Ricoh : Financial Announcement

May 7, 2024

FLASH REPORT

Year ended March 31, 2024

(Results for the Period from April 1, 2023 to March 31, 2024)

Performance Outline (Consolidated)

(1) Year ended March 31, 2023 and 2024 (Actual result) and Year ending March 31, 2025 (Forecast)

(Billions of yen)

	Year ended	Year ended
	March 31, 2023	March 31, 2024	Change
	Results	Results
Domestic sales	803.9	865.6	7.7％
Overseas sales	1,330.2	1,483.3	11.5％
Sales	2,134.1	2,348.9	10.1％
Gross profit	745.4	820.0	10.0％
Operating profit (loss)	78.7	62.0	(21.2％)
Profit (loss) before income tax expenses	81.3	68.2	(16.1％)
Profit (loss) attributable to owners of the	54.3	44.1	(18.7％)
parent
Exchange rate (Yen/US$)	135.49	144.53	9.04
Exchange rate (Yen/EURO)	140.91	156.74	15.83
Earnings per share attributable to owners of	88.13	72.58	(15.55)
the parent-basic (yen)
Earnings per share attributable to owners of	88.10	72.55	(15.55)
the parent-diluted (yen)
Profit (loss) on equity attributable to owners	5.9	4.5	(1.4)
of the parent (%)
Profit (loss) before income tax expenses on	4.1	3.1	(1.0)
total assets (%)
Return on invested capital (%) (*1)	4.9	3.3	(1.6)
Operating profit (loss) on sales (%)	3.7	2.6	(1.1)
Cash flows from operating activities	66.7	125.6	58.9
Cash flows from investing activities	(133.9)	(97.8)	36.1
Cash flows from financing activities	35.4	(82.9)	(118.3)
Cash and cash equivalents at end of the year	210.8	169.6	(41.2)
(*2)
Capital expenditures (*3)	45.4	53.2	7.8
Depreciation (*3)	41.9	44.0	2.0
R&D expenditures	107.7	109.8	2.1
Number of employee (Japan)	31.8	31.0	(0.7)
(thousand people)
Number of employee (Overseas)	49.2	48.4	(0.7)
(thousand people)

Year ending

March 31, 2025 Change Forecast

950.0 9.7％

1,550.0 4.5％

2,500.0 6.4％

900.0 9.7％

70.0 12.9％

73.0 7.0％

48.0 8.7％

145.00 0.47

1. (1.74)

1. 8.84

81.35 8.80

	－	－
	－	－
	－	－
2.8	0.2
	－	－
	－	－
	－	－
	－	－
50.0	(3.2)
46.0	1.9
95.0	(14.8)
	－	－
	－	－

	March 31, 2023	March 31, 2024	Change
Total assets	2,149.9	2,286.1	136.2
Equity attributable to owners of the parent	931.5	1,038.7	107.1
Interest-bearing debt (*4)	362.9	349.5	(13.3)
Equity attributable to owners of the parent	43.3	45.4	2.1
ratio (%)
Equity per share attributable to owners of	1,529.46	1,722.07	192.61
the parent (yen)

*1 Return on invested capital = (Operating profit - Income tax expenses + Share of profit of investments accounted for using the equity method) / (Equity attributable to owners of the parent + Interest-bearing debt)

*2 The amounts shown as "cash and cash equivalents at end of the year" are shown on the consolidated statement of cash flows.

*3 The amounts presented in capital expenditures and depreciation are for property, plant and equipment.

*4 The amounts are shown bonds and borrowings.

Ricoh Company, Ltd.

• The forecasted results and forward-looking statements included in this document are based on information available to the Company as of the date and certain assumptions that the Company considers reasonable. The Company makes no guarantees with respect to the achievement of its results forecasts or forward-looking statements. Actual results might be significantly different from the forecasts in the document, depending on various factors. For the assumptions used in the forecast and other related information, please refer to "Forecast for the coming fiscal year" on page 8.

1

(2) Three months ended March 31, 2023 and 2024

(Billions of yen)

	Three months ended	Three months ended
	March 31, 2023	March 31, 2024	Change
	Results	Results
Domestic sales	252.7	258.2	2.2％
Overseas sales	352.8	393.0	11.4％
Sales	605.5	651.2	7.6％
Gross profit	206.5	223.4	8.2％
Operating profit (loss)	39.1	24.8	(36.5％)
Profit (loss) before income tax expenses	38.9	25.5	(34.5％)
Profit (loss) attributable to owners of the	26.9	13.8	(48.4％)
parent
Exchange rate (Yen/US$)	132.41	148.41	16.00
Exchange rate (Yen/EURO)	141.99	161.23	19.24
Earnings per share attributable to owners	44.21	22.89	(21.32)
of the parent-basic (yen)
Earnings per share attributable to owners	44.20	22.87	(21.33)
of the parent-diluted (yen)
Profit (loss) on equity attributable to	3.0	1.4	(1.6)
owners of the parent (%)
Profit (loss) before income tax expenses	1.9	1.1	(0.8)
on total assets (%)
Operating profit (loss) on sales (%)	6.5	3.8	(2.7)
Capital expenditures (*)	16.9	19.6	2.7
Depreciation (*)	10.9	11.6	0.6
R&D expenditures	30.4	28.1	(2.2)

* The amounts presented in capital expenditures and depreciation are for property, plant and equipment.

2

Ricoh Company, Ltd. and Consolidated Subsidiaries

Financial Highlights for the Year Ended March 31, 2024

[Prepared on the basis of International Financial Reporting Standards]

1. Results for the Period from April 1, 2023 to March 31, 2024

(1) Operating Results

		(Millions of yen)
	Year ended	Year ended
	March 31, 2023	March 31, 2024
Sales	2,134,180	2,348,987
(% change from the previous corresponding period)	21.4	10.1
Operating profit (loss)	78,740	62,023
(% change from the previous corresponding period)	96.6	(21.2)
Profit (loss) before income tax expenses	81,308	68,202
(% change from the previous corresponding period)	83.2	(16.1)
Profit (loss)	55,641	44,242
(% change from the previous corresponding period)	81.7	(20.5)
Profit (loss) attributable to owners of the parent	54,367	44,176
(% change from the previous corresponding period)	79.0	(18.7)
Comprehensive income (loss)	101,735	137,163
(% change from the previous corresponding period)	11.9	34.8
Earnings per share attributable to owners of the parent-basic (yen)	88.13	72.58
Earnings per share attributable to owners of the parent-diluted (yen)	88.10	72.55
Profit (loss) on equity attributable to owners of the parent (%)	5.9	4.5
Profit (loss) before income tax expenses on total assets (%)	4.1	3.1
Operating profit (loss) on sales (%)	3.7	2.6

Notes:

i. Share of profit of investments accounted for using the equity method: ¥ 5,603 million (¥ 6,151 million in previous corresponding period) ii. Earnings per share attributable to owners of the parent (basic and diluted) are based on Profit (loss) attributable to owners of the parent.

(2) Financial Position

		(Millions of yen)
	March 31, 2023	March 31, 2024
Total assets	2,149,956	2,286,175
Total equity	958,082	1,065,127
Equity attributable to owners of the parent	931,556	1,038,722
Equity attributable to owners of the parent ratio (%)	43.3	45.4
Equity per share attributable to owners of the parent (yen)	1,529.46	1,722.07

(3) Cash Flows

		(Millions of yen)
	Year ended	Year ended
	March 31, 2023	March 31, 2024
Cash flows from operating activities	66,708	125,617
Cash flows from investing activities	(133,939)	(97,822)
Cash flows from financing activities	35,454	(82,922)
Cash and cash equivalents at end of year	210,884	169,639

2. Dividend Information

	Year ended	Year ended	Year ending
	March 31, 2023	March 31, 2024	March 31, 2025
	(Actual)	(Actual)	(Forecast)
Cash dividends, applicable to the year (yen)	34.00	36.00	38.00
Interim (yen)	17.00	18.00	19.00
Year-end (yen)	17.00	18.00	19.00
Total annual dividends (millions of yen)	20,721	21,833	－
Payout Ratio (%)	38.6	49.6	46.7
Dividends on equity attributable to owners of the	2.3	2.2	－
parent (%)

3

3. Forecast of Operating Results from April 1, 2024 to March 31, 2025

	(Millions of yen)
	Year ending
	March 31, 2025
Sales	2,500,000
(% change from the previous corresponding period)	6.4
Operating profit (loss)	70,000
(% change from the previous corresponding period)	12.9
Profit (loss) before income tax expenses	73,000
(% change from the previous corresponding period)	7.0
Profit (loss)	51,000
(% change from the previous corresponding period)	15.3
Profit (loss) attributable to owners of the parent	48,000
(% change from the previous corresponding period)	8.7
Earnings per share attributable to owners of the parent-basic (yen)	81.42

4. Others

1. Changes in significant subsidiaries: No New: － (Company name: －)
   Exclusion: － (Company name: －)
2. Changes in accounting policies and accounting estimate
3. 1. Changes in accounting policies required by IFRS: Yes
   2. Other changes: No
   3. Changes in accounting estimate: No
4. Number of common stock outstanding (including treasury stock):

As of March 31, 2024: 609,521,978 shares; As of March 31, 2023: 609,521,978 shares

1. Number of treasury stock:

As of March 31, 2024: 6,341,095 shares; As of March 31, 2023: 447,171 shares

1. Average number of common stock:

Year ended March 31, 2024: 608,641,582 shares; Year ended March 31, 2023: 616,917,879 shares

Notes: The Company has established the Board Incentive Plan trust in which beneficiaries include Directors and Executive Officers. The

shares owned by the trust account relating to this trust are accounted for as treasury shares. (As of March 31, 2024: 314,000 shares; As of

March 31, 2023: 371,400 shares)

(Reference) Non-consolidatedinformation Results for the period from April 1, 2023 to March 31, 2024

(1) Operating Results

		(Millions of yen)
	Year ended	Year ended
	March 31, 2023	March 31, 2024
Sales	504,676	542,551
(% change from the previous corresponding period)	4.4	7.5
Operating profit (loss)	(27,472)	(5,111)
(% change from the previous corresponding period)	－	－
Profit (loss) from ordinary operations	14,290	54,661
(% change from the previous corresponding period)	(52.9)	282.5
Profit (loss)	29,417	54,181
(% change from the previous corresponding period)	16.0	84.2
Profit (loss) per share-basic (yen)	47.68	89.02
Profit (loss) per share-diluted (yen)	47.67	88.98

(2) Financial Position

				(Millions of yen)
			March 31, 2023	March 31, 2024
	Total assets		982,783	1,026,573
	Total equity		425,966	450,293
	Equity ratio (%)		43.3	43.9
	Equity per share (yen)	699.36	746.53
*Equity capital	March 31, 2024: ¥450,293 million	March 31, 2023: ¥425,966 million

4

1. Performance

(1) Qualitative Information on Consolidated Business Results

• Overview of the Year of Fiscal 2023 (April 1, 2023 - March 31, 2024)
  Business Environment

The global economy faced increasing stagnation during the term because of factors such as the continued high interest rates and inflation in Europe and the U.S. and the economic slowdown in China as well as the serious situations in Russia/Ukraine and the Middle East . The Japanese economy, however, gradually recovered from the COVID-19 pandemic and saw a steady improvement in corporate performance. On the other hand, advanced countries including Japan grappled with the challenge of securing a workforce amid an aging population, leading to ongoing wage level increases and price hikes through price pass-through.

Against this backdrop, remote work and other aspects of new ways of working became entrenched in our core workplace market, and business processes continued to evolve with advancements in IT. This led to customer challenges and needs changing over time, with a growing demand for digital services. While printing demand remained flat, global business prospects remained uncertain including rising personnel costs that are essential to providing services and solutions, and continued rises in transportation and component costs due to local geopolitical risks.

Regarding the average exchange rates of major currencies, the yen in fiscal 2023 was ¥144.53 to the U.S. dollar, up ¥9.04 from the previous year, and ¥156.74 to the euro, up ¥15.83.

Results for the Fiscal Year

Ricoh (the Company and its affiliates) launched the 21st Mid-Term Management Strategy in the year under review.

As our medium- to long-term goal, we aim to become a digital services company that supports workers' creativity and provides services to meet changing workplaces in order to achieve our Mission & Vision of "Fulfillment through Work". In the year under review, we initiated the Corporate Value Enhancement Project to achieve our vision. With a primary focus on transforming the profit structure, we advance the strategic allocation of management resources to the workplace domain in order to leverage Ricoh's strengths in customer base and customer contact.

Consolidated sales for the term increased by 10.1% from a year earlier, to ¥2,348.9 billion (an increase of 5.0% excluding foreign currency exchange fluctuations). We experienced an increase in sales primarily in the office services business driven by the resolution of product supply constraints that affected us in the previous fiscal year, the strong performance of the Scrum series in Japan, and acquisition effects in Europe and the U.S. The acquisition of PFU Limited ("PFU") in September 2022, and the depreciation of the yen also contributed to this sales increase.

By region, in Japan, the Scrum series, which provides solutions tailored to customer challenges such as back-office DX*, continued to see double-digit growth against the backdrop of strong demand for responses to law amendments and security-related needs. This led to a significant sales increase in the office services business. Additionally, sales of edge devices in the office printing business also increased. Partly owing to the acquisition of PFU, sales in this region increased by 7.7% from a year earlier.

Overseas, in the Americas, the sales of edge devices in the office printing business increased due to the resolution of supply shortages centered on A4 MFPs. Sales also expanded in the office services business thanks to growth in the communication services domain owing to contributions from Cenero LLC. ("Cenero"), which we acquired in September 2022, as well as the steady growth of outsourcing services for document-related tasks. Additionally, the increase in printing volume due to the rise in the number of market operational units of higher-end production printers contributed to the increase in sales, especially of non-hardware. Partly owing to the acquisition of PFU and the depreciation of the yen, sales in this region increased by 9.8% (an increase of 3.2% excluding foreign currency exchange fluctuations) from a year earlier. In Europe, the Middle East, and Africa, application services and IT services, mainly through acquired companies, experienced steady growth. The acquisition of PFH Technology Group ("PFH") in June 2023 also contributed to an increase in sales, primarily in the office services business. Partly owing to the depreciation of the yen, sales in this region increased by 14.1% (an increase of 2.9% excluding foreign currency exchange fluctuations) from a year earlier. In other regions, sales increased due to higher sales of inkjet heads in China and other factors. Partly owing to the depreciation of the yen, sales in the regions increased by 9.2% (an increase of 5.4% excluding foreign currency exchange fluctuations) from a year earlier.

As a result, overseas sales increased by 11.5% overall year-on-year. Excluding the impact of exchange rate fluctuations, overseas sales are estimated to have increased by 3.4% year-on-year.

• DX (digital transformation): Measures taken by companies in response to dramatic changes in the business environment to establish competitive advantage by transforming their products, services, and business models, as well as the operations themselves, organizations, processes, and corporate cultures, through utilization of data and digital technologies, based on the needs of customers and society.

Gross profit increased by 10.0% year-on-year to ¥820.0 billion. Despite the impact of production adjustments of MFPs in the office printing business and fluctuations in product mix, profit increased due to growth in the office services business and continued structural reinforcement, as well as the acquisition of PFU and the depreciation of the yen.

Selling, general and administrative expenses increased by 11.9% year-on-year to ¥769.8 billion due to factors such as the acquisition of PFU and others, personnel and other costs that increased amid business growth and inflation, restructuring costs associated with site reorganization, and the depreciation of the yen.

Other income decreased by ¥9.1 billion year-on-year since, in the previous term, we recorded income including a gain on sale of land in Japan.

We posted an operating profit of ¥62.0 billion, a decrease of ¥16.7 billion from the previous fiscal year, as the increase in gross profit was outweighed by the decrease in other income and the increase in selling, general and administrative expenses.

Financial income improved compared to the previous year, mainly thanks to higher foreign exchange gains. The share of profit of investments accounted for using the equity method was lower year-on-year, reflecting a decrease in profits from equity-method affiliates.

We recorded profit before income tax expenses of ¥68.2 billion, a decrease of ¥13.1 billion from the previous fiscal year.

Income tax expenses decreased by ¥1.7 billion year-on-year, owing largely to the decrease in profit before income tax expenses.

We therefore posted profit attributable to owners of the parent of ¥44.1 billion, a decrease of ¥10.1 billion from the previous fiscal year.

Comprehensive income was ¥137.1 billion, owing largely to an increase in exchange differences on translation of foreign operations.

5

* Review by Business Segment

Digital Services

In the year under review, domestic sales of Scrum packages remained strong, especially among small and medium-sized enterprises, with an increase in sales of solutions supporting the invoicing system and preparing for expected law amendments in fiscal 2024. Scrum assets, which primarily propose solutions for medium-sized enterprises, also saw significant growth due to strong demand for operational services after system implementation and security-related services.

Additionally, the number of contracts for the cloud-based business improvement platform "RICOH kintone plus", which was jointly developed with Cybozu, Inc., steadily increased.

In the Americas, Cenero, which we acquired in September 2022, proceeded with the implementation of solutions to Ricoh's existing customers. This led to an increase in contracts for managed AV services* that contribute to recurring revenues, and communication services expanded smoothly. Additionally, outsourcing services for document-related tasks continued to perform well.

In Europe, the Middle East, and Africa, while there were movements in some regions to refrain from investing in ICT products due to the sluggish economic conditions, application services and IT services continued to grow steadily. We continued our efforts to strengthen the office services business through acquisitions. In June 2023, we completed the acquisition of PFH, a leading provider of IT infrastructure, cloud, and managed workplace services in Ireland.

Digital Services sales for fiscal 2023 increased by 10.0% (an increase of 4.8% excluding foreign currency exchange fluctuations) year-on- year to ¥1,852.8 billion.

In the office printing business, supply shortages centered on A4 MFPs were resolved, leading to bulk sales including A3 MFPs. The effects of pricing control measures, such as continued price pass-through of cost increases and value-added sales, were also seen, resulting in year-on- year increase in sales of edge devices. In the office services business, sales increased in various regions due to the deployment of region- specific strategies. Despite increased expenses owing to business growth and inflation, the overall operating profit for Digital Services increased by ¥9.5 billion year-on-year to ¥40.8 billion.

• Managed AV services: Services that provide, manage, and operate audiovisual (AV) equipment, such as microphones, speakers, projectors, and video conferencing systems, as well as their operational systems, for companies and schools.

Digital Products

In fiscal 2023, the sales volumes of MFPs fell below the plan, and the impact of production adjustments exceeded the initial plan primarily in the first half of the year. We recovered revenue in the second half by realigning production and sales coordination according to demand fluctuations toward the end of the fiscal year. Simultaneously, we strengthened our product lineup of edge devices that support digital services.

Regarding MFP and printer, we launched products that contribute to high productivity and sustainability. Approximately 50% of their total resin weight consists of recycled plastics, and they excel in energy-saving performance. In particular, the A3 full-color MFP "RICOH IM C7010" launched in January 2024 is a strategic model with a wide range of DX features and compactness comparable to entry-level models despite being a high-speed machine.

Digital Products sales for fiscal 2023 increased by 20.5% year-on-year to ¥95.9 billion. Sales including intersegment sales decreased by 1.8%, to ¥484.4 billion. Despite the positive impact of the acquisition of PFU, sales decreased due to production adjustments aimed at optimizing sales inventory levels of A3 MFPs. We are continuing efforts to improve profitability through structural reinforcement in production and development. However, because of factors such as product mix fluctuations due to the recovery in production volume of A4 MFPs from the previous fiscal year and a decrease in profit margin ratio due to production adjustments for A3 MFPs, the overall operating profit for Digital Products decreased by ¥17.2 billion year-on-year to ¥17.3 billion.

Graphic Communications

In the commercial printing market, there is demand for addressing the increase in small batch orders for printed materials due to the digitalization and paperless trend, as well as the increasingly complex work processes for more diversified printed materials. Furthermore, there is a growing awareness of the need for operational efficiency in response to labor shortages in printing facilities. To meet these diversified needs, we completely revamped our product lineup in fiscal 2023.

In August 2023, we launched "RICOH Pro C9500" as a new product in our color production printer lineup. This flagship model offers high image quality and stability, as well as enhanced paper handling capabilities, automation and efficiency features. Additionally, the newly developed control system "RICOH GC OS" allows for configuration and adjustment of various paper types, equipment usage monitoring, and maintenance management without requiring specialized skills. This enables work process optimization and visualization, contributing to reducing the workload and manpower needed for printing operators.

Graphic Communications sales for fiscal 2023 increased by 11.6% (an increase of 4.9% excluding foreign currency exchange fluctuations) year-on-year to ¥262.1 billion. In the commercial printing business, sales of production printers continued to grow, primarily in the Americas. Non-hardware sales also increased because the rise in the number of market operational units of higher-end models contributed to higher printing volume. In the industrial printing business, there was a rise in demand for signage graphic and others, leading to strong growth in sales of inkjet heads. Although expenses increased due to an increase in amortization of capitalized development costs from new product launches and one-time expenditures related to site reorganization, the depreciation of the yen had a positive impact. As a result, the overall operating profit for Graphic Communications increased by ¥0.9 billion year-on-year to ¥15.4 billion.

Industrial Solutions

In fiscal 2023, in the thermal business, the Company aimed to expand its label-less thermal business that reduces environmental impact and established a joint venture company, "RICOH NAKAMOTO SMART PACKAGING Co., Ltd." with Nakamoto Packs Co., Ltd. in April 2023 to plan, develop, and sell functional packaging materials. By combining the Company's strengths in thermal technology with Nakamoto Packs' strengths in packaging design and functional coating technology as well as its customer base, we aim to introduce new packaging solutions to the functional packaging market.

In the industrial products business, we launched the "RICOH Visual Inspection System 5000" series of vehicle paint appearance inspection systems in December 2023. With its high inspection accuracy and improved productivity, this system contributes to the DX of customers' on- site operations in the automotive industry.

Industrial Solutions sales for fiscal 2023 decreased by 1.6% (a decrease of 5.3% excluding foreign currency exchange fluctuations) year-on- year to ¥111.7 billion. In the thermal business, sales declined due to customers' inventory adjustments and weak demand in Europe and the U.S. In the industrial products business, sales of industrial optical components decreased due to reduced demand for projectors in China. Although we strived to secure profits through pricing control and cost reduction, overall Industrial Solutions reported an operating loss of ¥0.3 billion, representing a decrease of ¥3.4 billion year-on-year.

In October 2023, we entered into a share transfer agreement of the optical business, which develops, manufactures, and sells optical lens modules for car stereo cameras and projectors.

6

Other

Other segment sales for fiscal 2023 increased by 21.0% (an increase of 17.2% excluding foreign currency exchange fluctuations) year-on- year to ¥26.3 billion. The camera business performed well, resulting in increased revenue and profit. However, due to advance investments in new business creation, overall Other segment reported an operating loss of ¥10.5 billion. (Operating profit (loss) was ¥9.2 billion (loss) in the previous corresponding period.)

(Notes) 1. Digital services as a business segment are mainly limited to the office services business and the office printing sales business. This segment does not include all digital services, which Ricoh aims to transform into "a digital services company" that connects workplaces and support workers' creativity. "Digital Services" provided as "a digital services company" is included in all the business segments as well as Digital Services business segment.

1. 2. The PFU business in Other segment has been reclassified into Digital Services and Digital Products from the first quarter. Prior year comparative figures have also been reclassified to conform to the current year's presentation.

2. Financial Position

Assets, Liabilities, and Equity at Year-End

			(Billions of yen)
	March 31, 2023	March 31, 2024	Change
Total assets	2,149.9	2,286.1	136.2
Total equity	958.0	1,065.1	107.0
Equity attributable to owners of the parent	931.5	1,038.7	107.1
Equity attributable to owners of the parent ratio (%)	43.3	45.4	2.1 points

Total assets increased by ¥136.2 billion from the end of fiscal 2022, to ¥2,286.1 billion. The yen depreciated from the end of the previous term, producing currency translation differences for foreign assets and boosting the amount of total assets. After excluding the foreign exchange impact, total assets decreased by ¥6.0 billion. The year-end rates for major currencies for the yen at end of fiscal 2023 were ¥151.41 against the U.S. dollar (up ¥17.88 from the previous year) and ¥163.24 against the euro (up ¥17.52).

Cash and cash equivalents decreased by ¥44.8 billion from the end of fiscal 2022. Inventories decreased by ¥13.7 billion due to proper inventory management mainly through production adjustments. On the other hand, trade and other receivables rose by ¥61.6 billion mainly due to the increase in sales towards the end of the term under review and the depreciation of the yen. In addition, goodwill and intangible assets increased by ¥46.0 billion mainly due to the acquisition in Europe and the depreciation of the yen.

In October 2023, we entered into a share transfer agreement of the optical business. As a result, we reclassified the assets and liabilities of the relevant business to assets classified as held for sale and liabilities directly related to assets held for sale.

Total liabilities were up ¥29.1 billion from the end of fiscal 2022, to ¥1,221.0 billion. Bonds and borrowings decreased by ¥13.3 billion. On the other hand, other current liabilities increased by ¥38.9 billion mainly due to acquisitions and the depreciation of the yen.

Total equity increased by ¥107.0 billion from the end of fiscal 2022, to ¥1,065.1 billion. Retained earnings increased by ¥30.4 billion mainly due to an increase in profit. Additionally, exchange differences on translation of foreign operations rose by ¥83.6 billion due to the depreciation of the yen. On the other hand, as part of the shareholder return policy, we repurchased treasury stock, leading to a decrease in equity by ¥7.5 billion.

Equity attributable to owners of the parent was up ¥107.1 billion from the end of fiscal 2022, to ¥1,038.7 billion. The equity attributable to owners of the parent ratio became 45.4% and remained at a stable level.

(3) Cash Flows

			(Billions of yen)
	March 31, 2023	March 31, 2024	Change
Cash flows from operating activities	66.7	125.6	58.9
Cash flows from investing activities	(133.9)	(97.8)	36.1
Cash flows from financing activities	35.4	(82.9)	(118.3)
Cash and cash equivalents at end of year	210.8	169.6	(41.2)

Net cash provided by operating activities was ¥125.6 billion, up ¥58.9 billion from the previous year, mainly due to a decrease in inventories through proper inventory management.

Net cash used in investing activities decreased by ¥36.1 billion year-on-year to ¥97.8 billion, mainly due to the acquisition of PFU in the previous year.

We accordingly posted a positive free cash flow (net cash provided by operating activities plus net cash used in investing activities) of ¥27.7 billion, up ¥95.0 billion from the previous year.

Net cash used in financing activities increased by ¥118.3 billion year-on-year to ¥82.9 billion, mainly due to proceeds from debt in the previous year and repayments of debt in the year under review. We repurchased ¥30.0 billion of treasury stock in the previous year and ¥7.5 billion in the year under review as part of the shareholder return measures.

Cash and cash equivalents at the end of fiscal 2023 thus totaled ¥169.6 billion, down ¥41.2 billion from the end of fiscal 2022.

We will systematically employ operating cash flows from business investments to invest in further growth and support shareholder returns. For the detailed contents of capital policies, please refer to "(6) Our Challenges, Medium-Term Direction, Capital Policies Supporting Growth" on page 10.

(Reference) Cash Flow Indices

	Year ended	Year ended	Year ended	Year ended	Year ended
	March 31, 2020	March 31, 2021	March 31, 2022	March 31, 2023	March 31, 2024
Equity attributable to owners of the parent	32.1％	48.7％	48.7％	43.3％	45.4％
/ Total assets
Market capitalization / Total assets	20.1％	42.8％	36.5％	28.1％	35.7％
Interest bearing debt / Operating cash flow	9.1	1.8	2.9	5.4	2.8
Operating cash flow / Interest expense	25.5	47.1	26.9	13.2	32.3

Notes:

i. All indices are calculated based on consolidated data.

1. Operating cash flow is shown in consolidated statement of cash flow. Interest bearing debt are bonds and borrowings.
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(4) Forecast for the coming fiscal year

Ricoh launched the 21st Mid-Term Management Strategy in the year under review.

As our medium- to long-term goal, we aim to become a digital services company that supports workers' creativity and provides services to meet changing workplaces in order to achieve our Mission & Vision of "Fulfillment through Work".

Prospects remain uncertain this fiscal year for several reasons such as persistent global economic stagnation stemming from ongoing international tensions, surging resources prices, inflation, and the yen's depreciation. While the operating climate will remain challenging into next fiscal year, we are committed to steadily implementing the Enterprise Value Improvement Project to make our profit structure suitable for a digital services company.

In addition to expecting continued solid growth in the office services business, which is positioned as growth businesses for Ricoh, we expect a recovery from the production adjustment in the office printing business for fiscal 2023 and growth in graphic communications. In July 2024, we plan to establish a joint venture with Toshiba TEC Corporation to integrate development and production. We will execute this integration swiftly and systematically transform the office printing business.

Our performance forecast for the fiscal year ending March 31, 2025 is as follows:

Exchange Rate Assumptions for the full year ending March 31, 2025
US$ 1 =	¥145.00	(¥144.53 in previous fiscal year)
EURO 1 =	¥155.00	(¥156.74 in previous fiscal year)
						(Billions of yen)
					Year ending
				Year ended	March 31, 2025
				March 31, 2024	(Forecast)	Change
	Domestic sales		865.6	950.0	9.7％
	Overseas sales		1,483.3	1,550.0	4.5％
	Sales			2,348.9	2,500.0	6.4％
	Gross profit		820.0	900.0	9.7％
	Operating profit (loss)	62.0	70.0	12.9％
	Profit (loss) before income tax expenses	68.2	73.0	7.0％
	Profit (loss) attributable to owners of the parent	44.1	48.0	8.7％

• The results forecasts and forward-looking statements included in this document are based on information available to the Company as at the date and certain assumptions that the Company considers reasonable. The Company makes no guarantees with respect to the achievement of its results forecasts or forward-looking statements. Actual results might be significantly different from the forecasts in the document, depending on various factors. Factors which may affect the actual business results include but are not limited to the economic situation in the geographic areas where Ricoh conducts business, including Japan, the Americas, Europe, Middle East, Africa, China and Asia, market environment, and currency exchange rates.

(5) Dividend Policy

We continue to target a 50% total return ratio. We aim to increase cash dividends each year in line with earnings growth while keeping the dividend yield in mind. We will undertake share repurchases and other additional return measures in flexible and timely manners to boost total shareholder returns*. Such actions will factor in the operating climate and progress with growth investments and our commitment to an optimal capital structure.

It is in keeping with this shareholder return policy that we decided to repurchase ¥30 billion in shares in this fiscal year and had repurchased ¥7.5 billion by the end of March 2024. The year-end dividend per share will be ¥18.00, and the total dividend per share for the fiscal year ended March 31, 2024 will be ¥36.00.

The total dividend per share for the fiscal year ending March 31, 2025 will be ¥38.00, increased by ¥2.00 as compared to the fiscal year ended March 31, 2024.

* Total shareholder return: The total return on investment for shareholders, including capital gains and dividends from a stock.

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(6) Our Challenges

Unchanging Commitments Amid Change

We steadfastly uphold the Ricoh Way, our corporate philosophy, grounded in the foundational Spirit of Three Loves: "Love your neighbor, Love your country, Love your work." On April 1, 2023, we refined the Ricoh Way to more clearly articulate a vision that this spirit inspired of engaging deeply with our customers and fostering Fulfillment through Work. Our purpose is to contribute to a sustainable future for this planet by continuously innovating and supporting the workplace endeavors of individuals, helping to unleash their creative potential.

Medium-Term Direction

We embarked on the 21st Mid-Term Management Strategy in April 2023. Our goal over the medium through long terms is to evolve into a digital services company that enhances workers' creativity and transforms workplaces in line with our Mission & Vision of Fulfillment through Work.

We aim to become a workplace services provider, integrating our services for evolving work environments. We tap a global customer base, a sales and service structure that identifies and addresses customer challenges, and our distinctive in-house intellectual property to reach these goals.

Future Financial (ESG) Perspectives

ESG initiatives are vital to generate future finances. We will undertake activities covering the entire value chain to cater to the rising ESG demands of stakeholders in keeping with our commitment to maintaining a world-class reputation for sustainability and ESG.

In launching the 21st Mid-Term Management Strategy, we partially redefined our seven material issues. We address four social issues directly through our business and strengthen three management foundations to support these initiatives. We linked these issues to 16 future financial targets that are also ESG goals. We formulated our issues and targets to tackle global ESG trends and better execute our management strategy. We distributed and implemented these targets across our business units and functional organizations.

To help resolve social issues through our business, we will provide digital technologies and services that equip customers to enhance creativity from work, boost productivity, and generate value. We will keep helping to materialize a zero-carbon society and circular economy and draw on our technological prowess and unmatched customer touchpoints to help maintain, develop, and streamline community and social systems. We will reinforce our management foundations by intensifying efforts to address human rights issues, secure sufficient talented digital professionals to transition into a digital services company, and improve the quality of patents relating to digital services. Under the 21st Mid-Term Management Plan, we identified businesses that help resolve social issues and their performance contributions, setting sales targets through fiscal 2025. We will keep accelerating efforts to integrate ESG goals and business growth.

Basic Policies of the 21st Mid-Term Management Strategy and Enterprise Value Improvement Project

We are pursuing three basic policies to achieve our medium- and long-term goals. These are "Reinforce regional strategies and evolve Group management", "Build revenue sources in frontlines and social domains" and "Leverage global talent".

We have worked on enterprise value improvement project since April 2023 to realize our vision. We have explored crucial issues from multiple angles to enhance our enterprise value. These efforts have included engaging with shareholders, investors, and analysts, and considering capital market perspectives. Our low price-to-book ratio stems largely from our modest profitability. In transitioning to a digital services company, we are overhauling our earnings structure to better align with our business model.

We are reforming our profit structure in four respects. These are (i) to transform headquarters, (ii) accelerate business selection and concentration, (iii) overhaul the office printing business structure, and (iv) accelerate the office services profit growth.

1. Headquarters reforms: We will focus R&D investments in workplace areas that align closely with our digital services company vision. We will shift the Group management structure to a digital services-oriented setup that lifts customer touchpoint value.
2. Business selection and concentration acceleration: We will further accelerate ongoing business portfolio management initiatives to transition into a digital services company and optimally allocate resources. We will strategically allocate resources to workplaces as a priority domain for employing our strengths. We will consider exit strategies for certain operations as part of business portfolio management.
3. Office printing business structure overhaul: Because we expect the office printing market to shrink, we will bolster our structure to ensure profitability even if sales decline. We will manage our entire value chain from overarching perspectives, including by establishing a joint venture with Toshiba Tec Corporation and optimizing supply chain management.
4. Office services profit growth acceleration: For this digital services core, we will strive to constantly improve profitability while remaining aware of the mechanism for profit growth through higher office services installations and recurring revenue growth rates among customers. We will maximize our value proposition by leveraging inside sales and other means in reviewing sales, service, and support and aligning them with a customer-centric digital services company structure.

These initiatives to reform our earnings structure are important to achieving our objective. Our reforms will be a top priority in fiscal 2024. We will continually enhance enterprise corporate value by adopting growth strategies from medium- through long-term perspectives while upholding earnings improvements to ensure consistent profit growth as a digital services company.

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Capital Policies Supporting Growth

We aim to maximize shareholder and corporate value while satisfying all stakeholders. We seek to generate returns on capital that exceed capital costs, drawing on experts to assess these costs from multiple approaches and perspectives.

To maximize corporate value, we rigorously evaluate and manage each business unit using such criteria as return on invested capital (ROIC), marketability, and other factors under strict business portfolio management. This approach rationalizes judgments and optimizes resource allocations.

Each business unit and department deploys measures using ROIC trees to pursue returns exceeding capital costs and boost the medium- to long-term ROE above 10%.

We are harnessing debt extensively for investments as we transform into a digital services company. We target an appropriate, risk assessment-based capital structure. We will balance debt and equity capital in investing in businesses. We will extensively allocate debt to the office printing and other stable businesses. We will mainly direct equity capital to relatively high-risk growth businesses.

For fiscal 2025, we will secure capital for growth with a capital structure that takes into account credit ratings and capital financing risk. This is because we assume ongoing uncertainties in the business environment. From fiscal 2025, we aim to flexibly adjust the optimal capital structure in light of business structure changes associated with new growth strategies and also reflect stabilized growth investment areas.

We will systematically deploy operating cash flows from business investments to fund further growth and shareholder returns. We have retained our 20th Mid-Term Management Plan commitment to investing around ¥500 billion in growth areas over five years through fiscal 2025 to driving our transformation into a digital services company. Thus far in fiscal 2023 we have invested consistently in business growth to strengthen IT services, including by acquiring PFH in Ireland and have expanded the office services business through acquisitions in communication and application services in Europe and the United States.

Also in fiscal 2024, we will continue investing in growth to maximize corporate value while maintaining financial discipline. We will fund investments primarily with operating cash flow while additionally using interest-bearing debt.

2. Basic policies in selecting accounting policies

Ricoh has decided on voluntary adoption of IFRS from fiscal year ended on March 31, 2014 as Ricoh concluded that an implementation of IFRS as a global standard and unifying accounting standards across the group will enable Ricoh to enhance accuracy for the management of the entire group.

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