based multifunctionality, Ricoh also
    have transformed the office landscape. In many ways that has
                                                                            meets demand for networked printers. One of our color laser mod-
    been a tremendous boon. But complexity can bring its own prob-
                                                                            els, the IPSiO Color 5000, is the smallest and delivers the fastest
    lems, which is why Ricoh decided several years ago to explore
                                                                            first page in the 600-dot-per-inch (dpi), A3 color printer category.
    new ways to make Aficio the simplest, most productive—and
                                                                                 Of course, all this hidden complexity needs support. Ricoh is
    most satisfying—user experience in the world.
                                                                            the best in the business at providing it. To that end, we maintain
        The simplest way to define what office equipment should be
                                                                            the Ricoh global support structure, which helps users with ques-
    is to consider the appliance. It does what you want day in, day
                                                                            tions or problems. It includes operations that send out teams to
    out. It rarely breaks down. It is child’s play to use, and is never
                                                                            potential customers to identify their specific needs and office set-
    intrusive.
                                                                            ups, with a key focus on their computer and other information
        The emphasis on appliance simplicity has conditioned Ricoh’s
                                                                            systems. We take both preventive and protective approaches to
    whole approach to document solutions.
                                                                            the user experience.
        Take a look at the latest Aficios and you’ll soon see what the
                                                                                 No Ricoh business is an island. All Group operations are part
    technology delivers. All the systems are compact. Much of this
                                                                            of a worldwide information-sharing system that covers everything
    is because Ricoh has shrunk its engines without compromising
                                                                            from technologies to service and customer feedback.
    reliability. The same engine can now be used to power a host of
                                                                                 Put together, our technologies and support all make a world
    multifunctional capabilities, from copying to printing and fax-
                                                                            of difference in document solutions.
    ing. The bottom line for offices is that they can reliably save space
    and money.
        Speed is another key consideration. There is nothing worse
    than waiting what seems like hours to do a simple copy job. Those
    days are gone. All our machines offer lightning-fast startups. For
    walk-up jobs, many machines even have sensors that wake up
    machines automatically. The first copy speeds are among the
    fastest in the world. And all our products optimize throughput.
        More and more Ricoh copiers are color models. They use
    multifunctional digital technologies to process documents fast.
    In printer mode, for example, new models automatically
    identify whether each page in a document is color or mono-
    chrome—and print out accordingly.
        Over the next few years, users will see yet another change in
    the way Ricoh strives for appliance simplicity. It’s a system that                                                  The Pan European Help Desk at Ricoh Europe
                                                                                                                        B.V. in the Netherlands comprehensively assists
    employs remote scanning and network printing so you can                                                             customer engineers and dealers.

8
This computer-aided design image shows the

RICOH COLOR LASER AP305 (sold in Japan as

the IPSiO Color 5000). Ricoh developed a host of

new technologies for this model. The design brief

was to create the ultimate in maintenance simplicity.

       If paper jams for any reason, the user just

opens the front cover to release it. With other

Ricoh models and those of all other makers, the

solution is somewhat more complicated.

       Our engineers discovered that the best way

to achieve this solution and minimize jamming was

to transfer the paper directly upward from the

paper tray. They achieved this by developing a
                                                                                                                 3
                                                                                                                 4
                                                                                                                 5
                                                                                                                 6


                                                                                                                 7
                                                        2
                                                                                                                 8




                                                                                    1

                                                            1.   Charge unit            5.   Transfer roller
                                                            2.   Development unit       6.   Mid-transfer belt
                                                            3.   Exit rollers           7    Photoconductor
                                                            4.   Fusing roller          8    Relay roller
The European Digital Solution Centre in Germany
tests the connectivity of Aficio series models sold
throughout the region and develops driver software.



seamless photoconductor belt and mid-transfer

belt. This direct route seems obvious. But it has

been the Holy Grail of office equipment for years.

       The improvements also significantly lightened

the entire unit without reducing image quality. To

help cut weight, the engineers used just two rollers

to support the mid-transfer belt. All other compa-

nies use at least three. Another great user advan-

tage is that you can print on all types of paper,

even on postcards. The direct feed eliminates the

possibility of unwelcome bending or wrinkling.




                                                                                                                     9
     M     AKING THE                   WORLD               A    BETTER PLACE




     While building on its product leadership, Ricoh aims to be             14001, the global standard for environmental management.
     second to none as a corporate citizen. The prime focus here is             It is impossible to sufficiently cover all our environmental
     environmental management, coupled with assistance from                 initiatives here. For more information, visit our website:
     Ricoh operations worldwide to worthy research.                         (http://www.ricoh.co.jp/R_Info/Erth/index_e.html).
         Ricoh is now widely considered a pioneer in corporate envi-            All Ricoh Group members aid efforts to better understand
     ronmental activities. We have come a long way. In early 1998,          the world we live in. An excellent example is a donation that
     for example, Japan’s top business daily ranked us the nation’s         Ricoh France S.A. made for an intensive biodiversity project in
     leader in environmental management. In early 1999, the Envi-           Gabon’s rainforests in early 1999. The research was organized
     ronmental Protection Agency (EPA) of the United States                 by Pro-Natura International, a private, nonprofit organization,
     awarded us its most notable prize for our energy-saving                and involved leading scientists from around the world. This
     initiatives, the Energy Star Imaging Partner of the Year, for the      project used the world’s largest motorized dirigible to spread a
     fourth successive year.                                                large net above the forest canopy so the scientists could live
         Such achievements benefit our customers in many ways.              and work there for days at a time.
     They know we are doing our best to reduce environmental im-                By doing its best for the environment, Ricoh aims to make
     pact. They also know they can save real money by using less            the world a better place.
     energy. We have thereby helped users save literally millions of
     dollars in electricity consumption.
         Our approach is schematically presented in the Ricoh
     Comet Circle. Through it, we are transforming ideas into
     action, doing everything to promote recycling and responsible
     disposal, not just by ourselves, but also by our suppliers under
     our Green Partnership Program and Green Purchasing Plan.
         To accelerate the goals we seek through the Comet Circle,
     we have put in place our Environmental Action Plan. This ini-
     tiative provides specific deadlines, mostly for just before or after
     the turn of the century. The plan stresses progress in four areas:
     1. Environmental management systems
     2. Resource conservation and recycling
     3. Energy saving
     4. Pollution prevention
         Ricoh has used its environmental management system to
     help all major Group companies earn certification under ISO




10
(Top and bottom left) Ricoh France contributed to a biodiversity project in

Gabon’s rainforests in early 1999.

(Right) In 1998, Ricoh Corporation was made the inaugural Energy Star

Imaging Partner of the Year by the EPA of the United States. Pictured,

from left, are Michael Sarasin, director of Corporate Quality Assurance

      at Ricoh Corporation, Paul M. Stolpman, director of the Office of

      Atmospheric Programs, Office of Air and Radiation, EPA, and Kirk

       Yoshida, chairman and CEO of Ricoh Corporation.




                               Ricoh Comet CircleTM

                                                                                    Parts                            Materials                                                                Materials
                                                                                 manufacturer                       manufacturer                                                               supplier
                                                      Product
                                                     manufacturer


                                                                                  Reuse of
                             Dealer                                                 parts
                                                      Reuse of
                                                      products                                                                                             Recycled
                                                                                                                                                           materials
                                                                                                                                                             user
                            Private reuse                                                                                      Closed loop                                         Raw materials generated
                                                                                                                               materials                   Open loop               • Chemical recycling
                                            Maintenance                                                  Parts                 recycling Materials                     Oil recovery • Metals recycling
                                             company                        Product                                                                        materials
                                                                                                        recycling                          recycling                     company
                    User                      Private                       recycling                                                                      recycling
                                             recycling                       center                       center                            company                      Smelting
                                             machine                                                                                                                     company Metals



                                                                                                                                                                             Cracked oil    Thermal
                                                                                                                                                                                             energy       Energy recovery
                                                                                                                                                                                           recovery      (Energy, carbon dioxide)
                            Recovery                                      Sorting and                                                                                                      company
                             center                                       disassembly

                                                              Recycling
                                                               center
                                                                                                                                                                                                                  Final
                                                                                                    Shredder                                                                                                    disposal
                                                                                                    company                                                                                                     company
                                                                                                                                                  Shredder dust
                                                                                                Product crushing                                                                                                 Landfill



                                                                                                                                                                                                                                    11
R
                                                           1
                                     EVIEW OF                  OPERATIONS



                                                OFFICE EQUIPMENT
                                                Copiers and Related Supplies
                                                MARKET TRENDS AND RICOH’S POSITION
                                                Ricoh pioneered digital copiers and is the world’s No. 1 manufacturer of this
                                                                                                                                The Hong Kong headquarters of CATHAY PACIFIC
                                                equipment.
                                                                                                                                AIRWAYS LIMITED bought more than 30 units of
                                                   Networking is essential to boost productivity in today’s office environ-     the Aficio 650 because of the machine’s 65-cpm
                                                                                                                                output and stapling, sorting, and other convenient
                                                ment. Ricoh has drawn on years of development in digital technologies to
                                                                                                                                finishing functions.
                                                serve the digitally networked office. The Company dominates the digital
                                                copier market in Japan. Overseas, it has launched an array of networked
                                                models. It has remained No. 1 in Europe and the United States in its core
                                                business of digital monochrome copiers for the past three years.

                                                FISCAL 1999 PERFORMANCE
                                                In fiscal 1999, copier sales rose 1.8%, to ¥906.9 billion ($7,495 million).
                                                This accounted for 63.6% of net sales.
                                                    Domestic sales declined 4.6% amid Japan’s prolonged recession. In
                                                contrast, overseas sales jumped 9.0% in line with solid performances in
                                                Europe and the United States.
                                                    Growth abroad stemmed from steadily expanding demand for digital
       SALES OF COPIERS AND                     copiers, supported by a reinforced lineup under the Aficio brand and stronger
       RELATED SUPPLIES                         sales channels and technical support.
                                                    The Aficio 650 was especially popular. This digital copier
1000                                            can output 65 copies per minute (cpm). Also selling well was
                                  891.0 906.9
                          828.4
                                                a range of models with speeds between 20 and 55 cpm to
800                                             meet a broad range of volume requirements.
                  654.5
          582.9
600


400


200


  0
           1995 1996 1997 1998 1999
              (Billions of Yen)
12
California-based electronic components maker            The Aficio 650 is our flagship digital machine. It
BOURNS, INC., chose the 45-cpm Aficio 450 for
                                                    contributes to office productivity with post-processing
its compactness, networkability, and reliability.
Pictured is Belle Casale, customer service repre-   features like stapling and sorting, with optional finishers. Its
sentative.
                                                    network printer function is very popular because it takes full advantage
                                                    of digital multifunctionality. In 1998, Business Equipment Research &
                                                                                                                                               SEIKO INSTRUMENTS USA INC. uses the six-
                                                    Test Laboratories bestowed its Five-Star Award on the Aficio 650 as the                    color-cpm, networkable Aficio Color 5106 heav-
                                                                                                                                               ily to output advertising and other artwork. Pictured
                                                    best product in its category.
                                                                                                                                               is Greg Roper, marketing communications spe-
                                                        The 25-cpm Aficio 250 sold solidly. This low-volume machine saves                      cialist.
                                                    space by outputting paper in a cavity within the unit. It also boasts fax and
                                                    printer upgradeability.
                                                        Other good sellers were the 35-cpm Aficio 340/350 and the 45-cpm
                                                    Aficio 450. Their prime attractions are a resolution of 600 dpi in printing
                                                    mode and multifunctionality.
                                                        Two machines contributed most to color copier sales. These were the
                                                    compact Aficio Color 2000 series, which delivers three cpm in color mode,




                                                                                                           The Brussels office of VOLKSWAGEN BRUXELLES-
                                                                                                           BRUSSEL NV-SA has bought several Ricoh copiers,
                                                                                                           including the Aficio 200.
                                                                                                                                                                                                       13
R           EVIEW OF                                    OPERATIONS




                                                            and the Aficio Color 5000 series, which offers six color cpm. Both models are
                                                            available in basic formats. With a controller added, they double as network-
                                                            able color printers.
                                                               Domestically, we achieved steady progress by broadening our digital lineup.
                                                            But sales dipped slightly—the prolonged recession hit analog copiers hard.          The HONG KONG SPECIAL ADMINISTRATIVE
                                                               In analog copiers, we stepped up environmental protection efforts in             REGION GOVERNMENT ordered 650 units of the
                                                                                                                                                Aficio 450, a 45-cpm machine, as part of its drive
                                                            Japan by bringing out more remanufactured models incorporating up to 60%            to enhance administrative efficiency with equip-
                                                            recycled parts.                                                                     ment that delivers the best value.
                                                               Complementing our copiers are high-resolution, wide-format copiers and
                                                            stencil duplicators, many of which are digital and networkable.

                                                            LOOKING AHEAD
                                                            The trend toward digital networking is making office work more efficient and
                                                            productive. Ricoh will respond by reinforcing its lineup of digital, particularly
                                                            color, machines, to provide more document solutions.
                                                               In Japan, we have already launched a series of multifunctional copiers
                                                            based on new concepts, including remote scanning. One system
                                                            works as a gateway to both paper-based and electronic document
                                                            management. Internationally, we will continue to expand the
                                                            Aficio range.
                                                               In color machines, we have domestically commercialized a
                                                            new Imagio Color series of multifunctional copiers with stronger
                                                            monochrome reproduction and networking capabilities, as




     A firm belief in Ricoh’s technology, responsive ser-
     vice, and cost performance underscored the
     COMMONWEALTH BANK OF AUSTRALIA’s choice
     of the Aficio 340, a 35-cpm model that can also
     transmit in the Super G3 mode. Pictured are Kerrie
     Cargill, assistant category manager, and Pauline
     Batey, business equipment officer.

14
                                                    well as better color quality. We will also release the Aficio Color 3000, 4000,
                                                    and 6000 series overseas.
                                                       On the production front, we have started making digital equipment in
                                                    China. This complements bases in Japan, the United States, and Europe. We
                                                    are also stepping up consumables production in each region to match global
                                                                                                                                      The EUROPEAN SERVICE PARTS CENTRE ware-
                                                    demand.                                                                           houses more than 160,000 service parts for Ricoh
                                                                                                                                      machines, and ships to more than 1,000 locations
                                                                                                                                      in Europe in as little as four hours after receiving
                                                                                                                                      orders.




The Aficio Color 5206’s ability to produce top-
quality images quickly and at low cost prompted
the SPANISH NATIONAL POLICE to buy 50 units                                                                                           Ricoh strengthened its 27-year partnership with
of this machine fitted with slide projectors. The                                                                                     FORD MOTOR COMPANY OF AUSTRALIA through
copiers output high-resolution images of speed                                                                                        the Aficio 450, selected in line with comprehen-
offenders, taken by hidden cameras on national                                                                                        sive efforts to cut the automaker’s costs and bolster
highways.                                                                                                                             productivity. Pictured is Ken Isaac, facilities mate-
                                                                                                                                      rials and services purchasing buyer.




The 25-cpm Aficio 250 has won top marks for its
space-saving output cavity at BERTRAND FAURE
DEUTSCHLAND GMBH, a top producer of car seats
based in Stadthagen, Germany.




                                                                                                                                                                                              15
      R       EVIEW OF                      OPERATIONS




                                            OFFICE EQUIPMENT
                                            Communications and Information Systems
                                            MARKET TRENDS AND RICOH’S POSITION
                                            Ricoh’s activities in this area encompass fax machines, as well as printers,
                                            scanners, software, and other information equipment.
                                               Customers today demand operational solutions, not just products. Ricoh
                                            optimizes equipment and systems for networked environments. It uses
                                            proprietary digital and image processing technologies to provide more
                                            document solutions. The main focuses are printers and other networkable
                                            output equipment.

                                            FISCAL 1999 PERFORMANCE
                                            Sales in this category advanced 1.6%, to ¥327.5 billion ($2,707 million), and
                                            represented 23.0% of net sales.
                                               Our performance benefited greatly from a complete line of printers that
                                            Ricoh launched in Japan during the year. A stronger computer range in the
                                            domestic market also contributed. Fax machines were particularly popular in
                                            Europe.

      SALES OF COMMUNICATIONS               COMMUNICATIONS SYSTEMS
      AND INFORMATION SYSTEMS
                                            We enjoyed considerable success with our multifunctional, networked fax
                                            machines.
350                                            An especially strong seller overseas was the FAX2000L, a compact,
                              322.4 327.5
                      308.3                 computer-connective plain-paper model for small work groups. The
        283.2 287.4
280                                         FAX4800L was similarly successful. This machine can be upgraded to the G4
                                            protocol. It also features an Internet connection option to streamline
210                                         communications.
                                               In Japan, we reinforced our line of Super G3 models. They can transmit
140                                         an A4 page over regular telephone lines in just three seconds.


70


 0
          1995 1996 1997 1998 1999
            (Billions of Yen)
16
                                                                 Italy’s MINISTRY OF JUSTICE takes full advantage
                                                                 of the G4 option on the FAX4800L to transmit
                                                                 documents swiftly to more than 1,500 legal bureaus
                                                                 around the country.
                                                                                                                                     The IPSiO Color 5000 laser printer occupies pride
                                                                                                                                     of place at the Japan branch of DEL MONTE FRESH
                                                   INFORMATION SYSTEMS
                                                                                                                                     PRODUCE INC. for its A3 output and compactness.
                                                   In this business area, Ricoh concentrates on printers and scanners domesti-
The JACKSONVILLE JAGUARS, LTD., a National
                                                   cally and internationally. In Japan, it offers PCs, software and services, and
Football League team, tackles its communications
easily with the FAX2000L, a compact machine        Japanese-language word processors.
with Super G3 transmission speed. Pictured is          During the year, we scored an instant hit in Japan with the IPSiO series of
William Houston, account executive, Corporate
Sponsorship.                                       compact, high-speed printers, covering all market segments. The top-of-the-
                                                   line IPSiO NX700 can output up to A3 size at 20 pages per minute (ppm).
                                                   The mid-range IPSiO NX600 delivers 16 ppm. The NX70 is targeted at small
                                                   and home offices with low budgets. A highlight of the year was the launch of
                                                   the Company’s first color laser printer, the IPSiO Color 2000.
                                                       Ricoh harnessed its strong sales network to boost PC sales.
                                                       In software, we did well with Ricoh Solution Group Office, which we
                                                   originally brought out to assist in-house reforms. It is based on Lotus Notes
                                                   groupware and is popular for its superior practicality.

                                                   LOOKING AHEAD
                                                   In fiscal 2000, we plan to build on the popularity of our enhanced printer
                                                   line to bring out models overseas under the Aficio brand. We will also bolster
                                                   our printer business overall by developing more multifunctional copiers with
                                                   printer capabilities. In Japan, we have introduced the IPSiO Color 5000, an
                                                   A3 color printer, and a networkable printer with improved post-processing.
                                                   Through a joint development project with a software company, we have also
                                                   commercialized Japan’s first printer driver for Linux operating systems. All      The GOTEMBA PLANT is Ricoh’s prime facility for
                                                   these endeavors mirror a companywide drive to be the global No. 1 in output       manufacturing printers.

                                                   equipment.




                                                                                                                                                                                         17
                                                             2
      R          EVIEW OF                         OPERATIONS




                                                  O    T H E R                B     U S I N E S S E S

                                                  Ricoh maintains several businesses that draw on and complement its broad
                                                  technological resources. The main products in this area are photographic
                                                  equipment, CD-Recordable/CD-ReWritable (CD-R/RW) drives and discs,
                                                  and unit modules for PC parts.
                                                     We also make educational and measuring equipment and provide leasing
                                                  and logistics services to support customers’ operations.

                                                  FISCAL 1999 PERFORMANCE                                                        The Type 74 is the world’s first CD-RW disc to
                                                                                                                                 write at quadruple speed, and can also handle
                                                  Sales of other businesses expanded 0.9%, to ¥191.5 billion ($1,583 million),
                                                                                                                                 single and double speeds.
                                                  on the strength of favorable sales in Japan and Europe. This category
                                                  accounted for 13.4% of net sales.

                                                  CD BUSINESS
                                                  CD-RW discs are ideal for storing multimedia computer data. Ricoh played a
                                                  major role in creating the international technical standards for CD-RW and
                                                  is a major player in this business, particularly in Europe and the United
                                                  States.
                                                      In fiscal 1999, we launched the instantly successful MP7040 series of
                                                  compact CD-R/RW drives. They write at quadruple speed and read out at
     SALES   OF    OTHER BUSINESSES               20-times speed.

                                                  ELECTRONIC DEVICES
                                          191.5
200                               189.9           Ricoh develops and manufactures electronic devices,
                          179.4
                  171.2                           crucial to innovating image processing systems. We
         154.2
160                                               create application-specific integrated circuits (ASICs)
                                                  and application-specific standard products (ASSPs).
120


 80


 40


 0
             1995 1996 1997 1998 1999
                (Billions of Yen)
18
                                                                                                                                      The RDC-5000 boasts a resolution of 2.3-million
                                                                                                                                      pixels, a 2.3X optical zoom, and compact camera
                                                                                                                                      simplicity. It can display images on both NTSC
                                                                                                                                      and PAL televisions.
                                                      In ASICs, we develop central processing unit cores and large-scale integrated
                                                      circuits for telecommunications. Our ASSP lineup includes CD-R/RW
The MP7040 series of CD-R/RW drives writes            controllers and PC card controllers for notebook computers. With general-
both CD-R and CD-RW discs at quadruple speed
and reads at 20-times speed, making it the perfect
                                                      purpose large-scale integrated circuits, we make power management chips
solution for users seeking safe storage and perfor-   and real-time clocks, for which we have developed the world’s smallest chip
mance.
                                                      and a Y2K-compliant chip.

                                                      PHOTOGRAPHIC EQUIPMENT
                                                      Ricoh offers both 35mm compact cameras and digital models.
Sales representatives for THE YASUDA MUTUAL
                                                          We pioneered digital cameras, which have tremendous potential as com-
LIFE INSURANCE COMPANY have found Ricoh’s
MP7040SEW CD-R/RW drives and discs invalu-            puter input devices. During the year, we introduced the RICOH DC-4 series
able for making multimedia presentations on their     (RDC-4300/4200 overseas). This camera features a 3X optical zoom lens and
notebook computers. Pictured is Takayori Bandoh
of the Group Insurance Marketing Division in the      a resolution of 1,320,000 pixels.
editing room.                                             Our advanced 35mm compact camera range includes the GR1S and the
                                                      GR10, for which demand is high in Japan and abroad. Our cameras sell espe-
                                                      cially well in China. The Information People’s Daily ranked Ricoh as the most
                                                      popular foreign camera brand in the nation.

                                                      LOOKING AHEAD
                                                                                                                                      Ricoh developed and makes the world’s smallest
                                                      Digital cameras will become even more popular in the years ahead. After the     real-time clock (right) for mobile telephones, per-
                                                      close of the term, we brought out the RDC-5000, which offers a resolution of    sonal digital assistants, and other devices. Just three
                                                                                                                                      millimeters wide, the chip is shown next to an
                                                      2,300,000 pixels and compact camera ease.                                       earlier Ricoh version.
                                                          We will develop more ASICs and ASSPs for our digital products and
                                                      information and telecommunications equipment.
                                                          We will continue to take advantage of our position as a leading global
                                                      manufacturer of CD-R/RW drives and media.




                                                                                                                                                                                                19
     M        ANAGEMENT’S DISCUSSION AND ANALYSIS OF FISCAL 1999 RESULTS


     In fiscal 1999, ended March 31, 1999, Ricoh Company, Ltd., completed its                   The average yen-dollar exchange rate for the term was down around ¥5,
     12th medium-term management plan. This initiative focused on reinforcing               to ¥128. The yen-deutschemark average was ¥73, down around ¥4.
     management’s emphasis on customer satisfaction while making Ricoh a more
     valuable business. Ricoh strove companywide to develop products that match             Operating Income
     user needs, aggressively market, and bolster its production and supplies struc-        Operating income fell 18.0%, to ¥73.5 billion ($608 million). The gross prof-
     ture.                                                                                  it ratio slipped 0.4 percentage point, to 39.9%. This was mainly because of
          As a result of these endeavors, Ricoh achieved record net sales for the           the domestic sales decline and stricter inventory controls, which increased
     fourth consecutive year and record net income for the fifth year running.              manufacturing overheads.
                                                                                                 Selling, general and administrative expenses increased 4.2%, to ¥495.0
     Revenues                                                                               billion ($4,091 million). This was due primarily to the yen’s depreciation,
     Net sales were up 1.6% from fiscal 1998, to ¥1,426.0 billion ($11,785                  which boosted the costs of foreign subsidiaries when translated into yen, and
     million).                                                                              restructurings at some subsidiaries.
          In the office equipment category, sales of copiers and related supplies rose           Research and development costs dipped 4.6%, to ¥66.8 billion ($552
     1.8%. This business benefited from a stronger sales structure overseas and fa-         million), and represented 4.7% of net sales, down 0.3 percentage point.
     vorable conditions in the European and U.S. markets, which offset stagnant
     conditions in Japan. Communications and information systems sales                      Income before Income Taxes
     advanced 1.6%. New networkable offerings contributed to sales, especially in           Income before income taxes, minority interests and equity in earnings of
     the domestic market.                                                                   affiliates dropped 22.5%, to ¥53.1 billion ($438 million). Net interest
          Office equipment sales thus gained 1.7%, to ¥1,234.5 billion ($10,202             expense and interest and dividend income decreased 9.6%, to ¥5.7 billion
     million). Office equipment represented 86.6% of net sales.                             ($47 million). Foreign exchange losses were ¥3.5 billion ($29 million). Other
          Domestic sales were down 1.2%, to ¥821.0 billion ($6,785 million). This           expenses included losses of ¥5.3 billion ($43 million) from bankruptcies of
     figure constituted 57.6% of net sales, from 59.2%. Overseas sales climbed              companies in which Ricoh had investments or accounts receivable.
     5.8%, to ¥605.0 billion ($5,000 million). This accounted for 42.4% of net
     sales, from 40.8% in fiscal 1998.




                     R&D EXPENDITURE AND                                       CAPITAL EXPENDITURES                                    TOTAL ASSETS
                     PERCENT OF NET SALES

                80                                                10     100                                                    2000
                                                                                                        94.1
                                                                                                                                                           1,660.5
                                                 70.0
                                                         66.8                                                                                        1,644.9     1,628.0
                                         64.3                                                    78.7                                          1,508.5
                64                                                8       80                                                    1600
                                 59.0
                         55.0                                                                                  70.5
                                                                                                                                         1,320.6
                48                                                6       60                                                    1200
                                                                                          48.8
                                5.4     5.3                                        45.4
                                                4.9     5.0     4.7
                32                                                 4      40                                                     800


                16                                                2       20                                                     400


                 0                                                0        0                                                       0
                          1995 1996 1997 1998 1999                                  1995 1996 1997 1998 1999                                1995 1996 1997 1998 1999
                           (Billions of Yen, %)                                       (Billions of Yen)                                       (Billions of Yen)
20
In fiscal 1999, ended March 31, 1999, Ricoh Company, Ltd., completed its            sales, from 40.8% in fiscal 1998.
12th medium-term management plan. This initiative focused on reinforcing                 The average yen-dollar exchange rate for the term was down around ¥5,
management’s emphasis on customer satisfaction while making Ricoh a more            to ¥128. The yen-deutschemark average was ¥73, down around ¥4.
valuable business. Ricoh strove companywide to develop products that match
user needs, aggressively market, and bolster its production and supplies struc-     Operating Income
ture.                                                                               Operating income fell 18.0%, to ¥73.5 billion ($608 million). The gross prof-
     As a result of these endeavors, Ricoh achieved record net sales for the        it ratio slipped 0.4 percentage point, to 39.9%. This was mainly because of
fourth consecutive year and record net income for the fifth year running.           the domestic sales decline and stricter inventory controls, which increased
                                                                                    manufacturing overheads.
Revenues                                                                                 Selling, general and administrative expenses increased 4.2%, to ¥495.0
Net sales were up 1.6% from fiscal 1998, to ¥1,426.0 billion ($11,785               billion ($4,091 million). This was due primarily to the yen’s depreciation,
million).                                                                           which boosted the costs of foreign subsidiaries when translated into yen, and
     In the office equipment category, sales of copiers and related supplies rose   restructurings at some subsidiaries.
1.8%. This business benefited from a stronger sales structure overseas and fa-           Research and development costs dipped 4.6%, to ¥66.8 billion ($552
vorable conditions in the European and U.S. markets, which offset stagnant          million), and represented 4.7% of net sales, down 0.3 percentage point.
conditions in Japan. Communications and information systems sales
advanced 1.6%. New networkable offerings contributed to sales, especially in        Income before Income Taxes
the domestic market.                                                                Income before income taxes, minority interests and equity in earnings of
     Office equipment sales thus gained 1.7%, to ¥1,234.5 billion ($10,202          affiliates dropped 22.5%, to ¥53.1 billion ($438 million). Net interest
million). Office equipment represented 86.6% of net sales.                          expense and interest and dividend income decreased 9.6%, to ¥5.7 billion
     Domestic sales were down 1.2%, to ¥821.0 billion ($6,785 million). This        ($47 million). Foreign exchange losses were ¥3.5 billion ($29 million). Other
figure constituted 57.6% of net sales, from 59.2%. Overseas sales climbed           expenses included losses of ¥5.3 billion ($43 million) from bankruptcies of
5.8%, to ¥605.0 billion ($5,000 million). This accounted for 42.4% of net




                SHAREHOLDERS’ INVESTMENT                                  COMMON STOCK PRICE RANGE
                AND RETURN ON
                SHAREHOLDERS’ INVESTMENT
                                                  487.5
          500                                             10      2000
                                          475.0
                                  422.9
                    377.8 401.5                                   1600
          400                                             8

                                      7.0             6.4
                                              6.7                 1200
          300                                            6
                               5.6
                         5.1
                                                                    800
          200                                             4

                                                                    400
          100                                             2

                                                                      0
            0                                             0                I   II III IV   I   II III IV     I   II III IV     I   II III IV     I   II III IV
                     1995 1996 1997 1998 1999                                  1995             1996              1997              1998             1999
                       (Billions of Yen, %)                                                                      (Yen)
                                                                                                                                                                    21
     In fiscal 1999, ended March 31, 1999, Ricoh Company, Ltd., completed its           to ¥128. The yen-deutschemark average was ¥73, down around ¥4.
     12th medium-term management plan. This initiative focused on reinforcing
     management’s emphasis on customer satisfaction while making Ricoh a more           Operating Income
     valuable business. Ricoh strove companywide to develop products that               Operating income fell 18.0%, to ¥73.5 billion ($608 million). The gross prof-
     match user needs, aggressively market, and bolster its production and              it ratio slipped 0.4 percentage point, to 39.9%. This was mainly because of
     supplies structure.                                                                the domestic sales decline and stricter inventory controls, which increased
          As a result of these endeavors, Ricoh achieved record net sales for the       manufacturing overheads.
     fourth consecutive year and record net income for the fifth year running.               Selling, general and administrative expenses increased 4.2%, to ¥495.0
                                                                                        billion ($4,091 million). This was due primarily to the yen’s depreciation,
     Revenues                                                                           which boosted the costs of foreign subsidiaries when translated into yen, and
     Net sales were up 1.6% from fiscal 1998, to ¥1,426.0 billion ($11,785              restructurings at some subsidiaries.
     million).                                                                               Research and development costs dipped 4.6%, to ¥66.8 billion ($552
          In the office equipment category, sales of copiers and related supplies       million), and represented 4.7% of net sales, down 0.3 percentage point.
     rose 1.8%. This business benefited from a stronger sales structure overseas
     and favorable conditions in the European and U.S. markets, which offset            Income before Income Taxes
     stagnant conditions in Japan. Communications and information systems sales                                                 Fiscal 1997     Fiscal 1998     Fiscal 1999
     advanced 1.6%. New networkable offerings contributed to sales, especially in        Return on sales                           2.2%            2.1%            2.1%
     the domestic market.                                                                Return on shareholders’
          Office equipment sales thus gained 1.7%, to ¥1,234.5 billion ($10,202          investment                                7.0%             6.7%            6.4%
     million). Office equipment represented 86.6% of net sales.                          Current ratio                             1.11             1.04            1.27
          Domestic sales were down 1.2%, to ¥821.0 billion ($6,785 million). This        Debt-to-equity ratio
     figure constituted 57.6% of net sales, from 59.2%. Overseas sales climbed            (interest-bearing debt to
     5.8%, to ¥605.0 billion ($5,000 million). This accounted for 42.4% of net           shareholders’ investment)                 1.71             1.42            1.34
     sales, from 40.8% in fiscal 1998.                                                   Interest coverage                         6.4              7.8             6.8
          The average yen-dollar exchange rate for the term was down around ¥5,

     SALES BY PRODUCT LINE
                                                                                               1998                                              1999
                                                                                                      Percentage of                           Percentage of     Thousands of
                                                                             Millions of yen            net sales         Millions of yen       net sales        U.S. dollars
     Office Equipment:
       Copiers and related supplies                                           ¥ 891,043                   63.5%       ¥      906,908             63.6%        $ 7,495,108
       Communications and
         information systems                                                      322,425                23.0             327,543               23.0             2,706,967
     Other Businesses                                                             189,880                13.5             191,548               13.4             1,583,041
     Total                                                                    ¥ 1,403,348               100.0%        ¥ 1,425,999              100.0%         $ 11,785,116

     SALES BY GEOGRAPHIC AREA
                                                                                               1998                                               1999
                                                                                                      Percentage of                           Percentage of     Thousands of
                                                                             Millions of yen            net sales         Millions of yen       net sales        U.S. dollars
     Japan                                                                    ¥ 831,339                  59.2%        ¥   820,975               57.6%         $ 6,784,918
     The Americas                                                                 230,342                16.4             239,623               16.8            1,980,355
     Europe                                                                       252,042                18.0             283,373               19.9            2,341,926
     Other                                                                         89,625                 6.4              82,028                5.7              677,917
     Total                                                                    ¥ 1,403,348               100.0%        ¥ 1,425,999              100.0%         $11,785,116


22
INDUSTRY SEGMENT INFORMATION BASED ON JAPANESE DISCLOSURE STANDARDS
                                                                                                                  Thousands of
                                                                                 Millions of yen                   U.S. dollars
                                                                          1998                     1999              1999
Net Sales
  Office Equipment:
     Unaffiliated Customers                                           ¥ 1,213,468          ¥ 1,234,451        $ 10,202,075
     Intersegment                                                              —                    —                   —
     Total                                                              1,213,468            1,234,451          10,202,075
  Other Businesses:
     Unaffiliated Customers                                               189,880              191,548           1,583,041
     Intersegment                                                           4,078                4,023              33,248
     Total                                                                193,958              195,571           1,616,289
  Eliminations                                                             (4,078)              (4,023)            (33,248)
  Consolidated                                                        ¥ 1,403,348          ¥ 1,425,999        $ 11,785,116
Operating Income
  Office Equipment                                                    ¥ 129,969            ¥       113,897    $  941,297
  Other Businesses                                                        1,220                      1,196         9,884
  Corporate and Eliminations                                            (41,482)                   (41,546)     (343,355)
  Consolidated                                                        ¥ 89,707             ¥        73,547    $ 607,826
Identifiable Assets
  Office Equipment                                                    ¥ 1,060,416          ¥ 1,001,219        $ 8,274,537
  Other Businesses                                                        186,877              210,094           1,736,314
  Corporate and Eliminations                                              413,203              416,704           3,443,835
  Consolidated                                                        ¥ 1,660,496          ¥ 1,628,017        $ 13,454,686
Depreciation and Amortization
  Office Equipment                                                    ¥     49,328         ¥        54,551    $     450,835
  Other Businesses                                                          10,993                  11,369           93,959
  Corporate                                                                  1,650                   1,536           12,694
  Consolidated                                                        ¥     61,971         ¥        67,456    $     557,488
Capital Expenditures
  Office Equipment                                                    ¥     76,924         ¥        59,469    $     491,479
  Other Businesses                                                          15,484                   9,527           78,735
  Corporate                                                                  1,709                   1,473           12,174
  Consolidated                                                        ¥     94,117         ¥        70,469    $     582,388




                                                                                                                                  23
     GEOGRAPHIC SEGMENT INFORMATION BASED ON JAPANESE DISCLOSURE STANDARDS
                                                                                                                      Thousands of
                                                                                     Millions of yen                   U.S. dollars
                                                                              1998                     1999              1999
     Net Sales
     Japan
        Unaffiliated Customers                                          ¥      846,018         ¥     830,731      $ 6,865,546
        Intersegment                                                           246,961               240,352        1,986,380
        Total                                                                1,092,979             1,071,083        8,851,926
     The Americas
        Unaffiliated Customers                                          ¥     224,407          ¥       237,420    $ 1,962,149
        Intersegment                                                            6,938                    8,019         66,272
        Total                                                                 231,345                  245,439      2,028,421
     Europe
        Unaffiliated Customers                                          ¥     260,093          ¥       290,159    $ 2,398,009
        Intersegment                                                            3,533                    6,032         49,851
        Total                                                                 263,626                  296,191      2,447,860
     Other
        Unaffiliated Customers                                          ¥    72,830            ¥    67,689        $   559,413
        Intersegment                                                         48,090                 39,218            324,116
        Total                                                               120,920                106,907            883,529
     Eliminations                                                          (305,522)              (293,621)        (2,426,620)
     Consolidated                                                       ¥ 1,403,348            ¥ 1,425,999        $11,785,116
     Operating Income
     Japan                                                              ¥      70,681          ¥        50,568    $     417,917
     The Americas                                                              11,043                   12,147          100,388
     Europe                                                                     8,486                   12,375          102,273
     Other                                                                      4,829                    3,206           26,496
     Corporate and Eliminations                                                (5,332)                  (4,749)         (39,248)
     Consolidated                                                       ¥      89,707          ¥        73,547    $     607,826
     Identifiable Assets
     Japan                                                              ¥   997,004            ¥ 1,008,764        $ 8,336,893
     The Americas                                                           127,719                111,768             923,702
     Europe                                                                 147,419                138,697           1,146,256
     Other                                                                   59,620                 53,715             443,926
     Corporate and Eliminations                                             328,734                315,073           2,603,909
     Consolidated                                                       ¥ 1,660,496            ¥ 1,628,017        $ 13,454,686




24
Market Risk                                                                            gations, the table presents principal cash flows by expected maturity date and
                                                                                       related weighted average interest rates. For interest rate swaps, the table pre-
MARKET RISK EXPOSURE                                                                   sents notional amounts by expected maturity date and weighted average
Ricoh is exposed to market risks primarily from changes in foreign currency            interest rates. Notional amounts are generally used to calculate the contrac-
exchange rates and interest rates, which affect outstanding debt and certain           tual payments to be exchanged under the contract.
assets and liabilities denominated in foreign currencies. In order to manage
these risks that arise in the normal course of business, Ricoh enters into hedging     CREDIT RISK
transactions pursuant to its policies and procedures covering such areas as            Credit risk arising from the nonperformance of counterparties to meet the
counterparty exposure and hedging practices. Ricoh does not hold or issue              terms of financial instrument contracts is generally limited to the amounts by
derivative financial instruments for trading purposes, or to generate income.          which the counterparties’ obligations exceed the obligations of Ricoh. It is
     Ricoh regularly assesses these market risks based on the policies and proce-      Ricoh’s policy to only enter into financial instrument contracts with a diver-
dures established to protect against adverse effects of these risks and other          sity of high credit rated financial institutions to minimize the concentration
potential exposures, primarily by reference to the market value of the financial       of credit risk. Therefore, Ricoh does not expect to incur material credit losses
instruments. As a result of the latest assessment, Ricoh does not anticipate any       on its financial instruments.
material losses in these areas.
                                                                                       Year 2000
FOREIGN CURRENCY RISK                                                                  The Year 2000 (Y2K) problem has occurred because computer systems and
In the ordinary course of business, Ricoh uses foreign exchange forward                equipment and facilities incorporating microchips express years in two digits
contracts to manage the effects of foreign currency exchange risk on monetary          instead of four. As a result, programs could misinterpret “00” as the year
assets and liabilities denominated in foreign currencies. The contracts with           1900, causing miscalculations and failure with date-sensitive information.
respect to the operating activities generally have maturities of less than six              Ricoh is tackling Y2K for its products through specialized teams within
months, while the contracts with respect to the financing activities have the          its sales operations in Japan and overseas.
same maturities as underlying assets and liabilities.                                       Ricoh has appointed a director to oversee its overall in-house systems.
    The table below provides information about Ricoh’s major derivative                This director reports directly to the president. In addition, the Company
financial instruments that are sensitive to foreign currency exchange rates,           maintains a groupwide information systems committee to address Y2K issues.
except for the contracts with respect to the financial activities. For foreign              Ricoh’s Y2K responses cover four phases. The first is to conduct initial
exchange forward contracts, the table presents the notional amounts and                surveys. The second is to plan responses. The third is to implement respons-
weighted average exchange rates. These notional amounts generally are used             es. The fourth is to monitor progress.
to calculate the contractual payments to be exchanged under the contracts.                  The Company’s Y2K effort encompasses the four following areas:

FOREIGN EXCHANGE FORWARD CONTRACTS                                                     1. Products
                                                                       Thousands of    In June 1998, Ricoh began notifying customers for core products through
                                                 Millions of yen        U.S. dollars   sales companies. Changes to avoid Y2K problems are almost complete. Ricoh
                          Average contractual                                          aims to finish work on other offerings by the end of September 1999. The
                                 rates          Contract amounts   Contract amounts
                                                                                       Company has publicized its Y2K information and relevant contact details at
US$/¥                         116.12            ¥     31,724       $      262,182      the following website: http://www.ricoh.co.jp/year2000/index.html
Dfl/¥                          59.88                  21,136              174,678
                                                                                       2. Information Systems
INTEREST RATE RISK                                                                     1) Software
In the ordinary course of business, Ricoh enters into interest rate swap agree-        Ricoh has completed Y2K compliance work on core business systems,
ments to reduce interest rate risk and to modify the interest rate characteris-        notably order, shipping, production, inventory, and accounts management
tics of its outstanding debt. These agreements primarily involve the                   setups. Data link testing mostly ended by June 1999, and should be done by
exchange of fixed and floating rate interest payments over the life of the             September 1999.
agreement without the exchange of the underlying principal amounts.                    2) Hardware (Computers)
     The table on page 26 provides information about Ricoh’s major                     The Company completed most of its readiness program for mainframes and
derivative and other financial instruments that are sensitive to changes in in-        main servers by the end of June 1999. Outstanding tasks should end in
terest rates, including interest rate swaps and debt obligations. For debt obli-       September 1999. Y2K implementation for personal computers is almost
                                                                                       finished, with all units being ready by September 1999.
                                                                                                                                                                          25
                                                                                                                      Millions of yen
     LONG-TERM INDEBTEDNESS
                                                                                                                          Expected maturity date
     (Excluding Capital Lease Obligations)
                                                                              Average                                                                      2005 and
                                                                            interest rate   Total    2000      2001         2002             2003   2004   thereafter
     Convertible Bonds                                                          0.86 % ¥ 80,040 ¥      — ¥ 4,920 ¥ 34,906 ¥ 40,214 ¥        — ¥      —
     Bonds                                                                      4.51     115,072 65,072         —     10,000       —        —    40,000
     Medium-Term Notes                                                          3.92      19,827    9,157    4,603     5,253       —        —       814
     Loans                                                                      2.92     219,984 19,277     53,626    67,828   11,041   25,859   42,353
     Total                                                                             ¥ 434,923 ¥ 93,506 ¥ 63,149 ¥ 117,987 ¥ 51,255 ¥ 25,859 ¥ 83,167

     INTEREST RATE SWAPS                                                                                              Millions of yen
                                                                                                                          Expected maturity date
        Notional amounts                                       Average        Average                                                                      2005 and
           (Millions)                Type of swap            receive rate     pay rate      Total    2000      2001         2002             2003   2004   thereafter
       ¥           244,993   Receive floating/Pay fixed         0.42 %          1.55 % ¥ 244,993 ¥ 32,500 ¥ 13,600 ¥ 9,880 ¥ 93,075 ¥ 87,315 ¥ 8,623
                    51,500   Receive fixed/Pay floating         3.74            0.40      51,500 10,000      5,000   6,000    1,000    2,000   27,500
                    11,000   Receive floating/Pay floating      1.84            0.42      11,000 11,000         —       —        —        —        —
       US$              30   Receive floating/Pay fixed         5.54            5.60 ¥     2,412 ¥     — ¥ 1,206 ¥ 1,206 ¥       — ¥      — ¥      —



     LONG-TERM INDEBTEDNESS                                                                                      Thousands of U.S. dollars
     (Excluding Capital Lease Obligations)                                                                                Expected maturity date
                                                                              Average                                                                      2005 and
                                                                            interest rate   Total    2000      2001         2002             2003   2004   thereafter
     Convertible Bonds                                                          0.86 % $ 661,487 $        — $ 40,661 $ 288,479 $ 332,347 $        — $       —
     Bonds                                                                      4.51       951,009 537,785          —     82,645        —         — 330,579
     Medium-Term Notes                                                          3.92       163,859 75,678       38,041    43,413        —         —      6,727
     Loans                                                                      2.92     1,818,050 159,314 443,190 560,562          91,248 213,711 350,025
     Total                                                                             $ 3,594,405 $ 772,777 $ 521,892 $ 975,099 $ 423,595 $ 213,711 $ 687,331

     INTEREST RATE SWAPS                                                                                         Thousands of U.S. dollars
                                                                                                                          Expected maturity date
        Notional amounts                                       Average        Average                                                                      2005 and
           (Millions)                 Type of swap           receive rate     pay rate      Total    2000      2001         2002             2003   2004   thereafter
       ¥           244,993   Receive floating/Pay fixed         0.42 %          1.55 % $ 2,024,736 $ 268,595 $ 112,397 $ 81,653 $ 769,215 $ 721,612 $ 71,264
                    51,500   Receive fixed/Pay floating         3.74            0.40       425,620 82,645       41,322   49,587     8,264    16,529 227,273
                    11,000   Receive floating/Pay floating      1.84            0.42        90,909 90,909           —        —         —         —        —
       US$              30   Receive floating/Pay fixed         5.54            5.60 $ 19,934 $           — $ 9,967 $ 9,967 $          — $       — $      —




26
3) Infrastructure                                                                 The Euro
The domestic and international segments of Ricoh’s core in-house network,         On January 1, 1999, 11 of the 15 member countries of the European Union
called R-Wan, are almost Y2K-compliant. Completion is scheduled for               (EU) established fixed conversion rates between their existing currencies
September 1999. Most local area networks have been fixed. Here, too, the          and their new common currency—the euro. The euro trades on currency ex-
completion target is September 1999.                                              changes and the existing currencies remain legal tender in the participating
3. Facilities                                                                     countries for a transition period until January 1, 2002.
Most development and production facilities were Y2K-compliant by June                  The introduction of the euro reduces Ricoh’s exposure to the change
1999. The remainder should be ready by September 1999. The full                   in foreign exchange rates caused by intra-EU transactions, while it has
switchover to a Y2K environment is scheduled for November 1999.                   increased the pace of price harmonization throughout Europe. Ricoh is
    Most air conditioners, dining facilities, elevators, building entrances and   analyzing its pricing strategy to minimize any potential risk from price
exits, and telephone systems are Y2K-compliant; all will be ready by Septem-      harmonization.
ber 1999.                                                                              Ricoh estimates that the euro conversion will not have a material
                                                                                  impact on its financial condition or results of operations.
4. Vendors
Ricoh has surveyed and collected responses from all main vendors. The             Forward-Looking and Cautionary Statements
Company has identified no vendors with potential delivery difficulties.           Certain statements contained in this annual report may constitute forward-
    Order management systems that Ricoh has supplied its sales companies          looking statements, which involve a number of risks, uncertainties and other
and dealers are almost all Y2K-compliant. After installing new versions of        factors that would cause actual results to differ materially from those project-
Ricoh-provided software, all will be ready.                                       ed or implied elsewhere in this annual report.
It is difficult to accurately estimate Y2K-related costs because the readiness
effort has been both internal and external. The parent company and main
Group members have allocated around ¥1.5 billion externally to their Y2K
programs. To date, ¥1.05 billion has been spent. The remainder is slated for
fiscal 2000.
      Y2K costs will not materially affect the performances of Group members
or the parent company.
      Ricoh is a global business and deals with many external parties. As a re-
sult, it is hard to precisely measure the impact of Y2K. While the Company
has taken all necessary steps to resolve all projected Y2K issues and minimize
the impact of Y2K, Ricoh cannot guarantee invulnerability to related litiga-
tion.
      After reviewing the status of Y2K responses, Ricoh intends to plan and
launch contingency programs before September 1999 to cover both products
in the field and in-house systems, such as its communications infrastructure,
information systems, development and production facilities, and operational
facilities.




                                                                                                                                                                     27
     S      ELECTED FINANCIAL DATA


     Ricoh Company, Ltd. and Consolidated Subsidiaries
     For the Years Ended March 31
                                                                                                 1990               1991
     For the Year:
       Net sales                                                                             ¥ 835,464          ¥ 1,003,263
       Cost of sales                                                                           550,088              645,875
       Selling, general and administrative expenses                                            257,038              322,402
       Income before income taxes, minority interests and equity in earnings of affiliates      31,207               38,365
       Provision for income taxes                                                               20,036               27,025
       Net income                                                                               15,871               13,557

       Capital expenditures                                                                       53,826             70,777
       Depreciation and amortization                                                              44,300             48,868

     Per Share Data (in yen and dollars):
       Net income:
         Basic                                                                               ¥     26.18        ¥     20.90
         Diluted                                                                                   23.94              20.48
       Cash dividends, applicable to the year                                                       9.52              10.00

     At Year-End:
       Total assets                                                                          ¥ 831,627          ¥ 1,198,717
       Long-term indebtedness                                                                   86,147              246,853
       Shareholders’ investment                                                                347,041              362,988
       Working capital                                                                         183,008              114,809

     Return on sales                                                                                    1.9 %              1.4 %
     Return on shareholders’ investment                                                                 4.8                3.8

     Common Stock Price Range (in yen and dollars):
       High                                                                                  ¥     1,360        ¥     1,340
       Low                                                                                         1,010                671




28
                                                                                                                                                             Thousands of
                                    Millions of yen                                                                                                           U.S. dollars
    1992               1993                   1994                1995               1996               1997               1998               1999               1999


¥ 1,017,417        ¥ 1,021,915           ¥ 968,318            ¥ 1,020,296        ¥ 1,113,030        ¥ 1,316,072        ¥ 1,403,348        ¥1,425,999         $11,785,116
    677,674            657,750             605,958                628,071            683,406            772,238            838,440           857,423           7,086,141
    328,522            327,397             326,352                339,891            374,246            460,471            475,201           495,029           4,091,149
     10,869             17,784              26,167                 41,674             51,020             66,905             68,428            53,054             438,463
     13,010             14,716              18,233                 24,931             28,251             39,864             40,210            24,555             202,934
      2,041              5,015               9,520                 18,593             21,869             28,922             30,131            30,655             253,347

     75,057             46,747                 44,928              45,437             48,828             78,666             94,117            70,469             582,388
     56,811             55,846                 49,155              44,960             46,430             51,000             61,971            67,456             557,488



¥      3.13        ¥      7.70           ¥       14.61        ¥     28.54        ¥     33.55        ¥     44.16        ¥     44.97        ¥    44.33         $      0.37
       3.13               7.70                   14.47              26.43              31.21              38.95              41.35             40.94                0.34
      10.00              10.00                   10.00              10.00              10.00              12.00              11.00             11.00                0.09


¥ 1,235,779        ¥ 1,228,959           ¥ 1,238,275          ¥ 1,320,617        ¥ 1,508,519        ¥ 1,644,896        ¥ 1,660,496        ¥1,628,017         $13,454,686
    309,315            303,599               337,592              386,535            411,023            386,918            295,536           344,580           2,847,769
    357,795            351,602               349,945              377,840            401,471            422,923            475,005           487,459           4,028,587
     86,874             77,318               116,108              142,021            139,163             77,527             31,681           176,161           1,455,876

           0.2 %              0.5 %                   1.0 %              1.8 %              2.0 %              2.2 %              2.1 %              2.1 %              —
           0.6                1.4                     2.7                5.1                5.6                7.0                6.7                6.4                —


¥          820     ¥          728        ¥            849     ¥     1,020        ¥     1,230        ¥     1,530        ¥     1,900        ¥    1,634         $     13.50
           455                402                     561             726                650              1,050              1,270               969                8.01




                                                                                                                                                                             29
     C      ONSOLIDATED BALANCE SHEETS


     Ricoh Company, Ltd. and Consolidated Subsidiaries
     March 31, 1998 and 1999                                                                                                                              Thousands of
                                                                                                                           Millions of yen                 U.S. dollars
     ASSETS                                                                                                         1998                     1999            1999
     Current Assets:
        Cash and cash equivalents                                                                                ¥ 141,334          ¥        130,655    $ 1,079,793
        Time deposits                                                                                               17,750                    16,477        136,174
        Marketable securities                                                                                       86,487                    98,246        811,950
        Trade receivables—
          Notes                                                                                                      80,128                   77,784        642,843
          Accounts                                                                                                  279,057                  283,237      2,340,802
          Less—Allowance for doubtful receivables                                                                   (11,781)                 (13,887)      (114,769)
        Inventories—
          Finished goods                                                                                            136,339                  112,505        929,793
          Work in process and raw materials                                                                          47,846                   49,793        411,512
        Deferred income taxes                                                                                        34,918                   30,347        250,802
        Cash deposits for assignment of debt securities                                                                  —                    52,210        431,488
             Total current assets                                                                                   812,078                  837,367      6,920,388


     Plant and Equipment, at Cost:
        Land                                                                                                         41,628                44,445            367,314
        Buildings                                                                                                   178,396               188,408          1,557,091
        Machinery and equipment                                                                                     541,502               574,468          4,747,669
        Construction in progress                                                                                      8,884                 3,613             29,860
                                                                                                                    770,410               810,934          6,701,934
        Less—Accumulated depreciation                                                                              (502,857)             (546,017)        (4,512,537)
                                                                                                                    267,553               264,917          2,189,397


     Investments and Other Assets:
        Finance receivables                                                                                          379,482            350,384            2,895,736
        Investment securities                                                                                         52,966             45,002              371,917
        Investments in and advances to affiliates                                                                     52,694             46,152              381,422
        Lease deposits and other                                                                                      95,723             84,195              695,826
                                                                                                                     580,865            525,733            4,344,901
                                                                                                                 ¥ 1,660,496        ¥ 1,628,017         $ 13,454,686
     The accompanying notes to consolidated financial statements are an integral part of these balance sheets.




30
                                                                                                     Thousands of
                                                                       Millions of yen                U.S. dollars
LIABILITIES AND SHAREHOLDERS’ INVESTMENT                        1998                     1999           1999
Current Liabilities:
  Short-term borrowings                                     ¥    278,114       ¥         214,290   $ 1,770,992
  Current maturities of long-term indebtedness                   101,296                  94,426       780,380
  Trade payables—
    Notes                                                         56,908                  43,564        360,033
    Accounts                                                     222,312                 205,595      1,699,132
  Accrued income taxes                                            23,743                  14,869        122,884
  Accrued expenses and other                                      98,024                  88,462        731,091
    Total current liabilities                                    780,397                 661,206      5,464,512



Long-Term Liabilities:
  Long-term indebtedness                                         295,536                 344,580      2,847,769
  Estimated retirement allowances                                 59,045                  82,283        680,025
  Deferred income taxes                                           26,292                  14,831        122,570
                                                                 380,873                 441,694      3,650,364
Minority Interests                                                24,221                  37,658        311,223


Commitments and Contingent Liabilities (Note 16)

Shareholders’ Investment:
  Common stock, par value ¥50 per share:
    Authorized—1,000,000,000 shares
    Issued and outstanding—691,546,422 shares in 1998 and
     691,598,631 shares in 1999                                   102,820     102,849                   849,992
  Additional paid-in capital                                      154,026     154,055                 1,273,182
  Legal reserve                                                    13,407      14,271                   117,942
  Retained earnings                                               216,410     238,592                 1,971,835
  Accumulated other comprehensive income (loss)                   (11,658)    (22,308)                 (184,364)
       Total shareholders’ investment                             475,005     487,459                 4,028,587
                                                            ¥   1,660,496 ¥ 1,628,017              $ 13,454,686




                                                                                                                     31
     C      ONSOLIDATED STATEMENTS OF INCOME


     Ricoh Company, Ltd. and Consolidated Subsidiaries                                                                                                                Thousands of
     For the Years Ended March 31, 1997, 1998 and 1999                                                                           Millions of yen                       U.S. dollars
                                                                                                                  1997                1998             1999               1999
     Net Sales                                                                                               ¥   1,316,072   ¥      1,403,348      ¥ 1,425,999    $ 11,785,116
     Cost of Sales                                                                                                 772,238            838,440          857,423       7,086,141
       Gross profit                                                                                                543,834            564,908          568,576       4,698,975

     Selling, General and Administrative Expenses                                                                 460,471             475,201          495,029         4,091,149
       Operating income                                                                                            83,363              89,707           73,547           607,826

     Other (Income) Expenses:
       Interest and dividend income                                                                                (7,150)             (5,931)          (5,933)          (49,033)
       Interest expense                                                                                            14,077              12,270           11,661            96,372
       Foreign currency exchange (gain) loss, net                                                                  (1,302)              3,695            3,503            28,950
       Other, net                                                                                                  10,833              11,245           11,262            93,074
         Total                                                                                                     16,458              21,279           20,493           169,363

     Income before Income Taxes, Minority Interests and Equity in
       Earnings of Affiliates                                                                                      66,905              68,428           53,054           438,463

     Provision for Income Taxes:
       Current                                                                                                     46,672              42,108           28,052           231,835
       Deferred                                                                                                    (6,808)             (1,898)          (3,497)          (28,901)
         Total                                                                                                     39,864              40,210           24,555           202,934

     Income before Minority Interests and Equity in Earnings of
       Affiliates                                                                                                  27,041              28,218           28,499           235,529
     Minority Interests                                                                                             2,186               2,154            1,939            16,025
     Equity in Earnings of Affiliates                                                                               4,067               4,067            4,095            33,843
     Net Income                                                                                              ¥     28,922    ¥         30,131      ¥    30,655    $      253,347
                                                                                                                                      Yen                              U.S. dollars
     Per Share of Common Stock:
     Net income:
       Basic                                                                                                 ¥      44.16    ¥           44.97     ¥     44.33    $           0.37
       Diluted                                                                                                      38.95                41.35           40.94                0.34
     Cash dividends, applicable to the year                                                                  ¥      12.00    ¥           11.00     ¥     11.00    $           0.09
     Per American Depositary Share, Each
       Representing 5 Shares of Common Stock:
     Net income:
       Basic                                                                                                 ¥     220.80    ¥         224.85      ¥    221.65    $           1.83
       Diluted                                                                                                     194.75              206.75           204.70                1.69
     Cash dividends, applicable to the year                                                                  ¥      60.00    ¥          55.00      ¥     55.00    $           0.45
     The accompanying notes to consolidated financial statements are an integral part of these statements.




32
C      ONSOLIDATED STATEMENTS OF SHAREHOLDERS’ INVESTMENT


Ricoh Company, Ltd. and Consolidated Subsidiaries                                                                                                              Thousands of
For the Years Ended March 31, 1997, 1998 and 1999                                                                         Millions of yen                       U.S. dollars
                                                                                                            1997               1998             1999              1999
Common Stock:
   Beginning balance                                                                                    ¥    79,741   ¥          82,035     ¥   102,820    $      849,752
     Conversion of convertible bonds; 4,888,423 shares in 1997,
      34,170,930 shares in 1998, and 52,209 shares in 1999                                                    2,294             20,785               29               240
   Ending balance                                                                                       ¥    82,035   ¥        102,820      ¥   102,849    $      849,992


Additional Paid-in Capital:
   Beginning balance                                                                                    ¥   131,179   ¥        133,463      ¥   154,026    $ 1,272,942
     Conversion of convertible bonds                                                                          2,284             20,563               29            240
   Ending balance                                                                                       ¥   133,463   ¥        154,026      ¥   154,055    $ 1,273,182


Legal Reserve:
   Beginning balance                                                                                    ¥    11,471   ¥          12,327     ¥    13,407    $      110,802
     Transfer from retained earnings                                                                            856               1,080             864             7,140
   Ending balance                                                                                       ¥    12,327   ¥          13,407     ¥    14,271    $      117,942


Retained Earnings:
   Beginning balance                                                                                    ¥   174,116 ¥          194,992 ¥        216,410    $ 1,788,512
     Net income                                                                                              28,922             30,131           30,655        253,347
     Cash dividends paid                                                                                     (7,190)            (7,633)          (7,609)       (62,884)
     Transfer to legal reserve                                                                                 (856)            (1,080)            (864)        (7,140)
   Ending balance                                                                                       ¥   194,992 ¥          216,410 ¥        238,592    $ 1,971,835


Accumulated Other Comprehensive Income (Loss):
   Beginning balance                                                                                    ¥     4,964   ¥             106     ¥   (11,658)   $      (96,347)
     Unrealized holding gains on available-for-sale securities,
      net of reclassification adjustment                                                                    (10,665)             (5,965)         (3,924)      (32,430)
     Foreign currency translation adjustments                                                                 8,280                 (53)         (2,217)      (18,322)
     Minimum pension liability adjustments                                                                   (2,473)             (5,746)         (4,509)      (37,265)
   Ending balance                                                                                       ¥       106 ¥           (11,658) ¥      (22,308)   $ (184,364)


Comprehensive Income (Loss):
   Net income for the year                                                                              ¥    28,922 ¥            30,131 ¥        30,655    $      253,347
   Other comprehensive income (loss) for the year, net of tax                                                (4,858)            (11,764)        (10,650)          (88,017)
   Total comprehensive income for the year                                                              ¥    24,064 ¥            18,367 ¥        20,005    $      165,330

The accompanying notes to consolidated financial statements are an integral part of these statements.




                                                                                                                                                                               33
     C      ONSOLIDATED STATEMENTS OF CASH FLOWS


     Ricoh Company, Ltd. and Consolidated Subsidiaries                                                                                                                Thousands of
     For the Years Ended March 31, 1997, 1998 and 1999                                                                           Millions of yen                       U.S. dollars
                                                                                                                 1997                 1998             1999              1999
     Cash Flows from Operating Activities:
        Net income                                                                                           ¥    28,922     ¥         30,131      ¥    30,655    $     253,347
        Adjustments to reconcile net income to net cash
          provided by operating activities—
             Depreciation and amortization                                                                        51,000               61,971           67,456          557,488
             Equity in earnings of affiliates, net of dividends received                                          (3,297)              (2,300)          (2,936)         (24,265)
             Estimated retirement allowances, net                                                                  6,244                  278            7,198           59,488
             Deferred income taxes                                                                                (6,808)              (1,898)          (3,497)         (28,901)
             Loss on disposal and sales of plant and equipment                                                     1,615                1,432            2,285           18,884
             Impairment loss of goodwill                                                                           6,510                5,037               —                —
             Changes in assets and liabilities, net of effects from acquisition—
              Decrease (increase) in trade receivables                                                             11,754              (8,168)           5,818           48,083
              Decrease (increase) in inventories                                                                  (10,210)            (15,387)          22,038          182,132
              Decrease (increase) in finance receivables                                                          (15,880)            (14,025)          16,921          139,843
              (Decrease) increase in trade payables                                                                 2,441              10,479          (29,961)        (247,612)
              (Decrease) increase in accrued income taxes and
                 accrued expenses and other                                                                       14,518              (18,213)         (14,433)        (119,281)
             Other, net                                                                                           (1,175)              (1,944)           5,164           42,678
               Net cash provided by operating activities                                                          85,634               47,393          106,708          881,884
     Cash Flows from Investing Activities:
        Proceeds from sales of plant and equipment                                                                    234                 866              486            4,017
        Expenditures for plant and equipment                                                                      (78,302)            (93,657)         (68,990)        (570,165)
        Payments for purchases of available-for-sale securities                                                   (41,300)            (23,059)         (60,883)        (503,165)
        Proceeds from sales of available-for-sale securities                                                       29,502              49,240           54,777          452,702
        (Increase) decrease in investments in and advances to affiliates                                           (3,989)              3,676           (2,258)         (18,661)
        Decrease (increase) in time deposits                                                                      (23,834)             52,841            3,794           31,355
        (Increase) in cash deposits for assignment of debt securities                                                  —                   —           (25,376)        (209,719)
        Other, net                                                                                                  6,246               8,521            9,215           76,157
               Net cash used in investing activities                                                             (111,443)             (1,572)         (89,235)        (737,479)
     Cash Flows from Financing Activities:
        Proceeds from long-term indebtedness                                                                      88,658              30,110    129,816              1,072,859
        Repayment of long-term indebtedness                                                                      (79,388)           (101,062)  (128,917)            (1,065,430)
        (Decrease) increase in short-term borrowings, net                                                         24,301              62,177    (58,727)              (485,347)
        Proceeds from issuance of long-term debt securities                                                           —                   —      40,000                330,579
        Cash dividends paid                                                                                       (7,190)             (7,633)    (7,609)               (62,884)
              Net cash provided by (used in) financing activities                                                 26,381             (16,408)   (25,437)              (210,223)
     Effect of Exchange Rate Changes on Cash and Cash Equivalents                                                  3,046               1,557     (2,715)               (22,438)
     Net Increase (Decrease) in Cash and Cash Equivalents                                                          3,618              30,970    (10,679)               (88,256)
     Cash and Cash Equivalents at Beginning of Year                                                              106,746             110,364    141,334              1,168,049
     Cash and Cash Equivalents at End of Year                                                                    110,364 ¥           141,334 ¥ 130,655            $ 1,079,793
     Supplemental Disclosures of Cash Flow Information:
         Cash Paid during the Year for—
              Interest                                                                                            24,155     ¥         26,473      ¥    17,970    $     148,512
              Income taxes                                                                                        37,987               50,631           34,618          286,099
     The accompanying notes to consolidated financial statements are an integral part of these statements.




34
N       OTES TO CONSOLIDATED FINANCIAL STATEMENTS
Ricoh Company, Ltd. and Consolidated Subsidiaries



1. NATURE OF OPERATIONS
Ricoh Company, Ltd. (the “Company”), was established in 1936, and is                     Ricoh distributes its products primarily through domestic (Japanese) and
headquartered in Tokyo, Japan. The Company and significant subsidiaries             foreign sales subsidiaries. Overseas, Ricoh owns and distributes not only
(“Ricoh” as a consolidated group) is a worldwide supplier of office                 Ricoh brand products but also other brands, such as Gestetner and Savin.
automation equipment, including copiers, facsimile machines, data                        Ricoh manufactures its products primarily in 15 plants in Japan and
processing systems, printers, and related supplies. Ricoh is also well known for    eight plants overseas, which are located in the United States, United
its state-of-the-art electronic devices, photographic equipment and others.         Kingdom, France, and China.

2. SIGNIFICANT ACCOUNTING AND REPORTING POLICIES
The accompanying consolidated financial statements of the Company and its           (f) Plant and Equipment
consolidated subsidiaries have been prepared in conformity with accounting          Depreciation of plant and equipment is computed principally by using the
principles generally accepted in the United States of America, modified for         declining-balance method over the estimated useful lives. Most of the foreign
the accounting for stock splits (see 2 (m) below). Significant accounting and       subsidiaries have adopted the straight-line method for computing deprecia-
reporting policies are summarized below:                                            tion, which currently accounts for approximately 29% of the consolidated
                                                                                    depreciation expense.
(a) Principles of Consolidation
                                                                                         Effective rates of depreciation for the three years ended March 31, 1999
The consolidated financial statements include the accounts of Ricoh. Invest-
                                                                                    are summarized below:
ments in generally 20% to 50% owned companies are accounted for on the
equity basis. All significant intercompany balances and transactions have                                                    1997            1998           1999
been eliminated in consolidation.                                                   Buildings                                 7.7%           7.9%           8.0%
(b) Translation of Foreign Currency Accounts                                        Machinery and equipment                  36.2           36.8           38.3
Under the provisions of Statement of Financial Accounting Standards
(“SFAS”) No. 52, “Foreign Currency Translation,” assets and liabilities are             Certain leased buildings, machinery and equipment are accounted for as
translated at the exchange rates in effect at each fiscal year-end, and income      capital leases in conformity with SFAS No. 13, “Accounting for Leases.” The
and expenses are translated at the average rates of exchange prevailing             aggregate cost included in plant and equipment and related accumulated
during each fiscal year. The resulting translation adjustments are accumulat-       depreciation as of March 31, 1998 and 1999 were as follows:
ed as part of other comprehensive income (loss) included in shareholders’                                                                               Thousands of
investment.                                                                                                                     Millions of yen          U.S. dollars
                                                                                                                             1998             1999         1999
(c) Derivatives
Ricoh enters into foreign currency contracts and interest rate swap                 Aggregate cost                        ¥ 6,365        ¥ 6,958         $ 57,504
agreements to manage risk exposure. Gains and losses on hedges of existing          Accumulated depreciation                2,617          3,083           25,479
assets or liabilities are included in the carrying amounts of those assets or            The related future minimum lease payments and the present value of
liabilities and are ultimately recognized in income as part of those carrying       the net minimum lease payments as of March 31, 1999 were ¥5,784 million
amounts. Gains and losses related to qualifying hedges of firm commitments          ($47,802 thousand) and ¥4,083 million ($33,744 thousand), respectively.
and anticipated transactions are deferred and recognized in income, or as                Ordinary maintenance and repairs are charged to income as incurred.
adjustments of carrying amounts, when the hedged transaction occurs.                Major replacements and improvements are capitalized. When properties are
(d) Securities                                                                      retired or otherwise disposed of, the property and related accumulated depre-
Ricoh conforms with SFAS No.115, “Accounting for Certain Investments                ciation accounts are relieved of the applicable amounts, and any differences
in Debt and Equity Securities,” which requires certain investments in debt          are included in other income or expenses.
and equity securities to be classified as either held-to-maturity, trading, or
                                                                                    (g) Goodwill
available-for-sale securities. As of March 31, 1998 and 1999, a substantial         Ricoh has classified as goodwill the cost in excess of fair value of the net
part of Ricoh’s investments in debt and equity securities is classified to avail-   assets of major companies acquired in purchase transactions. Goodwill is
able-for-sale securities. Those classified as available-for-sale are reported at    being amortized on a straight-line method over the estimated periods
fair value with unrealized gains and losses, net of related taxes, excluded from    benefited, not to exceed 20 years.
earnings and reported in accumulated other comprehensive income (loss).
     The cost of the securities sold was computed based on the average cost of
                                                                                    (h) Pension and Retirement Allowances Plans
each security held at the time of sale.                                             Ricoh conforms with SFAS No. 87, “Employers’ Accounting for Pensions” in
(e) Inventories                                                                     accounting for pension and retirement allowances plans.
Inventories are stated at the lower of average cost or market. Inventory costs          In the year ended March 31, 1999, Ricoh adopted SFAS No. 132,
include raw materials, labor and manufacturing overheads.                           “Employers’ Disclosure about Pensions and Other Postretirement Benefits,”

                                                                                                                                                                        35
     which revised SFAS No. 87 for disclosures about pension and retirement                                                                                 Thousands of
     allowance plans. For comparative purposes, the related 1998 disclosures have                                                    Millions of yen         U.S. dollars
     been restated to conform with the 1999 presentation. The disclosures                                                    1997         1998       1999       1999
     required by SFAS No. 132 are presented in Note 10.                                Conversion of
                                                                                        convertible bonds                   ¥ 4,578 ¥ 41,348 ¥          58 $        480
     (i) Income Taxes                                                                  Capital lease obligations
     Ricoh conforms with SFAS No. 109, “Accounting for Income Taxes,” which             incurred                               364       1,760      1,446       11,950
     requires an asset and liability approach for financial accounting and reporting   Assets and liabilities of Ricoh
     for income taxes.                                                                  Elemex Corporation
          Income taxes are currently provided for undistributed earnings of foreign        Fair value of assets acquired         —           —     55,633 459,777
     subsidiaries and affiliates, except for those deemed to be permanent                  Liabilities assumed                   —           —     32,826 271,289
     investments.
     (j) Advertising                                                                       The following noncash transactions have been excluded from the consol-
     The costs of advertising are expensed as incurred.                                idated statements of cash flows:
     (k) Impairment Loss on Long-Lived Assets                                          (o) Use of Estimates
     Ricoh conforms with SFAS No. 121, “Accounting for the Impairment                  Management of the Company has made a number of estimates and
     of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of,” in             assumptions that affect the reported amounts of assets, liabilities, revenues
     accounting for impairment loss on long-lived assets and certain identifiable      and expenses, and the disclosure of contingent assets and liabilities, to
     intangibles. In performing the review for recoverability of long-lived assets     prepare these financial statements in conformity with generally accepted
     and certain identifiable intangibles, Ricoh estimates the future cash flows       accounting principles. Actual results could differ from those estimates.
     expected to result from the use of the asset and its eventual disposition. An
     impairment loss is recognized if the sum of the expected future cash flows        (p) Comprehensive Income
     (undiscounted and without interest charges) is less than the carrying amount      In the year ended March 31, 1999, Ricoh adopted SFAS No. 130, “Reporting
     of the asset. For purposes of such comparison, portions of unallocated excess     Comprehensive Income,” which establishes standards for reporting and
     of cost over net assets acquired were attributed to related long-lived assets     displaying comprehensive income and its components. The disclosures
     and identifiable intangible assets, based upon the relative fair values of such   required by SFAS No. 130 are presented in the consolidated statements
     assets at acquisition. Measurement of an impairment loss for long-lived assets    of shareholders’ investment and in Note 12. The consolidated financial
     and identifiable intangibles is based on the fair value of the asset.             statements previously presented have been reclassified to conform with the
                                                                                       provisions of SFAS No. 130.
     (l) Earnings Per Share
     Ricoh conforms with SFAS No. 128, “Earnings Per Share,” which establishes         (q) New Accounting Standards
     standards for computing and presenting earnings per share (EPS) and requires      In June 1998, the Financial Accounting Standards Board issued SFAS No.
     a dual presentation of basic and diluted EPS.                                     133, “Accounting for Derivative Instruments and Hedging Activities,” which
                                                                                       establishes accounting and reporting standards for derivative instruments. It
     (m) Accounting for Stock Splits                                                   requires an entity to recognize all derivatives as either assets or liabilities in
     The stock splits of common stock made at various times have been accounted        the Consolidated Balance Sheets and measure those instruments at fair value.
     for by transferring an amount equivalent to the par value of such stocks from     Adjustments in the fair value will impact shareholders’ investment through
     additional paid-in capital to common stock in the case of capitalization by       either net income or other comprehensive income, depending on whether
     resolution of the Board of Directors. However, no accounting recognition is       the derivative instruments qualify as hedges and, if so, the nature of the
     made for stock splits when common stock already includes a portion of the         hedging activity. SFAS No. 133 is effective for fiscal years beginning after
     proceeds from shares issued at a price in excess of par value (see Note 11).      June 15, 1999, however, the Proposed Statement of Financial Accounting
          In the United States, distributions of shares in comparable circumstances    Standards, “Accounting for Derivative Instruments and Hedging Activities—
     are required to be accounted for by transferring from retained earnings           Deferral of the Effective Date of FASB Statement No. 133,” was issued on
     amounts equal to the fair market value of the shares issued, and by increasing    May 20, 1999, to defer the effective date of SFAS No. 133 to fiscal years
     additional paid-in capital by the excess of the market value over par value of    beginning after June 15, 2000. Ricoh has not determined the effect on the
     the shares issued.                                                                consolidated financial statements.
                                                                                            In March 1998, the American Institute of Certified Public Accountants
     (n) Consolidated Statements of Cash Flows                                         issued Statement of Position 98-1 (“SOP 98-1”), “Accounting for the Costs
     Cash and cash equivalents include highly liquid investments with a maturity       of Computer Software Developed or Obtained for Internal Use.” Effective
     of three months or less at date of purchase.                                      April 1, 1999, it requires Ricoh to capitalize the costs of computer software
                                                                                       for internal use if certain criteria are met. Previously, Ricoh expensed all such
                                                                                       costs.



36
3. BASIS OF PRESENTING FINANCIAL STATEMENTS
The accounts of the Company and its domestic subsidiaries are maintained               The Company’s financial statements distributed to its shareholders in
in yen. The accompanying consolidated financial statements as of March 31,        Japan and filed with the Ministry of Finance in Japan are prepared in confor-
1999 and for the three years then ended have been presented in yen, and for       mity with Japanese accounting principles and accounting practices and are
the convenience of the reader the consolidated financial statements for fiscal    not consolidated. Such financial statements reported the following amounts
1999 have also been presented in U.S. dollars by arithmetically translating       for the three years ended March 31, 1999:
all yen amounts by using the exchange rate of ¥121 to US$1 in effect at
                                                                                                                                                     Thousands of
March 31, 1999.                                                                                                      Millions of yen                  U.S. dollars
     The books of the Company and its domestic subsidiaries are maintained                                  1997            1998             1999        1999
in conformity with Japanese accounting principles and accounting practices.
Foreign subsidiaries maintain their books in conformity with those of the         Net sales               ¥698,837       ¥752,631         ¥720,503 $5,954,570
countries of their domicile.                                                      Net income                19,816         22,505           18,977    156,835
     The accompanying financial statements are presented on a consolidated
basis and reflect certain adjustments, not recorded in the companies’ books,           The amount of retained earnings legally available for distribution (and
to present them in conformity with accounting principles generally accepted       for the requisite appropriation to legal reserve) is that recorded in the Com-
in the United States of America, modified for the accounting for stock splits     pany’s books and amounted to ¥168,077 million ($1,389,066 thousand) as of
(see Note 2(m)). The principal adjustments relate to accounting for the           March 31, 1999 (see Note 12).
bonds with detachable stock purchase warrants, translating bonds in foreign            Since 1978, the Company has translated its consolidated financial state-
currencies at the current exchange rates, accounting for certain investments      ments prepared in conformity with accounting principles generally accepted
in debt and equity securities, accounting for the impairment of long-lived        in the United States of America for filing with the Ministry of Finance in
assets and for long-lived assets to be disposed of, adjusting estimated retire-   Japan.
ment allowances and certain other accrued expenses, accounting for sales-
type leases and providing for the income tax effect of such adjustments and
other temporary differences.


4. FINANCE RECEIVABLES
Finance receivables as of March 31, 1998 and 1999 are comprised of lease              As of March 31, 1999, the minimum lease payments receivable due in
receivables and installment loans.                                                each of the next five years and thereafter are as follows:
     The Company’s products are leased to customers primarily through Ricoh
                                                                                                                                                     Thousands of
Leasing Company, Ltd., a major subsidiary. These leases are accounted for as      Years ending March 31                            Millions of yen    U.S. dollars
sales-type leases in conformity with SFAS No.13. Revenues from sales-type         2000                                                 ¥125,482      $1,037,041
leases are recognized at the inception of the lease.
                                                                                  2001                                                  101,786         841,207
     Information pertaining to Ricoh’s lease receivables as of March 31, 1998
and 1999 is as follows:                                                           2002                                                   72,541         599,512
                                                                                  2003                                                   45,857         378,983
                                                                 Thousands of     2004                                                   19,752         163,240
                                        Millions of yen           U.S. dollars    2005 and thereafter                                     3,768          31,141
                                   1998               1999           1999
Minimum lease                                                                     Total                                                ¥369,186      $3,051,124
 payments receivable            ¥ 407,461       ¥ 369,186       $ 3,051,124           Installment loans as of March 31, 1998 and 1999 are primarily comprised
Unearned income                   (41,253)        (39,454)         (326,066)      of housing loans and term loans aggregating ¥23,782 million and ¥33,240
Allowance for doubtful                                                            million ($274,711 thousand), respectively.
 receivables                      (10,508)        (12,588)        (104,033)
Net lease receivables           ¥ 355,700       ¥ 317,144       $2,621,025




                                                                                                                                                                     37
     5. SECURITIES
     Marketable securities and investment securities as of March 31, 1998 and                    The investment equity securities as of March 31, 1998 and 1999 primari-
     1999 consist of the following:                                                         ly relate to less than 20%-owned companies and are stated at cost.
                                                                                                 The current and noncurrent security types of available-for-sale securities,
                                                                        Thousands of        and the respective cost, gross unrealized holding gains, gross unrealized hold-
                                                Millions of yen          U.S. dollars       ing losses and fair value as of March 31, 1998 and 1999 are as follows:
                                            1998             1999          1999
     Marketable securities:
       Available-for-sale
        securities                         ¥86,487         ¥98,246      $811,950
     Investment securities:
       Available-for-sale
        securities                         ¥44,337         ¥39,799      $328,917
       Equity securities                     8,629           5,203        43,000
                                           ¥52,966         ¥45,002      $371,917

                                                                                                                  Millions of yen
                                                                                            1998                                                 1999
                                                                                Gross unreal- Gross unreal-                           Gross unreal- Gross unreal-
                                                                                ized holding ized holding        Fair                 ized holding ized holding        Fair
                                                                      Cost          gains        losses         value          Cost       gains        losses         value
     Current:
       Equity securities                                            ¥ 2,723 ¥           72 ¥         111      ¥ 2,684      ¥ 2,740     ¥      55       ¥ 385        ¥ 2,410
       Japanese and foreign
        governmental bond securities                                     997      83                  —          1,080        1,021           74           2           1,093
       Corporate debt securities                                      54,016   1,408                  15        55,409       26,825          236          —           27,061
       Bank debt securities                                            1,190       3                   3         1,190        2,837           —           38           2,799
       Other                                                          26,162      42                  80        26,124       64,988           —          105          64,883
                                                                    ¥ 85,088 ¥ 1,608 ¥               209      ¥ 86,487     ¥ 98,411    ¥     365       ¥ 530        ¥ 98,246
     Noncurrent:
       Equity securities                                            ¥ 13,269 ¥ 24,696 ¥              355      ¥ 37,610     ¥ 14,327    ¥18,107         ¥ 223        ¥ 32,211
       Corporate debt securities                                       6,890       —                 180         6,710        7,927         —            355           7,572
       Other                                                              16        1                 —             17           16         —             —               16
                                                                    ¥ 20,175 ¥ 24,697 ¥              535      ¥ 44,337     ¥ 22,270    ¥18,107         ¥ 578        ¥ 39,799


                                                                                                                                        Thousand of U.S. dollars
                                                                                                                                                 1999
                                                                                                                                      Gross unreal- Gross unreal-
                                                                                                                                      ized holding ized holding        Fair
                                                                                                                              Cost        gains         losses        value
     Current:
       Equity securities                                                                                                  $ 22,645 $ 454               $ 3,182 $ 19,917
       Japanese and foreign governmental bond securities                                                                      8,438     611                 16    9,033
       Corporate debt securities                                                                                            221,694   1,951                 — 223,645
       Bank debt securities                                                                                                  23,446      —                 314   23,132
       Other                                                                                                                537,091      —                 868 536,223
                                                                                                                          $ 813,314 $ 3,016            $4,380 $ 811,950
     Noncurrent:
       Equity securities                                                                                                  $ 118,405 $149,645           $1,843 $ 266,207
       Corporate debt securities                                                                                             65,512       —             2,934    62,578
       Other                                                                                                                    132       —                —        132
                                                                                                                          $ 184,049 $149,645           $4,777 $ 328,917
         Other includes money management funds of ¥2,111 million ($17,446 thousand) and ¥25,633 million ($211,843 thousand) as of March 31, 1998 and 1999,
     respectively, and investment trusts consisting of investments in marketable debt and equity securities.
38
    The contractual maturities of debt securities classified as available-for-sale as of March 31, 1999, regardless of their balance sheet classification, are as follows:
                                                                                                                                                            Thousands of
                                                                                                             Millions of yen                                 U.S. dollars
                                                                                                      Cost                     Fair value            Cost                   Fair value
Due within one year                                                                               ¥ 17,849                ¥ 17,843                $147,512              $147,462
Due after one year through five years                                                               57,719                  57,535                 477,016               475,496
Due after five years                                                                                28,046                  28,046                 231,785               231,785
                                                                                                  ¥103,614                ¥103,424                $856,313              $854,743
    Proceeds from the sale of available-for-sale securities were ¥29,502                 ended March 31, 1998 and 1999, respectively, while there was no significant
million, ¥49,240 million and ¥54,777 million ($452,702 thousand) for the                 realized gain for the year ended March 31, 1997.
years ended March 31, 1997, 1998 and 1999, respectively.                                      There were no significant realized losses on sale of available-for-sale
    The gross realized gains on sale of available-for-sale securities were               securities for the three years ended March 31, 1999.
¥2,969 million and ¥1,589 million ($13,132 thousand) for the years


6. INVESTMENTS IN AND ADVANCES TO AFFILIATES
The investments in and advances to affiliates primarily relate to 20% to                Financial Position
50% owned companies. Ricoh’s proportionate share of assets, revenues and                                                                                               Thousands of
income before income taxes of each of these companies is less than 20% of                                                                  Millions of yen              U.S. dollars
the corresponding consolidated amounts. Included in these companies is                                                                  1998               1999            1999
KITAKYUSHU COCA-COLA BOTTLING COMPANY, LIMITED, a                                       Assets—
34.1%-owned major affiliate. The common stock of this company is publicly                 Current assets                            ¥ 152,821         ¥108,158         $ 893,868
traded. The carrying value of the investment in this company was equal                    Other assets                                 87,799           71,751            592,983
to its underlying book value and amounted to ¥30,230 million ($249,835                                                              ¥ 240,620         ¥179,909         $1,486,851
thousand) as of March 31, 1999. The quoted market value of this company                 Liabilities and shareholders’
was ¥82,115 million ($678,636 thousand) as of March 31, 1999.                            investment—
     Subsequent to March 31, 1999, in May 1999 KITAKYUSHU COCA-                           Current liabilities                       ¥ 59,300          ¥ 34,045        $ 281,364
COLA BOTTLING COMPANY, LIMITED, made a special allotment                                  Short-term borrowings and
offering of new securities to a third party. Also, it announced a merger with               long-term indebtedness                     23,239            7,530             62,231
SANYO COCA-COLA BOTTLING CO., LTD., as of July 1, 1999. As a                              Other liabilities                            14,495            6,727             55,595
result of these events, the Company’s ownership interest in this company                  Shareholders’ investment                    143,586          131,607          1,087,661
would decrease to approximately 23% while the underlying equity value                                                               ¥ 240,620         ¥179,909         $1,486,851
would not be adversely affected.
     Ricoh Elemex Corporation, a 44.8%-owned major affiliate of which                   Operations
common stock is publicly traded, became a consolidated subsidiary as a result                                                                                         Thousands of
of it being merged with a consolidated subsidiary and the purchase of a                                                        Millions of yen                         U.S. dollars
certain ownership interest. In the accompanying consolidated financial state-                                 1997                    1998              1999             1999
ments, the investment in Ricoh Elemex Corporation through September 30,                 Sales           ¥ 281,170                 ¥ 288,816          ¥240,422        $ 1,986,959
1998, was accounted for on the equity basis, while the post-acquisition peri-           Costs and
od for the six months ended March 31, 1999, was consolidated. The effects                expenses        268,989                   275,058            228,547         1,888,818
on the consolidated results of operations for the three years ended March 31,           Net income      ¥ 12,181                  ¥ 13,758           ¥ 11,875        $ 98,141
1999, if Ricoh Elemex Corporation had been consolidated at the beginning
of each year, were not significant.
     The underlying book value of the other 20%- to 50%-owned companies
is approximately the same as their carrying value.
     Summarized unaudited financial information for all affiliates as of March
31, 1998 and 1999 and for the three years ended March 31, 1999 is as
follows:

                                                                                                                                                                                         39
         The significant transactions of Ricoh with these affiliates for the three                                                                             Thousands of
     years ended March 31, 1999, and the related account balances at March 31,                                                         Millions of yen          U.S. dollars
     1998 and 1999 are summarized as follows:                                                                                         1998           1999         1999
                                                                                            Account balances—
                                                                        Thousands of          Receivables                            ¥17,571       ¥10,861        $89,760
                                            Millions of yen              U.S. dollars         Payables                                19,574         2,171         17,942
                                   1997            1998        1999         1999
     Transactions—
       Sales                      ¥24,112        ¥38,335      ¥32,057    $264,934               As of March 31, 1999, consolidated retained earnings included
       Purchases                   47,698         60,083       34,992     289,190           undistributed earnings of 20% to 50% owned companies accounted for by the
       Dividend income                770          1,767        1,168       9,653           equity method in the amount of ¥30,284 million ($250,281 thousand).


     7. INCOME TAXES
     Income before income taxes, minority interests and equity in earnings of affiliates and provision for income taxes for the three years ended March 31, 1999 are as
     follows:
                                                                                                                                                             Thousands of
                                                                                                                   Millions of yen                            U.S. dollars
                                                                                                       1997              1998               1999                 1999
     Income before income taxes, minority interests and equity in earnings of affiliates—
       Domestic                                                                                      ¥ 68,108            ¥58,144          ¥35,873             $296,471
       Foreign                                                                                         (1,203)            10,284           17,181              141,992
                                                                                                     ¥ 66,905            ¥68,428          ¥53,054             $438,463
     Provision for income taxes—
       Current:
          Domestic                                                                                   ¥ 41,831            ¥34,533          ¥20,389             $168,504
          Foreign                                                                                       4,841              7,575            7,663               63,331
                                                                                                       46,672             42,108           28,052              231,835
       Deferred:
         Domestic                                                                                      (9,443)            (2,153)          (4,297)             (35,512)
         Foreign                                                                                        2,635                255              800                6,611
                                                                                                       (6,808)            (1,898)          (3,497)             (28,901)
     Consolidated provision for income taxes                                                         ¥ 39,864            ¥40,210          ¥24,555             $202,934

         Total income taxes are allocated as follows:
                                                                                                                                                            Thousands of
                                                                                                                   Millions of yen                           U.S. dollars
                                                                                                      1997                1998             1999                1999
 Provision for income taxes                                                                         ¥ 39,864            ¥40,210          ¥24,555             $202,934
 Shareholders’ investment:
   Net unrealized holding gains on
      available-for-sale securities                                                                  (10,935)            (7,794)          (3,442)             (28,446)
   Pension liability adjustment                                                                       (2,583)            (3,971)          (4,052)             (33,488)
   Translation adjustments                                                                               727               (242)          (3,467)             (28,653)
                                                                                                    ¥ 27,073            ¥28,203          ¥13,594             $112,347




40
    Reconciliations of the normal tax rates in Japan with the effective tax             Permanently nondeductible expenses include directors’ bonuses and
rates for the three years ended March 31, 1999, are as follows:                    entertainment expenses. Permanently nontaxable income includes dividends
                                                     1997         1998   1999      received and exported technology fees. Effective April 1, 1999, the normal
Normal tax rate                                      51%          51%    47%       statutory tax rate was reduced to approximately 42% and such rate has been
Permanently nondeductible expenses,                                                used in calculating the future expected tax effects of temporary differences.
   net of nontaxable income                           3            5      (2)           The tax effect of temporary differences giving rise to the consolidated
Tax benefits not recognized on operating                                           deferred income tax assets and liabilities at March 31,1998 and 1999 are as
   losses of certain consolidated subsidiaries        5            0       0       follows:
Decrease in the beginning-of-the-year
   balance of the valuation allowance
   for deferred tax assets                           (3)          (3)    (10)
Nondeductible goodwill impairment loss                5            3      —
Effect of change in enacted tax rate                 —             2       8
Other, net                                           (1)           1       3
Effective tax rate                                   60%          59%     46%

                                                                                                                                                     Thousands of
                                                                                                                       Millions of yen                U.S. dollars
                                                                                                                    1998                     1999        1999
Assets:
  Intercompany profits and inventory write-downs                                                                 ¥ 20,300              ¥ 17,969       $ 148,504
  Accrued expenses                                                                                                  6,747                 5,626          46,496
  Deferred charges                                                                                                  4,526                 4,008          33,124
  Estimated retirement allowances                                                                                  20,669                23,888         197,421
  Net operating losses carryforward                                                                                14,107                10,130          83,719
  Other                                                                                                             8,363                11,790          97,438
                                                                                                                   74,712                73,411         606,702
   Less—Valuation allowance                                                                                       (13,757)               (8,271)        (68,355)
                                                                                                                 ¥ 60,955              ¥ 65,140       $ 538,347
Liabilities:
  Sales-type leases                                                                                              ¥ (12,997)            ¥(10,511)      $ (86,868)
  Undistributed earnings of foreign subsidiaries and affiliates                                                     (5,949)              (6,023)        (49,777)
  Net unrealized holding gains on available-for-sale securities                                                    (12,139)              (7,511)        (62,074)
  Other                                                                                                             (7,225)              (2,129)        (17,595)
                                                                                                                 ¥ (38,310)            ¥(26,174)      $(216,314)
Net deferred tax assets                                                                                          ¥ 22,645              ¥ 38,966       $ 322,033

     Net deferred tax assets as of March 31, 1998 and 1999 are included in the consolidated balance sheets as follows:
                                                                                                                                                     Thousands of
                                                                                                                         Millions of yen              U.S. dollars
                                                                                                                  1998                     1999         1999
Deferred income taxes (Current Assets)                                                                          ¥ 34,918               ¥ 30,347       $ 250,802
Lease deposits and other                                                                                          17,129                 24,954         206,231
Accrued expenses and other                                                                                        (3,110)                (1,504)        (12,430)
Deferred income taxes (Long-Term Liabilities)                                                                    (26,292)               (14,831)       (122,570)
                                                                                                                ¥ 22,645               ¥ 38,966       $ 322,033

    The net changes in the total valuation allowance for the three years end-      to the amount that is expected to be realized. The valuation allowance princi-
ed March 31, 1999 were decreases of ¥8,655 million, ¥2,297 million and             pally relates to the tax effects of net operating losses recorded by certain sub-
¥5,486 million ($45,339 thousand), respectively.                                   sidiaries.
    The valuation allowance was established to reduce the deferred tax assets

                                                                                                                                                                       41
         At March 31, 1999, certain subsidiaries had net operating losses carried      Approximately ¥14,283 million ($118,041 thousand) of the operating losses
     forward for income tax purposes of approximately ¥31,927 million ($263,860        expire within a five-year period while the remainder principally have an
     thousand) which were available to reduce future income taxes, if any.             indefinite carryforward period.


     8. SHORT-TERM BORROWINGS AND TRADE NOTES RECEIVABLE DISCOUNTED WITH BANKS
     Short-term borrowings as of March 31, 1998 and 1999 consist of the following:
                                                                                            Weighted average                                          Thousands of
                                                                                              interest rate              Millions of yen               U.S. dollars
                                                                                           1998         1999         1998                   1999           1999
     Borrowings, principally from banks                                                        2.5%      2.5%      ¥ 209,871        ¥ 178,072        $ 1,471,670
     Commercial paper                                                                          1.9       0.7          68,243           36,218            299,322
                                                                                                                   ¥ 278,114        ¥ 214,290        $ 1,770,992

          The Company and certain of its domestic subsidiaries regularly discount      trade notes receivable discounted and/or long-term loans; however, there are
     trade notes receivable on a full recourse basis with banks. These trade notes     no formal compensating balance agreements with any banks. The weighted
     receivable discounted are contingent liabilities. The weighted average inter-     average interest rate on these time deposits was 0.2% as of March 31, 1999.
     est rates on these trade notes receivable discounted were 1.5% as of March            The Company and certain of its subsidiaries had unused lines of credit
     31, 1998 and 1999.                                                                amounting to ¥360,161 million ($2,976,537 thousand) of which ¥218,125
          As is the customary practice in Japan, certain subsidiaries have substan-    million ($1,802,686 thousand) related to commercial paper and medium-
     tial time deposits with banks from which they have short-term borrowings,         term note programs at prevailing interest rates.

     9. LONG-TERM INDEBTEDNESS
     Long-term indebtedness as of March 31, 1998 and 1999 consists of the following:
                                                                                                 Conversion                                              Thousands of
                                                                                                    price                 Millions of yen                 U.S. dollars
                                                                                                 (Per share)          1998                1999              1999
     Convertible bonds—
       1.8%, payable in yen, due March 2002                                                        ¥ 824.70        ¥ 1,490           ¥       1,485   $       12,273
       1.5%, payable in yen, due March 2002                                                           993.00         33,434                 33,421          276,206
       0.35%, payable in yen, due March 2003                                                        1,210.00         30,254                 30,214          249,702
       0.4%, payable in yen, due September 2002 issued by a consolidated subsidiary                 2,296.00         10,000                 10,000           82,645
       0.375%, payable in yen, due March 2001 issued by a consolidated subsidiary                   1,374.00             —                   4,920           40,661
       Total convertible bonds                                                                                       75,178                 80,040          661,487
     Bonds—
       7.0%, straight bonds, payable in yen, due January 2000                                                         50,164                50,072         413,818
       3.75%, straight bonds, payable in yen, due October 1999                                                        15,000                15,000         123,967
       2.075%, straight bonds, payable in yen, due April 2005                                                             —                 40,000         330,579
       2.9%, straight bonds, payable in yen, due August 2001                                                          10,000                10,000          82,645
       Medium-term notes, 0.13%–6.15%, due through 2008                                                               29,355                19,827         163,859
       Total bonds                                                                                                   104,519               134,899       1,114,868
     Unsecured loans—
       Banks and insurance companies, 0.4%–16.0%, due through 2012                                                   195,470               209,878       1,734,529
     Secured loans—
       Banks, insurance companies, and one financial institution, 0%–3.25%, due through 2020                          17,881            10,106            83,521
     Capital lease obligations (see Note 2(f))                                                                         3,784             4,083            33,744
       Total                                                                                                         396,832           439,006         3,628,149
     Less—Current maturities included in current liabilities                                                        (101,296)          (94,426)         (780,380)
                                                                                                                   ¥ 295,536         ¥ 344,580       $ 2,847,769




42
     Secured loans are collateralized by land, buildings and lease receivables     requested to submit such proposals for approval. In addition, as is customary
with a book value of ¥21,634 million ($178,793 thousand) as of March 31,           in Japan, substantially all of the bank borrowings are subject to general agree-
1999.                                                                              ments with each bank which provide, among other things, that the banks
     The convertible bonds are convertible into common stock at the option         may request additional security for these loans if there is reasonable and
of the holders, currently at applicable conversion prices per share as listed in   probable cause and may treat any security furnished to the banks as well
the above table. These conversion prices are subject to adjustment in certain      as cash deposited as security for all present and future indebtedness. The
events including subsequent stock splits and shares subsequently issued at less    Company has never been requested to submit such additional security.
than market value.                                                                      In March and September 1995 and March 1999, the Company entered
     The convertible bonds and some straight bonds outstanding as of March         into agreements with the banks under which it assigned to the banks
31, 1999 are redeemable at the option of the Company at prices ranging from        outstanding obligations to make payment of principal and the 7% interest on
103% to 100% of the principal amount under certain conditions as provided          the straight bond aggregating to ¥50,000 million and made cash deposits
in the applicable agreements.                                                      (earning interest of 1.5%) with the banks to fulfill such obligations.
     Convertible bonds and the other bonds are subject to certain covenants        These transactions do not conform with the requirements of SFAS No. 76,
such as restrictions on dividends, earnings and certain additional secured in-     “Extinguishment of Debt,”and SFAS No. 125 “Accounting for Transfers and
debtedness, as defined in the agreements. The Company presently estimates          Servicing of Financial Assets and Extinguishments of Liabilities,” therefore,
that none of such covenants would be applicable to the outstanding bonds.          the applicable obligations and cash deposits (time deposits) are reflected in
     On April 26, 1999, the conversion price of the 0.375% convertible             the accompanying balance sheets. The cash deposits are presented as lease
bonds payable in yen, due March 2001 and issued by a consolidated                  deposits and other as of March 31, 1998, and as cash deposits for assignment
subsidiary, was changed from ¥1,374.00 to ¥1,100.00.                               of debt securities as of March 31, 1999.
     If all convertible bonds of the Company were converted as of March 31,             The aggregate annual maturities of long-term indebtedness subsequent to
1999, 60,428 thousand shares of common stock would be issuable.                    March 31, 2000 are as follows:
     On June 10, 1999, Ricoh Leasing Company, Ltd., a major subsidiary,                                                                              Thousands of
issued 0.9% and 1.17% unsecured straight bonds of ¥5,000 million ($41,322          Years ending March 31                          Millions of yen     U.S. dollars
thousand) and ¥10,000 million ($82,645 thousand) payable in yen, due June          2001                                          ¥  64,041          $ 529,264
10, 2003 and 2004, respectively.                                                   2002                                            118,821             981,992
     Certain loan agreements provide, among other things, that the lender          2003                                             51,654             426,893
may request the Company to submit proposals for appropriations of earnings         2004                                             26,206             216,579
                                                                                   2005 and thereafter                              83,858             693,041
(including payment of dividends) to the lender for its review and approval
prior to presentation to the shareholders. The Company has never been              Total                                         ¥ 344,580          $2,847,769


10. PENSION AND RETIREMENT ALLOWANCES PLANS
The Company and certain of its subsidiaries have various trusteed                       The amounts of lump-sum or pension payments under the plans are
noncontributory employees pension fund (“EPF”) plans covering substan-             generally determined on the basis of length of service and remuneration at
tially all of their employees. Under the plans, employees are entitled to          the time of termination.
lump-sum payments at the time of termination or retirement, or to pension               It is the Company’s policy to fund amounts required to maintain
payments. Under the terms of the domestic EPF plan, the Government                 sufficient plan assets to provide for accrued benefits based on a certain
welfare pension insurance benefit is substituted and commingled with the           percentage of wage and salary costs. The plan assets consist principally of
primary benefit provided by the plan.                                              interest-bearing bonds and listed equity securities.




                                                                                                                                                                      43
         The changes in the benefit obligation and plan assets of the defined benefit plans for the two years ended March 31, 1999 are as follows:
                                                                                                                                                             Thousands of
                                                                                                                               Millions of yen                U.S. dollars
                                                                                                                        1998                      1999          1999
     Change in benefit obligation:
       Benefit obligation at beginning of year                                                                       ¥ 249,894              ¥284,825         $2,353,925
       Service cost                                                                                                     10,003                11,234             92,843
       Interest cost                                                                                                    10,893                11,615             95,992
       Plan participants’ contribution                                                                                   1,500                 1,522             12,578
       Actuarial losses                                                                                                 17,931                13,775            113,843
       Benefits paid                                                                                                    (8,280)               (6,772)           (55,967)
       Foreign exchange impact                                                                                           2,884                (3,654)           (30,198)
       Benefit obligation at end of year                                                                             ¥ 284,825              ¥312,545         $2,583,016

     Change in plan assets:
       Fair value of plan assets at beginning of year                                                                ¥ 180,534              ¥202,005         $1,669,463
       Actual return on plan assets                                                                                     11,170                 7,754             64,083
       Employer contribution                                                                                            14,178                12,831            106,041
       Plan participants’ contribution                                                                                   1,500                 1,522             12,578
       Benefits paid                                                                                                    (8,280)               (6,772)           (55,967)
       Foreign exchange impact                                                                                           2,903                (3,661)           (30,256)
       Fair value of plan assets at end of year                                                                      ¥ 202,005              ¥213,679         $1,765,942

     Funded status                                                                                                   ¥ (82,820)             ¥ (98,866)       $ (817,074)
     Unrecognized actuarial loss                                                                                        85,875                 96,597           798,322
     Unrecognized net asset at transition, net of amortization                                                          (4,730)                (4,256)          (35,174)
       Net amount recognized                                                                                         ¥ (1,675)              ¥ (6,525)        $ (53,926)

     Amounts recognized in the balance sheets consist of:
      Prepaid benefit cost                                                                                           ¥ 6,217                ¥ 2,558          $  21,140
      Accrued benefit liability                                                                                       (35,193)               (44,945)         (371,446)
      Accumulated other comprehensive income (loss), gross of tax                                                      27,301                 35,862           296,380
      Net amount recognized                                                                                          ¥ (1,675)              ¥ (6,525)        $ (53,926)


                                                                                                                        1998                       1999
     Discount rate                                                                                                3.75% – 7.75%           3.5% – 7.25%
     Rate of increase in compensation levels                                                                       3.7% – 5.5%            3.7% – 5.5%
     Expected long-term rate of return on plan assets                                                             3.75% – 8.5%            3.5% – 9.0%
         The discount rate, rate of increase in compensation and expected long-term rate of return on plan assets of domestic pension plans are 3.75%, 3.7% and
     3.75%, respectively, for the year ended March 31, 1998, and 3.5%, 3.7% and 3.5%, respectively, for the year ended March 31, 1999. The other data shown
     above are those of foreign pension plans.
         The net periodic benefit costs of the defined benefit plans for the three years ended March 31, 1999 consisted of the following components:
                                                                                                                                                             Thousands of
                                                                                                                  Millions of yen                             U.S. dollars
                                                                                                     1997               1998                       1999         1999
     Service costs                                                                                ¥ 8,409            ¥ 10,003                    ¥ 11,234    $  92,843
     Interest costs                                                                                 10,198             10,893                      11,615       95,992
     Expected return on plan assets                                                                 (7,371)            (7,876)                     (8,651)     (71,496)
     Net amortization                                                                                1,968              2,411                       3,210       26,529
       Net periodic benefit cost                                                                  ¥ 13,204           ¥ 15,431                    ¥ 17,408    $ 143,868


44
     The amounts paid by plan participants for the year ended March 31,            calculation and represents a net loss not yet recognized as net periodic
1997 and 1998 were reclassified as plan participants’ contribution in the year     pension cost. Since there is no unrecognized prior service cost, this excess is
ended March 31, 1999, and excluded from net periodic benefit costs for the         reported in an accumulated other comprehensive income (loss), at net of tax
years then ended in order to conform with SFAS 132.                                benefits. The net changes in pension liability adjustment for the years ended
     The projected benefit obligation, accumulated benefit obligation, and         March 31, 1998 and 1999 were both increases of ¥5,746 million and ¥4,509
fair value of plan assets for the pension plan with accumulated benefit obliga-    million ($37,265 thousand), respectively.
tion in excess of plan assets were ¥253,808 million, ¥202,971 million and               Employees of certain subsidiaries not covered by the EPF plan and direc-
¥170,987 million, respectively, as of March 31, 1998 and ¥281,012 million          tors of Ricoh are primarily covered by unfunded retirement allowances plans.
($2,322,413 thousand), ¥226,871 million ($1,874,967 thousand) and                       Under the unfunded plans described in the preceding paragraph, the
¥182,280 million ($1,506,446 thousand), respectively, as of March 31, 1999.        amounts required if all employees and directors had voluntarily terminated
     In accordance with the provisions of SFAS No. 87, the Company was             their employment at each balance sheet date are fully accrued. The payments
required to record an additional minimum pension liability at March 31,            to directors are subject to shareholders’ approval. The total provisions
1998 and 1999. This amount represents the excess of the accumulated                charged to income under these plans in fiscal 1997, 1998 and 1999 were
benefit obligations over the fair value of plan assets. This excess is primarily   ¥4,498 million, ¥2,942 million and ¥6,084 million ($50,281 thousand),
attributable to a substantial reduction in the discount rate used in pension       respectively.

11. SHAREHOLDERS’ INVESTMENT
The Japanese Commercial Code provides that an amount equivalent to                 the declaration of a cash dividend on the common stock totaling ¥3,804 mil-
at least 10% of cash dividends paid and other cash outlays resulting from          lion ($31,438 thousand), which will be paid to shareholders of record as of
appropriation of retained earnings with respect to each fiscal or interim six-     March 31, 1999, and the related appropriation of retained earnings total-
month period be appropriated as a legal reserve until such reserve equals          ing ¥395 million ($3,264 thousand) by a transfer to the legal reserve. In
25% of the stated capital. This reserve and additional paid-in capital are not     accordance with the Japanese Commercial Code, the declaration of this divi-
available for dividends but may be used to reduce a deficit by resolution of       dend and the related transfer of retained earnings to the legal reserve have
the shareholders or may be capitalized by resolution of the Board of               not been reflected in the consolidated financial statements as of March 31,
Directors.                                                                         1999.
     Semiannual cash dividends are approved by the shareholders after the              The Japanese Commercial Code provides that at least one-half of the
end of each fiscal period or are declared by the Board of Directors after the      proceeds from shares issued at a price in excess of par value be included in
end of each interim six-month period. Such dividends are payable to share-         common stock. In conformity therewith, the Company has divided the
holders of record at the end of each such fiscal or interim six-month period.      principal amount of bonds converted into common stock equally between
At the general meeting held on June 29, 1999, the shareholders approved            common stock and additional paid-in capital.




                                                                                                                                                                     45
     12. OTHER COMPREHENSIVE INCOME (LOSS)
     Tax effects allocated to each component of other comprehensive income (loss) are as follows:

                                                                                                                          Millions of yen
                                                                                                        Before-tax               Tax                 Net-of-tax
                                                                                                         amount                expense                amount
     1997:
       Foreign currency translation adjustments                                                     ¥   9,007             ¥       (727)          ¥        8,280
       Unrealized holding gains arising during the year                                               (21,600)                  10,935                  (10,665)
       Minimum pension liability adjustment                                                            (5,056)                   2,583                   (2,473)
       Other comprehensive income (loss)                                                            ¥ (17,649)            ¥     12,791           ¥       (4,858)

     1998:
       Foreign currency translation adjustments                                                     ¥        (295)        ¥         242          ¥           (53)
       Unrealized gain on securities:
         Unrealized holding gains arising during the year                                             (10,790)                   6,275                   (4,515)
         Less—Reclassification adjustment for gains realized in net income                             (2,969)                   1,519                   (1,450)
       Net unrealized gains                                                                           (13,759)                   7,794                   (5,965)
       Minimum pension liability adjustment                                                            (9,717)                   3,971                   (5,746)
       Other comprehensive income (loss)                                                            ¥ (23,771)            ¥     12,007           ¥      (11,764)

     1999:
       Foreign currency translation adjustments                                                     ¥     (5,684)         ¥      3,467           ¥       (2,217)
       Unrealized gain on securities:
         Unrealized holding gains arising during the year                                              (5,777)                  2,688               (3,089)
         Less—Reclassification adjustment for gains realized in net income                             (1,589)                    754                 (835)
       Net unrealized gains                                                                            (7,366)                  3,442               (3,924)
       Minimum pension liability adjustment                                                            (8,561)                  4,052               (4,509)
       Other comprehensive income (loss)                                                            ¥ (21,611)            ¥    10,961            ¥ (10,650)

                                                                                                                     Thousands of U.S. dollars
     1999:
       Foreign currency translation adjustments                                                     $ (46,976)            $    28,654            $ (18,322)
       Unrealized gain on securities:
         Unrealized holding gains arising during the year                                              (47,744)                22,215              (25,529)
         Less—Reclassification adjustment for gains realized in net income                             (13,132)                 6,231               (6,901)
       Net unrealized gains                                                                            (60,876)                28,446              (32,430)
       Minimum pension liability adjustment                                                            (70,752)                33,487              (37,265)
       Other comprehensive income (loss)                                                            $ (178,604)           $    90,587            $ (88,017)




46
   Change in accumulated other comprehensive income (loss) is as follows:

                                                                                                            Millions of yen
                                                                            Foreign currency                                                Accumulated other
                                                                               translation     Unrealized gains on    Minimum pension        comprehensive
                                                                              adjustments          securities        liability adjustment     income (loss)
1997:
  Beginning balance                                                          ¥    (18,417)       ¥     29,498          ¥       (6,117)        ¥      4,964
  Change during the year                                                            8,280             (10,665)                 (2,473)              (4,858)
  Ending balance                                                             ¥    (10,137)       ¥     18,833          ¥       (8,590)        ¥        106

1998:
  Beginning balance                                                          ¥    (10,137)       ¥     18,833          ¥       (8,590)        ¥        106
  Change during the year                                                              (53)             (5,965)                 (5,746)             (11,764)
  Ending balance                                                             ¥    (10,190)       ¥     12,868          ¥      (14,336)        ¥    (11,658)

1999:
  Beginning balance                                                          ¥ (10,190)          ¥     12,868          ¥ (14,336)             ¥ (11,658)
  Change during the year                                                        (2,217)                (3,924)            (4,509)               (10,650)
  Ending balance                                                             ¥ (12,407)          ¥      8,944          ¥ (18,845)             ¥ (22,308)

                                                                                                       Thousands of U.S. dollars
1999:
  Beginning balance                                                          $ (84,215)          $ 106,347             $ (118,479)            $ (96,347)
  Change during the year                                                        (18,322)           (32,430)               (37,265)               (88,017)
  Ending balance                                                             $ (102,537)         $ 73,917              $ (155,744)            $ (184,364)




                                                                                                                                                                47
     13. PER SHARE DATA
     Dividends per share shown in the consolidated statements of income have                The following table sets forth the computation of basic and diluted
     been presented on an accrual basis and include, in each fiscal year ended          earnings per share showing the reconciliation of the numerators and
     March 31, dividends approved or to be approved after such March 31, but            denominators used for the computation.
     applicable to the year then ended.
                                                                                                               Thousands of shares
                                                                                                    1997               1998              1999
     Average common shares outstanding                                                             655,010            669,959          691,592

     Effect of dilutive securities:
        Convertible bonds—
          1.9%, payable in yen, due March 1998                                                      23,629                 —                —
          1.8%, payable in yen, due March 2002                                                       2,603              1,921            1,802
          1.5%, payable in yen, due March 2002                                                      39,354             34,662           33,658
          0.35%, payable in yen, due March 2003                                                     31,405             27,810           24,974
     Diluted common shares outstanding                                                             752,001            734,352          752,026
                                                                                                                                                       Thousands of
                                                                                                                 Millions of yen                        U.S. dollars
                                                                                                    1997               1998              1999             1999
     Net income applicable to common shareholders                                                ¥ 28,922           ¥ 30,131          ¥ 30,655         $ 253,347

     Effect of dilutive securities:
        Convertible bonds—
          1.9%, payable in yen, due March 1998                                                        286                 —                 —                 —
          1.8%, payable in yen, due March 2002                                                         19                 14                15               124
          1.5%, payable in yen, due March 2002                                                        292                258               272             2,248
          0.35%, payable in yen, due March 2003                                                       130                109               110               909
          Other                                                                                      (356)              (145)             (266)           (2,198)
     Diluted net income                                                                          ¥ 29,293           ¥ 30,367          ¥ 30,786         $ 254,430

                                                                                                                      Yen                               U.S. dollars
                                                                                                  1997                1998             1999               1999
     Earnings per share:
       Basic                                                                                     ¥ 44.16            ¥ 44.97           ¥ 44.33          $       0.37
       Diluted                                                                                     38.95              41.35             40.94                  0.34


     14. DERIVATIVE FINANCIAL INSTRUMENTS
     The Company and certain of its subsidiaries enter into various financial           and 1999, they had ¥412,020 million and ¥351,893 million ($2,908,207
     instrument contracts in the normal course of business and in connection            thousand) of contractual amounts under interest rate swap agreements.
     with the management of its assets and liabilities.                                 Interest rate swap transactions generally involve the exchange of floating
          The Company and certain of its subsidiaries enter into foreign currency       rate for fixed rate interest payment obligations without an exchange of
     contracts to hedge assets and liabilities denominated in foreign currencies.       underlying principal amounts. The differentials to be paid or received under
     The contracted amounts outstanding as of March 31, 1998 and 1999 were              the interest rate swap agreements are accrued.
     ¥134,023 million and ¥105,022 million ($867,950 thousand), respectively.                The counterparties to the above financial instrument contracts are
     Gains or losses on those contracts used to hedge existing assets and liabilities   major financial institutions and, therefore, the Company and certain of its
     are recognized in income currently.                                                subsidiaries are exposed to credit risk in the event of nonperformance by
          In connection with short-term borrowings and long-term indebtedness,          counterparties. However, the Company does not anticipate nonperformance
     the Company and certain of its subsidiaries have used interest rate swap           by them.
     agreements as a means of managing its interest exposure; at March 31, 1998

48
15. COMMITMENTS AND CONTINGENT LIABILITIES
At March 31, 1999, Ricoh had outstanding contractual commitments for                     fiscal 1999, under operating lease agreements for office space and machinery
acquisition or construction of plant, equipment and other assets aggregating             and equipment, which are primarily cancelable and renewable.
¥4,962 million ($41,008 thousand).                                                            At March 31, 1999, the Company and certain of its subsidiaries were
     Ricoh is contingently liable for discounted trade notes receivable on a             parties to litigation involving routine matters, such as patent rights. In the
full recourse basis with banks of ¥149 million ($1,231 thousand) as of March             opinion of management, the ultimate liability, if any, resulting from such liti-
31, 1999. As of March 31, 1999, Ricoh is also contingently liable as guaran-             gation will not materially affect the consolidated financial position or the
tor for employees’ housing loans of ¥1,640 million ($13,554 thousand).                   results of operations of Ricoh.
     Ricoh made rental payments totaling ¥37,930 million in fiscal 1997,
¥37,160 million in fiscal 1998, and ¥46,307 million ($382,702 thousand) in

 16. DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS
(a) Cash and cash equivalents, Time deposits, Trade receivables,                         (d) Long-term indebtedness
Short-term borrowings, Current maturities of long-term indebtedness,                     The fair value of each of the long-term indebtedness instruments is based
Trade payables and Accrued expenses                                                      on the quoted price in the most active market or the present value of future
The carrying amounts approximate fair values because of the short maturities             cash flows associated with each instrument discounted using the current
of these instruments.                                                                    borrowing rate for similar instruments of comparable maturity.
(b) Marketable securities and Investment securities                                      (e) Interest rate swap agreements
The fair value of the marketable securities and investment securities is                 The fair value of interest rate swap agreements is estimated by obtaining
principally based on quoted market price.                                                quotes from brokers.
(c) Cash deposit for assignment of debt securities                                       (f) Foreign currency contracts
The fair value of the long-term cash deposits is based on the present value              The fair value of foreign currency contracts (used for hedging purposes) is es-
of future cash flows using estimated interest rates and maturities, discounted           timated by obtaining quotes from brokers. The estimated fair value of the fi-
using estimated market discount rates (See Note 9).                                      nancial instruments as of March 31, 1998 and 1999 is summarized as follows:
                                                                                                                                                  Thousands of
                                                                                     Millions of yen                                               U.S. dollars
                                                                     1998                                     1999                                   1999
                                                        Carrying            Estimated              Carrying          Estimated           Carrying               Estimated
                                                        amount              fair value             amount            fair value          amount                 fair value
Marketable securities and Investment securities        ¥ 139,453            ¥ 139,453            ¥ 143,248           ¥ 143,248       $ 1,183,867            $ 1,183,867
Cash deposits for assignment of debt securities            26,736               27,767              52,210              52,763           431,488                436,058
Long-term indebtedness                                   (295,536)            (322,453)           (344,580)           (363,377)       (2,847,769)            (3,003,116)
Interest rate swap agreements, net                           (233)                (466)                 12               2,018                99                 16,678
Foreign currency contracts—net credit                      (8,324)              (7,406)             (1,462)             (2,276)          (12,083)               (18,810)

Limitations
Fair value estimates are made at a specific point in time, based on relevant             significant judgment and therefore cannot be determined with precision.
market information and information about the financial instrument. These                 Changes in assumptions could significantly affect the estimates.
estimates are subjective in nature and involve uncertainties and matters of




                                                                                                                                                                             49
     17. SEGMENT INFORMATION
     Ricoh’s industry segments are comprised of office equipment, including            fiscal 1999 of consolidated sales, respectively.
     copiers and related supplies, communications and information systems,                  Selected data by geographic area for the three years ended March 31,
     and others, including optical equipment and electronic devices. The office        1999 are as follows:
     equipment segment accounted for 86% in fiscal 1997 and 1998, and 87% in
                                                                                                                                                          Thousands of
                                                                                                                 Millions of yen                           U.S. dollars
                                                                                                   1997               1998               1999                1999
     Sales—
       Total domestic                                                                         ¥ 1,031,305        ¥ 1,092,979         ¥1,071,083       $ 8,851,926
       Less—Transfers to foreign subsidiaries                                                    (199,874)          (246,961)          (240,352)       (1,986,380)
       To unaffiliated customers                                                                  831,431            846,018            830,731         6,865,546
       Total foreign subsidiaries                                                                 512,893            599,581            631,503         5,219,033
       Less—Transfers to domestic subsidiaries                                                    (28,252)           (42,251)           (36,235)         (299,463)
       To unaffiliated foreign customers                                                          484,641            557,330            595,268         4,919,570
          Consolidated                                                                        ¥ 1,316,072        ¥ 1,403,348         ¥1,425,999       $11,785,116
     Operating income—
       Domestic                                                                               ¥     73,906       ¥     70,681        ¥    50,568      $      417,917
       Foreign                                                                                      15,535             24,328             27,634             228,380
       Eliminations                                                                                 (6,078)            (5,302)            (4,655)            (38,471)
          Consolidated                                                                        ¥     83,363       ¥     89,707        ¥    73,547      $      607,826
     Identifiable assets—
       Domestic                                                                               ¥ 977,189          ¥ 997,004           ¥1,008,764       $ 8,336,892
       Foreign                                                                                    301,320            331,725            298,836         2,469,719
       Eliminations                                                                              (100,384)           (91,923)          (103,977)         (859,314)
          Total                                                                                 1,178,125          1,236,806          1,203,623         9,947,297
       Investments in and advances to affiliates                                                   56,183             52,694             46,153           381,430
       Corporate assets                                                                           410,588            370,996            378,241         3,125,959
          Consolidated                                                                        ¥ 1,644,896        ¥ 1,660,496         ¥1,628,017       $13,454,686
     Export sales—
       The Americas                                                                           ¥      5,209       ¥      5,935        ¥     2,203      $        18,206
       Europe                                                                                          927              1,224              1,485               12,273
       Other                                                                                         4,291              7,520              6,077               50,223
          Total                                                                               ¥     10,427       ¥     14,679        ¥     9,765      $        80,702
         Intercompany sales between geographic areas are made at cost plus             operations of each geographic area. Export sales are sales to unaffiliated
     profit. Operating income by geographic area is sales less expenses related to     foreign distributors and are included in domestic sales to unaffiliated
     the area’s operating revenue. Identifiable assets are those associated with the   customers.


     18. RESEARCH AND DEVELOPMENT EXPENSES AND ADVERTISING COSTS
     The following amounts were charged to costs and expenses for the three years ended March 31, 1999:
                                                                                                                                                          Thousands of
                                                                                                                 Millions of yen                           U.S. dollars
                                                                                                   1997               1998               1999                1999
     Research and development costs                                                               ¥ 64,297           ¥ 69,988            ¥ 66,777         $ 551,876
     Advertising costs                                                                              18,551             22,033              15,555           128,554




50
R
EPORT OF INDEPENDENT PUBLIC ACCOUNTANTS


         To the Shareholders and the Board of Directors
         of Ricoh Company, Ltd.:

         We have audited the accompanying consolidated balance sheets of RICOH COMPANY, LTD. (a
         Japanese corporation) and consolidated subsidiaries as of March 31, 1998 and 1999, and the related con-
         solidated statements of income, shareholders’ investment and cash flows for each of the three years in
         the period ended March 31, 1999, expressed in yen. These financial statements are the responsibility of
         the Company’s management. Our responsibility is to express an opinion on these financial statements
         based on our audits.

         We conducted our audits in accordance with generally accepted auditing standards in the United States
         of America. Those standards require that we plan and perform the audit to obtain reasonable assurance
         about whether the financial statements are free of material misstatement. An audit includes examining,
         on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
         also includes assessing the accounting principles used and significant estimates made by management, as
         well as evaluating the overall financial statement presentation. We believe that our audits provide a
         reasonable basis for our opinion.

         Generally accepted accounting principles in the United States of America require that a public
         enterprise reports certain information about its operating segments, with related disclosure about
         products and services, geographic areas and major customers. The Company has not presented such
         information as would be appropriate in its consolidated financial statements.

         In our opinion, except for the omission of the information referred to in the preceding paragraph, the
         consolidated financial statements referred to above present fairly, in all material respects, the financial
         position of Ricoh Company, Ltd. and its consolidated subsidiaries as of March 31, 1998 and 1999, and
         the results of their operations and their cash flows for each of the three years in the period ended March
         31, 1999, in conformity with accounting principles generally accepted in the United States of America
         (see Note 2).

         In our opinion, the amounts translated into U.S. dollars and presented in the accompanying consolidat-
         ed financial statements have been computed on the basis set forth in Note 3.




         Tokyo, Japan
         June 29, 1999




                                                                                                                       51
     R        ICOH’S OVERSEAS NETWORK
     As of March 31, 1999


     THE AMERICAS                                                      EUROPE, AFRICA, AND THE MIDDLE EAST
     Production                                                        Production
     Mexico                                                            France
                        Ricoh Industrial de Mexico, S.A. de C.V.                         Ricoh Industrie France S.A.
     United States                                                     United Kingdom
                        Ricoh Electronics, Inc.                                          Ricoh UK Products Ltd.
                                                                                         Ricoh Wellingborough Products Ltd.
     Sales and Other                                                                     GR Advanced Materials Ltd.
     Argentina
                        Gestetner S.A.C.I.                             Sales and Other
     Brazil                                                            Austria
                        Gestetner do Brazil S.A.                                         Ricoh Austria GmbH
     Canada                                                                              Gestetner Buromaschinen-Verkaufsgesellschaft m.b.H
                        Ricoh Canada Inc.                              Belgium
     Colombia                                                                            NRG Belgium S.A.
                        Gestetner Colombia S.A.                        Denmark
     Mexico                                                                              Gestetner A/S
                        Ricoh Mexicana, S.A. de C.V.                   France
     Peru                                                                                Ricoh France S.A.
                        Gestetner S.A.                                                   Gestetner S.A.
     Puerto Rico                                                                         NRG France S.A.
                        NRG Distribution Corporation                                     Rex-Rotary S.A.
     United States                                                     Germany
                        Ricoh Corporation                                                Ricoh Deutschland GmbH
                        Ricoh Finance Corporation                                        NRG Office System GmbH
                        Ricoh Silicon Valley, Inc.                     Guernsey
                        Ricoh Latin America, Inc.                                        NRG International Limited
                        Savin Corporation                              Hungary
     Uruguay                                                                             Ricoh Hungary Kft.
                        Gestetner Limitada                             Ireland
                        Ricoh Latin America Distribution Center S.A.                     Gestetner Ireland Limited
                        Ricoh South America Distribution Center S.A.   Israel
     Venezuela                                                                           Gestetner (Israel) Limited
                        Gestetner S.A.                                 Italy
                                                                                         Ricoh Italia S.p.A.
                                                                                         NRG Italia S.p.A.




52
Netherlands                                                          Sales and Other
                 Ricoh Europe B.V.                                   Australia
                 Ricoh Nederland B.V.                                                  Ricoh Australia Pty, Ltd.
                 Ricoh Finance Nederland B.V.                                          Ricoh Office Automation Pty Ltd.
                 Kulk & Kramer Kantoorsystemen BV                                      Hanimex Pty, Limited
                 NRG Benelux BV                                                        Rabbit Photo Holdings Limited
Norway                                                               China
                 Ricoh Norge A.S.                                                      Ricoh Electronic Technology Ltd. (Shanghai)
Poland                                                                                 Ricoh Electronic Technology Ltd. (Beijing)
                 Ricoh Polska Sp.zo.o.                               Hong Kong
Russia                                                                                 Ricoh Hong Kong Ltd.
                 Mitsui-Ricoh CIS Ltd.                                                 Ricoh Asia Industry Ltd.
South Africa                                                                           Ricoh Photo Products (Asia) Ltd.
                 Gestetner (Proprietary) Limited                                       Ricoh Component (H.K.) Ltd.
Spain                                                                                  Guastalla Trading Co., Ltd.
                 Ricoh España S.A.                                                     Gestetner China Ltd.
                 NRG Comunicaciones S.A.                                               Inchcape NRG Ltd.
Sweden                                                                                 Inchcape NRG H.K. Limited
                 Gestetner AB                                        India
United Kingdom                                                                         Ricoh India Limited
                 Ricoh UK Ltd.                                                         Gestetner (India) Limited
                 Gestetner Holdings PLC                              Malaysia
                 Midland Copying Consultants Limited                                   Inchcape NRG (Malaysia) Sdn. Bhd.
                 NRG Group Limited                                   New Zealand
                                                                                       Ricoh Office Automation Ltd.
                                                                                       Hanimex (NZ) Limited
                                                                                       Camera House Limited
                                                                                       Viko New Zealand Limited
ASIA AND OCEANIA                                                     Philippines
Production                                                                             Inchcape NRG (Philippines), Inc.
China                                                                Singapore
                 Ricoh Asia Industry (Shenzhen) Ltd.                                   Ricoh Asia Pacific Pte. Ltd.
                 Ricoh Dianzhuang (Shenzhen) Electronics Co., Ltd.                     Inchcape NRG (Singapore) Pte Ltd.
                 Ricoh International (Shanghai) Co., Ltd.            Thailand
                 Shanghai Ricoh Facsimile Co., Ltd.                                    Inchcape NRG (Thailand) Ltd.
                 Dong Guan Tailien Optical Co., Ltd.
Korea
                 Sindo Ricoh Co., Ltd.
Taiwan
                 Taiwan Ricoh Co., Ltd.




                                                                                                                                     53
     M         AJOR CONSOLIDATED SUBSIDIARIES
     As of March 31, 1999


     Domestic                                                                Overseas
     Ricoh Optical Industries Co., Ltd.   Kanagawa Ricoh Co., Ltd.           Ricoh Electronics, Inc.
     Tohoku Ricoh Co., Ltd.               Shizuoka Ricoh Co., Ltd.           Ricoh UK Products Ltd.
     Hasama Ricoh, Inc.                   Aichi Ricoh Co., Ltd.              GR Advanced Materials Ltd.
     Ricoh Unitechno Co., Ltd.            Kyoto Ricoh Co., Ltd.              Ricoh Industrie France S.A.
     Ricoh Elemex Corporation             Osaka Ricoh Co., Ltd.              Taiwan Ricoh Co., Ltd.
     Ricoh Microelectronics Co., Ltd.     Hyogo Ricoh Co., Ltd.              Ricoh Asia Industry (Shenzhen) Ltd.
     Ricoh Keiki Co., Ltd.                Hiroshima Ricoh Co., Ltd.          Ricoh Corporation
     Hokkaido Ricoh Co., Ltd.             Shikoku Ricoh Co., Ltd.            Ricoh Europe B.V.
     Miyagi Ricoh Co., Ltd.               Fukuoka Ricoh Co., Ltd.            Ricoh Deutschland GmbH
     Niigata Ricoh Co., Ltd.              Ricoh Technosystems Co., Ltd.      Ricoh UK Ltd.
     Nagano Ricoh Co., Ltd.               NBS Ricoh Co., Ltd.                Gestetner Holdings PLC
     Gunma Ricoh Co., Ltd.                Ricoh Logistics System Co., Ltd.   Ricoh España S.A.
     Tochigi Ricoh Co., Ltd.              Ricoh Leasing Company, Ltd.        Ricoh France S.A.
     Saitama Ricoh Co., Ltd.              Ricoh Engineering Co., Ltd.        Ricoh Italia S.p.A.
     Ibaraki Ricoh Co., Ltd.              Ricoh San-ai Service Co., Ltd.     Ricoh Hong Kong Ltd.
     Chiba Ricoh Co., Ltd.                Giga Networks, Inc.                Ricoh Asia Industry Ltd.
     Tokyo Ricoh Co., Ltd.                                                   Ricoh Photo Products (Asia) Ltd.
     Nishi Tokyo Ricoh Co., Ltd.                                             Ricoh Asia Pacific Pte. Ltd.
                                                                             Ricoh Finance Nederland B.V.




     BOARD OF DIRECTORS
     As of June 29, 1999




     Chairman                             Managing Directors                 Takashi Nakamura
     Hiroshi Hamada                       Naoto Shibata                      Kenji Hatanaka
                                          Koichi Endo                        Etsuo Kobayashi
     President                            Masaaki Iida                       Masami Yoneyama
     Masamitsu Sakurai                    Masami Takeiri
                                          Makoto Hashimoto                   Corporate Auditors
     Executive Managing Directors         Masayuki Matsumoto                 Akio Miyazaki
     Kazuhiro Sakai                                                          Minoru Tajima
     Haruo Kamimoto                       Directors                          Hisaaki Koga
     Tatsuo Hirakawa                      Taisaburo Homae                    Katsumi Yamamoto
                                          Terumoto Nonaka                    Kenji Matsuishi
                                          Atsumichi Nagatomi
                                          Kiyoshi Sakai
                                          Tadatoshi Sakamaki




54
C   Ricoh Company, Ltd.                              Depositary and Agent for American Depositary Receipts
                                                         The Bank of New York
    Corporate Headquarters                               101 Barclay Street, 22 West
       15-5, Minami-Aoyama 1-chome,                      New York, NY 10286, U.S.A.
       Minato-ku, Tokyo 107-8544, Japan                  Tel: 212-815-2042
       Tel: (81) 3-3479-3111                             US toll free: 1-888-269-2377
       Fax: (81) 3-3403-1578                             Home Page: http://www.bankofny.com/adr

    Date of Establishment                            Listing in the Amsterdam Security Account
       February 6, 1936                                  System on Amsterdam Stock Exchange
                                                         Nominee Amsterdam Stock Exchange
    Number of Shares Authorized
       1,000,000,000 shares                          Depositaries and Agents for Global Bearer Certificates
                                                         Deutscher Kassenverein Aktiengesellschaft (DKV)
    Number of Shares Issued (as of March 31, 1999)       Commerzbank Aktiengesellschaft
       691,598,631 shares
                                                     Clearing House and Sponsoring Banks for Listing on
                                                        Bourse de Paris
    Stock Listings
                                                         Société Interprofessionnelle pour la Compensation
       Tokyo, Osaka, Nagoya, Fukuoka,
                                                         des Valeurs Mobilières (SICOVAM)
       Sapporo, Hiroshima, Niigata, Kyoto,
                                                         Crédit Lyonnais
       Amsterdam, Frankfurt, Paris
                                                         Nomura France
    Independent Public Accountants
       Arthur Andersen

    Transfer Agent for Common Stock
       The Chuo Trust and Banking Co., Ltd.
       7-1, Kyobashi 1-chome,
       Chuo-ku, Tokyo 104-0031, Japan




                                                     For further information and additional copies of our annual report and other publications,
                                                     please write to the Public Relations Department at our corporate headquarters.
                                                                                                                                                  55
       RICOH CORPORATION
    5 Dedrick Place, West Caldwell,
       New Jersey 07006, U.S.A.
         Tel: (1) 973-882-2000
        Fax: (1) 973-882-2506
   Website: http://www.ricoh-usa.com/


        RICOH EUROPE B.V.
              Groenelaan 3,
         P.O. Box 114, 1186 AA
        Amstelveen, Netherlands
          Tel: (31) 20-5474111
          Fax: (31) 20-5474154
  Website: http://www.ricoh-europe.com/


 RICOH ASIA PACIFIC PTE. LTD.
#15-01/02 The Heeren, 260 Orchard Road,
            Singapore 238855
           Tel: (65) 830-5888
           Fax: (65) 830-5830
    Website: http://www.ricoh.com.sg/


     RICOH HONG KONG LTD.
      23/F China Overseas Building,
139 Hennessy Road, Wan Chai, Hong Kong
          Tel: (852) 2862-2888
          Fax: (852) 2866-1120
    Website: http://www.ricoh.com.hk/


   RICOH COMPANY, LTD.
    15-5, Minami-Aoyama 1-chome,
   Minato-ku, Tokyo 107-8544, Japan
         Tel: (81) 3-3479-3111
         Fax: (81) 3-3403-1578
    Website: http://www.ricoh.co.jp/




                                                                                   The Eco Mark of JEA




                                          This publication has been printed on recycled paper approved by
                                                                the Japan Environment Association (JEA)

                                                                                         Printed in Japan
                                                                                                     9907

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:9
posted:10/23/2012
language:English
pages:59