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					                                                         Review of Operations




                               Office Equipment
                                     Copiers and Related Supplies


     Ricoh’s Position                                                          per minute (cpm) to serve the complete customer
     Ricoh pioneered digital copiers and is the world’s No. 1                  demand spectrum.
     manufacturer of this equipment.                                                A major highlight of the year was the launch of the
           Networking is essential to boost productivity in                    ultrafast Aficio 850. This high-end machine can output
     today’s office environment. Ricoh has drawn on years of                   85 cpm. Two of them can be combined to double this
     development in digital technologies to serve the digitally                speed. The Aficio 850 almost eliminates downtimes. You
     networked office with multifunctional printers that com-                  can scan new documents to memory and replace toner or
     bine copier and printing functions. The Company domi-                     paper while the machine is outputting another copy job.
     nates the digital copier market in Japan. Overseas, it has                This model can also serve as a high-speed printer.
     launched an array of networked models. It has remained                         Other popular offerings included the 35-cpm Aficio
     top in Europe and one of the leaders in the United States                 340/350 and the 45-cpm Aficio 450. Both these multi-
     in its core business of digital monochrome copiers for the                functional copiers won top markets for resolutions of 600
     past four years.                                                          dots per inch (dpi) in printer mode.

     Fiscal 2000 Performance
     In fiscal 2000, sales of copiers and related supplies
     declined 4.0%, to ¥870.3 billion ($8,449 million), or
     60.1% of net sales.
           In Japan, sales of color and other digital models rose
     0.6% despite the domestic recession. Internationally,
     Ricoh performed generally well, owing to the popularity
     of Aficio brand digital copiers and more efficient sales
     channels. Overseas sales dropped 8.6%, however, reflecting
     the yen’s appreciation.
           Digital models are now the core of the Company’s
     copier business, with speeds ranging from 15 to 85 copies
                                                                                                        Cocinelle Srl, an Italian leather goods
                                                                                                        firm, selected the Aficio 650, a PC-
                                                 • Sales of Copiers and Related Supplies
                                                                                                        connective 65-cpm machine, to bol-
                                              1000
                                                                                                        ster creative and administrative
                                                                     891.0 906.9 870.3
                                                             828.4                                      productivity in a networked environ-
                                               800                                                      ment.
                                                     654.5
                                               600



                                               400



                                               200



                                                 0
                                                      1996   1997    1998      1999   2000

                                                                 (Billions of Yen)




14
                                       Review of Operations



                                                                                The University of Liège, Belgium,
                                                                                chose the flagship 85-cpm Aficio 850
                                                                                to process massive volumes of docu-
                                                                                ments quickly, efficiently, and cost-
                                                                                effectively.




                                                                                Midland Realty International Ltd.
                                                                                in Hong Kong chose the highly
                                                                                affordable Aficio 180 to output prop-
                                                                                erty information for clerical and
                                                                                customer usage.




                                       Hong Kong-based Satellite Television
                                       Region Asian Ltd. uses its Aficio 650,
                                       which is popular worldwide for its
                                       multifunctionality and printer and
                                       copier resolutions of 600 and 400
                                       dpi, respectively.

The City Government of Solingen,
Germany, relies on the Aficio 270, a
27-cpm machine that outputs at 600
dpi and features a space-saving
wingless design.




                                                                                                                        15
                                                       Review of Operations




           The 22-cpm Aficio 220 and 27-cpm Aficio 270 also
     output at 600 dpi. Both models feature a space-saving
     wingless design.
           In recent years, Ricoh has introduced many multi-
     functional color digital copiers, sales of which have
     soared. Major sellers during fiscal 2000 were the compact,
     6-cpm Aficio Color 3000 and 4000 series and the 10-cpm
     Aficio Color 6000 series. Our range includes network
     controller models that double as color printers.
           In Japan, Ricoh is pursuing a document solutions
     strategy. Sales in this area are growing swiftly. For exam-
     ple, we combine digital copiers with software that helps
     users integrate their management of electronic and
     paper-based files to enhance workflow. We are helping
     streamline the efficiency of office work with applications
     and multifunctional copiers that can scan documents
     and distribute them automatically to networked personal
     computers.
           We also make high-resolution wide-format copiers
     and stencil duplicators, many of which are digital and
     networkable.                                                  W S Atkins, a British firm that serves a global client base with an
                                                                   array of consultancy, management, and technical services, takes
     Looking Ahead                                                 full advantage of the Aficio Color 4106, which can output up to six
     Ricoh has responded decisively to the emergence of the        color copies per minute, making it perfect for duplicating proposals.
     digitally networked office by innovating ways to help users
     work more efficiently and creatively. Our lineup in the
     year ahead will include even faster machines—one
     model launched after the close of fiscal 2000 can output
     up to 105 cpm. We will strengthen our capabilities in all
     product segments. And our range will include more
     high-resolution color copiers. Over the next few years,
     we will launch successive digital monochrome and color
     machines and supporting software to provide more
     document solutions.
          We now manufacture digital copiers in Japan, the
     United States, Europe, and China to match local demand        The Gold Coast City Council in Queensland, Australia, uses 42
                                                                   networked Aficio 340 machines that all draw on our powerful
     trends. We will further strengthen our global production
                                                                   PC-based Aficio Manager software to track and control print runs.
     capabilities to support our policy of producing the right
     equipment in the right place and maintaining local
     supplies bases.



16
                                                        Review of Operations


                            Office Equipment
                   Communications and Information Systems




Ricoh’s Position                                                                Franco Maria Ricci SpA, an international publishing compa-
Ricoh’s activities in this area encompass printers, scan-                       ny based in Milan, Italy, chose the Aficio Color AP305, which
                                                                                can output five color or 17 monochrome A4 pages per minute
ners, CD-Recordable/CD-ReWritable (CD-R/RW) drives
                                                                                at 600 dpi, for its quality and accuracy.
and media, fax machines, personal computers, and
software and services.
      As in other operations, customers in this category
demand solutions to help them use their           • Sales of Communications and Information Systems
hardware more efficiently. Ricoh opti-          400                             382.8
mizes its equipment and systems to                                        344.0
match networked office environments.            320
                                                              308.3 322.4

We are strengthening our proprietary                   287.4

document solutions capabilities, cen-           240
tered on networkable printers incorporat-
ing our advanced digital and                    160
image-processing technologies.
                                                   80



                                                    0
                                                          1996   1997   1998     1999   2000

                                                                    (Billions of Yen)




                                                                                                                                                17
                                                         Review of Operations




                                                                     The Aficio AP2700, a 27-page-per-minute printer, is a favorite at
     Fiscal 2000 Performance                                         Florida Windstorm Underwriting Association, a major insurer in
     Sales in this category climbed 11.3%, to ¥382.8 billion         Jacksonville, North Carolina, that uses only Ricoh-made office
     ($3,716 million), and represented 26.5% of net sales.           equipment.
          Printer operations in Japan drove this growth and
     also boosted sales from our solutions business.

     Printers
     Ricoh makes color and medium- and high-speed mono-
     chrome laser printers for office networks. In the less than
     two years since concentrating on this business area in
     Japan, we have built a solid range and sales structure.
     This effort has been massively successful. In the first quar-
     ter of calendar 2000, we seized the No. 1 spot in Japan in
                                                                     Modis Professional Services, a large temporary staffing agency in
     the color laser printer category.
                                                                     Jacksonville, North Carolina, bought the Aficio AP4500, a mono-
           One particularly popular new model in the year            chrome laser printer that outputs up to 45 pages per minute and
     under review was the IPSiO Color 5000 series. This              performs key finishing functions like stapling and punching.
     machine can output six color or 24 monochrome A4
     pages per minute at 600 dpi and can also print out A3-
     sized documents. Another strong seller was the compact
     and affordable IPSiO Color 2100 series. This A4 model
     outputs four color or 16 monochrome pages per minute.
           During the year, we introduced the IPSiO NX900 and
     IPSiO NX800. These monochrome laser printers output
     up to 45 and 28 pages per minute, respectively. They also
                                                                     Pelikan Hardcopy International AG, an Italian
     perform several key finishing functions, such as stapling       subsidiary of Europe’s leading maker of inks for
     and punching.                                                   inkjet printers, values the Aficio AP204 highly for its
           Most of these models are also sold overseas under the     speed, precision, and durability. This A4 model out-
     Aficio brand.                                                   puts four color or 16 monochrome pages per
                                                                     minute.




18
                                                      Review of Operations




Ingram Micro Inc. of Santa Ana, California, man-
ages its data storage needs easily with the MP9060A
drive, which handles CD-ROM, CD-R, CD-RW, and
DVD-ROM discs.


                                                                  Baxter N.V.-S. A. of Belgium takes full advantage of the FAX2900L,
Personal Computers and Software                                   a compact, plain-paper machine that allows PC workgroups to fax
In Japan, sales of personal computers contributed signifi-        from the desktop.
cantly to revenues. Ricoh has reinforced marketing in this
area as part of its document solutions approach. The                    Particularly popular overseas were the FAX2000L
Ricoh Group is now the world’s largest seller of IBM PC           and the Aficio FAX5000L. The former is a compact,
servers and clients. IBM Corporation named us its No. 1           plain-paper model that can be upgraded to perform
partner for 2000.                                                 printing, scanning, and PC faxing. The latter is a versatile,
     Ricoh enjoyed steady growth in packages of docu-             high-volume machine that can handle LAN printing,
ment solutions software and image processing equipment            faxing, scanning, and Internet or G4 mode faxing.
that allow customers to seamlessly manage electronic and                In Japan, we further reinforced our line of Super G3
paper-based information. In software, we continued to do          machines, which can transmit an A4 page over regular
well with Ricoh Solution Group Office, based on Lotus             telephone lines in just three seconds. We also introduced
Notes groupware that we originally modified and                   models that can fax through the Internet to streamline
deployed to streamline internal operations.                       efficiency and lower communications charges.

CD-R/RW Drives and Media                                          Looking Ahead
Ricoh focuses heavily on CD-related technologies for stor-        In fiscal 2001, we plan to expand our range of Aficio
ing multimedia data. We helped formulate the global               brand networkable printers. We will also bolster our range
standards for CD-R and CD-RW media and are a major                to include 600-dpi color printers and high-speed mono-
player worldwide in both areas.                                   chrome models. At the same time, we will expand our
     In the year under review, we scored a hit with the           software and support capabilities to deliver more innova-
MP9060A drive, which can handle CD-ROM, CD-R, CD-                 tive document solutions.
RW, and DVD-ROM discs.                                                  In CD-related businesses, we will embrace DVD tech-
                                                                  nologies to introduce a whole new range of drives and
Communications Systems                                            media.
Networkable and multifunctional fax machines sold well
in fiscal 2000.




                                                                                                                                       19
                                                        Review of Operations


                                Other Businesses
     Ricoh’s Position
     This category draws on and complements Ricoh’s broad
     technological resources. Here, we make electronic devices,               We recently introduced the
                                                                              RICOH RDC-7, which incorpo-
     photographic equipment, and unit models, as well as
                                                                              rates a 3.34-megapixel
     other computer parts and components. We also provide                     charge-coupled device in an
     leasing and logistics services to support customers’ opera-              ultrathin, stylish body.
     tions.

     Fiscal 2000 Performance                                                                The RICOH RDC-5300 features a 2.3-megapixel
     Sales of other businesses jumped 10.9%, to ¥194.1 billion                              resolution and a 3X optical zoom lens and makes
     ($1,884 million), reflecting the steady progress of elec-                              digital photography child's play.
     tronic devices operations.
                                                                              computer controllers. Our swift responsiveness to emerg-
     Electronic Devices                                                       ing trends in information and portable communications
     Ricoh develops and manufactures large-scale integrated                   demand has helped us capture top shares in various market
     circuits (LSIs), which are crucial to innovating high-                   niches, and thus grow faster than the industry average.
     resolution copiers and printers.
           Our semiconductor operations supply high-perfor-                   Photographic Equipment
     mance integrated circuits (ICs) and LSIs to customers                    In this category, we concentrate on digital cameras. We
     around the world. For example, we make power and bat-                    pioneered such cameras, which have tremendous poten-
     tery ICs for cell phones and other mobile equipment, as                  tial as input devices. During the year, we introduced the
     well as real-time clock ICs. All these devices draw on                   RICOH RDC-5000 series. These user-friendly models feature
     Ricoh’s acclaimed complementary metal oxide semicon-                     a 2.3-megapixel resolution and a 3X optical zoom lens.
     ductor technology. We boast a massive share of the global
     market for digital LSIs for CD-R/RW drive and notebook                   Looking Ahead
                                                                          Ricoh aims to further expand sales of devices by developing
                                                                          more components for core business equipment and systems,
                                                 • Sales of Other Businesses
                                                                                             as well as LSIs for information and
                                               200                                           mobile communications equipment.
                                                                   189.9     194.1
                                                      171.2
                                                             179.4       175.1                 We will position our digital cameras
                                               160
                                                                                             as “image capturing devices” to reflect
                                                                                             their growing importance as input
                                               120
                                                                                             tools within our solutions strategy.

     The RL5E821 CD-R/RW controller chip
                                               80
     is one of countless Ricoh-developed
     application-specific standard products
     and power management ICs for devices      40

     like CD-R/RW drives, mobile telephones,
     and personal digital assistants.           0
                                                     1996   1997   1998      1999   2000

                                                              (Billions of Yen)




20

				
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