Ricoh Leasing Company, Ltd. Table of Contents 1. Consolidated - - PowerPoint PPT Presentation

Second Quarter of Fiscal Year Ending March 2018 (FY2017) Briefing on Financial Results October 20, 2017

Ricoh Leasing Company, Ltd.

Table of Contents

• 1. Consolidated Results for the Second Quarter of

Fiscal Year Ending March 2018

• 2. Topics on Mid-Term Management Plan

(FY2017 to FY2019)

• 3. Consolidated Income Forecast for the Fiscal Year

Ending March 2018

• 4. Reference Materials

Forward-looking statements including earnings forecasts contained in this document are based on certain assumptions deemed to be rational in light of the information available to the Company at the time of preparing the document, and are not intended to be guarantees of future performance. Actual results may differ significantly from plans and forecasts due to a variety of factors.

2

• 1. Consolidated Results for the Second

Quarter of Fiscal Year Ending March 2018 (FY2017)

3

 Net Sales : 151,181 million yen Expanded income for eight consecutive periods; posted another record high  Operating Profit : 8,455 million yen Progress as expected  Net Income : 5,761 million yen Progress as expected  Total Operating Assets (substantial): 830,030 million yen Posted another record high  Transaction Volume:192,736 million yen Posted another record high Performance Overview

4

Consolidated Results

• Net Sales increased due to steady accumulation of Operating Assets. Posted another record high for the eighth

consecutive period.

• Operating Profit progressed as expected by absorbing factors such as the decline in return on assets and the

reaction to early cancellation of a large contract in the Leases and Installment Sales Business in the previous year.

5

* In this document, “Profit Attributable to Owners of Parent” is presented as “Net Income.” * Actual ROA and ROE represent annualized figures. (100 millions of yen)

16年9月期 実績 実績 伸率 売上高 1,448

1,511

4.4% 2,973 50.9% 売上総利益 156

155

△0.9% 313 49.7% 販売管理費 68

70

3.1% 145 48.9% 営業利益 88

84

△3.9% 168 50.3%

（営業利益率） 6.1% 5.6% △0.5% 5.7% －

経常利益 87

83

△4.0% 165 50.7% 当期純利益 60

57

△4.3% 113 51.0%

前年差

１株当り配当金（円） 30.00

35.00

5.00 70.00 － １株当り純利益（円） 192.93

184.58

△8.35 361.99 － 配当性向 15.5%

19.0%

3.4% 19.3% － ROA （総資産当期純利益率） 1.36%

1.24%

△0.12% 1.21% － ROE （自己資本利益率） 8.2%

7.3%

△0.9% 7.1% － 17年9月期 通期予想 進捗率 16/9 Actual

Net Sales Gross Profit SGA Expenses Operating Profit (Operating Profit / Net Sales) Ordinary Profit Net Income Dividend per share Earnings per share Dividend Payout Ratio ROA (Return on Assets Ratio) ROE (Return on Equity Ratio)

17/9 Actual Growth Rate Full-year forecast Progress rate

Year-on-year change

( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )

Gross Profit calculation SGA Expenses

8,800 million yen

Increase in Allowance for Doubtful Accounts

16/9 Actual

Increase in Financial Income Increase in Expenses Decrease in Financial Expenses

8,455 million yen

17/9 Actual

+0.5 (0.9) (1.2)

Factors Affecting Operating Profit

(100 millions of yen)

6

(2.2) +0.3 +0.0

Decrease in revenues mainly due to early cancellation Gross margin for the Leases and Installment Sales Business

 Leases and Installment Sales Business  Financial Services Business

Performance by Segment

• In the Leases and Installment Sales Business, although sales increased due to a rise in the Operating Assets, profits

declined mainly as a reaction to early cancellation of a large contract.

• The Financial Services Business posted higher income on higher sales thanks to the favorable commission

business, including Collection Agency Services and Factoring Services for Nursing-care Facilities.

(100 millions of yen) (100 millions of yen)

* % of operating profit = Financial Services Business segment profit / Operating profit

7

1,173 1,246 1,320 1,402 1,460 70 71 71 74 70

20 40 60 80 100 120 140 200 400 600 800 1,000 1,200 1,400 1,600 1,800

13/9 14/9 15/9 16/9 17/9

Net sales Segment income (right bar)

27 29 32 35 36 13 13 16 16 17 16.3% 16.9% 19.2% 18.9% 21.2%

0% 10% 20% 10 20 30 40 50 60 70

13/9 14/9 15/9 16/9 17/9

Net sales Segment income (right bar) % of operating income

Segment profit (right bar )

Segment profit (right bar ) % of operating profit

Leases and Installment Sales Business: Transaction Volume by Contract/Product

• Transaction Volume for the core Office and IT-Related Equipment field posted a positive year-on-year growth rate on

a second-quarter basis for the first time in four periods.

• Transaction Volume of Environment-Related Equipment primarily for solar power generation facilities increased

significantly and drove the overall performance.

8

(100 millions of yen) * Transaction Volumes are presented on an inspection basis.

 Transaction Volume by Contract  Transaction Volume by Product

16年9月期 実績 実績 伸率 ファイナンス・リース 1,304 1,336 2.4% 2,600 51.4% オペレーティング・リース 53 72 33.7% 130 55.5% 割賦 293 409 39.5% 650 63.0% リース・割賦事業 合計 1,652 1,818 10.0% 3,380 53.8% 17年9月期 通期予想 進捗率 16年9月期

リース事業協会 (4月-8月累計）

実績 実績 伸率 伸率 事務用・情報関連機器 894 945 5.8% 1,805 52.4% 0.3% 医療機器 216 190 △12.2% 420 45.3% △1.5% 産業工作機械 161 246 52.7% 340 72.5% △12.2% 商業・サービス業用機器 147 154 5.2% 320 48.3% △5.7% 車両・輸送用機器 80 81 2.0% 170 48.0% 0.9% その他 153 199 30.4% 325 61.4% △22.1% リース・割賦事業 合計 1,652 1,818 10.0% 3,380 53.8% △5.9% 17年9月期 通期予想 進捗率 16/9 Actual

Finance Leases Operating Leases Installment Sales

Total

17/9 Actual Growth Rate Full-year forecast Progress rate

16/9 Actual

17/9 Actual Growth Rate Full-year forecast Progress rate

Japan Leasing Association

(Cumulative total from April to August)

Growth Rate

Office and IT-Related Equipment Medical Equipment Industrial Machinery

Commercial and Service Equipment

Transport Equipment Others Total

• (

) ( ) ( ) ( ) ( ) ( )

[Commission Business]

• In Collection Agency Services, web marketing efforts were
• successful. The number of new customers grew steadily and

the number of transactions increased 3.4% year on year.

• In Factoring Services for Nursing-Care Factoring,

Transaction Volume jumped 21.2% year on year as a result

• f capturing new customers and increasing the use of

services by existing customers. [Loans]

• Transaction Volume fell 36.8% as a reaction to large

corporate Loan contract that was in the previous year.

Financial Services Business: Number of Transactions / Transaction Volume

 Cumulative number of transactions in Collection Agency Services  Loan Transaction Volume  Transaction Volume of Factoring Services for Nursing-Care Facilities

(100 millions of yen) (100 millions of yen) (10,000 cases)

9

109 117 139 172 109 138 142 124 154 248 259 264 327 993 1,052 1,106 1,216 1,237 200 400 600 800 1,000 1,200 1,400 100 200 300 400 500 600 14/3 15/3 16/3 17/3 17/9 First half Second half Balance 551 656 785 857 886 601 735 822 897 1,153 1,392 1,607 1,755 14/3 15/3 16/3 17/3 17/9 First half Second half 83 149 217 291 353 114 176 254 314 198 326 471 606 20 32 49 59 69

• 10

10 30 50 70 200 400 600 800 1000 1200 14/3 15/3 16/3 17/3 17/9 First half Second half Balance

• The Operating Assets increased 21,300 million yen from the end of the previous fiscal year and posted another

record high as a result of steadily capturing contracts in the Leases and Installment Sales Business.

• Default Rate declined due to a higher Operating Assets although bad debt slightly increased year on year.

* Default Rate = Default Loss Amount / Average Operating Assets *Operating Assets shown includes securitized portions of lease receivables.

Operating Assets and Changes in Default Rate

10

(100 millions of yen) 5,142 5,327 5,517 5,627 5,695 123 158 187 208 222 612 725 837 958 1,060 1,099 1,142 1,231 1,292 1,321 6,978 7,354 7,773 8,086 8,300 0.25% 0.19% 0.18% 0.18% 0.16%

• 2.50%
• 2.00%
• 1.50%
• 1.00%
• 0.50%

0.00%

14/3 15/3 16/3 17/3 17/9

Loans (Financial services/Other) Installment sales Operating lease Lease Default rate

* Gross Profit = Net Sales - Cost of Sales (excluding Financial Expenses) * % of Gross Profit (before deducting Financial Expenses) = Gross Profit (before deducting Financial Expenses) / Average Operating Assets (For 17/9, the amount of Gross Profit (before deducting Financial Expenses) was doubled to calculate the % of Gross Profit (before deducting Financial Expenses)).

• Gross Profit (before deducting Financial Expenses) declined 1.1% year on year.
• The downward trend in % of Gross Profit (before deducting Financial Expenses) continued due to a decrease in

return on Operating Assets.

Transition of Gross Profit (before deducting Financial Expenses)

11

213 216 215 207 103 14 16 18 24 12 23 24 26 25 12 53 55 58 65 32 305 313 318 323 161 4.77% 4.53% 4.35% 4.21% 4.05%

• 7.50%
• 5.50%
• 3.50%
• 1.50%

0.50% 2.50% 4.50% 6.50%

14/3 15/3 16/3 17/3 17/9

Others (Commission revenue, etc.) Loans Installment sales Lease % of gross profit (before deducting capital cost)

(100 millions of yen)

(Commision Received) (before deducting Financial Expenses)

Interest-bearing debt outstanding

* Financial Expenses Ratio = Financial Expenses / Average Operating Assets * For 17/9, Financial Expenses was doubled to calculate the Financial Expenses Ratio. * The balance includes the amount of procurement through securitized portions of lease receivables. * Current portion of Long-term liabilities is included in long-term debt.

• Interest-bearing debt increased in line with the rise in the Operating Assets.
• Continued to procure funds on low interest rates while Financial Expenses and Financial Expenses Ratio decreased.

Financial Expenses / Financial Expenses Ratio

Total Procurement Amount and Financial Expenses

12

(100 millions of yen) (100 millions of yen) 9 7 7 6 5 9 7 7 5 19 15 14 11 0.30% 0.22% 0.20% 0.15% 0.14%

• 3.00%
• 2.50%
• 2.00%
• 1.50%
• 1.00%
• 0.50%

0.00% 0.50% 14/3 15/3 16/3 17/3 17/9 Second half First half Capital cost ratio 4,528 4,902 5,378 5,745 6,155 1,459 1,434 1,332 1,121 926 5,988 6,337 6,710 6,866 7,082 14/3 15/3 16/3 17/3 17/9 Short-term Long-term

Financial Expenses Ratio

Changes in Selling, General and Administrative Expenses

• While acquired contracts and Operating Assets increased, expenses were maintained at a certain level.
• Bad debt expenses slightly increased.

* OHR = Selling, General and Administrative Expenses - Bad debt expenses) / (Gross Profit + Financial Expenses)

13

(100 millions of yen) 31 32 33 33 33 29 30 30 30 30 1 3 3 5 6 62 66 67 68 70 40.1% 40.1% 40.3% 39.0% 40.2%

20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 20 40 60 80 100 120 13/9 14/9 15/9 16/9 17/9 Bad debt expenses Others Personnel expenses OHR

• 2. Topics on Mid-Term Management Plan

(FY2017 to FY2019)

14 Please refer to the reference materials for strategies under the Mid-Term Management Plan.

195 196 234 241 280 500

15/3 16/3 17/3 18/3 20/3

Topics 1: Initiatives taken in the Environmental Field

Transaction volume in the environmental field

(100 millions of yen)

• Installation site: Nakanojo-machi, Gunma Prefecture
• Contract type: Lease agreement for a solar power generation facility

Medium-Term Management Plan target

Initiative (1) Efforts toward local government bodies Initiative (2) Installation of rooftop solar power generation facility for logistics facilities

Mid-Term Management Plan: Business growth strategy (4) “Taking on challenges in new environmental fields centered on energy- creation and energy-saving”

Continue to make efforts to achieve the medium-term management plan target of 50,000 million yen. Do this by expanding the scope of initiatives to include biomass power generation using waste materials and small hydraulic power generation using local rivers, on top of expanding solar power generation.

• Installation site: Rooftop of logistics warehouses
• Contract type: Installment Sales agreement for a solar power

generation facility

• Coordination between local government

bodies and Ricoh Japan

• Contribution to the environment/regional

revitalization Point

• Response to the decrease in FIT price
• Targeting the logistics industry where

future demand can be expected Point

15

(Full-year projection)

Medium-Term Management Strategy (3) Deployment of lease + service business through collaboration with RICOH Group companies Medium-term management strategy (2) Creation of value provided

• ther than leasing

Business alliance with JS Corporation (“JS”) on “Regeneration/invigoration relating to apartment buildings”

Topics 2: Business alliance with JS Corporation

Mid-Term Management plan: Business growth strategy (5) “Development and provision of financial services to accommodate changes and resolve issues in society” By implementing initiatives under the alliance, efforts are made in an aim to develop financial services, create value for providing products other than leases, and advance collaboration with the RICOH Group.

<Profile of JS Corporation> Representative: Shuichi Hirokane, President & Representative Director Paid-in capital: 30 billion yen Business: Management of apartment buildings, housing renovations, stock management, living support, technical support Shareholders: Urban Renaissance Agency, etc.

Introduction of “apartment complex regeneration loan” for large-scale renovations/improvements

Initiative First round

<Issues associated with apartment complexes>

• Aging of buildings, degrading of facilities over time
• Declining vitality in communities due to rapid aging of

population and decreasing birthrate

<Efforts toward resolving issues>

Development of businesses/products for promoting regeneration/revitalization of apartment buildings

16

Technology/know- how/system on apartment management Insight/network relating to financial services, real estate, etc.

×

JS Ricoh Leasing

Topics 3: Ricoh Leasing’s CSR and Key Issues

(Materiality)

Initiative (1): Implementation of satellite

• ffices

Review key issues amid growing calls to realize a sustainable society based

• n SDGs (sustainable development goals) and the Paris Agreement.

Specified key issues

Realize a working style of being able to work anytime and anywhere to improve productivity and enhance the satisfaction level of employees.

17

Four major themes 13 specified key issues Building a vigorous and strong company

• Promotion of diversity
• Efficient working style reform/Realization of work-

life balance

• Human resource development
• Realization of safe, healthy and comfortable work

environment Creation of common value through business

• Pursuit of customer satisfaction
• Resolution of social issues and contribution to

invigorating the Japanese economy

• Reinforcement of partnerships with group

companies/business partners Contribution to realizing low- carbon society/recycling-based society

• Continuous operation/improvement of workplace

management system

• Mitigation of and adaptation to climate changes
• Resource recycling
• Preservation of biodiversity

Support for revitalization of local communities

• Contribution/donation to local communities /

Restoration support

• Cooperation with local communities
• Creation of working hours
• Mitigation of commuting stress
• Improvement of productivity

Have head office (Toyosu) employees with shorter working hours work at sales offices (Yokohama) that are closer to their homes. Full-scale roll-out of this initiative from the latter half of the year. Effects

Initiative (2): Use of shared office

Sales forces make use of external rental offices to carry out flexible sales and marketing activities (in the Tokyo metropolitan area) Effects

• Creation of time for sales and

marketing activities

• Increase in points of contact with

customers

• 3. Consolidated Income Forecast for the

Fiscal Year Ending March 2018

18

Customers/ Markets Competitors Company

• Recovery of corporate performance against the backdrop of steady external demand,

inbound demand and other factors

• Active investment in demand related to rationalization/energy-saving and inbound

demand

• Low level of corporate bankruptcies, continuation of interest-rate level
• Development of new businesses using new technologies (e.g., AI, IoT, FinTech)
• Active investments in areas of focus, such as aircraft, real estate and overseas
• Initiatives in new methodologies and new areas through business alliances and

collaboration beyond industrial boundaries

• Intensified competition with other industries, such as regional banks (financial

deregulation/decline in interest rates)

• Recovery of the core Office and IT-Related Equipment field
• Steady buildup of renewable energy. Expansion of the scope of initiatives taken for

rooftop and large-scale solar power generation facilities, etc.

• Start of new initiatives, such as launching the housing leasing business and building

an alliance with JS Corporation

• Decline in return on assets due to lower market interest rates and intensifying

competition

Current Business Environment

19

Consolidated Income Forecast

20

(100 millions of yen)

17年3月期 実績 予想 伸率 売上高 2,911

2,973

2.1% 売上総利益 311

313

0.5% 販売管理費 138

145

4.9% 営業利益 173

168

△3.1%

（営業利益率） 6.0% 5.7% △0.3%

経常利益 171

165

△4.0% 当期純利益 117

113

△4.0%

前年差

１株当り配当金（円） 60.00

70.00

10.00 １株当り純利益（円） 377.12

361.99

△15.13 配当性向 15.9%

19.3%

3.4% ROA （総資産当期純利益率） 1.31%

1.21%

△0.10% ROE （自己資本利益率） 7.8%

7.1%

△0.7%

前年差

営業資産残高 8,086

8,385

299 18年3月期

*The Operating Assets shown includes securitized portions of lease receivables.

17/3 Actual

Net Sales

18/3 Growth Rate Forecast

Gross Profit SGA Expenses Operating Profit (Operating Profit / Net Sales) Ordinary Profit Net Income Dividend per share Earnings per share Dividend Payout Ratio ROA (Return on Assets Ratio) ROE (Return on Equity Ratio) Operating Assets Year-on-year change Year-on-year change ( ) ( ) ( ) ( ) ( ) ( ) ( )

17,333 million yen Gross Profit calculation SGA Expenses 16,800

million yen

18/3 Forecast

Increase in Financial Expenses

17/3 Actual

Increase in gross margin for the Leases and Installment Sales Business

17,033 million yen 17/3 Actual (excluding factors on the left)

3 (1) (2)

Initial Forecast: Projected Factors Affecting Operating Profit

Cancellation

• f large

contracts, etc.

+3 +3 (1) (4)

Increase in Financial Income Increase in Allowance for Doubtful Accounts Increase in Expenses Strategy Expenses

5

(100 millions of yen)

21

Gross Profit calculation SGA Expenses

16,800

million yen

18/3 Forecast

Decrease in Financial Expenses

17/3 Actual

Gross margin for the Leases and Installment Sales Business

17,033 million yen

17/3 Actual (excluding factors on the left)

(1)

Revised Forecast: Projected Factors Affecting Operating Profit

Cancellation

• f large

contracts, etc.

17,333 million yen +1.5 (3)

Increase in Financial Income Allowance for Doubtful Accounts Increase in Expenses Strategy Expenses

5

(100 millions of yen)

22

+0.5 3 ±0 ±0

• Revised the amount of increase in Leases and Installment Sales Business and Financial Income due the decrease

in return on assets.

• The full-year forecast of Operating Profit remains unchanged due to the suppression of Financial Expenses /

Expenses.

Transaction Volume Forecast by Business

23

(100 millions of yen) (100 millions of yen) * Transaction volumes are presented on an inspection basis.

 Leases and Installment Sales Business  Financial Services Business

17年3月期 実績 予想 伸率 集金代行取扱件数 1,755万件 1,860万件 6.0% 医療・介護ファクタリング取扱高 606 710 17.1% 融資取扱高 327 270 △17.6% 18年3月期 17年3月期 実績 修正予想 修正額 伸率 期初予想 伸率 事務用・情報関連機器 1,801 1,835 30 1.9% 1,805 0.2% 医療機器 415 390 △30 △6.2% 420 1.0% 産業工作機械 321 360 20 12.1% 340 5.9% 商業・サービス業用機器 335 340 20 1.3% 320 △4.7% 車両・輸送用機器 168 170 1.1% 170 1.1% その他 320 355 30 10.7% 325 1.4% リース・割賦事業 取扱高合計 3,362 3,450 70 2.6% 3,380 0.5% 18年3月期 18年3月期

17/3 Actual

Office and IT-Related Equipment

18/3

Revised forecast

Medical Equipment Industrial Machinery Commercial and Service Equipment Transport Equipment Others

Total

Revised amount Growth Rate

18/3

Initial forecast Growth Rate

Number of Transactions of Collection Agency Services (10,000 cases) Transaction Volume for Medical/Nursing-Care Factoring Loan Transaction Volume Fiscal Year Ending March 2017 Actual

Fiscal Year Ending March 2018 Forecast Growth Rate

cases cases

( ) ( ) ( ) ( )

• 4. Reference Materials

24

Breakdown of Net Sales Actual/Forecast

 Breakdown of Net Sales: Actual  Breakdown of Net Sales: Forecast

25

(100 millions of yen) (100 millions of yen)

16年9月期 実績 実績 伸率 リース料収入 1,085 1,110 2.2% 割賦売上高 201 237 17.5% 営業貸付収益 13 12 △1.5% 受取手数料 24 26 8.3% その他 123 125 1.1% 売上高合計 1,448 1,511 4.4% 17年9月期 17年3月期 実績 予想 伸率 リース料収入 2,179 2,218 1.8% 割賦売上高 414 450 8.5% 営業貸付収益 25 26 0.8% 受取手数料 48 50 3.6% その他 243 229 △5.8% 売上高合計 2,911 2,973 2.1% 18年3月期

16/9 Actual

Leases Installment Sales Loans Commission Received Others Total Leases Installment Sales Loans Commission Received Others Total

17/3 Actual 17/9 Actual Growth Rate 18/3 Actual Growth Rate

( ) ( )

Mid-Term Management Plan — Vision “Beyond Leasing”

26

FY2014–FY2016 Mid-Term Management Plan FY2017–FY2019 Mid-Term Management Plan Next-period Mid-Term Management Plan

Expansion of business areas

• 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.

Expansion of core businesses Advance into new businesses around the core business fields by responding to customers’ expectations. Grow to become a company that can not only provide services/products in leasing and financial services markets but also

• ffer ones that contribute to the

development of the environment, society and customers.

Business Areas Leases and Installment Sales Financial Services

Mid-Term Management Plan — Management Strategy

27 Taking on challenges in new environmental fields centered on energy-creation and energy-saving

• Reinforce initiatives toward establishing environmental and renewable energy facilities

Reinforcing alliances with vendors and establishing a firm sales & marketing platform by maximizing the customer network

• Provide effective offering model to vendors and reinforce relationships through strategic alliances
• Strengthen points of contact in the customer network comprising 400,000 firms

Deployment of lease + service business through collaboration with RICOH Group companies

• Create new services and business models by combining the strengths of group companies in regard to

production, sales, logistics, etc.

Development and provision of financial services to accommodate changes and resolve issues in society

• Strengthen response to diversifying settlement means
• Develop and provide financial services that respond to the changes in population trends
• Aim to have the Financial Services Business account for 30% of Operating Profit

Creation of value provided other than leasing

• Develop products and businesses demanded by customers, markets and the era
• Expand business areas by taking new risks

Business Growth Strategy

2. 3. 5. 1. 4.

Mid-Term Management Plan — Management Strategy

28

• Further heighten consulting and other expert capabilities and promote the use and

expansion of the customer network

• Actively expand nursing-care fee factoring and medical service fee factoring
• Transaction volume for the factoring business: 60,600 million yen in the year ended

March 2017 ⇒ 100,000 million yen in the year ending March 2020

• Expand through active risk-taking using diverse schemes
• Take initiatives toward establishing new power generation facilities for biomass power

generation, etc. beyond solar power generation

• Develop and provide services and businesses toward realizing a zero-energy-based

society

• Transaction volume for leases and installment sales business: 24,100 million yen in the

year ended March 2017 ⇒ 50,000 million yen in the year ending March 2020

• Develop new provision formats using the RICOH Group’s infrastructure
• Provide distinguished products in deploying services that respond to the shift from

“products” to “services”

• Deploy business based on a proprietary approach in line with the domestic

population trend ⇒ Launch of rental housing business

• Develop and provide diverse services for real estate business operators and

lessors

Areas of Focus

Medical / Nursing Care Field Environmental Field Office & IT-Related Field Real Estate Field

Mid-Term Management Plan — Management Strategy

29 Construction of a new platform to further enhance product competitiveness and operating efficiency in response to diversifying needs and services

• Establish an IT infrastructure that supports the development and provision of new businesses, services and

products

• Promote operational efficiency by using AI and other new technologies

Human resources management in response to changes in society, markets and working styles

• Shift workforce toward productivity improvement and business growth by implementing flexible working

styles that are not bound by time and location

• Increase motivation to grow and take on challenges by introducing a remuneration system that rewards

contributions made to operating performance

1. 2.

Strategy for Enhancement of Organizational Strength Further Promotion of CSR

(1) Reduction of Environmental Burden through Business Activities

• Expand environmental business activities aimed at increasing the magnitude of environmental contribution

(2) Contribution to each Stakeholder for Realizing Sustainable Growth

• Promote activities in the order of priority toward resolving social issues

(3) Continuous Enhancement of Corporate Governance

• Increase corporate value through reinforcing the PDCA cycle

Mid-Term Management Plan — Financial Targets

30

Operating Profit

(100 millions of yen)

183 173 160

ROA

(Return on Assets Ratio)

1.30%

(Medium- term target)

1.31% 1.29%

Operating Assets

(100 millions of yen, including securitized portions)

9,000 8,086 6,978

Fiscal Year Ending March 2020 Fiscal Year Ended March 2017 Fiscal Year Ended March 2014

Financial Targets/P&L

1.8%

• 3.6%

Fiscal year ended March 2017 to Fiscal year ending March 2020 CAGR

Mid-Term Management Plan — Operating Targets

31

Transaction Volume of Leases and Installment Sales Business

(Environmental Field)

(100 millions of yen)

3,675

(500)

3,362

(241)

3,209

Number of Annual Transaction Cases of Collection Agency Services

(10,000 cases)

2,500 1,755 1,152

Transaction Volume for Medical/Nursing- Care Factoring

(100 millions of yen)

1,000 606 198

Fiscal Year Ending March 2020 Fiscal Year Ended March 2017 Fiscal Year Ended March 2014 Fiscal year ended March 2017 to Fiscal year ending March 2020 CAGR

3.0%

(27.5%)

12.5% 18.1%

Operating Targets

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

Reliability for the Future

Ricoh Leasing Company, Ltd.