First Quarter of Fiscal Year Ending March 2019 (FY2018) Financial - PowerPoint PPT Presentation

First Quarter of Fiscal Year Ending March 2019 (FY2018) Financial Highlights Ricoh Leasing Company, Ltd.

Table of Contents 1. Consolidated Results for the First Quarter of Fiscal Year Ending March 2019 2. Consolidated Income Forecast for the Fiscal Year Ending March 2019 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 First Quarter of Fiscal Year Ending March 2019 3

Performance Overview  Posted another record high for Total Transaction Volume and operating assets  Net Sales : 78,239 million yen Expanded income for nine consecutive periods; posted another record high  Operating Assets (substantial) : 871,662 million yen Posted another record high  Total Transaction Volume : 103,744 million yen Posted another record high  Due to improvements in yields of new contracts, Gross Profit increased  Gross Profit : 8,082 million yen (+2.1%) Expanded sales for five consecutive periods; posted another record high  Operating Profit : 4,336 million yen (+0.4%) Expanded sales for four consecutive periods; posted another record high  Net Income : 3,015 million yen ((0.6%)) * In this document, “Profit Attributable to Owners of Parent” is presented as “Net Income” 4

Consolidated Results Gross Profit increased by 2.1% year-on-year. Increase in Operating Assets and higher income of • Commission Received contributed to higher profit. Strategic Expenses including Personnel Expenses and System Expenses increased. As a result, Operating • Profit increased by 0.4% year-on-year. (100 millions of yen) 18/6 Full-year 17/6 Actual Progress Rate Growth Forecast Actual Rate Net Sales 771 782 1.5% 3,135 25.0% 79 80 2.1% 327 24.7% Gross Profit 35 37 4.3% 157 23.9% SGA Expenses 43 43 0.4% 170 25.5% Operating Profit (Operating Profit/Net Sales) 5.6% 5.5% -- 5.4% -- 43 43 1.4% 167 26.3% Ordinary Profit Net Income 30 30 (0.6%) 114 26.4% YoY change Dividend per Share (yen) -- -- -- 80.00 -- 97.14 96.58 (0.56) 365.19 -- Earnings per Share (yen) -- -- -- 21.9% -- Dividend Payout Ratio 1.31% 1.23% (0.08%) 1.15% -- ROA (Return on Asset Ratio) ROE (Return on Equity Ratio) 7.8% 7.3% (0.5%) 6.7% -- * Actual ROA and ROE are annualized numerical figures. 5

Factors Affecting Operating Profit Gross Profit Calculation (100 millions of yen) SGA Expenses Calculation Increase in personnel (1.2) +1.6 expenses (0.1) +0.2 (0.9) Others Decrease in Increase in Increase in +1.0 Financial Allowance (0.5) gross Expenses for margin for Doubtful Others Increase in Financial Accounts gross margin Increase in Service Expenses for Leases Business and Installment Sales 4,336 4,319 Business million yen million yen 18/6 Actual 17/6 Actual 6

Performance by Segment In the Leases and Installment Sales Business, Gross Profit increased due to the rise in Operating Assets and a • cease in the decline in Operating Asset yields. However, Segment Profit decreased due to the rise in expenses such as Personnel Expenses. The Financial Services Business posted greater income on higher sales thanks to the increased commission • business, including the rise in Loans Balance and Collection Agency Services and Factoring Services for Nursing- Care Facilities. Leases and Installment Sales Business Financial Service Business   (100 millions of yen) (100 millions of yen) 40 1,000 100 21.1% 19.3% 900 90 18.4% 20% 755 745 800 80 16.3% 16.2% 706 30 662 625 700 70 600 60 19 20 17 500 50 16 15 14 10% 400 40 300 30 10 38 200 20 37 36 35 34 9 8 7 7 100 10 6 0 0% 0 0 14/6 15/6 16/6 17/6 18/6 14/6 15/6 16/6 17/6 18/6 Net Sales Segment Profit % of Operating Profit Net Sales Segment Profit % of Operating Profit Net Sales Segment Profit Net Sales Segment Profit 7 * % of Operating Profit = Financial Service Business Segment Profit / Operating Income

Leases and Installment Sales Business: Transaction Volume by Contract/Product Transaction Volume decreased due to the rebound of large transactions on Environment-Related Equipment • from the previous year. As the decrease from the rebound was initially expected, progressed as planned. Flagship Office and IT-Related Equipment increased by 4.1% year-on-year. • Transaction Volume by Contract  (100 millions of yen) 18/6 17/6 Full-year Progress Actual Forecast Rate Actual Growth Rate Finance Leases 670 671 0.2% 2,720 24.7% Operating Leases 32 45 40.5% 160 28.6% Installment Sales 275 189 (31.2%) 810 23.4% Total 978 906 (7.3%) 3,690 24.6% Transaction Volume by Product  Transaction volumes are presented on an inspection basis. Japan Leasing 18/6 Association 17/6 Full-year Progress (cumulative total Actual Forecast Rate Actual Growth Rate from 18/4 to 18/5) Growth Rate Office and IT-Related Equipment 464 483 4.1% 1,925 25.1% 7.7% Medical Equipment 99 82 (17.6%) 360 22.9% (9.8%) Industrial Machinery 172 88 (48.7%) 455 19.4% (22.8%) Commercial and Service Equipment 74 95 28.1% 355 26.8% 1.9% Transportation Equipment 41 51 24.7% 165 31.5% 6.4% Others 125 104 (16.6%) 430 24.3% 9.4% Total 978 906 (7.3%) 3,690 24.6% 1.9% Of which, Environmental Field 150 71 (52.9%) 350 20.3% 8

Financial Services Business: Number of Transactions/Transaction Volume Transaction Volume of Factoring Services Number of Transactions in   Collection Agency Services for Nursing-Care Facilities (100 millions of yen) (10,000 cases) 1200 71 67 1,819 1,755 59 1,607 70 1000 49 1,392 720 800 50 606 32 1,380 1,332 600 471 1,218 30 1,072 549 326 400 465 369 10 256 200 488 438 422 389 319 186 171 141 102 70 0 -10 15/3 16/3 17/3 18/3 18/6 15/3 16/3 17/3 18/3 18/6 April–June July–March Balance Balance April–June April–June July–March July–March April–June July–March Loan Transaction Volume  (100 millions of yen) [Commission business] 1,450 600 1,600 1,374 In Collection Agency Services, the number of new • 1,216 1,400 customers grew steadily and the number of 500 1,106 1,052 transactions increased by 11.2% year-on-year. 1,200 343 400 In Factoring Services for Nursing-Care Facilities, the 327 1,000 • 264 Transaction Volume increased by 9.0% year-on- 259 300 800 year as a result of capturing new customers and 600 240 200 300 increasing the use of services by existing 200 204 400 customers. 100 200 131 [Loans] 86 63 55 42 0 0 Corporate lending was mainly favorable, and • 15/3 16/3 17/3 18/3 18/6 Transaction Volume jumped 207.9% year-on-year. Balance April–June April–June July–March July–March Balance 9

Operating Assets and Changes in Default Rate Operating Assets increased by 15.2 billion yen from the end of the previous fiscal year, marking • a record high. As the Operating Assets increased, the default rate remained almost unchanged. • (100 millions of yen) 0.19% 0.18% 0.18% 0.17% 0.18% 0.00% 8,716 8,563 8,086 7,773 1,544 7,354 1,458 -2.00% 1,292 Financial Financial 1,231 Services/Others 1,142 Services/Others 1,148 1,113 958 Installment Sales Installment Sales 837 230 240 725 -4.00% 208 187 158 Operating Leases Operating Leases Finance Leases Leases -6.00% Default Rate Default Rate 5,782 5,761 5,627 5,517 5,327 -8.00% -10.00% 15/3 16/3 17/3 18/3 18/6 * Default rate = Default loss amount / Average Operating Assets (for 18/6, default loss amount was annualized to calculate the default rate) 10 * Operating Assets shown includes securitized portions of lease receivables.

Transition of Gross Profit (before deducting Financial Expenses) From FY2017 2Q onwards, the decline in operating asset yields ceased due to the improvements • in acquired yields of new contracts. % of Gross Profit (before deducting Financial Expenses) remained almost unchanged. • 6.50% (100 millions of yen) 4.77% 4.53% 4.35% 4.21% 4.00% 4.50% Others Others (Commission (Commission 323 323 Received, etc.) 318 6.50% 313 Received, etc.) 305 2.50% 4.15% 3.95% 3.99% 3.99% 3.97% Loans Loans 4.50% 58 65 67 55 53 0.50% 2.50% 26 24 25 26 23 16 18 Installment Installment Sales 14 24 24 83 0.50% Sales 81 80 81 79 -1.50% 18 16 17 14 18 -1.50% Leases Leases 6 6 7 6 6 5 6 6 6 5 -3.50% -3.50% 216 215 213 207 204 52 51 51 50 50 % of Gross -5.50% % of Gross Profit Profit (before -5.50% (before deducting deducting Financial Expenses) -7.50% Financial Expenses) 17-1Q 17-2Q 17-3Q 17-4Q 18-1Q -7.50% 14/3 15/3 16/3 17/3 18/3 * 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 18/6, the amount of Gross Profit (before deducting Financial Expenses) was annualized to calculate the % of Gross Profit (before deducting 11 Financial Expenses)).