0

OctOct 2222, 2014, 2014

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

Fiscal Year-ending March 2015Briefing on the Results for the Second

Quarter

1

1. Performance Overview

(Six months ended September 30, 2014)

2

YoY (Yen)

14/9

6.45148Net income

△0.26.46.6(Operating income margin)

22.50165.72

4.0

81

82

66

148

1,284Actual

1.009.91

-

2.6

2.5

6.0

4.1

6.3

YoY (%)

4.0(Net profit to sales)

79Income before special items

21.50Dividends per share

155.81EPS

80Operating income

62Selling, general andadministrative expenses

142Gross profit

1,208Revenue

Actual

13/9

Consolidated ResultsConsolidated ResultsConsolidated Results

(100 million yen, %)

Performance Overview

Record high

3

80

14/9 Actual

82

13/9 Actual

2

Items of Gross Profit

▲2+2

▲2

+2

+2

Factors Affecting Operating IncomeFactors Affecting Operating Income

Items of selling, general and administrative expenses

Performance Overview

(100 million yen)

Increase in financial income

Increase in expenses

Increase in allowance for bad

debtIncrease in gross margin for the

lease/installment business

Decrease in financing

cost

4

8.3

7.3

8.4

14.9

26.6

6.8

YoY (%)

14/9

1,689

117

1,572

218

70

1,283

Actual

4.8

7.4

4.7

6.9

32.2

3.1

YoY (%)

13/9

1,611Total transaction volume

109Financial services business

1,502Lease/installment business

204Installments

53Operating lease

1,244Financial lease

Actual

(100 million yen, %)

Performance OverviewTransaction Volume by BusinessTransaction Volume by Business

*The above transaction volume is based on acceptance inspections.

Record high

Record high

Record high

5

Japan Leasing Association

8.4

4.8

7.2

6.6

15.3

3.7

9.7

YoY (%)

14/9

1,572

127

70

128

104

197

944

Actual

4.7

53.0

6.3

△1.2

71.8

△2.0

△1.7

YoY (%)

Others

Vehicles and transport equipment

Commercial and service industry equipment

Industrial machinery

Medical equipment

Office and IT-related equipment

△4.7130

△39.460

△33.3201

△12.8960

△0.383

△3.266

YoY (%)Actual

△14.11,502Total transaction volume

Accumulated in 14/4 to 8 2014

13/9

Performance Overview

(100 million yen, %)

Transaction Volume of Lease/installment Business Transaction Volume of Lease/installment Business

6

5.9

31.8

△2.5

△7.6

87.1

6.0

0.4

YoY (%)

802

60

33

71

61

103

471

Actual

2Q

3.4

78.8

15.9

8.1

53.4

△9.6

△3.8

YoY (%)

Sum of the first half

1,572

127

70

128

104

197

944

Actual

4.7

53.0

6.3

△1.2

71.8

△2.0

△1.7

YoY (%)

Others

Vehicles and transport equipment

Commercial and service industry equipment

Industrial machinery

Medical equipment

Office and IT-related equipment

57

42

93

473

67

36

Actual

770Total transaction volume

1Q

Performance Overview

(100 million yen, %)

Transaction Volume of Lease/installment Business （Quarterly change）Transaction Volume of Lease/installment Business （Quarterly change）

7

Revenue

1,122 1,124 1,141 1,1731,246

7181 78

70 71

0

250

500

750

1,000

1,250

10/9 11/9 12/9 13/9 14/9 0

50

100

Performance Overview

(100 million yen)Segment income

Operating Results by Segment (Lease/installment Business)Operating Results by Segment (Operating Results by Segment (Lease/installment BusinessLease/installment Business))

Record high

8

22.4 22.524.9

27.4

29.8

9.3 9.511.9 13.0 13.9

0

5

10

15

20

25

30

10/9 11/9 12/9 13/9 14/9営業利益

構成比 12.0% 10.9% 13.8% 16.3% 16.9%

Revenue

Segment income

(100 million yen)

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

Record high

Record high

9

（億円）

（万件）

2390

198149

600

0

100

200

300

12/3 13/3 14/3 15/3 中計目標（17/3）

63

92106

113

170

0

50

100

150

12/3 13/3 14/3 14/9 中計目標（17/3）

Care website

Collection of money representation product website

Number of monthly transaction cases of Number of monthly transaction cases of collection agency services by yearcollection agency services by year

Factoring services for nursingFactoring services for nursing--care benefits care benefits -- transaction volume by yeartransaction volume by year

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

10

Financial leases

(of which, securitized portion)

Loans

Installments

Operating lease

6,142 6,333 6,5206,978 7,079

4,605 4,687 4,802 5,142 5,18596 97 107

123 149461 508 567

612 644979 1,039 1,0441,099 1,099

4,000

5,000

6,000

7,000

12/9 13/3 13/9 14/3 14/9

（245）（245）（244）（243）

（246）

0.19%0.240.270.28

0.46

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

(100 million yen)

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

Default rate(%)

* Figures show balances with securitized portions not deducted.

Performance Overview

Record high

11

Long term

Short term

0

1,000

2,000

3,000

4,000

5,000

6,000

12/9 13/3 13/9 14/3 14/9

109

79

10

5,264 5,4255,648

5,988 6,170

55.558.6%56.957.157.9

Fixed-charge coverage ratio (%)

Total Procurement Amount and Financing CostTotal Procurement Amount and Financing CostTotal Procurement Amount and Financing Cost Performance Overview

[Company ratings]

S&P AR&I A+JCR AA-

* The total procurement amount shows the balance with debts payable due to securitization not deducted.Financing costs show expenses included in gross profit on sales.

Financing cost

Total procurement amount

12

31 31 31 31 32

1 23

32 30 29 28 30

0

20

40

60

80

12/9 13/3 13/9 14/3 14/9

57 58

62 62 66

△6 △3Allowance

for bad debt

Personnel expenses

Others

Total Selling, General & Administrative ExpensesTotal Selling, General & Administrative ExpensesTotal Selling, General & Administrative Expenses

(100 million yen)

Performance Overview

131

2. Financial Forecasts(Fiscal Year Ended March 31, 2015)

14320.34

3.8100

162

6.3

164

133

2972,600

Revised forecast

0.00

△0.10

0

△0.1

0

3

350

Difference

4.710095Net income

-6.46.5(Operating income margin)

-3.93.9(Net profit to sales)

YoY (Yen)

14.40

2.0

2.1

6.1

3.95.7

YoY (%)

320.34

162

164

130

2942,550

Initial forecast

15/3

305.94

158

160

125

2852,459

Actual

14/3

EPS

Income before special items

Operating income

Selling, general and administrative expenses

Gross profit

Revenue

Consolidated Income ForecastConsolidated Income Forecast(100 million yen, %)

Financial Forecasts

150.1

0.7

0.0

7.5

19.6

△1.9

14/3 ratio growth rate

2,986

216

2,770

351

86

2,332

Actual

13/3

3,460

250

3,210

440

125

2,645

Revised forecast

△90

△25

△65

26

16

△107

Difference

15.9

15.7

15.9

25.2

44.0

13.4

13/3 ratio growth rate

14/3

3,5503,457Total transaction

volume

275248Financial services

business

3,2753,209Lease/installment

business

414409Installments

109104Operating lease

2,7522,695Financial lease

I n i t i a l f o r e c a s tActual

15/3

(100 million yen, %)

Financial ForecastsTransaction Volume PlanTransaction Volume PlanTransaction Volume Plan

16

2,770

159

114

244

117

400

1,734

Actual

13/3

3,210

250

130

260

210

420

1,940

Revised forecast

△65

50

0

0

25

△40

△100

Difference

3,209

190

126

252

169

440

2,028

Actual

14/3

3,275

200

130

260

185

460

2,040

Initial forecast

15/3

0.0

31.2

2.4

2.9

23.6

△4.6

△4.4

YoY (%)

Industrial machinery

Total

Others

Vehicles and transport equipment

Commercial and service industry equipment

Medical equipment

Office and IT-related

equipment

(100 million yen, %)

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

1715

Priority MeasuresPriority MeasuresPriority Measures

Earn profits and create an “ocean” of enhanced corporate value by expanding “products handled & areas covered,” “customers” and “new fields and businesses”

and reinforcing the management foundation

BusinessBusiness

ManageManage--mentment

FoundFound--ationation

CSR

ES (Employee Satisfaction) > CS (Customer Satisfaction)

O C e a N Strategy

On Business Customer New Business

(Efficiency enhancement)

Efficiency(Asset/liability management,

fund procurement)

ALM (Less accidents)

Accident-less

> >

Financial Forecasts

18

FY2014H2 priority areasFY2014H2 priority areasFY2014H2 priority areas

Business expansion Effectiveness

Business productivity

On BusinessCustomer （Expansion of the customer）

New Business

Efficiency （Personnel efficiency）ALM （Asset Liabilty Management）Accidentless

Expertise in vendor leasingNumber of vendors：6,000社Customers ：About 400,000 companies⇒mainly small to mid-sized companies

Industry’s top funding capabilities Small amount/high volume contracts Diversification of risks No. of operational processing：About 1.2 million / year

OCeaNStrategy

Strengths

Collaboration with Ricoh Group

１ Business expansion

2 Effectiveness

3 Human resources

“To be the industry’s No. 1 in the administrative and information segment and the medical and health care segment”

Cross-organizational process reform

Personnel system, human resources development

【 Three reform 】

Financial Forecasts

19

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.

CCommunicationommunicationSSpeedpeed

CChallengehallenge

&&

&&

Ricoh Leasing Company, Ltd.

20

3.1

15.1

15.8

3.0

11.4

0.7

YoY (%)

14/9

1,284

104

20

12

147

1,000

Actual

1,208

104

18

11

129

944

Actual

13/9

6.0Leasing revenue

6.3Revenue

△0.1Other revenue

7.3Received commission

9.2Revenue from loans

13.8Installment revenue

YoY (%)

(100 million yen, %)

Breakdown of RevenueBreakdown of RevenueBreakdown of Revenue

21

2,600

211

39

25

306

2,019

Revised forecast

50

3

2

1

26

19

Difference

2,550

208

37

24

280

2,000

Initial forecast

15/3

5.7

△8.2

8.5

7.4

14.1

6.2

YoY (%)

1,901Leasing revenue

2,459Revenue

229Other revenue

35Received commission

23Revenue from loans

268Installment revenue

Actual

14/3

(100 million yen, %)

Financial ForecastsRevenue ForecastRevenue ForecastRevenue Forecast

22

164

15/3 Forecast

160

4

14/3 Actual

▲4

+3▲4

+7

+2

(100 million yen, %)Items of Gross Profit Items of selling, general and

administrative expenses

Increase in gross margin for the

lease/installment business

Increase in financial income

Decrease in financing

cost Increase in expenses

Increase in allowance for bad

debt

Forecasts of Factors Affecting Operating Income of FY2014Forecasts of Factors Affecting Operating Income of FY201Forecasts of Factors Affecting Operating Income of FY20144