Corporate value is a concept that embodies overall improvement, matched to the expectations of all stakeholders, by raising value for shareholders, customers, society and employees. Constantly providing new value, being part of the solution to global environmental concerns and problematic social issues, and fulfilling a responsibility to build a sustainable society—all of these corporate activities, if pursued with steadfast conviction, will lead to higher corporate value, which is integral to business growth.
The Ricoh Group adheres to The RICOH Way, which comprises Ricoh’s Founding Principles—The Spirit of Three Loves—and its Management Philosophy (Mission, Vision, and Values). This is the most fundamental aspect of our corporate being, infusing all corporate activity and guiding our decisions and actions to deal effectively with the complex, high-level issues that we face as a corporate group. Putting The RICOH Way into practice generates new value, which sets society and business conditions on a better course, and inevitably allows us to grow our businesses and enhance corporate value.
We will adhere to The RICOH Way, as it forms the basis of a corporate culture with high ethical standards that promotes good sense from a social perspective, and we will maintain management transparency. Furthermore, we will build a governance structure designed to hone a sharper competitive edge.
In regard to business strategies, we laid out a long-term vision, shaped by anticipated changes in the business environment, while identifying priority social issues (materiality) that the Ricoh Group must address. To achieve this vision, we formulate mid-term management plans every three years and pursue business activities in line with these plans.
|Customers||• Increase customer value by offering products and services that embody the RICOH brand benefits
• Offer safe and reliable products and services
|Shareholders and investors||• Increase corporate value by achieving sustained business growth
• Timely and appropriate information disclosure and communication
|Business partners||• Build partnerships based on mutual trust and fair trade
• Promote socially responsible activities across the value chain
|Society||• Contribute to solving social issues through social contributions and business activities
• Respect the cultures and customs of the countries and regions in which we operate, and contribute to their development
|Employees||• Promote workplace health and safety and develop human resources
• Promote respect for employee diversity and work-life balance
|Global environment||• Conduct business activities in an environmentally friendly manner and contribute to the reduction of environmental impact
• Contribute to the maintenance and restoration of the Earth’s self-recovery capabilities
During the 17th MTP, we worked on two core strategies: “business creation and integration,” and the “establishment of highly efficient management.” In business creation and integration, we extended the reach of our IT services to optimize installation of managed document services (MDS), which relieve customers of the burden associated with operating and managing document-related tasks, and network environments. We also expanded the scope of communications-related solutions that support video conferencing and other business interactions. In emerging markets, we enriched our lineup of MFPs and printers and reinforced the sales structure.
In production printing, we enhanced the lineup of products and solutions in the in-house printing business and acquired a firmer footing in the commercial printing domain. In the industrial business, our efforts yielded the buds of new businesses, including factory automation cameras and rewritable laser systems.
The 18th MTP sets the three years from April 2014 as a time to enhance corporate value and ensure long-term growth of the Ricoh Group. Guided by this plan, we will pursue overall reform emphasizing three building blocks—actionable strategies, management systems and transformation—to forge a resilient organizational structure impervious to whatever external factors it may face.
During the 18th MTP, we will emphasize four new business domains. We will roll out strategies in each domain and cultivate business activities by anticipating market needs and attracting the interest of new customers.
In the office business domain, we will complement our current core business, which centers on printers and other imaging equipment, with businesses that present growth potential and showcase new products and services, such as our projection system, unified communication system, interactive whiteboard and LED lighting, to expand our business presence. In emerging markets, we will capitalize on wider demand for imaging equipment while establishing a strong business structure and expanding business scale, with a view to transitioning to services. In addition, we will build new business pillars in the commercial printing business, namely production printing, as well as the industrial business and the consumer business. We also intend to enter completely new fields that go beyond current business borders to develop new core areas.
Business Domains in the 18th MTP
Broadly speaking, we have two objectives. The first is to reinforce and develop the profitability of core businesses, which are the current source of profits, and redirect the profits to cultivate new growth domains. Specifically, we will continue to hone a sharper competitive edge in the office business—products as well as services—while using communications products and services to present different workstyles and thereby capture new business opportunities. The second objective is to achieve growth by creating new pillars of business, and we aim to extend greater value to customers in the industrial, consumer and public sector and infrastructure markets.
*MIF: Number of MFPs in operation in the market
Net Sales Growth Scenario by Business Segment
On the management system front, we will reorganize operations in four domains—the office business, commercial printing business, industrial business and consumer business—and continue to take innovative approaches that include restructuring the Tokyo headquarters and the technology management system.
As for the structural improvement front, we will promote initiatives for continuous and self-sustained development of all corporate structures, and make highly efficiency management an inherent component of the Ricoh Group.
In the pursuit of higher shareholder value, our goal is to achieve return-on-equity of 10% by enhancing business profits and boosting asset efficiency. We will maintain an appropriate level of equity and consider such factors as return to shareholders in our calculations.
Measures to Improve ROE
We seek to enrich retained earnings to maintain a firm financial footing and to support new business development. At the same time, we recognize the importance of a good return of profits to shareholders and endeavor to provide a stable dividend based on a total consolidated payout ratio in the vicinity of 30%.