Global
FAQ for FY2025 Q2 Financial Announcement
Last Update: November 28, 2025
| Are there any changes to your Corporate Value Improvement Project savings projection of ¥52.0 billion (¥20.6 billion in fiscal 2024, with ¥31.4 billion targeted for fiscal 2025)? You originally targeted savings of ¥60.0 billion over two years, so the shortfall would be ¥8.0 billion. Can we look forward to you filling that gap next fiscal year? |
| As we explained during our fiscal 2024 results briefing, we have retained our savings projection of ¥52.0 billion under the Corporate Value Improvement Project. We are continuing with our initiatives, including business selection and concentration, for the ¥8.0 billion balance. These measures could generate savings next fiscal year. |
| On November 5, you announced that you would transfer your Managed IT Services business in the United States. When will you post a gain from that transfer and to what segment will you allocate it? |
| RICOH Digital Services will book the gain in the third quarter of fiscal 2025. |
| In Japan, PC replacement demand seems to have peaked in the first half of fiscal 2025. Are you worried that IT Infrastructure, IT Services, and Application Services growth might slow in the second half? |
| While demand indeed seems to have peaked in the first half, not all companies have completed replacements. We thus anticipate some demand to continue from the third quarter. Still, PC replacement demand started expanding in the second half of fiscal 2024, so IT infrastructure sales growth in particular may be more moderate in the second half. That said, we continue 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. |
| European Office Services revenue dropped 4% year-on-year in the second quarter after excluding forex impacts. This followed a sluggish first-quarter performance. Are there any signs of improvement in the second half? |
| Business conditions in Europe were basically the same in the first and second quarters. From the second half of last fiscal year, softer economic conditions and concerns about the outlook, including the U.S. tariff policy impact, prompted many customers to postpone IT hardware investments, particularly in Germany and France. While IT services and application services revenues have grown year-on-year, falling IT infrastructure sales are weighing on those businesses. So, we do not expect conditions to deteriorate much more, although it remains unclear when demand will recover. At the same time, we have performed solidly in Italy, Spain, and some other markets, so the operating climate is not severe across all of Europe. We aim to restore Office Services revenue in Europe by having acquired companies and existing Group companies, and also among those acquired entities, collaborate more to secure deals more swiftly. |
| During your second-quarter results briefing, you said that your first-half operating profit exceeded your internal target by around ¥10.0 billion. Why did you maintain your full-year operating profit forecast at ¥80.0 billion instead of lifting it? |
| In the second quarter, RICOH Digital Services' European customers continued to postpone MFP and IT hardware investments because of U.S. tariff policies and economic outlook concerns. At RICOH Graphic Communications, customers in the pivotal U.S. commercial printing market have also begun to hold back spending on hardware. We factored in these operating climate changes and decided to retain our initial full-year operating profit forecast of ¥80.0 billion. We prioritize achieving that target. |
| RICOH Graphic Communications' commercial printing hardware sales fell 7% in the first half after excluding the forex impact. Given that the U.S. tariff situation is stabilizing, might commercial printing hardware demand recover in and beyond the second half? |
| In the United States, our principal commercial printing market, some printing companies and other customers have refrained from investing in hardware because of concerns about their printing demand decreasing for advertising and promotional materials owing to tariff policies and related factors. Still, first-half commercial printing non-hardware sales increased 1% year-on-year after factoring out forex effects. We do not see clear signs of an underlying print demand downturn. Customer hardware investment appetites could recover if non-hardware sales growth continues and their concerns about declining print demand ease. By the same token, commercial printing deal lead times are generally long. So, even if investment appetites recover, a surge in commercial printing hardware sales in the second half is unlikely. |
| Why did you lift RICOH Digital Products' full-year operating profit forecast from ¥15.5 billion, to ¥21.5 billion? |
| Its first-half performance exceeded our internal target. We reflected that upside in our full-year projection. Tighter cost controls contributed to this increase. Because some expenses may shift into and beyond the third quarter, our revised forecast did not reflect all of the upside. |
| Why did you lower your full-year Eliminations and Corporate operating loss forecast from ¥15.0 billion, to ¥4.5 billion? |
| This was mainly because we reflected a total of ¥18.0 billion in costs in relevant segments instead of in Eliminations and Corporate. That total comprised ¥13.0 billion in tariff-related impacts and ¥5.0 billion in impairment charges for European Office Services enterprise systems integration, both of which we originally included in our Eliminations and Corporate projection. That said, we reflected risks relating to tariff impacts and other business climate changes. We thus limited the upward revision to ¥10.5 billion. |
| When do you intend to announce your next mid-term management plan? |
| We plan to announce it around spring 2026. |