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FY2006 Financial Announcement

ended March 31,2006

Date : April 27, 2006
Time : 10:00am-11:30am
Place : TSE Hall
Contents : Mr. Zenji Miura, CFO of Ricoh Company, Ltd., explained FY2006 results using materials below.

< Attention >
This material is prepared for the convenience of the investors who could not participate the financial results meeting. Please make sure that this material does not contain all spoken sentences.
Additionally, the Company bases the estimates in this material on information currently available to management, which involves risks and uncertainties that could cause actual results to differ materially from those projected.

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Presentation Materials
Financial Highlights /Appendix
Summary of FY06/3 Results Presentation

We achieved new records in both sales and profit during the fiscal year ended March 31, 2006 thanks to a strong sales increase in color MFPs and printers both in Japan and overseas. We also launched new products and executed programs such as integration and reorganization of bases and core operating system development as part of the 15th Mid-term plan. As a result, we plan for a second- half dividend of 12 yen per share, which translates into 24 yen per share over the full year.
We forecast 2.05 trillion yen in sales and 106.0 billion yen in net profit for the fiscal year ending March 31, 2007, breaking a new record. We also plan to raise dividends 4 yen to 28 yen per share for fiscal March 2007.

Q&A Session










Q1. Why do you predict continuing high growth for overseas?

A1. We expect a positive effect from new products that will be released in June or later in FY07/3. Also, the results of integration of sales companies by FY06/3 will contribute to the high growth overseas. We expect to fuel grow additionally by expanding into High-end and Low-end segments as our new markets.

Q2. Does Ricoh see the J-SOX (Japan’s version of the Sarbanes-Oxley Act) and Private Information Protection laws as business opportunities, and if so how will it translate into earnings?

A2. Ricoh has developed at some cost in-built security solutions in our products which we think will eventually give us a competitive advantage and we expect these offerings to expand our profit going forward.

Q3. What is your target for color to black and white ratio on FY07/3?

A3. We expect our total worldwide ratio will increase over FY06/3 thanks to a strong increase in color demand in overseas markets.

Q4. How can Ricoh grow even more in Europe where Ricoh already enjoys the top share position?

A4. We expect to grow in Europe thanks to positive effect of the new products to be launched in FY07/3.

Q5. Which market will enjoy higher growth, the U.S or Europe?

A5. We expect U.S to be higher than Europe in FY07/3.

Q6. What is the ratio of profit contribution from the solution business?

A6. We do not disclose these profit figures, but we believe our expanding solution business will increase our profits.

Q7. Is there any impact from tough competition on the low-end segment market?

A7. We recognize that the low-end segment is a very tough market, but we expect we can grow our profit by our entry into the low-end market.

Q8. The R&D budget hasn't been entirely spent in FY06/3. Will the R&D forecast change based on net sales in FY07/3?

A8. For example, we were able to keep certain R&D expenditures down by using computer generated testing methods for some products instead of more costly traditional methods in FY06/3. Fundamental R&D is going ahead at a full pace to develop future technologies. Total R&D expenditures are not based on net sales.

Q9. Do you plan a share buy-back in FY07/3?

A9. We execute share buy-back on an as-needs basis, depending on our investment concerns and the general business conditions at the time. We have not as yet decided on a share buy-back for FY07/3.