Global
Value Creation Process
Progress with the Mid-Term Management Strategy
and the Corporate Value Improvement Project
Reviewing the 19th and 20th Mid-Term Management Plans
19th Mid-Term Management Plan (Fiscal 2017鈥�2019)
We embarked on RICOH Resurgent initiatives. These efforts included overhauling the cost structure, optimizing business processes, and strategically assessing businesses for expansion or divestment, putting the Office Services business on a growth trajectory.
A year of tackling crises and accelerating our transformation (Fiscal 2020)
The COVID-19 pandemic made it urgent to enable people to work anytime and anywhere. We responded to the growing demand for remote work and related cloud services and accelerated the transition toward a post-pandemic world.
20th Mid-Term Management Plan (Fiscal 2021鈥�2022)
We did not achieve our business growth goals despite flexibly and promptly responding to the impact of the pandemic and other changes in the operating climate. At the same time, we took several actions such as strengthening our management foundations by deploying a business unit structure and job-based personnel system, enhancing business portfolio management, and developing digital talent so as to steadily transition from an OA manufacturer to a digital services company.
Mid-Term Outlook
In April 2023, we embarked on the three-year 21st Mid-Term Management Strategy. This strategy aims to realize Ricoh鈥檚 mission and vision of Fulfillment through Work by becoming a digital services company that supports worker creativity and provides services that transform workplaces as our medium- to long-term goal.
21st Mid-Term Management Strategy
We are pursuing the following three basic policies to achieve these goals.
1. Reinforce regional strategies and evolve Group management
2. Establish key revenue sources in the frontline and social domains
3. Leverage global talent
Fiscal 2025 financial forecasts announced on May 14, 2025: 楼2,560 billion in sales, 楼80 billion in operating profit, and a 5.4% ROE
Priority domains
Process Automation
Enable our customers to reduce repetitive tasks and boost productivity by optimizing business processes with digital technology, while unleashing their creativity through AI and data to create new value
Workplace Experience
Empower customers鈥� creativity by providing optimal environments for seamless communication and high-quality collaboration, enabled by our digital technology
IT Services
Establish environments for communication, efficient data operation on the cloud, and security assurance that serve as a foundation for the workplace
Our strengths
Customer base
Trusted relationships with 1.4 million customers worldwide
Deep industry and business expertise
Customer touchpoints
Ability to provide consistent services worldwide
Robust consulting capabilities
Intellectual property
Unique hardware and software
Progress with the Corporate Value Improvement Project
To realize our vision, we launched the Corporate Value Improvement Project in April 2023. Through ongoing dialogue with shareholders, investors, and analysts, and analysis from a capital market perspective, we have examined the challenges the 海角社区Group must address from multiple angles. The primary factor behind our low price-to-book ratio is low profitability. To achieve sustainable growth as a digital services company, it is essential to establish profit structures suited to each business. With this recognition, we are now driving a fundamental transformation of our earnings structure.
This project aims to reform our profit structure in four respects: 1) Transformation of Headquarters, 2) Acceleration of business selection and concentration, 3) Transformation of the Office Printing business structure, and 4) Acceleration of Office Services鈥� profit growth.
Project impact amount and outlook as of our announcement on May 14, 2025
The project is progressing steadily. In fiscal 2024, it generated benefits of approximately 楼20.0 billion, exceeding initial expectations. Expenses were about 楼3.0 billion below plan, totaling 楼29.7 billion. We aim to achieve cumulative benefits of 楼52.0 billion across fiscal 2024 and 2025.
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Note: View the latest results briefing information at the following website: /IR/events/earning
Anticipated Savings in Fiscal 2025 versus 2023
Key Performance Initiatives and Progress with Office Services Earnings Growth
To measure profit growth in Office Services, we have established three KPIs: the number of customers, the Office Services adoption rate, and the recurring revenue growth rate. The accumulation of recurring revenue in Office Services is a key indicator that directly contributes to improving profitability. In addition to existing Office Printing customers, the number of new customers is also increasing. As a result, the recurring revenue growth rate in fiscal 2024 rose 10% year on year, excluding foreign exchange effects (up 14% including these effects).
| Key performance indicators | Explanation | FY2023 results |
FY2024 results |
|---|---|---|---|
| Number of customers | 海角社区Group global customer base | 1.4 million companies | |
| Of铿乧e Services adoption rate | Of铿乧e Services adoption rate for above customers | 35% | 36% |
| Recurring revenue growth rate | Annual Of铿乧e Services recurring revenue growth rate after excluding foreign exchange impacts | +10% | +10% |
Becoming a Digital Services Company
That Supports Worker Creativity
As a global workplace services provider, the 海角社区Group leverages its extensive customer base, direct touchpoints, and proprietary intellectual property to consistently generate and deliver value, enhancing worker creativity in line with customer needs. We support the evolving nature of work and empower individual creativity, with a strong focus on driving business growth and ESG-centric management to enhance corporate value.
The figure can be enlarged in PDF
Related Information
Initiatives on Materiality and ESG Targets
We identify material issues under our mid-term management strategy in line with the Three Ps Balance. This is our vision for a sustainable society where the Prosperity (economy), People (society), and Planet (environment) are harmoniously balanced. Under the 21st Mid-Term Management Strategy, we clarified the strategic intent of seven material issues and set 16 ESG targets (future financial targets) as key performance indicators.
16 ESG Targets and Achievements Linked to Seven Material Issues
The progress of ESG targets under the 21st Mid-Term Management Strategy is as follows. While overall, things are proceeding smoothly toward achieving targets by fiscal 2025, there are some delays in 1. Customer survey scores, 15. Engagement score, and 16. Female-held managerial position ratio, and we will continue to address those issues.
Resolving Social Issues through Business
| Materiality (Material issues) |
Strategic intent | 2030 targets | ESG targets in the 21st Mid-Term Management Strategy (End of FY2025) |
Results | ||
|---|---|---|---|---|---|---|
| FY2023 | FY2024 | |||||
| Creativity from Work | To provide digital services that transform how customers work, and help them with productivity improvement and value creation | Contribute to 鈥淐reativity from Work鈥� for all customers to whom we deliver value | 1. Customer survey scores*1 | 29% | Japan 26.3% North America 39.3% Latin America 64.8%*2 Europe 24.5% APAC 17.4% |
Japan 26.8% North America 38.6% Latin America 45.5%*2 Europe 28.2% APAC 30.8% |
| Community and Social Development | To contribute to the maintenance, development, and efficiency of community and social systems. We leverage our technical expertise and customer connections to expand the areas where we provide value | Contribute to the enhancement of social infrastructure for 30 million people*3 | 2. Number of people to whom we have contributed by improving social infrastructure | 23.50 million | 17.94 million | 22.35 million |
| Zero-Carbon Society | To decarbonize the entire value chain and create business opportunities by contributing to carbon neutrality | Reduce GHG*4 emissions by 63% for Scope 1 and 2, and 40% for Scope 3 Switch to 50% renewable electricity |
3. GHG Scope 1 and 2 reduction rate (vs. FY2015) | 50% | 47.4%*5 | 59.1% |
| 4. GHG Scope 3 reduction rate (vs. FY2015) | 35% | 38.1%*5 | 46.8% | |||
| 5. Renewable energy usage ratio | 40% | 31.0%*5 | 43.2% | |||
| 6. Avoided emissions | 1,400 thousand tons | 1,059 thousand tons | 1,448 thousand tons | |||
| Circular Economy | To create business opportunities by building a circular economy business model for ourselves and our customers | Use resources efficiently across the value chain and reduce the virgin material usage ratio of products to 60% or less | 7. Virgin material usage ratio of products | 80% or less | 78.9% | 78.3% |
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*1Percentage of customers rating us as a digital services partner that provides ongoing value by resolving issues and enhancing corporate value
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*2A survey targeting solution customers in Latin America
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*3Number of residents and users benefiting from education, healthcare, and municipal and other services contributing to community development
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*4GHG: Greenhouse gas
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*5The past figures have been revised due to organizational changes within the 海角社区Group and improvements in data accuracy in certain regions
Robust Management Infrastructure
| Materiality (Material issues) |
Strategic intent | ESG targets in the 21st Mid-Term Management Strategy (End of FY2025) |
Results | ||
|---|---|---|---|---|---|
| FY2023 | FY2024 | ||||
| Responsible Business Processes | To earn stakeholder trust by taking a holistic view of our supply chain and minimizing ESG risks in our business processes | 8. CHRB score*6 | Information and communication technology sector leader | Self-assessment completed. 55% progress toward target | Self-assessment re-performed. 90% progress toward target |
| 9. Compliance with NIST SP 800-171 coverage in Ricoh鈥檚 core business environment | 80% or more | Continued identification and assessment of information to be protected | Identification of information to be protected and formulation of a plan completed; countermeasures partially completed. | ||
| 10. Low-compliance risk Group companies | 80% or more | Completed a pulse survey for high-risk organizations | Improvement measures developed in the high-risk organization. Implementation partially completed. |
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| Open Innovation | To shift from a self-sufficient approach to a new value creation process that creates business to quickly resolve social issues | 11. Contracted joint R&D ratio | 25% | 23.0% | 22.7% |
| 12. Digital services patent application ratio*7 | 60% | 54.7% | 64.6% | ||
| Diverse and Inclusive Workforce | To foster a corporate culture where diverse employees can demonstrate their potential and transform themselves and the company into one that is resilient to change | 13. 海角社区Digital Skills Level 2 or above rated employees (Japan) | 4,000 | 2,855 | 4,658 |
| 14. Process DX Silver Stage鈥揷ertified employee ratio*8 | 40% | 21.1% | 34.2锛� | ||
| 15. Engagement score*9 | Global : 3.91 Japan : 3.69 North America : 4.18 Latin America : 4.14 Europe : 4.01 APAC : 4.15 |
Global : 3.79 Japan : 3.57 North America : 4.00 Latin America : 3.90 Europe : 3.92 APAC : 4.03 |
Global : 3.84 Japan : 3.61 North America : 4.00 Latin America : 3.95 Europe : 3.90 APAC : 4.20 |
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| 16. Female-held managerial position ratio | Global : 20% Japan : 10% |
Global : 16.5% Japan : 7.7% |
Global : 17.2% Japan : 8.4锛� |
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*6Corporate Human Rights Benchmark (CHRB) Score: An international human rights initiative established by institutional investors and NGOs. It evaluates global companies from five sectors: food and agricultural products, apparel, extractives, ICT manufacturing, and automotive manufacturing. (Approximately 250 companies evaluated as the latest benchmark)
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*7Ratio of patent applications related to the digital services business to total patent applications
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*8Training rate of personnel with process improvement experience based on a Process DX model (the denominator is the total number of personnel in the training target organization of each business unit)
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*9Uses Gallup鈥檚 Q12 mean score (evaluation scores for 12 factors to predict high organizational performance)
Process of Identifying and Revising Materiality
We identify and revise materiality through a four-step process within our three-year mid-term management strategy, referencing stakeholder perspectives and guidelines. The ESG Committee, chaired by the CEO, deliberates on the revision of materiality, which is then approved by the Board of Directors along with the financial targets before disclosure.
Step 1 Identifying Issues
In considering our mid-term management strategy, we assess the risks and business opportunities arising from changes in environmental and social trends鈥攕uch as increasing demands to address climate change and human rights. At the same time, we evaluate the impact of our business activities on the environment and society, and identify key issues that require action.
Step 2 Prioritizing Issues
We prioritize the identified issues based on international guidelines such as the SDG Compass*1, GRI Standards*2, and the concept of double materiality, as well as management philosophy, management and business strategies, opinions from external stakeholders, and priority management risks in line with the risk management system. The drafts of materiality and ESG targets are then prepared.
Step 3 Management Decision
The materiality and ESG targets are deliberated and decided upon by the ESG Committee, which consists of the CEO as the Chairman, all Internal Directors, and Executive Officers. These decisions are made in conjunction with the financial targets of the mid-term management strategy and are approved by the Board of Directors before disclosure.
Step 4 Performance Disclosure
Annual performance against ESG targets is disclosed annually by the ESG Committee, after confirmation with management.
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*1SDG Compass: Guidelines for companies to align management strategies with the SDGs, and measure and manage contribution to the SDGs
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*2GRI Standards: Global sustainability reporting standards that help organizations report on their economic, environmental, and social impacts
Strengthening Efforts to Resolve Social Issues through Business
We identified businesses that help resolve social issues and their performance contributions, setting sales targets through fiscal 2025. We will keep accelerating efforts to align ESG with business growth. The target amount for fiscal 2025 and the achieved amounts for fiscal 2023 and fiscal 2024 are shown in the table below.
Sales Targets for Social Issue鈥揜esolving Businesses and Fiscal 2023 and 2024 Outcomes
| Materiality | Businesses resolving social issues | 21st MTS ESG targets (End of FY2025) |
Results | |
|---|---|---|---|---|
| FY2023 | FY2024 | |||
| Creativity from Work | Office Services Smart Vision, and others |
楼1,017 billion | 楼926 billion | 楼1,006 billion |
| Community and Social Development | GEMBA* Educational solutions, and others |
楼32 billion | 楼20 billion | 楼28 billion |
| Zero-Carbon Society Circular Economy |
Eco-Friendly MFPs Commercial printing Silicone-top linerless labels On-demand Direct Printing Thermal Media, and others |
楼428 billion | 楼315 billion | 楼410 billion |
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锛�GEMBA: Maintenance and services for stores, warehouses, and other non-office sites
Approach to Strengthening Profitability
As work styles evolve, the Office Printing market continues to shrink, with after-sales revenue dwindling. We expected these changes. We are offsetting them by streamlining the Office Printing business and building new recurring revenue streams through Office Services to enhance profitability. We will further accelerate the pace of growth in Office Services in response to the declining trend in the office printing market. There are four key priorities in boosting profitability.
Four Key Priorities
1Maintain and expand the Office Printing earnings base
We implement thorough efficiency improvements and measures to absorb the impact of declining print volumes. We aim to expand market share by efficiently and stably supplying highly competitive products through ETRIA. We will also strengthen machine-in-field management for MFPs and printers, including by enhancing dealer loyalty programs and reorganizing sales resources. We will maintain and expand recurring revenue by increasing collaboration between RICOH Digital Products, which oversees development and production, and RICOH Digital Services, which handles sales.
2Further accelerate the pace of growth in Office Services
We increase recurring revenue by thoroughly creating synergies with acquired companies, enhancing our proprietary software such as DocuWare, Axon Ivy, natif.ai, and RICOH kintone plus, and by strengthening development and sales resources. In our key Process Automation, Workplace Experience, and IT Services domains, we accelerate growth through cross-selling, including of proprietary software, to customers using Managed Services* in our Workplace Experience domain.
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*Managed Services: Comprehensive outsourcing services that support end-to-end operational management
3Build recurring revenue streams across business domains
We strengthen recurring revenue by expanding Office Printing, Office Services, and Commercial and Industrial Printing with competitive products based on imaging and optical technologies.
4Enhance productivity with digital technology
Employees transform their work styles and deliver global competitiveness by leveraging AI and other digital technologies to streamline operations.
Print volumes to continue declining
Having plunged during the COVID-19 pandemic, print volumes will likely keep falling.
Trend in Print Output Volume (Image)
Accelerate recurring revenue growth
By curbing the decline in recurring revenue from Office Printing and building recurring revenue from Office Services and Commercial Printing, we aim to grow our overall revenues and transform our earnings structure.
Related Information
Bolstering Resources for Sustainable Growth
We draw on our ample capital resources to combine our key strengths to deliver optimal solutions to customers. These capabilities are our extensive customer base, direct touchpoints, and intellectual property (software and hardware). We are reinforcing our resources to deliver even better services. Efforts include developing digital talent to drive customer value and reinforcing our proprietary intellectual property through in-house development, acquisitions, and business partnerships.
Point 1Digital professional reinforcement
We aim to better understand customer needs and design and implement solutions by developing and reskilling digital talent and drawing on expertise gained through acquisitions.
Point 2Bolstering our proprietary software lineup
We will enhance the profitability of our Office Services business by deploying more high-margin proprietary software. In addition to in-house development, we will strengthen our lineup through acquisitions and strategic partnerships.
Examples: DocuWare, RICOH kintone plus, and RICOH Spaces
Point 3Evolving a global common service provision platform
A key driver to expanding recurring revenue is the ecosystem powered by RICOH Smart Integration (RSI). By connecting edge devices, software, and services through this platform, we will continually enhance the value we deliver to customers.
RSI allows us to deploy solutions developed in one region to others, accelerating synergies across the Group.
Point 4Edge devices supporting our digital services company drive
Devices seamlessly connecting analog and digital information are pivotal for us to grow as a digital services company. ETRIA, which we established in July 2024, will drive our expansion by efficiently innovating devices as an industry leader.