Ricoh to Change to Digital Service Company

Ricoh to Change to Digital Service Company

Ricoh announced it will introduce a new company structure from April 2021, further transforming its business as it becomes a digital services company, alongside improving capital returns.

It will organize its business into five business units, one for each business domain, where each business unit builds an integrated approach from development to production and sales. Each business unit will operate autonomously. The group headquarters will work on achieving the Return on Equity (ROE) target for the entire group by focusing on medium- to long-term strategic planning, managing the business portfolio through effective capital allocation, and ensuring robust business management based on the growth potential and capital profitability of each business unit.

It had originally planned to introduce this in 2023 but will now implement this change ahead of schedule to respond quickly to the rapidly changing business environment. By introducing this new structure, it will accelerate its transformation from being an Office Automation equipment manufacturer to being a digital services company by transforming the business structure and maximizing corporate value.

From a recent research, IDC predicts that the digital economy -will accelerate, with over 65% of Asia-Pacific (APAC) GDP expected to be digitalized and spending to hit US$ 1.2 trillion between 2020 and 2023.

Previously, Ricoh revised its forecasts of consolidated results and dividend for the fiscal year ending March 2021 (fiscal 2020).

The company pointed out that the previous forecast anticipated a recovery in business performance beginning in the third quarter. However, considering the impact of the COVID-19, the company has revised downward the forecast of sales, gross profit, operating profit, profit before income tax expenses, and profit attributable to owners of the parent from those previously announced in August.

The total dividend forecast per share for the fiscal year ending March 31, 2021, will be changed from JPY¥26.00 (US$0.25) to JPY¥15.00 (US$0.14) in consideration of the above revision of the earnings forecast, cash flow outlook based on investment and cash generation, and dividend stability.

Related:

• Ricoh to Automate Production Process

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