Financial Outlook (Financial Performance)
Business Unit Reports
Segment sales and operating profit Figures comply with International Financial Reporting Standards
RICOH Digital Services
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Sales and operating profit include external customer and inter-segment transactions.
Main Businesses, Functions, Products, and Services
We provide digital services in such areas as process automation, workplace experience, and IT services. We also sell and maintain MFPs, printers, scanners, and other imaging devices, and consumables.
Features and strengths
- This business unit drives Group growth as a global workplace services provider with strong customer touchpoint capabilities from serving 1.4 million companies worldwide and a robust sales and support network.
- Proprietary solutions and collaborations with partners leverage capabilities acquired through acquisitions and business alliances to respond to customer challenges.
RICOH Digital Products
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Sales and operating profit include external customer and inter-segment transactions.
Main Businesses, Functions, Products, and Services
We develop and produce edge devices that serve as information gateways, such as MFPs, printers, and scanners (including on an OEM basis).
Industrial computer business: We develop and produce embedded computers.
Features and strengths
- Harnessing global market leadership in MFPs, we develop these and other devices to help customers transform their work processes.
- A robust range of attractive products matches diverse customer needs, including enhanced environmental performance and advanced security requirements.
- As Japan’s industrial computer leader, we develop, produce, and provide customer support.
RICOH Graphic Communications
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Sales and operating profit include external customer and inter-segment transactions.
Main Businesses, Functions, Products, and Services
Commercial printing business: We provide digital printing products, services, and consumables for high-mix, low-volume printing, mainly to printing industry customers.
Industrial printing business: We manufacture and sell industrial inkjet heads, inks, and printers for diverse applications.
Features and strengths
- Comprehensive solutions and services ranging from digital printing–related products to workflow and marketing support at printing sites help customers adopt digital processes. Initiatives to reduce waste, use energy more efficiently, and decarbonize help customers shrink their eco footprints.
- Global leadership in color cutsheet and high-speed inkjet printers is a key strength.
RICOH Industrial Solutions
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Sales and operating profit include external customer and inter-segment transactions.
Main Businesses, Functions, Products, and Services
Thermal media business: We manufacture and sell thermal paper for food point-of-sale and delivery labels and thermal transfer ribbons for printing clothing price tags, tickets, and other items.
Industrial products business: We provide automation equipment and various inspection systems, mainly for the automotive industry.
Features and strengths
- A proprietary technology and a global production and sales network enable us to lead the global market in thermal paper and thermal transfer ribbons for the logistics, distribution, and healthcare sectors.
- Our label-free thermal printing machines print variable information at high speed and resolutions, mainly in the food industry, helping to conserve resources and reduce environmental impact.
- Numerous products and solutions employ proprietary image processing and jetting technologies.
Other
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Sales and operating profit include external customer and inter-segment transactions.
Main Businesses, Functions, Products, and Services
New businesses: The Smart Vision business leverages 360-degree cameras to drive on-site digitalization, with platforms for the inkjet battery and biomedical sectors.
Camera business: Digital cameras
Features and strengths
New businesses: Digital innovations that transform the world of work contribute to a sustainable economy.
- Proprietary optics, image processing, AI, inkjet, and materials technologies drive new business development.
- Co-creating with start-ups and establishing funds fosters open innovation.
Camera business:
- Our unique and distinctive products satisfy core users.
Related Information
RICOH Digital Services
As a workplace services provider, we help customers transform their work environments
Hybrid work models became commonplace after the pandemic. Yet, many processes still rely on paper, accelerating the demand for digital transformation.
We create environments where customers can tap digital technology to focus on unleashing their creativity. We help optimize business processes by harnessing AI and other emerging technologies. Our commitment to staying close to customers enables us to consistently tailor value to their needs.
Takahiro Irisa
President of RICOH Digital Services Business Unit
21st Mid-Term Management Strategy challenges
- Accelerating recurring revenue growth in Office Services and transforming our earnings structure
- Investing extensively in growth areas to cater to ever-changing customer needs
- Strengthening foundations for providing digital services (expanding RSI functions, maintaining printing stock, and transforming our organization)
Fiscal 2024 focuses
Expand recurring revenues
- Develop and deploy highly profitable in-house solutions and services
Concentrate business resources in two areas
- Process automation to reduce tasks by digitizing documents and automating and optimizing business processes
- Workplace experience to help create environments in which employees can focus on creative work
Pursue regional strategies and transform processes
- Transform regional business portfolios, in particular, accelerating a shift to digital services in North America
Market environment
A shift toward hybrid work has increased demand for environments where people can work anytime, anywhere. Also, advances in AI and other technologies have heightened interest in using them. Corporate IT spending should increase through the medium term, with particularly strong growth in cloud-based services. We will channel business resources into two growth areas—process automation and workplace experience—to build recurring revenue streams.
| Risks − and opportunities + | Responses | |
|---|---|---|
| − | Delayed transition to a revenue structure befitting a digital services company, hampering overall corporate performance | Prioritize investments in key businesses and domains, execute investments, transform the business portfolio, and expand recurring revenues by leveraging in-house assets |
| − | A shortage of digital talent to drive strategic initiatives and risks of losing exceptional people to competitors | Elevate employee skills by developing and implementing digital talent and reskilling programs, and reform human resources systems |
| + | Growing demand for digital transformation in the workplace domain | Strengthen capabilities by globally deploying in-house software, undertaking acquisitions and capital alliances, and expanding value by building a robust ecosystem |
| + | A rising need for communication services that cater to new work practices | Invest heavily in the workplace experience, including communication services, through acquisitions and by developing technologies and human resources |
| + | Creating new customer value through technological advances | Visualize customers’ work by using AI to analyze accumulated data and reform business processes to support digital transformations |
Regional strategies for digital services
The Ricoh Group operates in around 200 countries and regions worldwide, addressing customers’ diverse challenges. Customers operating globally demand consistent services everywhere.
We help customers transform their work processes by creating value at regional touchpoints based on their characteristics and our capabilities. We are also strengthening our development structures to cater to local production and consumption and deliver solutions swiftly.
Japan Increase growth and attain a highly profitable structure by providing digital services tailored to specific industry and business challenges
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North America Increase digital services ratio by transforming business process services and accelerating communication services growth
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Europe Ensure solid office services by expanding recurring revenue businesses and accelerating synergies among acquired companies
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Related Information
RICOH Digital Products
Support workers’ progress while creating new value that addresses social challenges
We are committed to enhancing the Ricoh Group’s profitability by creating and delivering new value that supports the progress of office and frontline workers and helps resolve social issues. In fiscal 2024, joint venture ETRIA will leverage technological synergies that bolster our development and production competitiveness. We will deepen our collaboration with PFU, consolidated in July 2023, to transform our business model. We will reinforce partnerships with other industry players to achieve environmental sustainability and business growth, helping to realize a circular economy.
Katsunori Nakata
President of RICOH Digital Products Business Unit
21st Mid-Term Management Strategy challenges
- Supply innovative devices that drive digital services growth
- Expand our business domain by strengthening our edge devices lineup for frontline and industrial applications
- Broaden our customer base by employing new sales channels
- Establish a production and development structure that adapts agilely to market trends
Fiscal 2024 focuses
Establish joint venture ETRIA and capitalize on synergies
- Improve profitability by streamlining operations and reducing development and production costs
- Accelerate the launch of a common engine and step up collaboration with other industry players
- Develop and roll out eco-friendly MFPs for a circular economy
Increase collaboration between PFU and Ricoh, transforming the business models of both companies
- Harness shared technologies to develop and commercialize new MFPs and scanners
- Stabilize earnings by creating new recurring revenue businesses
Market environment
We are mitigating the risks of manufacturing and supply delays attributable to geopolitical factors and large-scale disasters. We strive to enhance the profitability of MFPs and other devices by delivering competitive offerings through an optimized production and development system, including collaborations with other companies. ESG requirements increasingly shape public-sector procurement and major business negotiations, especially in Europe. We are responding to those customer demands. Moreover, we are hedging against exchange rate fluctuations.
| Risks − and opportunities + | Responses | |
|---|---|---|
| − | Impact on factory manufacturing and product supply from escalating global political, military, and social tensions and major disasters and the spread of infectious diseases | Step up response processes by manufacturing mainstay models in multiple locations, securing inventories, diversifying the suppliers of critical parts, and choosing viable alternatives |
| − | Declining print volumes for office MFPs and printers owing to diversifying work styles and a shift toward paperless offices | Maintain and broaden our customer base by developing products that tap shared technologies with PFU and bolster profitability through synergies within ETRIA |
| + | Rising ESG requirements for public tenders and large business negotiations across various countries, particularly in Europe | Boost participation and success in business negotiations by offering industry-leading, environmentally friendly MFPs and leveraging our expertise as an ESG leader |
| + | Growing demand for digitalized information through business process digital transformations | Develop new MFPs and scanners by sharing technologies with PFU |
RICOH Graphic Communications
Driving customer success by meeting global digital printing needs
Printing industry players must increasingly address the ever more complex business and environmental challenges of their customers. Digital printing offers significant advantages over analog setups. These include reduced costs, energy savings, and on-demand capabilities. With the need for digital printing continuing to rise, we are leading digitalization in the printing arena by delivering high-quality, highly reliable products and services around the globe. We are thus helping customers to become more profitable.
Koji Miyao
President of RICOH Graphic Communications Business Unit
21st Mid-Term Management Strategy challenges
- Boost profitability by expanding sales of new products and services that cater to accelerating digital printing demand
- Enhance value-added solutions to address a wide range of customer challenges
- Strengthen management foundations by digitalizing and streamlining development across production, sales, and service processes
Fiscal 2024 focuses
Pursue a profitable growth strategy
- Expand sales of our four principal products for the commercial printing market and inkjet heads for the industrial printing market
Become the global leader in commercial digital printing
- Enhance competitiveness by co-creating with customers to address increasingly complex challenges
Strengthen technology development and production capabilities while becoming more cost-efficient
- Develop new technologies and products to drive growth while pursuing production innovations through digital manufacturing and automation
Market environment
We anticipate growth in the medium to long term in commercial and industrial digital printing. A 2023 survey by Caslon & Company, an American market advisory and research firm, predicted that digital color commercial print volumes would expand at a compound annual growth rate of around 12% from 2023 through 2030. It is also worth noting that the added value of digital printing continues to outpace that of analog printing. The shift to digital printing is accelerating in Europe and the United States. Rising demand indicates high growth potential in China and emerging markets.
| Risks − and opportunities + | Responses | |
|---|---|---|
| − / + | Declining paper media usage from the rise of digital media and diversifying customer needs for printed materials | Deliver digital printing systems that handle high-value-added printed materials on demand in a growing digital printing market |
| − | Eroding profitability and investment appetites among printing companies owing to soaring raw material, logistics, and labor costs | Enhance customer profitability by providing digital printing systems that are more cost-effective, energy-efficient, and user-friendly than analog alternatives |
| + | An accelerating shift to digital printing as companies seek to address such emerging challenges as automation, labor savings, and enhanced process visualization | Supply digital printing systems that help resolve customers’ business challenges |
| + | Growing demand for sustainable printing solutions amid rising environmental awarenesses and tougher laws and regulations | Support sustainability by offering eco-friendly digital printing systems that help customers comply with regulatory requirements |
RICOH Industrial Solutions
Driving customer success with value-added products and services
We will help customers succeed by consistently delivering new value that addresses social challenges and drives manufacturing, logistics, distribution, and industrial digitalization. Central to our endeavors are the highly competitive offerings that we have amassed over many years. By integrating everything from development and design through technology, production, sales, and service, we aim to enhance customers’ operational capabilities and foster Fulfillment through Work.
Keiichi Shiokawa
President of RICOH Industrial Solutions Business Unit
21st Mid-Term Management Strategy challenges
- Boost profitability by promoting operational excellence in thermal media and precision components businesses
- Co-create with end users to develop and deliver products and services that address social challenges
- Tap accumulated expertise and technologies to create new digital services for manufacturing, logistics, and industry front lines
Fiscal 2024 focuses
Strengthen thermal business profitability
- Increase earnings from each site worldwide, improving profitability, and boost sales of highly promising products that address social issues
Enhance the profitability of the precision components and industrial equipment businesses
- Optimize manufacturing in the precision components business, and overhaul design processes in the industrial equipment business
Swiftly generate revenues from new businesses
- Drive the international expansion of the label-free and visual inspection equipment businesses, and rapidly launch automotive coating equipment that uses jetting technologies
Market environment
The thermal market should enjoy stable demand, particularly for high-value-added products that address social issues amid a growing environmental awareness. At the same time, recent geopolitical risks, supply chain disruptions, inflation, and delayed economic recoveries in some regions could hamper growth. It is crucial to adapt to these evolving situations.
| Risks − and opportunities + | Responses | |
|---|---|---|
| − | Slowing growth in the European and Chinese markets owing to the ongoing conflict in Ukraine and slow recovery of the Chinese economy | Monitor market trends closely, strengthen management systems, and optimize supply operations by leveraging Ricoh’s global sales network and production infrastructure |
| + | Rising demand for SDG-compliant products and services as global environmental regulations tighten | Boost customer value by offering silicone-top linerless labels and other finished products, through downstream strategies that bring Ricoh closer to end users |
| + | Increasing demand in the domestic variable printing packaging market, growing at a compound average rate of 7%, and rising demand for prepared foods and fresh vegetables in the aftermath of the pandemic and a growing need to reduce stock-keeping units | Drive global expansion of the solution business for label-less products and functional packaging materials in the variable-print packaging market |
| + | A greater emphasis on traceability and the need to stabilize the quality of exterior appearance inspections | Increase sales of visual inspection equipment by integrating Ricoh’s expertise in coating inspections with proprietary image recognition technology |
RICOH Futures
Making the world a better place by resolving social issues
Our vision is to enhance the quality of life and help create a decarbonized, circular economy through new businesses by leveraging digital technology that transforms the world of work for our customers. We are cultivating conditions for new technologies and ideas to emerge and flourish and are committed to swiftly scaling and monetizing these innovations. By driving business and technology development, we will accelerate our efforts and collaborate with partners to resolve social issues and realize our vision for tomorrow.
Kazunori Kobayashi
President of RICOH Futures Business Unit
21st Mid-Term Management Strategy challenges
- Focus strategically on businesses that drive growth and resolve social issues
- Focus management resources on key areas and swiftly generate profitability
- Engage in open innovation to create new value chains and customer value
Fiscal 2024 focuses
Swiftly expand and monetize through selection and concentration and effective portfolio management
- Clarify focus areas, define investment targets and limits, and reinforce monetization strategies
Co-create with customers and partners to accelerate business and technology development
- Develop partnerships in such areas as the inkjet battery and biomedical businesses, achieving outcomes that we cannot accomplish alone, to generate unique customer value
Market environment
In Japan, the need to enhance productivity as workforces shrink is fueling demand to digitalize operations. Also, progress toward a decarbonized, circular economy and increased expectations for longer healthy life expectancies represent opportunities to expand our business. We will draw on our solid proprietary technologies and customer base to pursue open innovation and swiftly resolve social issues while creating new businesses.
| Risks − and opportunities + | Responses | |
|---|---|---|
| − | Delays in realizing and expanding businesses that help resolve social issues | Leverage the Ricoh Group’s technologies and pursue open innovation to drive growth and collaboration |
| − | Poor responses to ethical, legal, and social issues that could undermine corporate credibility and lead to missed business opportunities | Establish a framework for ethical awareness and activities while strengthening technology ethics in the value creation process |
| − | Missed opportunities to launch services owing to delays or stoppages in parts and raw materials supplies because of the social climate | Enhance preventive and response processes by selecting multiple suppliers or alternative products for critical components to mitigate risks |
| + | Growing demand for digital transformation at construction sites using 360-degree images and videos | Use 360-degree images and videos for digital transformation at construction sites by co-creating with partners and develop and deploy usage in new markets |
| + | An increasing need to reinforce drug discovery capabilities in Japan in view of new infectious disease threats and importance of economic security | Build drug discovery support business and clinical trial drug manufacturing infrastructure by leveraging the acquisition of Elixirgen Scientific, Inc. |
| + | Increasing expectations for highly functional, high-performance rechargeable batteries for various applications | Develop manufacturing technology for lithium-ion secondary batteries using inkjet technology to lower materials costs |