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

Second Quarter of Fiscal Year Ending March 2019 (FY2018) Financial Highlights October 25, 2018 Ricoh Leasing Company, Ltd.

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Table of Contents 1. Consolidated Results for the Second Quarter of Fiscal Year Ending March 2019 2. Topics on Mid-Term Management Plan ( FY2017 - FY2019) 3. Consolidated Income Forecast for Fiscal Year Ending March 2019 4. Reference Material 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. 3

1. Consolidated Results for the Second Quarter of Fiscal Year Ending March 2019 4

Performance Overview  Gross Profit recorded the highest in its history due to improvements in acquired yields of new contracts and a steady increase in Operating Assets.  Net Sales : 155,412 million yen (+2.8%) Expanded income for nine consecutive periods; posted another record high  Gross Profit : 16,147 million yen (+3.9%) Posted another record high  Operating Profit : 8,643 million yen (+2.2%)  Net Income : 5,988 million yen (+3.9%)  Total Transaction Volume : 202,060 million yen Posted another record high  Operating Assets (substantial) : 885,427 million yen Posted another record high * In this document, “Profit Attributable to Owners of Parent” is presented as “Net Income” 5

Consolidated Results Net Sales increased for the ninth consecutive period and posted another record high due to steady accumulation • of Operating Assets. The increase in Gross Profit absorbed the increase in expenses, and Operating Profit increased by 2.2% year-on- • year. (100 millions of yen) 18/9 Full-Year 17/9 Actual Progress Rate Growth Forecast Actual Rate Net Sales 1,511 1,554 2.8% 3,135 49.6% Gross Profit 155 161 3.9% 327 49.4% 70 75 5.9% 157 47.8% SGA Expenses 84 86 2.2% 170 50.8% Operating Profit 83 87 3.9% 167 52.1% Ordinary Profit Net Income 57 59 3.9% 114 52.5% YoY change Dividend per Share (yen) 35.00 40.00 5.00 80.00 - 184.58 191.84 7.26 365.19 - Earnings per Share (yen) 19.0% 20.9% 1.9% 21.9% - Dividend Payout Ratio 1.24% 1.21% (0.03%) 1.15% - ROA (Return on Asset Ratio) 7.3% 7.1% (0.2%) 6.7% - ROE (Return on Equity Ratio) *Actual ROA and ROE are annualized numerical figures 6

Factors Affecting Operating Profit Due to the increase in gross margin for Leases and Installment Sales Business and gross margin for Financial • Services Business, Gross Profit increased by 604 million yen. Expenses increased by 416 million yen due to an increase in Personnel Expenses and Other Expenses including • Strategic Expenses. Gross Profit Calculation SGA Expenses Calculation (100 millions of yen) Increase in Personnel (0.6) +0.5 (0.6) Expenses Others Decrease in Increase in +3.2 (2.1) Financial Allowance for Expenses Doubtful Accounts (1.4) Increase in gross margin +2.8 for Financial Increase in 188 million yen Services Other Business Expenses Increase in gross margin for Leases and Installment 8,643 Sales Business million 8,455 yen million yen 17/9 Actual 18/9 Actual 7

Performance by Segment In the Leases and Installment Sales Business, Net Sales increased by 2.6% due to a rise in Operating Assets. • The Segment Profit increased by 0.7% due to a rise in expenses such as Personnel Expenses. Financial Services Business posted greater income on higher sales thanks to the stable commission business, • including Collection Agency Services and Factoring Services for Nursing-Care Facilities, and Loans.  Financial Services Business  Leases and Installment Sales Business (100 millions of yen) (100 millions of yen) 22.7% 70 1,800 140 21.2% 19.2% 1,499 18.9% 1,600 1,460 60 120 1,402 20% 16.9% 1,320 1,400 1,246 50 100 41 1,200 36 40 35 80 1,000 32 29 800 30 60 10% 600 20 40 74 71 71 70 70 400 19 10 20 17 16 16 13 200 0 0% 0 0 14/9 15/9 16/9 17/9 18/9 14/9 15/9 16/9 17/9 18/9 売上高 セグメント利益 営業利益構成比 Net Sales Segment Profit % of operating profit Net Sales 売上高 セグメント利益 Segment Profit *% of Operating Profit = Financial Services Business Segment Profit / Operating Income 8

Leases and Installment Sales Business: Transaction Volume by Contract/Product The performance in Environmental Field declined due to a rebound of large transactions in the previous year, but • progressed as planned. From 2Q, the Company started the power generation business. Commercial and Service Equipment and Transportation Equipment demonstrated double-digit growth. •  Transaction Volume by Contract (100 millions of yen) 18/9 Initial Full- 17/9 Progress Year Growth Actual Rate Actual Forecast Rate 1,336 1,322 (1.1%) 2,720 48.6% Finance Leases 72 110 53.5% 160 69.2% Operating Leases 409 369 (9.8%) 810 45.6% Installment Sales 1,818 1,802 (0.9%) 3,690 48.8% Total  Transaction Volume by Product Transaction volumes are presented on an inspection basis. 18/9 Japan Leasing Initial Full- 17/9 Progress Association Year Growth (cumulative total Actual Rate Actual from 18/4 to 18/8) Forecast Rate Growth Rate 945 955 1.0% 1,925 49.6% 5.2% Office and IT-Related Equipment 190 165 (12.7%) 360 46.1% (11.0%) Medical Equipment 246 177 (28.0%) 455 39.0% (4.8%) Industrial Machinery 154 193 24.9% 355 54.4% (0.9%) Commercial and Service Equipment 81 105 28.9% 165 63.7% 5.1% Transportation Equipment 199 205 3.0% 430 47.8% 13.6% Others 1,818 1,802 (0.9%) 3,690 48.8% 3.2% Total  Environmental Field Transaction Volume for Leases and 195 134 Installment Sales (27.8%) 350 40.4% Investment Amount - 6 9 (Power Generation Business)

Financial Services Business: Number of Transactions/Transaction Volume  Number of Transactions in Collection  Transaction Volume of Factoring Services Agency Services for Nursing-Care Facilities (10,000 cases) (100 millions of yen) 74 1200 90 67 1,819 59 1,755 70 49 1,607 1000 1,392 32 50 720 800 933 897 606 30 822 600 471 735 367 10 314 326 400 254 -10 985 886 857 176 785 380 656 200 353 -30 291 217 149 0 -50 15/3 16/3 17/3 18/3 18/9 15/3 16/3 17/3 18/3 18/9 上期 下期 残高 First half 上期 下期 Second half First half Second half Balance  Loan Transaction Volume (100 millions of yen) [Commission business] 1,483 600 1,600 1,374 • In Collection Agency Services, the number of new 1,216 1,400 customers grew steadily due to web marketing and the 500 1,106 1,052 Number of Transactions increased by 11.1% year-on- 1,200 year. 400 343 327 1,000 • In Factoring Services for Nursing-Care Facilities, the 264 259 300 800 Transaction Volume increased by 7.5% year-on-year as 154 234 a result of capturing new customers and increasing the 600 124 200 142 use of services by existing customers. 400 218 100 172 [Loans] 139 200 117 109 • Corporate lending was mainly favorable, and the 0 0 Transaction Volume jumped 99.9% year-on-year. 15/3 16/3 17/3 18/3 18/9 上期 下期 残高 First half Second half Balance 10

Operating Assets and Changes in Default Rate Operating Assets increased by 29.0 billion yen from the end of the previous fiscal year and posted another record • high as a result of steadily capturing contracts in Leases and Installment Sales Business. The default rate declined due to a higher balance of Operating Assets although default loss amount slightly • increased year-on-year. (100 millions of yen) 0.19% 0.18% 0.18% 0.17% 0.16% 0.00% (+290) 8,854 (+477) 8,563 8,086 (+313) 7,773 (+418) 1,599 (+376) 7,354 1,458 -2.00% 1,292 1,231 1,142 1,179 1,113 958 837 266 230 -4.00% 725 208 187 158 -6.00% 5,807 5,761 5,627 5,517 5,327 -8.00% -10.00% 15/3 16/3 17/3 18/3 18/9 リース オペリース 割賦 金融ｻｰﾋﾞｽ／その他 事故率 Finance Leases Operating Leases Installment Sales Financial Services/Others Default Rate * Default rate = Default loss amount / Average Operating Assets (for 18/9, default loss amount was annualized to calculate the default rate) 11 * Operating Assets shown includes securitized portions of lease receivables.