Financial Highlights July 28, 2020 Ricoh Leasing Company, Ltd. - - PowerPoint PPT Presentation

First Quarter of Fiscal Year Ending March 2021 (FY2020)

Financial Highlights

July 28, 2020

Ricoh Leasing Company, Ltd.

Intentionally blank

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Table of Contents

• 1. Consolidated Results for the First Quarter of

Fiscal Year Ending March 2021

• 2. Performance by Segment
• 3. Consolidated Income Forecast for Fiscal Year

Ending March 2021

• 4. Reference Material

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• 1. Consolidated Results for the First

Quarter of Fiscal Year Ending March 2021

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Financial Performance Overview for the First Quarter of Fiscal Year Ending March 2021

• 1. Net sales increased and profit decreased

Net sales increased for 11 consecutive periods, and gross profit rose for 7 consecutive periods, both posting new record highs. Operating profit and net income decreased due to an increase in allowance for doubtful accounts caused by the impact of COVID-19.

• 2. Operating Assets 978.1 billion yen (16.3 billion yen decrease

from the end of the previous fiscal year)

Early repayments of large receivables Transaction volume declined in the first quarter of the current fiscal year due to the impact

• f COVID-19.
• 3. Full-year forecast for the fiscal year ending March 2021 remains

unchanged.

Targets under the FY2020 – FY2022 Mid-term Management Plan released on May 8 to be announced as soon as a projection for the future is made

• 4. Segments were changed starting the first quarter of the fiscal

year ending March 2021.

* In this document, “Profit Attributable to Owners of Parent” is listed as “Net Income.”

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Finance Leases Operating Leases Installment Sales Rental Leases and Installment Sales Business Financial Services Business Leases & Finance Business Services Business Investment Business Loans Commission Business

• Collection Agency Services
• Factoring Services for

Healthcare & Nursing-Care Facilities Housing Rental Finance Leases Operating Leases Installment Sales Rental Loans Collection Agency Services Factoring Services for Healthcare & Nursing-Care Facilities Housing Rental and Real Estate Solar Power Generation Solar Power Generation Others

Former segments New segments

Outline of Segment Changes

• In accordance with changes in management segments, reporting segments were

changed in the first quarter of the current fiscal year.

• Net sales increased due to the effects of accumulating operating assets of previous

fiscal year and making early repayments of large receivables.

• We carefully examined the effects of COVID-19 disaster and recorded an allowance

for doubtful accounts for individual receivables.

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Consolidated Results

* Actual ROA and ROE are annualized numerical figures

(Billion Yen)

2020/3 2021/3 1Q Actual 1Q Actual Growth Rate Full-year Forecast

82.0 91.2 11.2% 330.4 27.6% 8.6 9.3 7.6% 36.9 25.3% 4.0 6.1 49.8% 20.2 30.4%

Provision of Allowance for Doubtful Accounts

0.3 2.0 485.6% 3.2 64.3% 4.5 3.1 (30.3%) 16.7 19.0% 4.6 3.1 (32.1%) 16.4 19.1% 3.1 2.1 (32.2%) 11.3 19.2%

YoY change

ー ー ー 95.00 － 102.69 70.26 (32.43) 366.59 － ー ー ー 25.9% － 1.21% 0.74% (0.47%) 0.97% － 7.3% 4.8% (2.5%) 6.1% －

Progress Rate Gross Profit Earnings per Share(yen) Dividend Payout Ratio Selling, General and Administrative Expenses ROA（Return on Asset Ratio） ROE（Return on Equity Ratio） 2021/3 Net Sales Operating Profit Ordinary Profit Net Income Dividend per Share(yen)

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Gross Profit

4.55

billion yen

3.17

billion yen

(0.07) +0.11

1.38 billion yen

(0.14) (0.18) +0.16

Leases & Finance Business

+0.45 (1.70)

Factors Affecting Operating Profit

Selling, General and Administrative Expenses

Allowance for Doubtful Accounts Human Resources Other Expenses

(Billion Yen)

21/3 1Q Actual 20/3 1Q Actual

Financial Expenses

Gross Margin for Leases and Installment Sales Business

Gross Margin for Loans

Gross Margin for Services and Investment Business

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Consolidated Balance Sheets

• Total assets increased from the end of the previous fiscal year in order to maintain

the balance of cash on hand for cope with liquidity risk.

* Allowance for doubtful accounts shows the total of current assets and non-current assets. * Current portion of the long-term liabilities within one year is included in long-term borrowings and bonds payable. (Billion Yen) 2020/3 2020/3 Actual End of 1Q Actual

Increase/Dec rease at the End of the Previous Term

Actual End of 1Q Actual

Increase/Dec rease at the End of the Previous Term

Cash and deposits

0.8 67.4 66.5

Short-term borrowings and Commercial papers

67.2 64.1 (3.0)

Lease receivables and investments in leases

597.5 589.5 (7.9)

Long-term borrowings and Bonds payable

752.3 813.3 61.0

Installment receivables

172.1 161.3 (10.7)

Long-term payables under securitization of lease receivables

40.0 40.0 0.0

Accounts receivable

• operating loans

181.6 181.3 (0.3)

Other liabilities

109.4 98.4 (11.0)

Other current assets

119.0 117.2 (1.8)

Total liabilities

969.0 1,015.9 46.8

Assets for lease

50.2 50.5 0.3

Total net assets

181.6 182.5 0.9

Other non-current assets

38.8 42.4 3.5

Allowance for doubtful accounts

(9.6) (11.3) (1.6)

Total assets

1,150.7 1,198.5 47.8 1,150.7 1,198.5 47.8 2021/3 2021/3

Total liabilities and net assets

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(Billion yen)

Operating Assets and Default Rate

• Operating assets decreased by

16.3 billion yen from the end of the previous fiscal year due to early repayments of large receivables and a decline in transaction volume.

• Default loss amount showed a

slight increase, and the default rate remained at almost the same level.

* Default rate = Default loss amount / Average balance of operating assets (default rate has been calculated by annualizing the default loss amount for the first quarter of 21/3) * The balance of operating assets includes the amount of securitization of lease receivables (Amount of Securitized Lease Receivables for the first quarter of 21/3: 24.6 billion yen). * Loans up to 19/3 include group finance loans.

562.7 576.1 589.8 622.1 614.2 20.8 23.0 29.0 30.5 30.7 95.8 111.3 133.1 152.9 142.3 129.2 143.7 160.6 181.6 181.3 2.0 9.2 31.7 34.1 808.6 856.3 921.9 1,019.1 1,002.7

0.18% 0.17% 0.17% 0.16% 0.16%

17/3 18/3 19/3 20/3 21/3 1Q Investment Business Loans Installment Sales Operating Leases Finance Leases Default Rate

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(Billion yen) (Billion yen)

 Total Procurement Amount  Financial Expenses and Financial Expenses Ratio

Total Procurement Amount and Financial Expenses

• Interest-bearing debt temporarily

increased due to securing cash on hand.

• Carried out financing while

managing and controlling liquidity risk and interest rate fluctuation risk

* Securitization of receivables includes off- balance sheet financing. * Current portion of the long-term liabilities within one year is included in long-term debts and corporate bonds.

• Financial expenses increased due to

an increase in interest-bearing debt.

* Financial expenses ratio = Financial expenses / Average balance of operating assets * For the first quarter of 21/3, financial expenses ratio has been calculated by annualizing financial expenses.

0.31 0.28 0.25 0.25 0.33 0.85 0.80 0.76 0.87 1.16 1.08 1.02 1.12 0.15% 0.13% 0.12% 0.12% 0.13%

• 0.50%
• 0.30%
• 0.10%

0.10% 0.30%

17/3 18/3 19/3 20/3 21/3 1Q

2-4Q 1Q Financial Expenses Ratio

112.1 111.0 96.2 67.2 64.1 554.5 595.6 658.9 752.3 813.3 20.0 20.0 20.0 60.0 60.0 686.6 726.6 775.2 879.5 937.4

17/3 18/3 19/3 20/3 21/3 1Q

Payables under securitization of Lesase receivables Long-term borrowings・Bonds payable Short-term borrowings・CP

Intentionally blank

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2．Performance by Segment

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Finance Leases Operating Leases Installment Sales Rental Leases and Installment Sales Business Financial Services Business Leases & Finance Business Services Business Investment Business Loans Commission Business

• Collection Agency Services
• Factoring Services for

Healthcare & Nursing-Care Facilities Housing Rental Finance Leases Operating Leases Installment Sales Rental Loans Collection Agency Services Factoring Services for Healthcare & Nursing-Care Facilities Housing Rental and Real Estate Solar Power Generation Solar Power Generation Others

Former segments New segments

Outline of Segment Changes (Repeat)

• In accordance with changes in management segments, reporting segments were

changed in the first quarter of the current fiscal year.

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Performance by Segment

 Net sales and profit  Operating Assets

• Leases & Finance Business continued improvement of return on assets. Though Gross profit increased,

Segment profit declined due to an increase in allowance for doubtful accounts.

• Both Services Business and Investment Business saw increases in sales and profits.

(Billion Yen) (Billion Yen) * The balance of operating assets includes the amount of the securitizations of lease receivables

2020/3 Actual End of 1Q Actual

Increase/Decrease at the End of the Previous Term

987.4 968.6 (18.7) 31.7 34.1 2.3 2021/3 Leases & Finance Business Investment Business 2020/3 1Q Actual 1Q Actual Growth Rate

Net Sales

80.5 89.3 10.9%

Segment Profit

4.4 3.1 (30.3%)

Net Sales

1.3 1.3 2.3%

Segment Profit

0.3 0.3 4.6%

Net Sales

0.1 0.5 249.1%

Segment Profit

0.0 0.1 282.8% 2021/3 Leases & Finance Business Services Business Investment Business

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Actual Results of Leases ＆ Finance Business

 Transaction Volume by Contract  Leases and Installment Sales Transaction Volume by Product

• We curbed activities to acquire new contracts following the declaration of a state of emergency.
• Since June, we have continued non-face-to-face sales activities through telephone and online meetings as a precaution

against COVID-19.

2020/3 1Q Actual 1Q Actual Growth Rate

Office and IT-Related Equipment 48.6 40.7 (16.2%) (6.3%) Medical Equipment 9.2 8.2 (10.8%) (13.8%) Industrial Machinery 12.0 5.6 (53.7%) (46.0%) Commercial and Service Equipment 9.7 7.6 (21.6%) (16.8%) Transport Equipment 5.4 5.1 (5.2%) (11.1%) Others 13.2 8.9 (32.6%) (22.4%) 98.5 76.4 (22.4%) (16.3%) Environmental Field 10.8 4.1 (61.6%)

2021/3

Total Transaction Volume for Leases and Installment Sales

Japan Leasing Association (cumulative total from 20/4 to 20/5) Growth Rate

(Billion Yen) (Billion Yen) * The Transaction Volume for Leases and Installment Sales for the Environmental Field is included in the transaction volume of the above.

2020/3 1Q Actual 1Q Actual Growth Rate Finance Leases 70.0 57.3 (18.1%) Operating Leases 4.4 4.8 9.7% Total Leases 74.4 62.2 (16.4%) Installment Sales 24.0 14.1 (40.9%) 98.5 76.4 (22.4%) Loans Transaction Volume 9.7 7.1 (26.2%) 108.2 83.6 (22.7%) Total Transaction Volume for Leases and Installment Sales Total Transaction Volume for Leases & Finance Business 2021/3

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Actual Results of Services Business

 Number of Transactions in Collection Agency Services

（million cases）

 Transaction Volume of Factoring Services for Healthcare & Nursing- Care Facilities

(Billion yen)

• Number of new contracts of Collection Agency Services decreased due to activities for new contract

acquisition being curtailed.

• Factoring Services for Healthcare & Nursing-Care Facilities was driven by an increase in the number of

stores of existing customers.

4.22 4.38 4.88 5.38 5.52 13.32 13.80 15.19 16.81 17.55 18.19 20.07 22.19 17/3 18/3 19/3 20/3 21/3 1Q 1Q 2-4Q 14.1 17.1 18.6 25.1 24.9 46.5 54.9 59.4 75.5 60.6 72.0 78.1 100.6 5.9 6.7 7.9 11.1 10.8

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5 0.0 20.0 40.0 60.0 80.0 100.0 120.0 17/3 18/3 19/3 20/3 21/3 1Q 1Q 2-4Q Balance

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Actual Results of Investment Business

 Investment Amount  Operating Assets

(Billion yen)

• Solar Power Generation made progress as planned.
• Housing Rental and Real Estate Business maintained a cautious stance.

2020/3 Actual End of 1Q Actual

Increase/Decrease at the End of the Previous Term

Solar Power Generation Business

8.3 10.0 1.7

Housing Rental and Real Estate Business

23.4 24.0 0.6

Total Operating Assets of Investment Business

31.7 34.1 2.3

2021/3

(Billion yen)

2020/3 1Q Actual 1Q Actual Growth Rate

Solar Power Generation Business

0.5 1.8 239.7%

Housing Rental and Real Estate Business

1.4 0.7 (49.4%)

Total Investment Amount

1.9 2.5 30.8% 2021/3

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３．Consolidated Income Forecast for Fiscal Year Ending March 2021

*There is no change in FY2020 consolidated income forecast announced on May 8,2020. * The Company assumes that the consolidated income forecast for the fiscal year ending March 31, 2021 will see an impact from the spread of COVID-19 particularly in the first quarter, although the impact may fluctuate depending on the timing of containment and the effects on the economy along with other

• factors. If the need arises to adjust the income forecast going forward, we will

promptly make a disclosure.

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Consolidated Income Forecast

(Billion yen)

• Lower sales and lower profit are expected due mainly to the impact of COVID-19.
• Dividend per share of 95 yen, an increase for 26 consecutive periods, and a dividend payout ratio of

25.9% are expected.

Full-year Actual Growth Rate Full-year Forecast Growth Rate

Net Sales 332.2 5.8% 330.4 (0.6%) Gros Profit 35.1 6.8% 36.9 4.9% 18.1 15.9% 20.2 11.2% Provision of Allowance for Doubtful Accounts 2.8 76.4% 3.2 11.1% Operating Profit 17.0 (1.5%) 16.7 (1.9%) Ordinary Profit 17.0 (1.7%) 16.4 (4.0%) Net Income 11.8 (1.0%) 11.3 (4.5%) YoY change YoY change Dividend per Share(yen) 90.00 10.00 95.00 5.00 Earnings per Share(yen) 382.80 0.20 366.59 (16.21) Dividend Payout Ratio 23.5% 2.6% 25.9% 2.4% ROA (Return on Asset Ratio) 1.08% (0.11%) 0.97% (0.11%) ROE (Return on Equity Ratio) 6.6% (0.4%) 6.1% (0.5%)

2020/3 2021/3

Selling, General and Administrative Expenses

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(0.57) (0.70) ＋1.00

16.70

billion yen

Gross Profit Selling, General and Administrative Expenses

17.01

billion yen

(0.28) ＋0.14 ＋0.85 (0.44) (0.32)

(Billion yen)

• The speed of accumulating operating assets will slow down, due mainly to a decrease in transaction volume

caused by COVID-19.

• Based on the strategy for enhancement organizational strength, investments to reinforce the business foundation

(human resources, IT infrastructure) will continue, and an allowance for doubtful accounts will increase.

Forecast on Factors Affecting Operating Profit

0.31

billion yen

Leases & Finance Business Gross Margin for Leases and Installment Sales Business

Gross Margin for Loans

Gross Margin for Services and Investment Business

20/3 4Q Cumulative Total

Human Resources Strategic Expenses Other expenses Allowance for Doubtful Accounts Financial Expenses

21/3 Full-Year Forecast

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Breakdown of Operating Assets — Forecast

(Billion yen)

* Pre-deduction balance of securitizations of receivables, etc.

Actual

Year-on-Year Increase/ Decrease

Forecast

Year-on-Year Increase/ Decrease

Finance Leases

622.1 32.3 627.0 4.8

Operating Leases

30.5 1.5 31.0 0.4

Total Leases

652.7 33.9 658.0 5.2

Installment Sales

152.9 19.7 158.0 5.0 805.7 53.6 816.0 10.2

Loans

181.6 21.0 206.0 24.3

Leases ＆ Finance Business

987.4 74.7 1,022.0 34.5

Investment Business

31.7 22.4 65.0 33.2

Total Operating Assets

1,019.1 97.2 1,087.0 67.8 2020/3 2021/3

Total Transaction Volume for Leases and Installment Sales

４．Reference Material

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Consolidated Statements of Income

(billion yen)

1Q Actual Growth Rate 1Q Actual Growth Rate Full-year Forecast Growth Rate

Net Sales 82.0 4.8% 91.2 11.2% 330.4 (0.6%) Leases 59.1 3.1% 61.3 3.8% 233.1 (2.2%) Installment Sales 12.9 6.6% 12.4 (3.7%) 53.2 4.1% Loans 0.7 7.5% 0.8 17.4% 3.8 15.7% Commission Received 1.4 5.1% 1.4 (1.1%) 6.1 (0.5%) Others 7.7 16.2% 15.1 94.8% 34.2 2.7% Cost of Sales 73.3 4.6% 81.9 11.7% 293.5 (1.2%) Leases 53.4 2.5% 55.4 3.7%

• Installment Sales

12.2 6.1% 11.6 (4.3%)

• Financial Expenses

0.2 1.4% 0.3 28.1%

• Others

7.4 19.3% 14.4 94.6%

• Gross Profit

8.6 7.1% 9.3 7.6% 36.9 4.9% 4.0 9.4% 6.1 49.8% 20.2 11.2% Operating Profit 4.5 5.1% 3.1 (30.3%) 16.7 (1.9%) Ordinary Profit 4.6 5.5% 3.1 (32.1%) 16.4 (4.0%) Net Income 3.1 5.9% 2.1 (32.2%) 11.3 (4.5%)

2021/3 2021/3 2020/3

Selling, General and Administrative Expenses

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<Contact> Corporate Planning Department Tel : 03-6204-0608 Email : ir@rle.ricoh.co.jp URL : https://www.r-lease.co.jp Ricoh Leasing Company, Ltd.