First Quarter of Fiscal Year Ending March 2021 (FY2020) Financial Highlights July 28, 2020 Ricoh Leasing Company, Ltd.
Intentionally blank
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 3
1. Consolidated Results for the First Quarter of Fiscal Year Ending March 2021 4
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 of 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.” 5
Outline of Segment Changes • In accordance with changes in management segments, reporting segments were changed in the first quarter of the current fiscal year. Former segments New segments Leases and Installment Sales Leases & Finance Business Business Finance Leases Finance Leases Operating Leases Operating Leases Installment Sales Installment Sales Rental Rental Loans Financial Services Business Services Business Loans Commission Business Collection Agency Services • Collection Agency Services Factoring Services for • Factoring Services for Healthcare & Nursing-Care Healthcare & Nursing-Care Facilities Facilities Housing Rental Investment Business Others Housing Rental and Real Estate Solar Power Generation Solar Power Generation 6
Consolidated Results • 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. (Billion Yen) 2021/3 2020/3 2021/3 Progress 1Q 1Q Growth Full-year Rate Actual Actual Rate Forecast Net Sales 82.0 91.2 11.2% 330.4 27.6% 8.6 9.3 7.6% 36.9 25.3% Gross Profit Selling, General and 4.0 6.1 49.8% 20.2 30.4% Administrative Expenses Provision of Allowance for 0.3 2.0 485.6% 3.2 64.3% Doubtful Accounts 4.5 3.1 (30.3%) 16.7 19.0% Operating Profit 4.6 3.1 (32.1%) 16.4 19.1% Ordinary Profit 3.1 2.1 (32.2%) 11.3 19.2% Net Income YoY change ー ー ー 95.00 － Dividend per Share(yen) 102.69 70.26 (32.43) 366.59 － Earnings per Share(yen) ー ー ー 25.9% － Dividend Payout Ratio 1.21% 0.74% (0.47%) 0.97% － ROA（Return on Asset Ratio） 7.3% 4.8% (2.5%) 6.1% － ROE（Return on Equity Ratio） 7 * Actual ROA and ROE are annualized numerical figures
Factors Affecting Operating Profit Selling, General and (Billion Yen) Gross Profit Administrative Expenses (0.07) +0.16 Human Resources (0.18) +0.11 Financial Gross Expenses Other Expenses (0.14) Margin for Gross Services and Margin for +0.45 Investment Loans Business Gross Margin for Leases and (1.70) Installment 1.38 Sales billion Business yen Leases & Finance Business 4.55 Allowance for Doubtful billion yen Accounts 3.17 billion yen 20/3 21/3 1Q 1Q Actual Actual 8
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. (Billion Yen) 2020/3 2021/3 2020/3 2021/3 Increase/Dec Increase/Dec rease at the rease at the End of 1Q End of 1Q Actual Actual End of the End of the Actual Actual Previous Previous Term Term Short-term Cash and deposits 0.8 67.4 66.5 borrowings and 67.2 64.1 (3.0) Commercial papers Long-term Lease receivables and 597.5 589.5 (7.9) 752.3 813.3 61.0 borrowings and investments in leases Bonds payable Long-term payables Installment 172.1 161.3 (10.7) 40.0 40.0 0.0 under securitization of receivables lease receivables Accounts receivable 181.6 181.3 (0.3) 109.4 98.4 (11.0) Other liabilities - operating loans 119.0 117.2 (1.8) 969.0 1,015.9 46.8 Other current assets Total liabilities Assets for lease 50.2 50.5 0.3 Total net assets 181.6 182.5 0.9 Other non-current 38.8 42.4 3.5 assets Allowance for (9.6) (11.3) (1.6) doubtful accounts Total liabilities and Total assets 1,150.7 1,198.5 47.8 1,150.7 1,198.5 47.8 net assets * 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. 9
Operating Assets and Default Rate (Billion yen) 0.18% 0.17% 0.17% 0.16% 0.16% 1,019.1 1,002.7 31.7 34.1 921.9 9.2 856.3 181.6 • Operating assets decreased by 181.3 2.0 808.6 16.3 billion yen from the end of 160.6 the previous fiscal year due to 143.7 129.2 early repayments of large 152.9 Investment Business 142.3 133.1 receivables and a decline in Loans 111.3 30.5 95.8 transaction volume. 30.7 29.0 Installment Sales 23.0 20.8 Operating Leases • Default loss amount showed a slight increase, and the default Finance Leases rate remained at almost the same Default Rate level. 622.1 614.2 589.8 576.1 562.7 * 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). 17/3 18/3 19/3 20/3 21/3 * Loans up to 19/3 include group finance loans. 1Q 10
Total Procurement Amount and Financial Expenses Total Procurement Amount (Billion yen) 937.4 879.5 • Interest-bearing debt temporarily 60.0 775.2 726.6 60.0 increased due to securing cash on 686.6 20.0 20.0 Payables under hand. 20.0 securitization of Lesase receivables • Carried out financing while 813.3 752.3 Long-term 658.9 managing and controlling liquidity 595.6 554.5 borrowings ・ Bonds risk and interest rate fluctuation risk payable Short-term * Securitization of receivables includes off- borrowings ・ CP 112.1 111.0 96.2 67.2 64.1 balance sheet financing. * Current portion of the long-term liabilities 17/3 18/3 19/3 20/3 21/3 within one year is included in long-term debts 1Q and corporate bonds. Financial Expenses and Financial Expenses Ratio (Billion yen) 0.30% 0.15% 0.13% 0.13% 0.12% 0.12% • Financial expenses increased due to an increase in interest-bearing 0.10% debt. 2-4Q 1.16 1.12 1.08 -0.10% 1.02 1Q 0.85 0.87 0.80 -0.30% 0.76 * Financial expenses ratio = Financial expenses / Average balance of operating assets Financial Expenses Ratio 0.33 * For the first quarter of 21/3, financial expenses 0.31 0.28 0.25 0.25 -0.50% ratio has been calculated by annualizing 17/3 18/3 19/3 20/3 21/3 financial expenses. 1Q 11
Intentionally blank
2 ． Performance by Segment 13
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. Former segments New segments Leases and Installment Sales Leases & Finance Business Business Finance Leases Finance Leases Operating Leases Operating Leases Installment Sales Installment Sales Rental Rental Loans Financial Services Business Services Business Loans Commission Business Collection Agency Services • Collection Agency Services Factoring Services for • Factoring Services for Healthcare & Nursing-Care Healthcare & Nursing-Care Facilities Facilities Housing Rental Investment Business Others Housing Rental and Real Estate Solar Power Generation Solar Power Generation 14
Performance by Segment • 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. Net sales and profit (Billion Yen) 2020/3 2021/3 1Q 1Q Growth Actual Actual Rate Leases & Finance Business 80.5 89.3 10.9% Net Sales 4.4 3.1 (30.3%) Segment Profit Services Business 1.3 1.3 2.3% Net Sales 0.3 0.3 4.6% Segment Profit Investment Business 0.1 0.5 249.1% Net Sales 0.0 0.1 282.8% Segment Profit Operating Assets (Billion Yen) 2020/3 2021/3 Increase/Decrease End of 1Q Actual at the End of the Actual Previous Term Leases & Finance Business 987.4 968.6 (18.7) Investment Business 31.7 34.1 2.3 15 * The balance of operating assets includes the amount of the securitizations of lease receivables
Recommend
More recommend
