Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ricoh-company-ltd" target="_blank" data-smartkarma-citation="entities:15359:1" rel="noopener">Ricoh Company Ltd (7752 JP)</a> announced earnings disappointed, but guidance is above forecast as some Q4 business was pushed back.</li>
<li>The company also announced a buyback. The headline at 7.5% of shares out is big. Reality is lower. </li>
<li>This sets up a somewhat complex dynamic of flows in near space and far space, and relative to peers. But we look at it anyway.</li>
</ul>



Ricoh Company Ltd (7752 JP) announced earnings disappointed, but guidance is above forecast as some Q4 business was pushed back.
The company also announced a buyback. The headline at 7.5% of shares out is big. Reality is lower. 
This sets up a somewhat complex dynamic of flows in near space and far space, and relative to peers. But we look at it anyway.


Ricoh (7752) Buyback - Big, But Not. But Not Small.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/canon-inc" target="_blank" data-smartkarma-citation="entities:1:1" rel="noopener">Canon Inc (7751 JP)</a> on Monday announced a share buyback programme.</li>
<li>It isn't very big. But it bears consideration because of other things going on. </li>
<li>Shareholder structure is of much more importance than many investors appreciate. Here even more so.</li>
</ul>



Canon Inc (7751 JP) on Monday announced a share buyback programme.
It isn't very big. But it bears consideration because of other things going on. 
Shareholder structure is of much more importance than many investors appreciate. Here even more so.


Canon (7751) - Buyback Looks Small But Shareholder Structure Matters

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

<ul>
<li>Ricoh held an ESG session. At the end of the QA session, a question from a participant left a deep impression on me, so I would like to discuss it.</li>
<li>Different regions and countries may have different view on human rights due to differences in constitutions and laws but I believe there should be no differences in human rights.</li>
<li>Now that Ricoh's human rights policy complies with UN standards, I hope that as many companies as possible will reconsider their approach to human rights in the future.</li>
</ul>


Ricoh held an ESG session. At the end of the QA session, a question from a participant left a deep impression on me, so I would like to discuss it.
Different regions and countries may have different view on human rights due to differences in constitutions and laws but I believe there should be no differences in human rights.
Now that Ricoh's human rights policy complies with UN standards, I hope that as many companies as possible will reconsider their approach to human rights in the future.


Japan's Governance: Human Rights Policy: Ricoh (7752)

Equity Bottom-Up

Today, Effissimo Capital Management "surprised" the market by filing a Large Shareholder amendment saying they had sold 3.87% of <a href="https://www.smartkarma.com/entities/ricoh-company-ltd" target="_blank" data-smartkarma-citation="entities:15359:1" rel="noopener">Ricoh Company Ltd (7752 JP)</a> at Friday's closing price. It isn't quite that simple, and it is a complex set of flows going on. That is worth a look.

Today, Effissimo Capital Management "surprised" the market by filing a Large Shareholder amendment saying they had sold 3.87% of Ricoh Company Ltd (7752 JP) at Friday's closing price. It isn't quite that simple, and it is a complex set of flows going on. That is worth a look. 

Japan Specialist

Mark Chadwick

<div>
Last week, <a href="https://www.smartkarma.com/entities/ricoh-company-ltd" target="_blank" data-smartkarma-citation="entities:15359:1" rel="noopener">Ricoh Company Ltd (7752 JP)</a>  announced a new business strategy. It is worth a <a href="https://www.ricoh.com/-/Media/Ricoh/Sites/com/IR/data/pre/pdf/ir_pre2020.pdf" target="_blank" rel="noopener">read</a>. 
Ricoh will be moving away from its core office equipment business to focus on digital services. The market liked this, or more likely, investors were cheering the ¥100b capital return. Regarding the buyback, Travis Lundy has written a must-read: <a href="https://www.smartkarma.com/insights/ricoh-buyback-redux-it-s-on-it-s-big-crossholders-vs-activist-vs-public-who-sells" target="_blank" data-smartkarma-citation="insights:48787" rel="noopener">Ricoh Buyback Redux - It's On, It's Big. Crossholders Vs Activist Vs Public. Who Sells?</a> 
</div><div>The new strategy makes perfect sense. Prime Minister Suga is waging a war against the old ways of doing business, which have been stunting Japan’s growth potential. Ricoh, one of the chief paper pushers, simply had to change. <a href="https://www.smartkarma.com/entities/konica-minolta-inc" target="_blank" data-smartkarma-citation="entities:17287:1" rel="noopener">Konica Minolta (4902 JP)</a>  also announced a similar strategic shift.  </div><div>
CEO Yamashita had enjoyed some success with a cost-cutting strategy since coming to power in 2017. Unfortunately, COVID put an end any further margin improvement.  
<section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/194/216/original/smartkarma_download.png?1615686431" class="editor-image img-responsive" data-smartkarma-image-id="194216"></figure></section>The share buyback provides management with time to execute the shift to digital services. That is good news for investors. It will be a difficult transition as Ricoh’s competitive landscape becomes increasingly fierce. Rather than competing against a handful of sleepy Japanese copier makers, they are now entering a global arena, battling with some of the biggest names in global tech.  
</div><div>Does the Board have the requisite skills to navigate this brave new world? In our Board evaluation, where we rate and rank all companies in the Topix 500 on the quality of their board structure, Ricoh ranks just below average. It is ok, but Japanese boards are on average, much lower quality than global peers. </div>


Last week, Ricoh Company Ltd (7752 JP)  announced a new business strategy. It is worth a read. 
Ricoh will be moving away from its core office equipment business to focus on digital services. The market liked this, or more likely, investors were cheering the ¥100b capital return. Regarding the buyback, Travis Lundy has written a must-read: Ricoh Buyback Redux - It's On, It's Big. Crossholders Vs Activist Vs Public. Who Sells? 
The new strategy makes perfect sense. Prime Minister Suga is waging a war against the old ways of doing business, which have been stunting Japan’s growth potential. Ricoh, one of the chief paper pushers, simply had to change. Konica Minolta (4902 JP)  also announced a similar strategic shift.  
CEO Yamashita had enjoyed some success with a cost-cutting strategy since coming to power in 2017. Unfortunately, COVID put an end any further margin improvement.  
The share buyback provides management with time to execute the shift to digital services. That is good news for investors. It will be a difficult transition as Ricoh’s competitive landscape becomes increasingly fierce. Rather than competing against a handful of sleepy Japanese copier makers, they are now entering a global arena, battling with some of the biggest names in global tech.  
Does the Board have the requisite skills to navigate this brave new world? In our Board evaluation, where we rate and rank all companies in the Topix 500 on the quality of their board structure, Ricoh ranks just below average. It is ok, but Japanese boards are on average, much lower quality than global peers. 

Japan Corporate Governance - Ricoh - Lacking Board Skills?

Japan

RICOH COMPANY, LTD. manufactures and markets office automation equipment, electronic devices, and photographic instruments.  The Company's diverse product line includes facsimiles, image scanners, printers, digital cameras, and personal computers, as well as a full range of analog, digital, and color copiers. Ricoh operates with a network of sales offices and tie-ups worldwide.

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Ricoh Company Ltd (7752 JP)

Ricoh (7752) Buyback - Big, But Not. But Not Small.

Ricoh (7752) yesterday announced disappointing results, bte forecasts, and a big buyback headline with less exciting reality. It sets up a complex...

Travis Lundy

Canon (7751) - Buyback Looks Small But Shareholder Structure Matters

Canon's buyback is "small" but it probably matters more than most think in terms of near-term market structure and performance.

Travis Lundy

Japan's Governance: Human Rights Policy: Ricoh (7752)

Now that Ricoh's human rights policy complies with UN standards, I hope that as many companies as possible will review their approach to human...

Metrical Inc

Ricoh Buyback Runs Into Activist Selling

Today Ricoh (7752) took a hit as Effissimo sold a near 4% stake Friday. It is slightly more complex, but it represents ongoing overhang. But Ricoh...

Travis Lundy

Japan Corporate Governance - Ricoh - Lacking Board Skills?

Ricoh is shifting to become a Digital Services company.....but does it have the Board quality to survive and thrive in an era of Digital...

Mark Chadwick

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