Special Project to Achieve a PBR of 1x or Higher

「Although selling, general and administrative expenses increased because of higher expenses such as personnel costs associated with business growth and inflation, as well as one-time costs related to the integration of core systems in Europe, they decreased 7.5% from the previous interim consolidated accounting period to ¥387.3 billion because of lower expenses for the corporate value enhancement project carried out in the previous interim consolidated accounting period and its effects.」

「Specifically, we are working to transform our earnings structure across 4 areas: ① head office reform, ② accelerating business “selection and concentration,” ③ structural reform of the office printing business, and ④ accelerating profit growth in the office services business.」

「Since April 2023, we have been working on the corporate-value enhancement project to achieve our desired future state. The primary factor behind the low PBR is low profitability. To achieve growth as a digital services company, we need to establish earnings structures suited to the business model of each operation, and are therefore pursuing fundamental earnings-structure reform.」

「At the results briefing for fiscal 2022 held on 8 May 2023, we announced that we had launched and begun activities under a special project to achieve a PBR of at least 1x. We intend to analyze the gap between theoretical equity value and the current valuation, identify the factors behind the PBR falling below 1x, and formulate and implement an action plan to enhance corporate value, including accelerating measures under the 21st Medium-Term Management Plan.」