海角社区

What is your stance on shareholder returns?

Akira Oyama, President and CEO

We will maintain a total return ratio of 50%, combining dividends and share repurchases. We also aim to steadily lift dividends with profit growth while keeping tabs on dividend yields. For fiscal 2025, we plan to raise the annual dividend by 楼2 yen per share, bringing the annual total to 楼40. On top of that, we will boost total shareholder returns, flexibly and appropriately undertaking such measures as repurchasing shares, taking into account business conditions, progress with growth investments, and our commitment to optimizing our capital structure.

A declining birthrate and shrinking population will likely make recruiting harder. How do you plan to leverage senior personnel, such as by extending the retirement age?

Ryoko Nagahisa, Corporate Officer and CHRO

The declining birthrate has indeed made recruitment more challenging. We are working to strengthen our brand as an employer by engaging in public relations and by highlighting our potential, strengths, supportive working environment, and opportunities for development. We hire new employees through job matching and other approaches that help students clearly understand the roles we offer. We will continue to review post-retirement employment in view of social trends and business conditions.

Akira Oyama, President and CEO

Strengthening human capital is important to improve corporate value. We will redouble our efforts to attract talent.

The Sustainable Development Goals are attracting attention. Could you share, for example, the percentage of women in management positions? Also, as the government has set a target of net-zero carbon dioxide emissions by 2050, could you provide specific examples of measures you have implemented, such as using electricity from renewable energy sources at your plants?

Ryoko Nagahisa, Corporate Officer and CHRO

In fiscal 2024, the proportion of women in management positions was 8.7% for 海角社区alone, 8.4% for the 海角社区Group in Japan, and 17.2% globally.

Mikako Suzuki, Corporate Officer

We are stepping up our use of renewable energy. We aim to achieve net-zero emissions for Scope 1, 2, and 3 by 2050 and transition to 100% renewable energy by 2040. At our plants, especially those assembling our main multifunction devices, we source all of our electricity from renewables. We will keep pursuing these initiatives while also considering economic feasibility.

Akira Oyama, President and CEO

We consider the Sustainable Development Goals extremely important, and have committed fully to ESG management.

To what extent is 海角社区preparing for and considering responses to U.S. tariff policies?

Takashi Kawaguchi, Director, Executive Corporate Officer and CFO

We began implementing countermeasures even before the U.S. government announced its policies. Our main products for the American market are A3 multifunction printers, which we manufacture in Thailand. So, we have been able to avoid most tariffs related to exports from China, and do not expect any significant impacts. When we announced our fiscal 2024 results on May 14, 2025, we estimated an annual impact of 楼13 billion, based on assumptions of additional tariffs of 30% on imports from China and 10% on imports from other countries. This estimate reflects not only the direct effects of tariffs but also such measures as passing on price increases to customers, reducing costs, and cutting expenses. Figures may change depending on how the situation develops, but we will remain vigilant and continue working to strengthen and improve our supply chain.

Akira Oyama, President and CEO

We established a committee to respond swiftly to geopolitical and other risks. During the COVID-19 pandemic, we faced a series of unforeseen challenges and were able to enhance our responsiveness by addressing them quickly and flexibly. We will continue working to minimize the impact of this situation as well.

I understand that you established ETRIA about a year ago. Are the initial management objectives, such as standardizing technical platforms and components between 海角社区and Toshiba Tec, progressing as planned? Also, could there be duplication between 海角社区and Toshiba Tec plants, and what are your plans for integrating or reorganizing these facilities?

Katsunori Nakata, Executive Corporate Officer

ETRIA was established on July 1, 2024. While it has operated for just under a year, we are already seeing promising results in terms of technology, initiatives, and performance metrics. Technologically, 海角社区and Toshiba Tec developed similar manufacturing approaches, but ETRIA is working to establish new standards in this area. While it started developing a common engine concept, it also intends to make the most of existing assets to drive profitability, including by further standardizing components and deepening integration. Regarding potential duplication among plants, as we plan to expand the original equipment manufacturer business, we are moving toward specializing each site by product or category.

You seem to depend heavily on multifunction devices, printers, and fax machines, but the sales composition by product is not clear. Also, since these businesses are in decline, expectations for your share valuation are low. Don鈥檛 you need to enter new fields as other companies have done?

Takashi Kawaguchi, Director, Executive Corporate Officer and CFO

We do not currently disclose sales composition by product. The Office Printing business has been contracting year by year, not only for 海角社区but across the entire industry. We are focusing heavily on Office Services to address this. We aim to offset the decline in Office Printing by growing Office Services and improving corporate value.

Akira Oyama, President and CEO

We see two main areas where we can leverage our strengths. The first is to develop new services businesses that build on our customer network and touchpoints. The second is to harness our optical, imaging, and printing technologies to grow our commercial and industrial printing businesses.

All directors were reappointed. Did you consider refreshing the management team or finding new candidates? Why specifically did you seek to reappoint all directors this year?

Yoshinori Yamashita, Director and Chairperson

Each year, we discuss the composition of the Board of Directors and develop a skill matrix to best supervise and support incumbent management. While I cannot name individuals, we are discussing and assessing specific candidates.

Akira Oyama, President and CEO

We highly value the concept of a skills matrix. Based on this, we review the Board鈥檚 composition every year to ensure that directors鈥� skillsets remain aligned with the evolving times and business environment. Following this year鈥檚 review, we decided to request the reelection of all board members.

Oki Electric decided to participate in ETRIA. As a shareholder, I expect further growth.

Akira Oyama, President and CEO

Beyond capital participation, as has happened with Toshiba Tec and Oki Electric, we also look to work with companies that want to adopt ETRIA鈥檚 high-performance, cost-competitive engines. While we have nothing to announce at this juncture, we hope to partner with diverse players.

While I understand the need to revise compensation for Audit & Supervisory Board members under Agenda Item 5, I find it hard to judge whether an increase of roughly 40% per month is appropriate. Could you share details of the Compensation Committee鈥檚 discussions and how you determined this level relative to other companies? I reviewed the corporate governance report you published last month but saw no reference to this matter. Shouldn鈥檛 you disclose your deliberations?

Akira Oyama, President and CEO

We decided to revise compensation because expectations and demands on Audit & Supervisory Board members have grown. We needed to set a level that would attract external candidates. We confirmed that our compensation framework is appropriate by benchmarking against other companies. We cannot, however, disclose details of the benchmarks we used.

Your digital services seem to lack originality, as they mainly combine products from other companies. What are Ricoh鈥檚 strengths?

Takahiro Irisa, Senior Corporate Officer

Our strength lies in our frontline capabilities. We provide services to 1.4 million customers worldwide. The competitiveness of our products and services starts with our robust networks and security, which we integrate with third-party products to gear IT services to customer needs. Also, we offer such high-margin proprietary solutions as DocuWare for process automation. We are particularly excited about artificial intelligence over the next three to five years. We have invested in this technology for more than 30 years. We are collaborating with the Ministry of Economy, Trade and Industry to revitalize Japanese companies through these capabilities. We seek to make our digital services more valuable by providing competitive software incorporating our intellectual property.

Akira Oyama, President and CEO

Our proprietary intellectual property, which we created with customers, is a valuable asset and a core strength. Combining it with other companies鈥� products to add value is also one of our strengths. We will continue to strengthen our products and software by leveraging our intellectual property.

None of your internal directors appear to have expertise in developing and designing digital services. Given the pace of technological innovation and the growing sophistication of services, how do you plan to bring in people with development and design expertise? Also, what is Ricoh鈥檚 view on the need for such capabilities?

Akira Oyama, President and CEO

We review the composition of the Board of Directors each year, with a strong focus on our skills matrix, to ensure that we have the internal directors we need for our current business environment and strategy.

Yasuyuki Nomizu, Senior Corporate Officer and CTO

We develop internal talent through our Digital Academy. This program includes technical fields, which we use to upskill employees. To date, we have handled development in-house. To keep up with rapid change, we plan to work with other companies to create an ecosystem that enables us to stay at the forefront of emerging technologies. We have also set up a team to constantly identify and incorporate advanced technologies and deliver value to customers through their expertise. We are cultivating technical talent internally through these efforts.

Mr. Oyama, what do you consider to be the qualities of an ideal businessperson at Ricoh?

Akira Oyama, President and CEO

We will need people who can think and act proactively as we evolve into a digital services company. In expanding our business through AI, it will be vital to have professionals who can connect insights and ideas by effectively leveraging that technology. We also consider it important to have individuals who can think abstractly and produce new value.

Tell us about your resource reallocation approach.

Akira Oyama, President and CEO

Our basic resource allocation principle is to shift more people to growth areas and invest in human capital there. In mature businesses, we aim to operate more efficiently with smaller teams while continuing to generate earnings. We will reinvest the cash from these mature areas into human capital for growth areas to further expand them. This will enable us to grow while producing solid profits.

Competition for talent in IT and digital services has intensified in recent years, with salary increases becoming a major focus for retaining highly skilled people. What was your salary increase rate for fiscal 2025? Also, how do your welfare benefits stack up competitively, and what areas do you think need improving?

Ryoko Nagahisa, Corporate Officer and CHRO

The salary increase rate for April 2025, including the base pay rise, was 4.6%. Management determined this level following discussions of representatives from all offices. While we cannot share details of our welfare benefits, we offer them through a program, much like a cafeteria, which offers a range of options to employees. We will continue to review our program in line with industry trends and employee needs.

I believe that recruitment and training are also important issues. What are you doing to prevent talented young employees from leaving mid-career?

Ryoko Nagahisa, Corporate Officer and CHRO

While our young talent turnover rate is low, we are always mindful of the risk of losing young talent. We encourage supervisors and subordinates to hold monthly one-on-one meetings as part of day-to-day operations. We provide training and other support to help managers engage effectively. Also, we conduct semiannual performance reviews. Since introducing our Ricoh-style job-based personnel system in April 2022, the number of managers in their 30s has also increased. We designed this setup to match the right people with the right roles, so we actively promote motivated and capable young employees. The percentage of managers in their 30s has thus risen from 2.5% three years ago to 11.4% today.

How are you preparing for Nankai megathrust earthquakes?

Mikako Suzuki, Corporate Officer

We formulated a business continuity plan covering such earthquakes and an array of other hazards, including floods and infectious diseases. We refer to local government hazard maps and update our plans annually to assess the scale of potential crises and prepare our responses accordingly. We also conduct drills based on this framework, including scenarios involving significant damage. In addition, we are enhancing our training to prepare for situations such as the Nankai megathrust earthquake advisories issued last year. We will continue taking the steps we need to keep employees safe and maintain business continuity.

I think it鈥檚 essential for your rugby business to remain economically viable. At last year鈥檚 ordinary general meeting of shareholders, you said that fully commercializing your rugby operations was still some way off. Where do things stand this year? How do you assess the number of spectators attending home games, which should be a key revenue source? Last season, you faced limited spectator capacity due to issues securing home venues. Have you secured a site for this season that will make it easier to attract spectators?

Akira Oyama, President and CEO

Our rugby club has a proud 72-year history, during which time it has even been Japan鈥檚 top team. While we have professionalized and diversified our revenue streams, we have made no decisions regarding full commercialization. Attendance at games has considerable room for improvement, and we will continue working to increase it. As you pointed out, securing venues has been a challenge, and we will continue making further efforts in that respect.

Mr. Oyama, please tell us your motto and your favorite book.

Akira Oyama, President and CEO

My motto is 鈥淩emain above the fray and do not succumb to pressure.鈥� I try not to get swept up in internal company matters and always aim to maintain a broad management perspective. I often read management books that offer new ideas. While still very much a beginner in philosophy, I enjoy revisiting Sophie鈥檚 World: A Novel About the History of Philosophy, by Jostein Gaarder.