News Release
We have decided to change our assistance policy for our consolidated subsidiary, Ricoh India Limited (Registered head office: Mumbai, Bombay Stock Exchange – referred to as Ricoh India from here). We anticipate additional associated losses and have revised the forecasted consolidated operating results for the full year ending March 31, 2018 that were announced on April 28, 2017.
到目前为止，我们提供了各种形式的支持来重建理摩印度。然而，在持续的赤字中，理光印度与主要供应商的关系恶化，因此我们已经重新评估了重组计划和对Ricoh印度的支持。因此，在目前的情况下，我们决定不提供任何额外的财政支持，以尽量减少理光组的综合亏损。
作为理光公司，Ltd。（从这里提到Ricoh），我们将尽一切努力继续为印度的客户提供服务，并保持该服务前进的质量。
我们与政策的变化，我们评估了未来的损失金额，并已根据下文所写的预测综合运营结果进行了修订。
1. Revision to the forecast of Ricoh's consolidated operating results
(1) Revision to the forecast of Ricoh's consolidated operating results for the full year ending March 31, 2018. (From April 1, 2017 to March 31, 2018)
| 净销售额 (Millions of yen) |
营业利润 (Millions of yen) |
Profit before income taxes (Millions of yen) |
归属于父母所有者的利润 (Millions of yen) |
每股盈利归属于父母的所有者 （日元） |
|
| Forecast announced in April 2017 (A) | 2,000,000. | 18,000 | 13,000 | 3,000 | 4.14 |
| 新预测（b） | 2,040,000 | 10,000 | 4,000 | -7,000. | -9.66 |
| 增加/减少（B-A） | 40,000 | -8,000 | -9,000 | -10,000 | ― |
| Increase/decrease (%) | 2.0 | -44.4 | -69.2 | ― | ― |
| （参考）截至2017年3月31日止全年的结果 | 2,028,899 | 33,880 | 29,955 | 3,489 | 4.81 |
(2) Background of revision
The forecast of the consolidated operating results for the full year ending March, 2018 was revised upwards given the progress of our structural reforms, the exchange rate, and the improvement in business conditions, however due to the anticipated losses arising from our consolidated subsidiary Ricoh India Limited of 30 billion yen, we revised downwards the forecast of our operating income, profit before income taxes and profit attributable to owners of the parent.
We will not change the forecast of the term-end dividend.
(Note) The above forward-looking statements are based on information available to and certain assumptions made by Ricoh as of the date of this notice, and there can be no assurance that the relevant forecasts will be achieved. Please note that significant differences between the forecasts and actual results may arise from various factors in the future.
2. Regarding the support for the restructuring of Ricoh India and their performance up to the present time
截至2015年6月30日止2015年6月30日截至2015年6月30日的第一季度财务业绩，Ricoh印度符合良好治理，改变了审计师。为了满足其要求与孟买证券交易所的要求义务，审计师对截至2015年9月30日止二零一季度的第二季度成果进行了有限的审查，是其新审计进程的一部分。在本报告中，审计师提出了对Ricoh India的管理和理光印度审计委员会关于金融违规的担忧。虽然Ricoh India的审计委员会被任命为外部专家进行内部调查，但2016年4月13日委任新的高级管理人员，为业务的经营结构做出必要的变化。2015年5月30日止二零一六年末截至2016年5月30日截止的第二季度延迟结果。
在此之后，金融违规行为继续调查，2016年7月19日，理光印度披露了今年的预期损失，并修订了其成果。理光提交了在印度国家公司法法庭的申请，旨在重组Ricoh印度的业务的资本增加（资本增加在同一年的10月15日执行）。
此外，通过派遣来自理光担任理光印度主席的新执行官，我们努力正常化会计和财务职能，执行适当的账户报告，并在新管理下实施再次预防措施。
However, Ricoh India’s losses before income tax for the Fiscal Year 2016 was 3.3 billion rupee (5.8 billion yen), and in the first quarter of the Fiscal Year 2017, losses before income taxes was 0.7 billion rupee (1.2 billion yen), and therefore the company is continuing in a state of deficit.
Furthermore, the business relationship with its major IT vendor, Fourth Dimension Solutions (Headquarters: New Delhi, National Stock Exchange of India – referred to as FDS from here) has deteriorated. Ricoh India continued negotiations to review its business relationship in order to improve the profitability of several joint projects with FDS, however due to the frequent default of contracts, part of the contract with FDS was cancelled in May, 2017, and negotiations for the return of advanced payments continued.
However, in September, 2017, FDS filed a petition with the National Company Law Tribunal to initiate Ricoh India’s insolvency, under the Insolvency and Bankruptcy Code of India. Although the petition was rejected, the dispute with FDS had surfaced. FDS filed another petition yesterday.
Given these circumstances, in April, 2017, under Ricoh’s newly-appointed President and CEO, Yoshinori Yamashita, and based on the “RICOH Resurgent” policy, which aims to implement global structural reform across each and every business unit, without exception, we reevaluated our support to Ricoh India. As a result, we have decided not to provide any additional financial support going forward, to minimize the consolidated losses of the Ricoh Group.
3. Efforts to prevent a recurrence
We acknowledge the gravity of this outcome, and, with the aim of strengthening group governance, we will undertake the following six measures to prevent a recurrence through strengthening cooperation between Japan headquarters and regional headquarters/overseas subsidiaries.
(1) Although our regional headquarters have been the main managing bodies of overseas sales subsidiaries until now, cooperation with the Japan headquarters will be further strengthened. Specifically, regional headquarters and the supervisory department and the accounting department of Japan headquarters will work together to periodically review the financial statements of overseas subsidiaries.
（2）我们将加强海外子公司的业务管理，全球标准化采购流程，以及不管每个地区的商业海关如何管理购买。
(3)我们将年代trengthen cooperation between the accounting auditors of overseas subsidiaries and the Japan headquarters’ auditing firm, or overseas subsidiaries of the auditing firm. We will also evaluate the effectiveness of audits by the auditing firms from an objective viewpoint.
(4) As part of improving the effectiveness of internal audits, we will strengthen research processes such as checking transaction details. We will also revise auditing activities that have been closed for each region up until now, and the global audit team will conduct internal audits in the Americas, Europe, and Asia Pacific regions.
(5) We will manage subsidiaries that are subject to emerging country business risks, differing business structures based on business customs, and risks of new and growing businesses. In emerging countries, for any projects that fall outside of our current business practices, we will confirm and evaluate contract contents, profitability and suppliers for orders placed over a certain amount.
（6）我们将在海外子公司教育高级官员，特别强调遵守和内部控制，并澄清欺诈预防方面的角色和责任。此外，已经在欧洲和美洲引入的提名和薪酬委员会将在亚太地区设立，以加强高级管理层的评估和监督。
4.人事措施
Ricoh Company, Ltd. deeply regrets this result, and therefore the following will voluntarily reduce their compensation.
Yoshinori Yamashita, president and CEO…15% (for 3 months)
Yohzoh松浦、董事、公司执行官维克e president…15% (for 3 months)
Kunihiko Satoh, director, corporate executive vice president…15% (for 3 months)
Akira Oyama，公司执行副总裁董事...... 15％（3个月）
yukihiko Yamanaka，公司副总统...... 15％（3个月）
*Zenji Miura, former president and CEO (currently executive advisor) will voluntarily reduce compensation of 30% for 3 months, and resign.
Mr. Shiro Kondo will retire at the end of his current term of office, as all outstanding issues which arose under his leadership have been, or are in the process of being satisfactorily resolved.