Risk factors

理光在全球开展业务，其主要市场日本、美国和欧洲的经济状况影响其业务。

特别地，

• Sino-American trade friction
• Brexit

理光认识到，由于贸易保护主义抬头，各国的动向是可能影响企业业绩的主要风险。

理光密切关注全球经济形势的变化，并采取适当的应对措施。

• 关于中美贸易摩擦,我们基于“增大化现实”技术e promoting measures to reduce customs risk, such as transferring some product production for the United States from China to a factory in Thailand, using the conventional BCP measures (parallel production). As a result, we will be able to prevent the impact on business performance that is expected to be several billion yen in response to the decree on the fourth phase of sanctions and customs measures against China. We will continue to respond to changes in the situation.
• With regard to Brexit, we assume that confusion due to nodeal exit, and we increase the stock of necessary materials and products at our European bases. In addition, the majority of us is subject to ITA products, and we believe that even if no-deal exit happen, the adverse effects of customs duties on business impacts will not be significant.

主要是生长策略＃0 /＃1

理光不断面临激烈竞争的风险。下面被视为风险。

• Competitive new products by competitors.
• 增加价格竞争
• 需求转向低价产品bob软件苹果怎么下载

理光计划不断推出新产品，以提高每个商业区的客户价值。bob软件苹果怎么下载Ricoh将始终旨在通过高质量，高附加值产品获得竞争优势，这些产品可以通过硬件提供从价值提供的客户工作流程。bob软件苹果怎么下载

With regard to price competition, we will continue to conduct appropriate selling price management. By free ourselves from scale expansion competition and providing high-quality, highvalue products that go into workflow solutions, we will aim to get customer satisfaction without lowering selling prices.

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理光的大部分生产和销售活动都在日本以外的地区进行，包括美国、欧洲和中国等其他地区。以下为风险。

• 材料市场波动的直接影响
• The impact of exchange rate fluctuations on consolidated statement of profit or loss and consolidated statement of comprehensive income as a result of converting local business results of overseas subsidiaries into yen using the average rate for each fiscal year.
• The impact of exchange rate fluctuations on consolidated statement of financial position due to the fact that assets and liabilities denominated in local currency are converted into yen using the exchange rate as of each account closing date.

In order to respond flexibly to fluctuations in the material market, Ricoh promotes the study of alternative materials during product development and after shifting to mass production, promotes multiple purchasing in procurement of materials, and regarding market fluctuations that can not be absorbed, Ricoh are striving to reflect selling prices appropriately while looking at competitors' situation.

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Ricoh engages in alliance with entities to create various products and services to fulfill customer demand. Ricoh believes that alliances with other entities, joint venture and strategic investment are effective for the timely development of new technology and products using management resources of both parties. However due to various reasons described below, these alliances may adversely affect Ricoh's future growth and profitability as well as its financial results and condition.

• 由于财务或其他原因，理光的利益与其他缔约方的利益不同，最后理光可能无法维持联盟。
• Failure to acquire an exact interest due to lack of information and enough deliberation.
• Such strategic investments may not necessarily lead to the expected outcome or performance and may result in increased time and expenses being incurred due to the integration of businesses, technologies, products and/or personnel necessitated by such investments.

为了灵活地响应各种客户需求，Ricoh认为，这些类型的管理决策对理光的未来表现更为重要。这就是为什么理光将这种风险作为“管理战略风险”，并努力加强此事的决策过程。

The Investment Committee is established and positioned as an advisory committee to the GMC, and verifies investment plans based on the validity of financial aspects including capital costs, and strategic aspects such as profitability and growth risks, etc. Members with expertise perform prior reviews and discussion on diversifying investment projects to external entities in order to ensure consistency with management strategies and raise the efficacy of the investment while improving the speed and accuracy of investment decisions.

The committee chairperson attends and share the results of the committee's discussions on each project in GMC so as to assist the decision-maker in making objective decisions. Also, the committee monitors each project's progress and learn from it so that continuous PDCA process runs effectively.

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适当响应快速技术变革的能力是理光草产品/服务竞争力的基础。bob软件苹果怎么下载

理光未能应对下文所述的任何风险，可能会对理光未来的增长和盈利能力以及财务业绩和状况产生不利影响。

• Prediction to technological changes and actions for it
• Set focus technological development area and resource allocation for it
• Set new business area and technological development for it

With advancements in innovation across all sectors globally, it is becoming increasingly important to develop technologies that are able to resolve issues facing customers and society at large quickly. That is why Ricoh sets this risk as “managerial strategic risk” and makes efforts to strengthen decision making process for this matter.

Ricoh provides products and services to customers in a global market. To accomplish this, Ricoh runs research facilities in Japan, the United States, India and China, promoting deep collaboration among our facilities worldwide, while utilizing regional characteristics. A, in order to respond to the rapid business environment changes in timely fashion, it is not always best to conduct R&D activities internally. Ricoh promote open innovation to accelerate R&D activities by proactively cooperating with universities, institutes and companies around the world.

理光的2019年建立“创新部门”,and is integrating all new-growth-arearelated process (such as prioritization, incubation, operationalization as a business).

此外，理光已指派首席技术官（CTO）决定技术优先发展领域，并适当分配资源，以加速理光的技术活动。

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理光认为，为了保持中长期的竞争力，在适当的时候获得和留住高技能人才是至关重要的。理光未能应对下文所述的任何风险，可能会对理光未来的增长和盈利能力以及财务业绩和状况产生不利影响。

• 未在适当时机招聘合格人员
• Failure to train up highly skilled personnel
• The loss of key employees

Lack of workforce due to declining birthrate and an aging population, war for talent in particular area (such as AI, IoT etc.) is making recruiting more difficult. That is why Ricoh sets this risk as “managerial strategic risk” and places emphasis on securing and retaining qualified personnel.

• 部署工作匹配招聘并确保高度培训的人获得他们所预期的事业。
• Promoting not only fresh graduate recruiting but mid-career recruiting
• 加强各种系统，以支持工作-生活管理和多样化的劳动力
• Enhancing systems to secure and train managing staff

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Ricoh provides financing to some of its customers in connection with its equipment sales and leases.

• Despite Ricoh monitor the creditworthiness and the amount of credit, no assurances can be made that Ricoh will be able to fully collect on such extensions of credit due to unforeseeable defaults by its customers.
• These financing arrangements that Ricoh enters into with its customers result in long-term receivables bearing a fixed rate of interest. Ricoh finances a part of these financing arrangements with short-term borrowings. As a result, there is a risk that operating profit may be affected by interest rate fluctuations.
• 理光根据现行法律、税收和会计法规发展业务。

如果这些规定发生重大变化，理光的业绩就有可能受到影响。

In terms of accounting standard, the adoption of IFRS 16 “Lease” is expected to have some impacts on the finance business, such as changes in customers' purchasing behavior in countries to which the standard is applied.

• Ricoh evaluates the creditworthiness and the amount of credit extended to a customer prior to the financing arrangement and during the financing term on a regular basis. Depending on such evaluations, Ricoh makes adjustments to such extensions of credit as it deems necessary to minimize any potential risks of concentrating credit risk or nonpayment.
• 理光净财务条件与不变利率的短期借款以及借款的借贷约会，其条款与融资安排期限与融资安排符合遵守利率风险。

主要是生长策略＃0 /＃2

When building information security systems, Ricoh plans for these risks described below,

• Malicious cyber-attack cause Ricoh's system trouble, information security problem and loss.
• 网络攻击使RICOH成为攻击者端，RICOH服务器不由自主地用于坏端。结果Ricoh的恶劣声誉和理光将被排除在客户供应之中。
• Ricoh products has big information security problem and get exclusion from market, which adversely affect Ricoh's future growth and profitability as well as its financial results and condition.

现在是每个国家都需要国家级别的信息安全对策的时间，理石仔细观察新的威胁/运动，并考虑/促进它的适当对策。

• Based on international information security standard, Ricoh establishes comprehensive control organization accordingly for covering Ricoh global information security and it enhances its systems continuously.
• Ricoh makes countermeasures for risks which occurs to factory/equipment systems to be cyber-attacked.

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理光可能对其产品和服务出现的任何缺陷负责。根据下述缺陷，理光可能对可能对其财务业绩和状况产生不利影响的重大损害负责。bob软件苹果怎么下载

• 重大产品责任（烧毁、人身伤害）
• 违反安全/环境法规bob娱乐平台
• Prolongation for quality problem in market etc.

In addition, negative publicity concerning these defects could make it more difficult for Ricoh to attract and maintain customers to purchase Ricoh products and services. As a result, Ricoh's financial results and condition may be adversely affected.

For enhancing safety/reliability of products, Ricoh analyzes mechanism of each breakdown/incident carefully, and reflect it in products development process. If any problems happen in the market, Ricoh has systems to respond it promptly.

为了提供与每个国家的安全/环境法规对齐的bob软件苹果怎么下载产品，Ricoh评论自己的运营标准/指南，确认每个当地市场更新。bob娱乐平台

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If Ricoh faces to earthquake, Tsunami, political turmoil, flood, pandemic or supply-chain disruption, which causes risks described below.

• 零件供应延迟或中断
• 停止生产产品bob软件苹果怎么下载
• Disruption of transportation, freight

These risks may cause opportunity loss and adversely affect Ricoh's financial results and condition.

理光为BCP保留了一定数量的库存，也为关键部件提供了多种供应路线，以备事故发生。

基于每个风险案例的假设，理光计划在风险发生时采取行动并进行培训，同时评估有效性并改进其流程。

主要是生长策略＃0 /＃1

Since alliance/joint-R&D with other parties are getting increased, Ricoh may be involved in contract conflict/trouble, which may adversely affect Ricoh's financial results and condition.

Ricoh has accumulated learnings from trouble what Ricoh experienced in the past, then developed assessment method. The method is utilized for risk assessment for new business development and take measures based on that assessment results.

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Ricoh is subject to various governmental regulations and approval procedures in the countries in which it operates. If Ricoh is unable to comply with any of these regulations described below or fails to obtain the requisite approvals, Ricoh's activities in such countries may be restricted. In addition, even if Ricoh is able to comply with these regulations, compliance can result in increased costs. In either event, Ricoh's financial results and condition may be adversely affected.

• Human resources related compliance(Harassment, Employment, Human rights, etc)
• 出口法规和关税以及可能限制生产/销售活动的规则
• 与商业，反垄断，专利，消费者和营业税有关的法规
• bob娱乐平台环境和回收相关法律。

Ricoh has defined “Ricoh Business Conduct Guideline” to heighten awareness of the importance of corporate social responsibility through implementing “Ricoh Way”. Ricoh involves its employees in various activities designed to ensure compliance with applicable regulations as part of its overall risk management and compliance program.

• Regarding Human Resources related Implement timely internal training and define emergency response framework, supplier periodic assessment for human rights compliance
• 对于出口法规及时实施内部培训，公布理光所有业务相关法规的变更或更新
• 与商业、反垄断等有关的法规。法律部领导内部培训，并不断加强制度，一旦发生任何违规行为，将予以考虑。
• 关于环境和回收有关法bob娱乐平台律Ricoh has introduced environmental management system and does periodic assessment to ensure environmental laws compliance.

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Ricoh认识到商业运营的收购和各种有形资产或无形资产的善意。当预期的现金流量无法满足目标或其他时，可能存在对理光的业务结果或财务状况的有害影响。

正如风险“与其他实体结盟，战略投资”中所述，我们在投资委员会审议收购金额的适当性。我们监控投资后的进度，并建立了执行和管理业务的系统。

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关于其员工福利义务和计划资产，理石基于适用的会计政策和根据政府法规的福利来赋予该福利的成本。

Currently, there is no immediate and significant funding requirement. However, if returns from investment assets continue to decrease and/or turn negative due to market conditions, such as with fluctuations in the stock or bond markets, additional funding and accruals may be required. Such additional funding and accruals may adversely affect Ricoh's financial position and results of operations.

基于政府法规，人力资源战略和人事制度，理光审查和实施了系统。

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理光认识到，气候变化是一个重大问题，可能会对整个世界产生广泛影响，无论国家和地区如何，因此是一个可能影响其全球业务的关键问题。基于上述认识，我们针对识别出的风险采取了一系列措施。尽管如此，我们仍然面临以下所述的一些潜在风险，这些风险可能是由于不充分或延迟的行动造成的。

（过渡风险）

• 由于未能有效应对向脱碳社会的极快过渡，导致成本增加、销售机会丧失和企业品牌受损，从而导致企业价值下降的风险。

(Physical risks)

• Risks of the business being affected by surging prices of raw materials for paper and others as a result of extreme climate events.
• Risks of product/service supplies being interrupted through suspended factory operations and disrupted supply chains as a result of delayed actions to address damage caused by extreme climate events.

To deal with each of the described risks, we have developed the following measures:

（过渡风险）

• To effectively respond to the transition toward a decarbonized society, we have set up an ESG Committee, chaired by the president and CEO, as a system to monitor trends in international environmental requirements so that we can review our environmental goals and prevent risks from arising or address actualized risks in a timely manner.
• 2019年，新增气候变化与风险管理（TRM）系统新增有关问题，以加强应对气候变化过渡风险的活动。

(Physical risks)

• 我们正在加强涉及供应链的风险管理;从多个供应商采购，并确保额外的材料和零件库存。我们还与供应商合作，以改善业务连续性管理。
• For actions against damage caused by extreme climate events, please refer to the sections for risks within “large-scale disasters,” and “delayed and disrupted supplies of products over a prolonged period of time.”

主要是生长策略＃0 /＃1

Ricoh will do its utmost to ensure the continuation of business activities, secure employee's and their family's safety, and fulfill its social responsibilities as a corporate citizen in the event of described below,

• Natural disaster (earthquake, Tsunami, hurricane, flood, snowstorm, Eructation etc.)
• 事故（火灾，喷发，危险材料泄漏，公共交通大事发生等）
• Drastic situation change (Domestic warfare, International war, radical social movement etc.)
• 事件（恐怖、绑架、恐吓等）

理光有内部共同法规理光集团标准“并有特定的行为，即理光员工应采取紧急情况，报告结构和紧急总部的建立和角色，使每个地点都能在紧急情况下正常行事。

减轻此类风险所采取的措施包括对设备和设施的定期检查，进行灾难练习，实施系统，以确认员工安全和形成业务连续性计划。

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On January 29, 2018, Ricoh India filed an application to initiate the corporate insolvency resolution process with the National Company Law Tribunal, Mumbai (NCLT), pursuant to Section 10 of the Insolvency and Bankruptcy Code of India, 2016. The NCLT admitted the insolvency petition on May 14, 2018.

We allocated expenses which relate to Ricoh India of ¥6.9 billion, ¥11.7 billion and ¥14.9 billion in consolidated operating results for the fiscal years ended March 31, 2017, 2018 and 2019, respectively. As a result of allocating an additional loss in the consolidated operating results for FY2018, we have allocated all the credits of Ricoh India.

(For the details, please refer 3. Analysis of Consolidated Financial Position, Operating Results and Cash Flows, Regarding the Circumstances and Response to the Financial Irregularities at a Sales Subsidiary in India and the Subsequent Conditions)

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