0

Fiscal Year Ended March 2015Fiscal Year Ended March 2015

Briefing on Financial Results Briefing on Financial Results

April 30, 2015April 30, 2015

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

1

1. Performance Overview(Fiscal Year Ended March 2015)

2

14/3 15/3

Actual Forecast Actual Difference Ratio Growth Rate

Net sales 2,459 2,600 2,587 (12) 99.5 5.2Gross profit 285 297 298 1 100.4 4.3

SGA expenses 125 133 133 0 100.1 6.2Operating income 160 164 165 1 100.7 2.8(Operating income ratio) 6.5 6.3 6.4 0.1 － (0.1)

Ordinary income 158 162 164 2 101.5 3.5Net income 95 100 101 1 101.4 6.1

(Net income ratio) 3.9 3.8 3.9 0.0 － 0.0Year-on-year change in yen

Net income per share 305.94 320.34 324.71 4.37 － 18.77Dividend per share 45.00 45.00 50.00 5.00 － 5.00

Consolidated ResultsConsolidated ResultsConsolidated Results Performance Overview

(100 millions of yen, %)

*Forecast figures are those announced on October 22, 2014.

Record high

3

Factors Affecting Operating IncomeFactors Affecting Operating Income Performance Overview

16,000million yen

15/3 Actual

16,500 million yen

500 million yen

Gross profit calculation SGA expenses

Increase in gross margin for the

lease/installment business

Increase in expenses

14/3 Actual

Increase in financial income

+4

Increase in Allowance for

doubtful accounts

(5)Decrease in

financing cost+4

+4(2)

(100 millions of yen)

4

Transaction Volume by Business Transaction Volume by Business Transaction Volume by Business

(100 millions of yen, %)

*Transaction volumes are calculated on an inspection basis.*Transaction volumes are calculated on an inspection basis.

Performance Overview

14/3 15/3

Actual Growth Rate Actual Growth Rate

Finance lease 2,695 15.6 2,621 (2.7)

Operating lease 104 20.4 124 19.5

Installment sales 409 16.5 485 18.5Leasing/Installment sales

business 3,209 15.9 3,231 0.7

Financial services business 248 14.9 259 4.6

Total transaction volume 3,457 15.8 3,491 1.0

Record high

Record high

Record high

5

(100 millions of yen, %)

Transaction Volume by Product: Leasing/Installment sales businessTransaction Volume by Product: Leasing/Installment sales businesTransaction Volume by Product: Leasing/Installment sales businesssPerformance Overview

14/3 15/3Total

(14/4-15/3)Japan Leasing

Association

Actual Growth Rate Forecast Actual Difference Growth

RateGrowth

Rate

Office and IT- related equipment 2,028 17.0 1,940 1,855 (84) (8.5) (10.2)

Medical equipment 440 9.9 420 398 (21) (9.5) (29.0)Industrial machinery 169 45.1 210 285 75 67.8 (8.7)Commercial and service industry equipment

252 3.3 260 300 40 18.9 (5.0)

Vehicles and transportation equipment

126 11.1 130 137 7 8.7 (5.4)

Others 190 19.6 250 253 3 33.1 (4.7)Total transaction

volume 3,209 15.9 3,210 3,231 21 0.7 (9.1)

6

Operating Results by Segment (Lease/Installment business)Operating Results by Segment (Lease/Installment business)Operating Results by Segment (Lease/Installment business) Performance Overview

(100 millions of yen)

Net sales (left bar) Segment income (right bar)

2,244 2,249 2,2772,388

2,511

109

155 154138 144

0

500

1,000

1,500

2,000

2,500

11/3 12/3 13/3 14/3 15/30

50

100

150

200

Record high

(100 millions of yen)

7

Operating Results by Segment (Financial Services Business)Operating Results by Segment (Financial Services Business)Operating Results by Segment (Financial Services Business) Performance Overview

(100 millions of yen)

43.345.9

49.654.4

59.4

19.3 20.322.7

27.0 26.3

0

10

20

30

40

50

60

11/3 12/3 13/3 14/3 15/3

Record high

Net sales (left bar) Segment income (right bar)

8

Financial Services Business-Priority MeasuresFinancial Services BusinessFinancial Services Business--Priority MeasuresPriority Measures Performance Overview

Number of monthly transaction cases of collection agency services(Unit: 10,000)

63

92106

128

0

50

100

150

12/3 13/3 14/3 15/3

54

11/3

(100 millions of yen)

90

198

326

230

100

200

300

400

12/3 13/3 14/3 15/311/3

3

Factoring services for nursing-care benefits - transaction volume

9

Balance of Operating Assets and Changes in Default RateBalance of Operating Assets and Changes in Default RateBalance of Operating Assets and Changes in Default Rate

*Balances shown include securitized portions.

Performance Overview

4,4204,420(239)(239)

4,5294,529(242)(242)

4,6874,687(244)(244)

5,1425,142(245)(245)

5,3275,327(246)(246)

412 436508

612725

776776925925

1,0391,039

1,0991,0991,1421,142

4,000

5,000

6,000

7,000

11/3 12/3 13/3 14/3 15/3

0.52

0.32 0.370.25 0.19

Finance leaseFinance lease(Securitized portion)(Securitized portion)

Operating loans

Installment sales

Operating lease

5,6945,986

Default rate(%)

6,333

7,3546,978

Default rate = Default loss amount / Average balance of operating assets

Record high

84 93 97

123158

(100 millions of yen)

10

Changes in Selling, General and Administrative ExpensesChanges in Selling, General and Administrative ExpensesChanges in Selling, General and Administrative Expenses

58 5959 63

62 6460 62

49

56

4 125133

176

130

0

50

100

150

200

14/3 15/311/3 12/3

(100 millions of yen)

62

63

Performance Overview

13/3

(10) 115

120 125 125121

123

OthersPersonnel expenses

Allowance for Doubtful accounts

11

Total Procurement Amount and Capital CostTotal Procurement Amount and Capital CostTotal Procurement Amount and Capital Cost

[External ratings]S&P AR&I A+JCR AA-

Fixed charge coverage ratio (%)

Capital cost

Total amount procured

*Total amounts procured: Balances include debts paid through securitization. Capital costs shown are expenses included in the calculation of gross profit.

Performance Overview

Long- term

Short- term

50.6

61.156.957.9

55.6

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

11/3 12/3 13/3 14/3 15/3

5,988

4,912 5,1035,425

6,337

31

25

192015

(100 millions of yen)

12

2. Financial Forecast(Fiscal Year Ending March 2016)

13

Current Business EnvironmentCurrent Business EnvironmentCurrent Business Environment Financial Forecast

• Fewer occurrence of corporate bankruptcies and lower interest rate because oil prices, yen, and interest rate levels are lower

• Increases in capital investment since manufacturers are returning to Japan

• Replacement of Windows Server 2003; demand driven by My Number System

• Reactionary economic recovery after consumption tax hike

Market

• Spread of trickle-down effects to small- and medium-sized companies due to Abenomics in the future

• New demand in medical and nursing care industries due to revision of laws

(Pharmaceutical and Medical Device Act; Long-Term Care Insurance Act)

Customer

Company

• Decreases in lease renewals due to decreasing transactions for new leases after Lehman collapse

• Solar power generation business has peaked• Number of default-related cancellations changes depending on trends in the

industry (Increases in defaults of nursing agencies, etc.)

14

Consolidated Income ForecastConsolidated Income ForecastConsolidated Income Forecast(100 millions of yen, %)

15/3 16/3Actual Forecast Growth Rate

Net sales 2,587 2,660 2.8Gross profit 298 306 2.6

SGA expenses 133 136 2.2Operating income 165 170 3.0

(Operating income ratio) 6.4 6.4 -

Ordinary income 164 168 2.1Net income 101 108 6.5

(Net income ratio) 3.9 4.1 -Year-on-year change in yen

ROA 1.26% 1.27% 0.02%ROE 7.7% 7.7% 0.0%

Net income per share 324.71 345.97 21.26Dividend per share 50.00 55.00 5.00

Financial Forecast

15

Transaction Volume Forecast by BusinessTransaction Volume Forecast by BusinessTransaction Volume Forecast by Business

(100 millions of yen, %)

15/3 16/3

Actual Forecast Growth Rate

Finance lease 2,621 2,705 3.2

Operating lease 124 125 0.1

Installment sales 485 525 8.2

Leasing/Installment sales business 3,231 3,355 3.8

Financial services business 259 265 2.1

Total transaction volume 3,491 3,620 3.7

Financial Forecast

16

Transaction Volume Forecast by Product: Leasing/Installment sales business Transaction Volume Forecast by Product: Leasing/Installment saleTransaction Volume Forecast by Product: Leasing/Installment sales s businessbusiness

(100 millions of yen, %)

15/3 16/3

Actual Forecast Growth Rate

Office and IT-related equipment 1,855 1,910 2.9

Medical equipment 398 420 5.3

Industrial machinery 285 320 12.2Commercial and service

industry equipment 300 305 1.5Vehicles and transportation

equipment 137 140 1.5

Others 253 260 2.5

Total 3,231 3,355 3.8

Financial Forecast

17

Management StrategyManagement StrategyManagement Strategy Financial Forecast

Business Expansion Efficiency

Business Productivity

On BusinessCustomer (Increase customers)New Business

Efficiency (Personnel efficiency)ALM (Asset Liability Management)

Accident (Fewer accidents)

Sales support-related leasing know-howVendors: 6,000 companies/yearCustomers: About 400,000 companies

Mainly small- and medium-sized companies

Industry’s top funding capabilitiesSmall-amount/large-volume contracts

Risk diversificationNo. of processing items: About 1.2 million items/year

OCeaN

Stra

tegi

esSt

reng

ths

Collaboration among Ricoh Group companies

Communication & Speed & Challenge

Cor

pora

te

cultu

re

18

“Three Reforms” Continue““Three ReformsThree Reforms”” ContinueContinue Financial Forecast

11

22

33

Business

Process

Human resources

To be the industry’s No. 1 in office and IT-related equipment, medical equipment, and nursing care businesses•Strengthen collaboration with Ricoh Japan

Expand Ricoh Channel and SIer•Provide omni-directional service

Propose differentiation (new scheme) Solution marketingEstablish third pillar• Business expansion (solar power generation, construction machinery, and industrial machinery (key positions))

•Discover and acquire post-solar power or other new businesses

Continue to implement cross-company business process reforms• Establish structural reform promotion office• Improve transparency, standardization and efficiency of internal processes

Create challenging corporate culture• Implementation of new personnel system “Be kind to people but strict in terms of work.”

• Assessment of challenges, young employees, pay raises (promotion), pay cuts (demotion), and specialists

• Diversity and work-life balance

19

Final SummaryFinal SummaryFinal Summary Financial Forecast

ChallengeSpeed

Communication

Business Process

Human Resources

Based on Consciousness Reform (CSC)Based on Consciousness Reform (CSC)

Three ReformsThree Reforms

20

<Reference> Breakdown of Sales for Fiscal Year Ended March 2015<Reference> Breakdown of Sales for Fiscal Year Ended March 2015<Reference> Breakdown of Sales for Fiscal Year Ended March 2015

(100 millions of yen, %)

14/3 15/3

Actual Forecast Actual Difference Ratio Growth Rate

Leasing revenue 1,901 2,019 2,012 (6) 99.7 5.8

Installment sales revenue 268 306 299 (6) 97.8 11.5

Financing revenue 23 25 24 (0) 99.1 6.4

Commission revenue 35 39 40 1 102.8 11.6

Others 229 211 210 (0) 99.9 (8.3)

Total net sales 2,459 2,600 2,587 (12) 99.5 5.2

21

<Reference> Breakdown of Sales Forecast for Fiscal Year Ending March 2016<Reference> Breakdown of Sales Forecast for Fiscal Year Ending M<Reference> Breakdown of Sales Forecast for Fiscal Year Ending March 2016arch 2016

(100 millions of yen, %)

15/3 16/3

Actual Forecast Growth Rate

Leasing revenue 2,012 2,078 3.2

Installment sales revenue 299 309 3.3

Financing revenue 24 26 4.9

Commission revenue 40 42 4.7

Others 210 205 (2.7)

Total net sales 2,587 2,660 2.8

22

Reference: Anticipated Factors Affecting Operating Income for FYReference: Anticipated Factors Affecting Operating Income for FYE March 2016E March 2016

(100 millions of yen)

17,000million yen

16/3 Forecast

16,500million yen

500 million yen

Gross profit calculation SGA expenses

Increase in allowance for

doubtful accounts

15/3 Actual

(1)

+2Increase infinancing

income

Increase in gross margin

for the lease/installment

business

Increase in financing cost

Increase in expenses

(2)

+7

(1)

23

Reliability for

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

Ricoh Leasing Company, Ltd.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.