RICOH COMPANY,LTD.

While operating globally, there is a risk that tightening regulations in various countries and intensifying conflicts between nations could disrupt the supply chain, constrain business operations, and result in lost business opportunities. In particular, U.S. policy trends and changes in tariff policy could adversely affect business performance through sluggish demand in the North American market and rising component procurement costs. As countermeasures, the company is strengthening information gathering on regulatory and policy trends, selecting multiple suppliers for critical components, and establishing a system for continuous deliberation at the management level.

There is a risk that structural reforms and cost optimization may not progress as planned, or that if the decline in print volume accelerates, growth businesses may not sufficiently compensate for it, resulting in delays to profitability improvement and achievement of medium-term targets. As countermeasures, the company is promoting resource allocation optimization through business portfolio management, enhanced monitoring by the Investment Committee, and cost structure reform through back-office reform and global SCM reform.

Due to the sophistication of cyberattacks, if unauthorized access to business systems or ransomware attacks occur, there is a possibility of broad impact on business activities such as sales, manufacturing, and service provision. There are also concerns about incidents caused by vulnerabilities in products/services, and inconsistent responses across the group due to insufficient security governance. As countermeasures, the company is establishing a Security Committee structure, building a continuous monitoring system, introducing security by design, and implementing and training on BCP/IT recovery plans.

While the introduction of advanced technologies such as generative AI and digital twins increases short-term investment burdens, if data, AI, and IT governance are insufficient, there is a risk of information leakage, decision-making based on misinformation, and deviation from AI ethical standards, which could lead to business disruption and damage to brand value. As countermeasures, the company is introducing AI guardrails, establishing governance structures and operational processes, continuing literacy improvement education, and rolling out core system renewal in phases.

If the acquisition, development, and reskilling of management talent and digital technology talent (including AI) necessary for the transformation into a digital services company do not progress sufficiently, there is a risk that business portfolio transformation and new value creation will stagnate, adversely affecting business performance and medium- to long-term growth. As countermeasures, the company is expanding recruitment channels, promoting relocation within the group, conducting selective training and assessments to build a leadership pipeline, and expanding practical education for technical talent including AI talent.

If a violation of import/export-related laws occurs, there is a risk of significant damage to the company through administrative sanctions such as export suspension measures affecting production and sales, loss of social credibility, and fines or criminal penalties. The risk of violating export control laws in various countries due to external factors such as international emergencies is also increasing. As countermeasures, the company is strengthening governance through a Group Import/Export Control Committee headed by the CEO, conducting classification determinations and customer screening through a dedicated organization, and performing regular internal audits and training.

A greater-than-expected decline in print output due to paperless initiatives, and rising component procurement costs, could affect the business performance of the MFPs/Printers for Office Use business. As countermeasures, the company is working to maintain and expand its customer base, thoroughly improve SCM efficiency, build optimal production and development structures through collaboration with other companies, and reduce risk by expanding recurring revenue in the workplace services domain.

Regarding goodwill and tangible/intangible assets arising from corporate acquisitions, if expected cash flows cannot be generated due to divergence from future business plans or market changes, there is a possibility of adverse effects on business results and financial condition. As countermeasures, the company has established a system for deliberating validity from financial, strategic, and risk perspectives through the Investment Committee, along with a mechanism for regular progress monitoring after approval.

A substantial portion of production and sales activities are conducted outside Japan, in the United States, Europe, and other regions, and the yen conversion of overseas subsidiaries' local-currency-denominated results and asset/liability amounts are affected by exchange rate fluctuations. As countermeasures, the company implements hedging transactions such as forward exchange contracts for major currencies, maximizes netting across the group, and matches the currencies of overseas subsidiaries' assets and liabilities.

The promotion of organizational changes and delegation of authority based on the Mid-Term Management Plan '26 carries a risk of insufficient governance or inconsistent policies, delaying strategy execution. In addition, excessive head office oversight could hinder appropriate business operations, while insufficient oversight could lead to fraud or scandals that damage brand image and credibility. As a countermeasure, the company is working to maintain an appropriate balance between organizational autonomy and governance by clarifying authority management, monitoring of important matters, and governance processes.