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Summary of Sustainable Environmental Management in Fiscal 2010

Here we report the results of environmental impact reductions and economic value creation in fiscal 2010.

Reducing environmental impact

In fiscal 2010, we continued to work to achieve the reduction target specified in our Environmental Action Plan for fiscal 2008-2010, or a 20% reduction of the integrated environmental impact in fiscal 2010 compared to the levels of fiscal 2000. Specific actions taken include encouraging customers to make greater use of energy-saving and duplex copying functions, and making our own efforts (e.g., technological development and improvement of production process and product designs as well as further promotion of resource circulation) in the following three priority areas: energy conservation and prevention of global warming; resource conservation and recycling; and pollution prevention. Although we were on track to achieve the reduction goal of 20% in fiscal 2009 (the environmental impact was 79.8% of the fiscal 2000 level) due to our reduction efforts and the impact of the global recession, we finished fiscal 2010 with an integrated environmental impact of 83.1% of the base year, mainly because of increased sales volume amid economic recovery. Compared with the beginning of the three-year action plan, the environmental impact level of the fiscal 2010 showed a slight improvement. Going forward, we will continue our efforts to achieve the Mid- and Long-Term Environmental Impact Reduction Goals announced in April 2009 and focus on environmental impact reduction through new businesses, such as IT-based services and comprehensive ESCO business*, which covers MFPs, printers, LED lights, and others.

* ESCO stands for Energy Service Company, a business that contributes to the enhancement of customers' profitability and the conservation of the global environment by offering comprehensive services to make their buildings and factories more energy efficient. The ESCO guarantees the effect of the energy saving measures and receives the fee that matches the benefits the customer received.

Changes in integrated environmental impact (Operations in advanced nations)*

Changes in integrated environmental impact (Operations in advanced nations)

* The production and printing businesses are not included.
* Fiscal 2009 data has been revised to correct an error found in the relevant data collection process.

Business results for fiscal 2010

The Ricoh Group's consolidated net sales in fiscal 2010 decreased by 3.7% from the previous year to ¥1,942.0 billion. The earthquake and tsunami which struck the eastern part of Japan in March 11 2011 caused damage and destruction to our facilities in the affected area and hampered our sales and shipments in Japan and other areas. As a result, our sales in Japan saw a 0.1% decline from the year earlier. Fiscal 2010 sales outside of Japan decreased by 6.5% from the previous year, although sales in non-Japanese markets grew by 3.5% if the effects of currency rate fluctuations are excluded. In terms of breakdown by region, the Americas posted a 6.4% decline from the previous year, mainly due to the effects of foreign exchange rates; a 9.7% drop in Europe, also attributable to the sharp rise of the yen; and a 5.5% increase in other regions including China and other Asian markets. Our operating income decreased by 8.8% on a year-on-year basis to ¥60.1 billion.

* For more details on the business results, please see the "Investor Relations" page on our website

Net sales and operating income on net sales

Net sales and operating income on net sales

Operating income

Operating income

Topics on sustainable environmental management in fiscal 2010

Ricoh provided the document output operation and management service at COP 10.
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Ricoh Electronics, Inc. (our manufacturing subsidiary in the U.S.) installed a photovoltaic power generation system.
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Ricoh released the imagio MP C2801/3301, its first digital color MFP with a recovery time from energy-saving mode of less than 10 seconds.
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Ricoh released the IPSiO SP C320, a color laser printer featuring "Eco Night Sensor."
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Ricoh developed next generation wastewater treatment technology by using its ozone micro/nano-bubble technology for its polymerized toner production process.
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