Ricoh Leasing Company, Ltd. Performance Summary (Fiscal Year Ended - PowerPoint PPT Presentation

Fiscal Year Ended March 2017 (FY2016) Briefing on Financial Results April 28, 2017 Ricoh Leasing Company, Ltd.

Performance Summary (Fiscal Year Ended March 2017)  Net Sales: 291,116 million yen Posted another record high for the third consecutive period  Operating Profit: 17,333 million yen Expanded income for three consecutive periods; posted another record high  Net Income: 11,772 million yen Posted another record high for the second consecutive period  Total Operating Assets (substantial): 808,686 million yen Posted another record high for the 6th consecutive period  Transaction Volume:369,037 million yen Posted another record high for the fourth consecutive period 1

1. Performance Overview (Fiscal Year Ended March 2017) 2

Consolidated Results (100 millions of yen, %) 16/3 17/3 Medium-Term Ratio Growth Management Actual Forecast Actual against Strategy Rate Forecast Target Net Sales 2,758 2,800 2,850 2,911 102.1 5.5 Gross Profit 303 - 310 311 100.5 2.6 SGA Expenses 134 - 137 138 100.9 3.0 Operating Profit 169 175 173 173 100.2 2.3 (Operating Profit / Net Sales) 6.1 6.3 6.1 6.0 - (0.1) Ordinary Profit 168 - 171 171 100.5 2.0 Net Income 110 109 115 117 102.4 6.5 Variance Year-on-year in forecast change (in yen) 353.96 - 368.39 377.12 8.73 23.16 Earnings Per Share 55.00 - 60.00 60.00 0.00 5.00 Dividend Per Share *The Medium-Term Management Strategy Target represents figures announced on April 25, 2014. Forecast figures are those announced on April 28, 2016. “Profit Attributable to Owners of Parent” is presented as “Net Income.” 3

Factors Affecting Operating Profit Gross Profit calculation SGA Expenses Allowance for (100 millions of yen) Doubtful Accounts Increase in  3 +3 Increase in 400 Expenses +3 million  1 Decrease in yen Financial +2 Expenses Cancellation of Large Increase in Increase in Contracts, Financial Gross Margin etc. Income for the Leases 17,333 and Installment Sales Business million yen ± 0 17,033 16,951 million yen million yen 16/3 Actual 17/3 Actual 17/3 Actual (Excluding factors on the right) 4

Transaction Volume by Business (100 millions of yen, %) 16/3 17/3 Growth Growth Actual Actual Rate Rate Finance Leases 2,663 2,599 1.6 (2.4) Operating Leases 127 125 1.7 (1.4) Installment Sales 547 12.8 637 16.5 Leases and Installment 3,337 3,362 3.3 0.7 Sales Business Financial Services 264 327 1.7 24.0 Business 3,601 3,690 Total Transaction Volume 3.2 2.5 * Transaction volumes are calculated on an inspection basis. 5

Transaction Volume by Product: Leases and Installment Sales Business (100 millions of yen, %) Japan Leasing Association 16/3 17/3 Total (16/4–17/3) Growth Growth Actual Forecast Actual Difference Rate Rate Office and IT-Related 1,794 1,800 1,801 1 0.4 (2.3) Equipment 432 455 415 (39) Medical Equipment (3.8) 2.0 337 356 321 (34) Industrial Machinery (5.0) (8.7) Commercial and 328 335 335 0 2.3 2.3 Service Equipment Transport Equipment 139 144 168 24 20.2 2.3 Others 305 310 320 10 4.9 1.6 Total Transaction Volume 3,337 3,400 3,362 (37) 0.7 (1.3) * Forecast figures are those announced on October 21, 2016. 6

Operating Results by Segment (Leases and Installment Sales Business) Net sales Segment Profit (left bar) (right bar) (100 millions 2,818 of yen) 2,673 2,511 (100 2,500 2,388 millions 2,277 of yen) 200 2,000 154 146 144 142 1,500 150 138 1,000 100 500 50 0 0 13/3 14/3 15/3 16/3 17/3 7

Operating Results by Segment (Financial Services Business) Net Sales Segment Profit ( Commission Received) (100 68.8 millions of yen) 65.3 59.4 60 54.4 49.6 40 33.2 33.1 27.0 26.3 22.7 20 0 13/3 14/3 15/3 16/3 17/3 % of 13.3% 16.8% 16.0% 19.6% 19.2% Operating Profit (Medium-Term Management Strategy Target: 20%) 8

Financial Services Business Collection Agency Services and Factoring Services for Nursing-Care Facilities Number of Monthly Transaction Cases of Collection Agency Services (Unit: 10,000) 170 160 Medium-Term 150 Management 137 Strategy 128 Target 106 92 100 50 Factoring Services for Nursing-Care Facilities - 0 13/3 14/3 15/3 16/3 17/3 Annual Transaction Volume (100 millions of yen) 606 600 600 Medium-Term 471 Management Strategy 400 Target 326 200 198 90 0 13/3 14/3 15/3 16/3 17/3 9

Transition of Gross Profit (Before Deducting Financial Expenses) % of Gross Profit (before deducting Financial Expenses) = Amount of Gross Profit (before deducting Financial 5.18 % of Gross Profit (before Expenses) / Average Operating Assets 4.77 deducting Financial 4.53 4.35 Expenses) 4.21 (100 (%) millions of yen) 323 318 313 300 306 305 Others (Sales 65 58 55 Commission, etc.) 49 53 Operating 26 22 24 25 Loans 23 13 16 18 14 24 Installment 200 Sales 258 260 257 257 252 Leases 221 216 215 213 207 0 13/3 14/3 15/3 16/3 17/3 *Gross Profit (before deducting Financial Expenses): Net Sales - Cost of sales. The sum of each product sales amount net of Cost of Sales is the Gross Profit before Financial Expenses deduction. 10 10

Operating Assets and Changes in Default Rate Default Rate = Default Loss Amount / 0.37 Average Operating Assets 0.25 0.18 0.18 0.19 (100 Default Rate millions of (%) yen) 8,086 7,773 8,000 7,354 1,292 6,978 Loans 1,231 7,000 1,142 6,333 1,099 958 Installment 837 Sales 6,000 725 1,039 612 Leases (including 508 securitized portions) 5,000 4,000 5,836 5,704 5,486 5,265 (247) (247) 4,785 (246) (245) (244) 13/3 14/3 15/3 16/3 17/3 *Balances shown include securitized portions of lease receivables. 11

Total Procurement Amount and Financial Expenses Financial Expenses Ratio = Financial Expenses / Average Operating Assets 0.34 0.30 0.22 0.20 0.15 Procurement Rate(%) (100 millions of yen) Liabilities 6,866 6,710 7,000 outstanding 6,337 Short- 5,988 term 6,000 5,425 Long 5,000 -term 4,000 3,000 Financial 20 2,000 19 Expenses 15 14 1,000 11 [External Rating] JCR AA- 0 R&I A 13/3 14/3 15/3 16/3 17/3 S&P A- *Liabilities outstanding represent the balance including the amount of procurement through securitized portions of lease receivables. Financial expenses shown are expenses included in the calculation of gross profit. 12 12

Changes in Selling, General and Administrative Expenses Figures in parentheses (100 Allowance for Personnel represent the number of millions of Doubtful Others employees at fiscal year-end Expenses yen) Accounts on consolidated basis 150 138 134 133 11 125 115 7 9 4 (10) 100 67 67 63 64 62 (900) (894) (917) (928) (916) 126 125 127 123 121 50 62 59 58 59 59 13/3 14/3 15/3 16/3 17/3 13 13

2. Mid-Term Management Plan (FY2017 to FY2019) 14

Current Business Environment • Change in value “from ownership to use” and “ from products to services ” • Stagnation in domestic capital investments, leasing market; concerns about the impact of IFRS • Low default rate and market interest rate despite concerns about a turnaround • Change in population trends (declining number of children, aging population, lower ratio of working- Customers/ age population) • Technological innovation, e.g., AI, robotics and IoT Markets • Overcoming environmental energy restrictions and expansion of investment (energy-saving/energy- creation markets) • Intensified competition with other industries, such as regional banks (monetary relaxation / lowering of market interest rates) and lowering of industrial barriers • Expansion of business platforms and earnings platforms through new businesses beyond financial boundaries and advancement of international businesses • Growth and expansion through capital alliances, acquisitions Competitors • Strengthening of earning power and improvement of corporate structure through enhancement of strong areas and specialty areas • Investment for the future in fields such as robotics, smart agriculture and IoT • Decline in the composition ratio of office and IT-related equipment, which used to account for a high percentage Company • Asset in which the traditional eases and installment sales business accounts for a large percentage • Delay in entering new business areas due to restrained investment 15

Mid-Term Management Plan — Vision Beyond leasing 16

What “Beyond Leasing” Signifies Expansion of business areas Business Areas Grow to become a company that Leases and can not only provide Installment Sales services/products in leasing and Advance into new businesses Financial Services financial services markets but also around the core business offer ones that contribute to the fields by responding to development of the environment, Expansion of core businesses customers’ expectations. society and customers. FY2014–FY2016 Mid-Term FY2017–FY2019 Mid-Term Next-period Mid-Term Management Plan Management Plan Management Plan • Enter new business areas and take risks in order to achieve business growth and income growth. • Pursue research/development of businesses and products to respond to the expectations of customers and to further get a head start on future expectations. 17