Main content

19th Mid-Term Management Plan (April 2017–March 2020)

With the announcement of RICOH Ignite in the year ended March 31, 2019, we steered toward fiscal growth and steadily regained profitability. The year ending March 31, 2020 will be the final year of RICOH Ignite, an important time for us to prepare for RICOH Lift Off, our next growth stage.

Sustainable growth stages

↓

RICOH Ignite

Ricoh is progressing with efforts to deploy growth strategies, enhance returns on capital, and reform corporate governance to materialize RICOH Lift Off from the year ending March 31, 2021.

Three growth strategies leveraging strengths

Three growth strategies  leveraging strengths

Key initiatives and KPIs for the year ended March 31, 2019

Key initiatives and KPIs  for the year ended March 31, 2019
  1. Machines in the Field
↓

Growth strategies deployment

●Toward the year ending March 31, 2023

Growth Strategy #0

Increase profitability by evolving MFPs and pursue operational excellence
  1. Strengthen efforts in growth areas
    Expand sales of advanced IM C series MFPs

  2. Pursue operational excellence
    Launch new production site in southern China and enhance service efficiency with new models

  3. Establish new earnings model
    Encourage customers to secure Ricoh Smart Integration IDs and shift to the platform business

Growth Strategy #1

Grow Commercial Printing business earnings and invest heavily to drive Industrial Printing and Thermal businesses growth
1. Commercial Printing
  1. Increase non-hardware sales portion by establishing MIF base
  2. Customer-oriented O2D transition
  3. Reinforce dealer channel and emerging countries
2. Industrial Printing
  1. Establish MIF base for profitability
  2. Expand textile business
  3. Reinforce capabilities by M&A
3. Thermal
  1. Grow food labeling and e-commerce businesses with demand increase (DT)
  2. Expand market share in emerging countries (TTR)
  3. Launch Laser Solution business

Growth Strategy #2

Expand Office Services business earnings and create new businesses that leverage core technologies
1. Industrial Products
  1. Increase the number of vehicle models using Ricoh’s stereo camera
  2. Gain share of large screen laser Head-up Display (HUD) market
  3. Reinforce sensing business in industrial vertical
2. Smart Vision
  1. Promote THETA in B2B businesses
  2. Expand customer base of data services (THETA 360.biz)
  3. Improve profitability of the digital camera business

Enhance returns on capital

●Returns on capital-centric business operations and capital policies

In preparation for the 20th Mid-Term Management Plan, we are managing investments by instituting business unit ROIC requirements and departmental KPI management to drive profitability. We will maximize ROIC and corporate value while keeping close tabs on our capital costs and financial health.

Enhance returns on capital

Corporate governance reforms

●Basic Stance on Governance

Enhance returns on capital

We pursue world-class governance reforms as befitting a global player. It is accordingly important to eschew the superficial and engage in practical and effective corporate governance. Our approach has drawn on the three concepts on the left.

●RICOH Ignite Initiatives

  • Reinforced executive officer appointment and dismissal process
  • Introduced stock price-linked remuneration
  • Increased independence of auditor appointments
  • Established Risk Management Committee