Fiiscall Year-endiing March 2014 Briiefiing on the Resullts for the Second Quarter

0

Fiscal YearFiscal Year--ending March 2014ending March 2014

Briefing on the Results for the Briefing on the Results for the Second QuarterSecond Quarter

October 22, 2013October 22, 2013

Ricoh Leasing Company, Ltd.Ricoh Leasing Company, Ltd.

1

1. Performance Overview

(Six months ended September 30, 2013)

2

Overview of the 2nd Quarter of FY2013Overview of the 2Overview of the 2ndnd Quarter of FY2013Quarter of FY2013 Performance Overview

� Revenue increased but profit is down

(Profit up if we exclude extraordinary factors)

• Revenue grew for four consecutive years (on a 2nd-quarter basis)

• Operating income declined though it increased if we exclude extraordinary factors

(effects of changes in accounting standard for leases and reversal of allowance for

bad debt from earthquake disaster)

• Leasing revenue grew

� Transaction volume grew 8.3% to hit a new all-time high

• Volume of leases of office and IT-related equipment grew

• Medical equipment exceeded 20 billion yen for the first time in the second quarter

� Balance of operating assets hit a record high

• Thanks to growth in transaction volume, balance of operating assets exceeded 650

billion yen for the first time

3

12/9 13/9

Actual Actual YoY (%)

Revenue 1,171 1,208 3.1

Gross profit 143 142 -0.6

Selling, general and administrative

expenses57 62 9.9

Operating income 86 80 -7.5

(Operating income margin) 7.4 6.6 -0.8

Income before special items 86 79 -8.4

Net income 52 48 -6.9

(Net profit to sales) 4.5 4.0 -0.5

EPS 167.42 155.81 -11.61

Dividends per share 20.50 21.50 1.00

Consolidated ResultsConsolidated ResultsConsolidated Results Performance Overview

(100 million yen, %)

4

Breakdown of RevenueBreakdown of RevenueBreakdown of Revenue


Performance Overview

FY12/9 FY13/9

Actual YoY (%) Actual YoY (%)

Leasing revenue 937 -1.2 944 0.7

Installment revenue 116 35.2 129 11.4

Revenue from loans 11 7.3 11 3.0

Commission received 16 14.8 18 15.8

Others 91 -1.3 104 15.1

Total revenue 1,171 1.8 1,208 3.1

5

Revenue for Each 2nd QuarterRevenue for Each 2Revenue for Each 2ndnd QuarterQuarter Performance Overview

1,208

1,143 1,150 1,151 1,171

0

200

400

600

800

1,000

1,200

1,400

13/909/9 10/9 11/9 12/9

(100 million yen)

6

Factors Affecting Operating IncomeFactors Affecting Operating Income Performance Overview

(100 million yen)

86

Actual for 2Q of FY2013

80

+1

+1

+3

-8

Items of Gross ProfitItems of selling, general

and administrative expenses

Change in accounting standard for

leases

Increase in re-leasing

Decrease in expenses

Increase in allowance for bad

debt

Increase in financial income-3

Actual for 2Q of FY2012

-2--66

Decrease in gross margin of

leasing

+1

Decrease in financing cost

+1

Increase in installment revenue

7

Operating Income for Each 2nd QuarterOperating Income for Each 2Operating Income for Each 2ndnd QuarterQuarter Performance Overview

(100 million yen)

13/909/9 10/9 11/90

25

50

7575

12/9

1008087

78

52

86

8

Net Income for Each 2nd QuarterNet Income for Each 2Net Income for Each 2ndnd QuarterQuarterPerformance Overview

(100 million yen)

13/909/9 10/9 11/90

15

30

45

4851

44

30

12/9

5260

9

Transaction Volume by BusinessTransaction Volume by BusinessTransaction Volume by Business


* The above transaction volume is based on acceptance inspection* The above transaction volume is based on acceptance inspections.s.


12/9 13/9

Actual YoY (%) Actual YoY (%)

Financial lease 1,165 2.9 1,244 6.8

Operating lease 42 -23.0 53 26.6

Installments 177 55.8 204 14.9

Lease/installment business 1,385 6.5 1,502 8.4

Financial services business 101 -5.1 109 7.3

Total transaction volume 1,487 5.6 1,611 8.3

10

Total Transaction Volume for Each 2nd QuarterTotal Transaction Volume for Each 2Total Transaction Volume for Each 2ndnd QuarterQuarterPerformance Overview

(100 million yen)

13/909/9 10/9 11/9

0

800

1,200

1,600

1,611

1,4091,263

1,222

12/9

1,487

2,000

400

81

1,141

69

1,193

107

1,301

101

1,385

109

1,502

Transaction volume of financial services business

Transaction volume of lease/installment business

11


Transaction Volume of Lease/installment BusinessTransaction Volume of Lease/installment BusinessTransaction Volume of Lease/installment BusinessPerformance Overview

12/9 13/9

Japan Leasing

Association

Accumulated in 13/4 to 8

2013

Actual YoY (%) Actual YoY (%)YoY(%)

Office and IT-related equipment 875 0.1 960 9.7 -0.9

Medical equipment 193 1.1 201 3.7 2.6

Industrial machinery 52 19.8 60 15.3 33.4

Commercial and service industry equipment 122 50.7 130 6.6 -5.5

Vehicles and transport equipment 61 48.2 66 7.2 -2.4

Others 79 16.0 83 4.8 17.2

Total transaction volume 1,385 6.5 1,502 8.4 4.6

12

Transaction Volume of Lease/installment Business for Each 2ndQuarter (Total)Transaction Volume of Lease/installment Business for Each 2Transaction Volume of Lease/installment Business for Each 2ndndQuarter Quarter (Total)(Total)

(100 million yen)

13/909/9 10/9 11/9

0

600

800

1,000

1,200

1,400

1,502

1,301

1,1931,141

200

12/9

1,3851,600

400


13

Transaction Volume of Lease/installment Business for Each 2nd Quarter (Office and IT-related Equipment)Transaction Volume of Lease/installment Business for Each 2Transaction Volume of Lease/installment Business for Each 2ndnd Quarter Quarter (Office and IT(Office and IT--related Equipment)related Equipment) Performance Overview

(100 million yen)

13/909/9 10/9 11/9

0

400

600

800

960

874824812

12/9

8751,000

200

14

Transaction Volume of Lease/installment Business for Each 2nd Quarter (Medical Equipment)Transaction Volume of Lease/installment Business for Each 2Transaction Volume of Lease/installment Business for Each 2ndnd Quarter Quarter (Medical Equipment)(Medical Equipment) Performance Overview

(100 million yen)

13/909/9 10/9 11/9

0

50

100

150

201

191

161

173

12/9

193

200

15

Operating Results by Segment for Each 2nd Quarter (Lease/installment Business)Operating Results by Segment for Each 2Operating Results by Segment for Each 2ndnd Quarter Quarter (Lease/installment Business)(Lease/installment Business) Performance Overview

78

1,141

47

1,124

81

1,1221,118

71

0

800

1,000

1,200

(100 million yen)

12/909/9 10/9 11/9

1,173

13/9

70100

50

Segment income (right axis)Revenue (left axis)

16

Balance of Operating Loans of Financial Services Business for Each 2nd QuarterBalance of Operating Loans of Financial Services Business Balance of Operating Loans of Financial Services Business for Each 2for Each 2ndnd QuarterQuarter Performance Overview

(100 million yen)

13/909/9 10/9 11/9

0

400

600

800

1,044

823

733696

12/9

979

1,000

200

17

Number of Monthly Transaction Cases of Collection Agency

Services of Financial Services Business for Each 2nd Quarter

Number of Monthly Transaction Cases of Collection Agency Number of Monthly Transaction Cases of Collection Agency

Services of Financial Services Business for Each 2Services of Financial Services Business for Each 2ndnd QuarterQuarter Performance Overview

(10,000 cases)

09/9 10/9 11/9 12/9

0

2525

50

75

34

66

56

45

92100

13/9

18

Operating Results by Segment for Each 2nd Quarter

(Financial Services Business)

Operating Results by Segment for Each 2Operating Results by Segment for Each 2ndnd Quarter Quarter

(Financial Services Business)(Financial Services Business) Performance Overview

11.9

24.9

9.0

22.5

9.5

22.4

20.7

9.3

0

10

20

30

(100 million yen)

27.4

13.0

12/909/9 10/9 11/9 13/9

Segment incomeRevenue

19

Balance of Operating Assets by Half-year PeriodBalance of Operating Assets by HalfBalance of Operating Assets by Half--year Periodyear Period Performance Overview

*Figures show balances with securitized portions not deducted.

(100 million yen)

4,471 4,529 4,605 4,687 4,802

98 93 96 97107418 436 461

508567

823 925979

1,0391,044

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

11/9 12/3 12/9 13/3 13/9

5,8115,986

6,1426,333

6,520

Financial

lease

(of which,

securitized

portion)

Operating

lease

Installments

Loans

(240) (242) (243)(244) (245)4,490 4,420

82 84404 412

733 776

10/9 11/3

5,709 5,694

(238) (239)

20

Performance OverviewDefault Rate & Default Loss by Half-year PeriodDefault Rate & Default Loss by HalfDefault Rate & Default Loss by Half--year Periodyear Period

Default rate (right axis)

= Default loss amount / Average balance of operating assets

(%)

Default loss amount (left axis)0.00

0.20

0.40

0.60

0.80

20

11 11

8 8

14

9

0

5

10

15

20

25

10/9 11/3 11/9 12/3 12/9 13/3 13/9

(100 million yen) 0.28

0.46

0.26

0.370.39

0.65

0.27

21

Selling, General & Administrative (SG&A) Expenses by Half-year PeriodSelling, General & Administrative (SG&A) Expenses by HalfSelling, General & Administrative (SG&A) Expenses by Half--year Periodyear PeriodPerformance Overview

Allowance for

bad debt

Personnelexpenses

Others

(100 million yen)

3232

28283434 3232

30

31 3131

42

5

20

40

60

80

100

11/3 11/9 12/3 12/9

0-1 -6

65

105

* Negative value represents reversal of allowance for bad debt.

30302929

3131

13/3 13/9

-3

625857

64

Total selling, general & administrative expenses

1

(of which, allowance for

bad debt from earthquake

disaster: 30)

10/9

2727

29

14

71

22

Interest-bearing Debts and Fixed-charge Coverage Ratio by Half-year PeriodInterestInterest--bearing Debts and Fixedbearing Debts and Fixed--charge Coverage Ratio charge Coverage Ratio by Halfby Half--year Periodyear Period Performance Overview

* Interest-bearing debt shows balance with debts payable due to securitization not deducted.

Financing costs show expenses included in gross profit on sales.

Long

term

Short

term

49.0

55.557.9 57.1

55.6

47.950.6

0

1,000

2,000

3,000

4,000

5,000

6,000

10/9 11/3 11/9 12/3 12/9 13/3 13/9

5,4255,019 5,103

5,264

(100 million yen)

5,648

4,983 4,912

1714

1013

11 10 9

Fixed-charge coverage ratio

(right axis)

Total procurement

amount

(left axis)

Financing

cost

60%

50%

23

2. Financial Forecasts

(Fiscal year ending March 2014)

24

Consolidated Income ForecastConsolidated Income ForecastConsolidated Income Forecast


13/3 14/3

ActualInitial forecast

Revised forecast

Change YoY (%)

Revenue 2,340 2,360 2,405 45 2.8

Gross profit 285 284 284 0 -0.7

Selling, general and administrative expenses

115 124 124 0 7.3

Operating income 170 160 160 0 -6.1

(Operating income margin) 7.3 6.8 6.7 -0.1 -0.6

Income before special items

169 159 159 0 -6.0

Net income 102 96 96 0 -6.0

(Net profit to sales) 4.4 4.1 4.0 -0.1 -0.4

YoY (Yen)

EPS 327.26 307.52 307.52 0.00 -19.74

Consolidated Income Forecast

25

Revenue ForecastRevenue ForecastRevenue Forecast


13/3 14/3

ActualInitial forecast

Revised forecast

ChangeYoY(%)

Leasing revenue 1,866 1,867 1,885 18 1.0

Installment revenue 229 247 259 12 12.7

Revenue from loans 22 24 24 0 7.0

Commission received 31 32 36 4 13.0

Others 189 189 201 11 6.0

Total revenue 2,340 2,360 2,405 45 2.8


26

Revenue by YearRevenue by YearRevenue by Year Consolidated Income Forecast

(100 million yen)

13/310/3 11/3 12/3

0

500

1,000

1,500

2,000

2,500

3,000

2,3402,3062,2972,285

14/3

Forecasts

2,405

(100 million yen)

160

FY2013 forecasts

170

-10

-3+5

Items of Gross ProfitItems of selling, general

and administrative expenses

Change in accounting standard for

leases

Increase in allowance for bad

debt

Decrease in expenses

FY2012 actual

-13+2

Increase in financial income


+2

-4

Decrease in gross margin of leasing

Increase in re-leasing +1

Increase in installment revenue

27

Forecasts of Factors Affecting Operating Income of FY2013Forecasts of Factors Affecting Operating Income Forecasts of Factors Affecting Operating Income of FY2013of FY2013

28

Operating Income by YearOperating Income by YearOperating Income by Year Consolidated Income Forecast

(100 million yen)

0

50

100

150150

200160168

122

115

170

13/310/3 11/3 12/3 14/3Forecasts

29

Net Income by YearNet Income by YearNet Income by Year Consolidated Income Forecast

102

94

70

66

0

25

50

75

100

(100 million yen)

13/310/3 11/3 12/3

96

14/3

Forecasts

30

Transaction Volume PlanTransaction Volume PlanTransaction Volume Plan


FY13/3 FY14/3

Actual Forecasts YoY (%)

Financial lease 2,332 2,426 4.0

Operating lease 86 90 3.7

Installments 351 367 4.5

Lease/installment business 2,770 2,883 4.1

Financial services business 216 217 0.4

Total transaction volume 2,986 3,100 3.8


31

Lease/installment Business: Forecasts of Transaction Volume by CategoryLease/installment Business: Lease/installment Business: Forecasts of Transaction Volume by CategoryForecasts of Transaction Volume by Category


FY13/3 FY14/3

Actual Forecasts YoY (%)

Office and IT-related equipment 1,734 1,800 3.8

Medical equipment 400 410 2.3

Industrial machinery 117 135 15.3

Commercial and service industry equipment

244 250 2.2

Vehicles and transport equipment 114 124 8.5

Others 159 164 2.9

Total 2,770 2,883 4.1


32

Consolidated Income ForecastTotal Transaction Volume by YearTotal Transaction Volume by YearTotal Transaction Volume by Year

(100 million yen)

14/3

Forecasts

10/3 11/3 12/3

0

1,000

2,000

3,000 2,421

2,9862,7992,799

2,476

4,000

13/3

3,100

33

Balance of Operating Assets by YearBalance of Operating Assets by YearBalance of Operating Assets by Year Consolidated Income Forecast

*Figures show balances with securitized portions not deducted.

13/310/3 11/3 12/30

2,000

3,000

4,000

5,000

6,000

7,0006,333

5,9865,6945,739

1,000

14/3Forecasts

6,600

(100 million yen)

34

Consolidated Income ForecastBasic Strategies for FY2013


Basic Strategies for FY2013 Basic Strategies for FY2013

(Fiscal year ending March 2014)(Fiscal year ending March 2014)

1. Increase prime operating assets by expanding transaction

volumes in core segments

2. Create new growth areas and actively respond to

restoration demand

3. Further reinforce business structure with high levels of

efficiency and profitability

4. Strengthen CSR and risk management activities

5. Develop human resources and enhance organizational

capabilities

35

Consolidated Income ForecastPriority Sales Strategies for FY2013


Priority Sales Strategies for FY2013 Priority Sales Strategies for FY2013

(Fiscal year ending March 2014)(Fiscal year ending March 2014)

1. Obtain excellent projects focusing on profitability

2. Expand prime operating assets centering on vendor marketing

(1) Expand transactions by responding to vendor needs

(2) Reinforce to develop vendors with excellent potential

3. Reinforce sales contacts with users having excellent potential

Offer value to customers through proposal sales

4. Create new growth areas

(1) Environment

(2) Nursing-care

5. Respond to restoration demand

36

Solar power generationSolar power generation

In order to reduce environmental impact, respond to needs for leasing environmentally friendly equipment for power saving, power generation and power storage

Groundwater membrane Groundwater membrane

filtration systemfiltration system

LEDLED

Storage cellStorage cell

Consolidated Income ForecastNew Growth Area (Environment)New Growth Area (Environment)New Growth Area (Environment)

FY13/9 FY14/3

Actual YoY growth Forecasts YoY growth

Transaction volume for environment-related segments

3,900 million yen

3.8 times 7,200 million yen

2.2 times

37

Consolidated Income ForecastNew Growth Area (Nursing-care)New Growth Area (NursingNew Growth Area (Nursing--care)care)

0

50

100

150

200

11/3 12/3 14/3

(forecasts)

Transaction volume of factoring for

nursing-care benefits(100 million

yen)

13/3

•• Equipment leasing for nursingEquipment leasing for nursing--care business operatorscare business operators

•• Loan for nursingLoan for nursing--care business operators care business operators

Launched in Launched in MayMay

•• Services for nursingServices for nursing--care business operatorscare business operators

•• Collection agency serviceCollection agency service

•• Factoring services for nursingFactoring services for nursing--care care

benefitsbenefits

Rehabilitation equipment, nursingRehabilitation equipment, nursing--care vehicles, PCs, related care vehicles, PCs, related

software, printers, multisoftware, printers, multi--function machinesfunction machines

Total support for nursingTotal support for nursing--care business operatorscare business operators

•• Management support for nursingManagement support for nursing--care care

business operatorsbusiness operators

180

22

90

3

38

Medium-Term Management Strategy Achievement Rate Estimates

(Performance & Management Indices)

MediumMedium--Term Management Strategy Achievement Rate Estimates Term Management Strategy Achievement Rate Estimates

(Performance & Management Indices) (Performance & Management Indices) Consolidated Income Forecast

Revenue

Operating

income

Net income

Operating income

margin

240,000

million yen

17,500

million yen

10,500

million yen

7.3%

240,500

million yen

16,000

million yen

9,600

million yen

6.7%

ROE 8.5% 7.8%

100.2

91.4

91.4

-0.6

-0.7

ROA 1.58% 1.34% -0.24

Increase/Decrease

230,000

million yen

14,000

million yen

8,000

million yen

6.1%

6.8%

1.26%

104.7

130.6

136.7

+1.4

+0.7

+0.21

229,700

million yen

12,200

million yen

7,000

million yen

5.3%

7.1%

1.13%

Medium-Term Management

Strategy Targets (FY2013)

Announced in April 2011


FY2010 (Fiscal year ended

March 2011)Actual

FY2013 (Fiscal year ending March 2014)

Estimate YoY (%) Compared to FY2010 (%)

39

Total transaction volume

Medium-Term Management Strategy Achievement Rate Estimates

(Sales Strategies)

MediumMedium--Term Management Strategy Achievement Rate Estimates Term Management Strategy Achievement Rate Estimates

(Sales Strategies) (Sales Strategies)

288,300 million yen

180,000 million yen

272,500 million yen

176,000 million yen

FY2013 (Fiscal year ending March 2014)

Estimate

41,000 million yen

40,000 million yen

102.5

105.8

102.3

YoY (%)

21,700 million yen

21,500 million yen

100.9

660,000 million yen

• Balance of operating assets* Before deducting securitized

portions of leases

595,000 million yen

105.6

310,000 million yen

294,000 million yen

103.3

625,000 million yen

300,000 million yen

1 million casesNumber of monthly transaction cases of

collection agency services1 million cases 100.0

3,600 million yen

Commission received

3,600 million yen

100.0

122.2

124.1

112.3

Compared to FY2010 (%)

115.9

125.2

185.2

132.4

232,200 million yen

160,200 million yen

33,500 million yen

FY2010 (Fiscal year ended

March 2011)Actual

15,300 million yen

569,400 million yen

247,600 million yen

540,000 cases

2,700 million yen

Medium-Term Management Strategy Targets (FY2013)




141.0

Lease/ installment business

Office and IT-related equipment

Medical equipment

Financial services business

40

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 preparation of the document, and are not intended to be guarantees of future performance.

Actual results may differ considerably from plans and forecasts due to a variety of factors.

Reliability

for

the FutureRicoh Leasing Company, Ltd.Ricoh Leasing Company, Ltd.

Ricoh Leasing Company, Ltd.

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