Ricoh CFO: "The time has come for us to choose which businesses to choose,"

pimpim · 12-02-2022, 09:52 AM

Ok, the source does not seem optimal, and the article I post here is assuming a lot out of the official Ricoh statement, but today I encountered the following article quoting the Ricoh CFO, where it makes sense that Ricoh will clean up their activities but obviously not yet clear which and how.

https://www.digitalcameraworld.com/news/is-ricoh-about-to-leave-the-camera-industry

Quote:

Ricoh has some 30 businesses under its umbrella, and financial performance is such that, "The time has come for us to choose which businesses to choose," according to chief financial officer, Shun Kawaguchi.

**jersey** · 12-02-2022, 10:04 AM - **4 Likes**

I.. doubt it. I mean new-old boss has come to Pentax so I doubt he would choose a dying business unless he is leaving altogether and wanted to say goodby to Ricoh Imagining in this way.

If it is true (most likely is) I think the main point will be smaller document-related parts of Ricoh as paper is moving into cloud (hence digital service plans).

BUT even if Pentax is abandoned K-3 Mk III will last me for long time and no more Pentax lenses will save me a lot of money

So while I would not be happy, I can keep using DSLR for years to come.

Kunzite · 12-02-2022, 10:31 AM - **5 Likes**

I lost count to those "OMG! Everybody, panic! Pentax is dying, this time for real!!!111oneoneone" tabloid articles...

Joe Dusel · 12-02-2022, 10:35 AM - **2 Likes**

LOL, I hope Godox buys Pentax from Ricoh.

**UncleVanya** · 12-02-2022, 10:42 AM - **3 Likes**

I also posted this just a bit later. Lol. I found it lacking in much detail and very negative in its thinking as it seemed to be mirrorless biased. However it was the first time I had heard that Ricoh was reevaluating what businesses it might keep. Any time this type of rethinking of corporate focus occurs there are chances that some businesses that are associated with the company may be spun out or otherwise changed. That, more than anything else, gives me a bit of concern.

Even if Ricoh did totally shutter operations I’d be set to use my gear for a long time.

**luftfluss** · 12-02-2022, 10:45 AM - **4 Likes**

Lame clickbait. Won't do it.

**thix2112** · 12-02-2022, 10:46 AM - **5 Likes**

Pentax is Doomed!!

**UncleVanya** · 12-02-2022, 10:53 AM - **2 Likes**

Originally posted by luftfluss

Lame clickbait. Won't do it.

That’s actually what I labeled it in my thread. I agree with the assessment but this was my first exposure to the fact that Ricoh was reevaluating the business composition and that one fact was interesting to me.

biz-engineer · 12-02-2022, 10:57 AM - **2 Likes**

Originally posted by thix2112

Pentax is Doomed!!

Not possible. Chris of DPReview recently rescued Pentax by plugging a Pentax KF into an USB battery and OVF hood massage.

Youtu.be

**MikeNArk** · 12-02-2022, 11:00 AM - **3 Likes**

This information in this article seems a little dated. The referenced reevaluation process was stated to begin in April 2021. I guess there is always room for more speculation.

**Rondec** · 12-02-2022, 11:14 AM - **8 Likes**

"The time has come," the Walrus said.
"To talk of many things.
"Of shoes -- and ships -- and sealing wax --
Of cabbages -- and kings --
And why the sea is boiling hot
And whether pigs have wings."

And whether Ricoh lives another day
or shrinks and simply falls away.

**EssJayEff** · 12-02-2022, 12:26 PM - **3 Likes**

As best I can tell, the information comes from an article dated October 27, 2022 in Newswitch. Here's the Google translated text:

“Time to select businesses”, financial indicators that Ricoh emphasizes

Ricoh, which is shifting from a multifunction machine to a digital service company against the backdrop of the rapid progress of paperless, will introduce an in-house company system in April 2021 and emphasize return on invested capital (ROIC). In addition to profitability and investment efficiency based on ROIC, the business portfolio will be evaluated from three perspectives: market position and suitability for digital services. Shun Kawaguchi, a corporate executive officer and chief financial officer (CFO), said, "The time has come for us to choose which businesses to choose."

Ricoh aims to achieve an ROIC of over 8% in fiscal 2025. There are about 30 businesses, and some of them are moving toward the sale or withdrawal. About a year and a half after the introduction of the in-house company system, Mr. Kawaguchi says that by giving authority to the heads of each company, "decision-making has become faster." ROIC is just an indicator of efficiency, and the most important factor is return on equity (ROE). Aim to achieve over 10% in FY2013.
In order to achieve ROE, ROIC is divided into key measures for each business unit and key performance indicators (KPI). This management method was introduced in earnest in fiscal 2010. Rather than simply chasing numbers, "After clarifying what is not being done, pursue efficiency and implement measures to achieve results" (Mr. Kawaguchi).

Regarding share buybacks, the basic stance is not to improve ROE, but to realize an optimal capital structure with net assets of approximately 1 trillion yen and a shareholder return policy of a total return ratio of 50% in fiscal 2025. However, the most recent 30 billion yen buyback of shares since May 2022 was made in consideration of exchange rate adjustments due to the ongoing depreciation of the yen.

In addition, we use methods that are in line with sustainability (sustainability) for fundraising. Using sustainability-linked loans (SLLs), which offer preferential interest rates depending on the achievement of goals, and loans that evaluate and implement initiatives for environmental issues, "will create good pressure," says Kawaguchi.

Nikkan Kogyo Shimbun October 27, 2022

**ramseybuckeye** · 12-02-2022, 12:53 PM

I can't find it, but I thought that Ricoh hinted that they were willing to sell the camera business. I'm thinking that was last year, and maybe I just read that into something.

**EssJayEff** · 12-02-2022, 12:59 PM

Originally posted by jersey

So while I would not be happy, I can keep using DSLR for years to come.

Until you cannot, which is my [sorta] current quandary. I can use my K-1 (which I love!) but the camera will not turn off. So technically it still works, but not without the frequent hassle of removing the battery to turn off camera. (I won't recount those woes here...see thread from last December if you're interested.) It makes it awfully hard to spend more money to buy new Pentax gear when the viability of the brand is in question. I even couldn't bring myself to buy a used K-1 in the PF Marketplace last week. The time will come for practically everyone when their camera won't work they way they want it to perform. Those "years to come" do come to an end at some point.

Kunzite · 12-02-2022, 01:07 PM

Originally posted by UncleVanya

I also posted this just a bit later. Lol. I found it lacking in much detail and very negative in its thinking as it seemed to be mirrorless biased. However it was the first time I had heard that Ricoh was reevaluating what businesses it might keep.

It isn't the first time, though - some years ago, when Ricoh had to take serious steps to prevent a collapse - through their Resurgent restructuring program - they were saying things like "no sacred cow" and "leave no stone unturned".

12-02-2022, 09:52 AM	#1
pimpim Senior Member Join Date: Sep 2010 Location: Mainz Photos: Albums Posts: 253	Ricoh CFO: "The time has come for us to choose which businesses to choose," Ok, the source does not seem optimal, and the article I post here is assuming a lot out of the official Ricoh statement, but today I encountered the following article quoting the Ricoh CFO, where it makes sense that Ricoh will clean up their activities but obviously not yet clear which and how. https://www.digitalcameraworld.com/news/is-ricoh-about-to-leave-the-camera-industry Quote: Ricoh has some 30 businesses under its umbrella, and financial performance is such that, "The time has come for us to choose which businesses to choose," according to chief financial officer, Shun Kawaguchi.

12-02-2022, 10:46 AM - 5 Likes	#7
thix2112 Site Supporter Join Date: Jan 2013 Location: North Alabama Posts: 237	Pentax is Doomed!! Pentax is Doomed!!

12-02-2022, 11:14 AM - 8 Likes	#11
Rondec Loyal Site Supporter Join Date: Mar 2009 Location: Gladys, Virginia Photos: Gallery Posts: 27,653	"The time has come," the Walrus said. "To talk of many things. "Of shoes -- and ships -- and sealing wax -- Of cabbages -- and kings -- And why the sea is boiling hot And whether pigs have wings." And whether Ricoh lives another day or shrinks and simply falls away. Last edited by Rondec; 12-02-2022 at 12:46 PM.

12-02-2022, 12:59 PM	#14
EssJayEff Site Supporter Join Date: Jul 2011 Location: near Saxapahaw, NC Photos: Gallery \| Albums Posts: 969	Originally posted by jersey So while I would not be happy, I can keep using DSLR for years to come. Until you cannot, which is my [sorta] current quandary. I can use my K-1 (which I love!) but the camera will not turn off. So technically it still works, but not without the frequent hassle of removing the battery to turn off camera. (I won't recount those woes here...see thread from last December if you're interested.) It makes it awfully hard to spend more money to buy new Pentax gear when the viability of the brand is in question. I even couldn't bring myself to buy a used K-1 in the PF Marketplace last week. The time will come for practically everyone when their camera won't work they way they want it to perform. Those "years to come" do come to an end at some point. Last edited by EssJayEff; 12-02-2022 at 01:33 PM. Reason: typo

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12-02-2022, 10:04 AM - 4 Likes	#2
jersey Site Supporter Join Date: Jun 2017 Location: 3City agglomeration Photos: Gallery \| Albums Posts: 2,056	I.. doubt it. I mean new-old boss has come to Pentax so I doubt he would choose a dying business unless he is leaving altogether and wanted to say goodby to Ricoh Imagining in this way. If it is true (most likely is) I think the main point will be smaller document-related parts of Ricoh as paper is moving into cloud (hence digital service plans). BUT even if Pentax is abandoned K-3 Mk III will last me for long time and no more Pentax lenses will save me a lot of money So while I would not be happy, I can keep using DSLR for years to come.

12-02-2022, 10:31 AM - 5 Likes	#3
Kunzite Pentaxian Join Date: Apr 2007 Location: Romania Posts: 15,132	I lost count to those "OMG! Everybody, panic! Pentax is dying, this time for real!!!111oneoneone" tabloid articles...

12-02-2022, 10:35 AM - 2 Likes	#4
Joe Dusel Senior Member Join Date: Aug 2014 Location: Vista, CA Posts: 126	LOL, I hope Godox buys Pentax from Ricoh.

12-02-2022, 10:42 AM - 3 Likes	#5
UncleVanya Loyal Site Supporter Join Date: Jul 2014 Photos: Gallery \| Albums Posts: 28,404	I also posted this just a bit later. Lol. I found it lacking in much detail and very negative in its thinking as it seemed to be mirrorless biased. However it was the first time I had heard that Ricoh was reevaluating what businesses it might keep. Any time this type of rethinking of corporate focus occurs there are chances that some businesses that are associated with the company may be spun out or otherwise changed. That, more than anything else, gives me a bit of concern. Even if Ricoh did totally shutter operations I’d be set to use my gear for a long time.

12-02-2022, 10:45 AM - 4 Likes	#6
luftfluss Site Supporter Join Date: Jun 2011 Location: NJ Photos: Gallery \| Albums Posts: 11,619	Lame clickbait. Won't do it.

12-02-2022, 10:53 AM - 2 Likes	#8
UncleVanya Loyal Site Supporter Join Date: Jul 2014 Photos: Gallery \| Albums Posts: 28,404	Originally posted by luftfluss Lame clickbait. Won't do it. That’s actually what I labeled it in my thread. I agree with the assessment but this was my first exposure to the fact that Ricoh was reevaluating the business composition and that one fact was interesting to me.

12-02-2022, 11:00 AM - 3 Likes	#10
MikeNArk Loyal Site Supporter Join Date: Sep 2019 Location: Conway, Arkansas Posts: 15,124	This information in this article seems a little dated. The referenced reevaluation process was stated to begin in April 2021. I guess there is always room for more speculation.

12-02-2022, 12:26 PM - 3 Likes	#12
EssJayEff Site Supporter Join Date: Jul 2011 Location: near Saxapahaw, NC Photos: Gallery \| Albums Posts: 969	As best I can tell, the information comes from an article dated October 27, 2022 in Newswitch. Here's the Google translated text: “Time to select businesses”, financial indicators that Ricoh emphasizes Ricoh, which is shifting from a multifunction machine to a digital service company against the backdrop of the rapid progress of paperless, will introduce an in-house company system in April 2021 and emphasize return on invested capital (ROIC). In addition to profitability and investment efficiency based on ROIC, the business portfolio will be evaluated from three perspectives: market position and suitability for digital services. Shun Kawaguchi, a corporate executive officer and chief financial officer (CFO), said, "The time has come for us to choose which businesses to choose." Ricoh aims to achieve an ROIC of over 8% in fiscal 2025. There are about 30 businesses, and some of them are moving toward the sale or withdrawal. About a year and a half after the introduction of the in-house company system, Mr. Kawaguchi says that by giving authority to the heads of each company, "decision-making has become faster." ROIC is just an indicator of efficiency, and the most important factor is return on equity (ROE). Aim to achieve over 10% in FY2013. In order to achieve ROE, ROIC is divided into key measures for each business unit and key performance indicators (KPI). This management method was introduced in earnest in fiscal 2010. Rather than simply chasing numbers, "After clarifying what is not being done, pursue efficiency and implement measures to achieve results" (Mr. Kawaguchi). Regarding share buybacks, the basic stance is not to improve ROE, but to realize an optimal capital structure with net assets of approximately 1 trillion yen and a shareholder return policy of a total return ratio of 50% in fiscal 2025. However, the most recent 30 billion yen buyback of shares since May 2022 was made in consideration of exchange rate adjustments due to the ongoing depreciation of the yen. In addition, we use methods that are in line with sustainability (sustainability) for fundraising. Using sustainability-linked loans (SLLs), which offer preferential interest rates depending on the achievement of goals, and loans that evaluate and implement initiatives for environmental issues, "will create good pressure," says Kawaguchi. Nikkan Kogyo Shimbun October 27, 2022

12-02-2022, 12:53 PM	#13
ramseybuckeye Site Supporter Join Date: Apr 2009 Location: Hampstead, NC Photos: Gallery Posts: 17,292	I can't find it, but I thought that Ricoh hinted that they were willing to sell the camera business. I'm thinking that was last year, and maybe I just read that into something.

12-02-2022, 01:07 PM	#15
Kunzite Pentaxian Join Date: Apr 2007 Location: Romania Posts: 15,132	Originally posted by UncleVanya I also posted this just a bit later. Lol. I found it lacking in much detail and very negative in its thinking as it seemed to be mirrorless biased. However it was the first time I had heard that Ricoh was reevaluating what businesses it might keep. It isn't the first time, though - some years ago, when Ricoh had to take serious steps to prevent a collapse - through their Resurgent restructuring program - they were saying things like "no sacred cow" and "leave no stone unturned".