RICOH
Resurgent
19th Mid-Term
Management Plan

April 12, 2017

Yoshinori Yamashita
President and CEO

Ricoh Company, Ltd.
©2017 Ricoh Company, Ltd. All Rights ReservedRicoh Resurgent Steps

Break from past management approaches
Reviews casting aside traditions and precedents that hamper growth

1. Reform cost structure
Drive structural reforms from top down

2. Prioritize growth businesses centered on
our strengths
Focus on growth businesses that leverage strengths andthoroughly deploy winning strategies

3. Implementation that produces results andaccountability
Present results and rebuild trust with all stakeholders©2017 Ricoh Company, Ltd. All Rights Reserved

1

RICOH Resurgent Financial Targets

Structural reform savings: More than ¥100 billion
Fiscal 2019 operating profit: More than ¥100 billion
Total FCEF* over three years: More than ¥100 billion*Free cash flow excluding finance business©2017 Ricoh Company, Ltd. All Rights Reserved

2

The Ricoh Group's Trajectory〜1990〜2007〜2016

Amassed machines in field,
centered on domestic market,
establishing after service
earnings model

Rolled out domestically
successful models
overseas by acquiringsales channels

Covered slowdown in A3 MFP marketthrough sales and service for A4
MFPs and laser printers, butearnings and margins declined¥bilService provider
acquisitions

OPM

12%
11%10%10%

2,000

9%
A4 MFP/laser printer unit sales
increases

8%
7%
6%

1,000

Operatingmargin

4%
3%

Sales

05%
5%

2%

Operatingprofit

1%
0%
0%-1%

©2017 Ricoh Company, Ltd. All Rights Reserved

3

The Ricoh Group's Trajectory
〜1990

〜2007

Amassed machines in field,
centered on domestic market,
establishing after service
earnings model

Rolled out domestically
successful models
overseas by acquiring
sales channels¥bil〜2016
Covered slowdown in A3 MFP market
through sales and service for A4
MFPs and laser printers, butearnings
and margins
Marketshare
pursuitdeclined

Ricoh Five Major

MIF expansion
Service provider
acquisitions

Principles
2,000

Full lineup

Predicated on
Market Expansion

Direct sales and service

A4 MFP/laser printer unit sales
increases

In-house manufacturing

OPM

12%
11%
10%
10%
9%
8%
7%
6%

1,000

Operatingmargin

4%
3%

Sales

05%
5%

2%

Operatingprofit

1%
0%
0%-1%

©2017 Ricoh Company, Ltd. All Rights Reserved3Situation for Ricoh's Current CoreBusinesses
2008 to 2016

Outlook for 2017 and beyond•

A3 MFP market growth slowed, partly
because of Global Financial Crisis•

A4 MFP and laser printer markets
expanded•

From 2014, proportion of color models
declined from peak, greatly affecting
performances of all players

Ricoh's performances and projections•

With overall unit demand flat, prices
continuing to trend down for hardware andafter service amid price competition to securemachine in field•

With color model penetration peaking, hard
to expand scale through black-and-white tocolor shift•Working patterns diversifying with spread ofmobile devices and infrastructure. Plunging
paper use hampering after service earnings

2008(2,000)©2017 Ricoh Company, Ltd. All Rights Reserved2016

2019

Risk4

Overhaul Five Major Principles Approach
Ricoh's Five Major Principles
Market share pursuit

MIF expansion

Full lineup

Structural principles that have underpinned scale expansion

In-house manufacturing

Direct sales and service

Development and production

Management targets that have supported sales expansion and product strategy principles

Overhaul our approach,emphasizing profitability©2017 Ricoh Company, Ltd. All Rights Reserved

5Basic Ricoh Resurgent Plan
Basic Resurgent Plan

Ricoh management to date

Structural reforms

１

Despite having not earned
profits as originally planned,
we did not make a decision towithdraw businesses.

ⅰⅱ

Even in such growth areas as services andproduction printing, we failed to think out
customer needs, our strengths, andⅲ
competitive strategies, and ended up
merely dabbling a little in everything

Ambiguous responsibility, role,
and authority for somebusinesses & functions

ⅳ

Drive a resurgence by breaking from the past

We postponed a fundamental
overhaul in the cost structure of
our core business•

Cost structural & process reforms•

Increase business selectivity

Prioritize growth businesses

２•

Deploy strategies centered on our strengths

Reinforce our management
systems

３•

Execute structural reforms and deploy
business strategies

Our Value Proposition
for the future•

An essential company for customers andsociety©2017 Ricoh Company, Ltd. All Rights Reserved6

Risk Scenarios for Resurgence
Formulating plans that assume a possible operating loss
in fiscal 2019 just by maintaining improvement efforts to date

Office machine and after service prices keep falling
Decrease of in-house transaction printing

FY 2016

operating profit
forecast

Risk scenario
FY 2019

operating loss

USD ¥106EURO ¥117©2017 Ricoh Company, Ltd. All Rights Reserved

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Resurgence: Earnings Revival Plan

Fiscal 2019 Operating profit (change)

Earnings Revival Plan
Furtherimprovement

FY16
forecast
FY19
Risk scenario

Gains from structural reforms+Earnings contributions fromgrowth businesses¥100bil

Structuralreforms¥100bilsavings©2017 Ricoh Company, Ltd. All Rights Reserved8

1. Structural Reforms

RICOHResurgent©2017 Ricoh Company, Ltd. All Rights Reserved9

Structural Reforms in line with
Strategic Shift
Move away from thinking of structural reforms in cost-cutting terms andlook to change corporate earnings structure in keeping with strategic shift
Through 18th MTP

From 19th MTP

Deployments based onleadership strategies

Transform corebusiness strategies

Transform earnings andbusiness structures• Omnidirectional strategy• Scale (volume) emphasis• Vertical integration• Growth domain shifts• Emphasis on profitability• Flexible operations• Improve breakeven points• Boost free cash flow
• Reinvest in growth businesses

Market share pursuit

Prioritize profits over scale
expansion

MIF expansion

Price control
Reduce unprofitable deals & MIF

Full lineup

Optimize structure in linewith strategic shift

Direct sales and service
In-house manufacturing

Reduce fixed costs and make themmore variable
Cut development, production, andsales costs
Enhance asset efficiency©2017 Ricoh Company, Ltd. All Rights Reserved

Improve margins andtransform profit structureof core businesses

Allocate funds to growthareas and change
business structure
10Projected cost reductions of structuralreforms under 19th MTP
2017
Plan2018
Plan

2019
Plan1. Cost structurereforms

283745

2. Businessprocess reforms

113955

Total reductions fromfiscal 2016

3976100

Billion¥Billion¥Billion¥Billion¥Billion¥Billion¥Billion¥Billion¥Billion¥Considering moving forward ofmeasures to get the effect earlier

1. Transform and trim cost structure
Transform structure and reform fixed cost structure to tackle changes in the market climate

2. Reform business processes
While reforming the cost structure, review processes from scratch and seek to constrain costs
while maintaining sales and enhancing productivity©2017 Ricoh Company, Ltd. All Rights Reserved

11Structural Reform ApproachStrategic switch

Reform thrust
1. Cost structure reforms

Review in-house manufacturing focus

fromBusiness scale
expansion
toEmphasize
profitability

Consolidate production network and redefine roles ofsites in consumption areas --> (a)Cut development costs by paring down models
to be created in-house

Revamp direct sales and service

Optimize dealer and direct sales structure for SMB in
North America --> (b)Trim headquarters and backyard operations

2. Business process reforms that boost productivity
fromExpansionary strategy
dabbling in everything
toPrioritize businesses
from profitability
perspectives

Enhance productivity by expanding global sharedservices
Improve maintenance processes through more models
employing new capabilities --> (c)Broaden cost reductions through more automatedmanufacturing, etc.

3. Extensive business selectivity

Leave no stones unturned in screening businesses
Improve profitability by overhauling office services
Impairment losses in traditional camera business
Clarify criteria for shutting down, maintaining, andinvesting in businesses and services©2017 Ricoh Company, Ltd. All Rights Reserved12(a) Consolidate production network and redefineroles of sites in consumption areas
Review production site strategy

Sites slated for consolidation under
19 th Mid-Term Management Plan(as of April 2017)

Review in-house manufacturing focus
Build production system leveraging external partners
Consolidate production sites by change MIF
expansion strategy and paring down models
developed in-house
Redefine roles of sites
Shift away from production site to sales andbusiness development base with customers(Customer Experience Center)
Concentrate domestic recycling center
operations at Ricoh Eco Business Development
CenterRicoh UK Products(to become businessdevelopment site)

RicohElectronics

Key production units in core businesses

Boost productivity through businessprocess reforms
Broaden cost reductions through more automation
Cut labor costs through optimizing andstreamline indirect expenses
Improve quality and lower failure costs byeliminating reliance on skills of individuals
Streamline backyard operations and boost
productivity by consolidating operations globally

Ricoh Industry
Saitama

2016

2017

Japan

６５Overseas

８７

14

12Total©2017 Ricoh Company, Ltd. All Rights Reserved

2019
Redefine
Roles of Sites・Production
・Business development
・R&D13

(b) Structural reform in North America

Structural reform initiatives

Projected impacts

Review direct sales and service
Optimize dealer and direct sales structure for SMB
Reinforce collaboration with dealers
Leverage inside sales to boost operational
productivity

Savings

FY17plan

FY19plan¥20bil¥35bilBoost productivity throughbusiness process reforms
Trim back office headcount
Reduce headquarters and backyard personnel
numbers that grew by expanding businesses
Liquidate unprofitable service sites
Review service businesses in line withstrategic switch to focus on profitability©2017 Ricoh Company, Ltd. All Rights Reserved

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(c) Improve maintenance processes through moremodels employing new capabilities
Enhance customer service levels and service productivity
through more models employing new capabilities
Process reform initiatives

Service engineer on-site numbers target
ServiceProductivity
Improvement

Service engineer productivity
improvement
Automatic remote system software update
by MFP
Cloud-based easy profile transition from oldmachine to new machine

Call center productivity
improvement
Customers can solve problems themselvesby displaying troubleshooting guidance on
the operation panel.
Support customer's operation remotely fromcall center

Model A
Model B
Model C2013 14©2017 Ricoh Company, Ltd. All Rights Reserved1516171819 2020
2020(FY)

15

2. Prioritize Growth Businesses

RICOHResurgent©2017 Ricoh Company, Ltd. All Rights Reserved

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Prioritizing Growth Businesses
Grow by redefining and prioritizing our strengths
Leverage open innovation and concentrated investments
to reinforce growth capabilities

Non-printing offerings

Knowledge creation
support Offices

Expand value provided to office customers

SI-CloudStrength: Office customer base of 1.3 million companies and4 million machines in field

CS／BPS

Printing

Expand value providers by applying printing
technologies

Structuralreforms

ITS

CommercialStrength: Printing technologies (optics,printing
mechatronics, and chemicals, etc.)
3D printing
Industrial
MFP/LP
Bio printingprinting(core businesses)
Thermal media (laser printing)
OfficeNon-Office customers©2017 Ricoh Company, Ltd. All Rights Reserved17

Expand value provided to officecustomers
Strength: Office customer base of 1.3 million companies
and 4 million machines in field
Provide solutions that help enhance customer productivity
and enterprise value

SI-CloudBPS
CS

Provide workflow solutions platform leveraging customer
base and MIF, then providing solutions to customers withpartners
Combine our edge devices and A.I. to provide
communication support for customers and enhancetheir productivity©2017 Ricoh Company, Ltd. All Rights Reserved18

Expand value providers by applying
printing technologies
Strength: Printing technologies(optics, mechatronics, and chemicals, etc.)
Support customer value creation with
Print to Everything printing technology

O to D

Contributing to improve productivity of printing firm customer
value chains by providing hardware and workflow solutions

Industrial printing
Imaging systems
industrial printers

Provide IJ-based imaging systems and printers enabling digitalon-demand printing for various media at production sites

Thermal media
Laser printing

Provide high-speed laser printing that enable custom printing
within production lines

Commercial printing©2017 Ricoh Company, Ltd. All Rights Reserved

19New business structure
Redefine our business domains based on customer attributes
and our strengths
Improve cash flow and concentrate investments in growthfieldsCustomer
Segment

Business
DomainPrinting

OfficesOfficeprinting
SI-CloudOfficeservices
BPS/CS

Position Switch strategy
underfrom scale focus
19 th MTP
to emphasize

profitability

Commercialprinting
O to DIndustrial
printing
ImagingsystemIndustrial
printer

Thermalmedia
Laser
printing

Concentrate resources
and capital to expand
sales and profit
contributions©2017 Ricoh Company, Ltd. All Rights Reserved

Industrial
products

SmartVisionBusinessdevelopment
3D printing
Environment
Healthcare

Boost earnings bydecisively allocating
resources
20

3. Reinforce Management Systems

RICOH

Resurgent©2017 Ricoh Company, Ltd. All Rights Reserved

21

Approach to Reinforcing Management
Systems
Approach

Looking backOrganization to implement
structural reforms
Drive reforms from the top down

Ambiguous
responsibility, role,and authority
for some businesses& functions

The chief executive office will directly oversee theorganization through the activities of the new CEOOffice
We will reinforce endeavors through directors to whom
we delegate authority to carry out special missions
In the United States, where we must urgently rebuild,
we will transform the structure and have headquarters
accelerate reforms

Organization to deploy businessstrategies
Ensure thorough business PDCA management andaccountability for results through structural reforms
Improve strategic quality and speed by shifting
business oversight to the best regions
Visualize management information to swiftly identify
and address issues©2017 Ricoh Company, Ltd. All Rights Reserved22

Reinforcing PDCA Cycles in Pushing
Ahead with Structural Reforms

IRcommunicationApril2017

July
2017

October
2017

January
2018

Structural reforms will be a top management priority, and will present
periodical reports on progress. We will also formulate a long-term growthstrategy, slated for announcement in April 2018

Board ofdirectors

Reinforcing monitoring and reflecting findings in assessments

Management
councilConfirming progress and sharing issues and measureswhile deciding on structural reinforcement efforts

April2018Structuralreform results
Long-termvision(Once monthly through quarterly)(When making decisions)

CEO Office

Confirming progress with key themes of CEO anddirectors with special missions

Reinforce
PDCA cycle(Once weekly)

Businessdivision

Confirming progress through business unit heads and sharing
and addressing issues(As needed)©2017 Ricoh Company, Ltd. All Rights Reserved23

Our Value Proposition

RICOHResurgent©2017 Ricoh Company, Ltd. All Rights Reserved24

Ricoh's Direction● Put customers first in keeping with our corporate philosophy andmake Ricoh essential for customers and society
Valueproposition

Value Proposition message

Our value
for society

Sustainability message

Corporate brandCorporatephilosophy

Under the 19th Mid-Term Management Plan, all Ricoh employees will
strive to materialize our direction by generating value for customers.

We will broadly address social issues, create new markets, and generatevalue to simultaneously drive social progress and Ricoh's growth.

Brand message: imagine. change.
These two words central to the Ricoh brand describe the way we work witheach other, bring value to our customers' businesses, and interact with themarket.

The RICOH Way
Founding Principles: The Spirit of Three Loves(Love your neighbor, Love your country, Love your work)

Mission, Vision, and Values statements©2017 Ricoh Company, Ltd. All Rights Reserved25

RICOH Value Proposition

EMPOWERING DIGITAL WORKPLACESRICOH IMPROVES WORKPLACES USING INNOVATIVE TECHNOLOGIES & SERVICESENABLING INDIVIDUALS TO WORK SMARTER

WHO IT HELPS

WHAT IS IT

INDIVIDUALSRICOH IMPROVES WORKPLACESHOW IT HELPSUSING INNOVATIVE TECHNOLOGIES ＆ SERVICES

WHAT ARETHE BENEFITENABLING … TO WORK SMARTER©2017 Ricoh Company, Ltd. All Rights Reserved26

Workplace Expansion and Our
Value Proposition
We look to set structural reform goals during fiscal 2017
and formulate our vision for the future in April 2018
Example of knowledge creation
support processB) Work digitization

SocietyFrontlines
Offices

Help resolve social
issues throughbusiness

Collect information on the mostsuitable devices

Analytics

Digitize site operations andimprove workflows linked tooffices

Analyze data and transform it into
intelligence

Transform work throughanytime, anywhere environments
Enhance productivity
through document workflows
combining paper andelectronic media

Capturing

Printing/Displaying

Transform datafrom workflows
into intelligence

Output information on the mostsuitable devices

Consulting
Provide intelligence and help resolve
customer issues

A) ValueA) Value
Value focus to shift away from traditional offices toward workplaces and expand to encompass society.
B) Work digitization
Digitizing work wherever people are in action, linking digitized work and analyzing the data
to support customer knowledge creation©2017 Ricoh Company, Ltd. All Rights Reserved27

RICOH Resurgent Financial Targets(aforementioned)

Structural reform savings: More than ¥100 billion
Fiscal 2019 operating profit: More than ¥100 billion
Total FCEF* over three years: More than ¥100 billion*Free cash flow excluding finance business©2017 Ricoh Company, Ltd. All Rights Reserved28

Forward-looking statements
The plans, prospects, strategies and other statements, except for the historical events, mentioned inthis material are forward-looking statements with respect to future events and business results. Thosestatements were made based on the judge of RICOH's Directors from the information that is now
obtainable. Actual results may differ materially from those projected or implied in such forward-looking
statements and from any historical trends. Please refrain from judging only from these forward-looking
statements with respect to future events and business results. The following important factors, without
limiting the generality of the foregoing, could affect future results and could cause those results todiffer materially from those expressed in the forward-looking statements:a. General economic conditions and business trend
b. Exchange rates and their fluctuations
c. Rapid technological innovationd. Uncertainty as to RICOH's ability to continue to design, develop, produce and market
products and services that achieve market acceptance in hot competitive market
No company's name and/or organization's name used, quoted and/or referenced in this material shallbe interpreted as a recommendation and/or endorsement by RICOH.
This material is not an offer or a solicitation to make investments. Please do not rely on this material
as your sole source of information for your actual investments, and be aware that decisions regarding
investments are the responsibility of themselves.

©2017 Ricoh Company, Ltd. All Rights Reserved

29