RICOH imagine.change.Global

Notice of Resolution at The 112th Ordinary
General Meeting of Shareholders

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 read an article about the closure of the Gotemba Plant. I would like to know the intention behind this move and any future prospects.

Respondent:

Director Takashi Nakamura

Answer:

The closure is a part of an integration of production facilities in which we are currently engaged on a global scale. We are scheduled to transfer production activities at the Gotemba Plant to other plants by the end of March next year. Employees of the Gotemba Plant will be asked to continue their jobs at the plants where these activities are transferred. Other details are currently under consideration.

Respondent:

Representative Director Shiro Kondo

Answer:

This closure will terminate production of image-processing equipment at the Gotemba Plant. Due to the plant’s convenience, located in close proximity to the New Tomei Expressway, we will review all options, including alternative use of the premises so that it can take advantage of its location.

 
Question 2: As electricity is expected to be in short supply this summer, I would like to know how each production facility will respond to this challenge.

Respondent:

Director Takashi Nakamura

Answer:

As was done last year, Ricoh’s plants located within the jurisdiction of Tokyo Electric Power Company will be divided into five blocks for the purpose of implementing rotating summer holidays. At the production facilities, meanwhile, we will be committed to saving electricity at peak times through several measures including the use of electricity storage systems involving a cogeneration system, which stores nighttime electricity, and the use of equipment that uses electricity more efficiently.

 
Question 3: Tell me the reason for your refusal of a settlement proposal by the Labor Tribunal and Labor Relations Commission for a dispute over the involuntary transfer of employees.

Respondent:

Representative Director Shiro Kondo

Answer:

As this matter is still under dispute, we prefer to refrain from making a comment.

 
Question 4: What caused the discrepancy between your forecast for FY2012 and the actual results?

Respondent:

Representative Director Zenji Miura

Answer:

First of all, there was an unpredictable impairment loss recorded in the company we acquired in association with the production printing business. Secondly, we were forced to make unexpectedly large expenditures in the aftermath of the Great East Japan Earthquake and the flooding in Thailand, including the cost for air freight, which was required as an emergency response, rather than making shipments by sea, which is normally the case. On the other hand, our structural reform cost has been contained in line with our original schedule.

 
Question 5: Are you planning to transfer production activities to overseas locations, or to acquire overseas companies, to deal with foreign exchange fluctuations?

Respondent:

Representative Director Shiro Kondo

Answer:

We are promoting global purchasing as part of the ongoing structural reform. A large portion of our production activities has already been transferred to overseas facilities, and we are not planning to carry out any further transfers at this point in time. Meanwhile, we will acquire additional overseas companies to pursue the further expansion of our primary businesses. The recent acquisition of a German IT service company is one example of this strategy.

 
Question 6: What segment of product development will Ricoh focus on the most?

Respondent:

Representative Director Shiro Kondo

Answer:

We maintain the No. 1 share in the copier/multifunction equipment markets in developed countries. But we will not remain complacent; rather, we will continue to be committed not just to maintaining, but also expanding, our presence in this segment. Furthermore, on the basis of our solid relationship with our existing customers as developed through such commitments, we will provide new customer value through IT services and new products, including projectors.

 
Question 7: Are you prepared to consider changing the stock trading unit from the current 1,000 shares to 100 shares?

Respondent:

Representative Director Zenji Miura

Answer:

From time to time, we review the possibility of changing the stock trading unit. Should a change be decided, we would disclose it in an appropriate manner.

 
Question 8: You paid out dividends despite the net loss posted for the fiscal year under review. Are you going to keep paying dividends on loss-making results?

Respondent:

Representative Director Zenji Miura

Answer:

If the red ink continues, it will be difficult to keep paying dividends. However, we will strive to achieve a turnaround to allow us not just to keep paying dividends but to pay at the same level as before the recent cut was implemented.

 
Question 9: Is it not appropriate to focus more on research and development rather than seeking growth through acquisitions?

Respondent:

Representative Director Shiro Kondo

Answer:

We are prepared to pursue acquisition opportunities if necessary for further growth. As for research and development, we are still developing world-class, top-notch products and services in the image-processing equipment segment while also maintaining the largest share in the market. Although development areas are expanding year after year, aiming for growth in the future, we will keep up our efforts and never try to cut corners.

 
Question 10: Do you think you may have forgotten the Company’s founding principles?

Respondent:

Representative Director Shiro Kondo

Answer:

We remind ourselves of the founder’s spirit from time to time, and make sure that they are passed on to our successors.

 
Question 11: As part of your hospitality program for shareholders, last season’s rugby match was held in Kyushu, and I was not able to make the trip as it was so far away.

Respondent:

Representative Director Shiro Kondo

Answer:

We invite shareholders to rugby matches, which are held in various places. We are sorry that last season’s match happened to have been held at a place far from your location.

 
Question 12: Tell me about the performance of your digital camera business and its future prospects.

Respondent:

Representative Director Shiro Kondo

Answer:

Although the compact camera segment poses a challenging business environment, due primarily to competition from smartphones, we believe Ricoh still has plenty of opportunities in the digital camera business. PENTAX is a company with a longstanding history, reputable products, and many excellent engineers. We are aiming at growth through the synergy between “Ricoh, known for compact cameras” and “PENTAX, known for single-lens reflex cameras”. We regret that we cannot comment on the performance of this business, as we do not disclose its business results.

 
Question 13: What are the causes behind the decline in sales during the last three years? Which business areas are you planning to expand?

Respondent:

Representative Director Shiro Kondo

Answer:

We understand that the biggest factor behind the decline is the impact from the exchange-rate trend, in addition to the global economic slowdown in the wake of the global financial crisis of 2008. The area of business where we are planning expansion is IT services and Network System Solutions, a business that is currently providing approximately \200.0 billion in net sales and is growing at 10% per annum. Although the Network System Solutions business is mainly confined within the Japanese market at present, we intend to accelerate expansion of this business on a global scale in the future.

 
Question 14: How does the newly acquired IKON Office Solutions contribute to consolidated profit?

Respondent:

Representative Director Zenji Miura

Answer:

Apart from the principle under which we do not disclose individual subsidiaries’ profits, it is technically difficult to isolate and disclose IKON’s profitability as the company has already become part of RICOH AMERICAS CORPORATION.

 

■ Questions and answers relating to Agenda 1
 
Question A: Do you have a targeted level of the dividend payout ratio on a consolidated basis?

Respondent:

Representative Director Zenji Miura

Answer:

Our target is 30% in principle, while due to the deterioration in results since FY2009, the actual dividend payout ratio has been higher than that. We will strive to achieve recovery first, and then on that basis we will aim to achieve the 30% target once again.

 
Question B: Are you prepared to consider changing the basis of the target to a dividend-to-equity ratio?

Respondent:

Representative Director Shiro Kondo

Answer:

Thank you for your valuable suggestion. We would like to give it some thought for the future.

 

■ Questions and answers relating to the Agenda 2
 
Question A: I would like to know details about the career backgrounds of the newly appointed candidates for Directors: Messrs. Yozo Matsuura, Yoshinori Yamashita, and Kunihiko Sato.

Respondent:

Director Takashi Nakamura

Answer:

Mr. Yozo Matsuura has dedicated himself to the development of image-processing equipment, playing a significant role in quite a few projects. Mr. Yoshinori Yamashita has been instrumental to the Company in the purchasing and production segment, in particular having made contributions to the development of the global production system. Mr. Kunihiko Sato has demonstrated leadership in the reform of domestic sales operations, as well as in the marketing segment.

 
Question B: Did you not have any female or foreign candidates for Outside Directors?

Respondent:

Representative Director Shiro Kondo

Answer:

Ricoh, as a global corporation, has been promoting diversity since the 1990s. At present, we have one female Associate Director on the Directors’ compensation grade, and we will further be promoting the appointment of female and foreign Directors.
(Note: We currently have two women and four foreigners among our Associate Directors in the Company and group companies.)

 



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