19th Mid-Term

Management Plan

Review & 20th Mid-

Term Management

Plan Outline

March 27, 2020

Jake Yamashita

President and CEO Ricoh Company, Ltd.

©2020 Ricoh Company, Ltd. All RightsReserved

COVID-19 Update

Tackle emergency by strengthening corporate structure and accelerating growth

Current State

Response

Policy

  • Supply Chain

(Procurement / Production)

  • Sales/Services
  • Operations

Japan/China

: Most production lines are back on track

Europe

: Mandatory stoppage at governments' request

NA/Asia

: Normal

SCM

: Inventory distributed to each market.

Optimizing inventory based on sales volume

  • Economic and business activities at standstill worldwide, causing delays in deals and deliveries
  • Decline in customer document volumes
  • Enhanced prevention of epidemic, promoting remote work

Emergency Response

New Needs

Response

  • Develop emergency plan (Plan B) to enhance earnings power

Implement in-house digital revolution, optimize resources and locations, business selectivity, etc.)

  • Changing work practices and emerging needs on medical and educational frontlines

March 27, 2020

(C)2020 Ricoh Company, Ltd. All Rights Reserved

1

Growth Strategy Positioning

Slide From

IR-Day

April 11,2019

FY17-FY2019-FY2022

"Resurgent"

"Ignite"

"Lift Off"

Enhance our

strengths and refine

Pursue high targets

Ensure sustainable

our implementation

companywide in steering toward

growth and further

capabilities to deliver growth

growth

progress

March 27, 2020

(C)2020 Ricoh Company, Ltd. All Rights Reserved

2

Financial Position

Greatly improved ability to generate cash to fund investment

■Structural reforms: From scale to profitability

See next page

■Prioritize growth businesses: Deployed strategies leveraging our strengths

Dramatically

improved

■Reinforce management systems: Undertook top-down reforms

cash flows

Tackled impairment charges, business selectivity, and governance reforms

Forecast

Target

Operating profit

¥100.0 billionForecast at Q3

Above ¥100 billion (Fiscal 2019)

Structural reform

¥105.0 billionForecast at Q3

Above ¥100 billion (From fiscal 2016)

savings

FCEF*

¥172.9 billionThrough Q3)

Above ¥100 billion (Over three years)

* Free cash flow excluding finance business

3

March 27, 2020

(C)2020 Ricoh Company, Ltd. All Rights Reserved

Structural Reforms by Top Down Approach

Reviewed 5 major principles and implemented structural reforms

Cost Structure

Reforms

Business Process

Reforms

Pursued Selectivity

  • Focused development, streamlined production sites (In-house manufacturing)
  • Optimized sales structure in North America
  • Streamlined headquarters and back office functions
  • Impairment (IKON, mindSHIFT, etc.)
  • Improved services and supported productivity by enhancing features in MFPs
  • Promoted cost reduction through automated production systems
  • Improved efficiency of business processes by promoting worldwide RPA (Robotics Process Automation) activities

 Assessed and clearly segmented businesses

See next page

~ there were no "sacred cows"

 Stopped financial support in Ricoh India

March 27, 2020

(C)2020 Ricoh Company, Ltd. All Rights Reserved

4

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Ricoh Company Ltd. published this content on 15 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 November 2022 06:10:04 UTC.