Summary of Key Questions and Answers

Why are you paying bonuses to directors given that your price-to-book ratio (PBR) has been below 1x for many years and your share price has stagnated? Shouldn’t you allocate these funds to share repurchases, dividends, or other actions that improve corporate value?

Akira Oyama, President and CEO

The bonus amounts for Internal Directors were calculated according to a prescribed formula and submitted to this meeting for approval after the Compensation Committee and Board of Directors determined that they were appropriate. We take seriously the fact that our PBR remains below 1x. In fiscal 2026, we will revise our compensation system to place greater emphasis on alignment with shareholder value. For example, the reference amount for Directors’ compensation, including bonuses, will be restrained when return on equity (ROE) is below the cost of equity and will increase once ROE exceeds that level. We will drive business growth as a workplace integrator, advance asset-light transformation through ROIC-based portfolio management, and improve profitability through cost structure reform. We will also implement measures to improve capital efficiency, including flexible capital policies, with the aim of achieving an ROE above the cost of equity and a PBR above 1x as early as possible.

Ricoh spends too much on printed convocation notice for its General Meeting of Shareholders. While other companies are increasingly simplifying their materials, Ricoh continues to send a thick booklet. Shouldn’t you simplify it promptly, also from the perspective of conserving resources?

Akira Oyama, President and CEO

Following the introduction of the electronic provision system for shareholder meeting materials, the printed documents we send are limited to the access notice and the reference documents concerning the proposals. Beginning with the next meeting in June 2027, we plan to introduce an option for shareholders who wish to receive the convocation notice and related documents by email in Japan. We will continue considering further measures, taking into account the need to reduce environmental impact.

I’m very concerned about prospects for the PENTAX brand. I’m a loyal user of the KP series, which suddenly disappeared from the lineup. There have since been no announcements of new products or lenses. Does this mean that digital single-lens reflex cameras have reached the end of the road? Will the PENTAX brand disappear? I want to know what lies ahead.

Akira Oyama, President and CEO

Under the PENTAX brand, we primarily offer interchangeable-lens digital cameras equipped with easy-to-view optical viewfinders and dustproof, weather-resistant construction, together with interchangeable lenses. We will continue striving to meet the expectations of customers who choose the PENTAX brand.

What progress did you make by the end of fiscal 2025 with the plan you announced during your November 2023 earnings briefing to withdraw from 10 businesses with aggregate sales of ¥180 billion?

Akira Oyama, President and CEO

At our fiscal 2023 second-quarter financial results briefing on November 8, 2023, we reported on the progress of the Corporate Value Improvement Project. At that time, we explained that, as one measure to accelerate selection and concentration, we would decide whether to withdrawal from or sell ten low-profit, non-core businesses with aggregate sales of ¥180 billion.
As planned, we finalized decisions by fiscal 2025 for all 10 of those businesses. We decided to continue operations in some cases by shifting strategy instead of withdrawing from or selling businesses. We have not disclosed how many businesses fell into each of the withdrawal, sale, and continuation categories and therefore will refrain from provide those numbers.
Business portfolio optimization is an ongoing process, rather than something that is completed at a particular point in time. As we work toward the future state we aim to achieve and respond to changes in the business environment, we will continue making the necessary revisions without losing momentum.

The Tokyo Stock Exchange called on listed companies to attain a PBR of at least 1x and an ROE of more than 8%. Ricoh’s current figures are 0.71x and 5.1%, respectively. While your fiscal 2026 ROE projection is 5.4%, this target is too modest. I urge you to achieve a PBR of at least 1x and an ROE of more than 8% for fiscal 2026.

Akira Oyama, President and CEO

We embarked on the Corporate Value Improvement Project in fiscal 2023 to improve ROE. Management takes very seriously the fact that we have not achieved an ROE above the cost of equity and that our PBR remains below 1x.
Under Mid-Term Strategy ’26, which began in fiscal 2026, our goal is to become a company that consistently achieves an ROE above 10% by fiscal 2030. We have already actively implemented a range of measures, including structural reforms. Under Mid-Term Strategy ’26, we will further accelerate our growth strategy and aim to achieve an ROE above the cost of equity as early as possible.
We believe that PBR will improve as we raise ROE and deepen the stock market’s understanding of our progress through ongoing dialogue.

I believe Ricoh’s core products are copiers and multifunction printers. Business operations are becoming increasingly paperless. While consumption of toner and other supplies is declining, converting documents to PDF and other digital formats is becoming increasingly important. Last year, several large companies also suffered ransomware attacks that disrupted their operations for extended periods. You might consider setting up a cybersecurity department at Ricoh to help customers strengthen their security. MFPs connect to in-house local area networks, computers, and servers. This would provide an opportunity to help customers using these devices understand the importance of cybersecurity and support their adoption of AI.

Akira Oyama, President and CEO

We believe that contraction of the Office Printing market is unavoidable as operations become increasingly paperless and documents are digitized. We aim to grow by proposing a range of services that support the way our customers work.
These services include solutions that help customers build and maintain secure environments, as suggested in the question, as well as a range of generative AI solutions. We are receiving a very high level of interest from small and medium-sized enterprises and mid-sized companies in Japan. We also have a dedicated internal organization responsible for strengthening security initiatives across the Ricoh Group. We encourage our people to use AI internally and are actively promoting its adoption by sharing use cases and taking other measures. We will apply the knowledge gained through these internal efforts to our proposals for customers.

What exactly are Workplace Services? Could you explain them in simple terms?

Akira Oyama, President and CEO

Ricoh has a strong global customer base and extensive customer touchpoints, as well as intellectual property and technology. By combining our own technologies and offerings with products and services from other companies, we provide services that help customers unlock their creativity and improve productivity. These include IT services that support customers’ IT infrastructure; process automation services that improve productivity by automating business processes; and workplace experience services that create environments in which customers can express their creativity. We refer to these offerings collectively as Workplace Services.

Page 115 of your convocation notice lists product supply risks among your key managerial operational risks. As countermeasures, you cite selecting multiple suppliers for critical components and identifying alternative parts. Since this involves a long supply chain from design through production, I imagine it places a significant burden on your design and development and production engineering units. Why not use alternative parts and multiple production sites from the initial design stage? Given the heavy workloads these teams likely face, I believe support from senior management would help reduce that burden.

Katsunori Nakata, Executive Corporate Officer

We have previously experienced difficulty procuring key components. If such problems prevent us from supplying products, the impact extends beyond the products themselves and can impede our services. Over several years, we have prepared for such situations at the design stage by identifying the key components to be used and the alternative parts available in the event of supply disruptions. This has placed a burden on our design and development units, but we have been able to respond while minimizing the impact of component procurement issues. Through this process, we have accumulated a substantial body of relevant information and can now respond to such situations in a more systematic manner. We will continue these efforts to avoid inconveniencing customers while reducing the burden on our design and development and production engineering units.

Please share the planned schedule for beginning and completing construction at the former San-ai Dream Center site, where demolition work was completed last year.

Akira Oyama, President and CEO

Demolition of the above-ground portion of the San-ai Dream Center has been completed, and demolition work is currently underway below ground. In parallel, we are reviewing the content and details of the construction plan. We will announce details of the schedule once we are in a position to do so.

You recently repurchased ¥25 billion in shares, yet your share price remains sluggish. From a long-term investment perspective, shouldn't you allocate more resources to growth investments rather than shareholder returns? What are your thoughts on growth investments and portfolio reshuffling?

Akira Oyama, President and CEO

We allocate cash that our businesses generate between shareholder returns and growth investments. In addition to Workplace Services, we position Commercial and Industrial Printing and new businesses as growth areas. We are working to accelerate growth in these areas and achieve companywide ROE above 10%, and we will make the investments necessary to do so. We will continue to provide appropriate shareholder returns while maintaining a balance with growth investments.

I would have no objection if the Chairperson were the company’s founder, but is the position really necessary? Is it not simply a position intended to reward someone for having served as President?

Akira Oyama, President and CEO

At Ricoh, the chairperson’s role is to strengthen oversight and improve corporate governance. We also expect the Chairperson to draw on his or her executive experience to advise management on business execution and undertake external-facing activities, including engagement with the business community and external stakeholders. The position was established to fulfill these roles, and the Nomination Committee discusses each year whether the position should be maintained.

Your Commercial Printing business doesn’t seem to be growing much.

Koji Miyao, Senior Corporate Officer

Commercial Printing is used to produce brochures, posters, books, magazines, and other printed materials encountered in everyday life. Global print demand is declining 1% to 2% annually. Demand is declining in developed countries but is expected to increase in India and Africa, where populations are growing. Commercial Printing encompasses analog and digital printing. We are focusing on the latter area. Analog printing requires the preparation of printing plates and is suited to high-volume runs of 20,000, 100,000, or 500,000 copies. Digital printing makes it possible to customize content for each copy or page. Growing demand for personalized information and the need to reduce the disposal of unsold printed materials are driving the Commercial Printing market toward digital printing, which we expect to grow at a high single-digit annual rate.

How big do you plan to make your perovskite solar cell business? Ricoh identifies opportunities early, but competitors sometimes overtake the company very quickly, or initiatives end without reaching commercialization. What steps will you take to commercialize it as soon as possible? Would it not be better to recruit someone from another company to lead this business?

Akira Oyama, President and CEO

I believe perovskite solar cells are a very promising field. Our technology has received external recognition. We are developing it with support from the Ministry of Economy, Trade and Industry. We will allocate the necessary resources, including recruiting external talent as needed.

I believe Ricoh’s average pay raise rate lags broader market levels. Competitive compensation is essential. What’s management’s stance on this? Please provide specifics on this fiscal year’s pay raise rates and tell us what external benchmarks and internal metrics you used to determine them.

Ryoko Nagahisa, Corporate Officer and CHRO

Pay raise levels are discussed by the Ricoh Consultation Council, which comprises employee representatives from each business site and considers market trends, competitiveness, and other external factors. The final decision is then made by the Group Management Committee. In the April 2026 wage adjustment, salaries were increased by an average of 5.0%. When comparing our compensation with that of other companies, we consider it important to look beyond pay raise rates and assess overall compensation levels. Third-party compensation surveys have confirmed that our compensation levels do not lag behind market levels.

In the Graphic Communications core printing lineup, most continuous-feed printers other than certain impact models are listed as no longer accepting orders, discontinued, or available only while supplies last. What will happen to the core printing business? Will you integrate it with on-demand printing?

Koji Miyao, Senior Corporate Officer

Core printing refers to the form-printing field, which includes electricity and gas bills, credit card statements, and similar documents. Impact printers were once the mainstream choice, but the market is shifting to inkjet printers. Orders are declining for our impact printers. We will continue providing service support for a specified period after sales end. We are talking with customers to help them transition to such new offerings as high-speed inkjet continuous-feed printers. We will continue developing the core printing business, centered on flagship high-speed continuous-feed inkjet printers.

I think you need to consider extending the retirement age and implementing a re-employment program for employees aged 65 or older to secure the workforce you need. Have you taken steps to retain the people you need? And how do you plan to address the rising proportion of older employees in your workforce?

Ryoko Nagahisa, Corporate Officer and CHRO

We have a re-employment program for employees aged 60 to 65. Many employees have chosen to use the program, and we believe it has helped us secure the talent we need. We will consider policies for employees aged 65 and older in light of market trends. Our policy is to make full use of the capabilities of employees who can contribute significantly to the company and demonstrate their abilities, regardless of age, gender, nationality, or other attributes. We focus on identifying, developing, and retaining the talent that supports our growth.

Could you provide specifics on how you are using AI internally and explain how these efforts contribute to earnings?

Takahiro Irisa, Senior Corporate Officer and CSO

In Japan, we deployed an environment in August 2025 that enables all employees to use AI. Today, 10,000 AI agents work alongside our employees. Some 6,000 sales representatives are using AI to enhance sales discussions and help resolve customer challenge challenges. We believe that working alongside AI can increase our ability to create sales opportunities by approximately 20%. We will continue accumulating practical experience internally and use that experience to help deliver Fulfillment through Work to our customers.

I think you need acquisitions to grow as a workplace integrator. What are your thoughts on this?

Akira Oyama, President and CEO

We consider mergers and acquisitions an effective way to grow as a workplace integrator. We aim to invest proactively and generate synergies wherever there are gaps in our service offerings, particularly in Process Automation, which automates processes, and Workplace Experience, which creates environments that foster workplace creativity. We are considering an investment framework of approximately ¥250 billion over the five years through fiscal 2030.

What are Ricoh’s strengths in selling large language models? Are they your technological capabilities? What growth levels can we anticipate?

Yasuyuki Nomizu, Senior Corporate Officer and CTO

Ricoh’s AI excels at interpreting and utilizing complex business documents, including charts and graphs. We have developed the H.D.E.E.N. platform, which uses our large language models to convert company-specific tacit knowledge into explicit knowledge that can be applied to business operations. Our strength lies in using these technologies internally and then applying the resulting knowledge and expertise to our products and services.

What were the findings of the employee engagement survey you conducted in Japan and around the world? I believe that employee motivation shapes corporate performance.

Ryoko Nagahisa, Corporate Officer and CHRO

In fiscal 2025, our global employee engagement score was 3.89 out of 5. The survey response rate was high, at 90%, so we consider the results reliable. Employee engagement has continued to trend upward since the COVID-19 pandemic. It is vital to act on survey findings. In addition to running PDCA cycles in each workplace, our executives discuss the findings and measures needed to improve engagement. We consider engagement scores an important metric and will continue to working to improve employee engagement.

I think outside directors hold too few Ricoh shares. What do you consider an appropriate shareholding level?

Yoshinori Yamashita, Director and Chairperson

We recently established shareholding guidelines for outside directors. In parallel, under Agenda Item 4 for this Ordinary General Meeting of Shareholders, we proposed introducing a non-performance-linked restricted stock unit (RSU) plan for Outside Directors. We believe these guidelines and the plan will increase outside directors’ shareholdings.

To what extent has Ricoh established a culture that encourages employees to take on challenges? What metrics or surveys do you use to determine whether policies set by management and by individual workplaces have become embedded in employees’ behavior? I also want to know more about how your approach works in practice. Is there a mechanism through which employees can communicate directly to management about problems that prevent them from taking on challenges?

Akira Oyama, President and CEO

I believe engagement scores are an important indicator of the extent to which this culture has taken root. The scores do not just measure satisfaction with the company. They also indicate whether employees identify with the company’s policies and feel motivated to take action on their own. These factors are closely related to a culture that encourages employees to take on challenges. We also conduct an annual survey containing questions from a range of perspectives. This serves as a mechanism through which management can directly understand how employees feel. Employee motivation is a valuable asset for us, and management will continue striving to raise engagement.

The printed convocation notice for your Ordinary General Meeting of Shareholders is slightly larger than those of other companies. What’s Ricoh’s view on this given its commitment to eco-friendly business practices?

Akira Oyama, President and CEO

As explained in response to a question submitted in advance, since the introduction of the electronic provision system for shareholder meeting materials, we have limited printed mailings to the access notice and reference documents relating to the agenda items. From fiscal 2027, shareholders will have the option of receiving entire contents of the convocation notice by email. We hope that many shareholders will use this option. We will continue working to reduce the environmental impact of our General Meetings of Shareholders.

What are your plans for your micro-hydropower business? I have high hopes for its potential role in revitalizing regional Japan and contributing to a circular economy.

Takahiro Irisa, Senior Corporate Officer and CSO

We develop a range of technologies, products, and services that benefit the environment. We concluded that transferring our micro-hydropower technology to the most suitable owner, rather than retaining it within Ricoh, would better serve society. We therefore ceased pursuing the business internally and transferred the business to a third party.