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1 April 28, 2016 Performance Outline (Consolidated) FLASH REPORT March 31, 2016 (Resultss for the Period from April 1, 2015 to March 31, ) (1) March 31, 2015 and (Actual result) and Year ending March 31, (Forecast)) (Billions of yen) d Yearr ended Year ending March 31, 2016 Change March 31, 2017 Change Results Results Forecast Domestic sales Overseass sales Sales Gross profit Operating profit Profit before income tax expenses Profit attributable to owners of the parent Exchange rate (Yen/US$) Exchange rate (Yen/EURO) Earnings per share attributable to owners of the parentbasic (yen) Earnings per share attributable to owners of the parentdiluted (yen) Profit on equity attributable to owners of the parentt (%) Profit before income tax expenses on total assets (%) Operating profit on sales (%) , , , , % 0 4.0% 4 2.7% 2 2.8% 11.6% 14.8% 8.1% , , % 3.1% 1.8% 3.4% 24.7% 24.8% 30.1% Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of year Capital expenditures Depreciation R&D expenditures Number of employee (Japan) (thousand people) Number of employee (Overseas) (thousand people) Total assets Equity attributable to owners of the parent Interestbearing debt Equity attributable to owners of the parent ratio (%) Equity per share attributable to owners of the parentt (yen) 2, , March 31, , , Change , , Ricoh Company, Ltd. * The compilation method has been changed from this fiscal year such as part of the lease transactions are shown in net basis instead of gross basis. Prior year comparative figures have also been adjusted to conform to the current year presentation. * The results forecasts and forwardlooking statements s included in this document are based on information available to the Company as at to date and certain assumptionss that the Company considers reasonable. The Company makes no guarantees with respect to the achievement of its results forecasts or forwardlooking statements. Actual results might be significantly different from thee forecasts in the document, depending on various factors. For the assumptions for forecast and other related information, please refer to 1. Forecast forr the coming fiscal year on page 8. 1

2 (2) and 2016 Results March 31, 2016 Results (Billions of yen) Change Domestic sales % Overseas sales % Sales % Gross profit % Operating profit % Profit before income tax expenses % Profit attributable to owners of the parent % Exchange rate (Yen/US$) Exchange rate (Yen/EURO) Earnings per share attributable to owners of the parentbasic (yen) Earnings per share attributable to owners of the parentdiluted (yen) Profit on equity attributable to owners of the parent (%) Profit before income tax expenses on total assets (%) Operating profit on sales (%) Capital expenditures Depreciation R&D expenditures

3 Ricoh Company, Ltd. and Consolidated Subsidiaries Financial Highlights for the Year Ended March 31, 2016 [Prepared on the basis of International Financial Reporting Standards] 1. Results for the Period from April 1, 2015 to March 31, 2016 (1) Operating Results March 31, 2016 Sales 2,151,404 2,209,028 (% change from the previous corresponding period) Operating profit 115, ,295 (% change from the previous corresponding period) Profit before income tax expenses 112,297 95,684 (% change from the previous corresponding period) Profit 73,699 67,306 (% change from the previous corresponding period) Profit attributable to owners of the parent 68,562 62,975 (% change from the previous corresponding period) Comprehensive income 84,942 21,628 (% change from the previous corresponding period) Earnings per share attributable to owners of the parentbasic (yen) Earnings per share attributable to owners of the parentdiluted (yen) Profit on equity attributable to owners of the parent (%) Profit before income tax expenses on total assets (%) Operating profit on sales (%) Notes: i. Share of profit (loss) of investments accounted for using the equity method: 55 million ( 50 million in previous fiscal year) ii. Earnings per share attributable to owners of the parent (basic and diluted) are based on Profit attributable to owners of the parent. (2) Financial Position March 31, 2016 Total assets 2,730,207 2,776,461 Total equity 1,154,312 1,147,764 Equity attributable to owners of the parent 1,084,167 1,077,813 Equity attributable to owners of the parent ratio (%) Equity per share attributable to owners of the parent (yen) 1, , (3) Cash Flows March 31, 2016 Cash flows from operating activities 102,544 99,858 Cash flows from investing activities 143, ,138 Cash flows from financing activities 29,936 42,669 Cash and cash equivalents at end of year 137, , Dividend Information (Actual) March 31, 2016 (Actual) Year ending March 31, 2017 (Forecast) Cash dividends, applicable to the year (yen) Interim (yen) Yearend (yen) Total annual dividends (millions of yen) 24,647 25,371 Payout Ratio (%) Dividends on equity attributable to owners of the parent (%) Notes: Cash dividends for the year ending March 31, 2017 (forecast) are included ordinary dividends of and 80 th anniversary dividends of

4 3. Forecast of Operating Results from April 1, 2016 to March 31, 2017 Half year ending Year ending September 30, 2016 March 31, 2017 Sales 1,044,000 2,170,000 (% change from the previous corresponding period) Operating profit 36,000 77,000 (% change from the previous corresponding period) Profit before income tax expenses 34,000 72,000 (% change from the previous corresponding period) Profit attributable to owners of the parent 21,000 44,000 (% change from the previous corresponding period) Earnings per share attributable to owners of the parentbasic (yen) Others (1) Changes in significant subsidiaries: No (2) Changes in accounting policies and accounting estimate (i) Changes in accounting policies required by IFRS: Yes (ii) Other changes: No (iii) Changes in accounting estimate: No (3) Number of common stock outstanding (including treasury stock): As of March 31, 2016: 744,912,078 shares; As of : 744,912,078 shares (4) Number of treasury stock: As of March 31, 2016: 20,023,429 shares; As of : 20,011,200 shares (5) Average number of common stock: March 31, 2016: 724,894,027 shares; : 724,908,100 shares (Reference) Nonconsolidated information Results for the period from April 1, 2015 to March 31, 2016 (1)Operating Results March 31, 2016 Sales 923, ,016 (% change from the previous corresponding period) Operating profit 18,093 12,464 (% change from the previous corresponding period) Profit from ordinary operations 49,168 1,681 (% change from the previous corresponding period) 42.1 Profit 40,025 7,105 (% change from the previous corresponding period) Profit per sharebasic (yen) Profit per sharediluted (yen) (2) Financial Position March 31, 2016 Total assets 1,058,962 1,087,064 Total equity 593, ,562 Equity ratio (%) Equity per share (yen) *Equity capital March 31, 2016: 572,562 million : 593,174 million 4

5 1. Performance (1) Qualitative Information on Consolidated Business Results * Overview of the Year of Fiscal 2015 (April 1, 2015 March 31, 2016) Ricoh s consolidated sales for the Year increased by 2.7% as compared to the previous corresponding period, to 2,209.0 billion. During this period, the average exchange rates of the Japanese yen against the U.S. dollar and the Euro were (down from previous year) and (up 6.17 from previous year) respectively. Consolidated sales would have increased by 1.0% as compared to the previous corresponding period when excluding the impact of such foreign currency exchange fluctuation. The Japanese economy continued to maintain its gradual recovery by the improvement in corporate profits and labor market, but the unpredictable economy has been caused by strengthening of the yen and low stock price from the beginning of this year. Under such market conditions, as for the sales in the domestic market, sales in the Imaging & Solutions and the Industrial Products segment increased through the increase in sales of Network System Solutions and so on, but was offset by the sales decrease in the Other segment derived from sale of Sanai apparel business and so on. As a result, the sales in the overall domestic market increased by 0.3% as compared to the previous corresponding period. As for the overseas market, the U.S. economy continued to show a solid recovery, but the outlook of the overall global economy remains uncertain with the increasing European geopolitical risk and the continuous slowdown in the growth of the emerging markets including China. Even under such market conditions, in addition to the increase in the sales of color MFP models, the weak yen against U.S. dollar and the acquisition have contributed to the overall increase in Ricoh s overseas sales. As for overseas sales by region, sales in the Americas increased by 7.0% (a decrease of 2.1% excluding foreign currency exchange fluctuation), sales in Europe, Middle East and Africa decreased by 0.3% (an increase of 4.3% excluding foreign currency exchange fluctuation) and sales in Other region, which includes China, South East Asia and Oceania, increased by 5.6% (an increase of 5.1% excluding foreign currency exchange fluctuation). As a result, sales in the overseas market increased by 4.0% as compared to the previous corresponding period. Excluding effects of foreign currency fluctuations, sales in overseas would have increased by 1.4% as compared to the previous corresponding period. Although sales increased, gross profit decreased by 2.8% as compared to the previous corresponding period, to billion, due to unit price declines caused by the deteriorated market conditions and the intensification of market competition. Although groupwide activities to streamline costs have contributed in controlling selling, general and administrative expenses, these expenses have increased by 0.7% as compared to the previous corresponding period, to billion, due mainly to the weakening of the yen against U.S. dollar and acquisitions. Other income includes gains on sales of idle places and offices as a result of groupwide activities to streamline costs such as reorganization and integration of domestic sales bases. As a result, operating profit decreased by 11.6% as compared to the previous corresponding period, to billion. As for finance income and costs, foreign exchange loss increased as compared to the previous corresponding period. Profit before income tax expenses decreased by 14.8% as compared to the previous corresponding period, to 95.6 billion. As a result, profit attributable to owners of the parent decreased by 8.1% as compared to the previous corresponding period, to 62.9 billion. Comprehensive income decreased significantly as compared to the previous corresponding period, to 21.6 billion due to decrease in exchange differences on translation of foreign operations. 5

6 *Consolidated Sales by Product Line Imaging & Solutions Sales in the Imaging & Solutions segment which is comprised of the Office Imaging, Production Printing and Network System Solutions increased by 3.0% as compared to the previous corresponding period, to 1,974.5 billion. Office Imaging Sales in this category decreased by 0.5% as compared to the previous corresponding period, to 1,432.0 billion, due to the deteriorated market conditions and the intensification of market competition, the weakening of the yen against U.S. dollar, though sales of color MFP models increased in both the domestic and overseas market. Production Printing Sales in this category increased by 16.6% as compared to the previous corresponding period, to billion. The increase was achieved through the increase in sales of color cut sheet printers, along with the increase in sales of related parts & supplies and services in both the domestic and overseas market mainly European market. Network System Solutions Sales in this category increased by 11.8% as compared to the previous corresponding period, to billion. Overall sales in this category increased through the increase of the solution category sales and the business acquisitions in the overseas in spite of the rebound from the special demand for personal computers at the end of previous corresponding period in the domestic market. Industrial Products Sales in the Industrial Products segment increased by 6.5% as compared to the previous corresponding period, to billion due to increase in sales in the Thermal and Inkjet business. Other Sales in the Other segment decreased by 6.8% as compared to the previous corresponding period, to billion. Sales decreased in the camera business and due to sale of Sanai apparel business as compared to the previous corresponding period. * Consolidated Sales by Geographic Area Japan The Japanese economy continued to maintain its gradual recovery by the improvement in corporate profits and labor market, but the unpredictable economy has been caused by strengthening of the yen and low stock price from the beginning of this year. Under such market conditions, sales in the Imaging & Solutions and the Industrial Products segment increased through the increase in sales of color cut sheet production printers, but was offset by the sales decrease in the Other segment derived from sale of Sanai apparel business and so on. As a result, the sales in the overall domestic market increased by 0.3% as compared to the previous corresponding period, to billion. The Americas In the Americas, the economy continued its trend towards a sustained recovery seen through the decline in unemployment and the increase in personal consumption. Under such economic conditions, in addition to the weakening of the Yen against the U.S. dollar and the acquisition, the increase in sales of color cut sheet and the increase in aftersales service revenue in the Production Printing business have contributed to the increase in overall sales in the Americas by 7.0% as compared to the previous corresponding period, to billion. Sales in the Americas would have decreased by 2.1% as compared to the previous corresponding period, excluding the effects of foreign currency fluctuations. Europe, Middle East and Africa As for sales in Europe, Middle East and Africa, the European economy, which contributes most of the sales in this geographic area, continues to face an uncertain situation with the increasing geopolitical risk though it shows signs of a rally. Under such economic conditions, sales decreased due to the strengthening of the Yen against the Euro despite the increase in sales of color cut sheet and aftersales service revenue in the Production Printing business and sales of the Network System Solutions achieved through acquisitions. As a result, the overall sales in Europe, Middle East and Africa decreased by 0.3% as compared to the previous corresponding period, to billion. Sales in Europe, Middle East and Africa would have increased by 4.3% as compared to the previous corresponding period, excluding the effects of foreign currency fluctuations. Other The Other geographic area includes China, South East Asia and Oceania. The economy of the emerging markets including China showed the slowdown in growth sharply. Even under such conditions, the increase in sales of the Network System Solutions achieved through acquisitions have contributed to the increase in sales. As a result, overall sales in Other increased by 5.6% as compared to the previous corresponding period, to billion. The sales in this area would have increased by 5.1% as compared to the previous corresponding period, excluding the effects of foreign currency fluctuations. 6

7 *Segment Information Operating Segment Imaging & Solutions The increase in the sales of color MFP models and color cut sheet models in Production Printing, along with the weakening of the Yen against U.S. dollar, have contributed to the increase in overall sales in the Imaging & Solutions segment by 3.0% as compared to the previous corresponding period, to 1,974.5 billion, despite the rebound from the special demand for personal computers in the domestic Network System Solutions. As for operating profit, despite the increased sales and groupwide activities to streamline costs, operating profit decreased by 14.2% as compared to the previous corresponding period, to billion due to sluggish business environment and intensifying competition. Industrial Products Sales in the Industrial Products segment increased by 5.1% as compared to the previous corresponding period, to billion. The increased sales in thermal media and inkjet business in domestic and overseas have contributed to the overall sales in the Industrial Products segment. Operating profit increased by 72.2% as compared to the previous corresponding period, to 11.0 billion, due to increase in sales. Other Sales in the Other segment decreased by 6.8%, as compared to the previous corresponding period, to billion. The sales of camera business decreased as compared to the previous corresponding period due to sluggish business environment, in addition to sale of Sanai apparel business. Operating profit increased significantly as compared to the previous corresponding period, to 1.4 billion due to increase in profit of leasing business and so on (operating loss of 3.0 billion was incurred for the previous corresponding period). Geographic Segment Japan Even though MFP color machines and color cut sheet production printers increased, sales in the domestic segment decreased by 1.3% as compared to the previous corresponding period, to 1,258.9 billion due to the decrease of export sales by fiercer competition and the sale of Sanai apparel business. Operating profit decreased by 40.0% as compared to the previous corresponding period, to 31.0 billion due to the decrease in sales despite the contribution of groupwide restructuring activities The Americas The weakening of the Yen against U.S. dollar, acquisition and the growth of color cut sheet production printers and after sales have contributed to the increase in overall sales in the Americas segment by 6.7% as compared to the previous corresponding period, to billion. Unit price declines due to the worsening market situation and the impact of fiercer competition have resulted in the decrease in operating profit by 6.4% as compared to the previous corresponding period, to 18.4 billion despite the increase in sales. Europe, Middle East and Africa Sales in the Europe, Middle East and Africa segment decreased by 0.4% as compared to the previous corresponding period, to billion due to the strengthening of the Yen against Euro despite the growth of color cut sheet production printers and Network System Solutions by acquisition. Operating profit increased by 13.8% as compared to the previous corresponding period, to 24.2 billion due to the effect of the business restructuring in operating expenses in spite of the decrease in sales. Other Business acquisition along with the strengthening of the sales structure in the emerging market has contributed to the increase in overall sales in the Other segment by 2.9% as compared to the previous corresponding period, to billion. Operating profit decreased by 1.8% as compared to the previous corresponding period, to 28.6 billion. 7

8 *Forecast for the coming fiscal year Economic projections and Ricoh's strategies for year ending March 31, 2017 The global outlook remains unpredictable with the continuous slowdown in the growth of the emerging markets including China, turmoil in the financial markets and decline in resource prices, though the U.S. economy continued to show a solid recovery. Under such economic conditions, Ricoh expects to maintain sustainable growth from the increased sales competitiveness and profitability achieved, creating new profit generators and through the groupwide activities implemented to streamline costs. Furthermore, in order to maintain longterm sustainable growth, the Ricoh will focus on the following initiatives: 1. Reinforce and develop earnings power for core businesses (Office Imaging) 2. Achieve growth by creating new profit generators Our performance forecast for fiscal year ending March 31, 2017 is as follows: Exchange Rate Assumptions for the full year ending March 31, 2017 US$ 1 = ( in previous fiscal year) EURO 1 = ( in previous fiscal year) (Billions of yen) Year ending March 31, 2016 March 31, 2017 (Forecast) Change Domestic sales % Overseas sales 1, , % Sales 2, , % Gross profit % Operating profit % Profit before income tax expenses % Profit attributable to owners of the parent % * The results forecasts and forwardlooking statements included in this document are based on information available to the Company as at to date and certain assumptions that the Company considers reasonable. The Company makes no guarantees with respect to the achievement of its results forecasts or forwardlooking 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. 8

9 (2) Financial Position A) Assets, Liabilities, and Equity at YearEnd (Billions of yen) March 31, 2016 Change Total assets 2, , Total equity 1, , Equity attributable to owners of the parent 1, , Equity attributable to owners of the parent ratio (%) points Total assets increased by 46.2 billion as compared to the previous corresponding period, to 2,776.4 billion, mainly due to the increase in other financial assets including lease receivables. Total liabilities increased by 52.8 billion as compared to the previous corresponding period, to 1,628.6 billion, mainly due to the increase in bonds and borrowings to meet the demand for working capital along with the increase of lease receivables. Total equity decreased by 6.5 billion as compared to the previous corresponding period, to 1,147.7 billion, mainly due to the decrease in other components of equity. B) Cash Flows (Billions of yen) March 31, 2016 Change Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of year Net cash provided by operating activities decreased by 2.6 billion as compared to the previous corresponding period, to 99.8 billion, mainly due to the decrease in profit. Net cash used in investing activities decreased by 39.3 billion as compared to the previous corresponding period, to billion, mainly due to the increase in proceeds from sales of property, plant and equipment. Net cash provided by financing activities increased by 12.7 billion as compared to the previous corresponding period, to 42.6 billion, mainly due to the decrease in repayments of longterm debt. As a result, the balance of cash and cash equivalent at the end of year increased by 29.8 billion as compared to the end of previous year, to billion. C) Cash Flow Indices March 31, 2014 March 31, 2016 Equity attributable to owners of the parent / Total assets 39.6% 39.7% 38.8% Market capitalization / Total assets 33.2% 34.7% 29.9% Interest bearing debt / Operating cash flow Operating cash flow / Interest expense Notes: i. All indices are calculated based on consolidated data. ii. Operating cash flows is shown in consolidated statement of cash flow. Interest bearing debt includes all debt in which a fee is charged for the liability. 9

10 (3) Dividend Policy Ricoh endeavors to ensure that policies are regularly updated to take the dividend payout ratio into consideration in the payment of dividends, while at the same time increasing retained earnings for the enhancement of corporate structure and for new business generation. Specifically, we will take the continuous increase dividend payout in the consolidation dividend payout ratio range from 30% to 50%. Furthermore, these retained earnings will be used both in the reinforcement of core businesses and for investment in new fields with both mediumterm and longterm perspectives. The total dividend per share for the fiscal year ended March 31, 2016 will be Our 80 th yearly anniversary was February 6, The total dividend per share for the fiscal year ending March 31, 2017 will be higher than the previous fiscal year as our anniversary dividends, to (4) Risk Factors Risks that may affect Ricoh's financial results and financial position are listed below, but are not limited to them. Ricoh's business may in the future also be affected by other risks that are currently unknown or that are not currently considered significant or material. Ability to respond to rapid technological changes Highly competitive markets Global business operations Economic outlooks in major markets Foreign exchange rate fluctuations Procurement of parts and materials Government regulations Protection of intellectual property rights Securing and retaining skilled personnel Employee benefit obligations Environmental laws and regulations Financing business Product Liability Alliances with other entities, joint ventures and strategic investment Information security Influence of disasters or other unpredictable events 10

11 2. Group Position Ricoh comprises 219 subsidiaries and 11 affiliates as of March 31, Their development, manufacturing, sales, and service activities center on Imaging & Solutions, Industrial Products, and Other. Ricoh Company, Ltd., a parent company, heads development. The parent company and subsidiaries or affiliates maintain an integrated domestic and international manufacturing structure. Below, Ricoh has listed its main product areas and the positions of key subsidiaries and affiliates. <Imaging & Solutions> In this business category, Ricoh provides products and systems that support the enhancement of the office productivity of customers. Major products include: MFPs (multifunctional printers), copiers, laser printers, and production printers. Ricoh also provides solution systems including personal computers and servers, utilizing its information technology. Another business Ricoh also provides are support, service, and related supplies, as well as support and service including IT environment setup and network administration. [Main Subsidiaries and Affiliates] Manufacturing Japan... Hasama Ricoh Inc., Ricoh Industry Co., Ltd. and Ricoh Elemex Corporation The Americas... Ricoh Electronics, Inc. Europe... Ricoh UK Products Ltd., Ricoh Industrie France S.A.S. Other regions... Shanghai Ricoh Digital Equipment Co., Ltd., Ricoh Asia Industry (Shenzhen) Ltd., Ricoh Components & Products (Shenzhen) Ltd. and Ricoh Manufacturing (Thailand) Ltd. Sales and Service Japan... Ricoh Japan Corporation, Ricoh Leasing Co., Ltd., Ricoh Logistics System Co., Ltd. and Ricoh IT Solutions Co., Ltd., The Americas... Ricoh Americas Holding, Inc., Ricoh Americas Corporation, Ricoh Canada Inc., Ricoh USA, Inc. and mindshift Technologies, Inc. Europe... Ricoh Europe Holdings PLC, Ricoh Sverige AB, Ricoh UK Ltd., Ricoh Deutschland GmbH, Ricoh Nederland B.V., Ricoh Europe SCM B.V., Ricoh Belgium NV, Ricoh France S.A.S., Ricoh Schweiz AG, Ricoh Italia Srl. and Ricoh Espana S.L.U. Other regions Ricoh China Co., Ltd., Ricoh Asia Industry Ltd., Ricoh Asia Pacific Operations Ltd., Ricoh Hong Kong Ltd., Ricoh India Ltd., Ricoh Thailand, Ltd., Ricoh Asia Pacific Pte Ltd. and Ricoh Australia Pty, Ltd. <Industrial Products> Manufacturing and marketing thermal media, optical equipments, semiconductors, electronic component and Inkjet head. [Main Subsidiaries and Affiliates] Manufacturing and Sales Japan... Ricoh Industrial Solutions Co., Ltd. and Ricoh Electronic Devices Co., Ltd. The Americas... Ricoh Electronics, Inc., Ricoh Printing Systems America,Inc. Europe... Ricoh Industrie France S.A.S. Other regions Ricoh Thermal Media (WUXI) Co.,Ltd. <Other> Supplying digital camera, and providing leasing and logistics services [Main Subsidiaries and Affiliates] Manufacturing Ricoh Imaging Products (Philippines) Corporation Sales Ricoh Imaging Americas Corporation and Ricoh Imaging Europe S.A.S Other Ricoh Leasing Co., Ltd., Ricoh Logistics System Co., Ltd. and Ricoh Imaging Co., Ltd. and Ricoh Creative Service Co., Ltd. <Chart of Business System> The following chart is showing the group positions. 11

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13 3. Management Policy (1) Basic policies Aiming to be the most trusted brand with irresistible appeal in the global market, Ricoh Group is charged with its mission At the Ricoh Group, we are committed to providing excellence to improve the quality of living and to drive sustainability. For this to be possible, we hold and implement our value of "dedicating our winning spirit, innovation and teamwork to sharpen our customer centric focus, and we also must commit to the highest standards of ethics and integrity. Accordingly we strive to provide innovative products and services. (2) Medium to longterm management strategies As for the market of the Imaging & Solutions business, which stands at the center of Ricoh Group businesses, it has changed drastically and the earnings environment of the industry as a whole has been deteriorating. To respond to changes in the business environment and continue to provide new values perpetually, we formulated the 18th MidTerm Management Plan effective from April 2014 to March First we specified our goal as "an environmentally friendly company that makes customers feel 'confident, comfortable, and convenient' while exceeding their expectations and to support lifestyle transformation" by envisioning the year of 2020 and the future beyond. Also, the 18th MidTerm Management Plan was defined as a period of realizing our goal and as three years to ensure Ricoh Group's longterm growth. Accordingly we are committed to the three fundamental objectives, namely, "actionable strategies", "management systems", and "transformation". Especially for actionable strategies, we have specified two basic strategies to "1, Reinforce and develop earnings power for core businesses (Office Imaging)" and "2, Achieve growth by creating new profit generators". For "1, Reinforce and develop earnings power for core businesses (Office Imaging)", we have identified an action plan of "reinforcing earnings power in developed countries" and "creating new profit generators in emerging markets and services businesses". To "2, Achieve growth by creating new profit generators", we have identified an action plan of "creating profit generators in commercial printing, industrial, and consumer businesses" and of "creating new businesses by leveraging Ricoh Group's core assets". Actionable strategies: 1, Reinforce and develop earnings power for core businesses (Office Imaging) In the MFP market we released three new A4 monochrome models and one new A4 fullcolor model. "RICOH MP 401 SPF" and "RICOH SP 4510SF" are A4 monochrome MFPs that, in addition to high productivity, support various extended functions such as personal identification or access to various applications via the cloud, allowing users to place them close to their desks. Adopting a new mechanism for the drawing part, the main unit of "RICOH SP 3610SF" has become not as tall as that of conventional models. Also, installed with the one path duplex scanning ADF, it realizes operational efficiency. With the compact body appearance, "RICOH MP C306 series" of a A4 fullcolor MFP has attained high productivity, enabling simplex and duplex copying/printing at the same speed of 30 pages per minute (A4 portrait). Also, cooperating with optional personal authentication systems and other various solutions, it provides services that are the same with those A3 models provide. Using these A4 MFPs as dispersion machines, we will introduce them for shops in the retail business or distribution business and each section of large and middlesize business offices. As for printers, we released "RICOH SP C740" a new LEDtype A3 color printer. While the size of the printer is compact so that it can be installed close to desks in offices, on shop counters, and in various places, the productivity of the printer is high, contributing to improving business efficiency. Also, as a new A3 monochrome printer, we released "RICOH SP 6450". Equipped with a sorting mechanism at the paper ejecting part so that preventing output prints from being taken wrongly is attained, this product allows us to promote its adoption by customers with high needs for security such as counter services in public offices or medical institutions. In addition we released three new A4 monochrome models, expanding our product lineup. As part of growth in the office imaging business, we acquired two affiliates of IMPROMAT in Czech Republic and Slovakia, which is a distributing company of office devices in Eastern Europe. By further reinforcing the cooperation of the specialty of the locally rooted distributing company and Ricoh's products and services, we provide customers with higher quality services and added values. Regarding approaches to emerging markets, as part of approaches from the environmental management intended to attain environmental conservation and profit generation at a time, we started a recycling MFP business in China. We are the first among MFP manufacturers to have obtained permission to import used MFPs into China and manufacture recycled MFPs, expanding the recycling MFP business we have cultivated in developed markets. Also, in the wake of rising environmental consciousness in the Indian market, regarding MFPs and printers sold in India, we have become the first to complete the registration of 35 models rated as Silver products, responding to EPEAT (Electronic Product Environmental Assessment Tool), an environmental verification system aiming at the market development and sales promotion of environmentally conscious products. In services businesses, as a new service added to the IT service menu "ITKeeper" in Japan, we released a "remote network service" to build, maintain, and manage the customer's network environment safely and flexibly. For smalltomediumsized enterprises finding it difficult to recruit a fulltime inhouse IT administrator, in addition to providing integrated security features and wireless access points, we remotely change settings of network devices, conduct monitoring and failure recovery. Also, as a new service, we will release a "cloud service for server security", a cloudtype security measure service, providing a security measure that enables us to respond to various environments. For visual communication, we released "RICOH Interactive Whiteboard D6500", supporting ICT utilization based on the electronic white board specialized in features needed for classrooms such as a large 65inch screen, reflectionpreventive processing, and association with educational applications. Also, we released highend projectors "RICOH PJ WUL6280/WXL6280" adopting a laser light source for the first time as Ricoh products, responding to needs in large halls or lecture halls in educational facilities or large meeting rooms in enterprises by providing high functionality and a variety of replacement lenses. In the Production Printing business we released new color production printers "RICOH Pro C9110/C9100". As the flagship models of Ricoh's color print ondemand machines, those models have realized the top quality, papersize compatibility, and productivity in the product lineup, enabling the production of various prints such as packages, POP displays, catalogs, book covers, banners and so on. Also, we released Ricoh developed printer controllers "TotalFlow Print Server R60/R60A", providing excellent performance for a variety of needs by responding to highvalue added printing such as small lot multikind ondemand printing and variable printing, which is the requirement of the commercial printing market. 13

14 Actionable strategies: 2, Achieve growth by creating new profit generators In the Industrial business, we established in Indonesia a new company engaged in processing and sales of thermal transfer ribbons, enabling the provision of locally required sizes for industrial purposes, food or logistics industries and products with high environment resistance characteristics by locally processing thermal transfer ribbons for barcode labels whose business expansion is expected as consumption increases. In the 3D printer business we started to release new 3D printrelated services for manufacturing scenes "RICOH Advanced Direct Manufacturing Services", making customers' parts or products on the spot by utilizing experts and multiple 3D printers at RICOH Rapid Fab in Atsugi in Kanagawa Prefecture. Further, releasing the first Ricoh brand 3D printer "RICOH AM S5500P", we realize package molding of large parts to support highperformance materials. Also, as a new business, in order to enter the industrial laser beam machine business, we released a laser patterning machine for functional films "RICOH LA1100". This machine makes it possible to significantly improve production efficiency by utilizing Ricoh's picosecond laser technology for laser processing of functional polymeric films that are used for touch panels and so on. In the industrial printing market that will expand in the future, we will reinforce and expand the inkjet printing business. Through Ricoh's printing technology and strategic alliance with other companies, we will manufacture highprecision and highly efficient industrial inkjet printing systems, providing in the future new values for customers in various industries such as construction materials, interior, housing equipment, and automobile interior industries. In addition, we acquired AnaJet, a company to manufacture and sell Direct to Garment printers to directly print on garments such as Tshirts, so that we provide new added values to customers such as major clothing producers, printing companies, and apparel shops. In the camera business, as the higher model of an image input device "RICOH THETA" that allows photographers to perform oneshot shooting for the spherical image around them, we released "RICOH THETA S" to respond to high precision still images, high quality movie shooting, and live view functions, satisfying not only requests from users demanding higher resolution image quality but also high requirements for increasing business purposes, which has won popularity. Also, as the successor to "GR" that many fans enjoy using, we released "GR II" newly adopting WiFi features and the NFC features that enable easy pairings with mobile terminals, making it a model that users can enjoy in various scenes by widening the range of usability and shooting expression. Additionally, as approaches to new businesses, we are headed for commercializing businesses in urbanization and healthcare. For the urbanization business we opened at the west exit of Ebina Station in Kanagawa Prefecture the commercial facility "RICOH Future House" with its concept "a place where people gather, learn, grow, and create the future", proposing comfortable living environments and supporting business management. For the healthcare business we took over the magnetoencephalograph business from Yokogawa Electric Corporation and intend to accelerate the R&D and business development of the image diagnosis system business in the future that includes development of biomagnetisim measuring apparatus (magnetospinography) to visualize biomagnetism produced by nerve activities. (3) Issues to be resolved The world economy has been witnessing falling stock prices in developed markets since the beginning of this year, and the longterm interest rate declined to the historically low level. The prices of crude oil and other primary products as a whole have dropped to extremely low levels. On the other hand, the yen was considered to be a safe currency, it has been appreciated in the foreign exchange market. Among developed markets, while the US economy has continuously been expanding moderately, the EU is saddled with various economic and geographic risks, and gradually increasing downward pressures have been exerted on commodity prices. Also among emerging economies the Chinese, Russian, and Brazilian economy has been slowing down, however other Asian country economy are still expanding. In Japan enterprises have been more emphasizing strategic investment resulting in the companies' improved performance and/or new business generation than investment for rationalization aiming for cost reduction and/or operational efficiency. In those changes in the environment, Ricoh Group concentrates on the following three points as issues to be resolved. 1. Further reinforce the Office Imaging business In office imaging businesses we release new, unprecedentedly attractive products and continue to offer new customer value. Then we will keep our No.1 market share in A3 MFP market in the world. Further not only reducing product costs, we also optimize sales and support structures, improving profitability. Among them, from regional perspectives, market competition in America has become harsher, so we reinforce the provision of added values to meet the customers' business characteristics. In network system solution businesses, while we have been expanding services businesses as we planned. In addition, while each Region has been expanding business areas through M&A and so on, conducting streamlining is mandatory as there are still overlaps in infrastructure and so on. Since the previous fiscal year, we have been standardizing service menus and infrastructures globally, promoting approaches to further enhance profitability. For the production printing business in the commercial printing market, in addition to the expansion of the product lineup, we have developed structures to provide onestop support for a series of processes from sales promotion planning to documentation and production of advertising media and sales promotion materials. In the future, utilizing the knowhow of Ricoh as a manufacturer, we improve business processes of customers in the printing business. 2. Further accelerate the growth of new businesses In growth and new businesses we aggressively focus investment on the targeted areas to ensure business growth. We intend to expand the industrial printing business with IJ technology as its core. The value that printing provides has been increasing in the industrial printing market where printing is performed on industrial products and other media other than paper. Utilizing the technology we have developed in sales of inkjet heads for many years, we widen through open innovation the range of values provided from ink head modules to printing systems. We also released new products in industry and other business area. Then we should need to sell these products more by using our strength of selling power. 3. Reinforce the management structure for further transformation Without losing momentum in the reinforcement of the management structure that we have been engaged in to date, by stabilizing and reinforcing activities to improve productivity in all functions such as selling, development, production, procurement, headquarters and so on and to contribute to profit, we proceed to create a robust management base that is not affected by changes in the external environment. In addition we start to reinforce governance from this fiscal year. Even in the severe business environment, we conduct business management that conforms to The RICOH Way and further reinforce management transparency. 14

15 Finally, in order for Ricoh Group to survive permanently, we need to continue to provide society with new customer values while adapting to environmental changes. We continuously strive to create customer value from three aspects of being "confident", "comfortable", and "convenient". Looking at the future of customers and society, we imagine our ideal, and to realize it, we implement transformations that we ought to perform now. 4. 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. 15

16 5. Consolidated Financial Statements (1) Consolidated Statement of Financial Position Assets March 31, 2016 Change Current Assets Cash and cash equivalents 137, ,547 29,825 Time deposits Trade and other receivables 553, ,204 10,670 Other financial assets 260, ,347 12,291 Inventories 224, ,092 17,389 Other current assets 39,662 61,032 21,370 Total Current Assets 1,216,382 1,273,195 56,813 Noncurrent assets Property, plant and equipment 276, , Goodwill and intangible assets 435, ,836 21,916 Other financial assets 601, ,171 18,374 Investments accounted for using the equity method Other investments 58,237 67,084 8,847 Other noncurrent assets 44,119 38,905 5,214 Deferred tax assets 96,853 85,784 11,069 Total Noncurrent Assets 1,513,825 1,503,266 10,559 Total Assets 2,730,207 2,776,461 46,254 Liabilities and Equity March 31, 2016 Change Current Liabilities Bonds and borrowings 222, ,755 38,690 Trade and other payables 276, ,123 9,137 Other financial liabilities 1,800 1, Income tax payables 13,683 15,220 1,537 Other current liabilities 257, ,950 14,655 Total Current Liabilities 772, ,868 34,729 Noncurrent Liabilities Bonds and borrowings 568, ,045 23,530 Other financial liabilities 1,537 3,745 2,208 Accrued pension and retirement benefits 144, ,049 5,104 Other noncurrent liabilities 84,721 82,392 2,329 Deferred tax liabilities 4,830 4, Total Noncurrent Liabilities 803, ,829 18,073 Total Liabilities 1,575,895 1,628,697 52,802 Equity Common stock 135, ,364 Additional paidin capital 186, , Treasury stock 37,295 37, Other components of equity 153, ,914 38,633 Retained earnings 646, ,424 31,956 Equity attributable to owners of the parent 1,084,167 1,077,813 6,354 Noncontrolling interests 70,145 69, Total Equity 1,154,312 1,147,764 6,548 Total Liabilities and Equity 2,730,207 2,766,461 46,254 16

17 (2) Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income Consolidated Statement of Profit or Loss and 2016 March 31, 2016 Change % Sales 2,151,404 2,209,028 57, Cost of sales 1,244,486 1,327,064 82, Percentage of sales (%) Gross profit 906, ,964 24, Percentage of sales (%) Selling, general and administrative expenses 794, ,406 5, Percentage of sales (%) Other income 2,861 19,737 16, Percentage of sales (%) Operating profit 115, ,295 13, Percentage of sales (%) Finance income 3,963 5,091 1, Percentage of sales (%) Finance costs 7,381 11,757 4, Percentage of sales (%) Share of profit (loss) of investments accounted for using the equity method Percentage of sales (%) Profit before income tax expenses 112,297 95,684 16, Percentage of sales (%) Income tax expenses 38,598 28,378 10, Percentage of sales (%) Profit 73,699 67,306 6, Percentage of sales (%) Profit attributable to: Owners of the parent 68,562 62,975 5, Percentage of sales (%) Noncontrolling interests 5,137 4, Percentage of sales (%) March 31, 2016 Change Earnings per share attributable to owners of the parentbasic (yen) Earnings per share attributable to owners of the parentdiluted (yen) * Gain on sales of property, plant and equipment and others are included in other income. Prior year comparative figures have also been adjusted to conform to the current year presentation. * The compilation method has been changed from this fiscal year such as part of the lease transactions are shown in net basis instead of gross basis. Prior year comparative figures have also been adjusted to conform to the current year presentation. 17

18 and 2016 Three months ended March 31, 2015 Three months ended March 31, 2016 Change % Sales 579, ,172 14, Cost of sales 352, ,951 3, Percentage of sales (%) Gross profit 227, ,221 18, Percentage of sales (%) Selling, general and administrative expenses 198, ,175 4, Percentage of sales (%) Other income 441 1,789 1, Percentage of sales (%) Operating profit 29,676 16,835 12, Percentage of sales (%) Finance income 982 1, Percentage of sales (%) Finance costs 3,262 3, Percentage of sales (%) Share of profit (loss) of investments accounted for using the equity method Percentage of sales (%) Profit before income tax expenses 27,415 14,501 12, Percentage of sales (%) Income tax expenses 10,606 2,660 7, Percentage of sales (%) Profit for the period 16,809 11,841 4, Percentage of sales (%) Profit attributable to: Owners of the parent 16,211 11,560 4, Percentage of sales (%) Noncontrolling interests Percentage of sales (%) March 31, 2016 Change Earnings per share attributable to owners of the parentbasic (yen) Earnings per share attributable to owners of the parentdiluted (yen) * Gain on sales of property, plant and equipment and others are included in other income. Prior year comparative figures have also been adjusted to conform to the current year presentation. * The compilation method has been changed from this fiscal year such as part of the lease transactions are shown in net basis instead of gross basis. Prior year comparative figures have also been adjusted to conform to the current year presentation. 18