0

Fiscal Year-ending March 2013

Briefing on the Results for the Second Quarter

October 19, 2012

Ricoh Leasing Company, Ltd.

1

1. Performance Overview

(Six months ended September 30, 2012)

2

Overview of the 2nd Quarter of FY2012Overview of the 2nd Quarter of FY2012 Performance Overview

◆◆◆◆Revenue increased and net income hit record high

・・・・Revenue grew for three consecutive years (on a 2nd-quarter basis)

・・・・Significant decline in bad debt reserve contributed to income

◆◆◆◆Transaction volume grew 5.6%

・・・・Expand transaction volume centering on vendor marketing

・・・・Reinforce sales contacts with users having excellent potential

・・・・Enhance response to restoration demand and new growth areas

◆◆◆◆Balance of operating assets increased to largest on record

・・・・Thanks to growth in transaction volume, balance of operating assets

exceeded 610 billion yen for the first time

3

11/9 12/9

ActualInitial

forecastActual Difference

Actual/

ForecastYoY (%)

Revenue 1,151 1,170 1,171 1 100.2 1.8

Gross profit 153 －－－－ 143 －－－－ －－－－ △△△△6.1

Selling, general and

administrative expenses65 －－－－ 57 －－－－ －－－－ △△△△ 13.2

Operating income 87 85 86 1 102.0 △△△△ 0.7

(Operating income

margin)7.6 7.3 7.4 0.1 －－－－ △△△△ 0.2

Income before special

items87 84 86 2 102.6 △△△△ 0.8

Net income 51 50 52 1 103.5 1.8

(Net profit to sales) 4.5 4.3 4.5 0.2 0.0

YoY (Yen)

EPS 164.49 161.77 167.42 5.65 －－－－ 2.93

Dividends per share 19.50 20.50 20.50 0.00 －－－－ 1.00

Consolidated ResultsConsolidated Results Performance Overview

(100 million yen, %)

4

Factors Affecting Operating Income Performance Overview

(100 million yen)

87

Actual for 2Q of FY2012

86

+1

+2

+2

+12

-4

Items of Gross ProfitItems of selling, general and

administrative expenses

Changes in

accounting

standard for

leases

Decrease in

cost of

capital

Increase

in re-lease

Decline in allowance for bad debts

Increase in

expenses

Expansion

of financial

income

-4

Actual for 2Q of FY2011

-10

-1

Decrease in gross

margin of lease and

margin of cancellation

before maturity

5

Revenue for Each 2nd QuarterRevenue for Each 2nd Quarter Performance Overview

1,167 1,143 1,150 1,151 1,171

0

200

400

600

800

1,000

1,200

1,400

08/9 09/9 10/9 11/9 12/9

(100 million yen)

6

Operating Income for Each 2nd QuarterOperating Income for Each 2nd Quarter Performance Overview

08/9 09/9 10/9 11/90

20

40

60

80

100

56

87

78

52

12/9

86

120

(100 million yen)

7

Net Income for Each 2nd QuarterNet Income for Each 2nd QuarterPerformance Overview

08/9 09/9 10/9 11/90

20

40

60

36

51

44

30

12/9

52

80

(100 million yen)

8

Breakdown of RevenueBreakdown of Revenue

(100 million yen, %)

Performance Overview

11/9 12/9

Actual YoY (%) Actual YoY (%)

Leasing revenue 949 △△△△ 2.0 937 △△△△ 1.2

Installment revenue 85 47.1 116 35.2

Revenue from loans 10 2.6 11 7.3

Commission received 14 △△△△ 2.3 16 14.8

Others 92 △△△△ 7.0 91 △△△△ 1.3

Total revenue 1,151 0.1 1,171 1.8

9

Transaction Volume by BusinessTransaction Volume by Business

(100 million yen, %)

*The above transaction volume is based on acceptance inspections.

Performance Overview

11/9 12/9

Actual YoY (%) Actual YoY (%)

Financial lease 1,133 9.3 1,165 2.9

Operating lease 54 33.6 42 △△△△ 23.0

Installments 114 △△△△ 1.7 177 55.8

Lease/installment business 1,301 9.0 1,385 6.5

Financial services business 107 53.9 101 △△△△ 5.1

Total transaction volume 1,409 11.5 1,487 5.6

10

(100 million yen, %)

Transaction Volume of Lease/installment Business Transaction Volume of Lease/installment Business Performance Overview

11/9 12/9Japan Leasing Association

Accumulated in 11/4 to 9

Accumulated in 12/4 to 8

Actual YoY (%) Actual YoY (%)YoY

(%)

YoY

(%)

Office and IT-related

equipment874 6.1 875 0.1 △△△△ 3.7 7.0

Medical equipment 191 18.8 193 1.1 △△△△ 7.8 6.4

Industrial machinery 44 △△△△ 20.0 52 19.8 △△△△ 3.6 △△△△ 9.7

Commercial and service

industry equipment81 24.2 122 50.7 △△△△ 4.3 9.2

Vehicles and transport

equipment41 19.2 61 48.2 △△△△ 9.0 33.3

Others 68 29.8 79 16.0 0.5 12.8

Total transaction volume 1,301 9.0 1,385 6.5 △△△△ 4.2 8.4

11

Comparison of Indicators by Year for Transaction Volume of Ricoh Leasing

and the Industry

Comparison of Indicators by Year for Transaction Volume of Ricoh Leasing

and the Industry Performance Overview

60

80

100

120

140

FY2008 FY2009 FY2010 FY2011 FY2012 (Est.)

(100 million yen) Actual for

FY2008

Actual for

FY2009

Actual for

FY2010

Actual for

FY2011

FY2012

(Est.)

Ricoh Leasing Transaction Volume by

Business

2,417 2,267 2,322 2,580 2,681

Indicators 100 94 96 107 111

Japan Leasing

Association

Transaction Volume by

Business

60,744 49,173 45,462 45,885 49,739

Indicators 100 81 75 76 82

10094 96

107111

100

8175 76

82

* FY2012 estimates present the annual plan for Ricoh Leasing and with regard to Japan Leasing Association; it is calculated by

multiplying FY2011 actual by the accumulated growth rate of April to August in 2012

Indicator of transaction volume assuming FY2008 (fiscal year-ended March 31, 2009) is 100

Ricoh Leasing

Japan Leasing Association

12

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

(100 million yen)

08/9 09/9 10/9 11/9

0

600

800

1,000

1,200

1,400

1,3601,301

1,1931,141

200

12/9

1,3851,600

400

Performance Overview

13

Transaction Volume of Lease/installment Business for Each 2nd Quarter

(Office and IT-related Equipment)

Transaction Volume of Lease/installment Business for Each 2nd Quarter

(Office and IT-related Equipment) Performance Overview

(100 million yen)

08/9 09/9 10/9 11/9

0

400

600

800

963

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 2nd Quarter

(Medical Equipment) Performance Overview

(100 million yen)

08/9 09/9 10/9 11/9

0

50

100

150

170

191

161173

12/9

193

200

15

Balance of Operating Loans of Financial Services Business for Each 2nd QuarterBalance of Operating Loans of Financial Services Business for Each 2nd Quarter

Performance Overview

(100 million yen)

08/9 09/9 10/9 11/9

0

400

600

800628

823

733696

12/9

979

1,000

200

16

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 Services of Financial

Services Business for Each 2nd Quarter Performance Overview

(10,000 cases)

08/9 09/9 10/9 11/9

0

20

40

60

25

56

45

34

12/9

6680

17

Balance of Operating Assets and Default Rate by Half-year PeriodBalance of Operating Assets and Default Rate by Half-year PeriodPerformance Overview

Finance leases

(of which,

securitized

portion)

Loans

Installments

Operating

lease

* Figures show balances with securitized portions not deducted.

Default rate = Default loss amount /

Average balance of operating assets

Default

rate

(100 million yen)

4,490

(238)4,420

(239)

4,471

(240)

4,529

(242)

4,605

(243)

404 412 418 436 461

733 776 823925 979

0.65 0.39 0.370.26 0.28%

0

3,000

4,000

5,000

6,000

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

6,142

5,709 5,694 5,8115,986

82 84 98 93 96

18

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

Allowance

for bad debt

Personnel

expenses

Other

revenue

(100 million yen)

27 32 2834 32

2930

3131

31

14

42

50

20

40

60

80

100

10/9 11/3 11/9 12/3 12/90

-1-6

7165

105

*Negative value means reversal of allowance for bad debt.

64

57

19

Interest-bearing Debts and Fixed-charge Coverage Ratio by Half-year PeriodInterest-bearing Debts and Fixed-charge Coverage Ratio by Half-year PeriodPerformance Overview

Fixed-

charge

coverage

ratio

Financing

cost

Total

procureme

nt amount

* 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

55.5%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

17

14

11

13

10

4,912 5,019 5,1035,264

4,983

(100 million yen)

20

2. Financial Forecasts

(Fiscal year ending March 2013)

21

Consolidated Income ForecastConsolidated Income Forecast

(100 million yen, %)

12/3 13/3

ActualInitial

forecast

Revised

forecastChange YoY (%)

Revenue 2,306 2,350 2,350 0 1.9

Gross profit 298 303 291 -12 -2.5

Selling, general and

administrative expenses130 133 121 -12 -7.1

Operating income 168 170 170 0 1.0

(Operating income

margin)7.3 7.2 7.2 0.0 -0.1

Income before special

items168 169 169 0 0.4

Net income 94 101 101 0 7.2

(Net profit to sales) 4.1 4.3 4.3 0.0 0.2

YoY (Yen)

EPS 301.73 323.54 323.54 0.00 21.81

Consolidated Income Forecast

22

Revenue ForecastRevenue Forecast

(100 million yen, %)

12/3 13/3

ActualInitial

forecast

Revised

forecastChange

YoY

(%)

Leasing revenue 1,885 1,890 1,880 -10 -0.3

Installment revenue 185 207 235 28 27.0

Revenue from loans 21 23 23 0 8.6

Commission received 28 30 30 0 6.4

Other revenue 186 200 182 -18 -2.4

Total revenue 2,306 2,350 2,350 0 1.9

Consolidated Income Forecast

23

Transaction Volume PlanTransaction Volume Plan

(100 million yen, %)

12/3 13/3

ActualInitial

forecast

Revised

forecastChange

YoY

(%)

Finance leases 2,249 2,351 2,351 0 4.5

Operating leases 90 82 82 0 -9.3

Installments 240 248 248 0 3.1

Lease/installment business 2,580 2,681 2,681 0 3.9

Financial services business 218 219 219 0 0.2

Total transaction volume 2,799 2,900 2,900 0 3.6

Consolidated Income Forecast

24

Lease/installment Business: Forecasts of Transaction Volume by AreaLease/installment Business: Forecasts of Transaction Volume by Area

(100 million yen, %)

12/3 13/3

ActualInitial

forecast

Revised

forecastChange YoY (%)

Office and IT-related

equipment1,698 1,740 1,740 0 2.4

Medical equipment 389 410 400 -10 2.7

Industrial machinery 101 110 110 0 8.1

Commercial and service

industry equipment162 175 175 0 7.5

Vehicles and transport

equipment83 88 100 12 19.5

Other revenue 144 158 156 -2 8.1

Total 2,580 2,681 2,681 0 3.9

Consolidated Income Forecast

25

Revenue by YearRevenue by Year Consolidated Income Forecast

09/3 10/3 11/3 12/3

0

500

1,000

1,500

2,000

2,500

3,000

2,326 2,3062,2972,285

13/3

Forecasts

2,350

(100 million yen)

26

Operating Income and Net Income by YearOperating Income and Net Income by Year Consolidated Income Forecast

61

101

66

168

94

122115

70

0

50

100

150

200

(100 million yen)

09/3 10/3 11/3 12/3

Operating

income

Net

income

170

13/3

Forecasts

101

27

Transaction Volume by YearTransaction Volume by Year Consolidated Income Forecast

09/3 10/3 11/3 12/3

0

1,000

2,000

3,000

4,000

2,573

2,799

2,4762,421

13/3

Forecasts

2,900

(100 million yen)

28

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

* Figures show balances with securitized portions not deducted.

(100 million yen)

09/3 10/3 11/3 12/30

2,000

3,000

4,000

5,000

6,000

7,0005,843 5,986

5,6945,739

1,000

13/3

Forecasts

6,200

29

1. Increase prime operating assets by expanding operating base

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

Consolidated Income ForecastBasic strategy of 2nd Half of FY2012Basic strategy of 2nd Half of FY2012

30

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. Reinforce exploration of new areas

5. Respond to restoration demand

Consolidated Income ForecastPriority Targets of Sales in the 2nd Half of FY2012Priority Targets of Sales in the 2nd Half of FY2012

31

Create New Growth Area and Actively Respond to Restoration

Demand

Create New Growth Area and Actively Respond to Restoration

Demand Consolidated Income Forecast

1.Reinforce exploration of new areas

(1) Lease/installment business

a. Environment

・・・・LED

・・・・Groundwater membrane filtration system

・・・・Transforming equipment

b. New transportation equipment

・・・・Special-purpose vehicle for airports

・・・・Air ambulance

(2) Financial services business

・・・・Factoring services for nursing-care benefits

・・・・Global money card for individuals and corporates

2.Respond to restoration demand

・・・・Reinforce sales contacts to construction machinery area

・・・・Understand redevelopment plans in affected areas and

respond to financial service needs

Groundwater

membrane

filtration system

Special-purpose

vehicle for airportsAir ambulance

Factoring for nursing-

care benefits

Global money card

LED

32

Reference Material: Factors Affecting Operating Income of

FY2012

(100 million yen)

168

FY2012 forecasts

170

+ 2

+4

-5

Items of Gross ProfitItems of selling, general

and administrative

expenses

Changes in

the lease

accounting

standard

Decrease in

gross margin

of lease and

margin of

cancellation

before

maturity

Increase in

re-leasing

Decline of allowance for bad debts

FY2011 Actual

+3

Expansion of

financial

income

+4

Decrease

in cost of

capital

+10

-14

33

The plans and forecasts provided in this document are based on information available at the time of its preparation. Actual results may

differ considerably from these plans and forecasts due to a variety of significant factors.

Reliability

for

the Future

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

Ricoh Leasing Company, Ltd.