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2001Océ Annual Report
Océ supplies a broad range of high quality
products and services to meet professional
needs for the management of document
flows. In this way Océ enables people and
organisations to exchange information
efficiently and effectively.
Océ ..
Report for the financial year
December 1, 2000
to November 30, 2001
More copies of the English translation of this
Annual Report or of the Dutch-language original
version are available on request from
Océ, Corporate Communications Department
telephone (+31) (0)77 3594000,
e-mail info@oce.com.
Enclosed in this Annual Report is a cd-rom, see
inside of back cover. The cd-rom contains the
entire Annual Report plus detailed background
information about Océ and its operations. Also
included on the cd-rom are a video about Océ and
interviews with customers plus various internet
links that will give you direct access to the very
latest information on our website www.oce.com.
2
Contents
4 Océ Profile
6 The world of Océ
8 Key figures
9 Report of the Board of Supervisory Directors
10 Report of the Chairman of the Board of
Executive Directors
Report of the Board of Executive Directors
14 Trends and strategy
Financial review19 Results
19 Dividend
20 Prospects
20 Finance
Operational developments by market segment31 Wide Format Printing Systems
33 Document Printing Systems
35 Production Printing Systems
38 Facility Services
39 Imaging Supplies
Technology and Innovation43 Research & Development
44 Manufacturing and Logistics
Sustainable business practices49 Personnel and Organisation
51 Safety, Environment and Health ()
Management aspects53 Risk profile
55 Corporate Governance
Annual Financial Statements
57 Consolidated Statement of Operations
58 Consolidated Balance Sheet
60 Consolidated Statement of Cash Flow
62 Summary of Significant Accounting Principles
66 Notes to the Consolidated Statement of
Operations
69 Notes to the Consolidated Balance Sheet
84 Company Balance Sheet
84 Company Statement of Operations
86 Notes to the Company Balance Sheet and
Statement of Operations
Other information
89 Net income appropriation
90 Authorised capital
91 Auditors’ report
Miscellaneous
92 Board of Supervisory Directors
93 Board of Executive Directors
94 Directors Central Services
95 Principal companies and their chief executives
97 Supplementary information for shareholders
100 Océ 1992-2001
102 List of terms and abbreviations
3
Océ Profile
Océ is one of the world's leading companies in the
area of document management. In advanced re-
search centres and high-tech production facilities
the company develops products and services for
the efficient and effective exchange of information.
These comprise products for the reproduction,
presentation, distribution and management of
documents.
The range of products and services offered by Océ
is characterised by its recognised high quality,
which is based on reliability, productivity, dura-
bility, ease of use and environmental friendliness.
Océ’s products and services are mainly offered
direct via the company's own sales and service
organisations; a limited number of them are also
distributed via third parties.
Océ focuses on professional user environments,
particularly on those in which high document
volumes are processed.
In 2001 Océ achieved total revenues of € 3.2
billion and a net income before exceptional items
of € 105 million.
Product range Océ supplies:
– printers (black-and-white and colour), copiers,
scanners, software and supplies;
– professional services: consultancy relating to the
organisation of document management systems
and system integration in customer environments;
– Facility Services: organisation and operational
execution of document management in various
customer environments;
– maintenance and after sales service;
– financing of purchases of hardware and software.
These products and services can be supplied sepa-
rately, but also in combination with each other in
the form of total document management
solutions.
Customers Océ supplies its products mainly to
professional users in office environments and indus-
try in which high productivity and high volumes
are required, as well as to the printing industry.
In these environments Océ is characterised by its
unique approach which focuses on providing
customer-specific solutions in hardware, software
and services.
Organisation Océ largely develops and manu-
factures its products itself.
The company can draw on a strong technology
base thanks to its many years of expertise and its
programmes of consistent investment in .
This basic strength is further enhanced via alliances
with strategic partners and through systematic
cooperation with co-developers and suppliers.
The company's own sales and service organisation
provides a constant flow of up-to-date market in-
formation, allowing Océ to anticipate and respond
in good time to changing market requirements.
Océ has research and manufacturing centres in
the Netherlands, Germany, Belgium, France, the
Czech Republic, the United States and Japan.
The company operates in over eighty countries
and is active via its own sales companies in thirty-
one of these countries.
World-wide Océ has more than 22,000 employ-
ees, more than half of whom work in sales, main-
tenance and services.
Ambition Océ seeks to ensure continuity by pur-
suing a pro-active technological and commercial
strategy. This is aimed at enabling the company to
strengthen its position in existing and new markets
in the field of document management.
In the strategic markets in which the company
operates, Océ seeks to achieve a top-three position.
Its principal objective is to create value for cus-
tomers, employees and investors.
Part of this strategy is the improvement of profit-
ability, through autonomous growth and acqui-
sitions, in combination with efficiency improve-
ments and optimisation of the use of capital.
To measure this, Océ uses the return on capital
invested as principal yardstick.
Océ aspires to grow in a world in which the
preconditions for sustainable development take
priority.
Océ wants to be an attractive employer. Océ there-
fore invests world-wide in a healthy, inspirational
working environment with good career oppor-
tunities.
4
Océ Profile
Board of Supervisory H.B. van Liemt, chairmanDirectors M. Ververs, vice-chairman
L.J.M. Berndsen
P. Bouw
J.L. Brentjens
J.V.H. Pennings
F.J. de Wit
Board of Executive R.L. van Iperen, chairmanDirectors J. van den Belt
J.F. Dix
G.B. Pelizzari
Staff Director/ J.M.M. van der Velden (until November 30, 2001)
Company Secretary H.J. Huiberts (as from December 1, 2001)
Financial year The company’s financial year runs from December 1
to November 30.
Articles of Association The present Articles of Association were confirmed
by a notarial deed dated April 9, 1999. Océ .. is
an international holding company within the
meaning of Article 153, para. 3b, Book 2 of the
Dutch Civil Code.
Registered office and The company has its registered office in Venlo, the
commercial registry Netherlands, and is registered in the Commercial
Registry in Venlo under No. 12002283.
Head office The head office is at St. Urbanusweg 43, Venlo,
the Netherlands
Postal address: .. Box 101, 5900 Venlo,
the Netherlands
Telephone (+31) (0)77 3592222,
fax (+31) (0)77 3544700
Océ on Internet: http://www.oce.com
E-mail: info@oce.com
For general information about Océ:
telephone (+31) (0)77 3592000
5
Banks
Telecom businesses
Insurers
Public utilities
Industrial companies
Government institutions
Education
Consultancy
Legal profession
Consultancy
Government institutions
Industrial companies
Industrial companies
Construction companies
Architectural firms
Job printers
Copyshops and printshops
Printing industry businesses
(document printing)
Printing industry businesses
(Display Graphics)
Customers (examples)
Corporate printing
Commercial printing
Data centres
Central repro depart-
ments (document
production)
Professional office
environments
Engineering office
Design departments
Customer environments
Technology leader in high volume printing
All data flows
Integrated systems
Archiving of print data
Production monitoring
Output management software
24-hour service, 7 days a week
Distributed printing
Professional Services
High volume digital printers/copiers
Production printers
High speed scanners
Workflow software
Professional Services and Facility Services
Departmental printers and copiers
Workflow software
Professional Services and Facility Services
Print management and document archiving software
Productive black-and-white and colour printers
Integrated copying systems
Professional Services
Print management and document archiving software
Productive wide format black-and-white printers
and copiers
Services (training courses, installation and consultancy)
Professional Services
Black-and-white and colour production printers/copiers
Professional Services
Very high volume black-and-white and colour printers
Print management and document archiving software
Professional Services
Productive printers for the outdoor market
Wide format print solutions (billboards/colour posters)
Dedicated media and colour management support
Print management software
Professional Services
Océ’s areas of expertise
The world of Océ
Remain number one in Continuous Feed Systems
Achieve number two position in Cutsheet Systems
One of the top-three suppliers in:
High volume applications
Document management systems
Facility Services
One of the top-three suppliers in:
Production printers and copiers
Document management systems
Remain market leader in wide format black-and-
white printing and copying
Become market leader in mid- and high volume
wide format colour printing and copying
Significant growth in software and services
Remain market leader in wide format black-and-
white printing and copying
Become market leader in mid- and high volume
wide format colour printing and copying
Significant growth in software and services
Significant growth, resulting in a top position
One of the top-three suppliers
Become market leader in mid- and high volume
printers
Remain market leader in print management
software for graphics applications
Océ’s ambitions
Océ’s products and services
Hardware
Output devices:Wide range of production printers and copiers
For wide format and smaller formats
On roll or for cutsheet
For black-and-white and colour
From low to very high speeds
For all commonly used printer languages and data flows
For mid- to very high volumes
Finishing equipment for:Document finishing
Binding of documents
Order handling
Preparing for despatch
Software
Input management:Image digitisation (scanning)
Character recognition
Document interpretation
Document composition
Digital data and process management:Document creation and revision
Digital archiving
Document flow management
Making documents ready for print
Output management:Printing of documents
Personalised mail shots
Digital book printing
Distributed printing
Production planning, monitoring and control
Document distribution
Accounting, invoicing
Business Services
Document flow analysis
System design
System installation and integration
User training
Professional maintenance
Facility Services
Financing
Xerox
Xerox
Heidelberg Digital
Canon
Ricoh
Xerox
Hewlett Packard
Canon
Ricoh
Xerox
Hewlett Packard
Ricoh
Xerox
Hewlett Packard
Ricoh
Xerox
Canon
Ricoh
Xerox
Hewlett Packard
Epson
Nur
Vutek
Scitex
Competitors include
The world of Océ
8
Key figures
2001 2000 › € million
Total revenues 3,233.6 3,223.9
Increase on previous year (%) 0.3 13.6
Autonomous increase on previous year (%) –1.3 4.0
Gross margin 1,317.1 1,349.1
As % of total revenues 40.7 41.8
Operating income () 224.7 282.4
Increase on previous year (%) –20.4 13.8
As % of total revenues 6.9 8.8
As % of average balance sheet total 7.1 9.1
Operating income before depreciation and amortisation goodwill () 418.9 476.9
Net income* 105.1 151.7
Increase on previous year (%) –30.8 15.0
As % of total revenues 3.2 4.7
As % of average shareholders’ equity 11.1 16.8
Total assets 3,127.5 3,215.7
Equity 908.6 989.4
Dividend (ordinary shares) 48.8 49.5
Net capital expenditure 156.9 144.6
Number of employees at November 30 22,472 22,253 employees
Per € 0.50 ordinary shareBasic earnings** 1.19 1.76 euro
* 4.87 5.61
Cash flow** 3.47 4.06
Shareholders’ equity 10.13 10.91
Dividend 0.58 0.58
Number of € 0.50 ordinary sharesAverage number outstanding 85,241,097 84,400,936 shares
Potential increase from conversion/options 714,355 1,130,982
Diluted earnings per € 0.50 ordinary share 1.18 1.74 euro
Share pricesYear’s highest 18.90 18.90
Year’s lowest 6.15 11.55
Year end 10.20 17.75
* Key figures are based on figures excluding exceptional items.
** Basic earnings after exceptional items amount to € 0.08 (2000: € 1.76) and cash flow
after exceptional items amounts to € 2.35 (2000: € 4.06).
Report of the Board of Supervisory Directors
To the Annual General Meeting of Shareholders ofOcé N.V., Venlo.
Annual Report We present to you the Annual
Report for 2001 as drawn up by the Board of
Executive Directors. The Annual Financial State-
ments included herein have been examined by the
auditors PricewaterhouseCoopers .. in close
cooperation with Océ’s Internal Audit Department.
As can be seen from the Annual Financial State-
ments, Océ closed the financial year with a modest
positive result, after making a provision of € 125
million (gross). The Supervisory Board supports
the measures of the Board of Executive Directors
which have led to this provision and which should
lead to a structural recovery in the position and
results of Océ.
We have discussed the Annual Financial State-
ments with the auditors. The auditors have issued
an unqualified opinion which is set out on page
91 of this Annual Report. We have approved these
Annual Financial Statements and recommend
that you adopt them, as well as the dividend pro-
posal, in accordance with the proposal by the
Board of Executive Directors.
Supervision In 2001 the Supervisory Board held
consultations at regular intervals and also met
formally on six occasions.
Apart from the general course of affairs within the
business, including the commercial, financial and
technological developments, we also discussed the
acquisitions and cooperation policy. Special
attention was devoted to the corporate strategy,
involving discussions of the positions of each of
the Strategic Business Units. In particular we
looked at the growing importance of software and
services in the area of information technology and
assessed the related issues. We also talked with the
Board of Executive Directors about plans to re-
align the company's organisation structure. The
objective of this realignment is to make the orga-
nisation link up better with the corporate strategy,
which focuses on the ongoing digitisation of the
markets in which Océ operates.
At a separate meeting the Human Resources
Policy of the Board of Executive Directors was
discussed. The Supervisory Board also discussed
– in the absence of the Board of Executive Direc-
tors – the composition and functioning of that
Board and matters relating to its remuneration as
well as the functioning of the Supervisory Board
itself.
Supervisory Board changes Mr. P. Bouw and
Mr. J.V.H. Pennings are due to retire by rotation
this year. They have made themselves available
for re-election and we propose that they be re-
appointed for a further four-year period of office.
As announced at last year's Annual General
Meeting, the undersigned will retire as a super-
visory director of the Company with effect from
the close of the Annual General Meeting on
March 6, 2002. Our Board has decided to appoint
our fellow supervisory director, Mr. J.L. Brentjens,
as its chairman with effect from the same time.
Developments The year 2001 turned out to be a
difficult year because of the declining economy,
which was further exacerbated by the dramatic
attacks in the United States. Nevertheless Océ
was able to maintain revenues at the previous
year’s level and achieve an operating result which
was acceptable given the circumstances. The
Board of Executive Directors has taken drastic
measures to support the fastest possible recovery
in revenues and income growth. We therefore
view the future developments with confidence.
The Board would like to express its special ap-
preciation to the Chairman and members of the
Board of Executive Directors and to all employees
for the many efforts they made and the results
they achieved over the past year.
January 29, 2002
H.B. van Liemt, Chairman
9
Report of the Chairman of the Board of Executive Directors
During the year 2001 the positive development
shown in the previous year did not continue.
This was largely due to the slowdown in economic
growth that occurred in all markets. As a result of
this slowdown many companies postponed invest-
ment decisions, which was also reflected in sales of
new document and information systems and of
hardware. In all Strategic Business Units sales of
new machines were lower than in the previous
year, albeit to differing degrees. Depending on the
Business Unit the decrease was between 13 and
17%. Against this, however, revenues from main-
tenance, supplies and services (Facility Services
and Professional Services) increased, which com-
pensated in full for the lower machine sales. This
part of revenues is less affected by the economic
cycle and currently represents 63% of total
revenues.
Océ’s revenues in 2001 equalled those of the year
2000, which can be described as a good achieve-
ment given the economic circumstances. There
was an autonomous decline of 1% in revenues.
Lower relative margins resulted in a decrease of
31% in net income before exceptional items to
€ 105 million.
During the year the average exchange rate of the
Euro weakened against the American dollar but
strengthened against the Japanese yen.This meant
that Océ’s international competitive position
improved compared to its American competitors
but deteriorated compared to those in Japan.
Despite the decrease in the results, Océ’s market
position has not deteriorated.The company has
anticipated market developments in good time,
and as a result, it has an excellent portfolio of hard-
ware, software and services. Operational effective-
ness and efficiency have been further improved.
Océ in 2001: implementation of the strategic
direction Océ’s strategy is based on value creation,
which enhances the company’s market value.
This implies:
– supplying products with higher added value;
– working to the highest operational standard;
– investments, disposals, acquisitions, joint
ventures and alliances.
During 2001 this strategy was implemented.
Océ introduced a great many new products in all
Business Units. Particularly the 100 ppm Océ
400 black-and-white printer/copier for the
office market and the Océ 700 colour printer
were very important product launches. These
products have been excellently received by the
market. New machines were also introduced for
the technical printing market, featuring substan-
tially extended functionality for operating in net-
works. In high volume Production Printing Océ
developed major new software products in 2001.
The fact that the effect of these introductions was
not reflected in an increase in the gross margin is
the result of lower revenues from machine sales.
On the operational side a number of develop-
ments led to visible results in 2001. Excluding
acquisitions and exchange rate effects, operational
expenses remained constant compared to 2000,
which reflects the increased attention that was
devoted to cost reduction.
Stocks were reduced as a result of specific logistics
programmes for direct delivery of pre-configured
machines and for centralising and outsourcing the
distribution of components. Expressed as a per-
centage of revenues, stocks decreased from 13.7%
in 2000 to 11.3% in 2001. The aim is to achieve a
level of stocks that is equivalent to 11% of
revenues.
During 2001 programmes for outsourcing the
lease activities were initiated. This is a multi-year
process which must result above all in an im-
proved level of service to customers and a higher
return on capital invested for Océ. These activities
are progressing well. The initial results will start to
show in 2002. Contracts have been concluded
with Telia Finans and De Lage Landen Inter-
national .. for the outsourcing of the lease
portfolio.
10
Report of the Chairman of the Board of Executive Directors
The past financial year also saw the successful
integration of the operational activities in Scandi-
navia, in Spain and Portugal, and in the United
Kingdom and Ireland.
Also in terms of investments and acquisitions,
2001 was an important year. During the year an
investment of € 40 million was made in the processdrum plant and the colour toner plant in Venlo.
From mid-2002 onwards these will handle the
manufacture of the drums and toners that have
been developed by Océ for the Océ 700
colour printer.
Fully in line with our aspirations in the high-
growth segment of Display Graphics, the Profes-
sional Imaging Division of Gretag was acquired
shortly after balance sheet date. This acquisition,
which also comprises Raster Graphics and Onyx
Graphics, is of great strategic value for Océ.
Via this acquisition Océ has achieved a top-three
position in the mid-volume and high volume
segments of Display Graphics.
In the important growth market of Facility Ser-
vices, Practical Print Solutions Ltd. was acquired
in the United Kingdom in November 2001.
This company, which is active in print manage-
ment and print procurement, adds a new activity
to the facility services package that Océ has to
offer.
Restructuring: consequence of the strategic
direction Océ is committed to strengthen its po-
sition further in 2002 by anticipating the changes
that are taking place in our markets. Via an inten-
sive reallocation and restructuring process Océ
will shift the focus of its activities towards the
market segments in which the company, given its
market position, its range of products and services
and its level of technology, can achieve substan-
tially profitable growth. In particular these are the
markets which require a combination of high pro-
ductivity with high print quality. The customer-
specific hardware and software solutions that Océ
can offer in these areas give the company a very
strong basic position.
That means that in the years ahead Océ will
gradually restructure certain segments of its activi-
ties in the office market. This relates to those acti-
vities that do not contribute sufficiently to the
sought-after value creation. This repositioning
will be accompanied by disposals.
At the same time we are also implementing a re-
structuring operation which is a consequence of
changes in the markets in which we operate. By
doing this we are anticipating the convergence of
the operational areas of two of our Strategic
Business Units: Document Printing Systems and
Production Printing Systems.
The products and systems of these Strategic
Business Units are increasingly being deployed in
the same user environments. Amalgamation of
activities in these markets will lead to growth
thanks to new product/market combinations and
synergy benefits in development programmes,
marketing, sales and service.
This will require a number of changes in the or-
ganisation of the head office and of the operating
companies. In 2002 the integration of the activi-
ties will result in the creation of a new Strategic
Business Unit: Digital Document Systems ().
Within separate business groups will con-
centrate on Corporate Printing, Commercial
Printing, Software & Professional Services and
Facility Services. Furthermore the Strategic
11
Report of the Chairman of the Board of Executive Directors
Business Unit Wide Format Printing Systems will
comprise the business groupsTechnical Document
Systems, Display Graphics Systems and Imaging
Supplies.
These developments, which are a logical conse-
quence of Océ’s long-term strategic objectives,
will be accompanied by a reduction in personnel
and a write-off of stocks and residual values of
products in the segments in which the activities
are to be restructured. This calls for a provision for
exceptional charges of € 125 million, charged to
the profit of the 2001 financial year.
Implementation of this restructuring process will
be handled with the greatest care as regards the
social consequences.
In the year 2001 Océ did not achieve the results
that we had in mind. However, this in no way de-
tracts from the company’s strength. Océ is a pro-
fitable organisation with a good market position
and a very robust portfolio of products and tech-
nologies. This, combined with implementation of
the measures described above, gives us firm
confidence in the future.
Over the past year Océ asked a lot of its employ-
ees. They responded to the challenges with great
dedication and we would like to express our thanks
to them for their efforts.
We are also grateful to our customers, suppliers
and partners for the confidence they placed in
Océ. Our thanks also go to our shareholders for
their undiminished support for Océ.
R.L. van Iperen, Chairman
12
Report of the Board of Executive Directors
Report of the Board of Executive Directors
Trends and strategy
The strategic direction of the Océ Group is closely
linked to market and technological developments
and to Océ’s objectives. This has major organisa-
tional consequences.
Océ’s operations involve information management
and, more specifically, document management
activities. In those activities several clear trends can
be distinguished. First of all, the output of infor-
mation will grow very rapidly as a consequence of
digital processing and distribution. Although by no
means all documents are printed out, the volume
growth of printed documents will still amount to
some 5% per year over the years ahead. In addi-
tion, the use of internet, decentralised printing
and the application of advanced technologies will
change the way in which documents are distri-
buted and printed and the way in which they are
used. The storage and retrieval of electronic
documents has also become an essential element
in the document management solutions that Océ
specialises in.
All of this implies an expansion of activities in the
areas of software and services. Specifically for Océ
this means that over the next four years the share
of services will increase from 63% to 80% of
revenues. Despite this, hardware (particularly
printers) will always remain a central element in
Océ’s product offerings and its specific compe-
tencies.
In addition to these market developments, tech-
nological developments are also of importance to
the Océ Group. As a result of the fast pace of di-
gitisation, copying is very quickly being replaced
by printing, whilst software developments are the
drivers of the principal changes in numerous as-
pects of document management. Hardware will
remain important; however the differentiation in
market offerings will be determined by module-
based and flexible document management
systems.
Colour will become increasingly important.
However, the use of colour is still far from ma-
ture; significant developments are expected in the
next few years. In black-and-white printing
growth will mainly continue to take place in high
volume cutsheet printing.
The diagram below illustrates the expected growth
in the activity areas in which Océ operates and the
relative share of these activities in total revenues.
14
Copying/printing products
Software & Professional Services
Service & Support
Facility Services
5
20
11
26
37
3
49
11
Annual Average Growth Rate in %
till 2005 (Europe and )
Océ’s revenues as %
Report of the Board of Executive Directors
As a strategic objective Océ seeks to achieve a
top-three position in all market segments in
which the company is active.
Over the medium term Océ also seeks an annual
growth of 10% or more in revenues and income.
The aim is to increase profitability in terms of
return on total assets and return on equity to a
sustainable level of 12% and 18% respectively in
2005. All activities that do not contribute to
achieving these objectives will be restructured;
however, activities that can make this contri-
bution will receive extra attention in terms of
investments and expansion. Alliances and acqui-
sitions will continue to be required so as to meet
the objectives.
The Océ business model is based on the company’s
strategic strengths in technology and market ap-
proach. Océ’s products are characterised by their
reliability, productivity, durability and low totalcost of ownership. Via a direct customer approach
in sales and services it is possible to anticipate and
respond immediately to market needs.
This is the background against which the strategic
actions described in the report of the Chairman
of the Board of Executive Directors have to be
seen. An organisation that is focused on specific
market segments will underpin the achievement
of the objectives within the framework of the
market and technological developments outlined
above.
The organisational consequences of the restruc-
turing operation, which will materialise in 2002,
are shown in diagram form below.
15
Wide Format Printing SystemsDigital Document SystemsStrategic Business Units
Operating Companies
Research & Development
Market segments
Cutsheet Systems
Océ organisation with effect from December 2002
Continuous Feed Systems Wide Body Systems Software
Corporate
Printing
Commercial
Printing
Software &
Professional
Services
Facility
Services
Technical
Document
Systems
Display
Graphics
Systems
Imaging
Supplies
The crucial difference between good and excellent: Océ creates it
Financial review
Report of the Board of Executive Directors
Results
Total revenues were € 3,234 million, equal to the
previous financial year. Excluding the effect of
exchange rates, revenues decreased by 1%.
Operating income went down by 20% to € 225
million. Cash flow (net income plus depreciation)
decreased by14% and amounted to € 299 million.
On a per ordinary share basis net income before
exceptional items was 32% lower at € 1.19 (2000:
€ 1.76) and cash flow decreased by 15% to € 3.47
(2000: € 4.06). Expenditure on Research &
Development rose by 2% to € 203 million, which
corresponds to 6.3% of total revenues (2000:
€ 199 million and 6.2% of total revenues).
Gross capital expenditure on Property, plant and
equipment amounted to € 130 million (2000:
€ 114 million). An amount of € 115 million
(2000: € 136 million) was released from depreci-
ation and disposals.
In the market forWide Format Printing Systemsrevenues rose during the year by 1% to € 912
million. If acquisitions and exchange rate effects
are excluded, revenues were equal to those of the
previous year. Sales of machines were down by
13%. This decrease was due to the postponement
of investment decisions by customers. Thanks to
the improved range of products for Technical
Document Systems Océ was able to retain its
leading position and market share. Software and
services fully compensated for the decrease in
machine sales.
In Display Graphics, Océ’s position has been
strengthened by acquisitions, with the result that
Océ now occupies a top-three place in the mid-
volume and high volume segments.
In the market for Document Printing Systems re-
venues declined by 1% to € 1,529 million. On an
autonomous basis revenues were 3% lower than
in the previous year. Sales of machines were down
by 17%. During the year the 100 ppm Océ
400 black-and-white printer/copier and the
colour printer, the Océ 700, were introduced.
Sales of the Océ 400 were clearly affected by
the global slowdown in economic growth. In view
of the positive market reception for this machine,
its sales are expected to pick up speed in 2002.
Sales of the Océ 700 were still limited as a
result of the production start-up.
In the market for Production Printing Systemsrevenues grew by 3% to € 793 million. Machine
sales were 15% lower than in 2000. Strong growth
in software and services meant that revenues,
after adjustment for acquisitions and exchange
rate effects, were equal to those for 2000. In this
professional market, too, Océ’s position and
market share have remained unaffected.
In the Printing & Publishing segment Océ’s reve-
nues went up by 19%.
In the market for Facility Services revenues in-
creased by 25%. This increase occurred both in
the United States and in Europe.
Revenues from Imaging Supplies were practically
the same as those in the year 2000. The rationali-
sation and renewal of the product range and of
the logistics operations, as described in the pre-
vious year’s annual report, was successfully con-
tinued during the year under review.
Dividend
For the 2001 financial year Océ proposes to dis-
tribute a dividend of € 0.58 (2000: € 0.58) per
ordinary share of € 0.50 nominal.This dividend in-
volves an amount of € 48.8 million (2000: € 49.5
million). If the General Meeting of Shareholders
adopts this proposal the final dividend will amount
to € 0.43; the interim dividend amounted to
€ 0.15. It is proposed to distribute the final divi-
dend fully in cash. The pay-out ratio amounting
to 48.1% of the net income before exceptional
items (2000: 33.4%) is higher than the standard
set in our dividend policy.
An unchanged dividend per ordinary share is
warranted since the Board of Executive Directors
takes the view that the lower net income in 2001
is not of a structural nature.
19
Report of the Board of Executive Directors
Prospects
The results for 2001 were strongly affected by the
global slowdown in economic growth. This re-
sulted in the postponement of investment deci-
sions by customers. Océ responded to this by
implementing a tight control of operating costs
and working capital. In addition a number of
important new hardware and software products
were introduced over the past financial year. New
products are also scheduled for launch in the year
ahead.
In 2002 Océ will initiate a major restructuring
process which will make the organisation link up
better with the ongoing digitisation in the
markets in which Océ operates. Océ is preparing
to benefit immediately from an improvement in
economic circumstances. However, such im-
provement is not expected to occur before the
second half of 2002.
During the first half of 2002 the results are
expected to be below those of the corresponding
period of 2001. Océ expects that the results in
the second half of the year, supported in part by
the initial effects of the restructuring operation,
will be higher than in the second half of 2001.
Finance
Revenues In 2001 total revenues amounted to
€ 3,234 million. On an autonomous basis reve-
nues decreased by 1%.
Revenues from sales amounted to € 1,836 million,
which was 3% down on the previous year.
Earnings from rental and service rose by 5% to
€ 1,272 million. Interest income from financial
leases increased by 8% to € 125 million.
Facility Services activities currently contribute
11% of revenues, as compared to 9% in 2000.
For Imaging Supplies these percentages are 12%
in 2001 as well as 12% in 2000.
The share of digital in total revenues rose from
54% in 2000 to 56% in 2001. Calculated as a
percentage of total earnings from machines and
the related earnings from software and service –
i.e. excluding Imaging Supplies – the share of
digital increased to 65% of revenues (2000: 63%).
Gross margin As a percentage of total revenues
the gross margin was 40.7% (2000: 41.8%). The
main reasons for this decrease are:
– the still growing importance of Facility Services
in total revenues; Facility Services has a lower
gross margin than Océ’s other activities, but it
also has a different operational cost structure;
– sales of machines were lower than in 2000. In ad-
dition there were product mix effects and some
pressure on prices. In the fourth quarter the posi-
tive influence of the new products clearly showed
through in the gross margin.
The net effect of exchange rates and the hedging
policy that was pursued was positive.
20
3500
2800
2100
1400
700
0 97
Total revenues
› € million
98 99 00 01
300
240
180
120
60
0 97
Operating income
› € million
98 99 00 01
Report of the Board of Executive Directors
The average interest realised on the lease portfolio
amounted to 10.7% (2000: 10.5%). In the
financial lease contracts the interest percentage is
fixed for the entire duration of the contracts.
Operating income Operating income decreased
by 20% to € 225 million (2000: € 282 million).
This is equivalent to 6.9% of total revenues
(2000: 8.8%) and corresponds to 7.1% of the
average balance sheet total (2000: 9.1%).
Development of total revenues by 2001 2000
Strategic Business Unit total revenues total revenues
› € million as % › € million as %
Wide Format Printing Systems 912 28 901 28
Document Printing Systems 1,529 47 1,551 48
Production Printing Systems 793 25 772 24
Total 3,234 100 3,224 100
Total revenues by geographical areas 2001 2000total revenues total revenues
› € million as % › € million as %
Germany 392 12 405 13
Netherlands 279 9 260 8
United Kingdom 219 7 219 7
France 220 7 220 7
Rest of Europe 568 17 595 18
United States 1,333 41 1,287 40
Rest of the world 223 7 238 7
Total 3,234 100 3,224 100
Research & Development () Expenditure on
rose to € 203 million (2000: € 199 million),
which corresponds to 6.3% of total revenues
(2000: 6.2%). In 2001 a repayment liability in
respect of development credits was added to
expenditure for the colour printer launched during
the year (€ 2.3 million). Further repayment lia-
bilities are dependent on the success of this
colour printer.
21
10
8
6
4
2
0 97
Operating income as % of
total revenues
98 99 00 01
250
200
150
100
50
0 97
Research & Development
› € million
expenditure
costs
98 99 00 01
Report of the Board of Executive Directors
General administrative and selling expenses
The general administrative and selling expenses
increased from € 877 million in 2000 to € 893
million (+1.8%). Expressed as a percentage of
total revenues these expenses rose to 27.6% (2000:
27.2%). On an autonomous basis these expenses
remained constant thanks to tight cost control.
Financial expense (net) Financial expense (net) –
the balance of interest paid and other interest
received – rose from € 61 million in 2000 to € 69
million in 2001. Based on an average interest rate
of 5.65% (2000: 5.30%) the average interest-
bearing capital decreased by € 23 million to € 1,161
million.The increase in the interest charges is
largely attributable to the effects of using
derivatives.
Interest income from financial leases amounted
to € 125 million in 2001 (2000: € 115 million).
Income taxes The average taxation charge
amounted to 31.1% (2000: 30.3%). A further
increase in the tax charge is expected in the years
ahead.
Net income Net income from ordinary activities
fell by 31% to € 105 million; this corresponds to
11.1% of the average shareholders’ equity (2000:
€ 152 million and 16.8%). As a percentage of
total revenues, net income before exceptional
items amounted to 3.2% (2000: 4.7%). Basic
earnings per share, calculated on the basis of the
average number of ordinary shares outstanding,
decreased by 32% to € 1.19 (2000: € 1.76).
After exceptional items of € 95 million, net
income decreased to € 10 million.
Commercial and financial activities
In 2001 Océ’s activities were again characterised
by a combination of commercial and financial
services, each with their own income profile and
balance sheet characteristics.
In assessing the financial position of the company
as a whole, a distinction must be made between
these two types of activities. The revenue from
financial activities is formed by the interest from
financial leases. The costs comprise the costs of
financing the lease portfolio and the administra-
tive and selling expenses. Where the financial
activities are financed from interest-bearing capi-
tal, it has been assumed that this has been done
fully on a fixed-interest basis.
The costs of financing are then allocated on the
basis of the average amount of fixed interest-
bearing capital. For the administrative and selling
expenses, including provisions for doubtful debt-
ors, a cost level has been applied which corre-
sponds to that of external captive lease companies
with similar activities. After expiry of the lease
contracts the machines, provided they have not
been written off in full, are transferred to the
commercial activities at their residual book value.
For the financing of the financial activities a ratio
of 0.15 between the equity and the balance sheet
total is used. This ratio is likewise derived from
captive companies in the financial services in-
dustry which publish their own annual accounts.
The remaining part of the equity is allocated to
the commercial activities.
The table on the next page gives a breakdown of
the salient financial figures for the two company
activities.
22
Report of the Board of Executive Directors
23
2001 2000 › € million
CommercialRevenues 3,109 3,109
Gross margin 1,192 1,234
Operating income 135 200
Financial expense (net) 17 13
Result before taxation 118 187
Income taxes 37 57
Result after taxation 81 130
Net income* 79 128
Shareholders’ equity 732 809
Minority interest 41 42
Group equity 773 851
Interest-bearing liabilities 254 200
Provisions and other liabilities 925 905
Balance sheet total 1,952 1,956
RatiosOperating income as % of average balance sheet total 6.8 10.5 per cent
Net income as % of average shareholders’ equity 10.2 17.4
Shareholders’ equity as % of balance sheet total 37.5 41.4
FinancialInterest from financial leases 125 115
General administrative and selling expenses 35 32
Financial expense (net) 52 48
Result before taxation 38 35
Income taxes 12 11
Result after taxation 26 24
Shareholders’ equity 176 180
Interest-bearing and other liabilities 1,000 1,019
Balance sheet total 1,176 1,199
RatiosOperating income as % of average balance sheet total 7.5 7.4 per cent
Net income as % of average shareholders’ equity 14.7 14.3
Shareholders’ equity as % of balance sheet total 15.0 15.0
* Based on figures before exceptional items.
Report of the Board of Executive Directors
Use of funds and finance
Gross capital expenditure In 2001 Océ’s gross
capital expenditure on Property, plant and equip-
ment amounted to € 130 million (2000: € 114
million). An amount of € 115 million (2000:
€ 136 million) was released from depreciation and
disposals.
Rental equipment and financial lease receivables
The book value of rental equipment decreased by
€ 54 million to € 179 million (a decrease of 23%).
The capitalised value of financial lease receivables
(including short term accounts receivable) de-
creased from € 1,175 million in 2000 to € 1,153
million (a decrease of 2%). The aggregate value of
rental equipment and financial lease receivables
decreased by 5% and represented 42.6% of the
balance sheet total (2000: 43.8%).
The balance sheet value of rental equipment is
calculated on the basis of the all-in costs, less
depreciation. Financial lease receivables are valued
at the net present value of the contracted lease
instalments plus the residual value.
Geographical spread of assets 2001 2000
› € million as % › € million as %
Germany 538 17 498 15
Netherlands 586 19 609 19
United Kingdom 262 8 257 8
France 201 6 183 6
Rest of Europe 422 14 439 14
United States 1,000 32 1,087 34
Rest of the world 119 4 143 4
Total 3,128 100 3,216 100
Interest-bearing capital At the 2001 year end the
interest-bearing capital amounted to € 1,141
million (2000 year end: € 1,220 million). Of this
amount, € 754 million (66%) had been taken out
over the long term.
Group equity Group equity decreased to € 949
million (2000: € 1,031 million). This decrease was
the result of distribution of dividend charged to
General reserve (- € 42 million), foreign currency
translations (- € 21 million), conversion of deben-
tures (+ € 6 million), purchase of shares in the
company (– € 24 million) and other movements
(– € 1 million).
Group equity as a percentage of the balance sheet
total amounted to 30.4% (2000: 32.1%). The
ratio between interest-bearing borrowings and
Group equity was 120:100 (2000: 118:100).
The shareholders’ equity per ordinary share, calcu-
lated on the basis of the average number of ordi-
nary shares outstanding at the end of the financial
year, amounted to € 10.13 (2000: € 10.91).
24
1500
1200
900
600
300
0 97
Rentals and leases
› € million
rental equipment
financial lease receivables
including short term financial
leases
98 99 00 01
Report of the Board of Executive Directors
Cash flow The cash flow from operational acti-
vities amounted to € 348 million and improved
strongly by € 309 million compared to the pre-
vious financial year.
This improvement was the net result of the de-
crease in net income, lower trade creditors and
movements in other working capital items on the
one hand, and of lower (net) investments in rental
machines and of the significantly lower levels of
stocks and debtors on the other. The measures
taken to reduce stocks clearly made themselves felt.
Financial lease receivables were also lower.
The cash flow for investment activities amounted
to € 175 million, which was considerably higher
than in the preceding year (2000: € 58 million).
This development is due to acquisitions (€ 37
million), investments in intangible assets and in
property, plant and equipment and other invest-
ments (€ 54 million) and fewer disposals of fixed
assets (€ 26 million).
The cash flow from financing activities amounted
to € 147 million negative. Long term debt was
substantially reduced compared to the previous
year. The increase in short term loans was less
than in the previous financial year. Purchase of the
company’s own shares to cover commitments
under the stock option plan involved a cash out-
flow of € 24 million. The dividend paid in cash
was € 37 million higher than in the previous year,
mainly as a consequence of terminating the
optional dividend in 2001.
25
5
4
3
2
1
0 97 98 99* 00 01*
Cash flow and basic earnings
per share
amounts in euro per € 0.50
ordinary share
cashflow per share
basic earnings per share
before exceptional items
0.75
0.60
0.45
0.30
0.15
0 97 98 99 00 01
Dividend per share
amounts in euro per € 0.50
ordinary share
*
Statement of cash flow* 2001 2000 › € million
Cash flow from operations 348 39
Cash flow from investment activities –175 –58
Free cash flow (before dividends and financing activities) 173 –19
Financing activities and dividends –147 9
Exchange rate effects –7 –6
Change in cash 19 –16
* For details see pages 60 and 61.
Report of the Board of Executive Directors
Credit facilities At the end of the financial year a
total of € 892 million of unused credit facilities
were available to the Océ Group, which are in the
form of multi-year stand-by credit contracts.
Financial leases
In the markets in which Océ operates, financing is
an essential component of the product offering.
Océ offers the possibility of financial leasing and
can therefore be regarded as a one stop supplier.The company offers financing via lease program-
mes comprising a wide range of choices.
Océ’s strength lies in the combination of leasing
and possible remarketing after expiry of the con-
tract. For this purpose the company operates re-
manufacturing programmes which extend the
technical and economic lifetimes of its machines.
Outsourcing of lease activities Financing via lease
programmes is a very important marketing in-
strument for Océ and will remain so. In addition,
this activity generates a stable and profitable flow
of interest income and provides fiscal financing
benefits.
However, it makes a high demand on capital; its
balance sheet value represents approximately 40%
of the total assets. Besides, the return on these
assets (), although stable, is below the return
that Océ seeks to achieve. Furthermore, financing
is not one of Océ’s core competencies. For these
reasons it has been decided that the announced
study into the possibilities for transferring the lease
portfolios to an external lease company should
not be limited to the smaller countries.
The study, which was conducted in 2001, showed
that the services provided by potential partners
are in line with what Océ wants to offer its cus-
tomers, such as a fast settlement of contracts and
administrative processes. In addition, thanks to
their specialisation and economies of scale, the
partners can provide additional benefits, such as
the development of systems and improved access
to the capital market. Océ has therefore decided
that the bigger countries will also be included in
these developments.
At the end of 2001 Océ signed an agreement with
Telia Finans for the provision of private label
leases for the Scandinavian market. A Letter of
Intent has been effectuated with De Lage Landen
International .. relating to cooperation in the
form of a joint venture in a number of important
European countries.
The further details of these partnership agree-
ments will be worked out during the forthcoming
financial year. The parties intend to start the co-
operation with customers that sign new leases.
The basic principle is that the relationship with
customers will not be disrupted. After the start-up
phase the existing portfolio will, where possible,
also be transferred. In Europe this cooperation
will be structured further over the next two years.
26
750
600
450
300
150
0 97
Investments
› € million
98 99 00 01
2001 2000 › € million
Investments in:Property, plant and equipment (net) 107 65
Intangible fixed assets 43 –
Rental equipment (net) 50 80
New financial lease receivables 438 520
Total 638 665
Report of the Board of Executive Directors
As regards the portfolio in North America and
the rest of the world the experiences gained in
Europe will serve as a guidance for actions to be
taken.
The financial resources that are released due to
the outsourcing of the lease portfolios will be used
in part to reduce external funding. In addition,
the expansion of Océ’s commercial activities will
be financed from those proceeds.
The financial consequences of the above measures
will depend on the speed with which they are im-
plemented and on the utilisation of the resources
that are released. However, there will be substan-
tially lower income from interest, but also lower
interest costs and other charges linked to finan-
cial lease activities. On balance the income from
financial leasing will decrease. Initially this will
possibly lead to a temporary decrease in earnings
per share.The longer term influence will depend
on how the released financial resources are utilised.
The return on capital invested will, however,
show a structural increase as a result of the
outsourcing of the lease portfolio.
Accounting The lease programmes that are avail-
able on the market can be split into financial
leases and operational leases. The latter type are
also referred to as rentals. In the case of financial
leases the economic risk passes to the customer.
The duration of these lease contracts is three to
six years and is usually nearly equal to and some-
times even longer than the depreciation period
applicable to the relevant machines. As a result,
the residual value risk is limited.
At the moment when the financial lease contract
is signed, the selling price of the machine is re-
corded as revenue in the form of the net present
value of the financial lease instalments. During
the contract period the interest income is booked
as revenue. Revenues from maintenance and
service are accounted for separately.
Machines for which an operational lease contract
has been concluded are rented to customers for
durations of, normally, one to three years.
The rental instalments from these contracts are
included in the revenue for the reporting period
in which they fall due. The rental instalments
cover the cost of use, servicing and interest.
In 2001 51% (2000: 50%) of all direct sales of
machines were installed on the basis of financial
leases. In Document Printing Systems this per-
centage was considerably higher than in Wide
Format Printing Systems and Production
Printing Systems.
Interest income from financial leases went up by
8% to € 125 million (2000: € 115 million).
27
The world of Océ is expanding, creating space for its users
Operational developments by market segment
Report of the Board of Executive Directors
Océ’s activities in 2001 can be subdivided into
the following market segments:
Wide Format Printing Systems
Document Printing Systems
Production Printing Systems
Facility Services
Imaging Supplies
This organisational subdivision was still in place
during the entire year under review and will
therefore be used in this report.
The revenues of Facility Services and Imaging
Supplies are included in the revenues of the three
Strategic Business Units: Wide Format Printing
Systems, Document Printing Systems and
Production Printing Systems.
Wide Format Printing Systems
The Strategic Business Unit Wide Format
Printing Systems comprises two business groups,
i.e. Technical Document Systems and Display
Graphics.
Océ’s position in the Technical Document
Systems segment Especially for technical printing
environments Océ supplies a range of wide format
printers, scanners, software, supplies and services
for the printing and reproduction of big drawings,
mainly in black-and-white but to an increasing
extent also in colour. In this environment Océ is
market leader, offering a complete range of hard-
ware, software and services.
The machines, which have been almost solely
digital for some time now, are principally used in
industrial companies, mechanical engineering
works, construction companies, architectural
offices, public utilities and governments.
Many Océ machines can also be found in special-
ised printshops (job printers), which are increas-
ingly handling the printing activities for busi-
nesses. Since the introduction of the Océ 9800
high volume wide format printer/copier in 1995,
Océ has steadily strengthened its leading position
in this market. Job printers have further expanded
their services by offering scanning and poster
printing. The growing use of internet provides job
printers with the infrastructure to extend their
customer base further. For the past few years job
printers have been offering their customers the
possibility of using Océ Repro Desk software to
prepare and check print assignments which are
then sent to them via internet.
Océ is able, by means of regular updates and ex-
panded software versions, to protect the relatively
high investments made by the customer and thus
keep the cost of ownership at a competitive level.
31
Report of the Board of Executive Directors
Market developmentsThe need for new products,
particularly for software to control the hardware,
increased sharply during the year under review.
As ever more sophisticated programs became
available for such tasks as printing and distribution
management, archiving and document manage-
ment, the need for consultancy also increased.
The growing importance of internet has brought
a rapid increase in the need for special software
for the remote access of Océ printers via internet
to transmit print assignments; the software that
Océ supplies for these applications links up well
with that need. In addition, numerous organi-
sations are in the process of converting collections
of drawings into a digital archive. Océ’s software
and services for the scanning of analogue docu-
ments and the management of digital documents
provide the ideal solution.
The job printing segment is also continuing to
grow, partly due to an outsourcing trend in big
companies, in which printing does not form one
of the primary processes. In these cases Océ is
eminently able to provide its customers with the
instruments they need to optimise their revenues
and margins.
Although the printing volume of technical docu-
ments is still chiefly in black-and-white, the share
of colour is growing. In a number of specialist
applications (such as drawings of energy net-
works or circuit boards) colour has become highly
functional. In many organisations, therefore,
Océ’s wide format black-and-white and colour
printers are used in combination with each other.
Océ in 2001 Océ further reinforced its leading
position during the year under review. However,
the market conditions were not easy. A weakening
economy immediately translates into a lower
level of activity in technical printing environ-
ments and into the postponement of investment
decisions. Although Océ experienced stagnation
in its own growth, its market position has been
strengthened, particularly thanks to the strength
of the renewed range. Once again Océ was awarded
a number of prestigious prizes in recognition of
the outstanding properties of its new machines
and software.
Océ’s market share in Japan, though still rela-
tively small, is of great strategic value.The market
has very great potential and with a view to the
ultimate recovery of the Japanese economy it is
important in all respects to invest in the further
’japanisation’ of the wide format range.
With the Océ 400, Océ 600 and Océ
800, a range that comprises a new machine
(the Océ 600) and two highly updated
machines, Océ put a timely and very complete
family of products on the technical printing
market during the year under review. The new
systems are characterised by an improved print
quality, higher productivity and wider deploy-
ability, thanks to new possibilities for linking up
with the internet. The software and service re-
lating to the machines have also been expanded
and updated, as has the range of supplies.
Océ has strengthened its position in this segment
through the further development of Océ Engi-
neering Exec, a family of software applications
for the digital archiving, retrieval, distribution
and printing of technical documents. In this area,
too, the activities of Océ Facility Services are
steadily expanding further.
Océ’s position in the Display Graphics segment
Océ decided several years ago to enter this highly
promising market in a forceful manner. Appli-
cations are mainly to be found in advertising, the
building of displays and professional digital
photography. Océ refers to this segment as
Display Graphics.
32
Report of the Board of Executive Directors
Market developments The development of wide
format inkjet technology has also had major
consequences in the printing industry segment.
This technology enables the cost-effective pro-
duction of wide format graphic illustrations in
small print-runs, since it eliminates the need for
the costly print preparation stages that are re-
quired in traditional technologies such as offset
and silkscreen printing.
The use of colour in advertising is growing fast,
also because of the growth in the available possi-
bilities, and supply is keeping pace with that
demand. This area of activities has a very high
potential.
Océ in 2001 Océ is vigorously working on the
development of Display Graphics and is doing
this successfully, despite the fact that the market
profile differs from that of Océ’s other markets in
terms of players, technology and dynamics.
In June 2001 Océ acquired the business Espace
Graphic in France, the most important distri-
butor of wide format printers, peripherals and
supplies in this market.
At the beginning of November 2001 Océ an-
nounced the acquisition of the Professional
Imaging Division of Gretag Imaging Group Inc.
This acquisitionwascompletedearly inDecember.
Gretag Professional Imaging Division owns vari-
ous businesses, including Raster Graphics and
Onyx Graphics. This acquisition also brings Océ
an important series of inkjet printers and soft-
ware for image processing and workflow manage-
ment, as well as direct sales organisations in the
UnitedStates, theUnitedKingdom andGermany.
Océ sees these acquisitions as a crucial step
towards substantially speeding up the growth
tempo in this strategically important segment.
Following these acquisitions, Océ occupies a top-
three position in the mid- and high volume
segments.
Document Printing Systems
Océ’s position in the market for Document
Printing Systems Océ can boast more than thirty
years of experience in office environments,
especially with products that are designed for in-
tensive use. Océ’s greatest strength lies in the
productivity and reliability of machines which
produce large numbers of prints but in which
simplicity of operation is given high priority. Océ
offers added value in these products via volume
concentration, system integration and integral
document management. The office market offers
a huge potential for Océ’s concepts and products.
The competitive playing field reveals a very mixed
picture. As regards machines that are aimed at the
lower and medium volumes there are various
suppliers who, as a result of over-supply, mainly
compete on price. In the higher segments (more
than 50,000 prints per printer per month) the
number of suppliers is limited. The user environ-
ments are central repro departments and pro-
ducers of office documents.
Market developments In the lower volume seg-
ments the equipment is seen more and more as a
commodity, which is leading to sharp price ero-
sion. Océ is responding to this by shifting the em-
phasis increasingly towards the higher volumes;
here the related software and services offer higher
added value. As a result of this shift in emphasis,
the intensive attention that Océ has devoted to
the development of software and the training of
specialists will yield the desired effect. In the
meantime, especially in the office market, there
has been a strong increase in interest for the use of
colour in documents. Customers today are asking
for cost-efficient full colour printing and copying.
Océ in 2001 In a market that is dictated more and
more by price considerations, Océ has changed
course and moved towards a vertical market ap-
proach. It is possible to make a clear distinction
between customer categories, such as industry,
government, education and banks/insurance
companies.
Océ’s guiding principle is customer intimacy, incontrast to the more technology-led product ap-
proach. Approaching the problems on the basis of
the customer-specific document processes means
33
Report of the Board of Executive Directors
that software and consultancy play a more im-
portant role.
The strength of Océ’s solutions is based on the
combination of machines, software, supplies and
services. Operationally, Océ takes care of the main-
tenance and management of document manage-
ment systems. Océ therefore retains a direct sales
and service channel, as this is the only way to en-
sure optimum feedback from the customer to .
In a few cases Océ opts for indirect sales, particu-
larly where the distance from Océ locations is so
big that the response time would become too long.
In the United States, for instance, Océ has been
working together for quite some time with the
dealership organisation. During the year
under review Océ also concluded contracts with
seven other distributors in the United States and
Canada.This has extended the coverage in 38 states
in the United States and Canada. The intention is
that this network will be further extended in the
years ahead.
During the year under review Océ launched two
important new machines: the Océ 400
printer/copier and the Océ 700 colour printer/
copier. Both machines are based on Océ’s own
advanced technology. This relates to both the
hardware and the software.
The Océ 400 is a 100 ppm cutsheet black-and-
white printer for use in high volume environ-
ments. It is a flexible and user-friendly machine,
complete with a high speed scanner, which can
process both originals and print jobs rapidly and
in random order via the network. The system is
suitable for central repro departments, where it
can very productively and easily process both con-
ventional copy assignments and digital documents.
The Océ 400 is of modular design and its
functionality is constantly being expanded via
new software releases. The Océ 400 was well
received by the market. However, the number of
placements of this machine was adversely affected
by the slowdown in economic growth.
The Océ 700, Océ’s colour printer/copier
based on the company’s own, highly advanced
technology, also met with a very good reception.
The first machines were shipped to market in
September 2001, after a series of machines in-
stalled on trial with highly demanding customers
had already produced exceptional performances.
Because of the special way in which the image is
formed using seven basic colours, the picture and
colour quality of all prints is always exactly the
same, also for big print-runs and for repeated
prints and at a constant high speed, irrespective
of the material to be printed on.
The productivity of the Océ 700 is much
higher than that of conventional colour machines
with a higher speed. In addition, the Océ 700
technology offers great advantages compared to
traditional offset printing. Offset is characterised
by high preparation costs for variable printing
work, lengthy retooling times and waiting times
during the printing of fully filled areas, whilst
printing on plastics is very expensive. The Océ
700 technology therefore represents a
breakthrough in terms of productivity for these
applications in the printing industry market.
Although the machine can also be used as a
copier, expectations are that it will mainly be
used as a printer.
Océ’s first fully digital printer/copier product
family for the office, the Océ 31x5, continues to
sell well. However, this is taking place in environ-
ments in which the competition is also strong.
In the meantime Océ has made good progress
with preparations for higher-speed successors to
this machine.
The Océ 31x5 series, together with the Océ
400 and part of the Océ Demandstream
series (mainly used in production printing en-
vironments), forms the cornerstone of Océ’s
document management approach. The concepts
for this approach are supplied and implemented
by Océ’s system specialists, who represent the
added value that Océ provides alongside the
know-how that is incorporated in its machines
and software.
Océ supplies a large number of software products,
such as Océ Doc Works, Océ Com Works, Océ
Find Logic, Océ Intra Logic, Océ Scan Logic and
Océ Office Exec. Océ Office Exec was brought to
market in the United States in 2001. In 2002 this
program will also be sold in Europe.
34
Report of the Board of Executive Directors
Production Printing Systems
The Strategic Business Unit Production Printing
Systems consists of two business groups:
Electronic Production Printing and Printing &
Publishing.
Océ’s position in the market segment for Elec-
tronic Production Printing For printing environ-
ments, which set high demands and in which
many prints are continuously produced, Océ
supplies printers that meet the highest require-
ments in terms of speed, quality, reliability, pro-
ductivity, flexibility and stability. Printers of this
type are deployed in such areas as big central
repro departments and in environments,
specifically those of banks and insurance com-
panies, energy suppliers and telecom providers,
which produce large numbers of statements of
account, policies and invoices day after day.
Other major users are direct mail businesses. World-wide, Océ has a share of over 22% in this
segment, which makes it one of the three most
important suppliers, not only thanks to the quality
and robustness of its machines but also because
they can operate in a great many different en-
vironments. This is also attributable to the soft-
ware which has been specially developed for such
applications and which handles input manage-
ment, the processing and organisation of docu-
ments, output management and the archiving of
print data. At an early stage software applications
were developed that enable data flows from various
competing systems, including those that are self-
contained, to be printed on Océ machines.
Almost without exception, the machines that are
supplied to this market are also coupled to other
hardware, either for the feeding in of plain or
pre-printed paper or for the further finishing of
the prints. Thanks to the modular construction
of the machines it is possible to keep them up-to-
date by means of various upgrades and new soft-
ware releases. In this way Océ protects the cus-
tomer’s substantial investments in equipment of
this type. Océ offers a complete and competitive
range of services, such as consulting, training and
customer support.
Océ occupies a leading position in the field of
character recognition technology. Its RecoStar
character recognition software is regarded as a
first-rate solution for use in the high volume
segment (passports/bank cheques).
Market developments The volume in the segment
for Electronic Production Printing is still growing
and is being accompanied by an ever greater con-
centration of print volume on fewer, but much
higher capacity machines. This trend works to
Océ’s advantage. However, this is a market in which
the number of customers is steadily decreasing as
a result of mergers and acquisitions. Expectations
are that the availability of alternative forms of
communication (such as electronic banking) and
the broad thrust to boost efficiency will ultimately
also lead to a decrease in the use of paper in this
segment. The competitive position of Océ as one
of the leading players was once again strengthened
in 2001, despite the decline in machine sales.
The slowdown in economic growth had a clear
impact on this segment. Due to the reluctance by
companies to make major investments, the number
of new machines sold declined substantially in
2001. To a large extent, however, total revenues
are determined by the continuous flow of income
generated by the installed population of machines.
Océ’s market share remained stable. Océ sees great
potential in sophisticated document management
solutions. At the moment some 10% of the in-
formation available world-wide is stored in struc-
tured databases. The remaining 90% can be ac-
cessed and rationalised using the solutions offered
by Océ, after which it will form an extensive
knowledge base for the customer.
A comparatively new development in this segment
is the use of spot or support colour. This feature
has been available since 2000 on all high-volume
Océ printers. In the meantime the range of stan-
dard colours has been considerably extended, so
that users can now even produce their own house-
style colour in prints with the aid of the Custom-
Tone system. Widespread interest exists for this
unique Océ technology. Although the trend to-
wards the increased use of colour has also become
an established fact in production printing, price
considerations mean that it will still take a while
before full colour also makes its entry into this
market. Océ is therefore focusing initially on an
35
Report of the Board of Executive Directors
optimisation of its black-and-white range. In the
meantime Océ continues to develop techniques
for multi-colour printing at high speeds.
Océ in 2001 At the end of the year under review
Océ launched two major innovations in the Océ
Pagestream/Demandstream series: a resolution of
600 dpi at full capacity operation and automatic
adaptation of the print quality to a resolution of
240, 300 or 600 dpi. This latter feature makes it
possible for data flows with differing resolutions
to be processed without operator intervention.
In practice this yields substantial time savings.
During the course of the year various new soft-
ware releases in the extensive Océ server
family were issued.
In 2001 Océ introduced theTriplex configuration
of three series-switched Océ Pagestream printers,
which allows full-speed, single-pass duplex
printing together with spot colour.
In a market in which high demands are made on
the printing process and in which the document
flow process and the document finishing process
have also become extremely complex, expert
support is of great value. Océ has a large number
of specialists who can translate the customer’s
problems and needs into a tailor-made printing
system configuration. Their expertise is also in-
corporated in the successful Océ Audit
product, an extensive software system which can
be used to create a complete print production
facility. Océ identifies the system integration
which best fits in with the customer’s individual
wishes and needs.
Océ’s position in the Printing & Publishing
segment The special qualities of Océ’s high-speed
printers – their print quality, connectivity and
the way they can be controlled flawlessly from
within networks – make them eminently suitable
for digital printing in small print-runs. For many
years Océ printers have been used for printing
documents which are regularly changed, such as
manuals and catalogues. These are stored in elec-
tronic form and kept updated until the moment
when they are required in printed form, usually
in a small print-run. In 1996 Océ started out on
a targeted development of this application area
by marketing complete solutions based on speci-
alised machine configurations and software
applications developed in-house. For Océ this
represented a substantial step forward into a new
area which had traditionally formed part of the
(offset) printing market. Over the past five years
Océ has extended this working area to include the
printing of books in small print-runs and, during
2001, also the printing of (international editions
of ) newspapers. In cooperation with Roland,
Océ also supplies digital colour printing equip-
ment. On the basis of its (information) techno-
logy in the printing industry sector Océ has built
a clear market position during the year under
review, particularly in the segments that are less
suitable for offset due to the required speed of
document make-up and the small print-runs.
Market developments The printing industry sec-
tor is about to start experiencing a strong digital
development, though the high-volume segments
will continue to be dominated by the traditional
techniques. The market for electronic printing
has a bright future, as is underlined by the fact
that suppliers of conventional printing presses are
also putting out feelers in this segment. The key
to success, however, is the combination of the
hardware with specialised software and a perfect
link-up with the finishing equipment. Océ has
done a great deal of work in this area.
36
Report of the Board of Executive Directors
Océ in 2001The software that Océ has developed
specifically for these applications within the Océ
family was further expanded and im-
proved during 2001. This software is mainly used
in combination with printers from the Océ
Demandstream/Pagestream series. It enables users
to optimise both the document make-up process
and the control over the printing and finishing
process. Demand for the more commonly used
printing applications is showing distinct growth,
and this was also reflected in the sales of machines
and software.
Several years ago, in 1999, various publishing
houses embarked on the electronic printing of
small series of books in a limited print-run.
The costs of an initial (limited) edition, possibly
followed by smaller reprint runs, are substantially
lower than those of conventional offset printing.
There is also a gain in speed: the page body of a
200-page book can normally be printed, folded
and cut to size within a couple of minutes.
During the year under review Océ presented
successful new software for this market.
A critical success factor in these new market areas
is the ability to work closely together with parties
which handle both the preparatory work and the
finishing work involved in electronic printing.
In many instances this relates to a joint develop-
ment of new applications that strengthen the
position of all the players in this market.
The annualOcé Open House in Poing (Germany)
comprised a display of the products of various
suppliers who, in combination with Océ products,
offer complete solutions for this sector.
A new activity in 2001 was the launch of the
electronic printing of newspapers in tabloid for-
mat. Thanks to this application newspapers that
are published in Europe can also be made avail-
able almost simultaneously in limited print-runs
for readers in more remote areas of the world.
Electronic printing is in such cases an economic
alternative for physical despatch, which is usually
accompanied by high transport costs and consid-
erable delays. The electronic newspaper is hardly
distinguishable from the original.To ensure that
this opportunity is efficiently exploited, Océ has
initiated a series of strategic partnerships with
printers/printshops which have the required
equipment. In the year under review four such
cooperation agreements were concluded, in
London,NewYork,Johannesburg and Melbourne.
In the new year these are expected to be joined by
a great many more.
37
Report of the Board of Executive Directors
Facility Services
Facility Services is the fastest growing activity
within Océ. The term indicates a form of out-
sourcing in which the customer, usually a big
organisation, transfers all its activities in the area
of printing and copying management as well as
document management to Océ. In most cases Océ
also takes over the relevant employees within these
organisations as well as their production resources.
Facility Services is not only a marketing and sales
concept, but more than anything a standardised
method used by Océ to approach its customers.
This approach, known as the Solution Delivery
Process, comprises the following stages:
– Consultancy: analysis of the document process,
including recommendations for improvements;
– Design: developing a system that offers the best
solution for the customer;
– Implementation: system integration, training and
education;
– Support: maintenance, but also taking over
responsibility for the document management
process from the customer.
Via Facility Services Océ offers its customers the
possibility of concentrating fully on their own core
activity. At the same time customers can benefit,
without having to invest in this themselves, from
the processing and technical improvements that
Océ can implement in the area of document
management.
A good example of the strength of the Facility
Services concept is the contract that was concluded
this year with Rolls-Royce. Particularly the pro-
vision of services for the management and distri-
bution of technical drawings in the engineering
process for new aircraft engines can be described
as state-of-the-art document management.
Océ’s position in the market for Facility Services
Customers are found both in the profit and the
non-profit sector. In Europe the bulk of the busi-
ness is in industry, education and government; in
the United States it is chiefly in the financial
services sector. In this extensive and still strongly
growing market Océ has quickly built up a strong
position. In Europe Océ is a top player in the
Netherlands, Italy, France, the United Kingdom,
Germany and Belgium.
In November 2001 Océ acquired Practical Print
Solutions Ltd. This company is active in the
United Kingdom in the area of print procurement
and print management and has developed unique
software programs for this work.
In the United States Océ operates under the name
Archer Management Services. Although the acti-
vities in the United States still largely comprise the
full range of mailroom activities, one of the strong
distinguishing features of Océ in that market, too,
is the focus on document management as an
integrated process.
Market developments The growth trend in the
market continued unabated during the year under
review, both in the United States and in Europe.
Whilst the market grew on average by around
20%, Océ showed growth of approximately 25%
compared to 2000. For large, globally operating
businesses the management and control of the
total document flow is an important area of at-
tention. They are increasingly contracting out this
activity and making use of the possibility offered
by Océ of tackling this on a global scale. In this
market Océ operates alongside a number of
strong competitors.
Océ in 2001 For more and more businesses the
integral control of document processes is becoming
essential: the exchange of information and know-
how calls for the organisation of the document
flow to be coordinated with the business pro-
cesses. This coordination, including the choice
and deployment of resources, requires a specific
expertise which can be provided by Océ Facility
Services. As a result the working area of Océ
Facility Services is gradually shifting away from
operational services towards more integrated
managed services. Océ is therefore developing new
service concepts, in which an important place is
occupied by the operational performance of ser-
vices and their integration within the customer’s
business process. However, Facility Services also
brings benefits for Océ in numerous other
respects, including the close relationship with the
customer.
38
Report of the Board of Executive Directors
Imaging Supplies
Océ’s position in the market for Imaging Supplies
Océ traditionally has an excellent reputation
when it comes to the provision of supplies for
both its own machines and systems and those of
third parties. In a market that is experiencing very
many changes Océ has maintained its position.
Selling activities are principally channelled via the
operating companies, where the close customer
relationships form a solid basis for generating
sales. Océ is able to offer its customers a range of
more than 3,000 articles, varying from plain
paper in 4-size and wide format rolls to highly
specialised transparent sheets and other specialities
in many formats.The very extensive and complete
range of Display Graphics supplies, comprising
canvas, vinyl, glossy films and backlit varieties,
meets a growing need for short-run applications,
such as posters and floor graphics. The breadth of
the range and Océ’s delivery reliability give the
company a good position in this area.
Market developments The market for Imaging
Supplies is highly fragmented. However, Océ
undoubtedly holds a good position in the area of
wide format paper and 4-size paper, a commo-
dity which often provides an entry for the sale of
other types of supplies.
In Display Graphics the already important role
that Océ also plays in the area of supplies is be-
coming increasingly stronger, substantially sup-
ported by recent acquisitions in France and the
United States, as already described in the section
on Wide Format Printing Systems. This segment,
which is still relatively new for Océ, is growing by
25% to 35% a year. Océ’s American subsidiary
Arkwright has in recent years developed an ex-
tensive range of highly specialised products for
Display Graphics.
Océ in 2001 The year under review brought con-
siderable growth in sales of wide format paper.
Against this, however, the emphasis in plotter
supplies shifted further towards in-line, coated
and uncoated paper varieties. Sales of 4 media
remained constant in Europe. The degree of
coverage of Océ’s own machines showed a con-
siderable increase, thanks especially to a more
targeted approach to the sale of supplies in the
operating companies. Internet plays an impor-
tant role here in that it provides efficient contact
with customers and makes it simple for them to
order supplies from Océ.
At the same time as the launch of the Océ
700 colour printer, Océ introduced a com-
plete package of print supplies for this machine.
In 2001 Océ placed greater emphasis on the in-
direct sale of supplies, particularly for wide format
applications. The Océbrand has been effectively
used for this. The intention is that the number of
distributors will be gradually expanded, the main
aim being to ensure optimum provision of Océ
supplies to the very big category of small and
medium-sized customers.
So as to offer the customer a clear one-stop so-
lution, deliveries of photoconductors and toners
were also transferred in 2001 from the Strategic
Business Units and to the business
group Imaging Supplies.
39
In the world of Océ there is no room for imitation
Technology and Innovation
Report of the Board of Executive Directors
Research & Development
The foundation of Océ’s competitive strength is
formed by the company’s own technological devel-
opment work. The distinguishing characteristics
of practically all Océ products can be traced back
to technologies that have been developed within
the organisation itself. These technological inno-
vations are the fruits of consistent activity.
Some 1,850 people work in . Each year Océ’s
investment in amounts to 6% of its revenues.
Océ’s activities are established in eight loca-
tions. The centre in Venlo focuses on the de-
velopment of machines, strategic supplies (toners
and photoconductors) and software. The
activities in Poing (Germany) concentrate on the
development of fast, high volume printers and
software. In Fiskeville, in the United States the
department of Arkwright is the centre for
the development of speciality carrier materials.
Créteil (France), Namur (Belgium), Konstanz
(Germany), Cleveland and Boise (United States)
and Tokyo (Japan) are the homes of Océ
centres for the development of specialised soft-
ware.
Vision Océ’s is aimed at providing users with
optimum support in their activities. This is done
by offering hardware and software which have been
developed by Océ in-house and which possess
unique properties. In all cases the following prop-
erties are key: reliability, productivity, ease of use
and environmental friendliness and low cost ofownership. Océ’s guiding principle is that the most
complicated technical processes can be reduced to
one simple action for the user. The green button
(always a good image whatever the original) epito-
mises this approach. The same applies to the
control of the colour printers, which guarantees
that the colours of a print are always the same,
everywhere.
Océ of course devotes much attention to making
sure that its products dovetail perfectly with the
customer’s system environments and organisation.
To do this, the company develops document
management software. This approach resulted in
Océ again being awarded a number of prizes for
well thought-out product design during the year
under review.
Developments Océ has consistently maintained
the technological lead it built up since the early
1990s in the area of wide format black-and-white
printers. Today, its black-and-white printers and
the related software are amongst the most ad-
vanced in the world.They work fast, are of high
quality, come complete with an extensive range of
software and function optimally in customer net-
works. During the year under review the entire
line of printers was updated. Much attention was
devoted in particular to the scanning function as a
separate activity.
An important new development, albeit one that
has featured in the programme for many
years, is wide format colour printing on the basis
of inkjet technology.
Following the successful introduction of the Océ
400 printer for office use, Océ is working on
the modular extension of the support software for
this product’s scanning and printing function-
alities. In 2002 Océ will be presenting a highly
versatile high volume printer for the office market,
a machine that is particularly suitable for use in
smaller central repro departments.
The development of new printers featuring Océ’s
own unique colour technology is progressing at
full speed. The Océ 700 is the first of a com-
plete series of colour printers which is especially
aimed at handling short-run colour print jobs.
This means that the Océ 700 can also be de-
ployed in printing industry environments.
In the area of high speed printers a number of
projects are under way and these will result in a
new generation of printers towards the end of
2002. These products, for continuous and cut-
sheet paper feed, will again confirm our techno-
logical lead. They can be universally applied in
various market segments, also in those in which
Océ is as yet not strongly represented. Colour plays
an important role. In addition to one or two spot
colours, the applications will also offer customer-
specific colours and high-quality multi-colour
printing.
43
Report of the Board of Executive Directors
One of the areas in which Océ’s activities
have booked outstanding success is in the devel-
opment of supplies, notably photoconductors,
transfer material and toners.The newly developed
organic photoconductor (), featuring an im-
proved and stable print quality, has also demon-
strated in practice that it has a much longer use-
ful lifetime than the previous generation of in-
organic photoconductors. Besides this, a new and
unique Océ drum technology will be developed
for colour applications. Just like the majority of
the black toners, the colour toners for the Océ
700 were also developed by Océ itself. The
transfer materials that were developed in-house
contribute to the quality that is typical of Océ: a
constant print quality on a wide variety of carrier
materials.
Software In the complete systems that Océ offers
to its customers, the application software is a
major element that distinguishes the quality of
the offerings. Using the machines as a productive
basis, the software is able to steer the preparation,
organisation, finishing and control of the com-
plete document process in such a way that the
customer’s printing capacity is utilised to opti-
mum effect. Océ can translate its many years of
experience in the area of document management
within organisations into interlinked series of
applications. In response to the dynamics of the
market the internal organisation of the software
development activities was radically revised during
the year under review.This reorganisation enables
maximum use to be made of the know-how that
is available within the Océ organisation. This has
resulted in unrestricted interconnectivity of all
software products and a shorter reaction time.
Cooperation The centres inVenlo and Poing
work together closely in the area of printer tech-
nology. Considerable progress has been achieved
on the joint development of organic photocon-
ductor belts. The knowledge base of both centres
is also being combined in the area of cutsheet
technology for the development of new, high
speed machines. This development links up well
with the company’s new organisation structure
which will be implemented in 2002.
Manufacturing and logistics
Océ’s own production of machines and strategic
supplies is a major cornerstone of the company.
Machines are assembled in the Netherlands and
Germany, in close cooperation with a number of
carefully selected suppliers. In many cases they
supply not only components but also completely
assembled modules. Final assembly takes place at
Océ, after which the configuration is put together
and delivered in accordance with the customer’s
order and specification.
In view of the great importance of Océ products to
customers, a perfect logistics operation is crucial.
Particularly in recent years Océ has implemented
new, and more efficient logistics concepts. Those
have led to substantial advances in the speed and
reliability of delivery as well as to a reduction of
the costs. The need for intermediate storage of
machines and components has been steadily
reduced. For supplies the number of locations
where stocks are held is limited.
Manufacturing Strategic supplies such as toners
and photoconductors are manufactured almost
entirely by Océ itself. In 2001 manufacturing
operations were mainly focused on the launch of
the Océ 400 and the Océ 700. In the
photoconductor plant that was opened last year
the production of the organic photoconductor
for the Océ 400 is meanwhile fully opera-
tional.
During the year an amount of € 40 million was
invested in the production of supplies for the
Océ 700. The plant for the manufacture of
the process drum, the image-forming drum for the
colour printer, is currently under construction.
A completely new toner production line will
produce the seven colour toners for the Océ
700.
44
Report of the Board of Executive Directors
The decline in machine sales was immediately re-
flected in the level of plant utilisation in assembly
activities. This brought a sharp reduction in the
number of employees, specifically temporary
contract employees. Assembly work involves a
combination of technical and organisational re-
sources, such as the introduction of what is known
as flow production. A number of drastic changes
in the way of working in assembly have resulted
in a shortening of the assembly time and a reduc-
tion of the stocks of work in hand. A particularly
important feature is that, even when production
has to be scaled up quickly, Océ is still able to
achieve stable delivery reliability. Manufacture of
the Océ 700 is taking place using an advanced,
new process. All these changes were also accom-
panied by a change in culture, which was re-
flected in a strong sense of commitment and a
low rate of absenteeism.
In the production facilities in the Czech Republic
not only remanufactured machines but also com-
plete modules are produced for Océ products.
This relates, for example, to complex machine
components such as sheet trays and finishers.
Re-use Remanufacturing and recycling form an
integral part of the production operations.
Machines that are returned from the market are
placed with customers again after modifications
and upgrading, or they are disassembled so that the
parts can be used for new machines. Most com-
ponents have a technical lifetime that is longer
than their economic lifetime.
The remanufacturing activities have meanwhile
been centralised in the Czech Republic. A trading
desk which was set up in 2001 ensures that the
various countries can exchange surplus compo-
nents and machines. The environmental aspect
has traditionally played an important role for
Océ; an effective use of raw materials and energy
is important in that respect, as are cost and
efficiency aspects.
Logistics During the year under review the
Direct Machines Delivery logistics approach was
further implemented. As part of this concept the
machines are delivered direct from the produc-
tion locations to the customer. As a result it has
been possible to reduce local stocks. One of the
objectives, a reduction of the working capital tied
up in stocks, was largely achieved during the year
under review. Because of the new approach the
reaction speed of the supply chain has also been
increased, enabling Océ to respond quickly to
changes in market demand.
In total, partly as a result of the new concepts, the
number of Océ employees involved in logistics
world-wide has been reduced by about 300.
In Europe, the United States and the Far East the
Océ companies are now supported with stocks
of components and machines held regionally
by the centres in Venlo en Poing.
45
Océ makes a firm choice for People, Planet and Profit
and acts accordingly
Sustainable business practices
Report of the Board of Executive Directors
Océ’s ambition within the framework of sus-
tainable business practices is the desire to grow in
a world in which the precondition is safeguarding
a healthy environment for future generations.
The basis for achieving this lies within the com-
pany itself and in the way it conducts its business.
Océ wants to share its know-how, experience and
possibilities with those sections in society which
share the same vision of the future and actually
want to implement that vision in practice.
Océ’s activities, the company’s success and the
well-being of employees, the environment and
society cannot be seen in isolation. A document
on the ethical principles on which the functioning
of the Océ organisation is based was already drawn
up in 1994. This indicates which corporate ob-
jectives Océ seeks to achieve, how those objectives
have to be attained and which standards Océ
complies with in doing so.
This document is regularly updated and serves as
a guide for the actions of Océ and its employees.
Personnel and organisation
Corporate Human Resources Policy The Corpo-
rate Human Resources () Policy of Océ is aimed
at developing and acquiring those competencies
that are needed to achieve the company’s ambi-
tions, also over the longer term.
For Océ, as an organisation that relies strongly on
know-how, experience and skills, the employee is
crucial in the conduct of the business. Specifically
now, in a period when the consequences of the
new strategic direction will lead to far-reaching
organisational changes, the policy plays an
essential role. Only a focused policy which is
supported in all departments and locations will
contribute to achieving the objectives of Océ’s
strategy.
Implementation of the Human Resources Policy
To achieve the foregoing the policy will for the
greater part be developed and implemented by the
line management itself. The latest insights in the
areas of competencies management, self-assessment
and training will be used.
The company’s strategic objectives are being trans-
lated into concrete targets for the teams that have
to achieve those objectives. This is done on the
basis of an analysis of the existing competencies
and the future tasks. Then a plan is developed to
bridge over the differences that have been identi-
fied and to complete this within an agreed time-
frame. In this way the development of the em-
ployees is accurately attuned to strategic change
processes.
Pilot In the meantime a pilot project for this ap-
proach has been started. A Task Force headed by
the directors is putting the new approach
into practice in the five biggest European coun-
tries. This group is translating the Solution
Delivery Process, a marketing and sales concept
that specifically supports consultancy selling and
solutions selling, into concrete competencies
requirements for sales and service teams. The roles
that the teams have to fulfil will then be translated
into the required team composition and
competencies.
49
Report of the Board of Executive Directors
Recruitment, selection and guidance The recruit-
ment of talented new employees, the education
and retraining of present employees and providing
guidance to employees who move to a job outside
Océ, has once again proved to be an essential acti-
vity. The recruitment and selection of new per-
sonnel, particularly specialists, has not been
easy. Nevertheless Océ has succeeded almost
everywhere in the world in always attracting and
retaining the required employees.
Development In the year under review the
number of employees amounted to more than
22,000. The number of employees grew as a
result of expansion of the activities in the area of
Facility Services and through the acquisition of
several businesses.
In a number of places in the organisation, however,
the number of employees has also been strongly
reduced. This resulted in part from the Columbusproject, a new approach and a new organisation
for service and maintenance. In addition the
number of employees decreased because of the
Distribution of employees by 2001 2000
geographical areasnumber as % number as %
Netherlands 4,059 18 3,962 18
Germany 3,299 15 3,417 15
France 1,388 6 1,491 7
United Kingdom 1,111 5 1,075 5
Rest of Europe 3,301 14 3,349 15
United States 8,234 37 7,810 35
Rest of the world 1,080 5 1,149 5
Total 22,472 100 22,253 100
Distribution of employees by 2001 2000
type of functionnumber as % number as %
Research & Development 1,840 8 1,863 8
Manufacturing & Logistics 2,887 13 3,258 15
Facility Services 6,046 27 5,279 24
Sales 4,653 21 4,753 21
Service 4,914 22 5,059 23
Accounting and other 2,132 9 2,041 9
Total 22,472 100 22,253 100
reduction in the level of activity in the manufac-
turing plants during the year under review.
The strategic restructuring of the Océ organisation
in 2002 will be accompanied by a considerable
reduction in the number of jobs. Throughout the
entire Océ Group this process will require the
optimum provision of guidance and support by
the departments.
Education and training In the area of education
and training a new structure has been developed
which uses three training centres (Venlo, Chicago
and Singapore) to meet the regional training re-
quirements. Because of the rapid change-over to
digital technologies and processes and because of
the increased importance of consultancy within
the Océ range of products, the average level of
knowledge required has increased substantially.
In that respect Océ is becoming more and more a
knowledge organisation. The training methods
have also been brought into line with this.
50
Report of the Board of Executive Directors
Safety, environment and health (SEH)
Océ’s choice for sustainable development implies
that it opts to conduct its business on the basis of
a number of concrete principles as regards the
protection of people and the environment. All
groups involved in every place in the world receive
the care that this approach calls for. In practice
these are the company’s own employees, the people
who live in the vicinity of the (production) loca-
tions and the users, each in their own environment.
Similarly, the availability – now and in the future –
of raw materials and energy is a focus of such care.
In terms of the protection of people and the
environment Océ has a track record that can be
described in many respects as remarkable and
pioneering. For many years a substantial propor-
tion of the research and innovation activities has
been aimed at minimising the negative effect of
manufacturing and of products on the environ-
ment and health. The company’s history therefore
features many milestone achievements in the areas
of waste reduction, recovery and recycling of
materials and supplies and a series of environ-
mental and quality certificates.
For a number of years Océ has pursued an active
corporate policy in the area of safety, the environ-
ment and health. To improve the coordination of
a number of more or less separate initiatives in this
area, a structure was set up during the year under
review for measuring and steering the progress
that has been achieved. This structure provides for
direct reporting to the Board of Executive Direc-
tors. The responsibility for submitting regular
reports lies with the management of the operating
companies. The central guideline for the policy is
the fact that safety, health and the environment
are very closely interlinked and must therefore be
approached in this mutual context.
The implementation of the policy is taking
place in eight basic areas which correspond to the
interfaces between Océ and the world around it:
– Improving the commitment and the (environ-
mental and safety) awareness of employees through
training and information.
– Preventive measures to minimise the negative
effect of Océ’s activities on the world around it.
– Ensuring the safety and health of customers and
employees in all activities.
– Designing products and production processes on
the basis of the total lifecycle approach.
– Ongoing improvement of the performances
of products and processes.
– Providing information about all relevant
aspects.
– Actively involving partners and suppliers in Océ’s
programmes of care for the world around it.
– Informing customers about the proper, safe and
environmentally friendly use of Océ’s products.
By clearly setting out its environmental policy,
Océ emphatically indicates that it wants its growth
and development to take place in a sustainable
manner.
For those who are interested, the Environmental
Annual Report of Océ-Technologies .. is avail-
able on request. That report treats a number of
the above themes in greater detail.
51
Management aspects
Report of the Board of Executive Directors
Risk profile
Risk management Océ is faced with the commer-
cial and technological risks of a company which
specialises in the development, manufacture,
sale, distribution and servicing of advanced pro-
ducts and services on a world-wide scale. Océ
concentrates on serving high-value professional
markets, mainly with technological concepts
which have been developed within the business
and which allow the company to profile itself
clearly.
Market risks Océ has to date demonstrated that it
can cope with the specific market risks that the
company faces, or can even turn them to its ad-
vantage. None the less a number of these risks will
also continue to be present in future. By identi-
fying these and responding pro-actively to them,
the risks can be reduced to a minimum. Recent
acquisitions and operational measures, and the
restructuring operations, which will be com-
pleted in 2002, are examples of this.
– The shift in our markets from analogue to digital
technology, from copying to printing. As regards
this change-over Océ is continuously one of the
pacemakers. The related change in market ap-
proach remains a challenge for the entire
industry. Océ has made the strategic choice of
aiming to grow in the provision of service and
high-value customer solutions with the aid of
software developments, Professional Services and
Facility Services. That implies a radical change
process in which Océ will see its field of work
shift towards more complex activities with a
higher income contribution. This requires a
realignment of the skills within the entire
organisation and of the structure of the
organisation itself.
– At the same time a low volume growth for part of
our traditional print volume leads to the need to
keep a tighter control over costs and working
capital. The price pressure, which is the conse-
quence of the market trends, will no longer be
automatically absorbed by higher volumes.
– As part of its growth objectives Océ has defined a
number of growth segments, which means that
the company will enter new sub-markets. Océ has
high expectations of these and believes that they
should in due course contribute to an increased
profitability of the company. The strategic em-
phasis on growth in new markets, such as Soft-
ware & Professional Services, Facility Services and
Display Graphics, is a prerequisite for the
development of profitability of Océ.
– The growing importance of software in our total
product offerings creates its own dynamics. Lead
times and lifecycles of software are very different
from those of hardware.
– The increasing need to improve and change the
technology that is being used, indicates the impor-
tance of a tightly focused time-to-market man-
agement. Together with the above-mentioned
change-over from analogue to digital, this leads
to a risk in terms of population management
(i.e. the financed fleet of machines installed with
customers) for companies like Océ, which retain
part of the obsolescence risk by means of multi-
year rental/lease contracts.
– Océ’s broad technology base, the variety of
markets on which the company operates and the
links, mostly on a long-term basis, with highly
diverse customer categories ensure a spread of the
risks.The revenues from rentals, servicing, Facility
Services and Software & Professional Services, as
well as the sale of supplies, the highly diversified
customer base and the wide geographical spread,
help to create stability in the total revenue flow.
53
Report of the Board of Executive Directors
Technological risks Océ has in recent years de-
liberately and continuously invested in .
That has resulted in a range of self-developed
core technologies and products and highly market-
focused innovations in the area of applications,
operating concepts, and environmental and safety
features. Those core technologies also encompass
a number of unique components and processes
for new generations of printers and copiers for
both black-and-white and colour applications.
In the professional markets for and
Océ is one of the market leaders. Here the invest-
ments made in in the past have led to a
strong position. The current efforts in these areas
are also such that Océ can safeguard, if not further
strengthen, that position in future.
Since Océ is smaller than its competitors in the
market, Océ has always concentrated its
efforts on sub-segments of this market, especially
on the high-production environments. This also
applies to the future. Endeavours will be made to
avoid the drawbacks faced by a relatively small
company by responding to market trends, by
making the right selection from them and – where
meaningful – by entering into partnerships.
To guarantee the closest possible contact with the
market, service and sales employees are involved
in the product development of hardware and
software at an early stage. As a result this has
steadily reduced the learning curve further over
the course of the years. In addition, recent
changes in the way that product development is
steered have strongly boosted the company’s
reaction speed and the flexibility of its response
to new circumstances and customer needs.
Foreign exchange risks Due to the nature of the
high-value technology that Océ offers its cus-
tomers, its revenues are largely made in countries
within the Euro zone (38% in 2001), in the
United States (in 2001: 41% ) and also in the
United Kingdom (7% in 2001). Revenues
achieved in the rest of the world are relatively
small for Océ (14% in 2001). It should be noted
that the competing suppliers also operate on a
global scale, but that they are principally based in
the United States or Japan.
The prices charged to the customers in our
markets are denominated in the customer’s own
currency.
The biggest possible proportion of the costs of
what are – generally speaking – multi-year
contracts between Océ and the customer are
incurred in these local currencies.
Because the manufacture and development of
new products mainly takes place in the Euro
zone, with purchasing costs denominated partly
in other currencies, a foreign exchange risk arises
for the flows of goods from the Euro zone to the
sales areas where the currency is the dollar, the
Pound sterling or the Japanese yen.
At Océ these net currency flows are the subject of
an active foreign exchange management policy.
This management policy is implemented in close
consultation with the Board of Executive
Directors.
In order to control the effects on the margin of
short-term exchange rate fluctuations – usually
defined within Océ as the foreign currency posi-
tions which fall due over the next 12 months –
these positions can be hedged for up to 80%
(principally the dollar, Pound sterling and
Japanese yen). It has already been the policy for
several years always to hedge the 12-months
position of the dollar and the Pound sterling
on a roll-over basis.
54
Report of the Board of Executive Directors
Corporate Governance
Océ endorses the importance of corporate gover-
nance, in which accountability and transparency
are the most significant elements. The forty re-
commendations on corporate governance, effec-
tive supervision and accountability published by
the Peters Committee in the Netherlands were
extensively discussed at the General Meeting of
Shareholders. Océ acts, where reasonably possible,
in accordance with these recommendations.
Within the framework of corporate governance it
is important that a relationship of trust exists
between the Executive Board and the Supervisory
Board on the one hand and the shareholders on
the other. The General Meeting of Shareholders
serves in this respect as a forum for the exchange
of ideas, the provision of information and man-
agement accountability.
Océ takes the view that, to ensure a substantial im-
provement in the quality of the General Meeting
of Shareholders, a representative attendance of
the providers of the company’s capital is required.
Océ is therefore following with interest the Dutch
developments with regard to an efficient proxysolicitation system.The provisions in Océ’s Articles
of Association relating to proxy representation
certainly make the use of such a system possible.
Since 1984, when s were introduced in the
United States, Océ has gained experience on a
modest scale with the system of proxy voting.
A small proportion of the holders of s cast
their votes each year by means of proxy voting.
Since the end of the 1980s American institutional
investors which hold ordinary Océ shares have
been making wide-scale use of proxies to take part
in the decision-making at the General Meeting.
This implies that the resolutions adopted at the
Océ General Meeting are also supported to a
large extent by American institutional investors.
Dutch institutional investors are for the time
being reticent about proxy voting. To improve
this situation, various initiatives have been taken
in recent years. In the Netherlands, for example,
the Stichting Communicatiekanaal Aandeel-houders (Shareholders Communication Channel
Foundation) is actively working to facilitate
proxy voting. Océ has followed the activities of
this Foundation with great interest, but has
noted that the system still has teething troubles,
is expensive and cannot as yet meet the wishes of
foreign shareholders.
In December 1999 a statutory system was intro-
duced which makes it possible to use a record date
in order to prevent shareholders from not having
their shares at their disposal during the period
when those shares have to be placed in deposit.
This system links up with the general practice in
the United States and also meets the wishes of
institutional investors in particular. To enable the
use of a record date the authorisation of the
General Meeting of Shareholders is required.
Océ obtained this authorisation for a period of
five years at the Shareholders’ Meeting held on
March 7, 2001.
Apart from the exchange of ideas at the General
Meeting of Shareholders, there are of course
other important forms of communication that
Océ has long been using, such as the publication
of the annual report, quarterly reports, issuing
prospectuses and interim reports. In addition,
Océ pursues an active Investor Relations policy,
as described on page 99 of this report.
Venlo, January 29, 2002
The Board of Executive Directors
R.L. van Iperen, chairmanJ. van den Belt
J.F. Dix
G.B. Pelizzari
55
Annual Financial Statements
Consolidated Statement of Operations
2001 2000 › € 1,000
Net sales 1,836,061 1,892,829
Rentals and service 1,272,467 1,215,612
Interest from financial leases 125,109 115,491
Total revenues [1] 3,233,637 3,223,932
Cost of sales 1,100,111 1,072,521
Cost of rentals and service 816,401 802,302
1,916,512 1,874,823
Gross margin 1,317,125 1,349,109
Selling expenses 728,423 707,366
Research and development expenses [2] 199,585 190,059
General and administrative expenses 164,411 169,321
1,092,419 1,066,746
Operating income 224,706 282,363
Financial expense (net) [3] 68,925 60,702
Income before income taxes, equity in income of unconsolidated companies and minority interest 155,781 221,661
Income taxes 48,484 67,166
Income before equity in income of unconsolidated companies and minority interest 107,297 154,495
Equity in income of unconsolidated companies 121 229
Income before minority interest 107,418 154,724
Minority interest in net income of subsidiaries 2,348 2,983
Net income before exceptional items 105,070 151,741
Exceptional items (net of tax) [4] 95,000 –
Net income 10,070 151,741
Dividend preference shares 3,551 3,551
Net income attributable to holders of ordinary shares 6,519 148,190
57
The figures [ ] refer to
the notes
Consolidated Balance Sheet November 30
Assets 2001 2000 › € 1,000
Intangible fixed assets [5] 43,352 –
Tangible fixed assets Property, plant and equipment [6] 458,006 445,492
Rental equipment [7] 179,153 233,475
637,159 678,967
Financial fixed assets Unconsolidated companies [8] 3,881 4,321
Financial lease receivables [9] 663,239 732,283
Other long term assets [10] 84,032 62,519
751,152 799,123
Current assets Inventories [11] 364,721 442,409
Accounts receivable [12] 1,260,950 1,246,415
Prepaid expenses 30,036 27,693
Cash and cash equivalents [13] 40,133 21,125
1,695,840 1,737,642
Total assets 3,127,503 3,215,732
58
after net income
appropriation
Consolidated Balance Sheet November 30
Liabilities 2001 2000 › € 1,000
Group equity Ordinary shares [14] 43,630 43,337
Priority shares [15] 2 2
Financing preference shares [16] 10,000 10,000
Paid-in capital [17] 511,392 505,387
Legal reserve [19] 1,679 1,750
Other reserves [20] 341,874 428,969
Total shareholders’ equity 908,577 989,445
Minority interest [21] 40,802 41,868
949,379 1,031,313
Long term liabilities (provisions) [22] 427,999 319,496
Long term debt [23] 754,132 853,577
Current liabilities Short term debt [24] 387,274 365,975
Other liabilities [25] 310,730 332,706
Accrued liabilities [26] 250,407 262,515
Deferred income 47,582 50,150
995,993 1,011,346
Total liabilities 3,127,503 3,215,732
59
Consolidated Statement of Cash Flow
2001 2000 › € 1,000
Cash flow from Net income 10,070 151,741
operating activities Adjustments to reconcile net income to cash flow
generated by operating activities:
Depreciation 194,191 194,487
Installed in rental equipment –136,503 –179,474
Divestments in rental equipment 86,038 99,564
Financial lease receivables 10,543 –87,443
Equity in income of unconsolidated companies 208 –5
Long term liabilities (provisions) 110,112 –27,124
Trade accounts receivable and other receivables 47,023 –67,534
Inventories 78,886 –43,557
Trade accounts payable –20,926 7,419
Net change in other working capital accounts* –31,197 –8,918
Total cash flow from operating activities 348,445 39,156
Cash flow from Capital expenditure:
investing activities Intangible assets (software) –15,178 –
Property, plant and equipment –130,329 –114,309
Other investments –22,362 283
Divestments:
Property, plant and equipment 23,931 49,630
Acquisition of unconsolidated companies – –79
Movement from unconsolidated companies to
consolidated companies – 534
Acquisitions (net of cash) –30,941 6,010
Total cash flow from investing activities –174,879 –57,931
60
* See page 61 for the specification of net change in other working capital accounts.
Consolidated Statement of Cash Flow
2001 2000 › € 1,000
Cash flow from Long term debt:
financing activities Proceeds from long term debt 82,330 195,579
Repayment of long term debt –172,624 –231,059
Borrowings and current portion of long term debts 20,833 63,175
Repurchase of shares –24,081 –74
Dividends paid –52,943 –19,108
Optional dividend – 2,685
Minority interest –1,066 –344
Other – –1,992
Total cash flow from financing activities –147,551 8,862
Effect of exchange rate changes –7,007 –5,816
Changes in cash and cash equivalents 19,008 –15,729
Specification of net change in other working capital accounts:Prepaid expenses –2,338 –7,469
Income taxes –10,259 –8,714
Value added taxes, social security and other taxes payable –628 –3,353
Pension liabilities 6,190 1,268
Other liabilities –9,391 1,196
Accrued liabilities –12,203 –929
Deferred income –2,568 9,083
Balance –31,197 –8,918
61
Summary of Significant Accounting Principles
Introduction
The following summary of significant accounting
principles is intended as a guide in interpreting
the financial statements.
Compared to the previous financial year, the
accounting principles have undergone the follow-
ing changes.
Goodwill arising upon acquisitions is capitalised
and written off over its estimated useful lifetime,
subject to a maximum of 20 years. Internal and
external costs of the development of software for
internal operational use are capitalised to the
extent that such software systems meet success
criteria. The above changes have led to a new
balance sheet asset item, referred to as ‘Intangible
assets’.
The valuation principle used for ‘Property, plant
and equipment’ has been changed. These assets
are now stated at acquisition value. The existing
book value of assets that were revalued in the past
now serves as a basis to which straight-line depre-
ciation is further applied.
The presentation of current and deferred taxation
has been modified. Tax positions that were
aggregated in the past are now shown separately,
which has led to an important extension of the
balance sheet.
The Group’s financial year commences on December 1and closes on November 30 of the subsequent year.
Principles of consolidation
The consolidated financial statements combine
the financial data for Océ .. and its subsidiaries.
The financial data of subsidiaries are fully con-
solidated; the minority interest is stated separately.
Joint ventures are consolidated pro rata.
A company is considered to be a subsidiary if Océ
directly or indirectly holds a majority controlling
interest in it.
The financial data of a company joining the Océ
Group in the course of a financial year are consol-
idated from the date of the Group’s entitlement to
that company’s results.
Where the acquisition cost is higher than the net
asset value determined on the basis of our ac-
counting principles, then the difference – being
the goodwill paid – has been capitalised with
effect from December 1, 2000. Previously this
goodwill was charged directly to Shareholders’
equity.
The principal companies affiliated to the Group
are listed on pages 95 and 96 of this report.
A number of affiliated companies of minor im-
portance have been omitted by virtue of the
provisions of Article 379, para. 2c, Book 2 of the
Dutch Civil Code.
Balance sheet items of subsidiaries are translated
into euro. As the opening assets and movements
in assets during the year are recalculated on the
basis of the closing exchange rate at the end of the
reporting period, differences arise as compared to
the calculation based on the exchange rate used
for the previous period. Such differences are
charged against or added to the Shareholders’
equity (under Accumulated translation
adjustment).
Statement of operations items of subsidiaries are
translated into euro at the average exchange rate
during the reporting period. The result calculated
on this basis differs from that calculated on the
basis of the closing exchange rate for the reporting
period. This difference is debited or credited
directly to the Shareholders’ equity (under
Accumulated translation adjustment).
62
Summary of Significant Accounting Principles
Consolidated Statement of Operations
Total revenues These are the proceeds from the
sale of goods and services to third parties, excluding
turnover taxes. Receipts from sales also include
the receipts from the financial leasing contracts
concluded during the financial year. Interest
income arising from these contracts is included
under total revenues.
Receipts from rental and service contracts for
equipment are included in revenues as far as they
relate to the reporting period. Where rental and
service contracts have been invoiced in advance,
the relevant amounts are shown in the balance
sheet under ‘Deferred income’.
Costs Consumption of raw materials and other
cost items are based on historic cost.
Depreciation on fixed production assets is charged
at a fixed percentage of the acquisition value of
the relevant asset. Depreciation on rental
equipment is charged at a fixed percentage of the
all-in cost. Government contributions to oper-
ating costs are deducted directly from these costs.
Provisions are made to cover risks linked to
business operations.
Research and development expenses Expenditure
on research and development, including pur-
chased know-how, is charged directly to income.
Development credits and subsidies Development
credits received from the government are subject
to a contingent repayment liability. This contin-
gent liability, to which a contractual mark-up is
applied each year, is not included in the balance
sheet. According as the relevant projects prove
successful, the liability ceases to be contingent in
nature and a real liability arises. A provision to
cover these liabilities is set up in the year in which
the liability arises. The actual repayments fall due
pro rata to the revenues achieved on the relevant
project. These repayments are charged to the
provision for development credits. Each year the
balance of credits received and the repayment
liabilities that have arisen in respect of successful
projects are included in the results under
‘Research and development expenses’.
Subsidies received from the government are in-
cluded in the statement of operations as an income
item in the year of the entitlement thereto.
Financial expense (net) Besides interest received
and interest paid, also expenses relating to raising
of loan capital are included. The effect of interest
rate instruments and interest on loans are also
included under this heading.
Income tax This is calculated on the commercial
results at the rates applicable in the various
countries. This method implies that provisions are
made for deferred income taxes. The entitlement
to loss compensation is taken into consideration
in so far as there is a reasonable expectation that it
can be realised. Allowance is made for non-
offsettable dividend withholding tax at the
moment of dividend distribution by an affiliated
company.
63
Summary of Significant Accounting Principles
Consolidated Balance Sheet
Assets and liabilities are included at face values,
unless stated otherwise.
Foreign currencies Receivables and payables
denominated in a foreign currency are translated
into local currency at the exchange rate ruling at
year end. These exchange rate differences, in-
cluding results on forward exchange contracts
relating to the positions of subsidiaries are re-
corded under Shareholders’ equity. The differ-
ences relating to operational cash flows, including
those arising on the relevant forward exchange
contracts, are included in income.
Intangible assets Goodwill arising upon the
acquisition of new interests in group companies,
is written off on a straight-line basis over the
estimated useful lifetime, subject to a maximum
of twenty years. The development and purchase
costs of certain types of software for internal use
are capitalised and written off over a three-year
period after first use. Capitalisation must comply
with stringent success criteria.
Property, plant and equipment With effect from
the 2001 financial year ‘Property, plant and
equipment’ are valued at acquisition value, less
cumulative depreciation. Some of these fixed
assets were previously valued on a current cost
basis. This value has been maintained and will
not be subject to any further adjustment.
Depreciation is provided for according to the
straight-line method based on the expected use-
ful lifetime of the relevant asset. Depreciation of
specific pieces of equipment used for the manu-
facture of machines takes place pro rata to the
expected number of units to be manufactured.
Rental equipment These are valued at the all-in
cost less cumulative depreciation on a straight-
line basis.
Unconsolidated companies These are included at
the attributable net asset value, calculated where
possible on the basis of the valuation principles
applied in these Financial Statements and taking
into account the specific risks connected with the
company’s nature and location.
Financial lease receivables These comprise the
long-term receivables and residual values in
respect of financial lease contracts. They are
valued at the present value of the contracted
receivables, taking into account the risk of
uncollectability.
Other long term assets These comprise assets that
are not immediately realisable, such as mortgage
debtors, cash advances and guarantee deposits as
well as deferred tax benefits. They are valued at
expected realisable value.
Inventories Purchased inventories are valued at
purchase price by the First-in-First-out method.
Inventories of finished and semi-finished pro-
ducts and spare parts are valued at manufacturing
cost inclusive of a surcharge for indirect costs
related to the manufacturing, no interest being
charged. The risk of obsolescence is allowed for.
Results on transactions between consolidated
companies are eliminated.
Accounts receivable Trade debtors, financial
leases, other debtors and amounts receivable
from unconsolidated companies are shown at
face value less an allowance for bad and doubtful
accounts.
Prepaid expenses These are shown at face value.
Cash and cash equivalents These are shown at
face value.
Minority interest The minority interest in sub-
sidiary companies is included at the net asset
value determined in accordance with the valua-
tion principles used in these Financial State-
ments.
64
Summary of Significant Accounting Principles
Long term liabilities (provisions) The provision
for deferred income taxes is calculated on the
differences between valuation of assets and lia-
bilities for commercial and tax purposes, based
on the effective rate of income tax in the various
countries and is stated at face value. Capitalised
entitlements to fiscal loss compensation are in-
cluded to the extent that they are considered to
be realisable.
The self insurance franchise provision relates to
uninsured potential future losses that have not
yet occured.
The provision for retirement benefits and sever-
ance payments relates to the commitments, de-
termined on an actuarial basis, which are not
covered by separate pension or redundancy funds,
as well as to other non-activity schemes. In the
Netherlands and in most other countries the
pension schemes are administered by separate
funds which apply local arrangements and prac-
tices. On aggregate the liabilities of € 853 million
are offset by separately held assets of € 783
million. The liabilities have been calculated on
the basis of the present salary level of the relevant
employees. The provision for non-activity
schemes relates to employees who have opted to
make use of such a scheme.
The restructuring provision relates to costs
connected with the reorganisation of business
activities.
Other long term liabilities (provisions) among
others relate to (legal) proceedings and guarantee
commitments.
Long term debt These include loans available for
longer than one year.
Current liabilities These commitments comprise
liabilities falling due within one year.
Commitments and contingent liabilities not
stated in the balance sheet These are commit-
ments and contingent liabilities arising from
contracts, mostly of more than one year (leasing
contracts, rental contracts, capital expenditure
commitments, repayable development credits,
financial instruments, etc.).
Consolidated Statement of Cash Flow
The figures in this statement are derived from the
movements in the Consolidated Balance Sheet.
In the event of a major acquisition, however, the
acquired net asset value, net of cash, is shown
separately.
The movement in the portions of long term debt
falling due within one year is shown under ‘Long
term debt: repayment of long term debt’.
65
Notes to the Consolidated Statement of Operations
Total revenues 2001 2000 › € 1,000
[1]Total revenues 3,233,637 3,223,932
Segmental information
Wide Format Printing Systems Document Printing Systems Production Printing Systems total › € million
2001 2000 2001 2000 2001 2000 2001 2000
Total revenues 912 901 1,529 1,551 793 772 3,234 3,224
Operating income
before research and
development expenses 152 165 137 168 135 139 424 472
Assets 772 828 1,727 1,754 629 634 3,128 3,216
revenues per geographical area geographical spread of assets employees
› € million › € million
2001 2000 2001 2000 2001 2000
Countries Germany 392 405 538 498 3,299 3,417
Netherlands 279 260 586 609 4,059 3,962
United Kingdom 219 219 262 257 1,111 1,075
France 220 220 201 183 1,388 1,491
Rest of Europe 568 595 422 439 3,301 3,349
United States 1,333 1,287 1,000 1,087 8,234 7,810
Rest of the world 223 238 119 143 1,080 1,149
Total 3,234 3,224 3,128 3,216 22,472 22,253
Exchange rates of a average rate in euro balance sheet rate in euro
number of currenciesof importance to Océ 2001 2000 2001 2000
Pound sterling 0.62 0.61 0.62 0.61
American dollar 0.89 0.93 0.89 0.86
Australian dollar 1.72 1.58 1.71 1.65
Japanese yen (10,000) 107.53 99.18 109.82 95.92
66
Notes to the Consolidated Statement of Operations
Costs and expenses 2001 2000 › € 1,000
Depreciation Intangible assets 112 –
Property, plant and equipment 91,372 86,116
Rental equipment 102,707 108,371
194,191 194,487
Payroll expenses Wages and salaries 1,051,528 996,865
Social security 206,283 195,606
Pensions 51,901 49,086
1,309,712 1,241,557
periodic pay performance-related pension contributions total in europay
R.L. van Iperen 463,074 137,333 238,235 838,642
J. van den Belt 320,815 25,484 55,361 401,660
J.F. Dix 358,783 114,444 216,453 689,680
G.B. Pelizzari 360,027 114,444 189,680 664,151
The remuneration costs and pension scheme contribu-
tions of former Executive Board members are € 111,174
(2000: nil).
Under the Océ Stock Option Plan 91,000 unconditional
options were granted to the members of the Board of
Executive Directors (2000: 112,000 units). A table showing
the interests of the Executive Board members in the option
plans can be found on page 81 of this annual report. At the
end of the financial year the members of the Board of
Executive Directors held no ordinary shares in Océ
(2000: nil) and no rights to options listed on the
Options Exchange.
The remuneration for the 2001 financial year of the
present and former members of the Board of Supervisory
Directors amounted to € 196,714 (2000: € 193,443). At
the end of the financial year the members of the Board of
Supervisory Directors held 2,969 ordinary shares in Océ
(2000: 2,969) and no rights to options listed on the
Options Exchange.
67
The individual remuneration of the members of the Board
of Executive Directors in function this year is:
Notes to the Consolidated Statement of Operations
2001 2000 › € 1,000
[2] Research and Total expenditure on research and development 203,254 198,875
development Development credits repayable and net subsidies received –3,669 –8,816
199,585 190,059
[3] Financial expense (net) Interest and similar income items –5,404 –8,584
Interest charges and similar expenses 72,125 67,571
Other financial expenses 2,204 1,715
68,925 60,702
Income taxes A reconciliation of the Dutch statutory income tax rate
to the effective income tax rate is set forth below:
Dutch statutory tax rate 35.0 35.0 per cent
Non-deductible expenses 2.1 1.8
Foreign tax rate deviating from the Dutch tax rate 2.8 –1.6
Tax credits –2.0 –1.5
Change valuation allowance –5.8 –4.3
Other –1.0 0.9
Effective income tax rate 31.1 30.3
[4] Exceptional items The extraordinary charges relate to a restructuring pro-
vision for redundancy costs of employees and the intended
write-off of assets that will be taken out of use.
Restructuring provision 125,000 – › € 1,000
Income taxes 30,000 –
Exceptional items (net) 95,000 –
Employees by category 2001 2000 employees
Research & Development 1,840 1,863
Manufacturing & Logistics 2,887 3,258
Facility Services 6,046 5,279
Sales 4,653 4,753
Service 4,914 5,059
Accounting and other 2,132 2,041
Number of employees at November 30 22,472 22,253
Average number of employees 22,363 22,005
68
Notes to the Consolidated Balance Sheet
[5] Intangible fixed assets goodwill software total › € 1,000
At December 1, 2000
Acquisition value – – –
Accumulated depreciation – – –
Book value – – –
Movements in book valueExpenditure 28,286 15,178 43,464
Depreciation 85 27 112
Foreign currency translations – – –
At November 30, 2001 28,201 15,151 43,352
Acquisition value 28,286 15,178 43,464
Accumulated depreciation 85 27 112
Book value 28,201 15,151 43,352
The estimated useful lives of the various
classes of assets are as follows:
– goodwill: 10 to 20 years;
– software: 3 years.
69
70
Notes to the Consolidated Balance Sheet
Tangible fixed assets
[6] Property, plant › € 1,000 property and production other fixed under fixed assets total
and equipment plant machines assets constructionand not in
prepayments production
process
At December 1, 2000
Acquisition value 331,903 396,911 376,203 51,095 3,127 1,159,239
Accumulated depreciation 145,151 301,218 265,409 1,154 815 713,747
Book value 186,752 95,693 110,794 49,941 2,312 445,492
Movements in book valueExpenditure 20,774 47,433 64,662 –2,540 – 130,329
Divestments 10,495 4,254 8,180 1,002 – 23,931
Net expenditure 10,279 43,179 56,482 –3,542 – 106,398
Acquisition of companies – 45 564 – – 609
Depreciation 9,033 33,506 48,833 – – 91,372
Foreign currency translations –678 –1,073 –958 –393 –19 –3,121
At November 30, 2001 187,320 104,338 118,049 46,006 2,293 458,006
Acquisition value 334,360 413,875 405,215 46,006 5,436 1,204,892
Accumulated depreciation 147,040 309,537 287,166 – 3,143 746,886
Book value 187,320 104,338 118,049 46,006 2,293 458,006
The estimated useful lives of the various classes of fixed assets are as follows:
– property and plant: 20 to 50 years;
– production machines: 8 or 10 years;
– equipment: 3 to 10 years;
– vehicles: 4 or 5 years.
The above overview contains an amount of € 11.6 million for financial
leases (2000: € 11.9 million).
Notes to the Consolidated Balance Sheet
2001 2000 › € 1,000
[7] Rental equipment At December 1, 2000/1999
Cost 596,304 588,924
Accumulated depreciation 362,829 331,726
Book value 233,475 257,198
Movements in book valueInstalled on rental 136,513 179,474
Divestments –86,038 –99,564
Depreciation –102,707 –108,371
Foreign currency translations –2,090 4,738
At November 30 179,153 233,475
Cost 551,656 596,304
Accumulated depreciation 372,503 362,829
Book value 179,153 233,475
The estimated useful life of the various types of machines
ranges from 3 to 5 years.
Financial fixed assets 2001 2000 › € 1,000
[8] Unconsolidated Book value at December 1, 2000/1999 4,321 4,367
companiesChanges due to Equity in income 121 229
Increase in/acquisition of companies – 85
Divestments – –6
Decrease resulting from addition to
consolidated companies – –534
Dividends declared –329 –224
Foreign currency translations –232 404
Book value at November 30 3,881 4,321
[9] Financial lease Lease amounts receivable at December 1, 2000/1999 937,648 799,028
receivables New lease amounts receivable 438,477 520,095
To current lease amounts receivable –489,643 –443,035
Foreign currency translations –11,893 61,560
Lease amounts receivable at November 30 874,589 937,648
Residual values 20,890 33,052
Unearned income –232,240 –238,417
At November 30 663,239 732,283
71
Notes to the Consolidated Balance Sheet
2001 2000 › € 1,000
[10] Other long Book value at December 1, 2000/1999 62,519 58,101
term assets New amounts receivable 26,148 5,426
Repayments –3,647 –1,255
Foreign currency translations –988 247
Book value at November 30 84,032 62,519
Other financial assets include an amount of € 0.4 million
(2000: € 0.3 million) for loans provided to the Board of
Executive Directors. An amount of € 2.5 million
(2000: € 1.8 million) was provided to personnel in the
form of loans.
Current assets 2001 2000 › € 1,000
[11] Inventories Raw and other materials 31,147 37,075
Semi-finished products and spare parts 130,922 129,279
Finished products and trade stock 202,652 276,055
Total 364,721 442,409
[12] Accounts receivable Trade accounts receivable 649,169 696,344
Discounted trade bills –179 –424
Lease receivables 489,643 443,035
Income taxes 27,324 19,627
Other 94,993 87,833
Total 1,260,950 1,246,415
[13] Cash and cash Cash and bank balances 35,948 15,459
equivalents Time deposits 4,185 5,666
Total 40,133 21,125
72
Notes to the Consolidated Balance Sheet
Group equity 2001 2000 › € 1,000
Authorised capital* Ordinary shares 72,500 72,500
Priority shares 2 2
Financing preference shares 15,000 15,000
Protective preference shares 87,500 87,500
Total 175,002 175,002
Paid-up share capital [14] Ordinary sharesAmount at December 1, 2000/1999 43,337 42,224
Conversion of convertible loans 293 180
Stock dividend – 933
Amount at November 30 43,630 43,337
Number at December 1, 2000/1999 86,674,380 84,450,154 shares
Conversion of convertible loans 587,129 359,218
Stock dividend – 1,865,008
Number at November 30 87,261,509 86,674,380
[15] Priority sharesAmount at November 30 2 2
Number at November 30 30 30 shares
[16] Financing preference sharesAmount at November 30 10,000 10,000
Number at November 30 20,000,000 20,000,000 shares
[17] Paid-in capital Amount at December 1, 2000/1999 505,387 502,695
Conversion of convertible loans 6,005 3,625
Stock dividend – –933
Amount at November 30** 511,392 505,387
[18] Revaluation reserve Amount at December 1, 2000/1999 – 37,155
To Provision for deferred income taxes – –1,992
To Retained earnings – –35,163
Amount at November 30 – –
[19] Legal reserve Reserve for non-distributed income of unconsolidated companiesAt December 1, 2000/1999 1,750 1,733
To (from) Retained earnings –71 17
At November 30 1,679 1,750
73
* For further information about the authorised capital see page 90.
** If distributed in the form of shares, this amount is available to shareholders without attracting Dutch income tax.
Notes to the Consolidated Balance Sheet
2001 2000 › € 1,000
[20] Other reserves Accumulated translation adjustmentAt December 1, 2000/1999 21,695 –39,586
Foreign currency translations –20,819 61,281
At November 30 876 21,695
Retained earningsAt December 1, 2000/1999 429,823 286,231
From (to) Legal reserve 71 –17
Added from net income – 98,661
Goodwill – –1,667
Repurchase of shares – –74
Dividend –42,266 –
Optional stock dividend – 11,526
From Revaluation reserve – 35,163
At November 30 387,628 429,823
Repurchased shares relating to the Stock Option PlanAmount at December 1, 2000/1999 –22,549 –22,549
Repurchased –24,081 –
Amount at November 30 –46,630 –22,549
Repurchased shares are valued at cost.
Number at December 1, 2000/1999 1,149,840 1,149,840 shares
Repurchased 2,000,000 –
Number at November 30 3,149,840 1,149,840
Total other reserves 341,874 428,969
[21] Minority interest At December 1, 2000/1999 41,868 42,213
Capital distribution/contribution –3,102 –3,474
Share in income 2,348 2,983
Foreign currency translations –312 146
At November 30 40,802 41,868
74
Notes to the Consolidated Balance Sheet
[22] Long term liabilities (provisions)
Provision for deferred The composition of deferred 2001 2000 › € 1,000
income taxes income tax assets and liabilitiesis as follows assets liabilities assets liabilities
Intangible fixed assets 38,477 – 49,352 –
Leasing – 112,123 – 123,179
Other fixed assets 14,059 4,471 13,170 9,894
Current assets 52,740 671 69,814 601
Long term liabilities (provisions) 45,039 98 1,296 1,496
Current liabilities 23,292 21,433 19,612 9,562
Total deferred assets/liabilities 173,607 138,796 153,244 144,732
Deferred assets/liabilities
(netted by fiscal entity) 93,294 58,483 80,510 71,998
Carry forward losses 23,676 – 22,380 –
Valuation allowance –53,265 – –62,268 –
Provision for deferred income
tax assets and liabilities 63,705 58,483 40,622 71,998
Deferred tax assets form part of the balance sheet caption
‘Other long term assets’.
Other provisions The composition of the other self insurance retirement bene- development reorganisation other total
provisions is as follows fits and severance credits provision provisions
(› € 1,000) obligations
At December 1, 2000 1,815 188,096 142 27,776 29,669 247,498
Movements due toAdditions –907 21,205 2,269 125,000 11,668 159,235
Withdrawals – –6,169 –286 –44,811 –2,888 –54,154
From ‘Short term’ – – – 18,549 – 18,549
Foreign currency translations – –1,319 – – –293 –1,612
At November 30, 2001 908 201,813 2,125 126,514 38,156 369,516
The short term part of these provisions is approximately € 75 million.
2001 2000 › € 1,000
Total long term liabilities 427,999 319,496
(provisions)
75
Loans principal amount average interest rate redemption amounts due after › € 1,000at November 30 (%) more than five years
Euro debenture loan 113,445 6.38 2006 –
Euro debenture loan 136,134 6.25 2007 136,134
Euro 13,613 7.20 2003 –
Euro 22,867 3.80 2003 –
Euro 9,077 6.74 2004 –
Euro 22,689 6.84 2005 –
Euro 77,143 6.35 2006 –
Euro 4,538 5.84 2013 4,538
Euro 21,760 4.05 2003/5 –
American dollars 56,433 6.39 2005 –
American dollars 56,433 6.06 2006 –
American dollars 38,600 2.51 2003/5 –
British pounds 54,991 4.60 2005 –
Swiss francs 66,161 2.34 2003/5 –
Norwegian crowns 38,378 7.24 2003/5 –
Swedish crowns 3,636 4.07 2003/5 –
Other 6,893 3.62 2003/5 –
Total 742,791 5.53 140,672
The fixed interest rates of the euro (debenture) loans
have been fully swapped into variable interest rates.
The heading ‘Loans’ also includes multi-year stand-by
credit facilities. Where these relate to loans of a short term
nature, they are accounted for as ‘Short term borrowings’
under short term debt. In 2001 these amounted to € 189
million (2000: nil).
Notes to the Consolidated Balance Sheet
[23] Long term debt 2001 2000 › € 1,000
Convertible euro debentures to Company personnel 9,726 8,145
Loans 742,791 841,708
Capitalised lease obligations 1,615 3,724
Total 754,132 853,577
76
Convertible eurodebentures to Company personnel The average conversion price is € 20.31 (2000: € 22.43).
Notes to the Consolidated Balance Sheet
Current liabilities 2001 2000 › € 1,000
[24] Short term debt Borrowings under bank lines of credit 4,638 15,914
Current portion of long term debt 136,115 142,353
Short term borrowings 246,521 201,397
Convertible subordinated euro debentures – 6,311
Total 387,274 365,975
Under ‘Short term borrowings’ loans payable on call
amounting to € 84 million are included after deduction of
a deposit in respect of such loans which was settled on the
first working day after balance sheet date.
[25] Other liabilities Trade accounts payable 143,330 147,630
Notes payable 9,423 20,204
Income taxes 7,923 10,488
Value added taxes, social security and other taxes payable 54,321 54,950
Pension liabilities 8,685 2,495
Dividend 39,719 40,326
Other 47,329 56,613
Total 310,730 332,706
[26] Accrued liabilities Salary expenses and payroll taxes 140,951 144,432
Other 109,456 118,083
Total 250,407 262,515
77
Notes to the Consolidated Balance Sheet
78
Commitments and contingent liabilities 2001 2000 › € million
not stated in the Balance Sheet
Collateral security Collateral security for liabilities 0.1 1.2
Contingent liabilities Guarantee commitments 2.7 3.6
Government development credits 47.8 50.1
Interest risks Interest rate instruments are used to
achieve the desired risk profile in terms of fixed
and variable interest exposures. A central objec-
tive of the policy is to prevent a mismatch between
the portfolio of rentals and leases and the finan-
cing of the Group. Efforts are made to achieve a
ratio of 60 to 80% between the above fixed-
interest assets and liabilities. At balance sheet
date the contract value/notional principal amount
and the market value of interest rate instruments
(interest rate swaps) were as follows (in millions):
€ 1,311.2 and € 18.3 (2000: € 1,435.4 and € 9.4).
Credit risks These risks are reduced by doing
business solely with financial institutions which
have a high credit rating, with fixed limits being
applicable to each institution.
Financial instruments
Financial instruments are used to hedge against
the financial risks that are inherent to the Group’s
underlying commercial activities. For an explan-
ation of the foreign exchange management policy,
see page 54.
Foreign exchange risks The policy for the man-
agement of foreign exchange risks is aimed at pro-
tecting the operating income and participations
held in foreign currencies. Forward foreign ex-
change contracts have been entered into to control
these foreign exchange risks. The contract value
and the result of forward foreign exchange
contracts at balance sheet date were as follows (in
millions):
– in respect of cash flows: € 228.6 and € 0.2
(2000: € 347.2 and € –30.8);
– in respect of participations: € 465.9 and € 9.2
(2000: € 442.5 and € –5.3).
Guarantee commitments include guarantees
given in respect of import duties and loans from
third parties.
Other commitments Repurchase commitments
of € 10.1 million (2000: € 9.6 million) exist on
the lease contracts with third parties. Of this
amount, the expected amount to be paid within
one year is € 0.4 million (2000: nil) and € 9.7
million within five years (2000: € 9.6 million). As
a result of these commitments the machines can
be sold again upon their return. The estimated
market value upon return is higher than the
repurchase commitment.
Recourse liabilities in respect of bills discounted
amount to € 0.2 million (2000: € 0.4 million).
Total contracted lease commitments amount to
€ 316 million (2000: € 233 million).
These commitments fall due over the next
20 years. The maturity dates over the next years
are as follows:
2002 88 › € million
2003 64
2004 43
2005 31
2006 23
Other commitments, such as buying contracts etc.,
have been entered into solely as part of normal
business operations.
Notes to the Consolidated Balance Sheet
Option plan
To encourage the long term achievement of the
Company’s objectives, Océ operates a stock
option plan under which decisions are taken each
year on the granting to directors and certain senior
company executives of option rights and/or Share
Appreciation Rights (s) in respect of ordinary
shares in Océ. A is the right to receive payment
of the share price gain, whereby the share price
gain is the difference between the stock market
price of the share on the day of exercise and the
exercise price fixed on the day of grant. Instead of
receiving payment of the share price gain, a
participant may also request delivery of a share.
Océ Stock Option Plan 2002 In contrast to the
previous Océ Stock Option Plans, the Océ Stock
Option Plan 2002 comprises not only unconditi-
onal (fixed) stock options and s, but also con-
ditional (variable) stock options. These conditi-
onal options have been granted to a limited
number of executives and officers within the total
group of participants in the Océ Stock Option
Plan 2002.
Unconditional option rights/s During the
financial year an aggregate of 666,000 unconditio-
nal option rights and 15,000 s were granted
to a total of 178 participants for the Océ Stock
Option Plan 2002. For participants in the Nether-
lands and Belgium the unconditional options
have a duration of nine years, whilst the duration
for participants in other countries amounts to
eight years. The s were granted to the Swiss
participants and have a duration of eight years.
Participants in the Océ Stock Option Plan are
expected to abide by a code of conduct or waiting
period. This code stipulates that, where the dura-
tion of the unconditional options or s amounts
to eight years, they will not exercise option rights
or s within two years after grant and, where the
duration of the unconditional options amounts to
nine years, they will not exercise within three
years after grant.
Conditional option rights A limited group of
executives and officers within the group of parti-
cipants have been awarded conditional option
rights in addition to unconditional option rights.
As compared to previous Océ Stock Option
Plans, the relevant participants have been granted
half the former number of unconditional option
rights, whilst the other half consists of option
rights that are conditional in nature. The duration
of these conditional option rights is nine years for
Dutch participants and eight years for non-Dutch
participants. The relevant option rights are condi-
tional in nature because they can only be exercised
three years after grant, subject to the condition
that a performance criterion has been met.
The performance criterion applied by Océ is the
average growth in Earnings Per Share () for the
three financial years as from the moment of grant.
Depending on the extent of the average
growth, the conditionally granted option rights
either become unconditional or lapse. The
norm applied is 10%. If the average growth
amounts to less than 5%, all conditionally granted
option rights will lapse. If there is an average
growth of between 5% and 10%, part of the con-
ditional option rights will become unconditional
and part will lapse. If the norm of at least
10% is achieved, all conditional option rights
become unconditional, whilst the number of
unconditional option rights may at most be
doubled if the average growth in amounts to
15% or more.
In the Océ Stock Option Plan 2002 conditional
option rights were granted to 32 participants. If
the norm of 10% is achieved, 196,000 option
rights will become unconditional. The maximum
possible number of option rights that may
become unconditional is 392,000.
79
Notes to the Consolidated Balance Sheet
Exercise price For the conditional and uncon-
ditional options or s granted in this financial
year to participants outside the Netherlands the
exercise price is equal to the opening share price of
the Océ share on Euronext Amsterdam on the
date of grant and amounts to € 9.77.
For the conditional options granted in this finan-
cial year to participants in the Netherlands the
exercise price is likewise equal to the opening share
price of the Océ share on Euronext Amsterdam
on the date of grant and amounts to € 9.77.
When participants in the Netherlands were
granted the unconditional option rights, they
were offered a choice between an exercise price of
€ 9.77, € 10.75, € 11.72 or € 13.19. The higher the
exercise price compared to the price of the Océ
share upon grant, the lower the taxable amount
that has to be added to the taxable income for
Dutch participants. Against this, however, the
potential result upon exercise will also be lower.
Since 2001, as a consequence of the new tax
legislation, it has also been possible to opt not to
pay wages tax upon grant or when the options
become unconditional, but to pay tax upon
exercise over the entire benefit actually received as
a result of the exercise of the option rights.
Regulations Participation in the Océ Stock Option
Plan is subject to regulations so as to prevent the
misuse of inside information. Participants are
prohibited from trading in Océ options on the
Options Exchange in Amsterdam and from
disposing of or pledging the options they have
been granted. Participants have to transfer the
exercise of their options to an independent
Trustee designated by the company. This Trustee
will then exercise the options according to the
instructions given by the participants. Participants
can only give such instructions if they are not in
possession of inside information during the desig-
nated periods. A designated period is a period of
at most nine stock exchange trading days after
publication of the quarterly results.
Total number of options/s As at November
30, 2001 a total of 3,798,000 unconditional
options or s in respect of ordinary shares have
been granted at an average exercise price of € 20.72
and a total of 196,000 conditional options, based
on an norm of at least 10%, at an average
exercise price of € 9.77.
The remaining duration of these options is 4.5
years on average.
Purchase of shares The company's policy is to
purchase the shares required to satisfy the Océ
Stock Option Plan either before or upon exercise.
Shares may also be issued to cover commitments
under existing stock option plans.
For the delivery of ordinary shares as a result of
the exercise of options, nil shares (2000: 17,000
shares) were purchased in 2001 and nil shares
(2000: nil shares) were issued at the moment of
exercise.
The table on the next page gives an overview of
the information relating to the outstanding
options and s in respect of shares as at
November 30, 2001.
80
Notes to the Consolidated Balance Sheet
81
Stock issued number of options exercise price in euro options exercised outstanding at expiration date
Option forfeited number of November 30,
Plan in options 2001
year
1997 806,400 21.05 125,800 680,600 – 25-11-2001
1998 807,000 24.85 63,000 26,000 718,000 28-11-2002
1999 872,500 30.40-41.15 65,000 – 807,500 29-11-2003/2004
2000 791,000 16.85-22.98 37,000 – 754,000 26-11-2004/2005
2001 847,500 18.10-24.44 10,000 – 837,500 29-11-2005/2006
2002 fixed 681,000 9.77-13.19 – – 681,000 28-11-2009/2010
2002 variable 392,000 9.77 – – 392,000 28-11-2009/2010
5,197,400 300,800 706,600 4,190,000
The table below shows the rights granted under
this option plan to the members of the Executive Board
after their appointment.
Stock issued number of options outstanding at exercise price expiration date
Option November 30, 2001 in euro
Plan in
year
R.L. van Iperen 1998 50,000 50,000 24.85 28-11-2002
1999 35,000 35,000 30.40 29-11-2004
2000 42,000 42,000 17.02 26-11-2005
2001 42,000 42,000 18.10 29-11-2006
2002 fixed 21,000 21,000 9.77 28-11-2010
2002 variable 42,000 42,000 9.77 28-11-2010
J. van den Belt 2002 fixed 17,500 17,500 9.77 28-11-2010
2002 variable 35,000 35,000 9.77 28-11-2010
J.F. Dix 1999 35,000 35,000 30.40 29-11-2004
2000 35,000 35,000 17.02 26-11-2005
2001 35,000 35,000 18.10 29-11-2006
2002 fixed 17,500 17,500 9.77 28-11-2010
2002 variable 35,000 35,000 9.77 28-11-2010
G.B. Pelizzari 1999 35,000 35,000 30.40 29-11-2004
2000 35,000 35,000 17.02 26-11-2005
2001 35,000 35,000 18.10 29-11-2006
2002 fixed 35,000 35,000 9.77 28-11-2010
The members of the Board of Executive Directors together
hold 84,000 options which were granted prior to their
appointment to the Executive Board.
2001 2000 › € 1,000
Net income and share- Net income as reported in the Consolidated Statement
holders’ equity under of Operations 10,070 151,741
US GAAP
US GAAP adjustments Business combinations –11,949 –12,317
Reorganisation costs 40,099 –29,894
Depreciation – 498
Self insurance –908 –908
Pensions 8,236 5,738
Book profit on disposal of fixed assets – –4,415
Use of tax-deductible goodwill –14,800 –9,685
Deferred income taxes on above adjustments –16,595 8,115
Net income under 14,153 108,873
Earnings per ordinary Based on average number of shares outstanding (basic) 0.12 1.25 euro
share of € 0.50 nominal Based on increase upon conversion/options (diluted) 0.13 1.23 euro
under US GAAP
Shareholders’ equity as reported in the Consolidated
Balance Sheet 908,577 989,445
US GAAP adjustments Intangible fixed assets 206,688 226,833
Reorganisation provision 83,357 25,424
Pension provision 49,338 29,211
Additional minimum pension liability – –385
Revaluation of Property, plant and equipment – –12,308
Self insurance franchise 908 1,815
Final dividend 39,719 40,326
Accrued liabilities – 4,084
Deferred income taxes on above adjustments –9,716 20,244
Shareholders’ equity under 1,278,871 1,324,689
Notes to the Consolidated Balance Sheet
82
United States generally accepted accounting
principles (US GAAP)
Net income and share- Océ’s consolidated financial statements are drawn up on the
holders’ equity based on basis of the accounting principles applied in the Nether-
United States accounting lands, which differ in a number of respects from United
principles States generally accepted accounting principles ( ).
The statements below give an approximate indication of the
effect that application of would have on net in-
come, earnings per share and shareholders’ equity. This in-
formation will be presented in more detail in the Form 20-
report which will be submitted to the Securities and
Exchange Commission and which will be available on
request at the end of May.
The main differences between the accounting
principles applied by Océ (Dutch ) and
are summarised below:
– Goodwill Goodwill paid has been capitalised by
Océ since December 1, 2000. Previously this
goodwill was charged directly to shareholders’
equity. Under goodwill is capitalised as
intangible fixed assets and then amortized on a
straight-line basis over a period of 10 to 40 years.
– Reorganisation provision Under the for-
mation of a provision is subject to more stringent
criteria. For this reason often a part of a provision
is not yet recognised in .
– Revaluation of Property, plant and equipmentAs described on page 62 of the financial statements,
Property, plant and equipment are valued at acqui-
sition value since the 2001 financial year. Some of
these assets were formerly valued at current cost.
Under such fixed assets are valued at
their acquisition value. As a result, the higher
depreciation costs were adjusted to allow for this.
– Self insurance franchise Under a pro-
vision for self insurance is not permitted.
– Dividends not declared The final dividend on
ordinary shares that is submitted to the share-
holders’ meeting for approval is included under
‘Current liabilities’ in the financial statements.
Under this amount should be classified
under shareholders’ equity until the moment
when the net income appropriation has been
approved by the shareholders.
– Pensions Under , pension costs are cal-
culated according to 87. As this method of
calculation differs from the local calculations, the
result is a variation in charges and balance sheet
positions.
– Book profit on disposal of fixed assets In valuing one
fixed asset item a provision had been made which
was not acceptable under . This fixed
asset was sold in the previous year, resulting in
the realisation of this difference.
– Use of tax-deductible goodwill In a previous acqui-
sition a provision was made for the capitalised
claims in respect of deferred taxation. If the claims
are realised, the amounts are released to the
Consolidated Statement of Operations under
Income taxes. Under , if the claims are
realised, they must first be deducted from Good-
will and then from other intangible fixed assets
and, after these intangibles have been amortised in
full, the gain resulting from this claim is allowed
to be released and credited to the Consolidated
Statement of Operations under Income taxes.
Notes to the Consolidated Balance Sheet
2001 2000 › € 1,000
Under the Consolidated Balance Sheet items
set out below would be:
Balance sheet items Intangible fixed assets (net) 250,360 226,833
under US GAAP Property, plant and equipment (net) 458,006 433,184
Long term liabilities Provision for deferred income taxes 68,198 11,131
Self insurance franchise – –
Reorganisation provision 43,157 2,352
Pension provision 152,475 158,885
Other long term liabilities (provisions) 38,156 29,669
Current liabilities Dividend – –
Other liabilities 47,644 56,612
Other accrued liabilities 109,456 113,998
83
84
Océ .. / Statement of Operations 2001 2000 › € 1,000
Income of consolidated companies 23,011 150,028
Other net income –12,941 1,713
Net income 10,070 151,741
Océ .. / Balance Sheet November 30
Assets 2001 2000 › € 1,000
Financial fixed assets Consolidated companies [27] 789,989 895,243
Amounts receivable from consolidated companies [28] 1,061,998 976,866
Unconsolidated companies [29] 3,661 4,100
Other long term assets 11 11
1,855,659 1,876,220
Current assets Amounts receivable from consolidated companies 65,326 68,591
Other amounts receivable 25,765 12,864
Cash and cash equivalents [30] 27,662 6,574
118,753 88,029
Total assets 1,974,412 1,964,249
after net income
appropriation
85
Océ .. / Balance Sheet November 30
Liabilities 2001 2000 › € 1,000
Shareholders’ equity Ordinary shares 43,630 43,337
Priority shares 2 2
Financing preference shares 10,000 10,000
Paid-in capital 511,392 505,387
Legal reserve 1,679 1,750
Other reserves 341,874 428,969
908,577 989,445
Long term liabilities Provision for deferred taxes 4,919 12,739
Long term debt Amounts payable to consolidated companies 18,844 18,844
Long term liabilities [31] 522,098 582,748
545,861 601,592
Current liabilities Amounts payable to consolidated companies 127,436 90,636
Short term debt [32] 331,863 209,810
Other liabilities [33] 39,743 40,339
Accrued liabilities 20,932 19,688
519,974 360,473
Total liabilities 1,974,412 1,964,249
86
Océ .. / Notes to the Balance Sheet and the Statement of Operations
Financial fixed assets 2001 2000 › € 1,000
Affiliated companies For a list of companies affiliated to the Group in the
Netherlands and elsewhere see pages 95 and 96.
Affiliated companies are valued pro rata to the net asset
value held.
[27] Consolidated Book value at December 1, 2000/1999 895,243 729,384
companiesChanges due toEquity in income 23,011 150,028
Capital increase 38,746 27,670
Capital decrease –16,818 –2,635
Revaluation of Property, plant and equipment – –1,992
Dividends declared –134,100 –69,229
Foreign currency translations –16,093 63,313
Goodwill – –1,296
Book value at November 30 789,989 895,243
[28] Amounts receivable At December 1, 2000/1999 976,866 810,495
from consolidated Prepayments 113,165 122,774
companies Repayments –14,972 –20,348
Foreign currency translations –13,061 63,945
At November 30 1,061,998 976,866
[29] Unconsolidated Book value at December 1, 2000/1999 4,100 3,638
companiesChanges due toEquity in income 122 283
Dividends declared –329 –224
Foreign currency translations –232 403
Book value at November 30 3,661 4,100
Summary of Significant Accounting Principles
The accounting principles are the same as those
used for the consolidated financial statements.
The Statement of Operations has been drawn up in
accordance with the provisions of Article 402, Book
2, of the Dutch Civil Code.
87
Océ .. / Notes to the Balance Sheet and the Statement of Operations
2001 2000 › € 1,000
Current assets
[30] Cash and cash Cash and bank balances 27,662 6,574
equivalentsShareholders’ equity
For specifications see pages 73 and 74.
Long term debt
[31] Long term liabilities Convertible euro debentures to Company personnel 9,726 8,145
Loans 512,372 574,603
Total 522,098 582,748
The average conversion price of the convertible euro
debentures to Company personnel is € 20.31
(2000: € 22.43).
Loans principal amount average interest rate redemption amounts due after › € 1,000at November 30 (%) more than five years
Euro debenture loan 113,445 6.38 2006 –
Euro debenture loan 136,134 6.25 2007 136,134
Euro 13,613 7.20 2003 –
Euro 22,867 3.80 2003 –
Euro 9,077 6.74 2004 –
Euro 22,689 6.84 2005 –
Euro 77,143 6.35 2006 –
Euro 4,538 5.84 2013 4,538
American dollars 56,433 6.39 2005 –
American dollars 56,433 6.06 2006 –
Total 512,372 6.23 140,672
The fixed interest rates of the euro (debenture) loans
have been fully swapped into variable interest rates.
The heading ‘Loans’ also includes multi-year stand-by
credit facilities. Where these relate to loans of a short term
nature, they are accounted for as ‘Short term borrowings’
under short term debt. In 2001 these amounted to
€ 189 million (2000: nil).
Océ .. / Notes to the Balance Sheet and the Statement of Operations
88
Current liabilities 2001 2000 › € 1,000
[32] Short term debt Borrowings under bank lines of credit 12,817 15,805
Current portion of long term debt 117,890 95,294
Short term borrowings 201,156 92,400
Convertible subordinated debentures – 6,311
Total 331,863 209,810
Under ‘Short term borrowings’ loans payable on call
amounting to € 84 million are included after deduction of
a deposit in respect of such loans which was settled on the
first working day after balance sheet date.
[33] Other liabilities Dividend 39,719 40,326
Other 24 13
Total 39,743 40,339
Commitments and contingent liabilities 2001 2000 › € million
not stated in the balance sheet
Contingent liabilities Government development credits 47.8 50.1
Other commitments Bank guarantees to group companies 171.5 148.6
Guarantees to group companies 49.9 32.8
For an explanation of the financial instruments
see page 78.
89
Upon adoption of this proposed net income appropriation,
the dividend for the 2001 financial year will be: € 2 per prio-
rity share of € 50, € 0.18 (rounded) per financing preference
share of € 0.50 and € 0.58 per ordinary share of € 0.50.
The final dividend per ordinary share for the 2001 financial
year will be € 0.43, as a payment of € 0.15 per ordinary share
was made on October 19, 2001 on account of the expected
dividend. It is proposed to make the final dividend available
fully in cash. This proposed net income appropriation is in
conformity with Article 36 of the Company’s Articles of
Association.
Extract from the Articles The rules for net income appropriation as laid down in the
of Association relating to Articles of Association can – where of relevance at the
net income appropriation present time – be summarised as follows (for literal text see
Article 36 of the Articles of Association):
Where possible, the following dividends shall be distributed
in turn from the net income: first, on the protective prefer-
ence shares: a percentage of the paid-up amount equal to the
average three-month percentage, weighted ac-
cording to the number of days during which it was applicable,
increased or reduced where necessary by at most two per-
centage points; then on the financing preference shares:
6.26% of the paid-up amount including share premium,
which percentage shall be adapted on December 1, 2004 and
subsequently each time eight years thereafter; then on the
priority shares: 4% and then on the ordinary shares: 5% of
the nominal value. Subsequently, of the net income then
remaining, as much shall be reserved as may be deemed
necessary by the Executive Board, subject to approval of the
Supervisory Board. In so far as the net income has not been
set aside in the form of reserves, it shall be at the disposal of
the holders of ordinary shares.
Other information
Net income appropriation 2001 2000 › € 1,000
Preference dividend 3,551 3,551
Cash dividend:Dividend 48,785 49,529
Optional stock dividend – –8,841
48,785 40,688
Added to Retained earnings:From net income – 98,661
From Retained earnings –42,266 –
Optional stock dividend – 8,841
–42,266 107,502
Total net income 10,070 151,741
Other information
90
Authorised capital
Priority shares All priority shares are issued.
They are held by Foundation Fort Ginkel, Venlo,
the directors of which are: H.B. van Liemt
(Chairman), R.L. van Iperen and M. Ververs.
The Articles of Association grant certain rights to
the holders of priority shares, including the
following:
– they determine the number of members of the
Supervisory and Executive Boards;
– they draw up a binding nomination list for
shareholders for the appointment of Supervisory
and Executive Directors;
– alteration of the Articles of Association is possible
only if proposed by them;
– their approval is required for the issue of shares as
yet not issued.
In any one year not more than € 60 may be
distributed on all the priority shares together.
The Board of Executive Directors of Océ ..
and the directors of Foundation Fort Ginkel are
jointly of the opinion that, as regards the exercise
of the voting rights attaching to the priority
shares, Foundation Fort Ginkel has complied
with the requirements set in respect hereof in
Appendix X to the Securities Regulations of the
stock exchange Euronext Amsterdam.
Preference shares Since 1979 the Company has
been under the irrevocable obligation to issue
protective preference shares to the Lodewijk
Foundation, Venlo, on the latter’s first request.
As to the nominal value of the said issue, the
Company’s obligation has since February 1997
related to at most an amount equal to the total
nominal value of the ordinary and financing
preference shares of the Company issued at the
time of the request. The directors of the Lodewijk
Foundation are: J.J.C. Alberdingk Thijm (Chair-
man), J.M.M. Maeijer,Th. Quené, N.J. Westdijk,
H.B. van Liemt and R.L. van Iperen.
The Board of Executive Directors of Océ .. and
the directors of the Lodewijk Foundation are
jointly of the opinion that, as regards the inde-
pendence of the directors of the Lodewijk Foun-
dation, the requirements set in respect hereof in
Appendix X to the Securities Regulations of the
stock exchange Euronext Amsterdam have been
complied with. In 1996 5,000,000 financing
preference shares were placed with the Foun-
dation ‘Stichting Administratiekantoor Prefe-
rente Aandelen Océ’ in return for the issue to a
number of institutional investors of registered
depositary receipts with limited cancellability.
As a result of the share split the number of
financing preference shares currently placed
amounts to 20,000,000. The directors of the
Foundation ‘Stichting Administratiekantoor
Preferente Aandelen Océ’ are: H. de Ruiter
(Chairman), S. Bergsma, J.M. Boll, L. Traas and
D.M.N. van Wensveen.
Subsequent events
In the beginning of December 2001 the
Professional Imaging Division of Gretag Imaging
Group Inc. was acquired.
It is the intention that the lease activities will be
outsourced to third parties. To this effect, an
agreement was signed with Telia Finans for
the Scandinavian market in December 2001.
In January 2002, a letter of intent has been effect-
uated with De Lage Landen International ..
relating to cooperation in the form of a joint
venture in a number of important European
countries.
Signatures to the financial statements and other
information set out on pages 57 to 90:
January 29, 2002
The Supervisory Directors:H.B. van Liemt
L.J.M. Berndsen
P. Bouw
J.L. Brentjens
J.V.H. Pennings
M. Ververs
F.J. de Wit
The Executive Directors:R.L. van Iperen
J. van den Belt
J.F. Dix
G.B. Pelizzari
Auditors’ report
Introduction We have audited the financial state-
ments as included in the annual report for the year
ended November 30, 2001 of Océ .., Venlo.
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 audit.
Scope We conducted our audit in accordance with
auditing standards generally accepted in the
Netherlands. Those standards require that we plan
and perform the audit to obtain reasonable assur-
ance 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 audit provides a reasonable basis for our
opinion.
Opinion In our opinion, the financial statements
give a true and fair view of the financial position of
the company as of November 30, 2001 and of the
result for the year then ended in accordance with
accounting principles generally accepted in the
Netherlands and comply with the financial report-
ing requirements included in Part 9, Book 2 of the
Dutch Civil Code.
Eindhoven, January 29, 2002
PricewaterhouseCoopers ..
91
Other information
Board of Supervisory Directors as at January 29, 2002
H.B. van Liemt (1933), Voerendaal
Post(s) held: former Chairman of the Board of Direc-
tors of .. Nationality: Dutch. Appointed in
1993. Current term of office until 2004, but he re-
tires as per the closing of the Annual General
Meeting of Shareholders in 2002. Maximum periodof office until 2004 (age limit). Supervisory Director-ships: Chairman of the Supervisory Board of Gamma
Holding .. and Sara Lee/ .., vice-chairman
of the Supervisory Board of Bank ..
and Stienstra Holding .. Other posts: member of
the Board of Directors of Sara Lee Corp., Chicago,
Chairman of Mijnraad (Mines Council) and board
member of several foundations.
M. Ververs (1933), Hattem
Post(s) held: former Chairman of the Board of Direc-
tors of Wolters-Kluwer .. Nationality: Dutch.
Appointed in 1995. Current term of office until 2003.
Maximum period of office until 2003 (age limit).
Supervisory Directorships: Chairman of the Super-
visory Board of Getronics .., vice-chairman of
the Supervisory Board of Groep .. and
member of the Supervisory Board of .. and
Laurus .. Other posts: Chairman of the Board of
Trustees of Isala Clinics Zwolle and member of the
Board of External Advisers, Ernst & Young.
L.J.M. Berndsen (1942), Antwerp ()
Post(s) held: former Chairman of the Board of Direc-
tors of Koninklijke Nedlloyd .. and co-Chairman
of P&O Nedlloyd Container Line Ltd. Nationality:Dutch. Appointed in 1996. Current term of officeuntil 2004. Maximum period of office until 2008
(12-year period). Supervisory Directorships: member
of the Supervisory Board of Holdings ..,
Martinair Holland .., Corus Nederland .. and
Delta Lloyd .. Other posts: member of the Advi-
sory Board of Bank Holding ..
P. Bouw (1941), Amsterdam
Post(s) held: former Chairman of Koninklijke Lucht-
vaart Maatschappij .. (). Nationality: Dutch.
Appointed in 1998. Current term of office until 2002.
Maximum period of office until 2010 (12-year
period). Supervisory Directorships: Chairman of the
Supervisory Board of .. and member of the
Supervisory Board of Koninklijke Vopak ..,
Getronics .., .., Crossair (Switzerland)
and De Nederlandse Bank .. Other posts: part-
time professor in Business Administration Twente
University, member of the Board of Trustees,
Amsterdam Free Reformed University, Chairman
of the Banking Council and Chairman of the
Board of Trustees of Sectie Betaald Voetbal .
J.L. Brentjens (1940), Bloemendaal
Post(s) held: former Chairman of the Board of Direc-
tors of .. Nationality: Dutch. Appointed in
2001. Current term of office until 2005. Maximumperiod of office until 2011 (age limit). SupervisoryDirectorships: Chairman of the Supervisory Board
of Heijmans .. and ArboNed .., vice-chairman
of the Supervisory Board of Roto Smeets De Boer
.., and also member of the Supervisory Board of
.., Fortis .. and Holdingmaat-
schappij P. Bakker Hillegom .. Other posts: vice-
chairman of Van Leer Group Foundation, Chairman
of the Board of Foundation Katholieke Universiteit
Nijmegen and board member of several foun-
dations.
J.V.H. Pennings (1934), Maaseik ()
Post(s) held: former Chairman of the Board of
Executive Directors of Océ .. Nationality: Dutch.
Appointed in 1998. Current term of office until 2002.
Maximum period of office until 2005 (age limit).
Supervisory Directorships: Chairman of the Super-
visory Board of Koninklijke Grolsch .., Konink-
lijke Ahrend .., Essent .. and .. Industrie-
bank Liof, vice-chairman of the Supervisory Board
of Wolters Kluwer .. and member of the Super-
visory Board of Heijmans .. and Berenschot
Beheer. Other posts: board member of several
foundations.
F.J. de Wit (1939), Amsterdam
Post(s) held: former Chairman of the Board of Direc-
tors of .. .. Nationality: Dutch. Appointedin 1997. Current term of office until 2005. Maximumperiod of office until 2009 (age limit and 12-year
period). Supervisory Directorships: Chairman of the
Supervisory Board of PontEecen .. and member
of the Supervisory Board of .. Otherposts: member of the Advisory Board of Deloitte &
Touche and Keyser & Mackay (International) ..,
honorary consul general of Finland and board
member of several foundations.
92
Board of Executive Directors as at January 29, 2002
R.L. van Iperen (1953), Venlo
Post: Chairman Board of Executive Directors.
Nationality: Dutch. Appointed as member of the
Board of Executive Directors in May 1995 and as
Chairman of the Board of Executive Directors in
September 1999. Functional responsibilities:Strategy, Corporate Personnel and Organisation,
Research & Development, Secretariat of the
Company and Legal Affairs, Corporate Commu-
nications. Geographical: The Netherlands, United
States (Chairman), Germany, Belgium and Japan.
J. van den Belt (1946), Venlo
Post: member Board of Executive Directors.
Nationality: Dutch. Appointed March 2001.
Functional responsibilities: Finance and Admini-
stration, Tax, Internal Audit, Corporate Infor-
mation Management, Investor Relations and lease
activities. Geographical: France, Spain and
Portugal.
J.F. Dix (1946), Schoten ()
Post: member Board of Executive Directors.
Nationality: Dutch. Appointed May 1998.
Functional responsibilities: Direct Export,
Emerging Markets, Imaging Supplies, Facility
Services, Marketing Communications.
Geographical: United Kingdom, Scandinavia,
Switzerland, Italy, Austria, Australia, Eastern
Europe, Far East and Brazil.
G.B. Pelizzari (1942), Chicago ()
Post: member Board of Executive Directors.
Nationality: Italian. Appointed May 1998.
Functional responsibilities: United States (),
Canada and Mexico.
The Strategic Business Unit Directors report to
the Board of Executive Directors as a whole.
93
Directors Central Services
94
Strategic Business Units
Wide Format Printing Systems M.J.A. Frequin
Document Printing Systems J.F. Dix
Production Printing Systems J.F. Dix
Business Groups
Imaging Supplies A.P. Langendoen*
Facility Services M.C. Kingmans*
Corporate Staff
Secretariat of the Company,Legal Affairs H.J. Huiberts
Corporate Personnel and Organisation P.H.G.M. Creemers
Finance and Administration C.F. Lindenhovius
Central Operating Company Venlo
Venlo Executive Committee P.H.G.M. Creemers
N.J. Koole
W.H.M. Orbons
Manufacturing and Logistics N.J. Koole
Research & Development W.H.M. Orbons
Personnel, Organisation and Services P.H.G.M. Creemers
Central Operating Company Poing (Germany)
Chief Executive P. Feldweg
Research & Development P. Feldweg
January 2002
* Assistant Director.
Europe
Belgium Océ-Belgium ../.. J. van Boerdonk Brussels (2)7294811
Océ-Interservices ../.. J. van Boerdonk Brussels (2)7294992
Océ Software Laboratories Namur .. M. Mühe Namur (81)559611
Denmark Océ-Danmark a/s H. Risør Copenhagen (43)297000
Germany Océ Holding Deutschland G.m.b.H. A.A.J. van Driel and Mülheim/Ruhr (208)48450
P. Feldweg
Océ-Deutschland G.m.b.H. A.A.J. van Driel and Mülheim/Ruhr (208)48450
S. Landesberger
Océ Printing Systems G.m.b.H. P. Feldweg Poing (8121)724031
Océ Document Technologies G.m.b.H. M. Mertgen Konstanz (75)31874010
Finland Océ-Finland Oy J.P. Koskenmies Helsinki (9)6859110
France Océ-France .. M. Gianfermi Noisy-le-Grand (1)45925000
Océ Print Logic Technologies .. R. Balmès Créteil (1)48988000
Espace Graphic .. J.G. Higel Saint-Ouen (1)49212345
Hungary Océ-Hungária Kft. G. Németh Budapest (1)2361040
Ireland Océ-Ireland Ltd. C. O’Boyle Dublin (1)4039100
Italy Océ-Italia S.p.A. G. Seno Milan (02)927261
Netherlands Océ-Technologies .. P.H.G.M. Creemers Venlo (77)3592222
Océ-Nederland .. J.J. Kwaak ’s-Hertogenbosch (73)6815815
Arkwright Europe .. J.R. Marciano Venlo (77)3209020
Océ Real Business Solutions .. (50%) J.A.M. Hageman Venlo (77)3592222
Norway Océ-Norge .. F.O. Nilsen Oslo (2)2027000
Austria Océ-Österreich Ges.m.b.H. G. Schennet Vienna (1)86336
Poland Océ-Poland Limited, Sp. Z o.o. M. Kozlowski Warsaw (2)28683079
Portugal Océ-Lima Mayer .. F. Calvache Lisbon (21)4125700
Spain Océ-España .. I. Esteve Barcelona (93)4844800
Czech Republic Océ-Czech republic s.r.o. I. Konecny Prague (2)44010111
United Kingdom Océ () Limited M.J. Cornish Loughton (870)6005544
Practical Print Solutions Ltd. S. Neal Reigate (1737)237000
Sweden Océ Svenska M. Kullerstrand Stockholm (8)7034000
Switzerland Océ (Schweiz) .. J.Th.M. van der Mars Glattbrugg (1)8291111
North America
United States Océ- Holding Inc. G.B. Pelizzari Chicago, (773)4443762
Océ- Inc. G.B. Pelizzari Chicago, (773)7148500
Océ Printing Systems , Inc. T. Long Boca Raton, (561)9973100
Arkwright Inc. J.R. Marciano Fiskeville, (401)8211000
Archer Management Services, Inc. M.D. Weiner New York, (212)5022100
Océ Groupware Technology, Inc. R. Kozel Cleveland, (216)6879970
Océ Display Graphics Systems, Inc. R. Kumar San Jose, (408)2324000
Canada Océ-Canada Inc. S. Goodall Toronto (416)2245600
Mexico Océ-Mexico .. de .. J. Colin Mexico City (52)5550898710
Principal companies and their chief executives*
95
January 2002
* Where holdings are less than 95% of total equity, the percentage of capital held is stated.
A list of affiliated companies is available for public inspection at the Commercial Registry, Venlo,
in conformity with the provisions of Article 379, Book 2 of the Dutch Civil Code.
´
Principal companies and their chief executives
Asia / Pacific
Australia Océ-Australia Ltd. P.W.M. Thomassen Scoresby (3)97303333
China Océ Office Equipment (Beijing) Co.,Ltd. N.W. Kooij Beijing (10)65281200
Océ Office Equipment (Shanghai) Co.,Ltd. N.W. Kooij Shanghai (21)62729698
Hong Kong Océ (Hong Kong China) Ltd. N.W. Kooij Hong Kong 25776064
Japan Océ-Japan Corporation (85%) K. Mukozaka Tokyo (3)54026112
Malaysia Océ Malaysia Sdn. Bhd. M. Sak Petaling Jaya (603)79668000
Singapore Océ (Singapore) Pte. Ltd. C. Wilson Singapore (8)462381
Taiwan Océ (Taiwan) Ltd. N.W. Kooij Taipei (2)27469497
Thailand Océ (Thailand) Ltd. M.A.M.E. van Mierlo Bangkok (2)2607133
Other countries
Brazil Océ-Brasil Comércio e Indústria Ltda. S. Notermans São Paulo (11)30535300
South Africa Océ Printing Systems M. Broude Johannesburg (11)2586000
(South Africa) (Pty.) Ltd.
Direct Export
Netherlands Océ Direct Export J.W. Verschaeren Venlo (77)3592222
Lease companies
Australia Océ-Australia Finance Pty. Ltd. P.W.M. Thomassen Scoresby (3)97303333
Germany Océ-Deutschland Leasing G.m.b.H. A.A.J. van Driel Mülheim/Ruhr (208)48450
France Océ-France Financement .. M. Gianfermi Saint-Cloud (1)45925055
Spain Océ-Renting .. E. de Sus Barcelona (93)4844800
United Kingdom Océ () Finance Ltd. N. Anderson Loughton (870)6005544
United States Océ-Credit Corporation S. Schulein Boca Raton, (1)5619973100
Minority holdings
Cyprus Heliozid Océ-Reprographic (Cyprus) Ltd. 25%
Germany Interface .. 11%
Singapore Datapost Pte. Ltd. 30%
96
Supplementary information for shareholders
Investor Relations () policy The aim of Océ’s
policy is to keep financial stakeholders informed as
effectively as possible about developments within
the company and thus provide them with a clear
picture on which to base their investment decisions
with regard to Océ. Not only information about
the financial results and prospects is of key impor-
tance, but also the provision of information in the
broadest sense about strategic choices and corpo-
rate objectives and about social aspects such as
sustainable business practices.
The principal document in which information is
provided to shareholders is the annual report.
In addition, Océ regularly organises roadshows
and other informative meetings for institutional
investors, banks and analysts.
When the annual figures are published Océ holds
a press conference. The publication of the annual
and half-yearly figures are followed by a number of
meetings for analysts. The presentations given on
those occasions are then immediately published
on our website (http://www.oce.com). After the
announcement of the results for the first and the
third quarter Océ holds a conference call for
analysts.
Efforts are being made to find further possibilities
of reaching private investors even more effectively
by expanding and improving the clarity and acces-
sibility of the information published via our Océ
website.Via the Investor Information link on that
site you can click through to other relevant items
of information, such as quarterly and annual
figures, press releases and background information
and references to other sources. The agenda for
the Annual General Meeting of Shareholders can
also be found there.
That agenda is also issued in the form of an insert
in the printed version of this annual report.
In agenda item 5 in which authorisation is re-
quested, inter alia, for the issue of shares and the
restriction or preclusion of the pre-emptive right
an explanation is given of the objectives and
restrictions that the Board of Executive Directors
and the Supervisory Board will comply with, if
they make use of such authorisation.
Investors and/or their advisers are welcome to
submit any questions direct to our Investor
Relations department by telephone (+31) (0)77
3592240 or via e-mail (mve@oce.nl), if desired by
mentioning a telephone number and the times
when they can be called back.
Dividend policy Océ seeks to distribute around
one-third of the income attributable to holders of
ordinary shares to this category of shareholders.
This policy is based on the conviction that Océ
will continue to grow.
The resultant retention of two-thirds of income
then ensures that this growth can be achieved whilst
simultaneously maintaining the desired balance
sheet ratios.
Until 2001 it was possible to elect to receive divi-
dend in the form of new shares charged to the tax-
free share premium reserve. In order to prevent
dilution of outstanding shares and in view of the
fact that – with effect from 2001 – the tax benefit
has been discontinued for a great many Dutch
shareholders, it has been decided that dividend
will henceforth be paid out only in cash.
97
Distribution of ordinary shares as % 2001 2000
at end of financial year (indication basedon information provided by banks) private institutional total private institutional total
Netherlands 33 18 51 37 22 59
United Kingdom – 18 18 1 11 12
Belgium / Luxemburg 1 10 11 2 11 13
United States 1 12 13 1 7 8
Other 1 6 7 1 7 8
Total 36 64 100 42 58 100
Supplementary information for shareholders
Quarterly results (net income*) 2001 2000
› € million % increase on › € million % increase on
previous year previous year
First quarter 28.1 –13 32.2 14
Second quarter 25.1 –37 40.1 14
Third quarter 21.2 –29 29.9 23
Fourth quarter 30.7 -38 49.5 12
Year 105.1 -31 151.7 15
Quarterly results (basic earnings* per 2001 2000
ordinary share, calculated on the basis ofthe weighted average number of shares in euro % increase on in euro % increase on
outstanding) previous year previous year
First quarter 0.32 –16 0.38 14
Second quarter 0.28 –40 0.47 13
Third quarter 0.24 –29 0.34 22
Fourth quarter 0.35 –38 0.57 10
Year 1.19 –32 1.76 14
98
* Before exceptional items.
Supplementary information for shareholders
Substantial Shareholdings Notification Act
On the basis of the Substantial Shareholdings
Notification Act () which was introduced in
the Netherlands in 1992 and which requires,
inter alia, that shareholders must notify any
holdings of more than 5% of the ordinary out-
standing shares, the following shareholder is
known: Internationale Nederlanden Groep
(6.33%), notification February 28, 1992.
Depositary receipts with limited cancellability
for financing preference shares are held by: Rabo-
bank Nederland (6.25%), notification May 31,
1996; Fortis .. (5.68%), notification May 10,
1999 and - Capital Holdings ..
(5.81%), notification June 14, 1999.
Important (publication) dates
(subject to modification)
March 6, 2002 meeting of shareholders
April 4, 2002 1st quarter results 2002
July 3, 2002 2nd quarter / 1st half year results 2002 (after close
of trading on Euronext Amsterdam)
October 4, 2002 3rd quarter / nine months results 2002
January 13, 2003 provisional results for 2002
February 2003 publication of 2002 annual report
Stock exchange listings Ordinary shares in Océ
are listed on the stock exchanges in Amsterdam,
Düsseldorf, Frankfurt/Main and on the electronic
stock exchange () in Switzerland.
They are traded in the United States as American
Depositary Receipts (s) via .
Options to Océ shares are traded on the
Options Exchange Amsterdam.
99
250
200
150
100
50
0 97
30.11
20.42
98
40.93
18.47
99
35.00
14.00
00
18.90
11.55
01
18.90
6.15
Share price development
index December 1, 1996 = 100
Océ
Euronext Amsterdam
year’s highest
year’s lowest
Océ 1992-2001
Consolidated Statement of Operations 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992
Total revenues 3,234 3,224 2,838 2,753 2,469 1,894 1,330 1,257 1,192 1,242
Operating income 225 282 248 245 200 145 101 84 75 90
Net income 10 152 77 129 108 77 49 41 28 39
Key figuresTotal revenues
Increase/decrease in (%) – 14 3 12 30 42 6 6 –4 4
Expenditure on research and development 203 199 167 155 139 111 84 84 84 86
As % of total revenues 6.3 6.2 5.9 5.6 5.6 5.9 6.3 6.7 7.1 6.9
Operating income
As % of total revenues 6.9 8.8 8.7 8.9 8.1 7.6 7.6 6.7 6.3 7.3
As % of average balance sheet total 7.1 9.1 8.8 9.5 8.6 7.9 6.9 6.2 5.7 7.0
Net income
As % of total revenues *3.2 4.7 *4.6 4.7 4.4 4.1 3.7 3.3 2.4 3.2
As % of average shareholders’ equity *11.1 16.8 *17.1 18.1 16.5 14.2 10.3 8.9 6.3 9.1
Net income retained *53 99 *87 84 70 48 30 25 12 24
As % of net income *51.9 66.6 *67.6 67.2 67.3 64.1 62.3 59.3 42.1 59.0
Payroll expenses 1,310 1,242 1,122 1,034 869 689 481 458 455 463
As % of total revenues 40.5 38.5 39.5 37.6 35.2 36.4 36.2 36.5 38.2 37.3
Number of employees 22,472 22,253 21,757 20,978 17,754 16,495 12,633 11,718 11,666 12,262
Per € 0.50 ordinary share (in euro) Basic earnings** *1.19 1.76 *1.54 1.53 1.30 1.03 0.75 0.64 0.44 0.63
Diluted earnings *1.18 1.74 *1.53 1.50 1.26 0.96 0.70 0.62 0.44 0.63
Cash flow** *3.47 4.06 *3.80 3.62 3.26 2.81 2.45 2.35 2.24 2.75
Shareholders’ equity 10.13 10.91 9.14 8.09 7.96 6.92 7.34 7.22 7.07 6.91
Dividend 0.58 0.58 0.50 0.50 0.42 0.34 0.29 0.25 0.25 0.25
Average number of ordinary shares outstanding
(› thousand) 85,241 84,401 83,191 81,955 79,913 73,136 65,224 64,680 63,696 62,720
Increase from dilution (› thousand) 714 1,131 1,282 2,129 2,997 6,452 7,740 3,292 1,840 420
Share price (in euro)
Year’s highest 18.90 18.90 35.00 40.93 30.11 22.44 11.23 10.16 6.85 9.08
Year’s lowest 6.15 11.55 14.00 18.47 20.42 10.85 8.45 6.78 4.38 4.11
Year end 10.20 17.75 17.30 30.49 25.70 21.33 11.23 8.73 6.85 4.40
100
amounts › € million
* Before exceptional items.
** Basic earnings after exceptional items amount to € 0.08 (2000: € 1.76)
and cash flow after exceptional items amounts to € 2.35 (2000: € 4.06).
Océ 1992-2001
Consolidated Balance Sheet 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992
AssetsIntangible fixed assets 44 – – – – – – – – –
Tangible fixed assets 637 679 707 687 672 599 420 408 413 430
Financial fixed assets 751 799 686 587 568 402 343 299 264 221
Fixed assets 1,432 1,478 1,393 1,274 1,240 1,001 763 707 677 651
Current assets 1,696 1,738 1,575 1,361 1,275 1,125 778 684 647 653
Total 3,128 3,216 2,968 2,635 2,515 2,126 1,541 1,391 1,324 1,304
LiabilitiesGroup equity 949 1,031 860 766 740 646 480 471 453 440
Long term liabilities (provisions) 428 320 316 220 251 210 134 129 132 131
Long term debts 754 853 884 860 749 546 471 284 309 312
Current liabilities 997 1,012 908 789 775 724 456 507 430 421
Total 3,128 3,216 2,968 2,635 2,515 2,126 1,541 1,391 1,324 1,304
Key figuresProperty, plant and equipment 458 445 450 446 453 396 255 253 254 264
Net expenditure 106 65 81 87 87 74 53 50 38 41
Depreciation 91 86 90 83 72 59 45 48 50 49
Rental equipment 179 233 257 241 219 203 165 159 166 176
Net expenditure 50 80 107 113 79 97 76 57 55 66
Depreciation 103 108 98 88 85 72 65 63 64 84
Financial lease receivables (including short term
financial leases) 1,153 1,175 1,026 908 806 565 453 416 360 291
As % of balance sheet total 37 37 35 34 32 26 29 30 27 22
Inventories 365 442 395 366 363 359 257 202 196 207
As % of total revenues 11 14 14 13 15 18 19 16 16 17
Trade accounts receivable 649 696 635 527 530 447 299 256 241 255
As % of total revenues 20 22 22 19 21 22 22 20 20 21
Ratio of current assets to current liabilities 1.7 1.7 1.7 1.7 1.6 1.6 1.7 1.3 1.5 1.6
Group equity as % of balance sheet total 30 32 29 29 29 30 31 34 34 34
101
List of terms and abbreviations
Analogue In relation to copiers: producing a copy with the aid of a photo-
lens; the opposite of digital (see below).
Asset management Organisation and management of the assets within a
company.
Asset recovery activities The removal of machine parts and complete com-
ponents from machines that have been returned from the market following
their first life cycle and then making such parts and components suitable
for re-use.
Best practices Used within Océ to mean: the best results that have been
achieved as the result of a specific strategy and that are suitable for more
widespread application within the organisation.
Computer Aided Design: designing with the aid of the computer.
Captive lease companies Lease companies which are owned by or are linked
via fixed contracts with a bigger company, often a financial institution.
Circuit board Board (usually made of plastic) which carries conductive
paths for the switching of electronic components.
Consumables Used within Océ to mean: supplies and components that are
disposed of after one-time use.
Cost of ownership The ongoing fixed and variable costs relating to a
product after it has passed into customer ownership.
Customer intimacy Maintaining such a close and constant relationship with
the customer that it is possible, without detailed consultation, to respond
immediately to that customer’s changing requirements and new needs.
Cutsheet printing Printing operation in which separate sheets of paper are
fed into the machine (as opposed to fanfold and roll feed).
Diazo Abbreviation of the word diazonium, a chemical compound which is
coated onto paper so that images can then be developed on the paper after
exposure to light; a process also known as dyeline printing.
Digital In relation to printers and copiers: producing a print or copy by
means of laser or exposure, in a machine which can communicate via a
computer network; used here as the opposite to analogue (see above).
Digitisation The conversion of information into digital, computer-
readable codes.
Direct mail businesses Businesses which produce printed matter (e.g.
advertising folders) in various print-runs and then mail these to selected
customers.
Display Graphics Large format colour prints such as posters, banners and
billboards.
Document management All activities involved in the preparation,
printing/copying and finishing of documents.
Document Printing Systems Used by Océ to refer to the market for
printing and copying in office environments.
Document Production Printing Used within Océ to mean: the market for
printing and copying in high volumes.
dpi resolution Dots per inch resolution: number of dots per inch; indicates
the degree of detail shown on a print.
Earnings Before Interest, Tax, Depreciation and Amortisation.
Electronic banking The processing of banking transactions via the
internet.
Electronic Data Processing The large-scale computerised processing of
data and information ().
Electronic Production Printing Production (printing) and processing of
documents in high volumes.
Facility Services Where the supplier of certain products handles the work
involved in the use of those products; specifically in those cases where Océ
performs printing and activities on a customer’s premises at that cus-
tomer’s request. In the the term ‘outsourcing’ is used to describe
Facility Services.
Finisher Hardware that handles finishing work for printers and copiers,
such as binding, folding, stapling.
Floor graphics Self-adhesive wide format Display Graphics material in
colour that is applied to floors.
Flow production Used within Océ to mean: production of machines on
assembly lines.
Full colour Image reproduced entirely in colour.
Human Resources Policy Policy developed for the recruitment and further
training of personnel to fulfil posts within a business.
Information and communication technology.
Imaging Supplies Materials which are used (mainly as information
carriers) in printing, copying and plotting, e.g. paper, films, labels etc.
Inkjet technology Specific type of printing technology in which fine
droplets of ink are used to build up the printed image.
Input management All activities involved in preparing for high volume
printing.
Job printer A business that specialises in making prints and copies for
third parties.
Network Printing Solutions Using printers and servers to provide
solutions for the reproduction of documents in networks (chiefly in office
environments).
Optical Character Recognition: technology that enables computers to
recognise character images on paper and then process them digitally.
One-stop solution Used within Océ to mean: The supplier provides the
customer a complete range of hardware, software and services.
Organic Photoconductor: light-sensitive and durable photoconductor
(drum) for transferring the image onto the carrier material.
Output management All activities involved in the finishing of prints
produced in high volumes.
Outsourcing Contracting out the total package of copying, printing and
finishing activities to the supplier (in this case Océ). In Europe these
activities are known as Facility Services.
102
List of terms and abrevaiations
Pay-out/pay-out ratio The proportion of net income that is distributed in
the form of dividend.
Plain paper Ordinary (untreated) paper.
Plotter supplies Materials that are used in the application of Computer
Aided Design technology.
Prints per minute: used to denote the speed of a machine's output.
Printing The (repeated) production by a printer of a document using data
stored in a digital memory.
Print procurement The performance of print assignments on behalf of
third parties, both on electronic printers and on conventional printing
presses.
Printing & Publishing Printing and handling the finishing work involved
in complete publications in relatively small print-runs, with the aid of
electronic equipment.
Print resolution Indicates the quality of a print. Resolution is expressed in
dots per inch (dpi).
Process drum Cylinder on which the image is temporarily formed before
it is transferred to the copying material.
Production Printing Systems Used by Océ to refer to the market for high
speed printing systems.
Proxy solicitation The granting of proxy to the company by the share-
holder, enabling the company to make applications on behalf of that
shareholder.
Proxy voting The granting of proxy by the shareholder to the company,
enabling the company to vote on behalf of that shareholder.
Remanufacturing Replacing certain machine components and making the
required adjustments to settings so that the machine will operate as new
when placed in the market again.
Retrieval Finding and accessing information that has been stored in a
database.
Strategic Business Unit: the Océ business structure for each
application area.
Scanning functionality The digital reading of an image, followed by its
storage in digital form in a memory device.
Self-assessment Critical evaluation by the employee of his/her own
performances.
Server System that organises and controls the 'traffic' between computers
and the printer(s) connected to them.
Stand-alone A printer or copier which is not coupled up to a network.
State-of-the-art document management Document management based
on the very latest ideas and developments.
Swap Interest rate hedging instrument used to change the type of interest
rate (fixed or variable) attached to a loan. Also used as a verb: to swap.
Tabloid format Small format newspaper (about 30 cm by 40 cm) usually
characterised by its concise style and frequent use of photographs.
Technical Document Systems Used within Océ to mean: the printing and
copying of wide format drawings in technical environments, such as
design engineering offices, factories and architectural firms.
Telecom provider A company which provides the computer user with
possibilities for communicating with others electronically (via networks).
Time-to-market Bringing a product to market at the right moment, at
exactly the time when the market needs it.
Trading desk Used within Océ to mean: central point which decides on a
new destination for surplus components and machines.
Upgrading Overhauling the machine so that it incorporates the latest
developments.
American accounting principles (United States Generally
Accepted Accounting Principles).
Volume segment Internationally accepted industrial standard for
classifying the printing and copying markets into segments based on the
number of prints or copies produced per machine per month.
Wide Format Printing Systems Used by Océ to refer to the market for
machines and supplies for printing, copying and plotting of large format
documents.
Workflow The number of current projects and the related activities within
an organisation.
103
Design Baer Cornet / Marcel Beemer, Venlo
Illustrations Geert Setola, Oirsbeek
Photography Egon Notermans (Zebra Fotostudio’s), Venlo
Text consultants Jonkergouw & Van den Akker
Financial Communication Consultants, Amsterdam
Translation Alan Hemingway, Rijsoord
Printing Drukkerij Lecturis .., Eindhoven
© 2002 Océ ..
This is an English translation of the official
Annual Report which was published in the
Dutch language.
In the event of textual inconsistencies between
the English and the Dutch version the latter shall
prevail.
Océ, Océ Doc Works, Océ Com Works, Océ
Find Logic, Océ Intra Logic, Océ Scan Logic,
Océ Engineering Exec, Océ Office Exec,
CustomTone, Pagestream, Demandstream and
Océ Audit are registered trade marks of
Océ-Technologies ..
RecoStar is a registered trade mark of Océ
Document Technologies G.m.b.H.
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