海角社区

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FAQ for FY2025 Q1 Financial Announcement

Last Update: September 1, 2025

You posted revenue gains of 22% year on year in IT Infrastructure, 9% in IT Services, and 20% in Application Services. What was the prime driver of your strong growth in Office Services in Japan?
IT Infrastructure sales benefited from PC replacement demand rising ahead of the end of Windows 10 support. During replacements, we also offered IT Services and Application Services, fueling year-on-year growth. IT Services enjoyed robust demand for security and workstyle reforms. In Application Services, demand was solid for storage and other information solutions.
Will IT Infrastructure, IT Services, and Application Services demand growth slow once PC replacement demand runs its course in Japan?
PC replacement demand should peak in the first half of fiscal 2025. Not all corporate replacements will end by then, however, so demand should extend into and beyond the third quarter. Replacement demand surged in the second half of fiscal 2024, so IT Infrastructure growth in the second half of fiscal 2025 may be more modest. That said, 海角社区continues to roll out Office Services initiatives matching the Japanese market. After replacement demand peaks, we will introduce packages incorporating AI solutions and other new offerings. Small and medium-sized companies still face pressures to adopt digital business processes, so IT investments should continue. We accordingly anticipate further IT Services and Application Services growth.
Why did your European Office Services revenues decline 5.7% year on year after factoring out the foreign exchange impact?
The German and French economies weakened from late fiscal 2024. U.S. tariff policies fueled concerns about the economic outlook in the first quarter of this term. Some customers held off on IT hardware investments, which hampered IT Services and Application Services sales.
Why did Office Printing non-hardware sales drop 5% in the first quarter?
We expect these revenues to decline 2% this fiscal year. Our first-quarter performance lagged our projection of a 4% decline for the period. While we performed as expected in Japan and the Americas, European numbers were lower than anticipated because of weaker economic conditions there. We have taken steps since last year to limit downturns, such as by expanding machine in field levels through dealer channels. These measures should bear fruit in the second half of fiscal 2025.
RICOH Digital Products posted ¥12.1 billion in operating profit in the first quarter, representing solid progress toward your initial full-year projection of ¥15.5 billion.
Can we expect earnings to significantly exceed your forecast?
Key factors behind our robust performance included increased Office Printing sales to partners, a strong showing in PFU's scanner business owing to new product demand and major deals, and cost controls. It is worth noting, however, that we may have brought forward some shipments to partners because of U.S. tariff policies. On top of that, some demand in PFU's scanner business may have shifted forward to the first quarter. Also, we will book first-quarter expense curtailments in the second or subsequent quarters because of timing differences. We thus do not expect earnings to significantly exceed our full-year forecast.
You said during your first-quarter results briefing that you would constrain MFP price hikes to limit volume downturns stemming from U.S. tariff policies. Aren't you worried this approach might reduce profitability?
Our approach remains to maintain sales activities that prioritize Office Printing profitability. We do not intend to prioritize volumes in light of U.S. tariff policies. In view of conditions in the first quarter, we will keep setting prices appropriately to balance profitability and machine in field levels.
You explained that ¥7 billion in one-time expenses you initially forecasted did not include impairment charges from integrating and reorganizing core European Office Services systems ahead of schedule during the first quarter. How much of that ¥7 billion did you book during the first quarter. When do you expect to post the balance of that?
Around 80% of that ¥7 billion relates to ETRIA. We posted only several hundred million yen of that amount in the first quarter. Depending on progress with initiatives, we expect to book the remainder during and beyond the second quarter.
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