Japan Equity Research 12 December 2025 Technology – Consumer Electronics/Industrial Electronics/Precisions Technology – Consumer Electronics/Industrial Electronics/Precisions Junya Ayada AC +813-6736-8631 junya.ayada@jpmorgan.com JPMorgan Securities Japan Co., Ltd. See the end pages of this presentation for analyst certification and important disclosures, including non-US analyst disclosures. J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors sho ...

Core Insights - Ricoh Company, Ltd. has installed its perovskite solar cells on the Space Solar Cell Demonstration System (SDX) aboard the HTV-X1 spacecraft, launched by JAXA on October 26, 2025, for an in-orbit demonstration [1][3] Group 1: Solar Cell Technology - The in-orbit demonstration will last approximately two months, during which the current-voltage characteristics, power generation performance, and durability of Ricoh's perovskite solar cells will be evaluated [3] - Perovskite solar cells are advantageous due to their high power generation under low illumination, strong resistance to cosmic radiation, and potential for lightweight and flexible designs, making them suitable for future space applications [3][4] Group 2: Research and Development - Since 2017, Ricoh has collaborated with JAXA's Space Exploration Innovation Hub Center to develop durable perovskite solar cells suitable for space environments [4] - The company aims to enhance energy conversion efficiency and durability while achieving high productivity and cost reductions through its core technologies, including organic photoconductors and inkjet printing [5] Group 3: Commercialization Efforts - Following the results of the space demonstration, Ricoh plans to continue improving the performance and durability of perovskite solar cells, accelerating their development towards early commercialization [6] - Ricoh's global operations reached approximately 2,527 billion yen (around 16.8 billion USD) in sales for the financial year ending March 2025, indicating a strong market presence [8]

Core Insights - Swiss enterprises are leading the global shift towards an AI-driven workplace, adopting automation and hybrid work practices more rapidly than their European counterparts [1][20] - The transition from AI experimentation to large-scale implementation is evident, with a focus on enhancing productivity and employee well-being [2][3] AI Adoption and Implementation - AI adoption in Switzerland has progressed to large-scale implementation, with organizations automating processes and creating new working methods [2][3] - Enterprises are developing frameworks for responsible AI to build employee trust and ensure sustainable productivity [2][3] Workplace Strategies and Governance - Swiss enterprises are modernizing workplace strategies amid competitive pressures, emphasizing AI governance as a key criterion for selecting service providers [3][4] - Environmental, social, and governance (ESG) requirements are driving the adoption of sustainability practices, including carbon tracking and circular IT [3] Collaboration and User Experience - Collaboration in Swiss enterprises is evolving, shifting focus from traditional service-level indicators to user experience metrics [4][5] - Generative AI platforms are facilitating this transition, leading organizations to establish frameworks for AI readiness and governance [4] Digital Employee Experience - Digital employee experience (DEX) is a central priority, with providers offering AI analytics to proactively address operational issues [5] - Subscription-based device-as-a-service (DaaS) models are being embraced for lifecycle management and cost predictability [5] Market Evaluation and Leadership - The 2025 ISG Provider Lens Future of Work Services report evaluates 40 providers across six quadrants, identifying leaders such as Swisscom, TCS, and Wipro [9][10] - Microland is recognized as the global ISG CX Star Performer for 2025, achieving the highest customer satisfaction scores [12]

Core Insights - Sitma USA has expanded its partnership with Ricoh USA to provide comprehensive solutions for packaging, mailing, and fulfillment operations [1][2] - The collaboration enhances Ricoh's ability to offer complete workflow solutions from print production to final packaging [2][3] - Sitma USA specializes in automated packaging systems for high-volume print, mail, and e-commerce industries, with a diverse portfolio [3][4] Company Overview - Sitma USA is a Tecnau company that focuses on paper handling, processing, and finishing systems for the digital printing market [1][3] - Ricoh operates in 200 countries and regions, enhancing its service capabilities through this partnership [5] Partnership Details - The expanded partnership builds on previous joint projects, including a significant enterprise installation where Ricoh played a central role [4] - Both companies emphasize their commitment to innovation and customer success, viewing this partnership as beneficial for the industry [4]

Core Insights - The introduction of the $25 MOS Technology 6502 processor in 1975 revolutionized the computing industry by making microprocessors affordable for hobbyists and startups, contrasting with the $175-200 price range of competitors like Intel's 8080 and Motorola's 6800 [1][3][6] Group 1: Historical Context - In the 1970s, microprocessors were expensive, limiting access to companies and laboratories, which prompted Chuck Peddle and his team to create a simpler, cheaper CPU [3][8] - The 6502 was first showcased at the WESCON exhibition in 1975, where it gained immediate attention, leading to a significant price reduction from competitors [6][11] Group 2: Design and Features - The 6502 utilized approximately 4,500 transistors, which was 25-40% fewer than its competitors, resulting in a smaller chip size and lower production costs [8][10] - It featured a minimalist architecture with essential components, including an 8-bit accumulator, two index registers, a stack pointer, and a 16-bit program counter, which contributed to its efficiency [8][10] - The instruction set was streamlined, retaining only 56 out of 72 instructions from the Motorola 6800, which improved execution speed despite requiring programmers to use simpler instructions for complex tasks [10][11] Group 3: Impact on the Industry - The 6502 became the preferred processor for early personal computers, being used in products like the Apple I, Apple II, Commodore PET, and Atari 2600, thus democratizing computing [10][11][13] - Its design philosophy foreshadowed the RISC movement, emphasizing simplicity and efficiency, which influenced the development of modern CPU architectures, including ARM [13][14] Group 4: Legacy - The 6502's design principles continue to resonate today, with Western Design Center still producing derivatives of the chip, highlighting its enduring relevance in retro computing and embedded systems [14]

Financial Data and Key Metrics Changes - EBITDA increased from €11.1 million in Q1 to €19.6 million in Q2, representing a 77% improvement [2] - Overall sales declined by 7%, leading to a 35% decrease in EBITDA and a margin drop from 13.7% to 9.6% year on year [3][4] - Earnings after taxes turned negative at €11.2 million, but the company maintains a solid financial footing with an equity ratio of 45.5% and cash reserves of approximately €113 million [4][12] Business Line Data and Key Metrics Changes - Semperit Industrial Applications saw a 4.7% decline in sales and a 19.2% decrease in EBITDA year on year, with margins at 18.1% [5] - Semperit Engineered Applications experienced a 9% drop in sales and a 46.9% decline in EBITDA compared to the previous year [7][8] - The hoses business showed signs of recovery with improved order intake, while the profiles segment continues to struggle due to a weak construction industry [6][9] Market Data and Key Metrics Changes - The overall order book and order intake for the first six months are higher than last year's comparable figures, indicating a recovery trend [3][24] - The construction industry is expected to turn around in 2026, but short-term benefits are not anticipated [25] Company Strategy and Development Direction - The company is focused on optimizing costs and expanding its profile business in the U.S. market [25][26] - There is an ongoing effort to explore inorganic growth opportunities through potential acquisitions that can leverage existing business [28] - The company aims to maintain a resilient balance sheet while investing in digitalization projects [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a recovery in the second half of the year, driven by improved order intake and market dynamics [24][27] - The company confirmed its guidance for operating EBITDA in the range of €65 million to €85 million for 2025 [4][27] - Management acknowledged uncertainties but emphasized a positive momentum in customer restocking and order processing [24][27] Other Important Information - The company paid a dividend of $0.50 per share, totaling $10.3 million, signaling confidence in its business model [13][22] - Free cash flow was reported at €13.9 million, with capital expenditures halved to €18.5 million year on year [17][22] Q&A Session Summary Question: Order dynamics in Q2 and summer months - Management noted a gradual increase in order intake starting in April, continuing through July, with a stronger order book compared to the previous year [31][32] Question: Revenue generation expectations for Q3 - Management is hopeful for a good Q3 and Q4, but noted potential impacts from weather and shipping activities [33] Question: CapEx reduction from €60 million to €50 million - The reduction is primarily a period shift related to specific growth projects, particularly in the U.S. railway systems [34] Question: Pricing dynamics and revenue increase - Pricing management has been proactive, with approximately €3 million of revenue attributed to price increases, though some businesses experienced price decreases [40][41] Question: Working capital development and operating cash flow - Management is confident in maintaining tight working capital targets and believes operating cash flow will cover the €50 million CapEx [42][44] Question: Impairment in the LSI business - Management provided assurance that the impairment was based on a comprehensive review and that there is remaining headroom for the Ricoh business [51][52] Question: Impact of Continental's spin-off on business - No concrete evidence of impact was reported, but management suggested it could be positive [56] Question: Current situation in the hoses business - The company is building up capacity and hiring to meet increased demand [60][61] Question: Margin quality of belting orders - Margin quality remains volatile, with improvements noted in the second quarter, but still lower than two to three years ago [67][70] Question: Impact of U.S. tariffs on business - The uncertainty from tariffs had a significant impact, but the current situation allows for better planning and has led to an uptick in order activity [76][78]

Core Insights - The global UV curable ink market is projected to reach approximately $3,452 million in 2024, with a compound annual growth rate (CAGR) of 14.9%, expected to reach $8,951 million by 2031 [2][3] Group 1: Market Overview - The report provides in-depth analysis of product sales, revenue, pricing, growth rates, market share, and competitors, covering historical data from the past five years and future market trends [2][3] - The report aims to assist companies in making informed strategic decisions to reduce losses and increase revenue [2] Group 2: Key Players - Major companies studied in the report include DIC, Toyo Ink Group, Siegwerk, T&K Toka Corporation, Ricoh, Flint Group, Hewlett-Packard, Gans Ink & Supply, NUtec Digital Ink, Hanghua Ink, Letong Ink, Yangzi Ink, Kingswood Inks, and Tianjin Tiannv Chemical [3] Group 3: Product Types - The report categorizes UV curable inks into several types: sheet-fed UV curable inks, screen printing UV curable inks, flexographic UV curable inks, gravure UV curable inks, and digital printing UV curable inks [3] Group 4: Application Areas - Key application areas for UV curable inks include automotive products, consumer goods, medical applications, publishing and printing, among others [3] Group 5: Analytical Focus - The report includes forecasts for UV curable ink sales and revenue by region/country, performance analysis of companies, tracking of product categories, and insights into application areas [4]