FAQ for FY2025 Q3 Financial Announcement | Global

PC replacement demand tapered in the domestic Office Services business (see page 8 of Consolidated Results for Nine Months Ended December 31, 2025). Do you expect growth to slow in IT services and Application Services?

We see no signs of a slowdown at this juncture. In the third quarter, we secured some services deals linked to remaining PC replacement demand. We also captured solid demand associated with security and regulatory changes. IT services sales increased 10% year-on-year, while Application Services sales were up 12%. Beyond this, we are bringing out new services proposals for areas of great customer needs and interest, including packages incorporating AI solutions. There is still a strong need to adopt digital business processes, particularly among small and medium-sized companies, so we expect companies to continue investing in IT. We thus anticipate ongoing growth in IT services and Application Services.

In Europe, Office Services sales grew 4% year on year in the third quarter after factoring out the foreign exchange impact. Does that mean the business has picked up after a sluggish first half?

IT infrastructure sales rebounded from a decline, rising 8% year on year in the third quarter. IT services climbed 13% year on year. It is also worth noting that synergy building progressed between acquired and existing Group companies and among acquired companies themselves and began bearing fruit. While uncertainties remain, we believe that the European Office Services business has shown early signs of recovery.

Your Office Services sales in the Americas dropped 3% year on year in the third quarter after stripping out the foreign exchange impact. What were the prime factors behind this?

There were two main factors. First, sales declined after we divested the U.S. managed IT Services business. Second, sales decreased in Business Process Services. That major business is endeavoring to improve profitability and is reviewing contracts and terminating them as needed. At the same time, we are proposing new services to Business Process Services customers, but progress has been difficult owing to tariff policies and other factors.

To what extent has divesting the U.S. Managed IT Services business affected sales and operating profit for Office Services in the Americas?

Annual sales from this business were just over ¥10 billion. The transfer closed on October 31, 2025, so sales will decrease commensurately for five months from November. The operating profit impact will be limited.

By around how much should Oki Electric Industry joining ETRIA in October 2025 boost sales for RICOH Digital Products?

We anticipate a gain of several tens of billions of yen. Oki Electric Industry disclosed fiscal 2023 sales of ¥36.6 billion for the unit that joined ETRIA.

Why do you project a fourth-quarter operating loss of ¥2.5 billion for RICOH Digital Products?

On top of ETRIA-related production streamlining costs we planned from the start of this fiscal year, our forecast now includes some additional structural reform charges. We also expect higher expenses from rising semiconductor memory costs.

Your fiscal 2025 cash flow allocation plan sets aside ¥50 billion for growth investments (see page 31 of Consolidated Results for Nine Months Ended December 31, 2025). How much did you invest through the third quarter? If you fall short of target, would you consider returning excess funds to shareholders, such as by repurchasing shares?

Cumulative growth investments through the third quarter totaled around ¥5 billion. We continually review repurchases and other capital measures according to circumstances, but we have not made any specific decisions. Also, our planned funding for growth investments includes borrowings, so unused amounts will not necessarily remain on hand. Our shareholder return policy is unchanged. We will continue to review cash flow allocations to balance investment and capital and execute flexible capital measures as necessary.