RICOH COMPANY,LTD.

Business Details

Centered on the sales and maintenance services of imaging equipment such as MFPs, printers, and scanners, and related consumables, this segment supports workflow transformation for office customers across three areas: Process Automation (BPS / Document-related Services), Workplace Experience, and IT Services. With a customer base spanning the globe, it is Ricoh Group's largest segment, accounting for approximately 76% of consolidated net sales. Domestically, IT Services / Application Services have grown, while overseas, synergy initiatives with acquired companies are being promoted.

Recent Overview

Despite solid domestic performance, operating income fell 13.4% YoY to ¥27,978 million due to overseas weakness and one-time expenses

For the full year of FY2026 (ending March 2026), net sales increased to ¥1,988,530 million (+3.0% YoY), but operating income decreased to ¥27,978 million (down ¥4,320 million, or 13.4%, YoY). Domestically, IT Services / Application Services drove strong performance, with net sales reaching ¥862,479 million (+8.1% YoY). Overseas, however, the impact of U.S. tariff policy, declining BPS revenue, the sale of the managed IT services business, and one-time expenses associated with the integration of European core systems were downward factors, resulting in overseas net sales of ¥1,126,051 million (down 0.6% YoY, or down 3.3% excluding FX effects), representing a substantial decline. In the fourth quarter alone, operating income fell sharply to ¥1,557 million (down 92.0% YoY).

Key Products

Growth Drivers

• Expansion of the domestic Office Services business: recurring revenue from IT Services / Application Services boosted domestic net sales by +8.1% YoY
• Growth in information-related applications and solutions driven by demand for legal reform compliance and security
• Expanded acquisition of service and support contracts amid increasing demand for PC replacement
• Strengthening of the Workplace Experience area through the acquisitions of PPI in the U.S. and ET Group in Canada
• Recovery in IT Services in Europe driven by the materialization of synergy effects with acquired companies from the second half onward
• Upward effect on overseas sales in yen terms due to yen depreciation (yen weakened by ¥10.95 YoY against the euro)
• Reduction in selling, general and administrative expenses through the effects of the corporate value enhancement project

Risks

• Structural contraction of the office printing market: continued softness in non-hardware and sluggish overseas hardware sales
• Uncertainty over future corporate investment due to U.S. tariff policy: declining hardware and BPS sales in the Americas (Americas Digital Services net sales down 4.8% YoY)
• Cautious stance on IT infrastructure investment due to concerns over deteriorating economic conditions in Europe: postponement and prolongation of deals (down 2.9% in Europe, Middle East and Africa excluding FX effects)
• One-time expenses associated with the integration of European core systems pressuring operating income
• Decline in sales due to the sale of the U.S. managed IT services business (a factor in the Americas revenue decline)
• Fourth-quarter operating income plunged to ¥1,557 million (down 92.0% YoY), highlighting deteriorating profitability in the second half