Last Update: August 30, 2024
| Your Corporate Value Improvement Project expenses were ¥3.9 billion in the first quarter of fiscal 2024. What segment or segments did you allocate that expenditure to? What was the breakdown of this spending? |
| The expenditure was primarily for RICOH Digital Services. This was largely to review sales and service structures in some overseas regions. |
| RICOH Digital Services posted ¥800 million in operating profit in the first quarter, down ¥8 billion year on year. Why was the decline so significant? |
| In the first quarter of fiscal 2023, earnings levels were high owing to the elimination of an order backlog in Office Printing hardware. On top of that, this business unit booked charges relating to the Corporate Value Improvement Project. Another factor was Office Printing hardware and non-hardware earnings were lower than projected, particularly in Europe and the United States. On the hardware front in particular, our MFP inventory was insufficient owing to ocean freight issues, resulting in delivery delays to customers and us falling short of our sales targets. We are working to resolve the inventory shortage, and look to recover from the second through third quarters. |
| RICOH Graphic Communications’ Commercial Printing and Industrial Printing businesses performed well. Might it surpass its full-year operating profit forecast? |
| The operating profit in the first quarter was solid, with a significant increase supported by favorable foreign exchange rates. The Commercial Printing hardware segment delivered strong gains on contributions from products launched in the previous fiscal year. On top of that, exhibiting at drupa 2024 proved successful, leading to orders of more than 200 units. At this juncture, however, we do not expect further upsides beyond foreign exchange rate impacts. |
