Notice of Resolutions at the 120th Ordinary General Meeting of Shareholders Q&A

Q&A

* This is a summary of the some of the main questions and answers picked up from a number of questions relating to the Business Report and Agendas.

■ Questions and answers relating to the Business Report

Question 1:: I heard that your human resources Division and other sections of your organization made offensive remarks about people with disabilities and incurable diseases. Does your company tolerate discrimination?
Respondent:: Yoshinori Yamashita, President and CEO
Answer:: Our company definitely does not tolerate discrimination. We set up an internal control structure and commissioned a third-party institution to run our hotline. I also receive regular reports. If what you say is true it is unforgivable. We will check the facts and respond appropriately.

Question 2:: The Office Printing business accounts for half of Ricoh's sales. Printing may no longer be necessary in the not too distant future. How are you preparing for that eventuality?
Respondent:: Yoshinori Yamashita, President and CEO
Answer:: We know that the transition from printed to electronic documents is accelerating. Document volume has expanded three- or four-fold with the shift to digital. DocuWare GmbH, a German firm that we acquired last year, offers a platform that supports finding and using electronic documents, and will operate in Japan and elsewhere around the globe. As a manufacturer, Ricoh looks to generate new value by providing services.

Question 3:: How many patents have you registered? How are you positioned in the electronics industry? What is your patent revenue?
Respondent:: Seiji Sakata, Director and CTO
Answer:: We hold around 18,000 patents in Japan. In 2019, we were granted 1,527 patents in Japan, ranking 10th in that nation. Our 980 patent grants in the United States positioned us 37th there. We do not disclose our patent revenue. We employ a patent evaluation methodology called IP Landscape, and are optimizing not just the number of patents by also their value in making applications.
Respondent:: Yoshinori Yamashita, President and CEO
Answer:: While we do not disclose patent revenue figures, we can say that the revenues exceed expenses.

Question 4:: Some sections of the press ran articles stating that a foreign investor would acquire a long-term stake to bolster Ricoh's IT services business. What sorts of information do investors base their long-term assessments on?
Respondent:: Yoshinori Yamashita, President and CEO
Answer:: Platformers like Google, Amazon, Facebook, and Apple are expanding in the data analytics business, but the data itself is on the customer frontlines, and someone has to put it on platforms. As a digital services company, Ricoh will grow by collaborating with such platformers and cultivate businesses that form real points of contact. We believe that investors rate us solidly in that regard.

Question 5:: Corporations are increasingly adopting company with audit and supervisory committee governance structures. What does Ricoh plan to do in that regard?
Respondent:: Yoshinori Yamashita, President and CEO
Answer:: We are constantly evaluating our corporate setup. We consider our current one optimal in view of the prevailing business climate.
Respondent:: Nobuo Inaba, Director
Answer:: We believe that our current company with auditors structure is the best for our operating climate. The Board of Directors resolves important management matters under the assumption that corporate auditors are independent. The board is always exploring what would be the optimal corporate governance structure.

Question 6:: How do you engage in investor relations? Also, I'd like you to avoid holding general meetings of shareholders on dates when many other companies convene such gatherings.
Respondent:: Yoshinori Yamashita, President and CEO
Answer:: Our investor relations efforts are proactive. I, CFO Hidetaka Matsuishi, Mr. Inaba, and Ricoh Investor Relations spoke with 438 companies last year. We engage in extensive dialogue with shareholders and other investors, and share feedback from them throughout Ricoh. The date of our general meeting of shareholders was based on the fiscal year-end date. We will consider your opinion.