Fiscal Year Ended March 2020 (FY2019) Financial Highlights May 8, - PowerPoint PPT Presentation

Fiscal Year Ended March 2020 (FY2019) Financial Highlights May 8, 2020 Ricoh Leasing Company, Ltd.

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Table of Contents 1. Consolidated Results for Fiscal Year Ended March 2020 2. Mid-term Management Plan 3. Consolidated Income Forecast for Fiscal Year Ending March 2021 4. Reference Material 3

１ . Consolidated Results for Fiscal Year Ended March 2020 4

Financial Performance Overview for the 4th Quarter of Fiscal Year Ending March 2020  “Profitability” continued to increase. Net sales and gross profit posted new record highs.  Operating profit and net income decreased due to an increase in allowance for doubtful accounts.  Dividend per share is planed to be 90 yen (interim: 45 yen; year-end: 45 yen) as forecasted at the beginning of the period. Net Sales : 332.2 billion yen (+5.8%) Expanded income for ten consecutive periods Gross Profit : 35.1 billion yen (+6.8%) Expanded income for seven consecutive periods Operating Profit : 17.0 billion yen ((1.5%)) Ordinary Profit : 17.0 billion yen ((1.7%)) Net Income : 11.8 billion yen ((1.0%)) Balance of Operating Assets : 994.4 billion yen (+97.2 billion yen) Dividend Per Share : 90 yen (+10 yen) Dividend increase for 25 consecutive periods is planned * In this material, “Profit Attributable to Owners of Parent” is listed as “Net Income” * Consecutive dividend increases include the substantial dividend increase due to the stock split in Fiscal Year Ended March 2000. 5

Consolidated Results • Accumulation of operating assets and improvement of return on assets continued while commission revenue also increased. • Selling, general and administrative expenses increased due to investments to reinforce the business foundation (human resources, IT infrastructure) and an increase in allowance for doubtful accounts. (Billion Yen) 19/3 20/3 20/3 Achievement 4Q 4Q Growth Full-Year Rate cumulative cumulative Rate Forecast total total 332.2 313.9 5.8% 329.1 101.0% Net Sales 32.9 35.1 6.8% 35.6 98.8% Gross Profit Selling, General and 15.6 18.1 15.9% 17.8 102.0% Administrative Expenses 17.0 17.2 (1.5%) 17.8 95.6% Operating Profit 17.0 17.3 (1.7%) 17.6 97.1% Ordinary Profit 11.8 11.9 (1.0%) 12.1 97.8% Net Income YoY change 80.00 90.00 10.00 90.00 － Dividend per Share (yen) 382.80 382.60 0.20 392.53 － Earnings per Share (yen) 23.5% 20.9% 2.6% 22.9% － Dividend Payout Ratio 1.08% 1.19% (0.11%) 1.09% － ROA (Return on Asset Ratio) 6.6% 7.0% (0.4%) 6.8% － ROE (Return on Equity Ratio) 6

Factors Affecting Operating Profit Selling, General and Gross Profit (Billion Yen) Administrative Expenses ( 0.07 ) ( 0.10 ) Human Others Resources +0.73 Financial (0.62) Expenses Other Gross Expenses margin for (0.62) Financial Services Business ＋ 1.67 (1.24) 0.25 Gross Margin for Allowance Leases and billion yen for Doubtful Installment Accounts Sales Business 17.27 17.01 billion yen billion yen 19/3 20/3 4Q cumulative total 4Q cumulative total 7

Performance by Segment  Leases and Installment Sales Business (Billion Yen) 350.0 320.1 30.0 303.1 294.3 281.8 [Leases and Installment Sales 267.3 300.0 25.0 Business] 250.0 20.0 Gross profit increased as acquired • 200.0 Net Sales yields of new contracts continued to 15.0 150.0 improve and thanks to an increase in Segment 10.0 re-leases. Profit 100.0 14.6 14.2 14.4 13.9 13.7 5.0 Segment profit declined, unable to 50.0 • absorb the rise in allowance for 0.0 0.0 doubtful accounts. 16/3 17/3 18/3 19/3 20/3 4Q 4Q 4Q 4Q 4Q cumulative total cumulative total cumulative total cumulative total cumulative total  Financial Services Business (Billion Yen) 27.1% 30% [Financial Services Business] 21.3% 20.6% 19.6% 19.2% 9.4 Both the commission business, such • 20% 10.0 8.2 as collection agency services, Net Sales 7.3 6.8 6.5 factoring services for healthcare and 10% nursing-care facilities, and loans Segment demonstrated steady growth. Profit 0% The segment profit increased due to • 4.6 3.6 3.4 3.3 3.3 % of reversal of bad debt accrual. Operating 0.0 -10% 16/3 17/3 18/3 19/3 20/3 * % of operating profit = Profit 4Q 4Q 4Q 4Q 4Q financial services business segment profit / operating income cumulative total cumulative total cumulative total cumulative total cumulative total 8

Operating Results Transaction volumes of leases and installment sales and loans were favorable. Investments for • businesses (housing rental business, power generation business) also expanded steadily. Collection agency services and factoring services for healthcare and nursing-care facilities also • maintained high growth rates. (Billion Yen) 20/3 19/3 20/3 Achievement 4Q 4Q Growth Full-Year Rate cumulative total cumulative total Rate Forecast Leases and 373.2 414.0 10.9% 423.0 97.9% Installment Sales Transaction Volume 48.8 61.2 25.3% 53.0 115.5% Loans 7.2 13.8 91.8% 10.7 128.8% Investment Amount Number of Transactions in 20.07 cases 22.19 cases 10.6% 22.60 cases 98.2% Collection Agency Services (million cases) Transaction volume of Factoring 78.1 100.6 28.7% 95.0 105.9% Services for Healthcare & Nursing-Care Facilities Number of units owned for 272 unit 531 unit 95.2% 500 unit 106.2% housing rental 9

Transaction Volume for Leases and Installment Sales /Environmental Field Demand for remote work as part of work-style reforms in addition to last-minute demand before • the consumption tax increase and OS migration contributed to the results. In the environmental field, transactions increased significantly year on year due to further • diversification of asset holding styles (leases and installment sales, power generation business).  Leases and Installment Sales Transaction Volume by Product (Billion Yen) 20/3 19/3 20/3 Japan Leasing Achievement Association (cumulative 4Q 4Q Growth Full- Rate total from 19/4 to 20/3) Growth Rate cumulative total cumulative total Rate Year Forecast Office and IT-Related 190.6 206.3 8.2% 208.0 99.2% 17.4% Equipment Medical Equipment 35.0 37.3 6.7% 37.0 101.0% 3.6% 42.2 47.9 13.5% 52.5 91.3% 1.9% Industrial Machinery Commercial and Service 38.5 36.8 (4.2%) 38.0 97.1% (3.0%) Equipment 21.3 22.0 3.4% 24.0 91.7% 3.5% Transport Equipment Others 45.5 63.4 39.4% 63.5 100.0% (10.0%) 373.2 414.0 10.9% 423.0 97.9% 6.2% Total The Transaction Volume for Leases and Installment Sales for the  Environmental Field (Billion Yen) Environmental Field is included in the transaction volume of the above. 20/3 19/3 20/3 Achievement 4Q 4Q Growth Full-year Rate cumulative total cumulative total Rate Forecast Transaction Volume for Leases 34.5 50.9 47.5% 45.0 113.2% and Installment Sales 2.6 5.9 124.1% 5.0 119.2% Investment Amount 37.1 56.8 52.9% 50.0 113.8% Total * Transaction Volume for Leases and Installment Sales indicates the total collection amount during the contract period * Investment amount indicates the amount to purchase assets 10

Operating Assets and Default Rate (Billion Yen) 0.18% 0.18% 0.17% 0.17% 0.16% 0.00% 1,019.1 921.9 • Operating assets 213.4 856.3 -2.00% 808.6 increased by 97.2 169.8 777.3 billion yen from the 145.8 Financial Services/ 129.2 152.9 Others end of the previous 123.1 133.1 Installment Sales fiscal year as a result 111.3 -4.00% 30.5 95.8 83.7 29.0 of steadily acquiring Operating Leases 23.0 20.8 18.7 contracts. Financial Leases -6.00% • Default loss amount Default Rate declined slightly and 622.1 589.8 Default rate remained 576.1 562.7 551.7 at a low level. -8.00% -10.00% 16/3 17/3 18/3 19/3 20/3 * Default rate = default loss amount / average balance of operating assets * The balance of operating assets includes the amount of the securitizations of lease receivables (Amount of Securitized Lease Receivables for the 4th quarter of 20/3: 24.6 billion yen) 11

Total Procurement Amount and Financial Expenses  Interest-Bearing Debt Outstanding (Billion Yen) 879.5 [Balance of Interest-Bearing Debt] 775.2 67.2 726.6 686.6 671.0 Interest-bearing debt increased in line 96.2 • 111.0 112.1 with the rise in operating assets 133.2 Short-term Financed according to duration • 812.3 678.9 Issued 10 billion yen of green bonds Long-term 615.6 • 574.5 537.8 each in 19/3 and 20/3 * The balance includes the amount of procurement through 16/3 17/3 18/3 19/3 20/3 securitized portions of lease receivables * Current portion of long-term liabilities within one year is included in long-term debt  Financial Expenses and Financial Expenses Ratio (Billion Yen) 0.30% 0.20% 0.15% 0.13% 0.12% 0.12% [Financial Expenses and Financial 0.10% Expenses Ratio] 1.45 Financing remained at a low level. • 1.16 1.12 Financial 1.08 -0.10% 1.02 Though financial expenses showed an Expenses • increase, its ratio remained the same. -0.30% Financial Expenses Ratio -0.50% * Financial expenses ratio = financial expenses / average 16/3 17/3 18/3 19/3 20/3 operating assets 12